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baby. baby. Make it good. Baby, baby, baby. Please take your seats. The meeting is about to begin. Remember to speak into
the microphone as this meeting is being recorded for public record. Please stand by. We are going on air in 5 4 3 2 1. >> Okay. Good morning everybody. Welcome to the April 1st Finance Economic
Resiliency Committee meeting. This is a pretty serious meeting. So I'm going to ask that all April Fool's Day jokes be reserved until afterwards. I don't want to get uh halfway down in a finance item and somebody pulls the April Fool's Day card. So uh but after this, have at it.
Let's have some great warm humor. It is a beautiful day in this incredible city. We just uh we had an incredible march. So proud of the city. Um proud to be serving with my colleagues. Uh let's keep it positive. Let's keep it light. Uh but we have a lot of amazing things
to get to today. Um so I'll hand it off to our city attorney and then to our CFO, joined by my lovely colleagues, uh Commissioner Laura Dominguez, uh my uh Commissioner Monica Mateo Selenus. Uh perhaps we'll be joined by our comm uh colleague commissioner David Suarez
later um and let's get things started. >> Thank you. Good morning. Uh today's meeting of the finance and economic resiliency committee has been scheduled in a hybrid format with a quorum of the committee physically present and remaining members staff and members of the public appearing either in person or
virtually via Zoom. In order to participate in today's meeting virtually, members of the public may dial 1888-4754499 and enter the webinar ID which is 8636059-5462 pound or log into the Zoom app and enter
the webinar ID which again is 8636059-5462. Any individual wishing to speak on an item must click the raise hand icon if they are using the Zoom app or dial star9 if you're participating by full. Uh thank you. We have a few
announcements. We're going to show uh MB4 withdrawn by the sponsor. OB1, OB2, and MB2 will be deferred to next month. >> The first item chair.
>> Excellent. Uh we have a couple of different things that we're going to be talking uh contractwise. So why don't we hear those in order. Our first uh we have a tremendous partner that we have had uh that is really synonymous with Miami Beach uh Untitled Art Show. Um so
let's uh have them come up to the podium. Thank you. So we'll show MB17 discussion of feasibility of a long-term license agreement with Untitled Art Fair. NB7 Yep. Commissioner Laura Dominguez, why don't you uh tee this up?
>> Sure. Thank you. So, I was approached um by uh Untitled about this item and they are requesting a long-term agreement. I did some due diligence and investigation. Um they have been a partner for about 14 years and unlike
some events that happen on the beach, they actually contribute money towards our city. Um PJ, I emailed you a slide. I wonder if that if you've received it and that can be shown. Um, while I'm
talking, while uh PJ's looking for that email, um, some of the things that they've paid for include, uh, the cost of, um, the permit fees, the rental fees, the displacement fees, uh, to the vendors, um, city services, offduty
police and fire, and, um, it generates jobs. I do take into account that um we have residents that live on Ocean Drive and they're looking to have less events, not more. And this would not be more
events. This is an event that has been around and been a good partner for 14 years. And I'll let uh Robin if you want to share anything else. >> Sure. Thank you so much. Good morning, Mr. Chairman, uh members of the committee and members
of the city administration. Uh I'm Robin Rosen. I'm here on behalf of Untitled Artfare and Informa Markets and I'm joined by uh Mr. Jeff Lawson who's the original founder of Untitled Artfare and our our colleague Christopher Penellis
Legal Council. Um so thank you so much for giving us the chance to um participate in the discussion as you consider a recommendation for a multi-year agreement for the entitled art fair. As um Commissioner Dominguez um explained the show, it's in its 15th
year. Um, I do have a couple slides if you want me to run through really quickly that um that we can give a quick overview if you'd like me to run through them or let me know. >> Quickly, how Robin and not dismissing, but I think we're all very familiar. >> Okay, great. >> And I'm happy to move the item to the
full commission. >> I just have one question and it's not really specifically about you because you're incredible. We we had a great discussion 15 years. Um, I guess I'm just talking out into the abyss because this isn't a question for you to answer,
but uh I I don't want to say I link them, but I we had this discussion where untitled and um scope are I don't want to say synonymous with each other, right? I don't want to ruffle any feathers, but they do work in tandem as
a partnership. And to my untrained eye, often I'm not even sure which one of those I'm at. And point being, if we're going to do this, does it make sense to also do something similar with uh scope?
And perhaps that's up to them. Perhaps they don't see the need for it. Um, again, that's not for you to answer. Maybe I'm uh asking city staff if we wanted to reach out to scope and say, you know, we're providing certainty to untitled here. they wouldn't have to be
the same terms because I understand they're they're two different fairs perhaps even uh different quality but I I do think that it's worth considering. >> Good morning. Um we will definitely uh reach out to scope. Um you know the
administration does not recommend that we do these agreements but of course whatever we do within we could also do with scope if they're interested. >> Yeah. Just uh pose it out there. Um, again, not the same terms. I'll leave it
up to staff to uh >> consider the nuances and things like that, but obviously very supportive. Thank you for your commitment to the city. Um, it's I often tell the story that Art Basil was voted, I believe, just 43 to be accepted in Miami Beach, and now it's hard picturing either Art
Basel without Miami Beach or Miami Beach without Art Basil. Same with Untitled. So, thank you for your commitment. uh looking forward to you know five more years and uh and beyond of a great partnership. >> Great. Thank you very much. >> Great. >> Thank you very much. >> So if I if I can I think so this is the
return of the commission with a favorable recommendation to direct administration negotiate a long-term agreement with untitled artfare and for staff to discuss a similar agreement with scope art fair >> and I think the attachment uh for the agreement was three years. >> Three years. Okay. So we'll negotiate a three-year put in the term. So
>> yeah the attachment was uh five years. a five year. >> It was five year with a five-year option, which you know, >> do we want to be the the recommendation wants to be specific on the the the term >> five the five year >> whatever you think is okay. >> Yes. >> Okay. And and there's like come hell or
high water outs for the city. Correct. With >> confirming on recordmination. >> So we should direct the administration to negotiate a five-year agreement with untitled art fair and staff to discuss a similar agreement with scope art fair. Um, we'll show Commissioner uh Dominguez making the motion.
>> Seconded by >> I >> Commissioner Suarez. All in favor? I I item passes three nothing. Thank you. >> Thank you. >> Thank you. >> Thank you all. See you soon. >> Uh so on the opposite side of the abyss of
instead of something that's been here for 15 years, uh something that's being newly introduced that I'm equally as excited about, uh NB16. >> Thank you. Uh MB16 discuss potential waiverss of special event fees and related permitting costs for F1 Miami
Grand Prix Fan Festival MB16. >> Good morning, Mr. Chair. Lrogante, director of Charisma Wine Culture. Um excited to share this item with you today. Uh we have the first official F1 Miami Grand Prix official FanFest in Lumis Park. We have had other, you know,
versions of FanFest, but this is official with F1. We have a representative today here from the F1 Miami Grand Prix, Dory Grogan. Uh, this ask is for a waiver of special event related fees in the amount of 41,000 for the inaugural Miami Beach FanFest and
we're happy to share any slides or any other further information. >> Uh, maybe if we have a visual. Uh, absolutely. I saw it on Zoom, but one thing over the years for F1 uh, which has become an incredible event. In fact, I was just reading in a a finance
publication that uh the owner of the Dolphins actually sees more attendance during that F1 weekend than he does for the entire Dolphin season. Not sure if it says more about F1 or the Dolphins. I'll leave that up for interpretation. Um but I I've often pondered why we
don't have more of a activation here in Miami Beach, right? And it's not just for F1. And I I want when people come here for world class events for them to step into Miami Beach and say, "Wow, if I just got dropped off from Mars, I knew nothing. I know something special is happening this weekend." It looks like
that's what we're seeing here. So, do we have a visual of uh what our city can anticipate and not just visitors, but our residents as well. >> Sure. And TJ, if you can please uh put the slide up and Dory can speak a little bit more to that, but F1, >> we can move through the just let's get
some visuals. They just extended the contract with F1 until 2041 and that's why now they're investing. But Tori, >> yeah. Hi, my name is Dory Grogan. Um, I have been with the Miami Dolphins and Hard Rock Stadium for 30 years and we're
excited to bring this event to Miami Beach because we just signed the deal through 2041 with Formula 1. Um, we wanted to extend the footprint outside of just being at Hard Rock Stadium. Um, so we want we see this as a long-term
thing. This being our first year um doing this together. So the idea is that this would be Wednesday through Sunday of race weekend. Um, we want to start on Wednesday because that's when we can get driver participation. We already have
like 8 to 10 drivers that will be coming on that Wednesday to do Q&A with fans, get to know them, and >> actual F1 drivers. >> Actual F1 drivers. Um and um >> you go back to the map. >> You want the map?
>> Yeah. Okay. >> So, we're looking at from 11th through 13th. Um we see this as this year, this is the footprint, but we see this as an opportunity to continue to grow together um into something great.
>> And this will actually be in the spoil area in between the boardwalk and the dunes. >> Yes. Park. Yep. Lzette, maybe this isn't specific uh to this event, but can you walk through what goes into when we talk about some
of these fees, right, that the city essentially imposes or applies? What do they constitute? What what are these? >> So, the fees that are being requested today are special event application fee, permitting fee, square footage fees, and it's detailed in the memo before you. Uh
the square footage is because it's from 11 to 13. So that alone is 38,000 for the vehicle beach access passes. This is for trucks to go with police escorts to drop off, you know, all the materials is about $1,500. Uh and so the total comes out to
$41,000, but it's not um >> So where I'm going with that is there's no cost inherent to the city. >> Correct. That only happens when we're waving uh public safety. like if you're trying to do police or fire, we do have to pay those man-hour. So, this is just
fees that the city would not money that we would not be bringing in. >> And presumably the amount of fees from an activation like this is going to provide multitudes of ROI versus any type of cost that the city bears.
>> Absolutely. Because the event is free. So, it's a ticketed but free event. Uh so that's something that is amazing for us to be able to have that branding and they they did go a little bit further and added Miami Beach to the logo which we really appreciated. Uh and so just to
have the brand of F1 Grand Prix Miami Grand Prix here synonymous with Miami Beach. You know they've extended their contract to 2041 and so it'd be wonderful to have them here >> and the excitement. We just announced this event yesterday and on the first
day you had to register to get your tickets and in the first six hours we have 18,000 people who have already said raised their h hand raisers and say they want tickets. So that's exciting. >> Um and I want to make a comment too. Um PJ if you could put that map back on
please. So, I know that the residents that are north of 14th Street um have often voiced their concern of having events um in the area right behind where they live. So, this is below 12 and also the
times every day it ends at 6. >> Correct. >> So, that's fantastic. >> Yeah. And this is a very low impact on on the sound as well. This is not like a concert. It's more activations and you know some panels and things like that. So it's not it's not like you know loud
music and bass and all of that. Yeah. This is a very community event and family event where people can come and experience the F1. >> So um through the chair. >> Yeah. Looks great. The only thing that I'm concerned about is the equipment at night. I don't know if you guys are
going to have any lighting uh that's going to be keeping for safety reasons, but it's sea turtle season and can't have any light uh in the evening for setup or take down. >> All the lights are amber per per code
and none of them are shining towards the east. Everything is towards the west. >> So, >> and it's just security lights. There's no because all the events stop at 6. Are they like the Are they the gas powered lights? The >> battery powered lights. And and again,
they are motion sensors. So, if somebody walks in a side, they will turn on, but they're all facing uh west. They're all facing ocean drive. Nothing is facing east. >> Okay. So, who who um I'm sorry to be a pain, but who who checks that from the city? >> Well, we we submit to the lighting plan.
>> Okay. We submit to the environmental the lighting plan >> like so for yeah any event that happen during turtle system we have to submit the full on lighting plan. >> So you said that they submit that to sustainability. >> Yes. So it's all part of the special event permitting process. All events
have to submit a sanitation plan lighting plan and it goes through all the different departments ENS they do review this. >> Okay. >> And if I'm cor uh correct that plan actually has to be signed off by FWC at the state level. Correct. It goes through all the processes especially now
during turtle season like all of our events. >> Okay. Excellent. >> And we are also >> Yeah, we want to be I want to be I want you guys to be good partners. I just you know >> No, no, no. Absolutely. I mean look that's our big we we I mean this is west of the dune so it's it's even less impact than if we were on the on the
east side of the dune. But you we take care of all the lighting. I mean, honestly, all the uh Ocean Drive lighting way overpowers what you know, couple of our security lights. >> Okay, and do we Somebody said we have
Commissioner Fernandez on the phone. >> No, I was wondering if he was. >> Oh, >> because he was the sponsor. >> No, I don't think so. >> Okay. >> So, we have a will be moving this back. >> Yes. Uh perhaps the one ask I'll have uh
it'd be great to really amplify social media on this uh work with our city's communication team because this something uh I think is just incredible not just for our visitors but for our residents as well. So >> look forward to it. So we'll show this return to commission with a favor
recommendation to wave the special event fees and related permitting costs related to the F1 Miami Grand Prix uh fan festival. Uh who we making the motion? >> I'll move it. >> I'll second. Commissioner is public comment. >> Yep. >> Jane Crop, please unmute yourself.
>> Great. >> Hello everybody. Um I'm representing ADNA, the Art Deco Neighborhood Association, which this is another yet another event we were promised we weren't going to have. So, we had um uh Commissioner Magazine,
Commissioner Suarez, Commissioner the Mayor, um Tanya, all in their bid for election said no new events in Llama's Park two years ago. So, that was two years ago. Now, we have this is the fourth new event in Llama's Park. So,
I'd like to remind you that we have 8 miles of beach. Why is it all Why is Llas Park the event dumping ground? Because that's how we're being treated. This is a great event. It's a huge company. It's a huge event. Why are we giving away money to these people? You
know, Adidas $600,000 when we need a million dollar for turf in Flamingo Park and we can't afford that because we're giving $600,000 to Adidas. Why are you waving fees when they do
Ultra? Ultra gives $2 million to the city of Miami. I don't understand why you keep waving fees and dumping more events in Llama's Park. It's our green space. We have begged Adna has begged you for four years not to do this and
you're doing it again. So, I'm just venting here because we have no power. And I thank Laura for actually mentioning the fact that there are 2,000 residents around Lumis Park who enjoy the park besides the visitors who come for peace and quiet. Not everybody wants
to hear events and come because they have nothing to do. There's plenty to do here without these events. There's thousands of people walking around without any events. And yet another event during turtle season. So when the tractor trailers go over the beach where the eggs are buried, it's not just the
lighting. What about the pressure that's put on these egg nests? I mean, this is outrageous. And um you know I've had enough of Lisette's ignorance and not listening to what we have asked her for four years
is to no new events. >> Thank you. >> Um I'll follow up with uh two things. One, words certainly do matter and as we just uh confirmed, we're not giving a single dollar away. In fact, we're not even giving a service away that won't be compensated for. This is a fee waiver.
Those terms are very very different. Mr. CFO. Uh, sorry to put you on the spot, but off the top of your head, um, while resort taxes has been rather strong, uh, citywide, we've had some areas and neighborhoods
where we've had notable notable declines. Uh, specifically in the Art Deco, um, not entertainment district anymore, the AC/DC, I want to say resort taxes were down 25% year-over-year. Uh I don't have the those specifics, but I
know I've heard anecdotally from uh some of the the facilitators uh oper the operators on Ocean Drive that have uh you know made statements to that effect. Y >> and uh I'll use future proof uh as an anecdotal example. I'm very interested
maybe you could share the hotel um you said you were at a GMCVB meeting about this yesterday. Were there preliminary estimates uh during that time frame? Because that was an event that um I I got, you know, bashed uh for having in
the park, but perhaps we can enlighten us about what that event did for our city. >> Well, I don't have the number I don't have the numbers in front of me. Commissioner Dominguez was with me in that meeting, but the numbers were amazing. I mean, they were they were showing that um everything compared to
last year is even better. So, but the final numbers haven't, you know, totally come in, but right now preliminary numbers that were shared with us show that um everything is going in the right direction. Um especially for the month of March. So, of course, future proof had a lot to do with that.
>> And for that, on Monday evening at Future Proof, I'm happy to share a video with our residents, with our communication team. I actually tried five different restaurants on Ocean Drive at 6:00 p.m. 6:30, 7 p.m. just to walk in and get a reservation and I
wasn't able to. The Betsy, uh, the Avalon, there are three different restaurants completely booked out. Uh, this was a great crowd. Um, so it's about a balance, right? We we can't sit there and uh ponder why our resort and
sales taxes are down 25% in some areas and then just not do anything about it. Right? We have identified a problem and we're working on solutions that strike a very fine balance. I think these are very tasteful low impact events that provide tremendous bang for the buck.
And um right >> one of the caller mentioned that these tractor trailers could crush but um my understanding it's west of the dunes and that's and that and sea turtles don't nest west. Correct. >> Okay. So there's there's no threat to sea turtle eggs. >> No. >> Okay.
>> Everybody knows sea turtles don't nest west of the dunes. >> If I may say we've done this this is not a new event. We've done this uh three times before. This is just now uh upgraded version of of the event that we've done three times already at that spot.
>> Please speak into the microphone. >> Yeah. Can you say that again? >> Sorry. The this is the third we already done this event three times. This is the first time uh we're upgrading it. Uh F1 is coming I mean Miami Grandp is coming on board. So it's not a new event. We've
done this event three times already. Just >> chair. Uh we have a we have a motion uh by Commissioner Suarez, seconded by yourself. >> Vote. >> All in favor? >> I. >> All right. Here. All in favor passes.
Three nothing. Uh MB16. Thank you. >> And we will hear NB15 1691 Michigan lease. >> Thank you. Uh MB15, a discussion regarding amendment number one to the lease agreement between the city of Miami Beach owner and RK Ravani LLC tenant in connection with the public
private partnership for the property located at 1691 Michigan Avenue property MB15. And I'll tee this up before I kick it over to Azie. Uh, one of the things when we talk about some of these great activations and having a different march, we're presented with this
generational opportunity in Miami Beach to really uh have a shift in our economy away from a dangerous concentration on tourism. And we saw what doubling and tripling down on that does, whether it be events, whether it be what happened
years ago in March. And one of the ways uh is really by attracting uh well-paying jobs, building an economy for everybody where residents are able to access white collar knowledgebased jobs that previously didn't exist in Miami and certainly not Miami Beach
before. Uh I actually give a lot of that credit to Commissioner Mark Samuelian. I I believe if I remember correctly, he was the sponsor of the Alton Road, Sunset Harbor uh office overlay incentives that have just provided fruit for our city that transforms us. Right
now, we have an international publicly traded corporation that's headquartered in Sunset Harbor. That was due to Commissioner Samuelian's vision of seeing that forward. And we have a unique opportunity here. Um, this is a
city-owned uh land and a private operator owns the asset on top of it. Uh, he has already put in $50 million for uh, renovations. And I'll let the details kind of speak for themselves, but I want to say when he inherited the
asset, it had like a 30% uh, occupancy rate. And again, this is the city's asset, right? Right off of Lincoln Road. Um, and now it has uh 80 or 90% occupancy. I'm excited to hear from the tenant or the the applicant about some
of the tenants that are in there. Um, so as I understand this, the applicant and owner of that asset essentially wants to put another $50 million of his own personal money in there. Uh, but to do so, he needs a longer term certainty uh
for the lease that's outstanding. Is that it in a nutshell, Azie? >> Yes. Good morning, Mr. Chair, commissioners Azie Dominguez, division director of asset management. Thank you for the prelude. That was half of what I was going to say. Uh so to answer your question, yes. Uh they are looking for an amendment. It would be amendment
number one to the agreement which would extend the term of the agreement for 30 years. Uh the financial uh components of the rent structure will continue as it currently is stated in the agreement. Um there are some other stipulations to the
terms that we are currently working on and we are uh expecting to come back on May 6th with the full and final term sheet and um and draft of the amendment to then take to commission. I know that the uh the tenant is here uh Rivani with
his team and they have some updates on their presentation that they wanted to share. Uh there are some additional public benefits that are going to be added to this amendment which we're very excited about. Uh we're also working with our parking department on the uh the public benefit components of parking
um to hopefully work in some uh workforce uh workforce parking passes uh which the the city is entitled to I believe it's 100 parking spaces. Uh so overall I don't want to steal their thunder. I'll let them show the presentation then I can wrap it up afterwards.
>> Sure. Maybe we can hear some of the presentation then. Who's going to discuss just kind of the key elements and terms uh that are I guess up for negotiation? >> A big combination of me, Patrick Corey, and probably Azie. >> Okay, perfect. >> So,
uh good morning, Mr. Chairman, commissioners Michael Larkin, joining us Biscane Boulevard here representing Robert Revani who's with me today along with Patrick Corey and Mark Chandler. And we have Kevin Crowder from Business Blair and my colleague uh Mitchell Tozian. Can PJ can you pull up the
presentation? Thanks. Next slide. >> So this is the aerial photograph of uh the property with the office building along 17th Street, Lincoln Lane forms the southern boundary. We have Jefferson on the east and Michigan on the west. And before I go any further, just to
pick up on what Chairman Magazine said, you know, you all in the last few years have sought to really diversify your economy. You've put into the zoning code several incentives for office construction at the behest of Commissioner Simoleon at first and that's already borne fruit in Sunset Harbor. You have Wayne Bush with his
office building. Then our clients on Fifth in Michigan, that office building is nearing completion. So you all have already started redirecting our economy to include more a diverse set of office uses, which is great. Um, in 2024, Robert purchased this office building.
It was somewhat outdated at the very beginning and had not really seen a significant level of investment since its initial construction. So, Robert immediately sought the necessary zoning approvals last year. He started pouring millions of dollars into the existing building, which, as Mr. Magazine has already pointed out, has attracted
high-profile tenants. But Robert wants to do more. He wants to do an addition that will be in the value of like $50 million. will attract even more high-profile tenants, but we need some lease amendments in order to make that come to fruition. So, next slide.
This is an elevation approved by the DRB last year. You can see it's somewhat streamlined the elevations. Um, on the right hand side is a parking garage and Lincoln North. On the left hand side is the office building and 17th Street. Next slide.
This is just an excerpt from the original lease agreement that shows even back then the city administration and the commissioners were looking for some type of public benefit offering. Back then parking was of paramount importance. So they asked us to set aside or the original developer to set aside 100 parking spaces for the general
public. Next slide. Now I'm going to let Patrick Corey from the Revani Group take over and he's going to tell you all what the Revan hopes to do with this office building. >> I'll sneak here. No. Yeah, I'll take over. Good morning and thank you guys for having us. Um, as Michael mentioned,
uh, we purchased this property in April of 2024. As this slide notes, there was a projected 76.5 decrease in the revenues for by 2029. What we mean by that is that all of the existing leases were either expiring for the next 5
years. There was no new leases signed. So, when we came in and we purchased the building, we added the renovations to it. We've signed a significant number of tenants to the building. Um, some of those tenants are listed here, which includes Hwood, the Gills, and Monarch. Um, some recent leases that we just
signed in the last couple of weeks are a an eye surgeon doctor, Dr. Jennifer Murdoch, we just signed two days ago, a hedge fund who's relocating Maple Lane. We relocated another um financial institution from Coconut Grove called Divy Sedaro. So, we're actively
attracting these high-profile folks. Many of them are actually moving physically their personal residences to Miami Beach. Our office alone, um the Ravani office, our our headquarters is located in the building and we've got about 20 to 25% of employees who we've
relocated from either New York, Las Vegas. Those folks have moved to Miami Beach and have the privilege of walking to the office every day. Go to next slide. And Patrick, if we could go back a slide. If I'm Joe Voter, why would I care what your uh occupancy is? And I
guess I'll answer my own question. I wasn't familiar with this until recently because this is a city ground lease, we actually get we as a city, our taxpayers get 2.5% of the gross revenues that come into this project. So when you sit here
and say that uh the project was projected to have a decrease, we actually have money each year that comes in that's largely based on how much lease revenue that you get. Correct. >> That's correct. So the way that the lease is structured is you do have a base rent, but then there is the
percentage that you spoke about. Um, we can ask Aussie from the commissioner's office for confirmation that 2025, I believe, was the highest grossing uh that the city of Miami Beach has ever um achieved. So, we're very proud of that accomplishment and noting that going forward with these new leases that I
just mentioned, 2026 and onward will be significantly higher revenue directly for the city of Miami Beach. >> Okay. And also presumably you add this incremental office space on top that flows directly to the city, right? So I
don't know how much leasable space you're going to have and what rate, but that seems like a pretty easy proforma number to back into and the city essentially gets 2 and a.5% of the gross revenues, not just from the existing project, but from the incremental project as well. >> Correct. Yeah, there there's a slide in the presentation that I'll just jump to
for ease so you can see that. We can go back to the other slides, but um as we purchased the property, what we did here is we took a 30-year uh look forward on the revenues that are anticipated for for the city. Um as you can see, but the phase one, which is what we refer to, is
a project that we're doing now that's going to be completed within the next 90 days. It's generating an additional $7 million of income, but the new proposal for the phase 2 would generate an additional 12 on top of that. um essentially deriving at 19 million of additional income for the city of Miami
Beach over the next 30 years. >> So 12 years. So the additional project is going to generate almost $400,000 per year into the city. If I just look at uh the delta between phase one and phase two, that's $12 million divided by the
30-year outlook. Um so about >> it's exactly Yeah, it's somewhere between depending on the base year between 350 to 400,000 a month. Excellent. And maybe go back uh sorry to >> Absolutely. No problem. Just wanted to show you those uh so you can see those. Um okay. So we you know I spoke very
briefly about you know phase one which is what we're actively working on. As noted to you we've got about 90 days left for that project to be complete. This just kind of recaps um the DRB approval for the facade. We also had approval for Hwood who's operating the speak easy, a world-class operator who's
going to be taking an amenity space in the building. Um, and then the final DRB approval was for the valet. This will be, as pictured on the bottom right, the only 100% covered valet um in all of Miami Beach. Uh, this is great for not only tenants of the building to attract
their clients, but also for any FNB components that will go on the ground floor on both the the Michigan and the Jefferson side. One of the things that we took into consideration was the the underutiliz utilization, excuse me, of the parking
garage. We currently have 630 parking spaces that are available to the public. But based off of a three-year Transient study that we conducted from our own parking garage operators, we noted that we're averaging about 5% occupancy from transient parking. Why is that? Um
because just to the east and west of us are two lots uh that are much more easily accessible. They're easier for folks who are going into Lincoln Road to just park on street level, jump out of their car, pay by phone rather than have to go up several levels in the parking garage. So, we were faced with two options. Do we keep an underperforming
garage that has an abundant amount of spaces or do we redevelop a portion of it um to be able to provide more office? Uh we've seen, as I noted, um all those leases that I just mentioned to you were really signed within the last 6 months. Uh there is a a flight to the asset.
There is a very high demand. We don't at this time have any available spaces who are ready for tenants to come in. And so based off the demand for Miami Beach office space, uh we are proposing to add new office space and some health and wellness components. So based on the
floor availability, we have the existing F 2.13, permanent F 2.75, which means 387 parking spaces in excess of the requirement. Based off of that, we are proposing um excuse me, there is an availability for 47,000 square ft of
available floor area. What we're >> So this won't constitute any type of F increase. You're doing this within as of right the to build. So really the only reason you're in front of us is because this sits on city owned ground. >> That's correct. That's correct. So based
off that 47,000 available square feet, what we're proposing to do is 36,000 of leasable office and then 6,000 of rooftop restaurant as well as pedel courts. Um, part of the premise of the Revani Classics X building is health and
wellness at the forefront. Um, we signed Monarch Gym who's taking 8,000 square feet. We signed um Prime Longevity who is going to be the first stem cell um transplant doctor in Miami. We signed Prime uh Prime Health who's also a
concierge doctor who's moving offices. He's move from from Mount Sinai, excuse me, into our office. So, health and wellness has always been a focus on us. So that's why we're including the pedel courts on top of here as well. This investment, as we've noted several times, is anticipated to be about $50
million that's going to come out of the landlord's pocket. >> So Michael showed an aerial shot of just ugly parking, you know, ugly rooftop parking, which I think has been kind of a key focus across the city to maybe
make more aesthetically pleasing. So, if that was an aerial shot, that's essentially the same picture that we're looking down upon. >> Correct. That sits right on top of the garage, uh, which ab butts onto, you know, Lincoln Road and it's in between Jefferson and Michigan Avenue. If you'd
like me to go back to the map, I'm happy to. >> No, all good. >> I've got a couple more renderings to give you a better angle. You can see our office building sits behind it just to the north. So, this all goes on top of the parking garage. You can see uh the office space towards the east on the right hand side. The FM component has an
outdoor space and then of course the pedil. >> Yeah, of course. Yeah. >> I have a a comment actually on the parking or question too. Um we're running into a situation in North Beach where a building was built with uh
plenty of parking and they're charging $4 an hour and so the building residents are not parking there. uh they're parking on the street and making a big problem in that area. Will there be parking at resident rate? Um how is the pricing structure going to be or is it
too early? >> I think it's a bit too early unless it's something that you know, Robert, I don't know the ultimate >> and when I spoke to our parking director on this will he specifically said future developments, you need to bring it up um so that they're aware incorporate so that we don't create a problem on
existing parking. Um, as the plans are being done, >> we're not open. Hi, Hi, Commissioners. We're not open against the idea. We're just waiting for the workforce housing proposal or the workforce parking that um Mazy mentioned. So, we're open to either way. Whatever you guys deem is
more beneficial to the city. We're open to to both. The one issue that we're running to with our existing or new parking is we've done the gateless one. So, we don't have someone to check an ID for somebody or to see if they're a resident. So, I don't know how that would work, but we're open to the idea. Um, again, the parking is so little
used, so we're either way to make the city happy, we're more than happy to do it. >> And I think, uh, again, we don't have to iron this out here, but another good idea or proposal would be to have similar to the design district, the just pull up the Lincoln Road and use the 100
public parking spaces that the city u maintains in here as a valet parking for Lincoln Road in its entirety. I think it's a fantastic idea and I would definitely want the valid for Lincoln Road. >> Great. Thank you. Uh the last slide for me again just is recapping the revenue
but you know what's not shown here is really driving home the point that this is more about u the demand that we're seeing for folks that want office space in Miami Beach. And so we don't have the capacity to fill that anymore. There's not many options. There's just really the fifth and there's um in Sunset
Harbor, but there's really nothing else. And so we want to provide and keep bringing back Lincoln Road, keep bringing back Miami Beach, and we feel that this is an opportunity for us to continue to do so. >> Thank you, >> Commissioner. >> Um, so next slide.
>> Oh, I'm finish. >> So this is a summary slide of the different amendments to the lease. Starting at the very top, it's extending the initial lease term by 30 years to 2082 and then keeping in place the two 20-year extensions. The next uh there's
a unique aspect to re-evaluating the fair market rent in 2050 and in just asking to put a cap on the base rent increase based upon the procedure outlined in the lease next. >> And Michael just for people that
listening now or in the future simplistically why do you need an extension of the lease term? >> It's for financing >> for finance. But you're making a big capital investment of $50 million and to go out and get financing, you need longer
>> longer lease term. >> Thanks, Mr. Chairman. That's correct. Um, the next amendment is reducing number of required parking spaces down to 425, but of course keeping the 100 space minimum for public parking. The next is to allow the city manager to
approve major alterations that reduce the number of required parking spaces again down to that 425 number. And I can't see the last one, but I know that it's a an it's the development agreement has a scrivener's error in the exhibit where it says 80 feet. It should be 100 feet and we want to amend that to go to
100 feet because that's based upon current code standards. >> Scriveners meaning what? >> It means that in the development agreement itself, in the body of it, it says 100 feet is the maximum height for the GU zone portion of this property. But if you look further into the
agreement, there's an exhibit of the building itself that says it's 80 feet, and that's incorrect. So, we want to we want to amend that to bring it back to 100 feet to make it consistent. >> My nine yearear-olds beat me the last three times in Scrabble, so I'm always looking for new words. He's not going to hit her.
>> And I don't know if Robert wants to say want to say anything. Yeah, I think I think I've spoken to to everyone up here that it's it's a really big passion of mine to make sure that this project that we're that we're proposing is understood to be a project for a world-class operator to come into and make Miami
Beach a city where people are not just looking at as a vacation destination but also as a destination where Fortune 500 companies can bring their office, their res their employees can live in the city and walk to the city and my my overall dream which is bringing continuing making Lincoln Road the amazing road
that it is and without having people and bodies to be there on a day-to-day basis to support that. I don't think that dream ever comes about. I think this office building is a great shot in the arm uh to bring that all together. So, thank you guys for all for listening to this. >> Thank you. And Mr. Chairman, just we
have Kevin Crowder. He is our economic consultant. He did economic study. If you could allow him just have a brief summary of his study. >> You want to speak now or after? >> Yeah, after. >> After. Good morning. Uh Kevin Crowder with Businessway. Um, we took a look at
both the fiscal and the economic impact that this project can bring. So, looking at how the building has been repositioned already, it's gone from just under about 300 employees in the building to about 845. So, it's already been repositioned within what's happening in the office market in South
Florida in a really positive way with the addition of the 36,000 square ft. And I'll mention that that that's up to about 110 in current economic output being generated out of the building. now. And then the additional addition of
36,000 ft² would add another 269 is our estimate of the employees that will be there and about another $35 million 33 to $35 million annually in economic output that it generates on the fiscal side. What it does is you saw the slide
with the the the status quo 24 million 31 million in lease revenue to the city over uh in the current with the phase one and then phase two I think took it up another about 10 million dollar. We projected that with the extension
the just the phase 2 ground lease revenue over the extension period would be $130 million in addition to the what you would receive from the the currently from the what's already been done there. The ad valorum of the extens of the
addition would be over the term of the lease $572 million. But if we look at what's already been done recently and the phase 2 net present value in 2026 of fiscal impact to the city would be $255 million is our estimate of of additional
benefit to the city. Um the other thing I would add is just what are some of the the sort of why this matters? You've already heard some of that talked about. You know, this building was built during really the last period of office demand in Miami Beach when there was a lot of entertainment industry, uh, television
stations, music companies looking here, and it was a response to that. But at the time, there was there was land that the city had that was available. You've now already been doing, as was mentioned, things to respond to the office demand that we've had in South Florida much more recently. this building already is helping reposition
and show that not only is the demand there, but that meeting that demand is viable just through the tenants that have been been put into the building. One thing that was interesting, Hwood speak easy that's already coming into the building. The the headline on CoStar today is why have an office lounge when
you can have a speak easy and how speak easys are one of the things helping turn office buildings into more than single destination uh buildings but how they interface with other industries other parts of the community which is the last piece that we did is we used uh location
analytics to look at the building and see what do the people in this building do. 73% of the people that either visit and work in the building visit Lincoln Road on a regular basis. Um 13% of them specifically even to the
Apple store. The majority of the visits are during the weekdays during the five five days Monday through Friday which helps kind of extend that impact when you you know away from just having that weekend visit that may be coming to Lincoln Road. um
Apple store, the restaurants, and overall just shopping on Lincoln Road. A lot of different destinations showed up in in that. So, you get that that think of it as a mixeduse property. Even though it's mainly an office building, you will have the rooftop restaurant and some of these other establishments, but it really does generate that overflow
that you're looking for from the from attracting these types of uses to the Lincoln Road area. >> Great. Thank you, Kevin. That's all, Mr. Chairman, commissioners. If you all have any questions, please let us know. >> I'd like to see Robert. >> Love the project.
>> Thank you. >> Um, my doctor office is there, the Hagon Center. Um, but this is something that I've always brought up an issue with you >> at one of your tenants. Um, I don't want to see a Playboy logo at the top
>> for the next 30 years. >> Understood. >> Is that is that possible? If if I'm okay with this agreement that we all agree today that that's not going to happen >> on which top on this new building. >> Yeah. >> On the new building we can agree to >> or or the old building
>> that I cannot agree to. >> They they have a tentative right to put signage on the building but it's not been fully negotiated agreed to. >> Can we agree that it's going to be at the bottom floor, not at the top floor? >> I can't agree with you. I have to talk with them about it because they have attorneys and a lot of people that would
fight me on it. But we can talk to them about it. I'm happy to have you part of that meeting to talk to them about it. >> Okay. >> I just want to be as honest as possible, not feed you. >> I'm just being honest here. We're in a committee. We're not full commission. But I understand I think the important thing for a lot of people to note as
well about the tenant is this is their corporate headquarters. It is not a party. It is not a members club. There's nothing along those lines. It isn't. >> Listen, I I understand that. But when you have a family driving by on 17th Street and they see the Playboy logo at
the very top of a building, you know, I don't think that's necessarily the brand that Miami Beach wants. And so if you're coming to us asking for extra special favors, and I'm okay with giving you everything. I'm just simply saying I don't want to see a Playboy logo at the top of of a building. And you have and you know, you
can control that. >> So, you know, I mean, I I don't know it. you're going to be getting extra benefits out of this. I mean, obviously, we're going to be getting great benefits, too. But at the end of the day,
I I mean, I'm not I'm I'm going to be livid if there's a Playboy logo at the top of your building. >> And that every and everyone that goes by Lincoln Road into our city is going to see that. And I think that's just going to be an eyesore. >> I hear what you're saying.
>> So, I'm more than happy. I just can't agree to something that >> I understand. Look, you kind of caught you off guard. I'm more than willing to meet with you and your tenant and have a discussion about it and hopefully flesh something out, but look, you're coming to us for something and I'm and I'm asking something that's nonmonetary
at all. I think it's a very simple request. >> Understood. >> Okay. Happy to meet with you and the tenant and talk with him about it. Um, back on other tenants and I'll bring this up and when we talk about how
office benefits the city. I was having this conversation unrelated to this yesterday that neighborhoods in Miami as a whole are becoming more self- sustaining. People that live in the Grove stay in the Grove. People that live in Bickl stay in
Bickl. People that live in Miami Beach stay in Miami Beach. part of it's a traffic issue, but schools and things like that. Um, I'm actually aware of two of the hedge funds uh that move in. The one gentleman had his office in Coconut
Grove and him and his employees live on Miami Beach, right? One on Pine Tree Drive. And think about what that does for a city. So instead of him driving over our causeways every single day and him and his 20 employees bring all of
their daytime economic activity to Coconut Grove, they will now be frequenting Lincoln Road. There's another gentleman that lives on Collins Avenue that's taking one of your spaces. And that same analysis, he was in another office building, I believe in
Coconut Grove, Maple Lane Capital. Um, so now that won't be the impact on our infrastructure of people leaving our cities during the day and just as importantly their entire daytime economic activity will now be shifted from Coconut Grove to now not only Miami
Beach but hopefully uh to Lincoln Road here. Azie, what are the outstanding items that have you I I guess I want to talk two things. One is logistics, right? if you could and if it's you or
the city attorney, walk us through because in our briefing, I don't want to say it's complicated, but there's some logistic uh considerations. This has to go to planning board, then back to FIRK, but we actually should make a recommendation
here to the commission that the full commission essentially allows staff to continue negotiating. >> Sure. Um so, uh this will need to go to the planning board. This will need to have two public hearings at uh the commission
and this will go to the voters on on a on a on a referendum in November. Um we need to accomplish all of this by the July meeting because July is the deadline for any ballot questions. U the the next step from here would be for
this committee to make a recommendation to the commission and then the commission would consider that and either adopt the recommendation or not. Um the planning board meeting uh I mean I suppose could come before the commission accepts the recommendation but probably makes sense for planning
board to to hear this after the commission. >> I'll add the terms that I would like to see considered or included and you could tell me if these have already been brought up or negotiated or things like that. um what happens what safeguards do
we have if the applicant or project sponsor doesn't complete this investment with a certain amount of time right so what I want to prevent is this lease extension getting voted on favorably but then if nothing were to happen the office market dries up or financing
costs go up that doesn't make it viable that the extension doesn't happen unless this work is completed >> that is correct Mr. chair, that is one of the final terms that we are still discussing with Mr. Irvani and his team and we plan to bring that in final form
to the May 6 F with all of all of the stipulations on that. >> Okay. And the other this isn't huge for me. Uh I just think it reads a lot better. Right. So, we're asking right now the the lease expires in 2050
>> in 2022. >> 52 and then there's two 20-year lease options. >> Correct. >> And then we're asking for a 30-year lease extension. I I just think it reads a lot crisper and simpler if we would say let's add uh a similar another
20-year extension as opposed to complicating it with 30 years. It just looks uneven just optically. Would there be anything from a financing perspective that that would prevent? >> Um, it's a little bit it's a little bit shorter than what we would prefer. Maybe
two 20-year options would be more beneficial and then they could be tied to performance like you said or something along those lines. Um, and and we're totally okay with making sure that whatever rights were being given are tied to a new building being built and we're not just pulling a a fast one to get this without uh keeping up our end
of the bargain. So, I have no issue with the first part. come back maybe with some different options. >> Yeah. >> When you guys negotiate because it's not just us that you have to get this passed as the voters as well, you know. So, I I I am cautious saying, "Okay, here's
these two 20-year option extensions." I think it just reads a lot simpler where it's, okay, you already have two 20-year options. Uh you're doing a $50 million renovation, and in fact, then you're going to give the asset back to us. So, you're actually renovating and improving
our building. Um, I just think it's it reads a little crisper to have a 20-year option, but you guys come back to that. And then you also touched high level on a public benefit. I don't know if you want to speak to what you have in mind and get direction from us. I know for me, what I would love is a public
benefit that essentially I mean, we all talk all of us, you know, talk about wanting to see improvements in Lincoln Road. Um, I sometimes lose that enthusiasm when some of this stuff just gets put into this
arbitrary lockbox and go, you know what, this is going to go for a future project or this is going to go to some budget shortfall for a resiliency project. This is the voters's asset, the taxpayers's asset. I think they want to see excitement for Lincoln Road, right? So,
if a public benefit would be dedicated to immediate >> activations for Lincoln Road or something along those lines, I I'm not dogmatic about what that is. A playground, a Berto sculpture along Lincoln Road. I mean, how amazing are
our art activations for that area. This is >> It's interesting that you say that, Mr. chair because part of this program also will activate the art in public places with the uh the large scale u project that they're going to be doing >> and as I understand that's totally
separate though correct so we already get that benefit but if we would say you know what above and beyond >> you're giving a public benefit of $500,000 or $750,000 um and that's going to go to a sculpture
project on Lincoln Road like I I I think that is where the true impact is. >> In our preliminary discussions, uh contribution to Lincoln Road improvements is at the top of our list. There's also a series of other public benefits that are being discussed and
presented by the Revani group um that we're going to be ironing out over the next couple of weeks and be able to present something solid. >> Yeah. Yeah. I prefer >> I can make a comment. prefer to keep that simple like I want something tangible where it goes wow we give this
this is what we get not next week but you know not 10 years down the line a a playground on Lincoln Road a sculpture program on Lincoln Road right let's keep those benefits there >> absolutely and one thing I wanted to just track back on a little bit when you
were talking about occupancy in the teny um at the building something very important to note also is that it's not only the increase in occupancy But it's the quality tenants and the market rents that are being generated. So it's not just about bringing in a tenant that is paying a rent. They are they are paying
market rents which is a benefit for all of us. >> There is quite literally and I know this firsthand experience no class A office space available right now in Miami Beach. In fact, uh I just my firm and I just rented new class A office space and
we're paying rates that are equivalent to Hudson Yards and one Vanderbilt and we're on the corner of 17th and Alton, right? There was nowhere else to go. No occupancy in um
uh the Sunset Harbor. Sorry we passed on your building. Hopefully no hard feelings, but you've done well filling it up uh after that. But other than that, there is nowhere to go. >> That's true. >> And we just made a big announcement this week that Damon John is moving his uh headquarters from Winwood down to Miami
Beach, uh, part of the Shark Tank Group. So, that's another amazing announcement that just came out. So, it's it's we're having we're seeing a snowball effect that you build it and people will come and that's what we're literally seeing every single day. >> That's incredible. Commission and commission.
>> Um, so I fully support the project. Thank you for everything that you're doing here in Miami Beach. I do want to say though to Commissioner Dominguez's point earlier about the parking issue and I want to talk with you guys a little bit more about that because I understand that that garage is underutilized. I get it. I have no issue with losing the, you know, floor and a
half of parking. No issue there. But with this wonderful investment, we are going to need more parking because if I go to your private club to have dinner or meet a friend for drinks, I'm going to want to park right there. And so I want to do I want to um you know speak
with you about that fee structure that the city has because you know like we're seeing in North Beach if we're paying double than what the city rates are. It's going to force folks to park in the street or you know circle around and so I just want to make sure that that's a city parking garage and it stays those
rates stay residential and we can speak about that. Thank you. So, I'm I not a problem at all and I'm I'm happy to commit to something that they come up with that they think is best. In terms of parking, being a former restaurant, still a restaurant uh developer, you'd be surprised for a 12,000 foot
restaurant that we have south of Fifth, probably only takes 60 to 70 cars at a single time and our parking garage is arguably going to be empty after 6:00 cuz all the office crowd is gone. So, when you have 400 plus parking spaces, I don't think we're even going to come close to filling it up or affecting the
transient parking for people of Lincoln Road. But then you also have multiple lots. The city lot, I believe you guys have like a thousand spaces that concepts like MA are using for overflow parking. So, um I I don't think that'll be an issue in addition to having the uh the surface lots at at that time are not
that busy. But if we need to commit something to to guarantee that, I'm more than happy to do that for the residents. >> And as I read the memo, it's in the original lease that the city maintains access to 100 public parking spots and that remains flat. You're reducing your
own private parking and the city's access for public parking remains exactly the same. >> When when this parking garage was done, it was done in a much different time when Uber and a lot of the um pickup drop off weren't really as as involved. And now you're seeing people like we have people that just walk to work or the golf cart to work and they're not
using parking spaces. So I think parking has has changed and once robo taxis and all those things come along the next 5 10 years it's going to go down even further. So, I think the trajectory is going in the in the way of less parking, but again, happy to commit to the same hundred we committed to originally when the agreement was done. >> Commissioner.
>> Yeah. Um, so the public benefit of a million dollars, I I do agree that um the bulk of it should go towards um Lincoln Road. I know that there's concession agreements um that are being done that are not uh have nothing to do with Lincoln Road. I made two small
requests. Um, one of them is, um, $6,000 a year for three years for senior programs. The seniors are important. They're voters. Uh, they've made requests that I've been trying to find funding for. So, that's something that I
will um as the negotiations go. Uh, the other request I had was um funding for the sister cities program. Last year we had a beautiful event in December at Andreas Carnees. Uh the sister cities bring international exchange and
economic development to the area. So if the priority would be that for the funding that's being requested um happen on Lincoln Road, that's perfectly fine. But um that's the intent um for the Japanese
>> economic development and if it needs to be focused on Lincoln Road, 100%. >> This is for the Japanese city. Uh, no. I actually went to Japan in January. I paid for it myself. >> Flight from Tokyo to here. I do. >> Um, and Japan is Fujisawa is actually
our oldest sister city. 67 years of uh partnership. >> Um, >> we need a direct flight from there to here so we can get more of their business. >> Yeah. Um, so more to discuss, but I did just want to throw that out there. Those were two tiny requests out of the $1
million pot. Um but I agree with Commissioner Magazine that the focus should be um Lincoln Road. >> Amazing. Happy to accommodate. Thank you. >> And something you can see, right? I I don't want this to say, well, the city's
uh resiliency project ran over budget, so we're going to fund that budget gap, right? I want our residents to say, "Wow, >> this is this is an improvement that we can see that's going to happen in the next 12 18 months." >> That's great. Absolutely. >> Um, Mr. Chairman, just a quick
logistics. The city attorney was kind enough to call me yesterday, try to walk through this confusing >> future hearing schedule and April 22nd, I think he and I would agree, would be the next stop before the city commission where they would authorize city administration to go forward.
>> We would like to try to go to May 5th planning board um on an accelerated because we want a month cushion at the end. if we go to May 5th planning where that's meaningful for our schedule >> and then we'll go May 6 FK. Um but I just wanted to put that out there and make sure that would be okay or we can
talk about it. >> Sure. >> Later. >> Great. Thank you. >> That's all Mr. Chairman. >> So this will be returning to commission not returning to FK originally as Men. So >> both it'll it'll go to comm is where it
gets logistically weird. We we send this with a recommendation to commission and commission directs staff to negotiate and what we pretend you haven't been negotiating. How does that work? >> We're going to come back on May on May 6 with a final terms to FK.
>> Yeah. >> Uh with a recommendation to commission in May uh to present u substantially complete amendment number one. Well, like >> we can discuss this offline, but there there may not be a need to come back to FK, but we can discuss that offline,
>> right? But we need to actually make a referral >> a recommendation >> for commission to direct city staff to prepare a finalized term sheet. Correct. >> Yeah. Commission needs to accept the terms as negotiated and to direct staff
to negotiate and draft a an actual amendment to the lease. So, we're 95% of the way there. In between now and April 22nd, you can get the other 5% and then commission can vote on that. Correct. >> That would be ideal. Yes. >> Okay. So, coming back to commission
April 22nd, >> that's the recommendation. >> Okay. >> Is that enough time to finalize the negotiations? >> I'll start talking right after. >> Okay. Uh, so I'll scratch what I originally had here, but I think then it would be returning to commission with a favor recommendation to direct the
administration to ex um accept the the final term, sorry, return to commission with a favor recommendation to approve the final uh term uh term sheet. um in and including um including the input
from FK on optional extensions, specific public benefit projects, uh $6,000 per year time uh for three years for senior programming and funding for sister city programs. That's what I have. >> And I believe your speak easy is
Japanese. So perhaps the sister city delegation can >> I said Japanese? Yeah, >> it's his favorite country. >> My favorite country. >> Mine's America, but >> outside of America, Joe. >> Will, thank you for just looking
activated. Uh, we talked last time it saved you the run from the back corner. Um, I love it. I love it. All right. Thank you all. Thank you. >> So, if I can, who's making that motion? >> I'll move it. >> I'll second. >> Okay. >> Thank you all. Appreciate the time. >> All right. and your magazine. All in
favor? >> Oh, I don't know if we can. Ask Rick if we can. Oh, yes. >> All All in favor? Hearing none against. We'll show the item pass three nothing. MB15. Thank you. >> Ask Rick if we can since it's a future item. >> It's not on the agenda.
If we can procedurally >> uh let's hear NB14 MB14 water sewer and storm rate storm water rate ordinance MB14 commission
I'd like to welcome a few people that for joining me today. Brian Mance who is our rate consultant from Govates. We also have Dr. Cara Borless who is our assistant director city engineer and Tracy Hell who is our admin services manager who does a lot of our finances
and public works. >> I don't even want to ask about your credentials if you're an engineer and a doctor. I I'm already feeling inade. >> Yes, she is. If you don't mind, I'll start with a presentation to go over um what we're proposing.
>> So, it's John, is this a continuation of our robust discussion at commission last month or is this separate? >> No, this is totally separate. Last month, we were talking about adding CPI to the water sewer impact fees for new
construction andor increasing the size of a meter at a new development. So this is completely separate. These are rates that our customers will pay to get their water and sewer through the city.
>> Okay. So why are we here today? The main reason we are here today is about water quality. We have been facing water quality issues in Miami Beach over many years and that's due to our aging infrastructure.
What makes our city a destination also makes our infrastructure extremely challenging to maintain and that is the fact that we are a combination of man-made islands and natural islands that are connected to make an extremely dense community with very little pvious
area. What that means is we have to get water and sewer from one island to another. The way we do that is subacquous lines. Basically lines that run under the water
and come back up from pump station to pump station. We also have aerial lines that go across bridges. What this creates is an opportunity for an environmental disaster. If we do get
a break in one of these lines, city commission has said repeatedly that we want to replace infrastructure. That's a top priority of the city. So that is why we are here today to discuss
why that is a top priority. These lines that run under the waterways back in the day they were done with ductal iron pipe which was a very longlasting pipe. Now we have different more modern materials. We have HDP which
is a plastic pipe which has fuse joints which basically takes away the areas where these pipes can fail. >> You might have seen a recent project. >> Can I ask you a quick question? Are we talking about just the subset of our pipes in this, the ones that are just
flowing through underwater or should I be thinking about this as citywide? This is citywide, but those are our most vulnerable places right now because they are out of sight. And if we did get a break in one of those, there will be a time lapse between when we realize
there's a break and we have to respond. And then we have to figure out how to get the sewage from island to island or how to get the water from island to island. So, it's a very challenging problem that most cities don't have. Even other islands up and down the
Florida coast don't have the multitude of islands that we have and the connections that we have. It's not a matter of if we're going to have a failure. We've had failures in the past. We have a current consent decree that we're working under, but
it's when it will fail, and it's how big of disaster it will be. We also have storm water issues. We have very few options to treat storm water prior to discharge because we are a very
highly dense community. We are comprised of high-rise high-rise condos and single family homes. And while we have beautiful parkland, it is limited. I live in North Beach. I don't have a dog. My kids want one. But if I had a dog, I
would have very limited options as far as where to walk that dog. And essentially you get dogs going to the bathroom near the street washes off goes into the bay. >> John, not to derail this, but thank you
for working our city and also choosing to make Miami Beach your home. >> Thank you. And also Cara Boles just recently moved very close to me in North Beach. So the city has been an innovator in sunny day flooding. We've seen it in all these
neighborhood improvement projects and the results are proof that it works. You can drive around the city. Let's take Sunset Harbor, Indian Creek. Those problems have been solved. That's really important because that flooding not only
affects the storm water quality, but it also causes inflow and infiltration into the sanitary sewer system, which increases our cost to treat sewage. So the water and sewer, water, sewer, and storm water utility funds are
enterprise funds. It's important to note that these operate independently from the general fund and resort tax revenues. >> Anything at the state level that touches on any enterprise fund from a taxation
perspective? Well, we cannot use enterprise funds. >> I So I just mean like what's happening with the homestead property tax? Will any of that impact? >> I've heard of no. >> So these funds must operate pretty much like a private business.
>> The revenues that we take in must pay for our expenses. >> Quick question. >> Yes, sir. >> Maybe it's for Jason. I understand you can't go from enterprise funds to general funds, but can you go the other way around? Can general funds fund an enterprise fund if need be?
>> I'm gonna ask uh Sergio who is our financial adviser to weigh in on what the reading agency impacts of such a subsidy would be. >> Thank you Jason. Thank you committee. Sergio Midfell PFM financial adviserss. Uh so so to the question yes the funds
could be I guess coingled in a in a sense where the general fund could support an enterprise fund. However, that is frowned upon by the ray mans as >> well maybe not like you know not not moving forward but specific projects. So for example these aging pipes and if we
came up with a plan to say there's a bunch of you there there's a certain number of aging pl uh pipes can the general fund subsidize that enterprise to pay for that project? Yeah, I think there's certainly a distinction that could be made versus uh when you
consider kind of ongoing operations and maintenance and support from the general fund versus one-time support from the general fund for specific projects. That's certainly a distinction I think that can be made with credit agencies. Uh but again, just at a fundamental level, the credit agencies like to see that these utilities can stand alone on their by themselves.
>> Yeah, if I could add to that, I think it's something that's not generally done, but sound like it is possible. But to note that we are >> it's not possible the other way around is what you're saying. >> That is a locked fund. Yeah, you would not use water and sewer funds. >> So, I'm gonna let John continue. >> Thank I am known for my dad jokes. So, I
would say it's kind of more of a rainy day scenario than something that we should kind of bake in. >> You didn't like that one, Commissioner? >> Yeah. Yeah. I No, I mean just that's not a haha. Okay.
>> I just I'm just I Yeah, I just I All right, please continue, John. >> Yeah, no problem. So increasing property values, advorum taxes, they don't benefit the utility funds. So as our costs rise, which all costs rise, we
only see an increase in revenue when rates are increased. And our expenses go up. Construction prices have gone up double digits since CO almost every single year. Contractors don't ask us for a
rate increase. They bid based on market value and we essentially have to take the lowest responsive bidder. So we are essentially working with less every single year. Last formal water sewer rate study was
completed at the end of 2020. Last formal storm water rate analysis was completed as part of the 2017 bond issuance. We need multi-year rate and financial plans that reflect the current conditions and address the
substantially higher utility infrastructure needs and costs. So the funding challenges, water, sewer, and storm water improvement should be performed at the same time if possible. That's why we have the neighborhood improvement projects throughout the city. It's less
disruption to the residents or I'm sorry, a shorter term of disruption to the residents. We replace everything. We basically remodel the street at one time and it's done. About uh 62 million
of the water and sewer operating expenses are uncontrolled treatment and regulation costs from Miami Date County. We buy our portable water from Miami Date County and we send our waste water back to Miami Date County to be treated.
Inflow and infiltration, which is the groundwater going into our sanitary sewer pipes, or it's an open cleanout cap and flooding water pouring into there, or a manhole cover leaking and
getting storm water into it. We have about 38% of our sewage treatment cost comes from inflow and infiltration. And the way we know that is we meter all the residents usage, but then the county also meters
what we are sending back to the wastewater treatment plant. That accounts for about $13.2 million a year in cost to the city. By improving the infrastructure, we are basically sealing up those pipes and reducing that inflow
and infiltration. It takes time, but eventually we can get that number down substantially. Most grants awarded the city require 50% match and the projects must be completed within a certain period of time. We currently have quite a few grants that
are funding some of our current projects and future projects. We have a lot of shovel ready projects in the next few years because we've been designing these projects and we need to have adequate funding to build these and we must charge enough
in user fees to maintain this infrastructure and do these projects. When we go for grant money or state revolving fund money, they want to make sure that we are charging enough for our utilities. If
we're charging half of what we should, they're going to want to give that money to a utility that's actually charging the right price. It's not meant to subsidize the utility. So, that's one requirement when we're looking at grants and revolving funds. They have to make
sure that we are charging market value for our utilities and that's another reason that we are here. >> John, any income statement has two sides, right? Revenue, which we're talking about here, how much revenue is going to go into the system. What
constitutes some of our expenses? And is there anything that we could do to be more efficient uh on the expense side to offset some of the revenues that would need to be raised? Most of our expenses are going to come to from the capital improvement plan. As you'll see, we do have operating
expenses. In my opinion, we run extremely lean as far as the demands that are put on the department. We run 24/7 control room that's ready to respond at any time. I've never seen another city that has
that level of service. I think we could reduce the level of service that we provide and trim that down slightly, but I would say we are extremely lean right now as far as operating expenses, but all those all the expenses for
personnel go into that. Pension cost, health insurance cost, all of those items are included in uh the expenses for the utilities. Yes, sir. And let me just add on to that the the biggest component of the operating expenses is the pass through cost to Miami date county of which we unfortunately have no
control over. Um so the buying the water in bulk and then um having paying Miami date county to treat it at the the central district wastewater treatment plant on Virginia key takes up a majority of those costs. So when we're talking about things like our rate increase, it's really related to the
things that we have control over um at the end of the day. >> And and that's an enterprise fund from them. >> Yes. >> My concern would be the homestead uh exemption passes. It could impact 30% of their revenue. >> No, this this is just I I'm not aware
really of any uh municipal general fundrun util water and sewer utility storm water. They're almost always an enterprise fund and Mamed County is that way. As a many many years ago, I used to be a civil engineer working uh consulting with Mamed County on this
back in the '90s. And they are an enterprise fund. They do have control over the rates and they do regularly set rate ordinances um to fund their capital program and they do have I believe a multi-billion dollar capital program because they are in the same situation
kind of they were 30 years ago when I got started of deferred maintenance and having to get a lot of work done. So they are are increasing the rates. And the other last thing about control of our expenses is we were recently in October upgraded by standard and poor
from a double A minus to a double A rating. And that higher that rating, you know, you're going to maybe small, but you'll have a a uh a decrease in your interest cost. We're going to get better rates. So having a financing plan, which was the model that is being presented to maintain our double A rating, will limit
our exposure on interest rate uh hikes. And these enterprise funds, they can go bad, right? Off the top of my head, I believe Jackson, Mississippi, >> you're thinking of Jefferson County. Jefferson County, Alabama. >> Yeah. Was a very well-known one that um
issued uh too much debt. And they they're one of the few that I can think of other than the other revenue bond I can think of is I think Santa Rosa Bridge uh somewhere in Florida was another example. But they are extraordinarily rare because you have the ability to uh increase rates. And I
just want to read one thing real quick right from the standard andor statement when we got this rating increase. And their stable outlook reflects our expectation that the utilities rate setting practices will support robust coverage and maintain strong liquidity levels while addressing capital
improvement projects related to replacement, rehabilitation, and climate hardening. So, we are known uh um through the rating agencies that we are a proactive uh city that are addressing our climate change. And one last thing I'll say before I turn it back to John
was when I came here to the city 3 years ago and you know been a long-term resident, one thing I was very proud of that I was semi-surprised was that there are entities that come from around the world. We were hosting uh people from Denmark, I think uh from the
Netherlands, Australia, they came from around the world to see what are we doing to address climate change as it relates to our uh hardening infrastructure. And I was very impressed that people are spending thousands of dollars to send their experts to our little city to see what we're doing
that. So we're globally known for for for doing the right thing at the end of the day. So thanks John. You can continue. Okay. So, we create a capital improvement plan that's required for this rate study. And these are the components we look at when we're
creating that plan. Criticality of need. We currently have one consent order. Those projects have to happen. We have no choice because it is a courtordered pro uh consent order. Grant funding time frames. If we have grants, there's a deadline to complete that project. We
have quite a few grants right now. Utility master plan. And so the utility master plan was brought to city commission. That master plan outlines all the projects that are recommended and the priority of those projects. That the master plans were adopted by city commission.
City commission direction on which projects to complete. We know there are other competing interests that might move a project up on the schedule. Consideration of how much could physically be accomplished during a given time period. That's a huge
challenge in Miami Beach. One of my most common complaints is traffic calls from lane closures. So, we can only do so many projects at a time. We only have the personnel to manage so many projects at a time. So, we have to look at this.
If you said you were going to give us all the money needed for CIP projects today, there's no way we could do it. We have to >> I'm not sure if that's where this conversation's going. Thank you, sir. Um, the ability to finance the improvements while maintaining the metrics suitable for the
AA utility bond rating to minimize that interest and the rate affordability to the customers. So, I I know you can't read this, but this is the CIP plan. You can see how things are spread out across the years.
This is a uh seven-year CIP plan. That's remain. What's remaining from this rate study? >> How many projects are there? >> There are 50 57 projects >> and those would be affected without this. >> So, I'm glad you asked that question. If
we do not increase the rate structure, current projects that are under construction, they're funded. They would continue. projects that are planned in the future. Let's take future phases of West Avenue, First
Street, Northshore D, which Northshore D is a greatly needed project for water quality in the north part of the city. That project is 135 million estimated between water, sewer, and storm water.
There is not any funding for that project without bond issuance. So this is a breakdown of the projects and the type of projects based on the fund. This is water and sewer capital improvements and then the storm water
side. So we have assumed the need for multiple bond issuances through fiscal year 34 for about 400 million for water sewer and 235 million for storm water
projects. The way this rate structure has been formulated we have not only debt funding but we also have pay as you go funding. So there is a blend. A higher bond rating translates into
lower interest rates as we've discussed lower issuance cost and lower rates over the long term. $85 million in water and sewer bond issue authorized by the city commission and 24 has not yet been issued. there was an intent to issue and since a
multi-year rate and financial plan has not been adopted, this will essentially give us the mechanism to issue that debt. This is a rate increase history and we've talked about the passrough rate for Miami Dade County. On the blue
chart, if you go to the right, the fourth column is the Miami Dade County pass through for water. That is what Miami date is increasing our our water cost. That is passed on directly to the customer. That increase
is not on the whole bill. That is on the volutric cost for the water. The same applies for the sewer. >> Why is it negative in 25? They actually reduced rates and and there is potential for reduction in rates. If we see a recession and
construction costs go down, there is certainly an opportunity to reook at the rate study and reduce rates. We haven't seen that in a long time with construction cost. If you look at the second column on the blue chart, that's actually what the city has
increased rates and most of them are CPI or lower. >> John, I have a question. So on the fourth column, those rates are automatic. The county commission doesn't vote on it. The the residents aren't given advanced notice. It's just put on
the bill. >> I believe the county commission does vote on it because they do act as a governing body of the utility. But they don't call us and say, "Hey, what do you want your rate increase to be?" No, it's we we get a letter and that's what it is. If the if if it's if we had a
negative three and a third, why did it go up? Would the city increase in 2025? If the county pass through decreased? >> Well, because so the Miami Dade County passroughs do not help our operating
cost at all. So our operating costs have increased significantly. We have employee raises. We have increase in pension costs. We have increase in health insurance, equipment, materials. That's the second column. That's what
supports our operating costs. >> But you're asking us not to increase it by 3.6%. What are you asking me to increase it by? >> I'm getting to that if you don't mind. That's in a couple slides here. And that is to make up for the increases
since 2017 that really have not been enough to keep up with the inflation indices for construction and for utilities. >> John, do you have a mix of where that revenue comes from? Uh, specifically
commercial versus residential. >> I do not have that breakdown. Brian, do you have that? For the record, Brian Mance from uh from Govern about 40% of your overall utility revenue comes from commercial customers.
60% is from residential. >> Say that again, please. >> About 40% of the utility revenues comes from commercial and 60% comes from residential. >> And does commercial mean multi-unit condo?
>> No. No. I'm multi-unit is is included. Commercial is a BTR based business. >> That would be office office, hotel. Yes. Uh retail. Got it. >> True. True commercial. >> Okay. >> And Mr. City Attorney, uh are there
legal stipulations that would not allow us to bifurcate uh rate levies between residential and commercial? >> As I understand, we can't charge different rates for for commercial and or or versus residential.
Yes. So that question was asked when we were formulating this plan and uh we cannot charge different rates. So we did advise with legal and so the presentation last year for this same topic
included this graph here or this chart here which is the impact for a single family resident. I changed this and we did some estimates this year because approximately 90% of our residents live
in multifamily condominiums. I do, Cara does. That's Jason does. That's pretty much the standard for Miami Beach. About 10% of the residents live in single family homes. So we did this exercise.
What we did is a condominium has a master meter. As a condo resident, I don't get a water bill. The HOA gets a water bill. They pay this whole water bill and then they divide it up amongst all of the units and they charge it in their HOA fees.
So, what we did is we did an estimate. We took units ranging or buildings ranging from four units up to over a 100 units. It was a sample size of about 1,200 units and estimated what our proposed increase how that would look on
the bill of the average resident. You can see in 2027 it equates to $11.77 per condo unit. That's an estimate that would vary based on usage of the actual condominium.
Then it would go up to 1351 and 28. I'm sorry. You can go up $13.51 and 28, 1321 and 29, $11.17 and 30, 1151 and 31, and $516
and 32. And to the right of those numbers is the associated percentage. This is a combined estimate based on water, sewer, and storm water. So, this is the impact over this six-year period. that the
average resident in the city would see. >> The next slide is going to be >> up. >> Can't see that. Maybe I look up here. >> Yeah, just break that down simplistically, John. Show us uh >> pick out an example year 2027 and tell
us >> 2027. >> Yep. We are looking at an increase of about $11.77 for the average condominium resident per >> per month which would bring their bill
from 10414 to $115.99 >> per month. >> And I say their bill but really their portion of the HOA's bill >> per month. >> Per month. Yes, sir. So 11 $11 is the delta on for 26
>> between 26 and 27 >> and then between 2728 it would be 13. >> Yes sir. >> So the bill over the six-year period would go from or 7-year period go from $104.14
to $17046. I want to point out something very important here. The EPA has a threshold for affordability and that is 4.5% of median household income
below 4.5% is considered affordable. That is only for water and sewer. This bill that we're talking about is for water, sewer, and storm water. Florida is a little unique that we have storm water utility funds pretty much in pretty much every city for obvious
reasons. We're coastal cities. We have different challenges. Sunny day flooding, sea level rise. But if you look on the far right column, the existing, we're at 1.7%. We are less than half of the affordability threshold
that the EPA outlines. Even going into year 2032, we are just above half of their threshold. So, the city of Miami Beach has very reasonable water and sewer rates, and
these are essential services. Nobody cares about water and sewer until you turn on your faucet and there's no water or you flush your toilet and it's backing up into your condo or your house. >> And John, I know you likely don't have
uh this analysis now, but when we hear this again, perhaps in full commission, maybe Mr. CFO, you can help out here. Can we have those increases X just customary inflation,
>> right? So, >> oh, what what inflation would be as compared to what our rating? >> No, if you Yeah, if you strip out inflation, you know, let's call it 3% CPI. So, I could see above and beyond what those increases are above and beyond inflation. Yeah, we could they
could add a column uh you know stripping out estimated 3% CPI which would be you know basically 3% less than what's there but yeah they can prepare that >> because you know that may look like a huge delta now and it does right but I I'd be interested to see just you know
if we would build on the 115 >> and 3% each year what that number would be and chair if I could just add on and I think John touched on a little bit earlier but we were set in a set a set of rate structures based on the blast study that was set way below what basic
inflation was. And just on the last rate structure by doing the subsidized uh rate increases instead of CPI uh I think it was over 10% we lost out just on that. So when you're looking at those rates, part of the fact is that a prior commission set rates so artificially low
on the increase side that um you know we lost out over 10% just on CPI. And as John also mentioned, construction has been running at probably double uh CPI, if not much more on that, which again most of the costs of the fund are coming
from this $1.2 billion 10-year capital improvement program. >> Yes, sir. So I would also recommend >> does >> including a construction indicy that would kind of show how much construction is increased in that. >> Does this include the county's pass through
>> these numbers? >> No, this does not include whatever future pass through increases the county would give us. So this is strictly what the utility needs for their operating expenses minus the pass through cost. Right? >> So this increase is just on our portion
of it. So it's not adding the two together. We don't know. Um the county doesn't give us those numbers until June or July of every every year. Um as you can see they are not even predictable when they show the prior rate. Sometimes it went down, sometimes it went up 10%. It's based on whatever their bonding needs are for paying their operating
expenses and their capital program >> on average. What is it? >> I can show that in a future slide. >> Oh, okay. If >> Yeah. So if looking at this, if we would apply a 3 and 12% CPI from that 115
number in 2027, in 2032 we'd be at about $145. So the county's pass through does not affect the total bill amount. That's the volumetric usage. So
even though the pass through might look like a lot when we get to that slide, it's not the whole bill. This whole bill includes storm water. It includes base charges that there many components to the bill and we can certainly do that in a future
presentation. Break that down a little further if that's what the commission wishes. So this is the same chart just for single family. So instead of $11 and change the first year, we're looking at $15 and so on and so forth. And there's
an assumption that after 2032, this will settle down and go to more um increases that are more closely tied to CPI. What what what what usage did you factor into this month?
>> This is 5,000 gallons a month, which is a typical usage done when we do these presentations. >> Did you do 5,000 a month for the individual condo units? >> So, no, we did not because we actually
took their usage because it was very difficult to do that exercise. We actually had to go in and take actual bills and divide it by the number of units. So >> you used an actual building, I believe. >> Yeah, we use actual buildings. I've got
a spreadsheet full of buildings. And >> if I can I've done this before. >> Did you use the average of all the buildings in Miami Beach or did you just sample? >> Just a sample. I It was a total of,200 units total. If you if you know I've run this exercise in a smaller city buildings,
>> but houses typically use more water than a unit in a condominium. So that's why it would be it would make sense to have your volumes uh lower on a condo versus a house. >> So what so what what average usage did you use for condos?
>> I don't have that, but I can come back with that >> because you're using 5,000 gallons per sing on average for single family homes. I'm curious to know what usage you use for >> so that's the 5,000 gallons is an industry standard when you're doing a
presentation it's an average usage for single family home I would estimate that the usage in Miami Beach could be potentially higher due to the larger meter sizes on some of the very large homes and we do have modestiz homes but we're all seeing what they're being replaced with so that could vary
>> but you can include that in the the memo if this goes back to commission where it mentions the for the model perspective just you know the model use 5,000 gallons assumed usage on water for uh uh uh single family homes and X for the condos but I it would absolutely should
be less than 5,000 when it comes to peronda but they can put that number in the memo >> and Mr. city attorney. Just trying to put my thinking cap on about how we can protect the residents that likely need it the most. There's no way to have this
usage tax somewhat progressive, for lack of a better word. So, if your usage gets to 7500 um gallons per month that an extra search charge would kick in. >> I don't believe that we would be able to do that. And I think to provide well
Jason is is suggesting other ways. >> I think for public works they can look I believe we have a tiered um usage model. Um you can speak a little bit about our our our charge model. >> Yes we could do that. We could have like a conservation use model where high
volume users are going to pay more. That is typical in industrial settings. I where you've got an industry that's using a very high volume of water. Brian, do you want to speak on that?
>> Yes. Uh, currently the the uh the the water rate structure is a I guess a a inclining tiered rate structure where you have certain blocks and as you use more water you get into the more expensive blocks. So that's uh that's
very typical and and it's expected uh that's that's the expected rate structure and uh >> and what flexibility do we have around increasing rates at the higher usage tier but keeping rates lower for the
lower usage tiers. And where I'm going with that is if there's lower usages for uh our lower impact users that probably are least able to uh take on some of the
um impact fees here. It's very different than maybe a um large hotel that is going to have uh very high usages. And if we could make the more impactful tiers
scale a little more expensive, then perhaps that could offset some of the needed >> Yeah. And I like where you're going with that, Commissioner, Mr. fair because that also gives a has a mindset for users to be more
cognizant of their water use and not have to um probably consume as much as they normally would >> and probably even changing some of their faucets, you know, where it's has a little bit less of a rate of flow
>> if I can. Yes, because our existing rate structure, which again is very common to allow for things like that. So the commercial mass of users are paying more. The if I'm looking correctly are it's a $118 per thousand gallons for the first 8,000 then it jumps to 326 for the
next 8,000 and then next then above that it goes to 483. Um so what and then over 24,000 gallons which is going to be your largest buildings commercial you're paying 659 if I'm reading this rate structure correctly. So it is exactly set to that where the smallest users
will pay the least. >> Right. And I guess where I'm going with this is is there a way to essentially increase by a more incremental amount the higher usage tiers. Right. So we would keep the um for
example right for example the lowest use usage tier we keep flat. the next usage tier increase by 1% the next usage tier above that you increase by 3% and it's kind of a backdoor way of also um
bifurcating residential versus commercial. >> What the LTC on this M what did you use as the baseline? I'm sorry. For what? The utility rates. >> No, the usage >> on the LTC. >> It would have been either 4,000 or
57,000. >> And that's because historically, historically on the LTC, it had always been done 7,000. So, we kept that consistent. >> If But your model, you just said this model uses 5,000. >> 5,000 is what we used on the rate study.
>> But if your LTC is using seven, why why is there a delta there? I I don't have a good answer for that. >> Five 5,000 gallons is is kind of a typical 7,000 gallons per month is kind of high as far as a a average residential usage. 5,000 is more typical
in in Florida. So, we're kind of um using a a level that's more consistent with with Florida. Now, as far as the the race structure, certainly we could put more um more uh >> and the only reason I ask is because if
we're actually if if if Miami Beach users are using less water because I mean I just did a simple AI search and it says key water usage data for for the Miami area two 2 to 3,000 gallons per month average is 4 to nine high is
10,000 and that's per unit obviously. So, you know, I I I just want to make sure that we're not charging because of of of an inflated usage that we don't typically use anyways. >> No, I can. This is just they were just
using as an example. It was just to show to illustrate a point. It has nothing to do with what people would actually be built. People get build on what they actually use. So, if you have a a huge home, you're going to be using massive amounts of water. This is just an example. and we could get the average
the actual average usage from the past 12 months for a single family residential and we could do that exercise for condos. It might be a little more difficult because we do have to break that down per unit. I I am a
little concerned about changing the graduated rate structure because the bulk there's going to be a small percentage that are going to be high volume users and like Brian said 60% of the water
revenue is coming from residential and 40% is coming from commercial. So you already have the majority being residential. Most residential, even in these super large houses, they probably aren't going to have a very high usage because a lot of these houses might have
two or three people living in them. They're just very large houses. So I think we can certainly go through that exercise. >> Yeah. But they also have a lot of landscaping to take care of. >> They do. That's typically going to be in an irrigation meter, which won't have a sewer component. So it does save them
quite a bit of money on the water bill. We can do the exercise but I think what would happen to really make an impact on the lower volume users you would have to increase it significantly on the higher volume users just based on the breakdown. >> Yeah. If I could add a 10% increase on
you know a dollar is 10% but the you know it's 10 cents versus on the $6 it's 60 cents. So by that percentage increase you are putting a majority of the increase on the on the higher end users. But let John continue >> and if if I can uh make a comment on
that. If we do put more burden on the the the uh the higher uh volumetric rates, there is a risk that there would be so much conservation that we that would significantly lower our billable water units and then we wouldn't have
enough revenue and then we would have to come back and raise the rates even more. >> Well, a lot of conservation of water isn't necessarily a bad thing. it it's not but there also there but we also have to consider that we have this a large infrastructure >> well technically then you'd have less
impact on your sewer right because >> well that would just be on the consumption side you still have the ba that's why they have the base charge the base infrastructure uh will always be there whatever the usage is but um I think John did you you had a couple more slides >> and just to that point I would also say
that a user in a condo in North Beach or Flamingo a park. If they see their water rates increased, they're likely to collectively participate in reduced consumption to a
much greater extent than a home on 15,000t home on North Bay Road or the Fountain Blue Hotel. Yeah, if I could add to that, um, as a former board member at my condominium, which is 361 units in in the beach, um, we did look
at that when I was on the board and we funded a a conservation with um, doing um, some lowflow toilets and and we as an association did fund some water conservation efforts across the whole building, you know, trying to mitigate the cost like that.
>> So, the idea that if you give an incentive for more water conservation actually works. >> Yes. And that's why the rate structure is the way it is that yeah that's taken into account but John >> okay excuse me so utility infrastructure
issues are not going away and they will worsen over time. This presentation was given about a year ago and the cost have increased since that point. future additional consent orders, fines, and associated legal expenses. One thing I want to mention, we're talking about
the potential for sanitary sewer overflows. We have an opportunity right now to start addressing these issues. If we are placed under consent order, it will be a very, very painful process.
>> And I don't say that lightly. >> Why is that? because there will be a PR side to that where you have on the front page, not really a newspaper anymore, but blasted all over Facebook what happened. And our reputation as a city,
as a destination depends on tourism and water. And nothing could be worse for our city. I I was working for the city of St. Pete in storm water when they had a 200 million gallon discharge into Tampa Bay. That was probably in 2015 and
that is still spoken about today from that spill. Fort Lauderdale had 212 milliong discharge. That is still spoken about till today. We have an opportunity today with an increase of about 50 cents
per day for single family homes to be proactive and address these issues so that we can at least say we are trying our best to maintain the reputation of the city and fix our infrastructure. So, what we're recommending right now is
adopting this proposed multi-year schedule of water, sewer, and storm water rates to basically ensure the future of the city to improve water quality. And that is the close of my presentation. I'm open to questions and
answers now. >> So, John, you you bring up some good points with um you can put the slide down, PJ. you bring up some good points with um an impending it's not if, it's when.
Well, where like where is it? You know, cuz um I mean, if we're if if there is an a pending threat of a of a break, where is it? >> That's a great question. The sanitary
sewer overflow we had at Bisgame Beach Elementary was a pipe that was installed in 1984. These pipes have an estimated life of 80 plus years. That pipe was 40 years old and it had significant corrosion due to the
environment that that pipe sits in. And that pipe was not underwater where it failed. It does go underwater. So we're doing an emergency replacement right now with an HDP running from Hawthorne to the street. in at 75th. So that prematurely failed and that same
material is what's running under every waterway in our city, not every waterway, but running under many island connections throughout the city. >> Meaning, is there a plan to address that particular type of pipe now? >> Absolutely. Absolutely. That's what's in
our CIP plan. That's how we're prioritizing these projects. a combination of storm water water quality and the most vulnerable force manses. So force manses are more vulnerable because they're pressurized. They're being pumped. We have two 30-in force manses
running. You're you're prioritizing what is in most need. Correct. Correct. Yes. >> And then as a finance member, we're we have we're tasked with prioritizing
where to spend our money. And you know, I uh I'm typically against raising rates on on the residents because every year there was a raising of rates. I mean,
you know, FPL just raised the rates on us. Um almost almost every aspect of government is raising the rates on the residents and it's just it's really starting to squeeze out a lot of people. But where I'm getting at with this is and why I
asked the question earlier is if we have a particular project that is in need, why are we asking the residents to pay more to fix something when we have money elsewhere that could be dedicated and
prioritized to pay a particular project that has an impending infrastructure failure. Meaning like look, we we have a billion dollar budget, right? or or 600 million in in operating. I'm sure there is plenty of things that
we can cut back on to pay for the delta of what this would have paid for of this increase because at the end of the day, residents are still going to pay. They're just going to pay more. But can we find funding from something else that
is more of a luxury and pay this toward this project instead? So we have almost a billion dollar operating budget within the city operating NCIP I think and we've got almost a billion dollars in water sewer
needs. So you can see we we can't cut 100% of the budget in the city and dedicate it totally to water and sewer. >> No, but what I'm saying is the the you know, you're asking the residents, you're asking us to pass rate increases
where it would increase the delta a certain amount. >> Mhm. >> For per for every year. And what I'm saying is can we and this is more of a question for us. Can we find funding from other sources that are more of a
luxury? And you know, it's it's a hard it's a hard, you know, question to ask all of us to to pay for some of these capital improvement projects that are are obviously they need attention cuz I
certainly don't want to see any, you know, water sewer breaks in the Biscane Bay like happened in Fort Lauderdale. But, you know, I I want to I I want to have a sort of a zero sum game of look,
you know, maybe we have to cut back on something else to pay for the delta of what this is. That way, the residents aren't paying extra in rates uh every year. >> But I feel if we do that, and I get it, I hear you. If we do that, then in two
or three years, we're at the same point because we never raised the rates um to be where they should be. >> That's a good point. But maybe we can raise it where it's not as dramatic over the course of how many years is
this? >> Six year. >> Six years. >> I think it was the >> Yeah. So what I'm saying is maybe we we raise its CPI from here on out and then whatever the delta is for that six years increase
we'll have to you know roll up our sleeves and find out what can we cut to pay for that delta 6-year increase so that we're caught up and then we can catch up with CPI right now. I I completely agree with that. But you know and again that's not an that's a policy
decision and that's something that you know we as a as a as as a body really have to decide if that's what we want to do. Um, and if we do, then, you know, maybe that's a longer discussion obviously for
maybe staff can bring us some proposals of of what we can, you know, hopefully accomplish. >> Yeah. Go ahead. I was just going to say I'm happy to move this item as is for full discussion at the commission to break it down and um see. >> Yeah, that did dawn on me a few minutes
ago after John was already quite well into it. I go we're likely going to have to repeat this entire discussion at the commission. Everybody's going to want to chime in. But Commissioner Suarez, I'm completely conceptually aligned with you. Given this is an enterprise fund, I
think it's kind of a two-step process and it's very much aligned with what we've been doing for the past two years accelerated last year where we cut in this bucket, right? And it it may be partially offset with some much
needed increases in this enterprise fund. Um, but I don't know if those two things go in tandem because where I get hesitant and I've spent my whole life looking at enterprise funds. I know how exciting that sounds. Um,
is you don't want to become reliant on always getting that subsidy from the general fund. These should be self- sustaining. So it may not be something that could be directly linked, but if we know, okay, the enterprise fund is applying this
increase that's going to hit our residents, then we need to be even more proactive in reducing our um our general operating budget because to residents, it's a zero sum game, right? It comes from somewhere. They don't care what
line item is taxed. But I don't want to get into a situation where our general fund is subsidizing because we don't uh raise rates to the adequate amount here. It should be okay. If we know residents are getting hit for an extra 12 bucks a
month here, we need to save them $12 a month in this bucket. >> Yeah. I think I think where maybe I'm unclear on is what staff is recommending is to fund a project that is a CIP
project. It's not necessarily um your your the taxes or rates that you would pay for just your normal everyday utilities. This is above and beyond that. And what I'm saying is really the general fund should be taking care of
that because that's a responsibility of government with the money that we take in to prioritize what projects need to be spent on. So if there are if there's infrastructure and failing pipes that are only half the span of their life,
that shouldn't come out of the water and sewer rates. And we should I don't think that we should be raising rates to fix something like that. I think that should come out of a special fund, perhaps a general fund, and where we all have to have the uncomfortable discussion to say, "Okay, these pipes are starting to
fail half year into their lifespan. We're going to have to cut funding from from this to pay this or we raise taxes." You know, that's because, you know, that that like I said, this is a this is a it's a policy call. And so, you know, I I don't think raising rates
to fix capital improvement projects is is the right thing. Now, look, have we not increased the rates proportionally? I get it. I'm okay with, you know, CPI increases moving forward. I've said that. Um, but, you know, taking into consideration all the rate increases
for everything that's, you know, HOA fees, insurance, um, FPL, now it's it's coming all at once. And if you're just an average day person on Miami Beach, uh, you know, this is just another rate increase. So,
I would rather not raise rates and find out, you know, find areas that we may not we it's nice to have, but it's also nice to have clean waterways. And that's a priority
that I think should be um given first than than anything else. So >> how do other cities do it? >> So every other utility funds their CIP related to water and sewer through the water sewer enterprise fund and storm
water fund. So it is typical because when you think of it as a business, we're providing our service. So what is required to provide that service? Just like FPNL is installing new transmission lines across the city, we as rateayers
to FPNL are paying for that work. and that's why they raise very almost exactly the same situation. So it is the industry standard and my concern is that our future efforts to go
out for bond issuances could be affected as our credit credit rating could be reduced because we're supplementing and we're not a financially self- sustaining utility. If I can add to that, I think as Sergio had mentioned earlier, obviously we would have concern with that that approach um and the markets
would definitely have concern with that approach. And just to note um on the neighborhood improvement projects which are approved by commission and we have I think several resolutions directing uh them to be completed and move forward post haste specifically Northshore D West Avenue and First Street. Um those
do have a general fund funded uh component to it. the uh I believe it's 10% for the above ground restoration um is committed u or programmed to come from uh general fund or capital dollars in that area. But the water se storm
water components they are technically not you know from the tax perspective they are they're a user fee uh you know just like your electricity bill >> it's a residence it's all the same thing right I mean that's just money coming out of a pocket so I mean I you know however you want to call it
it's still money coming out right >> right but I guess that's what I'm saying is if we know that residents you this will be a charge from this bucket then It's incumbent on us to reduce if we want to keep things flat our general
operating budget reduce that by essentially an offsetting amount which I think we're essentially have a goal to do >> with with the with the roll back rate. Yeah. I mean, >> and that would actually be counter to
what we're talking about as far as the higher usage customers paying more. Then it's almost like everybody, every resident's paying the same. So, our rate structure is based on usage. So, it would, you know, if you're using more, you're paying more into the system. So,
>> John, let's move this along the commission for a full discussion. What I'd like you and your team to come back with is a more progressive taring for usage, right? And perhaps I think that uh additional bucket kicked in at what
8,000 >> gallons, I believe. Yeah. >> So, what we will what we will do is we will look at average usage throughout the city. I think we can do that uh through the water billing program >> and maybe redo those charts according to
what the average usage is. >> What I'll probably do is come back with a change to the progressive rate structure, but also come with our recommended as well because I think we might find that the progressive structure really is going to help the
lower usage customers as as much as we're thinking. So I just want I want to see the options. >> Yep. Yes, sir. >> All right. I think Commissioner Dominguez had was making a motion to return this to commission second >> with a favorable recommendation to approve obviously to discuss the utility
rate ordinance was presented. So, this would come back as a uh the ordinance directly and then we'll discuss it at the ordinance level. Yeah. So, Commissioner Dominguez uh made the motion. Commissioner Suarez seconded. Uh all in favor? >> I thank you. MB14. and colleagues, we do
have um if you have this agenda, some items in red that'll fall off if we don't hear today. Do we have any priorities that people want to hear of those? Um and Jason, maybe even as a workaround. >> Yep.
>> Yeah, I could if you want. Um I could mention those that have at the six month or beyond uh MB6. Yeah. >> On CFO, maybe for NB12. Can we just open that and agree to hear that in two
months time just so it doesn't fall off? >> What we can do in in reading the the rules that were provided by the the commission, there's a a onetime deferral request that can be uh done and I don't think that that's been utilized. So we could do the onetime deferral request. >> Do that for NB12. >> NB12 will show it deferred and to be
heard in June, I believe, is what I was hearing. >> Why are we not going to hear that? >> The red. >> Yeah, >> Joe, huh? >> Why are we not hearing that? I I just don't know where we're going to go with it. I'd want it. I just I don't know funding. Um >> let's hear it real quick. >> The Muscle Beach.
>> Yeah. >> I mean, let's just get an update on what is it going to cost. >> Okay. >> Cuz I got some ideas that we can probably get outside funding for. >> Okay. Let me read in. We won't be deferring. We'll be hearing now. MB12 discussed establishing a muscle beach in
North Beach considering the widely recognized positive impact on health community and quality of life observed at Muscle Beach in South Beach with sponsorship support to offset project cost and reduce financial impact to the city MB12. >> Good morning. Cindy Kasanova, assistant
director parks facilities fleet and beaches. Um this item is to discuss establishing a muscle beach in North Beach and alto park be similar in nature to the one that we currently have muscle beach south beach in Lumis Park. This item was previously heard here at FK uh
where it received a favorable recommendation. It was moved to the city commission to include as um funding for the fiscal year 26 budget process. Ultimately, it was included in our um budget presentation, but it wasn't um included as a project for this fiscal
year. Um we are including it again as part of our request for fiscal year 27. And just as a refresher, the funding needed for the project when we first ran these numbers was $300,000 um to kind of get a replica of what we have existing at Muscle Beach South
Beach. Um we were able to include as part of the package um the vendor that we work with which was My Equilibria at Muscle Beach South Beach came back with um a lot of discounts off of the price of the um the furnishings for the equipment. So and on top of that we
incorporated um 100 I think it was $100,000 from the GMCVB that could go toward um this project. So we're looking at an overall cost of 300,000 if we wanted to move forward with this project. I just threw the chair. I I just Why is it so much? Because, you
know, the the one in South Beach just has a couple containers, some some equipment, um used equipment. And I actually, you know, our local gym, uh, the the CrossFit, they got all brand new stuff
from Techno Gym and they were selling their equipment and it was only like 3,000 bucks. And I called Eric and I'm like, "Hey, look, this is a steal. You should you should definitely get this." And it's all in pretty good condition. I mean, and that was like thousands and thousands of pounds of weight. I think
there was like 30 bars. um and all the weight that you could need for to at least start that gym. And I can't imagine those those work containers costing more than 30 $40,000 a piece. Granted, you're not going to
have cool structure, but that can come later. I mean, I don't see why this would cost no more than 100 grand. So, when we originally got these quotes, it was to base it off of basically a replica of what exists at Muscle Beach,
South Beach, which is the it's super high-end, it's iconic, it's world class, it's we worked with the Italian designers to, you know, put what we put in Muscle Beach in South Beach. So, we based it off of that to give the North Beach pretty much the same. >> No, I get it. We we don't we don't want
to I'm not trying to cut North Beach short, but >> I don't also want to >> delay this because they don't have a cool structure. I think at the end of the day, people just want to work out on the beach >> and we have plenty of equipment apparently and all the thing only thing
we're missing is just a couple containers. >> Is that equipment still for sale? >> No, we we bought it. >> Oh, I was going to ask you if you want to split it. >> No, actually Well, I actually took some for myself, but But, you know, no, Eric got probably a
bunch of equipment. Enough for enough for a gym to start. >> Okay. >> And I don't think there's any cost whatsoever right now for equipment other than the container and perhaps, you know, building on the container, uh, pull-up racks and and bench racks, but
that that can't be more than maybe $20,000 um, in a cost. And like I said, I'm I'm just saying I I think with two containers and the fact that we have the equipment, I think we can definitely get by with $100,000. And
in the future, if we want to fund like a cool sculpture, we can certainly do that. But I think the people of North Beach just want to have a cool gym to work out and not necessarily something to look at. >> I I hear you. Um, just so for clarification, the I think the containers that you're referring to are
the Beaver Fit lockers and two Beaver Fit lockers are $175,000 just for two. So, if you split that in half, you'll know what the cost for one would be. And we were proposing two as part of this project. >> They're called what? >> Beaver Fits. Beaver Fit lockers. >> These are the ones that we have down in
South Point. >> Uh, that we have at Muscle Beach. Yeah, South Beach. >> Beaver. >> I got to get into the business of selling to government. I I mean they're just they're storage lockers, right? >> They're Well, they No, they come contained with weights, with the bars,
with everything. They're not just the container. It's everything that goes into the container as well. >> But I guess we have part of the equipment now is what >> I mean, I'm looking right here. I see it says beaver fit boxes such as tactical gym boxes generally start around 3600 to
4,900 to fully equipped. smaller configurations. Larger units like the Beyond trailer start at roughly $32,000. Price depends on configurations obviously, but I mean that says it's 32,000, not $175.
>> Again, the container, if you want all the accuchamons that come in the container with the weights, the bars and whatnot, that's where the prices start going up. >> We already have all the weights and the bars. >> If if we have it that we can c if we have all that, we can certainly take a look at that. >> Is John Where's Mr. Norris? Is he here?
John here? Not John. Uh rebar. Okay. Yeah, he has it. Um in fact, we had we had there was so much given that I think even the fire department took some because there was so much to give away. But I mean, if I'm looking at this, it says it's 32,000 and that's
coming from their from their website, not 175,000. So, and by the way, you know, we can also just buy a regular um shipping box or a container and then
retrofit, you know, where to put the the bars and the uh equipment. I don't think it has to be, you know, get out of the box. We can certainly have someone just weld that in there. >> Let us come back. Can can we just take
some time to go through what we have um whatever it the equipment is that you're referring to that was donated and let us take another stab at it. >> And also just also pivoting here I'm I'm sure there are companies out there >> such as like Rogue or even you know Techno Gym started getting into sort of
this functional uh fitness where they might just be give it for free. So, for example, you know, the the CrossFit that I mentioned, they got away they they sold all their stuff and Techno Gym came in and gave it gave
$900,000 of of equipment for free to their gym just because they wanted to get into the space and and sort of have this brand recognition of their new line. Can we possibly go to a couple of these
vend uh these these brands and ask, hey, are you willing to have, you know, your equipment here be the premier equipment and um you can have branding around it. Um and as long as you, you know, fully,
you know, build it out for us. >> Absolutely. >> Through the chair. >> Yeah, please. Commissioner. So, Commissioner, that was the item that we voted on last commission meeting about naming rights and sponsorships. That was exactly my intention to do. So, I hope we do explore more of these
opportunities because there are a lot of brands that want to market to our residents, our v visitors in our spaces. And it's good brands. It's good marketing for them. >> And by the way, it's not like an alcohol brand, right? Like a tobacco and >> it's fitness. It's wellness. And it's a win-win for everyone. It's a win-win for
the brand. It's a win-win for us. It just it works. And that was exactly the intent behind my item and I'm I'm grateful that we all supported it too. So let's you know please it's a perfect project >> because at the end of the day the equipment if what if we buy the equipment new the the brand is going to be on there anyways right? So we might
as well just you know if they have if they want to put their like logo on the container and they fund everything for it. I'm okay with that. I think the residents would be totally okay with that too. So >> guessing playboy is off the table. Um, but it could also even be if
somebody's allowed to open a small coffee shop like out there, you know, in the in the park or something like that and then in turn they pay for it. Yeah. Who I'm open to ideas. >> Yeah. Yeah. I just I I don't want to delay any further on on giving North
Beach um a cool outdoor gym because I mean I go to that South Beach gym all the time with my family and it's a great it's a great meetup spot. I mean people from all over the world go to these places just to take selfies there. I mean, I don't think the only the only place that does this is California.
Where what beach is that? Venice Beach. Yeah. I mean, if we can have another one here in Miami Beach, it's awesome. >> Yeah. If you give us another month, a month or two to rework this and we'll come back with something else. >> So, we could show this item uh this item was heard and the return to FK with
additional options with sponsorship opportunities when appropriate. >> Yeah. Okay. Thanks. Awesome. Appreciate you uh accelerating us hearing that. Um let's hear uh OB4 and Commissioner Matos
Selenus. Uh how about the future one? Are we not able to hear that or we are? >> Yeah. >> Okay. >> Thank you. >> So O will hear OB4 next. Yep. OB4 discuss the placement of additional or improved wayfinding that could direct
guests, customers, residents from the Miami Beach Convention Center to Lincoln Road Mall. OB4, >> welcome team. >> Good morning. So, this item was to basically bring wayfinding from the convention center and convention center
hotel to Lincoln Road. And there's been quite a lot of activity including the 17th Street garage rep uh which our friends uh completed and it looks great. And Lette has brought some other ideas
from other projects that are going around the city that might complement this item. So, >> thank you, John. Good afternoon, commissioners. Um, yeah, wayfinding is not our thing, but the request was to do an artistic uh wayfinding sign. And there's so many things that are
happening right now which are exciting in the city center >> uh including conversations with the bass and they're doing a sculpture park that will inform connect to Collins uh canal uh park that also has sculptures to the botanical gardens that would lead folks
to the convention center back and forth at the same time. You know there's a lot of activity happening on Lincoln Road. Uh there has been a plan in the past, James Cornerfield. Uh there is an item to do a permanent mural at the 17th Street garage. Right now we have it wrapped with sports activations.
>> It's incredible. >> Uh there's also, you know, then the wayfinding sign, but we have there's no sidewalk there right now. There's a construction project. We have also spoken to Tara and Turnberry. And in your package, you'll see that there's a couple of examples of where we can go to
tie everything in because the more you know, you talk about it and you can see that there is cohesiveness with different projects that are happening in the city that could really uh provide uh wayfinding from Lincoln Road all the way to Collins Park and and those are some
where we're at right now. So, we're still working on it. There's nothing now, but we are sharing with you two options. Uh there's a James Cornerfield um plan that shows some traditional wayfinding signs that reference the
piano keys that everyone knows. Lincoln, >> do you have a visual of anything? >> I available not sure, but it's in your package. I didn't share this one. And then there's our uh Terra and Turnberry for the Miami Beach Convention Center
Hotel shared some examples of how you can be creative with wayfinding signs. And so those are there. So we could do a combination. Uh we feel that tying in, you know, maybe the piano keys, but having some type of visual recognition
to engage pedestrian connectivity between all these different corridors would be the way to go. Um than just, you know, going further than what the item is asking for. That's asking for one monumental piece. We're trying to tie in all these different things together.
Okay. So, I see the James >> Cornerfield or the black and white >> field sign >> and then the other one has examples of what Terra and Turnberry uh local um firm. >> So, I mean, let's listen, this is just my idea. Maybe we'll sit down just
together. Um, this isn't necessarily how I was thinking about it for somebody walking out the convention center to be like, oh, Pennsylvania Avenue is this way, right? It's more like a wow, like, oh, that's really
cool. Um, >> understood. But we feel all these things aesthetically have to complement each other, right? So once the hotel is ready, once we have a design, we also have to do a permanent mural or some type of thing that will guide folks to
cross the street to James. Uh in the James Corner feal plan, there's also a Lincoln Road sign that was cut from the budget. I know that we have a representative here from Lincoln Road, but there's multiple parties. We'd love to sit down with you. We did sit down with your ape, but we'd love to have a chance to talk to you, walk this dog
with you, how they say. >> Yeah, let's do that. Um, maybe sign is like the wrong word. I'm sending the wrong message. An artistic piece leading into Lincoln Road.
>> Understood. Um, I there is still also the artwork that's going to be in the portier of the hotel that is going to be a monumental piece by the Hos brothers. Uh, it's the entire port cashier of the hotel. So once like I'm the way and I'm speaking for myself I guess the way I'm
envisioning is once the hotel is ready and it's beautiful we want to then add elements to enhance that not clash. So that's kind of like what we're waiting on and we have been engaging with all the different stakeholders that I mentioned to help inform this project. >> Okay. Uh let's meet before uh we'll just
kind of keep this here Mr. CFO um and we'll sit down and meet. I appreciate it. >> Thank you. >> So we'll just have the item heard and to return. Yeah. >> Um, Mr. Chair, uh, for the last item, the Muscle Beach one, I asked to be a
co-sponsor >> on that if you >> So, do I have discretion on that, Mr. CFO? >> Actually, what I'd like to, if you're possible, I'd like to be a be a prime sponsor with you because I'm going to I'm going to try to work with Techno Gym
to get this gym fully funded. Um, it's up to you. >> I'll co-sponsor. I just think it would probably be more impactful if Techno Gym heard from the fitness commissioner. Uh >> fitness commissioners don't don't place last in in a competition. So
>> yeah. Well, you know, when you load the deck where your partner is from the SWAT team that trains the new sniper academy students, it's uh >> but sure, you know, you do you, bro. Um >> so if I can, I believe Commissioner Suarez will be co-prime and Commissioner
Matos has asked to be co-sponsor. So, we'll show that. >> Okay, >> perfect. >> Commissioner Mateo Selenus, uh, which item was it? Uh, you like to >> So, actually, I was um advised by um staff that they're not ready to hear
this. It was um >> You want to be You want to be a prime? >> Sure. Yeah, >> Monica wants to be a prime too on the Yeah, >> Monica wants to be prime too on the uh >> show commission. >> I will give her a shout out. She was an incredible partner at the Wood of Palooa and had a lot of fun and getting out
there. You did amazing, Monica. >> Thanks. It was It was fun. And thank you for carrying the weight of our team because I >> I didn't hear the weight of the team. >> It's amazing that she uh >> pun intended. >> She complained a lot less than than you, Mr. Chair, at the event. >> I had fun.
>> If she had a great time >> pulling out your short shorts is complaining, then color me guilty. We'll show for the record we'll show MB12 to have three co co-primes. Thank you. >> North Beach deserves a gem. So >> how about NB9?
>> You want to hear that for the lighting at the Second Street dog park? >> Sure. >> Uh MB9 discussions on installation of enhanced lighting at the dog park located at 2011 Street. MB9. >> Le it's the it's the turf the pen.
>> Hi Cindy. >> Hi. >> Good afternoon. >> All right. So, this item was uh talked about I think it was a dual referral to neighborhoods and we talked about it briefly there and the idea was just to put some wrap lighting on the trees um because that dog park is quite dark and
you know in at night when you go it can be intimidating cuz it's a large dog park and when you walk in you can't really see who's sitting in the back so it's scary. Um, and you know, again, in the winter months, it gets dark at 6:00, 6:30, 7, excuse me. And people want to be able to use a dog park when they get
out of work. So, Cindy, I'd love to hear what you have to say about wrapping the trees. A tree or two. I mean, nothing. It doesn't have to be the full, you know, but just a tree or two to create some lighting in the back there so it seems a bit safer. >> Okay. Thank you for the tea up. Uh, Cindy Kasanova, assistant director, parks, facilities, fleet, and beaches.
Yes, you are correct. This um item was originally heard here um in February and um you asked us to come back, sharpen our pencil, see if we could come back with a cheaper um cost-effective option. So what we did was we worked with our
with our vendor and what we have before you is a proposal to wrap do tree um wrap lights on 11 of the trees in the dog park. Um and total allin wrapping the trees, the installation for the infrastructure to power the lights. Um
we're looking at a total cost of 75,630 bucks. Um if we get a favorable recommendation today, we will add it to our 5-year CIP plan and we'll move it through um as part of the budget process for fiscal year 27. >> Is is this going to is it going to wrap similar to like how the lights on
Meridian are left? >> Correct. >> What color? >> Uh it would be that same white um color. >> Want to do amber? >> Sure. >> I I mean the amber is so much nicer. >> It's softer. It sways off because I think the lights I think the other
lights there are amber already. So it would kind of be off place if it's just like a a very high temperature white. >> Yeah. >> Yeah. >> I'm fine with that. And also you said 11 trees, Cindy. >> 11. >> You know, >> so nice. >> It it will look nice, but I'm fine with
reducing that to a little bit less just to save some cost, which I know that we're all, you know, very aware of. So, you know, >> palm trees. Sorry. >> No, no, >> they're variety of different trees. I I will say this is the only dog park that
is not within a park proper. It's its own separate space. I mean, the other dog parks that we have don't necessarily have um lighting within the dog parks and they're lit by ambient lights, which is the acorn lights or spill over from our sports lights. So, I mean, we can do 11, we could do five, we could do split
the baby and do half. I mean, it's fine. >> Yeah, cuz I'm I'm looking on here. There's basically three main trees here. There's one to the east, to the west, and to the north. And and that one to the on the southwest
corner is a big one if I remember correctly. >> Um that one and the one on the southeast corner is also fairly large. And then there's I think it's an oak tree on the north. I mean, I think just those three trees need to be lit up. I don't think
we need to lit light up any I don't see any palm trees here, but the smaller trees I don't think need to be lit up as much. And sometimes less is more, you know. I think be uh and I think you're going to have the intent of of what
you're trying to do, which is more for, you know, visibility. >> Okay. So, we'll look at amber color for the lights and we'll look at the three bigger trees in in the in the park. >> And Cindy, I'm happy to do a site visit with you. We can go over there. um doesn't have to be at night, but we can just maybe identify and because fair
point, but I just want to make sure that back area is lit because that's where it gets scary when you can't see to the back of the park. But we we can just do a site visit and figure this out. >> Thank you. >> That's good. And what would also help with safety is
it'll look beautiful next to uh the abandoned hostel that the HPB would like us to keep instead of actually having uh amenities for schools. That that's that's just great for the neighborhood. >> I say that in disgust.
>> Okay. >> If I can just to to land it here um because Whimby Capital would be operating on this cost. So, um, would this be through the budget process? Is this to be added as an enhancement or to be a budget priority as a budget enhancement? I would just need to know from the committee
>> for the public. What is what's the difference? >> Well, we try we do we do our best uh when there are available dollars to fund a budget priority. It just kind of gives us a little more emphasis to trying to fund that item. Uh, because as of right now, the budget enhancement doesn't even exist. So the first step would be is if
we said we're okay with it being a budget enhancement to be considered the budget process or do you want to be a budget priority budget enhancement? Kind of gives a little bit more uh weight. >> Well, I think I I mean I want to see the lights there. I would I think the people
there would love to see the lights. Um >> I mean it's up to sponsor. >> Yeah, I'd like it to be a budget priority as well. Um, and I I'll try, you know, I think we can reduce the cost to even make it even more, you know, moderate. So, yeah, a budget priority, Jason.
>> Okay. So, we would show as a return commissioner with favor recommendation to fund lighting at the at the 2011 street dog park uh as a budget priority as part of the 27 budget process. And I need a member to make the motion and second. >> I'll move it. >> Commissioner Suarez, second. >> I'll second.
>> All in favor? I. >> Item passes three nothing. Thank you. >> Thank you. And >> I'm gonna hear NB10. Um, it is from Commissioner Fernandez. I don't know if
he's out there in the abyss somewhere. I typically wouldn't hear your item without you here, but we do have members of the public and I think we're all very much aligned uh with this. I guess for the obvious question, it seems like we're moving towards this at each of the parks, right? I know >> it started at Bell Isle, very
successful, >> and I know you were an instrumental part in that, Commissioner Demez. I love that we've done it at Five Park. >> Uh, is this something that we should be thinking about implementing from just the onset for some of our new parks? Because Five Park's relatively new,
Murray Skate Park is new, and now we're kind of changing. Should I think we even have an uh, and I know you're yelling at me because we didn't introduce it. you can introduce a little I feel the pressure um I I see your anxiety uh beayhore park
even but should we think about having a policy if this is the direction we're moving that this is just how uh dog parks are completed from the beginning Mr. see if I'll allow you to introduce. >> Thank you. Two. So, it was Yes, I will introduce the other is um the commissioner, yes, I know was not able
to be present and he did uh email some a few that he wanted deferred and this wasn't one of the ones he mentioned. So, I assume that it was obviously he was okay with that. Um but MB10 discussed changing the surface uh to artificial grass at the dog park located at South Point Park as recommended the park by the parks and recreation facilities
advisory board LTC 542-2025 and to also discuss changing the surface of artificial grass at the dog park located at Maurice Gibb Park for the same reasons including reducing maintenance frequency and associated costs and B10.
Good morning. Cindy Kasanova assistant director parks, facilities, fleet, and beaches. Um, chair, to your point, yes. Um, there is actually a companion item that is in um committee or is will be heard at committee soon to look at changing the surface at Allison Park at
the dog park over at Allison Park to artificial grass and the um the green space on I think it's ruendome biritz and breast esplan too. So yes, there is a motion now to move forward to have more of these dog parks converted to artificial grass, but for the sake of
this item, this is to discuss changing the surface over at the South Point Park dog park and the Marie Skip uh dog park to artificial turf. As you all are aware, dog parks are one of our highest um utilized amenities in our park system. They get a lot of wear and tear.
Um and with natural sod comes, you know, the unintended consequences of having sod. you have to shut it down for periods of time because it needs to you need to recede, you need to resod. There's a lot of maintenance costs um in trying to upkeep natural sod. So, we're
aligned in moving forward with um moving toward artificial turf. We've seen the success of it at Bell Isle Park, also at Canopy Park. Um, so when we looked at these two projects, what we're looking at for the replacement of the turf at South Point Park, we're looking at an overall cost of $23,000
and we're looking at a cost to replace the turf at Maurice Gibb Park. Um, it's a little over $151,000. Um, >> this is the small open unfenced dog park, >> correct? >> And it's 200 What's the lifespan on it? >> I'm sorry.
>> What's the lifespan or what's >> on artificial turf? >> Yeah. >> Oh, quite some time. Um and our on andm costs once you have it in place um it's minimal. It's maybe about 4,000 5,000 a year. >> So the only and I I should have raised this before but and I'm fully
supportive. I think this is a great idea because you know what happens is you you have to wait like almost two weeks for the the replacement of grass. Um, but the artificial turf itself, is there a material that we can use that
doesn't I guess come off because, you know, dogs like to scratch the floor and that's plastic and it could end up in the waterway. So, what do we is is there a material that is, I guess, environmentally friendly that we can opt in for? >> I think what we have um I think what we
have currently meets that criteria. Um, I'll use the Bell Park uh dog parks uh as an example. Um, so it is the artificial turf and underneath the turf system, um, there's an actual irrigation and a sanitization system. So, not only does it, you know, clean itself, you
know, periodically at night, um, but the actual material itself doesn't doesn't have those granules that you're thinking of like when you look at an artificial turf for the soccer field or a football field. So, I think we accomplished that with what we're proposing um, with these changeovers.
Okay. So, there is a certain standard for uh next to marine >> waterways. We can look at that with the vendor. I don't know specifically if there's, you know, I I believe so, but we'll check with the vendor that we've been working with to make sure that that's not an issue. >> Okay. Yeah. Because I don't want to, you
know, I don't want to see residents complain like, "Oh, well, now you're just putting plastic into the into the waterway." Understood. So they they actually there it's it's it's it cleans itself. >> Yeah. There's a like it's a underground
system that shoots up and sanitizes the the dog park. Cleans >> it's not just So it's not just you're laying on uh turf. It's there's there's there's infrastructure. Okay. Cool. >> Great. >> Well, I'll move the item. I'll second
>> if I if I can ask just because these would be two separate capital projects for these two locations. Um as we often talk about with the capital projects and we did this with um I say pickle ball courts was as of right now they're not part of our capital program. Uh so would
the motion be to add it to our capital program which would be as typical to be added into our our fifth year as we add new as we typically add uh capital projects or is this the move to the front of the line and to be a budget priority as part of the 27 uh program
>> whether it's a priority or not. Let's at least hear it as part of this year's budget process. >> All right. So we'll show it. I I don't think we have to get overly uh deep on labeling things a priority or not. At the end of the year, we're going
to have a smorgus board of items >> and we're going to say >> whatever. It doesn't matter what was a priority in March versus, you know, when we go through the budget, we'll say we have 50 projects, we have funding for 10 and doesn't matter what was a priority and what's not. >> Okay. So, we'll show this to return the
commission with a favorable recommendation to fund uh uh capital projects uh for the installation of artificial grass at dog parks as presented as part of the 27 budget process. Who's making that motion? >> I believe Commissioner Suarez did and Commissioner Dominguez seconded. >> Okay. All in favor?
>> I passes three nothing. Thank you, >> Sarah. I know that the parks department wanted to put the the astroturf in Maurice G, but we could not do it because we had the permits and everything that was going on. They didn't want to put change
orders at that time and still we still have the Durham issue that is a one year now in April once it's closed then able to do other projects in the park. But I know that that was the total intent to have that because we requested and the one in Bell Island is great. I visit it.
I visited with the dogs. They and it's been there for a while. There's no holes or anything and it keeps very very clean. It's actually will be really great. It would be something adopted for all the parks would be >> maybe we could have some live DJ performances out there. >> Yeah.
>> Even though I have cats, I go there. >> Thank you, Sarah, as always. Um, okay. So, we'll see that closed out. Let's do uh NB13 staying on the the cats and dogs theme. >> Sure. MB13 discuss and take action regarding the
potential creation of a program for Miami Beach residents to adopt cats and dogs from Miami Beach shelters where adopes can be reimbursed or provided vouchers for certain veterinarian bills and food for the first year MB13. So, um I think you know we did this
program and I actually took it out of of a fund from my offices um expenses and I I I don't have a problem just utilizing that fund as as um as a as a
means to fund this project. So, you don't have to >> Yeah, it's a actually great point. So, we do have uh like our office expense fund, right? And part of that could be I think it was Commissioner Rosen Gonzalez's initiative where it was like
for continued training or conferences. Maybe we could think about using that for like public benefit projects around town instead of flying to Switzerland for our basel. You know, I'd rather put it towards Muscle Beach and you know, some sort of >> I did that last year. So, well, I went
to Art Basel, but I paid for it myself. Oh no, I didn't. >> But um I spent $1,500 for Federation Towers to have bingo last year and I took it from that account and I also did um an event for the fan appreciation event for the sanitation department and it came out of that account.
>> Yeah, that seems like a cool idea, right? >> And that >> and that's what I did for the last pet adoption we did. Um and Maurice Gibb only unfortunately only one dog got adopted but you know it is what it is. Yeah. I know it was it was one dog was by my aid,
Valentina. Um but yeah, I I don't need to I'm not I don't want to raise taxes or or fund this. I'll just use it for my own office that gets money and um you know, anyone else who wants to kind of it's it's it's not I I it's not very unfortunately it's
very hard to get people to adopt dogs. Um so I don't really think it's going to sort of break the bank. >> Okay. So, we can just share the item. >> No, I I have a comment. I'm sorry, Jason. Real quick. Um, yet again, I want to point out that this is another great one of my that idea that I had of that item. Why aren't we reaching out to
Chewy to say, "Hey, Chewy Dog Food, you know, they're a pet supply or Petco. Do you want to do this event in Miami Beach?" And again, it's a win-win. It's marketing for them. It helps, you know, and I and I wish and I hate to suggest that we hire someone to do this, but,
you know, this is a great marketing campaign where we can have all these, you know, partnerships, these corporate partnerships where we're, you know, getting them to invest in our city and our programs and our, you know, in whatever way. And it's always win-win. So, there's just so many opportunities
here. And I just want to reiterate that. two two P's and a pod commissioner because um totally to totally agree with you u the way I structured the the the one event that happened at Murray's GI I think you were also there >> is that I had Royal Vet match
>> um on a 3 to one or 3:2 basis. So, for every um $2 that I matched from my office's fund, they would match $3 of veterary care up to I believe it was like $500. And so what happens, you
know, um our our local vet took part. They're willing to give I think uh you know, up to $500 in veterary care as a voucher. And um you know, they they cover they match some of the costs for it. So, it's a great idea. I love the idea for
>> Yeah, it's perfect. Um, and there's national brands that we can use as well as our local veterinarians and and stuff like that. But, but I'm The missing piece here though is that we don't have a point person on city staff where we're like, you know, you go to them and you say, "Hey, I want to do this. Can you
reach out to Chewy?" And they negotiate that. We don't have that yet, but that is what I was hoping that my item would do. And I I've unders I've spoken with Melissa Berier about some ways, you know, because then, you know, do we hire a consultant that takes a fee out of
whatever we broker or do we have someone on staff? So, it's very complicated and I've been speaking with Melissa about it a little bit, but I think I want to do more of these >> almost like a brand liaison, >> right, for a partnership, a corporate partnership manager or, you know, but I mean, we could really generate some
revenue for us if we do this with multiple different events and, you know, marketing opportunities. And then, you know, again, what if Chewy what if we were able to work out something with Chewy where they said, you know what, we're going to give you $50,000 to reurf all of our dog park or whatever. I don't know the number. And you know, we just
want to have a sign that says this park was brought to you by Chewy. I don't know. >> Yeah. Or Barkbox. Yeah. >> Yeah. Or any of them. I mean, you know, Petco. >> So, how do we start that? >> Well, we do have the CAT program with the CAT program coordinator. That's not a staff member.
>> We don't want to talk about the cats. >> And I I will say I saw in the memo uh Commissioner Suarez, your suggestion to take the storage container from the cat ladies for Muscle Beach. I'm adamantly against that. I support our cat ladies. Apparently, you do not, but I just want
to have that on record. >> Uh, Commissioner, uh, I'm sorry. Uh, assistant city manager Maria, uh, do you want to let us know who the point person is for sponsorships? I know you wear a lot of hats.
um for sponsorships. Well, I mean uh we have a lot of sponsorships through our economic development department and we also have them through tourism and culture, but I think this um this uh for
Chewy you mean? Um >> just in general >> and and and communications also gets involved sometimes in these things. But >> um I would have to think about this one. Um maybe it would be more economic
development. Someone's texting me. Uh um e either economic development or marketing. >> Okay. >> Um >> yeah, maybe. Uh >> yeah, like even even though even though item with the lighting of the dog park maybe. >> Yeah, the dog park is parks usually uh is involved with the dog parks. We would
have to kind of think where this would appropriately >> and if I >> There she is. I mean, >> I saw her outside, so I knew she was going to jump in. >> I just like where Commissioner Matteo Selenus is going. Let's The knee-jerk reaction is to just, you know, let's let's tax and have the residents pay for
anything. But I'm sure there's, you know, situations out there where other companies are more than willing to, you know, maybe have a little plaque that says brought to you by, you know, Chewy or Bark Box. >> And um I think they they would love that.
opportunity at least. What What do you want to say, Melissa? >> Definitely. Sorry. Uh yeah, I am going to be meeting with the city manager, economic development department. Um and it depends on the location because I know there's some areas like parks for example that I believe are exempt. Um but we'll look into that and we're going
to be meeting shortly. maybe like in the beginning of the park maybe when they before they even get >> if I may through the chair there there are also probably some legal considerations in terms of who can do what whether commissioners should be reaching out whether it should be through the city what direction so I' I'd like to and uh this came up in
connection with the the techno gym item as well I want to have my staff look into uh the the appropriate legal mechanisms to do any of these sponsorships >> thank you and all I ask is that you know as you explore this with the city manager, just a point person, one point
person. So that way, you know, it all funnels through that person, whether it's tourism or economic development or marketing or parks or wherever. But that way, you know, as these come, you know, maybe I want to say, hey, the Flamingo Park retro Adidas to see if they want to help fund
that and we can, you know, so just a point person is really what I'm looking for so we can explore these wonderful ideas. >> Agreed. >> Thank you, Melissa. I think chair I think there is a a standing resol that was approved by commission previously on this specific topic. So I don't think an additional one is is fine but we
obviously revisit it but I think for the purpose of this item I think uh hearing the sponsor I think we can show the item heard and closed but I think that the staff has heard the reinforcement of that prior commission reszo. So we'll show the item heard and closed. >> Thank you. And I think we're going to wrap up here Mr. CFO, but do just want
to um there's some that'll fall off uh particularly some of the parking initiatives uh by Commissioner Fernandez, but watching the neighborhood and public safety meeting the other day, I believe he has an item that would
almost supersede uh some of that. Is that your understanding? >> My understand uh he has withdrawn MB4, which was the workforce parking solutions. The only one that would fall off related to parking would be the se free city hall parking which has been on the uh agenda for quite a while. Yeah.
Um and that one would fall off because I know we've discussed that before about the inability to do that really. >> Yeah. >> Yeah. >> Okay. >> And I think that's the only parking related one that would uh fall off. >> So can we open and continue NB6? Where does that stand legally? There
were some legal considerations there. Were there not? M MB6 for the city attorneys is the speed zone detection funding. I think there is direction, my understanding to move forward with that and but this particular item was if and
when it does ever get implemented what to do with the funding. The funding uh does I think have to be related to public safety. Um, and the administration's recommendation on this item. And this isn't my to present technically, but if I recall correctly was if we were going to do uh get any funding for this, we could direct it
towards um school crossing guards funding, which also comes out of the general fund, but at the end of the day, it would just be general fund money. So, there doesn't need to be a direction from the commission on what to do uh necessarily with these these revenues if and when they ever come in. >> Well, if I may through the chair, um the
the statute does limit what the revenues could be used for. So as long as we are keeping track of that then you're right money is fungeible. So as but as long as we're keeping track that we're expending uh the funds that are collected for the purposes set forth in the statute we
>> Yes. And we've looked at that and we believe that we spend significantly more than what would be allowed under the statute. So we would have no kind of matching issue I think as the city attorney mentioned. So um that one would be fine. But if are we if we're going to close out let me know.
>> I think so. Colleagues, anything that anybody has a burning desire to hear? >> Nothing else. Sorry. >> Come on, please. >> Trying trying to wrap up here. Thanks. >> Going on April Fool's Day. >> Got it. Thanks. Right.
>> So, chair, we'll show the the meeting adjourned. >> Is that okay? >> April Fool's. >> Let's do it. Okay. So, we'll show the meeting. Thank you. Now we got Landers.