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recorded for public record. Please stand by. We are going on air in 5 4 3 2 1. >> Good morning everybody. Welcome to the September Finance and Economic Resiliency Committee meeting. I am here
with my friends, my colleagues, our city staff, our neighbors, uh stakeholders in our community. Beautiful Friday here in the most beautiful city in the world. So, uh lot going on. Um, it's easy to get bogged down in some of uh life's
daily back and forth, but we all need to always take a step back and remember just how blessed we are to live in such a magical, incredible city with the community that we have. Um, so that being said, uh, going to turn it over to our city attorney, uh, Rick Depico. Mr. CFO, if you could make some comments,
then we're going to get to the people's business. >> Good morning. 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 of hearing either in person or virtually
via Zoom. In order to participate in today's meeting virtually, members of the public may dial 1888-475-4499 toll-free 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 the item must click the raise hand icon if they are using the Zoom app or dial star9 if you are participating by phone. Uh thank you chair and I have just a couple of announcements. Uh the following items have been deferred. Uh
OB1 and OB6 have been deferred to December FK. Uh MB4, MB14 and MB16 are just deferred. Items OB 15 and 16 are linked if heard. OB 24 and 25 are linked
if heard and OB 17, 19, and 20 uh will be linked as heard. And we have one time certain. Uh first up, 10:30 MB7 on the Filmore Theater. I feel like I can call the title. >> No, I I think uh the team would like um a little bit more time just given they
have some people dialing in from California. Uh so we'll give them a little time to get settled. Uh we have a lot of neighbors here and I'm hoping this is a quick item for uh OB 3. Uh we've had extensive discussions. I'm hoping this is just pushing it
across the finish line. Uh I want to our neighbors that are here get them out of the get them out of here. Okay. But not in a bad way for you. Not because we don't want you here. Uh item OB3, discuss the possibility the city assuming control and managing the Sunset
Harbors towers, town homes, and yacht club pump station. OB3, we've had a lot of detail, a lot of back and forth. John, welcome. Is this your first uh FK meeting? >> Yes, sir. >> So, you're getting thrown into the fire here. There's a lot of backstory we're not going to get into. Um but tell us
how we're getting across the finish line here. >> So, there is definitely a cost to assuming this lift station. The lift station was designed not to our municipal standards but to a private standard. So it would have to be upgraded. Right now there's no redundancy. There's only one pump. There
is a gravity system which we definitely don't want to acquire due to access to the actual gravity system and potential condition issues with the gravity system. As far as the lift station itself, um there's a substantial cost to
assuming it, a little over $400,000 initially and then an annual maintenance cost. We have a higher maintenance threshold than in the private sector. That uh is around $60,000 per year to maintain that. But then we also have to look at the capital cost of replacement
or major upgrades every 10 to 15 years. So, that's something we need to look at in our capital improvement plan and as it relates to our rate study as well. >> Okay. So, let me go ahead and turn it over. Uh, agree, disagree, forever hold your peace.
>> Yes. So, uh, again, Mark Halpern, uh, Halpern Rodriguez on behalf of all the Sunset Harbor communities on this one. Um, look, we sat down with the city multiple times now. We've gone over the cost. We had a meeting of the minds, I thought, uh, where we were subsidizing the cost.
Um, and we were then agreeing to I think about a 30,000 a year uh uh uh sort of contribution for three years. It appeared we had an agreement um just as a brief reminder, you know, this is I
think our third time here. um on um back in July, uh I think the city the city first requested some additional time and I think this committee asked them to go find um documents that they said existed
that um that that where where we were somehow uh through an agreement from our developer to the city agreeing to uh maintain this thing. that that that agreement doesn't exist. It never did. So then we came back the last time and the city said despite sitting down with
us a week or two prior, we need more time to look at the numbers. We don't That's what they said. We have no idea what the city is doing right now. Um we uh the city had an engineering firm put together all the numbers and an analysis. We then hired our own
engineering firm. We sat down after that. We compared numbers. We said we'll absorb the cost. What we don't want is again, and I know this is kind of like I've said it each time, is we don't want to run a public utility. >> Yeah. And we're aligned with that. It's
not your job. I think the liabilities that we'd be signing up for, maybe not directly to us, but what could go wrong as a community? We're stakeholders and stewards of the community. We we can't allow that to happen. So, where's the oxygen between us? Is it in the annual operating uh maintenance agreements or
costs? I I think it's in the ongoing cost and the replacement cost, but >> you know, I'm just giving you the numbers that we've received from Hazen Sawyer. They've done the analysis on the lift station and we'll basically go whatever direction uh commission
desires. >> So, we're talking about we have most an agreement on most. However, we're saying it'll cost about $60,000 per year for the city to operate this. Sunset Harbor, you have operating costs of about $30,000 that you'd subsidize and
essentially pay. Uh but we have some sort of delta there where uh because we're the government, my goodness, it just costs us more. >> Well, well, you know what? We did we did analyze what the hastening report was. We went by the hastening report. So, we agreed to the you know the 200 or 300
and you go out for bid in terms of that the $60,000 have five people looking at the at the lift station. We don't, you know, you don't need five >> five days a week. >> Five days a week. So, you know what? You don't need you don't you're gonna have alarms and stuff that tells you, which
right now we do have an alarm, but we don't have an alarm when the city raises the the the the pool. >> John, is there a way to get us to $30,000? >> I'd have to look into that in in more detail, but we do more inspections. We're a public utility and we have a lot
of responsibility to keep the environment clean, not have sanitary sewer overflows. That's the point. >> This is a completely different lift station than what we actually put in place. So, we would have to upgrade this to municipal standards >> and we have a much greater
responsibility as a municipality to ensure the safety of the community. So, >> and we're going to pay for that. We agreed to pay the 30. I have a question on that because how many how many residents are impacted by this sewer pump station? >> Uh 2,000 I believe >> 2,000 residents impacted by the sewers
uh station. And you're telling me that the city needs to do more inspections because of our responsibility with the environment. >> Correct. >> And that's why there's the added cost. That means that right now, right now, the necessary inspections to secure the
environment is not being done because we're asking an entity that shouldn't be managing a public utility to manage a public utility. That's not their responsibility. And with everything that we have going on with water quality, I think we need to make sure that the
proper investments and the proper inspections are taking place. And that doesn't that's not the responsibility of a condo association. How much are you paying uh now on a monthly basis for the maintenance of >> $150 a month? >> $150 a month, which is about
>> I don't know $1,500 a year. >> Yeah. And and we've been doing this for 15 years. >> And then and it's going to cost the city what you're doing for $1,500. It's going to cost the city $60,000. >> This is what >> that that's the estimate that they came >> to me. The problem is not them. the the
problem is us with our costs and we have to go back and figure this out because yes it no condominium should be running a private utility for 2,000 residents and this commission has already taken a
position in the past that this is something that should be taken over by the city. Um so the concern is how can we lower these costs >> so that we handle this pump station responsibly under the operation by the
city. >> We think $30,000 when our engineer looked at it and what we pray and we looked at the cost like this is your detail cost that is inside of the report. That's how you got to the 60,000. So we said do you need do you need that many people per per day or per
week? It was like a little bit ridiculous. So we said, you know, we will give you 30,000 for three years in order to get to the point and you run it smoothly. So this way there's no problem with it. So you know, we've been doing it for 15, 20 years, 28 years, you know,
>> and and it's getting worse and worse as time goes on as things and we're afraid >> clearly. We want to take it over. We just want to, you know, figure out how we're going to fund this. Commissioner B. >> Yeah. I look I we are all unlike in years past or in situations past I think
this um commission this administration is more focused on than ever on being fiscally responsible which is a good thing. I also want to um counter the narrative that some of my colleagues not those on the day today but some of my
colleagues are putting out there that we are about to go underwater. Not poor choice of words not nothing to do with water but financially underwater that we are that our budget is you know we're moments away from capsizing the ship of state that we have no reserves that we
have no discretion in how we spend our money that all of our money needs to be spent on one thing or another we cannot find ways to do lots of different things that is a false narrative and I'm saying this very particularly not just to the people in this room on this item but for
the many people who are going to refer to these documents later. I am telling you unequivocally it is a false narrative. Are we being prudent by paying attention to the fact that tourists aren't coming here the way they used to for reasons outside of our
control? We are. Are we paying attention to the fact that we have things in our city that aren't attracting residents the way they used to and we're trying to fix that? We are. Are we taking taking account that um housing costs and traffic and all these things are really
complicated and making it hard to be in the city? We are. Is the city about to go bankrupt like Detroit in the 80s? We are not. And for people to to be spewing that rhetoric to make points is absurd. And the reason I'm opening up with this
preamble is because we are having a spat about a relatively small amount of money. It's not nothing and I respect that. But the greater cost of not making sure that this pump station works properly, especially because it is
literally on the edge of the bay. And we are spending close to $20 million to try to fix the water in Park View Island, which is toxic at the moment and has been for who knows how long, but at least until since 2020. and to say that
we are not going to move forward in the most responsible way possible. Whether that means that we end up spending a little bit more on the city side or we figure it out, we will make sure that we have the right staffing levels. We will make sure that we have the correct um
safeguards put into place that that water is treated the best way possible. We will upgrade the pumps. we will figure out how to get it paid because you know what's going to be more expensive than that is trying to clean up the toxic waste in Biscane Bay the way we are in Parkview Island. So this
is not directed at my colleagues here or you guys standing at the deis. This is for the greater conversation because the narrative is out there and it is to be polite a load of nonsense. >> Yeah. >> Well, that was a very robust way of saying we're going to move this forward.
>> Yeah, I'll move it. >> Yeah. Just and and just to kind of follow up on No, no, we're good. >> How do we get it past the >> Yeah. So, John, I think what we're what I'm looking at here, I want to give direction to move this forward to the full commission where we're going to take this over. I ask you to go back,
really fine-tune the analysis to see what we can do, especially on the ongoing operating maintenance to get those costs more in line or congruent with where Sunset Harbor is, but recognizing perhaps we need to do more because, and it's a great example of why we need to take it over is because
they're not experts at doing this, but work with the neighborhood, find out what they've been doing, um see where we're able to uh be more prudent to kind of get in line with them, understand we're probably not going to get to their number, but let's see if we could do a better job of bridging that delta.
>> Can we give them any ement that they need? Whatever easement that requires, we will give it to you. We will open >> my My only question is this is similar to how it was left the last time. And my fear is that we're going to be back here in full. >> We're going to move it to the full commission. Okay. Right. And if we can't
bridge that delta, we can't bridge the delta. We're going to find a way to uh offset that $30,000. Right. what we're actually doing. Uh we're going to do an analysis of ways where we can cut frivolous costs uh in the coming days.
So I'm confident that uh like Commissioner Bot said, we are being very prudent with our taxpayer money, but this is uh we'd be pennywise pound foolish to uh leave this in your hands despite the best efforts that you've done over the years. So we're going to move this to the full commission, Mr. uh
CFO. Uh thank you, chair. I think in hearing the discussion there's obviously an interest in it back to commission and I think hearing discussion was that the association was comfortable covering the initial upgrade cost and really we'll leave it maybe as a to be determined discussion on the annual contribution but if that is correct I think this
would be I believe motion be returned to commission with the favor recommendation to direct the administration to negotiate an agreement with Sunset Harbor Condo association shift responsibility for operating maintaining upgrading and renewal and replacing of the sewer pump station uh with upgrades to be covered by the association and the
annual contrib contribution uh for operation of maintenance to be determined. Excellent. Uh so we'd have to have someone make that motion. >> No problem. >> I move it. >> I'll second. >> Thank you. All in favor? >> I >> I show the Thank you all. Thank you all
for your efforts on this. >> Thank you very much. >> Let's hear from uh our economic development uh department. Let's do uh OB24 and then also leeway that into uh NB11. Let's hear both of those. Uh
>> Stephen, perhaps be a little concise with uh 24 because uh that'll kind of dovetail into our conversation with MB11. Thank you. I'll let me call uh OB 24 and 25 are linked uh similar items. So OB 24 is economic development department update steps taken to improve
business retention and attract businesses and OB25 is discuss possible economic incentives to attract more businesses to the city and expand existing programs. OB24 OB25. >> Good. Uh good morning, chair and commission. Um just uh Stephen Anthony,
economic development director. Just really wanted to give a a quick update. I know we do this on a on a quarterly quarterly basis. We gave a a most recent update for for economic development. Uh there's a number of different things. Economic development is always going to stay very focused around um committed to positioning Miami Beach as a hub for
innovation, culture, and business. Um there's a number of different things that we've done here over the the last uh this most risk uh recent fiscal year um that's really focused and honed in on on those things. And so you think about the number of uh the the way that we support our business improvement
districts. Um the way that we continue where we staff as a liaison to the the mayor's uh 41st Street uh ribbon ribbon committee. Um there are a number of different uh business support programs that we've continued to to advocate for and and support. most recently uh 20 20
applicants received $5,000 grants um out of out of 40 applications. And so that was a program that was that was very successful. A number of businesses received um received the funding that that's needed to help them be able to move forward um and and thrive in this current environment. And so that was
really really beneficial. Um our commercially subsidy program is is certainly one of those that is continually um doing doing really well. and and there's a number of applications that are that are coming through there. Um the of course the North Beach CRA uh which is is certainly under the purview
of economic development and we're continually refining ways in which we can we can really focus and hone in on the things that are going to move economic development forward. Um so which is really important. I made sure that we actually make sure to allocate towards more attainable housing, workforce housing. Um making sure that
there's a greater percentage that's allocated towards that. making sure that we also have a greater percentage that's allocated towards small business development. >> And Stephen, let me ask you a question. I appreciate everything that you've done. Um, are you getting involved in the rehashing of the permitting process
because that is that is a economic development item as well. So, I hope that you're working handinhand with Vince because you essentially have to serve as somebody that's pushing that forward. uh because that is, you know, um a barrier at times to economic
development. So, we don't need to get into exactly what you're doing right here today, but I just want to assure that you're actually uh in line working on this process. >> And that's a really great point, Chair. And and Vince and I actually had a sit down conversation literally less than a month ago um and actually had
opportunity to talk about some of the work that's happening within building. We also raised the flag and and we did a business concur and licensing event that just happened last month. >> You know what, Vince, give me 10 minutes and we're going to actually segue into
NB 17 and 18 and we'll follow up on this discussion. So, Stephen, why don't we kick into uh NB11 um and then we'll dovetail that into 17 and 18. >> Okay. All right.
So with the the other aspect of of what we're what we're looking is uh the application for for Playboy Enterprises. Um so we are are certainly recommending this as we talked about economic development and how to move business
forward um and how to attract the the the topofthe-line type of companies into um into Miami Beach. Uh specifically what we've been working on recently is is an opportunity and through your your direction chair uh we were we you that foresight that you and the commission
put forward um months ago uh to actually look to and say how do we and track these types of businesses that can be really global standards for for Miami Beach. And so being able to have a tool that allows us to be able to do that and increase the the cap on on that tool um
that happened months ago through this commission back in May. And so that was really helpful. One, it helped a company like Playboy uh be able to recognize what Miami Beach is doing, how business pro businessfriendly that we are. Um there are a number of different things
and since that point there's actually been a number of applications that have come through uh inquiries from a number of different types of companies, healthcare companies, fintech companies that are actually saying, you know what, Miami Beach looks like the place that we want to locate our business. >> And so that's really been helpful. And
so with Playboy, we're we're certainly recommending um to move this uh application forward uh for the for the job creation incentive program. And um just a just a quick note in making sure that folks understand that this program is a performance-based program. So folks
have to actually provide the jobs that they say they're going to provide, right? And it's an annual annual on an annual basis. So they move in, we check and verify everything that following year and that's what allows for folks to actually receive uh the incentive award.
So I just want to make sure that that point is is clear that it's that it's always going to be performance-based for companies. So, it's not an automatic uh automatic incentive that's received. >> And I appreciate that point because I think there were some misleading articles out there saying we're just awarding $800,000. That is absolutely
not the case. It's on a year-by-year annual basis. Over four years, it could be up to that amount. Uh but like you said, it is only if they hit those job hurdles that are clearly mapped out and defined. Uh several months ago, we passed new legislation in hopes that we
could put something forward to attract new businesses and that worked exactly as it was intended and even more so. Um what we're looking at here, this isn't just about one application, right? This one application, yes, is going to bring
upwards of over a 100 to 150 white collar professional jobs to an area of our city that we need it the most to Lincoln Road that we all look to and say, "How can we revitalize this? How can we restore this?" What this does, this provides daytime foot traffic that
is going to help support the retailers. So just in this payroll alone equates to where their annual wages are at $175,000 their annual wages. They're not bringing their whole team from LA. They're hiring
Miami Beach residents. If you go on LinkedIn right now, their company is advertising in Miami Beach for Miami Beach residents their chief content officer for $30 to $400,000 per year. Right? That is a job that will go to a
Miami Beach resident. When we got elected and we ran two years ago, Miami Beach was at a crossroads, right? Our our city in many ways was being overtaken by the anything goes party mentality and that's why we ran, right?
And two years ago in March, CNN broadcast from Ocean Drive when two people were shot and executed on Ocean Drive. This past March, CNN didn't broadcast. CNBC broadcast in March when
we had a finance conference. And now we're figuring out what is filling that vacuum. What is filling that void? And that's creating an economy in Miami Beach for everybody where everybody could be prosperous. And this solves so many different issues. Now that we're
bringing real jobs for real Miami Beach residents to build a real economy, think what that does. Now, not every resident has to drive off Miami Beach to go to work, to make a dignified living. So, that's going to help with our traffic,
right? That activity, this office space, which is on city-owned land, right? City owned land. This company's putting $5 million of capital investments into that building as part of this project. It's going to bring a hundred people
every single day. Every single day that are going to walk out on Lincoln Road and the surrounding areas and buy lunch and buy coffee and go to happy hour and >> do errands >> and do errands and that is how you attract. They're not going to go to
Cheesecake Factory, right? They're going to go to our mom and pop businesses, right? Those are the types of people that daytime retail activity that are going to help restore and revitalize our small mom and pop businesses. And you
hit on a point that I really didn't appreciate. Right. I knew this would be a big announcement. I knew there would be, you know, some, oh man, what this company I spoke with our marketing team. The news of this story got over 2.1
billion impressions worldwide. >> 2.1 billion. It was in the USA Today on CBS News, on NBC News, and I'll have a marketing team confirm it if she would like, but overwhelmingly overwhelmingly
all positive, speaking how Miami Beach is a businessfriendly place, that we're open for business, and it wasn't focused on the party mentality or things like that, but about building a real economy. And just since
then, I have gotten inquiries. me. I'm not some commercial broker. I'm not taking fees. I'm not People just saw what this did. A venture capital firm. The CEO and founder reached out to me and goes, "Oh
my gosh, I never considered Miami Beach." And guess what? Within the next two weeks, they're going to be signing an office either in Sunset Harbor or Lincoln Road to open up a Miami office, a Miami Beach office. the things they're
investing in, space, robotics, quantum computing, AI, those are 15 venture capital jobs. They used to be reserved for New York City and Silicon Valley. And again, they're not bringing teams. They're building
them out here. >> Just at the end of last week, a high-end medical spa reached out to me and goes, "This is incredible what's happening on Lincoln Road. I never considered it. They actually signed a lease this week to open up a high-end medical spa on
Lincoln Road. There was an article this week and the gentleman in this building, the Miami office, reached out to me from I don't want to get their name wrong, NO, a Canadian tech marketing firm. They goes,
he wrote me on Instagram actually. And he goes, "Congratulations on this deal. That's a generational get that's going to change Miami Beach. We're so happy to now building out our office here in Miami Beach, a Canadian tech and marketing company now coming to
Washington Avenue. We are on the cusp of we laid the groundwork with public safety and revitalizing arts and culture and now we're creating an economy where our Miami Beach residents can thrive. So, I'm so proud of this because it's
not just I'm not proud of it for me. I'm proud of it for our city, right? It wasn't me. It was it was our city that has become one of the most attractive places in the world to live, to work, to raise a family, and now to start a business. All right. And that was our missing component. Let me turn it over
to my colleagues. I'll turn it over our uh economic development team and I think even our city manager uh may be here just to walk through kind of the process. >> If I can I'm sorry. advanc here that we're going to are we closing the OB 24 and 25 and moving on to the 17 item the play item.
>> Yes, but that'll also that'll kind of uh also leeway into 17 and 18 that we hear after this NB 1718. >> So I you know what Joe said is spot on and um you know you you hear I love I I
don't even know where know where to start. I came up as an activist as as you guys all know and the activism is the passion that fuels the desire for change. The thing that I find deeply frustrating is people select the
information they choose to receive now versus 10 years ago is that the activism is still as passionate and valid as it has always been. But the facts are missing in action. And it is infuriating because instead of people saying, "Wow,
so now we can be all the things that were great about us 10, 20, 30 years ago, we're turning into something else. We're turning into a sleepy city where nobody can have any fun. We're turning into adjectives here." That is not the
case. We are doing all of the things at the same time. So yeah, we have a little bit more law and order. And you know what? It's serving us really well. And yeah, we can still go out and party till you drop. I mean, feel free. I would encourage you not to drop in the
streets. Please try to take a lift home. Do not drive. But yeah, that's part of our DNA, too. And and now the missing piece. We've said for years, we are a hospitality and real estate driven economy, and that is not sustainable. So
now we have lifestyle brands, we have medical enterprises, we have um tech, we have marketing, we have venture capital. Those are industries that round out our hospitality and round out our our real
estate industries and help support all the small businesses that are struggling. I mean, how many items have we heard at commission? We need a subsidy for the months of, you know, June, July, August for this group, and we need some help for this group as we're doing capital improvements. You
know, it's difficult being a business here in Miami Beach. But what will make it easier is a more robust, reasonably well- paid or even very well- paid group of people who live here by choice and work here by choice and can get around
using micromobility or because they live a few blocks away from where they work. I mean, this notion of a 15minute city like Sunset Harbor has become where you can live, work, play, and dine to your heart's content is what we strive for. And so, when when I I hear people
chastising initiatives that are different from what has come before us because they're not sure that's the right look for Miami Beach. I'm like, girl, have you looked at the history? >> Have you looked at the history of Miami
Beach? I would I would I would I would propose to those listening that the only wrong look for Miami Beach is when we were a bigoted, racist, anti-semitic sundown town. That is not the right look for Miami Beach and never will be again.
But that's not what we're talking about. We're talking about attracting people and ideas. We're talking about having people put their kids in our schools, which will make our schools better. We're talking about having a greater tax base that isn't predicated on billionaires who spend two weeks out of
the year in their fifth condo in Miami Beach. We're building back our community. I'm so proud of you for doing this. And I know you say it's a village and it, you know, it takes the commission to vote and Stephen, you know, you're here doing this. It the
whole administration has been behind this a thousand%. But it takes somebody with the ideas, the vision, and the drive to push it forward. And that's what you've done. I commend you. I'm thrilled about the change that we're seeing. I want to percolate have it percolate down to smaller businesses as
well, which is what we're going to talk about with Vince a little bit, but you know, all kudos to to you and the team. So, thank you >> all of us to our city, >> Mr. CFO. So I I believe um so we we'll show items just so I can clear my
calendar my items here is we are going to show items OB 24 and 25 were uh heard and closed and then MB11 it sounds like that you're going to be uh to return this to commission with a favorable recommendation approving the Playboy Enterprises International Job Creation instead of program application as
presented. >> Commissioner Fernandez. >> Yeah. And I just want to highlight because and and again, Commissioner Magazine, thank you because this is a catalyst uh a catalyst for our economy and not just for our economy for for the residents of of our city. Direct jobs,
the economic impact on the direct jobs over a 4-year period, $1.4 million >> per year. That's per year. >> I mean, that is incredible. That is incredible. When you look at the proposed investment in terms of
renovation and and and construction work, $4.8 million being invested there. All of this has a ripple effect on our economy. And I think you stated it best. When those headlines went around the world and
other businesses saw uh that this company is coming to Miami Beach, it piques their interest. It tells them that's where we want to be. And so I just want to congratulate you. I want to support you in this in this effort. And most importantly, I want to thank you because you've had the vision for it.
You've uh not it's easy to have vision, but you've delivered on on the vision. And I think this will only continue uh bearing more fruits for our community. Proud to support you. >> Incredible. Thank you all. >> And then on the motion, I guess we'll show Commissioner Bot making the motion and you seconding it.
>> And then all in favor? I Okay, the item passes. Okay, item passes. And I believe the next item you had recommended was um MB 17 and 18 you wanted to heard together. Okay, so read in MB17 discussing strengthening small business outreach
and permitting guidance. MB7 and then MB18 discuss strategies to ensure that third parties retain for compensation by businesses follow through on obtaining all required permits. MB18. >> Yeah. So, um I brought these two items
and I'm I'm compressing them into one conversation because they they're part of what goes on. So, I I want to commend you. I've seen emails and Facebook city Facebook posts about um outreach and hey, did you know you can come in and do X, Y, and Z? So, I think that's great. I
want to hear more about how you reach people who aren't, you know, don't know that they can sign up for these emails, who don't go on social media, who might not speak English as their first language. I mean, that so I want to hear that. And I also want to really understand if there's anything we can do
because what I hear far too often, especially from the small businesses, is I signed a lease. My neighbor came in as I was figuring out how I was going to go through the process and said, "I can help you navigate this the process at
city hall." and they claim to be permit expediters or they claim to um be able to hook people up with the right people to talk to and they go through all the motions and five years later in an in a BTR audit it's determined that something
is missing and so the business might have been able to open but shouldn't have technically and it's not through fault of the business owner unlike one that we had who knew very well that that they did not have a BTR and ended up operating as a speak easy literally
until it was finally shut down which is I mean talk about movies that's a good one. Um but in other cases we've had people who are like oh my god they told me I did everything right and now I'm being faced with you know a $70,000 fine and not even a fine but back payment over five years but the person
who did this for me said that it was done correctly. So it's not the business owner who's doing the wrong thing. How do we make sure the business owner gets all the information that we reach them where they are? Because there are plenty of business owners who have no idea
you're supposed to go to city hall to get X, Y, and Z. And then if they have somebody representing them, how do we make sure that we have that person in the files so that if there is some malfeasants, it can be brought back to the person who did it and that person is
held accountable. So that with that setup, take it away you guys. Good morning, honorable commission. Uh, and thank you for the opportunity in bringing these items up. Uh, with the support of our leadership, um, when I came on board, uh, we found some
critical needs through the ad hoc committee and and other, uh, avenues where the public came forward and brought up these very same issues that you guys heard and have made them legislative items. Uh, I'll start with the more pedestrian uh, outreach. So,
good oldfashioned flyers, quarterly events that have brought in the public where they've been able to resolve issues on the spot on time, but more significantly the support, like I said, of leadership to reinstitute the walkthrough process that we have on
Tuesdays and Thursdays. One of the greatest success stories just hit the finish line uh last week where a yogurt company was able to apply for permit, get the permit, and be ready to go in less than two weeks. >> Oh, wow. >> That is amazing.
>> I'm sorry. Can you say that again for the record? >> Yeah. >> Two weeks. >> No, the whole thing. >> They applied on one walkthrough day. They came back, got DM squared away, and on the second walkthrough, they got their permit. So they came into city hall and within two weeks they were open
for business. >> They were ready. They had their permit in hand and they had very little work left to do and they knocked it out. We've also instituted other things uh through the building code that I allow for uh early start permits and things of that nature. So the temperature and the
values are there. We see the need and we're working with the industry as much as we possibly can. We've also synergized and reached out with our partners at uh the Department of Environmental Resource Management, otherwise known as DURM. All right. And they're they've actively come in.
They've set up a kiosk with us here. Uh right now, we're going to be doing some com reconfiguration to make it a little bit more synergetic, if you would. Uh when the folks come in and and are applying to give them a little bit more privacy to be able to interact directly with that reviewer on the other side at
Miami Day County. Uh I started with those. Those are the small ones, but the big one that's coming up is a truly customer servicebased initiative of a concier. So you will actually be able to have your handheld from beginning to end of the process. And and to be clear,
that is if you're a small business because yes, you know, the developers come in and they basically have that because they have their staff of lawyers and, you know, a whole team of people and they do this for a living as opposed to somebody who's retired from teaching, has always wanted to open up a yarn
store. Has no idea that you need to change your use from a bakery to a yarn store because a retail space is a retail space. opens up the yarn store and then all of a sudden is like held up by Derm because the grease trap isn't big enough for a yarn store, you know, like or
whatever. So, you're talking about if you have the dream of having your own small business, there will be somebody who will be your point person all the way through the process from start to finish who will be able to find the documents, figure out who you need to talk to, all of that,
>> make those connections. Yes, that's exactly the initiative that we're we're launching. Cloning Lenor, >> huh? >> Are you cloning Lenor Hernandez? Because I mean, >> we we have we have an entire staff and what we're doing is we're we're taking the the best and the brightest from from
that section and repurposing them for this initiative, okay? So that we could get the most bang for our buck, if you would, and get more people across the finish line and have those businesses open, both contributing to the city and the employment and and just the forward motion of the entire city and and
community. So >> I just want and I just want to note that that also is working in conjunction with the business concierge service that economic development has had for a while. And so what I what I do love is that I know that commissioner magazine implemented in terms of marketing additional marketing dollars. What I
realized I had people raised their hand and said how many people knew that economic development had a business consecure service and literally were two people. >> Yeah. And so the idea of the fact that now we're able to work together when folks come into economic development small business who's just has an idea, they have one point of contact. That
point of contact then connects with with Vince and his department and say, "Okay, here's what the business is looking for." So that way there is not this back and forth that you always hear about. There's literally one person who you can usher through the process. I >> I this is so happy making. I just can't
even. And it's a great antidote to the way the day has started. So, um, so here's the other question. Like the the thing that seems like it might be missing, but maybe you guys are covering it somehow is the, um, the use change for people. Like it kind of gets covered
in building, but it's really esoteric for a lot of people. Um and and the other part that I'm not quite getting yet is um where is the best way to capture the people who want to do business? Is there
an opportunity in the city? Is there an opportunity to do some kind of outreach to leasing agents and real estate companies? Because I think they're the first point of contact, right? When somebody's looking to open a new business, they need to do it unless they're running a homebased operation,
which is a different conversation. Um, but if they're doing, you know, a retail business, they have to find the space. So, and and often we hear, you know, well, my leasing agent never told me that. And it's probably because the leasing agent didn't know, right, that there was a thing that had to happen
because it's sometimes very weird and esoteric and seems counterintuitive. So, is there also an opportunity to broaden all of what you're doing? And because I want to catch everybody who goes into this funnel, not the ones who are self-directed enough to figure out, oh,
I do need a BTR or, oh, I would like to know what Miami Beach can do for me. So, you guys are look like you've got >> I'll let Vince get to the first one, but I have the second part. >> Absolutely. So, and and to your previous comment, you identified it and hit nail on the head. The bigger firms will have
robust design teams. They'll have their own contacts. They'll have their own they'll set up uh meetings which me and my staff have made ourselves nothing but available uh at every opportunity to help guide people and and identify any hurdles they may have in the process. Uh
but further uh our partners in economic development have been leading the way with these quarterly meetings bringing everybody in sounding the the alarms come on in. We've also have all the contacts of all the contractors and everybody that's been involved in the permitting process and we email blast
all our initiatives all the new progress that we've done with with regards to walkth through with regards to public outreach uh initiatives and things of that nature. >> Are we working with the chamber? >> We do. So that's the other so our business concurge and licensing event
what we what we do is we reach out to all of our partners. So, we reach out to the bids, we reach out to uh the chamber, we reach out to all of our partners and say, "Hey, any of your contacts that have anything to do with businesses, come on in." And so, what we realized is there was really great great
feedback from the most recent one we just had in August and we're working on the next one as we speak. And the idea was that we actually moved it. It was going to be just twice a year. We said, "You know what? Let's do this quarterly because our partners are really, really helpful in this process." and everyone that came in said, "Wow, I didn't know
that Miami Beach does this." And so, let's make sure that we're doing this more often so that folks really get the information that they need. And so, we're actually going to up the up the number of times that we do this. >> You know, another idea might be to have us a booth at the trade shows at the convention center because that's all
about building business. And even if you're there working for your, you know, L'Oreal at the makeup show or whatever it is, you might have a dream of having your own makeup line. And you know, we'd like you to do that here in Miami Beach. So, you know, in terms of outreach, I really want to put on the the the
thinking outside of the box hat and go everywhere where people may be. High school job fairs, college job fairs, you know, you never know when somebody is not going to take a linear path or what we have usually thought of as a linear path. And we want to make sure that we people know that we can we have the
resources. It's it's a question of of time, you know, two hours here, two hours there, whatever. Um, and I would also I'm I'm so excited about this. I we haven't really talked about the the person, you know, the the bad um advice giver part of this. Um but on the on the
positive side, I would like there to be um if you guys would collaborate to to write a letter to commission that very robustly in resident friendly language lays out all the things that are happening, where all the resources are, what the calendar is for the events so
that that can be shared, you know, and we could work with with Melissa and her team to get it out into the universe. And then also, you know, because sometimes it's like there's a piece of information about this and then a piece of information about that, but to have almost like a a handbook that covers all
of it would be really tremendous. So, I would love to see that. Um, >> and to Melissa's credit and her team as well, every article that they put out in the magazine just generates even more great uh more noise and and brings more people into back into city hall
resolving their issues and getting everything resolved legally and correctly. Fantastic. >> And Vince, uh, sometimes the issues are out of our hands and one thing we hear continuously is with Durm. There was an update recently at the county as part of their budget hearing. Uh, for lack of a
better term, in some ways they defanged Durm or there was a proposal to do so. Uh, tell me about that and is that a different derm? Uh, does that have any impact? Most notably where we hear about it is through the grease trap process.
Is that correct? >> Uh so probably the most uh loud contingent or market is the restaurant and people that have uh the use of grease traps. And I wouldn't say so much defanging but rather a restructuring or reorganization is what's happening at
the county right now. And it's actually streamlining a lot of some of the uh >> more politician than me. >> Oh my god. I apologize. Uh so the reorganization that they've uh gone under is they've put all the folks that touch anything permitting and put
them under the building department in reer so that they're on the same timetable. They're under the same time constraints and the same leadership. Everyone's marching to the same beat. Okay. The the legislative portion that's staying downtown and and basically where they stayed out. The policy folks are
staying in that in that silo if you want to call it something. Uh but again, that's been probably the largest uh push of the football downfield. Okay. That's really capitalized and and helped businesses gain success even faster. So,
>> so that'll be a positive for the businesses. >> Absolutely. Without a doubt. >> Excellent. Excellent. Um that that's fantastic. And I I think with all the it's clear given all the different commissioners with items ourselves,
Commissioner Fernandez and also Mayor Miner and Commissioner Dominguez had uh OB25, Mr. CFO, maybe if we can include that. >> Oh, wait. We didn't hear um about the the bad actors giving bad advice. >> Ah, sorry. >> Okay. So, on on the other side of the
coin, right? um what some people call expediters, runners, what have you. Those are folks that unfortunately are unregulated. As a contractor, you have a license issued by the state or the county. As an engineer and architect, again, you have a license
that's issued that can have sanctions taken against you, be it in the form of fines, continuing ed, or ultimately revocation of that license. So there is a penalty for failing to comply with your duty. Okay. These the runner
industry is kind of all over the place. There's no license. There's no way to track them. So what we've been looking at is a registration system. All right. So once somebody registers with them, we could finally have some way number one to identify exactly who they are. Okay.
we may be able to even come up with a local form of discipline that could result in either a fine or suspension from representing. Okay. Um it's kind of a gray area because again a runner there's no license, there's no test. So
at this point we're just going you're a business you got to register. Okay. And then use kind of the Better Business Bureau. You're an A, a B, a C, something of that nature. as an enforcement or regulatory agency, I can't get into that directly because now I'm putting my
finger on the scales and I'm supposed to be blind. >> Right. >> Okay. So, I treat everyone the same. >> So, but there's also in addition to the people who have companies that do this, there are also sort of just the the neighbor who's like, "Oh, I've opened five, you know, I've helped five of your
businesses open up or your neighbor I've helped five of your neighboring businesses open up in in the community. Let me help you as well." So they're not an official, you know, permit expediter. So can we like start an internal registration? >> Yes.
>> Of that. And also when when you have the outreach in in economic development and in the building department, maybe that is something that you really highlight. Like be sure I mean it's fine to use an expediter if you want to, but you might want to check with us um registered >> who who you're using and if they're
giving you like tell us what they've told you you need and we'll let you know if if that's everything. >> Correct. And and that's kind of the direction that we're we're configuring this in. uh it would be through our contractor registration except it won't have a license attached. It'll be a business name, right? And one of the
things that we could inform the public is if you're going to use a runner, all right, go ahead and check and see if they're on our registration system because somebody that has the fortitude to go ahead and register >> should be playing in the sunlight. >> Right. >> Right. Uh someone that's avoiding the
sunlight >> or doesn't even know that there's a registration system, that's a problem. tells you about their familiarity with the system and the process. Absolutely. >> Okay, great. Well, listen, I'm excited to read the LTC, not to give you a homework assignment, but I'm giving you a homework assignment. And I think more importantly, our residents and business
owners and prospective residents and business owners will be thrilled to have, you know, like a a manual almost of here, here it is, start to finish. Here's where you go and uh let we'll see you at city hall. >> So, excellent work. Thank you. So if I could if I could uh summarize I think
where we are on 17 17 and 18 combined is a little separate but we'll show the staff provided an update on the new new processes and programs. Uh and then they'll I guess we'll have a return to commission on the favor recommendation to direct the administration to develop a permanent runner registration program
and for the administration to uh disseminate an LTC uh to be provided on business outreach programs. Does that have to be voted on by the full commission or can we just move it from here? >> I think direction always goes up to the commission and since we're sending something to the commission anyway, it
could be combined together. So I think that would be the motion and again we'll show Commissioner Bot making motion seconded by uh Commissioner Magazine. >> Could be a theme today. >> Could be a theme today. Yes. And then officially all in favor I >> Well, no. Let me Yeah. >> And so I think we closed out OB 24 as
well. Yeah, we should have 24 and 25 uh discussed. >> So, I don't know if I teed you up for 25. Um, and I want to give you the respect because I know Mayor Miner and Commissioner Dominguez and all of us collectively have really been focused on I know we touched on this as part of a lot of other issues, but Stephen, if you
just want to kind of wrap up or summarize uh OB25, discuss possible economic incentives to attract more businesses to the city and expand existing programs. >> Yeah. So, thank you. I um so the the the item really spoke to a lot of the
programs that we already kind of uh touched base on the programs that are already doing really well. We talked about the job creation incentive program, talked about the commercial lease subsidy program. So a number of the programs that are already featured, the business concurge uh program. So a number of those programs are already featured here. There's this just to
highlight a few things that are just new ideas under consideration. Um, some of the things that I've taken from communities that I've been um, economic worked in economic development in the past um, is is is what I call a build program or a a tax abatement program um, that actually works in a in a conduit
form. So, it is a it is a bond that works as a as a conduit. So, a business will come in and say, "Hey, I'm going to look to make a $5 million investment within redeveloping or developing some uh some new some property or moving a
business into into Miami Beach. What they would do is then they would actually the the administration would then issue we would issue a a bond. It would serve as a conduit only." So, which means that there wouldn't be a a a financing component to it. So it allows
then that the that the title of the real or personal property would actually be in the name of the city uh which would then allow for a tax abatement over a certain period of time right um and typically what I've seen these do is up to 10 years really not going above and beyond that because it matches up with
the financing of the company itself um and instead of actually paying the actual taxes what the company would pay would be a payment in lie of taxes and so they would still make a payment right so they would still make a payment it wouldn't be as if you're not paying any taxes for that time period or any any amount during a time period. But what's
what's helpful for the business is that now you have a consistent payment that you're going to be making over a course of period of time. So you know exactly what you're going to be paying and so that that certainty is what businesses are looking for >> and you've spoken with legal about this. >> So we had legal chime in we had legal
chime in on on on aspects of it and we're working finishing working through some of the logistics. We learned that of course that um the state of the state of uh the state of Florida does issue does issue these types of bonds um and so forth. And so we're working through exactly the how we would implement
that's that's the next step for for this. >> Um so that's it's interesting because when I was um running I was talking about this kind of an idea for um affordable housing development and I was told that we couldn't because the state of Florida governed what kind of tax
abatements you could do. But because this is business like what? >> So it's an economic Yeah. It's an economic development tool. And so it's it's it's typically what you've seen with the state. The states usually utilize this for um industrial. So it's you will hear the industrial revenue
bond, their industrial bond. And so it's typically utilized for major manufacturing or industrial types of facilities that that folks are that folks are building. And so that's where you've seen these types of of projects utilized within the state. And so there's there's an opportunity to just
sort of reimagine that side of it. Um again, there's no there's no revenue component uh to the to the bond itself. So you're not issuing a financing tool. Um you're you're issuing a tool that would allow the business to actually the business has to agree to actually have their uh real or personal property be
maintained um titled in the in the name of the city for a period of time, which some businesses have have challenges with. But but what it allows for that opportunity is to have now over a certain period of time which will all be done by and approved by by the city. And
also I just want to note that the only part that can be abated is local. So you can't abate county, you have to work with the county, you can't abate any other taxing jurisdiction. You can only abate specifically what what the what the city would actually have um would have collected during that time. but it
does allow as another retraction tool and you've seen this seen this type of tool utilized in a number of places. So, we're we're further evaluating um how to how to potentially implement uh uh something of that nature. >> So, that's the one I wanted to just uh to highlight um in addition to grocery
store incentives because we've heard a lot about grocery stores. >> Can you give us an update on >> and so we've heard a lot about grocery stores. heard I've heard the the the attention from folks around grocery stores. And so when I worked in DC, DC had a grocery store incentive program that basically allow for um certain fees
that are associated with grocery stores to either be waved or reduced. Um just to attract specifically for for grocery stores. Um and so that's that's another another area that that we're evaluating and making sure that you know that's something that we can potentially
implement. But like you said, uh, one of the first things you said about housing and stuff like that, if we don't have grocery stores or or we don't have a movie theater, a lot of that it's market driven. It's because of the demographics. It could be lack of
density, uh, lack of housing in an area where we lost full-time residents. Well, guess who goes to movie theaters? Are those residents? So, uh, if we want to support our businesses, the best way to do so is through curating better demographics in our city. >> Absolutely. Excellent. Having fun yet?
It's been an exciting few months, right, >> Lenny? >> Yeah. You enjoy living in Miami Beach? >> Absolutely. Thanks to uh thanks to someone's recommendation. >> Incredible. >> I do notice that I don't remember you having gray in your beard during your interview process. >> There you go. >> Well, it doesn't wear it. Well,
>> this city will do that to you, Tanya. >> I know. I'm aware that >> Excellent. So, let's uh I think we're closing out OB 24, OB25, NB7, MB18, NB11, >> correct? We've heard had discussions,
there's been a few motions on that, but >> no. Yep. All good. >> Perfect. >> Thank you, J. >> And thank you, Heather, and the rest of the economic development team. Uh true team effort. Let's uh let's hear from our friends about what's happening at the Filmore. >> Uh MB7. Let me call that real quick.
Feel like >> MB MB7 discuss Live Nation's proposal for the renovations of the Phil Moore Theater. MB7, [Music] >> welcome. >> Good morning, commissioners. Daniel Alzi, assistant director, facilities and
fleet, here to discuss the uh the Fillmore project. Uh just to give everyone a little primer on the history of how we arrived at this spot. Uh in 2022, the GEO bond uh for art and culture was passed with uh $29.1 million
being earmarked for the renovation of the Fillmore. Uh in January of 24 uh we were uh directed by commission to explore a potential new theater to replace the Filillmore. In April of that
year, uh there was a discussion at commission to compare the merits of a new theater versus a full rehabilitation gut rena of the Filillmore. We took this idea and uh many pictures and history
and background to a p virtual public meeting in August of 24 and the residents uh showed no support for a new theater or a gut renovation. So they
resoundingly said this is a fantastic venue and that's a quote. Uh it's already a fantastic venue. So, we explored a more targeted we engaged Live Nation in exploring a more targeted renovation that accomplished two things.
One, it addressed all of the recommendations from the last facilities assessment, which were structural uh mechanical issues that a building of that age is going to have. And it also addressed all of the operators critical
needs which included production gear, acoustics, backstage facilities to bring this theater to what what it should be and it's a worldclass facility. So uh with that we're now considering a proposal from Live Nation to enter into
a partnership for this renovation. Uh, and I will uh hand this over to somebody that requires uh no introduction uh to talk about Live Nation's uh involvement as as a partner to the city
and the history of the theater itself. >> Thank you. I thought it would be helpful and productive for everybody in the meeting and certainly our commissioners to have a little background history. You know,
when I served, Abraham Lincoln was president and we actually had the then Miami Beach Auditorium where there was boxing every
Tuesday night and that's what that auditorium did and Jackie Gleason uh emanated his national show from the Miami Beach Auditorium. Fast forward in 19 that was 1950 that
began 75 years ago believe it or not. And then in 1976 I was part of the commission then that renovated it and we turned it into the they the people called it which was actually the theater
of performing arts where Berishna and Pavarati and that whole wonderful group of celebrities and and acts took place then. And then about uh 14 15
years ago, the city owned and managed that building, decided to outsource it. And through a rigorous uh bidding pro project, they awarded Live Nation the opportunity to manage and operate it.
And they turned around a million dollar a year loss into a $1.2 million gain for the city. about a hundred shows and events appear there throughout the year. When the bond issue passed about three
years ago, uh, and I was part of getting it passed, part of the $150 $150 million bond issue was $29 million for the police in Filillmore. The rest of the money was for all of the other
venues, about over 20 of them around the city to be upgraded, improved from the botanical gardens to Holocaust Memorial to the um art deco center and on and on. After a study that the city engaged MC
Harry, they came back with a laundry list of items from a leaky basement to all kinds of things that were necessary needed. That's why we're here today. And I see this now as a legacy for this city
commission to move forward with a great opportunity, a partnership with Live Nation. You're going to hear today what Live Nation is planning to do with the building to upgrade it, improve it. Then you hear from the financial aspect of
how we can move forward. Hopefully this uh committee will recommend it along with the manager to have the commission full commission deal with it and direct the administration the manager to work out the details so that we can start
construction on this while the hotel is being built to wait much longer I think will be a mistake. Anyway, that's a little bit of the background. Thank you for your few minutes and >> Sure. Thank you, Daniel. >> So, uh, we have a couple of, uh,
representatives from Live Nation here today. Nat Burns, who's the general manager of the Fillmore, does a great job, uh, operating the venue. We have Trevor Ralph, who's the the vice president of operations for Live for Live Nation. And then on the phone, we also have uh, Ben Weeden, the CFO for
Live Nations, and John Erenss, uh, the uh, senior vice president of real estate. Now, just as you're hearing this presentation, really what we're seeking today is an understanding of some threshold terms that we have come to, which include uh a pricing of the
overall renovation. The pricing came in with a a gap in funding of about 5.3 million. uh Live Nation is willing to cover that and a little bit more uh in exchange for a new management agreement
that would commence at the termination of their current one uh for uh duration uh 9 years 365 days. So, the current one, the the last renewal, five-year renewal commences January of 2026,
would end January of 3031 and the new agreement which they will be requesting will begin January 3031 and proceed uh for 9 years 364. So with that, I will
>> let me just if I can just ask. So >> So they're seeking a a renewal of a a 4-year I'm sorry, a five-year management agreement with an option to renew, >> but they're seeking an a 5-year
management agreement effective 2031. >> They're seeking a five-year with a 4-year option with a four three, >> right? But it's a fiveyear management agreement and then a four-year option after after the 5-year management agreement.
>> That is correct. >> And that's and but even though so they don't own the property, this is a management agreement. They're going to be contributing towards the permanent long-term investments. >> They are they are going to be contributing uh and I don't want to
steal their thunder, but 6.5 million, which is 1.2 million over the funding gap to allow us to do a little bit more work. Uh we were concerned about the the campus as a whole because we're going to have this big beautiful uh hotel next door. We want to make sure that we
address the exterior of the the landscaping and whatnot so that the the campus looks uh great in its entirety as opposed to one looking older than than >> So they're going to be contributing $6.5 million towards improvements that we're going to end up owning at the end of the day.
>> Yes, that is correct. >> Okay. That's correct. with that though. Uh PJ, do you have the presentation, the schematics? >> Yeah. >> All right. Thank Thank you very much for your time today. It's great to be back and uh it's been a it's been a road, but
uh we're excited. We're excited with this plan. Um Live Nation actually introduce yourselves. >> I'm sorry. I'm Trevor Ralph, uh vice president of operations for the Southeast for Live Nation. >> I'm Nat Burns. I'm the general manager of the film Miami Beach. Nice. >> Nice to see you all. So, Lab Nation has an in-house uh architecture and
construction design studio. Uh John Erenss is on the line uh with our blueprint studio. He's going to talk you through a little bit of what the design looks like now with the new scope. >> Great. Thank you. Um can you board to the next slide
in this do? Great. Um so I'll talk high level of the scope of work. So, as was just mentioned, um, one of the one of the, uh, critical pieces of the project that was determined as we were going through the process of kind determining what our scope of work was going to be was was a
refresh to the exterior of the building. So, um, so high level, the exterior of the building, we're repainting the entire exterior, um, putting a new marquee on, refreshing the landscaping, and then more structural pieces on the exterior, we're replacing the entrance doors. Um, consider they're past the end
of their life, which I think as all of you know, a lot of the systems in this building are. Um so also then overarching on the building, we're updating the mechanical systems in the building and then going through each one of the existing um public facing toilet areas in this building and upgrading
plumbing and all of the finishes in these toilet rooms to make them functional for you know another 30 years into the future. Um, one of the things that was also mentioned is we really felt strongly that with the geo bond funding that was being put into the building, we wanted
to make sure that we were um providing enough newness when this was reopened so that when people come in, it'll feel like a complete refresh. So, in addition to the the basic geobonding geo bonding funding that was provided for lobby
spaces for new carpet and new wall finishes and new lighting, um we also are going to go in and redo the bars and recreate them and and have all new um bar equipment in those. So, when you come in, the entire thing will be new and fresh and and con consistent with
what we're building now in other markets. So, it'll be um set up for success for the next 20 to 30 years. Um in addition to that, we are um doing a painting and refresh of the office space on this level. And you see in the purple in the upper corner, um we're
going going to um revamp the premium lounge. It's in the upper corner of the building. Um the biggest structural piece that we're that we're planning is in the lower um seating area. There's those current platforms that are in there. We're proposing to take those out
to increase the standing the standing area on the floor a little bit, make it a little bit larger and so it allow us to have uh more efficient seating when we actually do seated events in here. But the remaining um current terrace fixed seating that's in the building will remain but will be completely
refreshed as part of this project. So there'll be new seats in there and the and the interior this will be painted. We're also adding, if you see in the light purple up near the precinium opening of the stage, and we're proposing two um VIP platforms that'll be accessed from the side. Um back of
house, we are proposing some modifications to the loading facilities. Um after the loading dock was modified as part of the hotel construction um we there's just some some further improvements that we think would really help us to be able to um make that loading situation as the best it can be
based on the space that we have allocated. Um so there'll be some minor modifications back there in addition to uh complete refresh of all of our dressing rooms on this level and the offices on this level. Um again all of these areas will get new lighting, painting, carpet flooring. Um, go ahead
and uh get up. Thanks. On level two, again, we're proposing all all new finishes in the lobby space, the main lobby, front facing on this space, and with the dressing room facilities that are on the back of house here. Also, new seating up here in the uh on the second
level. Um, we're proposing to not do any modifications on level three. um because they're just the you know with the delay in the in the geo bond project on some of the projects that were originally envisioned when that money was allocated now that we've had a lot of cost
escalation um since that time period there were a few scopes of work that um we just couldn't fit into the funding and and the level three modifications was was one of those um can you go to that I think that's all yeah this is just this is just sharing what I just said we're we're refreshing
all the seating in this area and the flooring in this portion of the auditorium. >> Um, any highle questions for scope of work here? What we're doing? >> I'll ask a simple one then I'll give it to my colleagues for uh the more detailed ones and I'm actually going a
bit off topic and um how many days per year uh or even if you break it into monthly basis is to feel more activated with programming in the evenings. Yeah, absolutely. So, between
our promoted events, our touring concerts, our uh internal rentals, which can be the valets you see through sometimes here, and special events, we're probably active about 125 to 150 days a year. >> Okay. Incredible. And that tends to be in the evenings from 6:00 or 7:00 p.m. I
know there's probably oneoffs, but in general, 6:00 to 7:00 p.m. Thursday, Friday, Saturday, uh until 10:11 whenever the shows are over. >> Yeah, absolutely. Okay. So, yeah, it tends to be in the evening time, doors around 7:00, shows typically end around 11:00. We do have those outliers
conferences, you know, children's shows, etc., where they might be in the morning or the afternoon and and a handful of shows that might go on a little bit later if it's a comedy act that starts at 9:00 and goes until 11 or 11:30. So, >> and and where I'm going with this is, and I guess this isn't so much a Live
Nation or maybe even Filmore discussion, maybe I'm saying this to our facilities team, John Raar. I'm looking uh you perhaps there's there's a big opportunity because that that is just critical space, you know, for our city. It's in
the heart of our growing downtown arts and culture area. Um are there usages there that could utilize the Filmore that could serve as like a public benefit? Um summer camps. Uh I I don't know, you know, if that
would be a proper usage, but the usage times would be absolutely mutually exclusive with the times the Filillmore tends to operate. Um and just use that uh we're making such a significant uh outlay using taxpayer money, you know,
even more usages for taxpayers. I'm not hellbent on it. I'm just posing that out there into the universe. >> Well, and I'd like to build on that if I might before you guys answer. Um, you know, everybody in the city knows that we're losing our movie theater and there are lots of very understandable business
reasons for that. It's heartbreaking because it's inconceivable that we'd have to go to god aful lavendura to to the mall to go see a movie. Like, it's just unfathomable. So, I'm actually wondering, and I know it's a little bit of a different business model, but the
facility is there. Can you would you be able to host um you know once a week like a Tuesday night firstr run movie or you know have I don't know how we work the logistics of it and but the facility is what's needed the cost is already
there right you've got so it's not like we have to find a new place to have a movie theater we have a theater that's there that is great is it going to be sold out it is not because it's a large capacity venue but could we put together. Uh, and I'm having the
same conversation with all the relevant arts and culture organizations. I've talked to the people at the Banshell. I've talked to the people at the Wilsonian. But you're also an arts and culture anchor institution and you're right in the heart of South Beach, you know, and so arguably it makes the most
sense for you guys to be able to do it. So, is that without um being able to uh elucidate here and now how that would work, is that something you could commit to seriously investigating and working to bring forward, you know, a weekly
movie event, barring unforeseen circumstances or bimonthly movie event, you know, twice a month. um of firstr run or close to firstr run movies that would not make up having an 18 screen firstr run movie house downtown but would fill the gap a little bit.
>> Yeah, absolutely. >> Can we get that? >> If you know anybody that wants to do a film festival, we'd love to talk to them >> because >> I love how concise that was. >> Well, yeah. No, we we absolutely the space is there. The city owns it. We're happy to have any and all conversations around using the space. done movie
screenings in the past and and just as a general know in terms of usage of the building, I just want to mention we partner often with Miami Beach uh Police Department. They frequently have done trainings at our building, you know, if if the building is open, it's available. We don't have a show, you know, we're open to those ideas. >> Okay.
>> Yeah. And and just to jump in there, we we do actually have a movie series in in a couple of our venues and other markets. It's not first run, but it is a uh it's a summertime series where, you know, every Tuesday night, Wednesday night, we'll have we'll have a you know, a movie playing. Uh so we we've done
that in other markets, we can do it here. And then I'd also like to bring up another opportunity, which is, you know, g you know, given that, you know, we're not taking up 365 days. Are there nonprofits that need meeting space, stuff like that around around town where, you know, we we would agree to do
a deal where, you know, x amount of days a year nonprofits can can can use the venue for costs, you know, and, you know, we we wouldn't make a profit. So, I I think there's other other usages we we can um use the venue for uh around town and and happy to explore those.
>> Yeah, I think I think that's a really important conversation point that you um Daniel should really explore to the fullest. I mean, the difference between the what is now the Miami Beach Band Shell, but used to be the North Beach Band Shell, um, and how it was activated
for the last 20 years or so, um, versus how it's been activated now that Rhythm Nation is I always do that. Rhythm Foundation, um, it's not like Janet Jackson's up there programming stuff. Um, Rhythm Foundation
has taken it over. It's gone from, you know, a somewhat more abundant facility um with events once a week maybe to events two, three times a week and all different kinds of events, attracting all different kinds of um demographics and population groups and interest
groups. And it has been transformational to that part of the city. And the reason I say it is because we spoke at length about economic development and the small businesses around the band shell now are blossoming and thriving and because people go see a show but they get a
slice of pizza before or they stop for drinks before they go out to dinner afterwards. And that's what I want for this theater to become. You guys bring in great acts but it's like a big deal when you you know you buy your tickets three months in advance. I want it to be something that every week or every
couple weeks people can just wander into because there's something great going on that like I'll call it the rhythm foundation effect, you know, and and so it will help with what Lyall is trying to do on Lincoln Road because you've got all these restaurants there who are starving for customers. And if you've
got people coming in to see a show, then they can go have a bite beforehand, go get ice cream afterwards. It's the symbiotic economic development ecosystem. And if if you're only using 125 days a year, we've got a lot of room to grow and and I want that to be a big
part of the conversation before you come back um to the full commission. I do have some other questions. Okay. Um so, thank you for saying yes so easily. Um when I toured this, I gosh, it was like a a year, two years ago when I walked through with you and
>> Absolutely. It was probably early 2024. >> Yeah. And we're like, ah, you know, it's it boy, we need some work. I remember it really struck it stuck with me because you were talking about how um it's hard enough to get axe come to the the very tip of South Florida because it's it's a major detour. But on top of that, the
stage lighting was so old and and you couldn't even buy replacement parts that people would have to hire their own rigging and so they it added to their cost tours and it was a pain in the ass and nobody wanted to do it. So is that going to be fixed in this? >> Yes, I think I can speak we can speak
for that. Yes, this would include uh theatrical lighting systems, audio systems, a full theatrical system upgrade. So, that's definitely on the priority list and I appreciate you remembering that. >> Yes. And so, in theory, that will also help engage more than the 125 days a year because now you can say to all
those bands or acts or whatever who said, "I'd love to, but I don't have budget to hire a lighting rig. Hey, we got one and also it's renovated and beautiful and come on down." So, >> absolutely. Yeah. to not have to supplement a deteriorating lighting rig is going to be a huge plus to any act
that comes through here that they can come in and it's already ready for them, ready to go and and it's beautiful in the room. So, >> okay, 100%. >> Perfect. Um, the next question is um you said we there's no longer the budget to address level three upgrades. So, is
the level three experience going to be significantly deficient from level one and two? John, you still on? I >> I'm on. So, um it it I guess it uh I guess significantly less. It's all
relative. Um everything from you know the lobbies on two down will have been completely renovated and the upper will just have a um what's already there. >> You're I mean you're not even going to throw a fresh coat of paint on it? I mean, I'm assuming we could do a fresh coat of paint within the budget that we
have >> and like maybe deep cleaning the cushions of the seats. >> The seats are being replaced. >> They're being but not on the third floor. >> It's the the exterior the the side lobby spaces are the areas we're talking about. >> Okay. >> Inside the auditorium will be completely
refreshed. >> Okay, that's what I wanted to understand. So is there then a possibility of um you know again as we've talked about this is a very expensive place to live and there are a lot of people who are interested in the arts and culture who might not be able to pay full freight for you know front
of the seat house um front of the um the audience seat. Goodness gracious. Um, but could if you could discount the seats on the third floor in a different strata than the the first and second
floor to perhaps offer a deeper discount for folks who might want to see the band or the show without needing all the bells and whistles that you would get from the first and second floors. >> Yeah, that's typically >> I think we I think we can look at that. Um, you know, generally speaking, the
the the third level will be relatively lower priced. Um, but I I think we do we do already have a program in place. I thought um um Nat you might be able to speak to where we do offer, you know, at least tickets um before they go uh on sale or we hold back some tickets for
for part of the community. Um continue to look at that. >> I know that the upper tiers are always less expensive. I mean anywhere you go, but I'm saying can you please look at that in a way that is even a deeper discount. And also there is that program but nobody knows about it. Nobody knows how to access it. Can you as part of
this, Melissa, I don't know if you're if you're here, can we have like a major blast out to the universe that when this is open, the facility is open, residents should put on their calendar, whatever it is, the first Tuesday of every month, they can go and I think you have to go
in person. I don't remember exactly. >> Yeah, absolutely. So, every third Tuesday of the month during our box office hours, uh, Miami Beach citizens, specifically students and seniors, they can come in person to the box office and buy tickets to the next month's shows for at $10. And we do reserve a section
um up in the mezzanine at the current moment uh for those tickets specifically, >> and it's only for students and seniors. >> That's the way it's currently written into uh in that program. Yes. So, I would encourage you to expand it to everybody because that is a self-limiting um or look at how you can
make that a different um you know, Miami Beach residents across the board. Maybe if you're students and and seniors, it's $10. Everybody else gets a 15% discount or fees are waved or whatever. Like, I think we can expand that and I think that will go a long way as well. Um we
want you to be full all the time. We want you to expand the number of days that you are hosting major events that aren't you know some of these bar mitzvah. Not that there's anything wrong with that but you know like let's let's bring this back to what it could be. It's got this incredible name and history behind it and let's make it you
know a destination venue. Um the other question I have is um somebody said something where the design will be consistent with other markets. Um, the interior design will be consistent with the level of what other markets I and I
want to make sure it's consistent with the level of what you have going on in other markets, but the design and I'm sure there will have to be reviews is very specifically Miami Beach. We have very unique history in this theater and
it should be called out and and highlighted and you know Berishnikov and and Muhammad Ali and presidential conventions and who knows what else happened there. I'm not the historian but that should be part of the narrative when you walk in. People should almost
and I'm not suggesting this the fire chief will have my head but nobody should actually stop when they walk in the door because that's a bad thing. But when they are milling around before the show, they should be like, "Oh my god, look at that amazing photograph. That happened here. I had no idea." Like I want it to be this place of of delight
and um respect and discovery, not just for the show they're going to see, but for everything that has happened there before. That's why people don't want it to be torn down is that. >> So yeah, sorry. I I I'll I'll jump in. So 100% we are on board with that. Um
the one of the most important things that we can do is operate a historic venue like this one. Um because it's so ingrained in the community and and to the point everyone was making earlier, what's wrong with this venue? Why would we replace it? So we understand the value that it has in the community and
really want to polish that and bring the history back and we've we've done that at a lot of our historic buildings and plan to do that here. Um, what what I meant when I was talking about that was that the the quality level of what we're doing will be consistent with new venues that we're building throughout the country. Um, so it it will look like
it'll look fresh and new when you come into the space. Um, but it definitely will have a Miami Beach flare to it and tie back into the history. We're we're all about that. the the the other piece that I that I mentioned before that I just want to reiterate is that it's it's really the functionality that that we're
looking to improve with specifically with regard to the bars and the FNB in the building. So, we've since this building was done in 2007 and 2008, um the state-of-the-art on what we do from a point of sales system to how we interact with our guests on food and beverage has changed dramatically and we
want to make sure that this venue is state-of-the-art in that effect when we reopen. So, um, that's what we've incorporated into the project. And finally, one more thing. I did go back and look at the cost estimate after we just talked about the level three. We do have new carpet, new paint on level three. The piece we took out was the new
lighting on level three. >> Okay, that that's better. Um, you know, Nan, when when we did the tour, we were in the the subb and with your own paint and posters that you found, you created this great iconic history of all the not all the shows, but like these
jaw-dropping like you could make a book of just the posters of acts that have come through the Filmore. In fact, I would encourage you to do that because it would sell and it would generate revenue um that you would then share with the city. But um but it it would be a great coffee table book because I couldn't believe it. you're like, "Come
on, let's go see the next thing." I'm like, "No, but wait, but this guy came and this, you know, it's iconic." And so I'm saying like even with, you know, bubblegum and bailing wire, that history was illuminated in such great way, but it was in the in the basement where nobody saw it except for the people who
work there or the bands themselves. So that's the kind of thing that I'm trying to really make sure we get to. And then the the last thing, and I promise this is the last thing. >> Promise. >> Yes. The roof. The roof. The roof. No, sorry. Um, >> you promised.
>> It's part of the thing. Um, what is being done with the roof? Anything or nothing? >> The >> the roof from my knowledge is uh only a few years old. It was done as part of the 2018 um geobond project. So, the the
roof is actually in really good shape. >> Okay. So, does this um it's all part of the same thing. Does does this facility fall within either the Lincoln Road bid or the DDA? Because here's what I'm getting at. You I'm I'm looking at it at
um the screenshot from above and I'm sure it's sound and that's great, but it looks like crap. And so now, as roofs generally do, I mean, they're not aesthetically designed, but now you have a bazillion dollar convention center hotel um that's going to be looking down at this facility. You've got other
buildings that are coming up, very high rent. What can we do within this budget or if there's another funding source from either the DDA or from the convention center hotel or the Lincoln Road bid to repaint the roof and I would
argue put a mural on it, you know, like you've seen, it doesn't have to be a fancy mural, like make it into a swimming pool, make it into make it look like a monstera farm. Make it look like something super basic. We don't have to hire a famous artist, but to make it look like a cool detail as opposed to an
industrial afterthought. >> We'll we'll take that into consideration when we're negotiating the full contract. >> Okay. >> Yeah. What we can what we can do. >> Okay. >> Maybe an LED building would come as easy as >> I will personally thank Fernandez, please.
>> Thank you. Um, so since we're looking at the broad uh business terms, um, what is going to be the distribution back to the city? >> So, we we'll bring uh Ben Weeden, our CFO, back in he was on the screen
earlier. Ben, if you want to speak to the terms. >> So, what what would be the annual distribution back to the city? So, we're looking at a rent increase um of 10%
uh on the cash rent uh going into the extension uh which should be around a little bit over $1.2 million. >> And is is there any annual escalation after that? >> Yeah, we'll have a 3% annual escalator. I believe right now it's 2%. uh and a uh
city search charge would go from a buck 50 to $1.75 um per year. Uh so what happens if CPI if inflation runs higher? Um yeah, I like us to consider uh when we look at
that 3% um I like us to consider indexing uh escalation to inflation. Yeah, normally normally we can put in >> Yeah, we can put in uh 3% uh you know versus whatever the current CPI is. Generally, we cap it at something, but
that's that's certainly something we can look at. >> Okay. And so um we're going to be getting a uh per ticket sir charge to the city. >> Yeah, you already receive a $150. This would go up um by about 25% go up to
about $1.75. >> Ben, correct me if I'm wrong. the the 25% increase takes effect uh January of 2026 and then another 25 cents and 31. >> Yeah, this was contemplated for the
extension but happy to look at an increase in the you know in in the current deal. >> Okay. It is it consistent across uh tickets of all price ranges or or does does the um does the search charge to
the city uh escalate as uh ticket prices go up? >> Uh no, it's been a it's been a a flat a flat per ticket fee uh which which is consistent with what we do in in in other markets as well. >> Okay. I'd like for us to consider uh you
know you know you may have uh a base uh search charge uh back to the city but as certain ticket prices go up perhaps you know a better search charge uh back back to the city uh because we are making a
significant investment as are you but we want to make sure that the terms uh continue to to be in the best interest of of the city. Uh besides that um I like the direction that we're going in. I'm most proud that we are saving this
facility. Uh it's something that our residents were very passionate about. Uh there was potential to do many other things but the potential of saving our history of saving our character of saving a facility that is cherished by
our residents and our taxpayers who are ultimately the owners of the facility. Uh that's important. And the fact that Life Nation is contributing towards that vision of preserving our history, our our artistic facility is something that
that I think our community values and we appreciate it. >> And I just want to say thank you for that. I appreciate it. And I would just also mention many of my staff are Miami Beach residents and they are all as am I fiercely proud of this building and we're very excited to bring it up to par
and and see some improvements there. So, thank you. >> Thank you. So if I can uh chair I think commissioner bot will be making the following recommendation uh to return to commissioner with the favor recommendation of the direct administration enter into formal negotiations of a formal management agreement with Live Nation under the
proposed terms as amended as discussed because there's some slight tweaks. Um so if we can make that motion we'll show you second it handsome gentleman that spoke first. He didn't give his name but you got him on the record. >> I believe I do. I know him well.
>> Okay. So we'll show um all in favor >> I I >> we'll show that item passed two nothing. Thank you. >> Excellent. >> Thank you. >> Thank you all. Very excited for the future ahead and while also honoring our history. So I know you were a big leader in this Commissioner Fernandez. We were
>> kind of going down both tracks and and you really helped uh bring this back. >> So >> it's all teamwork. >> How about uh OB23 the trolley contract. Or you know uh Jason before we get to that can we do NB1 trench 2 of uh geo
bond and then we'll hear the trolley contract. >> Okay. If I can we also have facilities with two leases OB. Yeah. Uh okay the truck sorry uh that would be MB1. >> Good morning.
>> MB1 discuss the issuance of a second trance of the general obligation bonds. MB1. Incredible timing because I think we have a pretty significant geob project set to launch on Sunday. Uh, Commissioner Fernandez, why don't you tell us what's going to happen on
Sunday? >> Oh, Sunday. After decades of waiting, the residents of the city of Miami Beach are finally going to have a beautiful, brand new Beayshore Park. I want to really commend our capital improvements uh department and the geo bond team for
for for delivering on decades of promise. I I I walked I had been there during the construction phase. Um, and of course we were all there when when the when the uh groundbreaking happens. And those of us
who who have been here for a long time remember it being the par 3 golf course then being a site for for debris after after a hurricane. But when you step foot there, I promise you, Mr. Chairman, you're going to fall in love with this
park. It is such a true gem. And I think everyone in this room, everyone in this administration, and everyone at this commission should be incredibly uh proud of what is being delivered is a park like no other. And I can't wait to see you all there on on Sunday. >> And I'd like to build on that. Thank you
for that awesome recap. I also want to commend the advocacy of the Beayshore Homeowners Association. They have been literally fighting in courts for three plus decades to make this happen. And previous administrations
um previous mayors um going back were not receptive and had alter alternate views of what should happen or not happen. And they were relentless in their pursuit of getting what had been promised to them, what had been deeded
to them and what what was the right thing for the community adjacent and to the city at large. And it is going to be like our central park. It is really incredible and it would not have happened had not the residents of
Beayshore led by the HOA. President George Esposito, may he rest in peace. I was on that HOA as a neoight um activist. The there are people who are still on the board who are seeing this
finally come to fruition. Um, and I think it is, you know, this is why activists matter in this city because they get stuff done. >> And I think we need to give a special shout out to Barry Miller, to Adriana Savino, the park designers, uh, really >> and neighbors >> and and and the neighbors, and also
Buslam, uh, who who have been the contractors, a local company here in Miami Beach that took that took on this project, has delivered this project on time. Um, and really when you got there and you walk through that park, you see
all the different areas that it has. We have one of the largest banyan king trees in the southeastern United States. You walk through that and it really is you feel like you're in a completely different park. And you go into each different setting and it feels like you're in multiple different parks
within this area. You have a butterfly garden. You have the resiliency lake that's going to handle tremendous amounts of storm water and surge. Uh you have gym equipments, you have the tennis facilities and the playgrounds. Please guys come out on Sunday because our
community will be proud of its investment in Beayshore Park. >> And there's also the um there's artwork, art and public places um which is going to be amazing. Michelle Ukadona was grew up on fair green and you know the artwork is inspired by that piece of
land. And in addition, um, the kids from, uh, Miami Beach High School advocated for mental health artwork to be incorporated into the pathways. Um, and I'm not sure if that's up yet or that's going to be installed later, but that is also a conversation that is um,
that's going it's it's going to be installed. And so that, you know, it it takes a village. And in this case, it really took the whole community to to bring it forward. I'm so excited. So, anyhow, now that we've all stolen your thunder, >> I'm starting to sympathize with uh former mayor Mattie Bower about what
happens when you hand over the mic. Yeah, >> please go ahead. >> Good morning, TA Vieira, Geobond program director. So, as you know, the 2018 geobond program had three separate categories, uh parks, public safety, and
infrastructure. Um it has 57 projects. of 45 have either been completed or actively underway. The first trunch in the amount of 152 million included 28 million um for the infrastructure category.
Um last year, a little over a year ago in June of 2024, the city commission approved an initial declaration of intent to issue uh trunch $2 in the infrastructure category. Uh the amount was 19.8 many million and that was for
pro to to continue to advance certain projects that needed additional funding such as street paving, sidewalks, seaw walls, tree planting and traffic combing. Um to date 34% of these trunch 2 funds have already been spent or encumbered.
Um there are additional projects in the infrastructure category that need additional uh trunch to dollars to continue and so we've reached the point of expanding on that declaration of intent and we provided a chart as
exhibit one to the memorandum and it includes the list of projects that need the additional funding. These are projects that are either already um already have trunch one funds are in progress and we'll need the additional dollars uh coming up soon or projects
that are under design or planning phases and we'll need additional dollars in the near future. Um so that list uh the total that we're recommending right now is an additional $72.2 million. And just as a reminder,
with this approval, uh taxpayers will not be taxed at this time. The debt service millage will not be increase until the actual bonds are issued in the future. Um with that, I'll open it up to any questions.
>> When would that be? But when would when would that be? >> I could answer that question. uh that so the declaration of intent to issue has specific IRS guidelines and it there's a couple different dates but it usually works out to between 18 months and and 3 years from the initial expenditure.
There's a couple different ways it would work out. So somewhere 18 months and 3 years from when we initially uh and when I am authorized to sign the official uh authorization >> and do we have a sense of what the increase will be? Uh no because that
would obviously depend on what the taxable rate is at um I'm sorry the taxable value uh uh would be at that time. >> Okay. >> Mr. CFO when we issued uh the original geo bond project did we uh undertake any
interest rate swaps the hedgear interest rate exposure? >> No no no none of that. So, what's the impact there given just the different environment we're in in the interest rate world? >> Well, you never know where interest rates are going to be, right? Uh if I
did, I I wouldn't probably be working here. Um but what's interesting always about that is no matter what kind of where you are in the interest rate environment, because some of you know on a 30-year swing with the municipal, it doesn't move a lot. you know, we went
through that exercise when we did like the RDA refunding bonds and things like that. So, we can never time when when those interest, you know, what those interest rate I I believe that we're in a a decreasing interest rate environment. I I feel confident enough to make that statement. Um, so there
could potentially be more >> just versus where we are in today's world versus where when this project was planned in >> Yeah, I think back then I I I >> Are we getting less bang for our buck because of where rates are? >> No. Uh, no, obviously I wasn't with the
the the city at the time. I actually was a a resident on the the vice chair of the geom oversight committee uh at the time but I believe was in the projections on a prior CFO's perspective and then the financial adviser that we were not getting less you know from an interest rate perspective so I I
wouldn't have concern that that area. >> Okay. So what is the general kind of summary of projects that we're looking to uh increase funding to uh that we'll see be seeing vast improvements on. So there are certain projects that we already have, let's call it seed money
in TW1 to to get those designs going, such as Ocean Drive, um the 41st Street, um and then we have these sort of ongoing projects, right? The street paving, the sidewalks, um that are so we're just proposing to just add the
remainder funds and have it available for if and when we need the additional dollars. And then we have um some neighborhood above ground funds for neighborhood projects. So those are tied to infrastructure projects that are nauseio bond. Uh eventually the above
ground funds will be needed. So we just want to have that flexibility to have the project approved as part of you know one of the the the projects to be issued in the future so that we have the ability to tap into those funds. Do we have a heat map of sorts about where
we've already done road paving, sidewalk repairs, and where we're going next? >> We do. Public works department. They keep track uh of where all the street paving and sidewalks have been done so far. We can certainly share that on the LTC. I think >> could you?
>> Yes. >> Yes. >> Excellent. >> Okay. So really what you're just looking for now is an authoration authorization from us to uh release some of these funds, >> right? It just gives us the basically the ability to borrow against ourselves. I officially sign this document and then
the commission uh once they authorize this when we actually go to issue the bonds which may be at a different amount. It may not be all of these dollars needed when I go to issue in 18 months or 3 years. At that time the commission has another crack to be able to say, you know, whether we'll move forward. So yeah, we're we're hoping to get a uh a motion to return a commission
with a favor recommendation to authorize the declaration of intent to issue um in the amount of 72,282,000 for additional charge to neighborhoods and infrastructure geo bonds. >> Yeah. And uh Mr. CFO or maybe Mr. city
attorney. Uh given that this passed in a referendum to approve the full slate of geob projects, are we essentially tied to doing each project as listed or if we go, you know what, it's 10 years later and project X just doesn't make sense
anymore. Uh are we tied into those? um as long as you're within the same general categories and I would need to look at the question itself but uh as a general matter if if you're within the categories you should be fine and Ty is looking at me like she she may want to
>> well I was I think what I would get to more is if it if there was a specific project in the program that the commission didn't want to do I don't think that they are tied to have to do that project at the end of the day the electorate has authorized you to move forward with issuing uh the bonds to do
these projects. But at the end of the day, if the commission decided to we're cancelelling it and we're not going to actually issue the bonds and cancel the projects, I believe that that's technically within your authorization. >> That's just an amendment to the um to the schedule. >> You just you just wouldn't authorize the
issuance of any additional any additional debt. The voters give you that that ability to issue the debt. You always have the control. >> Yeah, that that's accurate. >> Okay. I um are we doing anything in North Beach as part of this tunch? I
know we have a Northshore project >> specific specific. >> Your mic is not working. >> Okay, here we go. Um let's see. We have uh Northshore neighborhood funds $8 million. >> Okay. >> Town center 4 million.
Um other than that it would be >> What are we doing Northshore? >> I'm sorry. What are we doing in Northshore? >> These are above ground fundings ti tying to infrastructure projects that >> one of the one of the neighborhood improvement project is Northshore D if I'm not mistaken. I would have
>> Northshore D. Okay. So that is one of the flood prevention projects that we have in in the works that I think uh starts next year that we're looking design I think >> I believe I believe it's I believe it's in design. It includes water sewer storm water improvements and this helps to
fund the above ground uh portion of that. >> Very good. The one thing that I'm just going going to ask of staff as we move forward with these projects, uh, as someone that is out there in the community right now listening a lot to the residents, let's just make sure that
whatever we do with these projects, we don't touch mature trees. Mature trees, trees that have foliage, trees that have been around for a long time, is then we touch the mature trees and then we use millions of of of geobond dollars to
replace them with twigs. uh that then take decades to grow. So, I love this. I love that we're moving forward with our promises to the voters. I just want to make sure as much as we can, we're not touching the mature trees. >> So, we'll show again Commissioner Bot
making that motion being seconded by uh Chair Magazine. And all in favor? >> I sure it passed. Thank you. >> Thank you. >> Thank you so much. And we can't wait for Sunday. Uh, let's hear for
um OB8. >> How about we we have the two quick leases, right? The city can and then we're going to and Jose then we're going to hear transportation. I have a hard stop at like 110. So, let's hear the two quick leases and we'll probably wrap up
with transportation. Um, I don't know if there will be time for another quick item or two after that. >> There'll be a quick parking one if if possible. We'll minus parking. It'll be quick, but let's let's get if we had. >> Are there any residents here for something specific? >> No. Okay. I always want to be sure that
we accommodate that where we can. So, let's hear the two leases. Let's wrap that up very quickly and then uh we'll hear the transportation. >> Okay. Uh OB8, discuss a proposed new lease agreement between the city of Miami Beach, a Florida municipal corporation landlord, and Little Havana Activities and Nutrition Centers of
Miami Day County Incorporated tenant tenant. uh waving by 57th vote the formal competitive bidding requirements as set forth in section 82-39 of the Miami Beach city code finding such waiver to be in the best interest of the city for the use of approximately 2,690 square foot of ground floor city-owned
property in adjacent playground area of having having approximately 7,646 ft feet located at 8336 street Miami Beach Florida for term of 5 years and one renewal term for 5 years and 364 days at the city manager's sole discretion and further authorizing the
city manager to finalize and execute the lease agreement OB8. Thank you. >> I move the item. >> Thank you. Good morning, commissioners. That could be so uh we have the item we have the item moved. >> Tell me the high level terms.
>> Uh this would be a 5-year lease with a with one option at the uh city's discretion for 4 years 364 days. The financial terms is a dollar. It's a$120 a year, but they do pay all operating expenses. Currently, it's $1,900 a
month. Um, and those are um uh basically common area maintenance expenses that are reconciled uh on a yearly vase basis as needed. >> And what are the termination clauses in there? >> Uh the city does have a termination
clause for convenience. I believe it's 90-day termination clause. I'll check. >> Let's move this forward. >> Okay. >> So, we'll have that. We'll have that second. So, uh, all in favor? >> I. >> All right. We'll show the item passed. The next item, uh, I believe we'll, though they were linked, I think we'll delink. I assume OB15. And we'll just do
the OB16, the lease part. So OB16, a discussion to consider a proposed new management agreement between the city of Miami Beach and the Miami Design Preservation League Incorporated, NDPL, for the use of the property located at 100001 Ocean Drive, the premises, for a
term of 3 years, and with one mutual renewal option of 3 years, and further to approve a six-month extension of the current agreement with MDPL, and direct staff to negotiate a new management agreement with MDPL for continued programming and operation of the Miami Beach Oceanfront Auditorium waving by
57th vote the competitive bidding requirements as set forth in section 8239 of the Miami Beach city code finding such waiver to be in the best interest of the city or if in the best interest of the city to issue a formal request for proposals RFP OB16
>> um um so where we're at here a lot of moving pieces with MDPL who we had discussions previously. We want to give them a chance to come back and uh give us insight and overview of the new direction and leadership of their
organization before we lock into something longer term. I think we're going to have that discussion uh move to the finance committee. It's going to happen in two to three weeks. Uh however, I know we're coming up on the end of this lease here. So, what we're looking to do is maybe give uh a two-month extension or something like
that until we enter into until we have that discussion and then enter into longerterm negotiations. >> Okay. Uh, Commissioner, if I may, thank you very much. We were we were going to request a six-month extension just because uh the lease is expiring
December 31st of this year. And whether we go into a new lease with the existing operator or a procurement process, it will take us some time to get that accomplished. So in order not to come back to ask for a second extension, I'd like to just ask for one six month.
>> So that that's >> with a 30-day termination, right? >> That's better than a threemonth extension. I know it, you know, makes your life easier, but it's not necessarily what my ultimate objective is. Could we get this with a three-month extension or do you need six?
>> If it goes, if it goes to procurement, we will need the six cuz it will take procurement several months to just put their process together. >> So, so my kind of what I'm hearing perhaps is the item goes up and gets retained. So, the only item that we return to commission with favor recommendation is to to for a six-month
extension and then the item would be retained to be heard for the longer disposition. >> Correct. It will be a six-month extension with a a landlord 30-day termination, right? In case we solve anything earlier. >> Okay. Thank the motion that Commissioner
Bot would be making and seconded by Commissioner Magazine if that's acceptable. >> Yeah. >> So, we'll show the item. return the commissioner with a favorable recommendation to approve a a six-month lease extension and the item to be retained and heard uh next month
>> and if the minutes could reflect her enthusiasm as well. >> No, I just I I just want to say for the record I I will not support deferring this any further than next month. And you know it's it's out of courtesy to the item sponsor who for whatever reason doesn't feel like he needs to be here
today or isn't able to be here today that we are not hearing this. But there are a lot of people who are working very hard and this is keeping them um on on pins and needles about their future and and I for one will not support anything that
does not get this item heard in its full extent within the next 3 weeks whenever the next meeting is which is a couple of weeks from now. I I just want to make that very very clear. This is out of deference to the what is supposed to be
the correct process that you um you know you defer to the sponsor although we hear items all the time when the sponsors aren't here to present. So I that so that's the thing. >> Thank you commissioners.
>> Yeah. Thank you. >> I think we have two I think the two ones are trolley and parking that uh we'd like to get heard today. So the first one is >> well how quickly can we hear OB22 because uh I talked to the CFO
beforehand. I do want a more that quickly. Okay, thank you Will. Um I do want a more comprehensive discussion on the underlying item uh which we're going to have. Uh so this I want to open up. I
think you need the ability to maybe purchase some new equipment, but we're also going to retain this item here uh so we can have a more robust discussion about traffic traffic enforcement and how the department is uh managing. >> Absolutely. Thank you very much. Uh William McDonald, parking department.
So, I'll just jump right to the primary reason. Um the parking department would like to enter into a 5-year hardware as a service uh agreement with flash parking for all city garages. Um, as the uh commissioners understand that the equipment that we currently have in our
garages is more than 9 years old. Um, and I I just put it as a if anybody on the uh panel has a 9-year-old cell phone, then you understand how fast technology moves. What we would like to do is put uh this upgrade into our
garages which will be license plate recognition and provide a various number of different credentialed parkers uh different layers of access and validations and bring us into the 21st century. This will allow us to have a full warranty over the entire life of
the program and with only 5 years allows it will allow us to re-evaluate toward the end of the program what new technology can best serve the garages throughout the city. Is there are you coming here because there's a financial component to that? Correct. Is this one of those things
where a public private partnership or anything will be offset? >> Uh no. So the the right now the financial component right now uh it is a $4 million a year uh value over 5 years. Uh we have two ways we can go before we finalize this. We can either purchase it
as a lump sum for a capital outlay. um parking is preferring to move forward in the hardware as a service model. This is essentially just like versus purchasing a vehicle or leasing a vehicle. Um and so we are very much interested in the hardware as a service model, but we are open to either one because the cost over
the course of the 5 years is approximately a 1% difference. Um so therefore, you know, it's negligible when it comes to the greater cost of items. >> Now, will this provide better efficiencies for us to collect revenue? This will provide us efficiencies across
the board to collect revenue to provide access um uh provide greater information, greater uh data on who is using our garage, when they are using it, how they are using it. Um this is going to be a state-of-the-art technology system that will be able to
serve the residents, the employees, uh the businesses. We'll be able to easily provide um validation techniques. if a business wants to provide a parking opportunity to say, "Hey, come visit my business and I'll give you a discount on your parking." >> I guess where I'm going with that though is will we essentially be able to and
somewhat offset the costs? >> So, the great thing is is that the cost will only be approximately $30,000 more a month than we're paying right now for our 99 12y old equipment. >> So, this will easily offset the cost and just bring us into the 21.
>> And the cost is born out of a segregated parking fund, not the general fund. And you guys are doing guys and gals doing very well. >> Yeah. Okay. So I think what would we show is a recommendation uh to return to commission with a favor recommendation and approve the equipment acquisition as
presented and the item would be retained for further discussion. >> Um Commissioner Bot making said recom uh motion uh being seconded by our chair. All in favor? >> I thank you. and then the trolley. Then we'll have
OB23 will be the last item. OB23, request for advisory review and approval of the final selection of negotiated agreement in substantial form as set forth in attachment A with limousines of South Florida Incorporated pursuant to invitation to negotiate ITN204-008-
ND for municipal circulator services OB23. >> Mr. CFO, I know you mentioned uh last item. I know Commissioner Dominguez uh spoke with our office earlier today if we could possibly hear increased elevator permit renewal fees MB3. I'm
not going to make you sit down again, Jose. I promise. But maybe if we could wrap this up by 105 if possible and hear that. >> Sure. I think that I think that last item is quick, too. Thank you. Thank you. >> Okay. Good afternoon, Mr. Chair, committee members. Uh Jose Gonzalez,
transportation and mobility director. Thank you for calling the item. Mr. Chair, uh PJ, if you could uh pull up the presentation, please. And I would I would love to be able to get to the punchline, but there are a few punchlines uh with this item. It's not as simple. So, um we were here before
this body a little over two months ago. And uh well, first let let me backtrack uh because when we were here a couple months ago, there was a question raised as as to why uh such an important item uh you all were not provided briefings.
And the reason is that we are still under the cone of silence. It is lifted for this meeting. I would love nothing more than to brief all of you on this item because it is that important of an item, but it is under the cone and until the contract is is awarded, we can't
really uh discuss it except under a, you know, as a public meeting. So, um couple months ago at the July 16th FK meeting, this body asked us um to explore three different things. The first one was to
verify the emissions data that was provided by the recommended manufacturer of the vehicles uh which is Gillig. The second was to explore opportunities to maximize revenues through advertising. And the third was to explore the possibility of having a mixed fleet
where there would be some electric vehicles as part of the fleet as well as some some of the clean diesel vehicles which are the vehicle that we are recommending. So before jumping into that uh the specifics of that update, I
just want a couple minutes to recap how we got here and uh why our recommendation is what it is. Next slide, PJ. So um very a very important piece of this is the fact that
before before starting the procurement we engaged a transit consultant to look at our system and to make recommendations for improvement and that the purpose of that effort was to inform the procurement. So um a little bit
about our trolleys they serve over three and a half million riders a year. There's considerable high rate of satisfaction from the riders and but however our current trolley vehicles are not equipped for the uh the high
ridership that they that they carry on an annual basis. For example, they are not heavy duty vehicles. They only have one door. Many of them are high floors, not not low floors. So the optimization study actually recommended that given
the scale of our service, we require heavyduty mass transit vehicles, vehicles that have been tried, tested and and proven in the industry in contrast to uh some of these emerging technologies that that we're seeing with
autonomous vehicles uh today. Next slide. So as part of the procurement, three different types of vehicles were offered by all the the proposers. The three are the hometown trolley on the left, the
Gillig trolley in the middle, and the Gillig bus on the right. All three vehicles are low floor for easy boarding and the lighting. They all have double doors. They're all heavy duty vehicles and they all have a passenger capacity of about 24 to 40 passengers and they're
roughly uh the same length between um about 40 ft 35 to 40 ft. Next slide. So we'll start with the first one, the hometown trolley. These are the images of the interior and the exterior of the hometown trolley.
This is really the only authentic trolley type vehicle of the three because it's got it it has a real Koopa. It's got the arch windows and it's got the authentic vintage look. Hometown trolley. Next slide.
This is the image of a Gillic trolley. So, this this vehicle is in essence a Gillig bus that has been dressed up to look like a trolley through a uh a trolley package that's that's offered to give it that look and feel of a trolley
that's consistent with our current branding. Next slide, PJ. And the third vehicle option uh which we were asked to explore by by this uh body is the Gillig bus that's shown here. This is similar to the buses that are operated by Miami
de Miami Dade Transit. Next slide. >> Jose, staying on this slide. Is it just uh visually or are these buses significantly larger than the trolleys? They almost look like the buses at the county where they have the
>> these may be you you are right. Um however, the the Gillig vehicle that we're proposing is a 40 foot. So, I'm not sure if it's the angle of the picture or these are actually they do look longer than 40 ft, but ours would be 40 ft long, which is roughly the size
of our uh South Beach trolley, for example. Okay. So, it won't be any larger than than that. Okay. >> But the gel, from what I saw on the on one of the previous slides, this has the same amount of capacity as the ones that look like a trolley. >> Is that not right? >> Yes. >> Yeah. >> Yes.
>> Okay. Except that this was more efficient in cost. It's about capital cost of $150,000 less per vehicle. >> I remember this from our last FK discussion. >> Yes. Okay. Uh next slide, PJ. So, in comparing the hometown and the Gillig
vehicles, uh particularly in the context of the type of service that that we desire, the Gillig vehicle was found to be superior in terms of quality, durability, and reliability. Gillig as a company has over 130 years of uh experience in the bus transportation
industry in this country. It's uh US US uh made in the USA if you will. Their buses have a proven platform robust and reliable for heavy daily use and they have a longer lifespan of over 10 years. Next slide.
So um one of the things that this body recommended was uh to look at the emissions data for the different types of vehicles. Initially we were looking at CNG, electric, hybrid as as well as as diesel. So we worked with the environment and
sustainability department to review the emissions that were the emissions data that was provided by by Gillig. and the environment and sustainability department and I believe Amy is here today concluded that while fully electric you know we know fully electric
vehicles are or provide the greatest reductions in greenhouse gas emissions and and other pollutants however when when compared with the hybrid and the CNG the benefits are modest they're not they're not significant and uh we'll get
into some of the challenges with uh with uh the electric vehicles but the uh from an emissions t standpoint the advantages the advantages were not there as compared to the clean diesel. Next slide. So uh this body also
recommended that we explore opportunities to increase advertising revenues. We c the city currently has a contract with outfront media to advertise on the exteriors of our trolleys. That contract currently generates about $180,000
a year to the city. There is currently a revenue split which is uh 52.5% city 47 12% uh outfront. So >> is that is that 182,000 in total or per trolley? >> That's in total. That's in
>> I don't think we're charging enough. >> So um the split 52 and 12% city 47 12% outfront. What we're currently doing as part of the negotiations of a new contract is trying to achieve a 60/40 split where the city would keep 60% of
the revenues out front 40% and uh and we're also um triggering inside uh advertising advertising in the interior. However, um according to the industry experts, it's it's really uh nominal what it would generate in
comparison to >> how many Charlies do we have >> currently? 21 in service. To my colleagueu's point here, I'm far from a marketing or advertising expert,
but we're looking at essentially less than $10,000 for a whole year of advertising on a trolley in one of the epicenters of the world. Um, listen, our our incentives
are aligned. So I'm like, okay, it's not as if Outfront is just taking us to the cleaners here because if they're getting such a robust revenue share, they certainly want to maximize their monetization of advertising as well. So it's not that uh perhaps I'm just
totally out of scale or out of whack of what my expectations for advertising are, but you know, we're at uh $1,000 per month for a trolley that is highly visible. Um, if I >> I would like to actually add I don't know if Melissa or anybody from the
department is here. >> Oh, sorry. Um, I it's been a long time since I had to buy media. A long time ago. Um, but what are the the market rate media rates for bus advertising in
ma major metro areas? And how do we compare? And if we're not if that's just what it is, then that's one thing. I would be shocked if it's this low. And if it's not what it is, then we should be aligned with what it is. I mean, it's >> just because we're a a city purveyor of
the billboard, if you will, doesn't mean that we shouldn't be charging the market rate. Like, I I I I don't want to negotiate a contract that doesn't have that data point included in it because we we might be correct, but we might be vastly undervaluing this real estate. I
mean >> if I can just before it is just was confirming with Jose is not all the trolley are wrapped all the time. >> So if it was every all 21 trolley are being wrapped 365 days a year to that point obviously but they can speak a little bit to that but so not every
trolley is wrapped at all times. >> I would bet my bottom dollar that we are not charging market rates. >> Um so right now we're not charging $1,000 per month. Uh it does it has a cost to us. Uh I'm Linda Stevens. marketing and communication uh assistant
director. Um we do charge around $4,000 uh to to advertise on the trolleys. Um I do think that the rate is low compared to Miami date county. Uh we did advertise for art week last year and we pay a significantly higher rate for the
county buses. So I don't have the number right now but >> that's fine. Nobody was expecting you to. So I want before this conclu this this contract is concluded and I don't know how you do it with the con of silence issues but I want us to not only
look at what Miami date county charges because they might be undercharging too. I want to know what Boston, New York, LA, Chicago get for their municipal buses and and and how they structure their contracts. Is it you know all the buses are wrapped all the time? Is it,
you know, if you if you have an advertising an ad up for the year, you get a discount rate. Like I want to emulate best practices because if I, you know, in the ideal world, we didn't we wouldn't need revenues. We wouldn't have to have advertising on the buses. We do need revenues. We do have advertising on
the buses. We're not going to roll that back. So, if we are subjecting our residents to moving billboards, which is what these are, then let us at least recoup the value. And $1,000 a month or whatever it is is absurd. It's not worth it. >> It wouldn't I'm sorry. It wouldn't cover
our cost. So, I would say it has to be more than $1,000. >> Okay. So, this is a huge gap in and and Jose, this is not a this is not a slam against you. This is not your thing. You know, this is not your expertise and you probably wouldn't think about it this
way, but it is an opportunity for us to recoup dollars. Let's get the marketing team involved. Let's find out what the right numbers should be and let's negotiate accordingly, please. Okay. Okay. Um PJ slide nine. Okay. So, um
that's 10. Nine. Okay. Perfect. Um last thing, a very important uh piece here is that our current trolleys are wrapped. They at one point in time they were painted when they were manufactured but then they were wrapped with you know some sort of a vinyl wrapping and what
what happens is that then when you wrap a vehicle with advertising it's a wrap on a wrap and when you take out a wrap the outside advertising wrap many times it damages the uh permanent wrap of the vehicle. So what we're recommending is
that uh the new generation vehicles be painted rather than wrapped. The only caveat is that a newly painted vehicle requires a cure period of six months. No, no advertising can go on it for the first six months. Next slide, PJ.
So, the last um item that this body asks us to explore is the possibility of having a mixed fleet comprised of electric vehicles as well as clean diesel vehicles. So while electric vehicles provide the greatest environmental benefit, there are some
real operational limitations and financial considerations associated with purchasing and operating electric vehicles as part of a mass transit uh fleet. So with um starting with the operational limitations, the the most
important one is that an EV vehicle cannot operate the full 15 hours. At least the Gillig vehicles cannot operate a full 15 hours of service, which is what we're currently providing. Prior to the pandemic, we were actually providing 18 hours of service from 6:00 a.m. to
midnight. Currently, we're providing from 8:00 a.m. to midnight. So that's 15 hours. So in essence, for there to be one vehicle, one vehicle would only be electric vehicle would only be able to operate 15 hours. then that vehicle would have to be taken back to the um
you know back to the facility and another vehicle would have to come to relieve that vehicle which could be another EV or could be a clean diesel. Uh but what happens is that you need almost two in order to have one in service. So that raises the capital
cost. Um then and as well as the operating cost. We nevertheless we looked at three different scenarios. The scenario one was just 21 clean diesel uh vehicles in operation. The annual O andM cost is $14.7 million as currently
negotiated. Under a scenario two, we would introduce one electric vehicle. It would it would just by virtue of adding one EV to the fleet would raise the uh total cost contract cost to $15.4 million. So that's about a $700,000
difference. And then incrementally uh you know there's economies of scale. So on average adding each adding a electric vehicle would add $500,000 a year to the operating cost of the service.
>> Next slide. PJ. So these images >> can you go back to the other one? So, I'm following what you were saying about the incremental cost >> uh annually $700,000. >> Is that in So, the annual cost includes
Okay. The hourly rates, >> right? >> So, the hourly rate for diesel is 127 and then the hourly rate for an EV is 248. Is that how I should think of this? >> Uh, yes. for a mixed fleet. Yes.
>> Um can you also talk about the difference between the trolley system we have now and their polluting output versus what the clean diesel would be because what we have now is awful in
terms of pollution. So, if EV is not feasible because we don't have our, you know, it' be one thing if it just had a run up to North Beach to get recharged or if there were solar panels that you could put on the roof that it's constantly recharging and maybe the next time we need to replace our trolleys
that technology will exist. But I I want to make sure that whatever we're buying is clean, as clean as it can be. So, can you address that a little bit? So even though we're staying with diesel, we're still moving forward in the right environmental >> direction. >> Sure. So um Commissioner, we we we do
have a slide that we can show, but it's it's it's got a lot of numbers that compared our current fleet. Mind you, our current fleet um is is it consists of 2014. >> You tell us. You're right. We don't need to see a slide. You tell us,
>> you know, even if it's more qualitative versus quantitative. Yeah, I I think Jose that the the the new uh recommendation trolley is significantly uh cleaner from an emissions perspective than our existing trolley. Is that correct? >> That's correct. And and the emissions data that we showed actually in the last
presentation, we're trying to get it now. It was based on 2025 new Gillig vehicles. The 2026 is expected to be even even cleaner. So we we couldn't we couldn't locate it now but uh as
compared our a clean diesel as compared to our current fleet would uh represents a 32% reduction in annual greenhouse gas emissions a 91% reduction in nitrous ox
uh nitrogen oxide emissions and an 85% reduction in particulate matter emissions. Y >> that's our current uh vehicles as compared to a new Gillig clean diesel vehicle. >> A new significant improvement >> 2025 and by the time this goes forward
we'll be getting 2026 vehicles which in theory might be even slightly improved. >> Correct. >> Okay. So >> that's that's super important. Um, >> so as soon as you can get the 2026 information >> so we can
we can be able to because I know we're all going to get questions from our constituents saying, you know, we're all all about resiliency and sustainability. Why don't we have EVs? We can explain to them why we don't have EVs. But if we don't also have something to say we don't have EVs, but we for now for this
goround is a significant improvement. >> But we need to be able to back that up. Absolutely. >> And I think that's what resiliency is, right? You're not going to be perfect, right? >> But you need to take steps collectively in the right direction. >> And I think if I think just what we're
hoping to get some direction here to be able to go back to commission to be in the execution of the um of of the contract and and transportation have some more detail on there. And then just as a reminder in discussions with the chair was that this item was to be retained um so that we can deal with
program budgeting for the transportation fund. Um and I think Jose was getting to some of the financial aspects. >> Commissioner. >> Yeah. So just just some questions. Um so with the Gillig in essence um because of the operational costs or the
cost of the vehicle because of the cost of the vehicle we get a better return on our investment uh because in essence we're able to have more vehicles with the Gillig >> the capital cost with a a clean diesel Gillig is is less. So yes, we would be
able in theory to our you know our our available funding would go a longer ways with a clean diesel vehicle because the hourly operating rate is less >> but as opposed to to the trolley designs >> as opposed to the trolley uh vehicles that we have out there
>> as a ours vehicle >> as opposed to what was proposed on the slides. >> Okay. Both are Gillic clean diesel vehicles whether it's the one that looks like a bus and actually that's the next slide uh 11 PJ if you go to slide 11
that shows the two vehicles. So the vehicle on the left is the Gillig clean diesel trolley. The one on the right is a Gillig bus. They're the same vehicle except that the one on the left has a trolley package >> which costs an extra 150,000. >> 50,000 that raises the the the cost up a
bit. Um but Our fleet would be less if we had that would we would have less vehicles uh if if we went with that. >> Yes. In in Yes. >> which would in turn affect our headway. >> Correct.
>> Yeah. Correct. Okay. So, um do you want to then we'll talk about the emissions? Yeah. I think um Amy wants to uh on the record we need to clarify some of the numbers but we'll we'll leave that to the end. So, um, so from a cost
perspective, the added cost of a trolley package, as I mentioned, is $150,000, uh, as compared to the Gillic bus. And that translates to an additional $4.85 uh, Commissioner to to your point, $4.85
per hour per vehicle, which on an annualized basis is $500,000 a year, and over the life of the contract is millions. >> Next slide, PJ. decision. >> However, in summary, when we take into consideration the emissions data, the
emissions data, the design and the branding of the vehicle, including the city's uh brand that, you know, we've had for the past 10 years, and then last but certainly not least, the funding uh the very real funding constraints. Um the administration's recommendation is
the 40 foot clean diesel Gillig lowfloor trolley with dual doors. What's our annual cost right now? >> 9.3 >> $3 million. >> 9.3. >> Um, so for any of these options,
>> where's the money come from? >> I think that's going to be me. Uh, if I can, a couple of aspects of this in transportational. This original contract was uh that set that $9.3 million value. Those rates were set how many years ago? six years,
>> several years ago, >> right? And there was no inflation index to that rate, right? So just one thing to take into account, we know what inflation has done over the past six, seven years. So part of that 9.3 million, right? >> So the difference in that shows a
funding gap of almost $5.4 million. And that is part of the reason why um chair and our discussions was it's important uh to move this forward to move us into new buses. Uh but there needs to be serious budgetary discussions about
closing that funding gap. Now the transportation fund has multiple funding sources uh including some resort taxes, the half penny sales tax and a few other miscellaneous revenues. So that's why there's an interest to have this item go back up to commission uh to allow the
acquisition and the contracts to be executed and the item to be retained uh during this fiscal year so that we can have probably multiple discussions on program budgeting. And we we started this discussion I if you recall at the May budget retreat which was the spotlight of saying here it is we see a
future shortfall coming up. Uh the office of management budgets been working with transportation because when you turn on this bus contract the buses don't show up on day one. They get ordered. There's lead time and this is going to be a two to three year out roll out period of that. So it's all that hit
is not going to happen immediately. Uh so OMB has looked at this and they'll be presenting this in the future but we have probably because the fund itself does have healthy reserves uh but we will be utilizing those reserves over the next couple years. So this is something we should fix now in this
upcoming fiscal year. Uh but we have probably two to four years worth of funding to where we would have an issue where the general fund would have to support this. But we need to look at um from a program budgeting perspective is there opportunities to increase revenues? Is there opportunities to uh
remove some redundant uh or um uh routes or uh services in that fund? So, we need to look at every single service that's being provided, what those costs are and make some possibly hard decisions about uh do we want to curtail, eliminate, cut
back on some of those programs and services and such. Are there, and I don't know if this is best for the lawyer that's uh here for the entity, are there other opportunities where we don't go with the latest and greatest Boston
trolley, right? Instead of the 2026, I is there a 2024 model that would provide some sort of cost savings, right? I I'm just very hesitant. Yes, we need to move forward and start this purchase agreement, but >> I'm hesitant to do so knowing that we
have a $5 million gap that I'm sure we're going to work hard to figure out where this comes from, but where does this come from? >> Well, and also if we're if we're executing a contract based on whatever it was, 21 buses that we would need, but then we're going to cut routes that are
underperforming to save money, then we're buying buses that we don't need. Like, this is this feels like it's a little bit >> backwards. Yeah, >> if if I can to that to that point, if there's ever um let's say one of the routes are eliminated. So there you don't need 21 anymore. You end up
needing 18 or 17. Um is there are options in this contract that allow you to make cancellations in that case cuz the orders go in it's an assembly line, right? So there's multiple ones being done. So just to for the committee's uh edification to clarify that statement
that would that if there's a decision four or five months from now to go from a system that needs 21 trolley to 17 trolley let's say because there was some curtailment is that allowed in this >> the short answer is yes that's actually part of our current agreement as well. If you recall during the pandemic,
before the pandemic, we were operating a higher level of service with more vehicles. After the pandemic, we took some vehicles offline and the contract allows for a sliding scale of different hours of different hours of operation. And um you know, we'll just need to see
with a reduced level of service or fewer. It's not necessarily the hours of operation, it's the cost of of acquiring the buses, right? That's the biggest part of the the cost. And so, well, maybe not, but it's it is a significant part of the cost. So, if if the contract is based because they're they're business people. They're not doing this
for out of the goodness of their heart. So, they're advertising the cost of the contract because they know they're going to get an order for 21 buses and they price the 21 buses at X. So, if we say, yeah, okay, the contract, we're going to sign the contract with 21 buses at X, but 6 months into it or a year into it,
we're like, actually, we only need 17 buses. Will that still be at X or are they going to jack up the price, the per unit price to try to get to their full amount that they had budgeted or that they had expected? >> Right. The hourly rate is locked in. Right. >> I'm not talking about the hourly. I'm
talking about the the cost of buying the bus. >> The the I understand your your question, Commissioner. I think yes, the capital cost is fixed in the contract. There are uh there's a provision for different levels of service. If we believe that we
no longer need a fleet of 21 and we can do with less, the the contract has a provision where the city would have to pay the unavertised cost of the vehicles because that's exactly what I'm getting at. So my understanding is that even if
we say, you know what, we're going to cut these two routes, we now only need four 17 buses instead of 21. We still have to buy pay the full amount of the purchase price of the 21 buses >> at this time or or we sign the contract.
>> We're talking about we're going to find um a way to mitigate the costs, right? And it might be that we drop a couple of routes. In that case, we might not need 21 buses. We might only need 17 to service those routes really well. We're paying X number of dollars for 21 buses.
So if we now say in a year from now, you know what? I know you haven't built all 21 buses, so you haven't put any money out, but we only need 17 buses. So we we will pay 17 times the cost of each of the buses that we negotiated. But what
they might say is no, you need se to pay 17 times the cost of what you of what the entirety I don't know how to do. You understand what I'm saying, Jess? You can explain. >> We no longer need 21. We only need 17. >> Right. So, but we've already put that
large upfront capex out. So, >> and so, so, but we h we wouldn't have necessarily put that large capex out because we would be paying as we go, but they could conceivably jack up the pricing of the remaining buses to equal the total amount of revenue they would
have generated by selling us 21 buses, >> right? Is there a penalty for cancellation of the number of buses that are needed? >> Right. So 6 months from now we do program budgeting and it's determined that you have a route system that only needs the 17 buses. Do we have to pay
for those four and we can cancel those? >> I I think that's a point that that um we'll need to negotiate a little further. Um because I don't think that specific scenario is contemplated. I know the the op, you know, the uh selected vendor is here today. I'm not
sure if you want to hear from them, but they do need to they do need to order the vehicles and there's an upfront capital cost associated with that. I don't know if they would get that money back or some of that money back. >> No. So, look, I I I know making Mike, do you want to come to the podium? Um, if
you don't mind with through the chair. >> Look, I know building sneakers is not the same as building buses, but at the end of the day, it's building widgets, right? So, we are not building custom buses. We're not even talking about wrapping them necessarily differently. So there's no mold amortization, there's
no capital startup amortization, there's no factory production startup costs other than you're running another line, right? So so we don't have to amortize those costs for for the company because they're making these buses for lots of other people. So what we are doing is we
are paying for the widgets that you're making for cities all over the country. So there should be no uh penalty for cancellation because you didn't have to make new molds. You're not retooling a factory line. You're not hiring new people because we're not getting them all at once. We're getting them as a as
they roll off the factory line. So, there's no extension of the the factory to be able to handle this capacity. If we had said, "We're going to need 21 buses and we need all 21 of them tomorrow and then halfway through we're like, "Oh, just kidding. We need 17."
That's a different conversation because you would have paid extra people, built different lines, you know, outsourced some stuff. But that's not what's going on. So, not to put you on the spot, but you know what gives, man. >> So, uh, for the record, uh, Mr. Chair, commissioners, Mike Orene with LSN Law,
we represent LSF. Um, all your points are very valid points. I agree with absolutely everything you said. Um, what I can tell you is that the standard, well, number one, these vehicles are in very, very high demand, right? um which
is why you have um there's quite a lengthy period before all the vehicles are delivered. Um the standard contract with Gillig requires a 20% non-refundable deposit. >> That's right. >> Um we have secured what we think is
favorable pricing. Um we have convinced Gillig to extend that pricing which they typically will only guarantee for a period of I think it's up to 90 days. At this point, we've we've asked them to extend it for an additional period of about 90 days, right? So, we have we
have negotiated as hard as we can in in in the city's interests. Um whether there's any additional give there, we can go back to Gillig um to to to see if that's a possibility. But again, I I I do think it's worth mentioning that um
we are now already in sort of one of those extension periods. uh they gave us quotes on the pricing quite a number of months ago and every time we've gone back to them because we've been at this for some time already. Every time we go back to Gillig there's an effort to increase the price, right? So I I you
know we are happy to go back to them. We are happy to see if there is if they're open to um sort of adjusting that non-refundable deposit language. I I'm not I'm not worried about the non-refundable deposit that will come
because we are going to be buying at least 17 for the sake of argument at least 17 buses right so that will be covered it's on the back end if we find that we no longer need 21 do we still have to pay 21 even though we're not taking delivery of 21 and by that I mean
that the cost that they would have realized by those extra four buses then gets baked into the you know it just is the cost whether you spend it on 21 buses 17 buses, it doesn't matter. It is the total cost. That's my point because that is not that's not that's not a
correct way of conducting business. >> Understood. And so I if I'm understanding correctly, I think what you would be suggesting is to take the 20% non-refundable deposit for the four buses that are canceled and apply that toward the capital expense for the remaining 17 buses, which which is why
I'm going back to the non-refundable language. It's something we are happy to take back to them. Well, either way, what I'll say is um our next FIRK meeting, Mr. CFO, is the 17th, something like that. It's actually before our next commission meeting.
>> We're not going to close this out today because listen, it would be easy to sit here and say, "Yes, let's refer this to the full commission, but >> we're not there yet." And I need to understand like how do we ever get there where I mean we've we've been talking
about this since May that we have a $5 million gap between what our current operating expenses are versus what our proform operating expenses are. We can't just say well we'll we'll make best face e efforts to increase revenues for our transportation department when we talk
about advertising that's rounding ours right 200,000. Okay, maybe we get $400,000. That doesn't get us there, right? >> And do we charge I I should know this. I I don't remember. We >> No, we don't. >> So So that is another hard conversation
that we have that maybe maybe it's it's a dollar a ride, which is not a lot of money, but for some people, you know, every dollar counts. But these are the conversations that need to be had. And I understand that it's a little bit of a red herring to say, "Oh my god, the costs have gone up so much. What's going
on?" because the last contract didn't reflect the the increase the CPI increase which you know I I would like to think that going forward every contract that we negotiate I don't know why it hasn't been done this way but every single thing we negotiate and pay for over time should have CPI built in
so we're not having these conversations like oh my god you know prices have gone up you know a bazillion% well they have actually gone up a bazillion% and now we're just playing catchup >> so yeah uh so if we can let's we're going to hear this at our next FK as well. We're not in a position to move on
this because it'd be deration of duty to just move this along knowing that we have a $5 million shortfall that we need to make up some more. >> What we can what we can do if that's the direction is we can maybe make it time. This is going to be a longer more in-depth discussion is and it sounds
like transportation has some discussions to do. Uh but we can make this right at the beginning time certain and uh because I think it's a very important item that it has an expiration of some some aspect. >> I mean we're going to you know hopefully >> dedicate as much time as we can still have next commission meeting we're on
the same timeline. We just need to hear to furk again. But it's also we need to work with city staff >> for you all to help us understand where this money is going to come from. >> Yes. Because the the idea is if I I would assume just top level that it
would be a mix a blend of probably some some service reductions and general fund uh surpluses and uh or transfers I'm sorry uh and some other perhaps service cuts. >> Yes. Does uh Okay. So we'll hear this uh >> social discussed in the return and then
we have that last item. I did talk to the directors be very quick. >> Very quick. >> Yep. >> Just just two quick points. Thank you, Mr. Chair. Number one, I conferred with my client and confirmed that the pricing we received from Gillig expired in August. We got an extension through October, which is highly unusual. So
we're not sure they would give us an additional extension, but we do have timeline, >> right? We have an opportunity to reconvene at FK before the October 29th commission meeting. And then the second point is just for clarification, we were talking about 21 trolleys. There's also a requirement of 20% spares, right? So
we're really talking about 26 trolleys, right? That's the the the budget we're talking. >> So are we or or >> that's what the assisting >> 21 trolley in service and then there's a spare ratio of 20%. >> Correct. So, so the the total number of trol the the the sort of budget we're
discussing assumes a purchase of 26 trolley which is 21 in service plus >> but that would be the the same ratio. So if we only need 17 then we'd actually be buying 21 for the car >> either way. Let's have this more robust discussion next uh in a couple of weeks
but from a high level we need to figure out whether it's $3.5 million $4 million $5 million where we're going to come from before we make a recommendation. Understood chair and we'll show that it's time certain right of >> you want to say something quick >> but then we invite you and encourage you
to come next month where it's bus thank you uh thank you Mr. And this is super important as you know. Uh I think one question that you probably should try to answer today is are you going to go with that old-fashioned look or you going to go with a more modern bus that might uh encourage more people to ride it and it's a more comfortable bus as well. And
I just want to point out in here that the city in their own note uh pointed out that there was no data from the manufacturer to back up their claims on the efficiency gains um and the emissions gains from the clean diesel. I think that is another important thing that hopefully you come back with. Yeah.
>> Uh to match the context. And just for the record, Matthew Ghan off 125 Jefferson Avenue. Thank you so much. >> Thank you for all you do for our community. Matthew, >> thank you. >> Y >> um and we'll hear the elevator permit fee. Mr. City Attorney, could you record me as a yes for that vote? And
>> MB3, discuss proposed amendments to the city code increasing fees charged for the temporary use permit renewals for elevators. MB3. >> John Norris, public works director. >> Please go ahead. >> Yep. We're bringing this item to you because we have temporary use permits
for elevators. Once an elevator is substantially complete, it is safe to operate. We offer a condition or a temporary use permit for the amount of $2,90. To extend that is $162 for each time. So, what we find is
people won't finish their elevators. They'll keep paying the $162. They have plenty of time to get the punch list done. If we raise the renewal for a temporary use, it will encourage people to actually get the elevators complete. >> Yeah, we're looking for a motion to
return to commission with a favorable recommendation to approve the fee adjustment as discussed. >> Could you just clarify what the fee adjustment is? >> The fee adjustment goes from $162 for a renewal to $290, which is the original fee for a temporary use. So essentially, you'll get a temporary use
every three months if that's what you choose. Is there a case and I know we need to leave but is there a case where you might need one renewal just to fix stuff and then after that it goes straight up >> or is that not how it's actually being >> like I don't want to penalize the people who really are trying to get it done and
you know like during co there were supply chain issues. So I would be in favor of doing a one-time renewal to give you an extra three months and then after that you have to go up. >> Okay. >> Yeah. I sounds fair to us. So, we'll show it approve the fee adjustment as amended.
>> Uh, we'll show Commissioner Bot uh making the motion. Commissioner Magazine. Uh, all in favor? >> I show the pass. >> Thank you. >> See you guys Sunday.