[00:00:02]
GOOD MORNING EVERYBODY.UH, WELCOME TO THE FRIDAY FINANCE ECONOMIC RESILIENCY COMMITTEE, UH, MEETING.
I WILL TURN IT OVER TO OUR CFO AND THE STAFF THAT IS HERE.
I HAVE, UH, WITH ME, MY COLLEAGUE, VICE MAYOR, TANYA BOT, UH, WE HAVE TWO, UM, WHICH GIVEN THE MAKEUP OF THE COMMITTEE IS NOW THREE.
SO WE'LL GO AHEAD AND GET THE MEETING STARTED.
NATALIE, I'LL TURN IT OVER TO YOU AND JASON FOR SOME ANNOUNCEMENTS.
TODAY'S MEETING OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE HAS BECOME, HAS BEEN SCHEDULED IN A HYBRID FORMAT WITH A QUORUM OF THE COMMITTEE PHYSICALLY PRESENT AND REMAINING MEMBERS, STAFF AND MEMBERS OF THE PUBLIC APPEARING EITHER IN PERSON OR VIRTUALLY VIA ZOOM.
IN ORDER TO PARTICIPATE IN TODAY'S MEETING, VIRTUALLY MEMBERS OF THE PUBLIC MAY DIAL 1-888-475-FOUR 4 9 9 TOLL FREE.
AND ENTER THE WEBINAR ID, WHICH IS 8 6 3 6 0 5 9 5 4 6 2 POUND, OR LOG INTO THE ZOOM APP AND ENTER THE WEBINAR ID, WHICH AGAIN IS 8 6 3 6 0 5 9 5 4 6 2.
ANY INDIVIDUAL WISHING TO SPEAK ON AN ITEM, MUST CLICK THE RAISE HAND ICON IF THEY ARE USING THE ZOOM APP, OR DIAL STAR NINE IF YOU'RE PARTICIPATING BY PHONE.
AND JUST A COUPLE OF ANNOUNCEMENTS.
[OB 4. DISCUSS A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS APRIL 19, 2024 MEETING, TO ACCEPT THE CITY ADMINISTRATION’S UPDATE ON THE CITY OF MIAMI BEACH PARKING DEPARTMENT ENFORCEMENT EFFORTS]
[NB 9. FINANCE AND ECONOMIC RESILIENCE COMMITTEE DISCUSSION AND TAKING ACTION ON THE FAVORABLE PUBLIC SAFETY NEIGHBORHOOD QUALITY OF LIFE COMMITTEE RECOMMENDATION TO EXPAND THE TREE CANOPY IN NORTH BEACH THROUGH A MULTI-DISCIPLINARY FIRM FOR TWO (2) MAIN THOROUGHFARES SUCH AS ABBOTT AVE OR DICKENS AVE AND EXPLORE PARK VIEW ISLAND WITH ASSOCIATED FUNDING.]
[NB 10. REFERRAL TO THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE TO DISCUSS THE APPROPRIATE MECHANISM TO FUND A TRANSFORMATIVE TREE CANOPY PROJECT IN TARGETED AREAS THROUGHOUT MIAMI BEACH.]
[NB 11. REFERRAL TO THE FINANCE AND ECONOMIC RESILIENCE COMMITTEE TO DISCUSS/TAKE ACTION TO FUND EXPANDING THE NORTH BEACH TREE PLANTING PILOT PROGRAM TO ADDITIONAL PARKING SPACES LOCATED AT 78TH, 79TH, AND 80TH STREETS OR OTHER POTENTIAL LOCATIONS]
ITEM OB FOUR WILL BE DEFERRED UNTIL MAY, AND ITEMS MB NINE, 10, AND 11 WILL BE LINKED WHEN HEARD.SO, UH, LET'S GO AHEAD AND GET STARTED.
UH, IF WE COULD CALL OUR FINANCE COMMITTEE UP, WE'RE, WE'RE GONNA HAVE A PRETTY IMPORTANT DISCUSSION HERE.
UM, WE'RE GONNA GO WITH NB ONE, UH, TAMIKA, IF YOU WANT TO, UH, ACTUALLY, YOU KNOW, CALL IT IN.
WAIT FOR COMMISSIONER FERNANDEZ FOR THIS ONE.
JUST, UM, A LITTLE LEVITY IN A SERIOUS MEETING.
I FEEL LIKE WE'RE DOING A WEEKEND UPDATE ON SNL
COMMISSIONER BOT, UM, GIVEN YOU ARE HERE AND PRESENT AND, BECAUSE IT'S ALSO A GOOD ITEM, LET'S, UH, LET'S TALK ABOUT MB 20.
[NB 20. DISCUSS FUNDING NEEDS FOR: 1) BICYCLE LANE IMPROVEMENTS AND SAFETY ENHANCEMENTS IDENTIFIED IN THE BICYCLE-PEDESTRIAN MASTER PLAN (BPMP) PROJECTS IMPLEMENTATION MATRIX; 2) RESTRIPING AND/OR REPAINTING GREEN BICYCLE LANES CITYWIDE; 3) DRAINAGE IMPROVEMENTS ALONG THE BEACHWALK TO ADDRESS PONDING; 4) POTENTIAL WIDENING OF THE BEACHWALK AT CRITICAL CHOKEPOINTS; AND 5) PURCHASING SOLAR-POWERED ELECTRONIC SPEED FEEDBACK DEVICES AND DATA COLLECTION SENSORS]
DISCUSS PLEASE HAS TO BE RECOGNIZED.DISCUSSED FUNDING NEEDS FOR BICYCLE LANE IMPROVEMENTS IN SAFETY ENHANCEMENTS IDENTIFIED IN THE BICYCLE, PEDESTRIAN MASTER PLAN PROJECTS, IMPLEMENTATION MATRIX, RETRIP, RETRIP, AND OR, UH, REPAINTING GREEN BICYCLE LANE CITYWIDE DRAINAGE IMPROVEMENTS ALONG THE BEACH WALK TO ADDRESS PONDING POTENTIAL WIDENING OF THE BEACH WALK AT CRITICAL CHOKE POINTS AND PURCHASING SOLAR POWERED ELECTRONIC SPEED FEEDBACK DEVICES AND DATA COLLECTION SENSORS MB 20.
JOSE, THANK YOU FOR BEING HERE.
I'LL TURN IT OVER TO YOU IN A MINUTE.
BUT THE REASON WHY, UM, THIS IS REALLY IMPORTANT.
UM, NOT THAT EVERYTHING ELSE ISN'T, BUT THIS IS A PROJECT WE'VE BEEN WORKING ON FOR GOING ON A YEAR AND A HALF NOW.
UM, AND WE'VE MADE SOME GOOD HEADWAY AND WE ARE GOING TO CONTINUE MAKING GOOD HEADWAY.
BUT PART OF THAT IS, YOU KNOW, THERE ARE LOTS OF DIFFERENT TYPES OF PROJECTS THAT WE'RE ADDRESSING.
SOME OF IT IS SUPER LOW HANGING FRUIT THAT WE CAN JUST DO.
SOME OF IT IS MORE CHALLENGING, UM, AND REQUIRES STATE INPUT.
UM, THIS KIND OF STUFF IS IN BETWEEN, WHICH IS, UM, LOW HANGING, BUT WE NEED FUNDING TO COM ACCOMPLISH IT.
IT IS FINISHING THE LAST BLOCK OF BIKE LANES THAT ALREADY EXIST.
IT'S PUTTING IN, IT'S PURCHASING THE DATA COUNTERS THAT WE NEED TO MAKE INFORMED DECISIONS.
IT'S, IT'S A BUNCH OF BITS AND PIECES LIKE THIS, UM, THAT JOSE CAN GO THROUGH MORE DETAIL THAT WILL TAKE A, MAKE A BIG STEP FORWARD IN WHAT WE'VE BEEN WORKING ON, UM, AS WE DO MORE OF THE SORT OF HEAVY LIFTING STUFF.
AND I KNOW IT'S PREFERABLE TO GO THROUGH THE, UM, THE BUDGET PLANNING PROCESS FOR NEXT YEAR, BUT IF WE DO THAT, THEN WE CAN'T EVEN START MAKING THESE FIXES UNTIL 2026.
SOME OF THEM REQUIRE VETTING VENDORS AND GETTING SAMPLES AND DOING THINGS LIKE THAT.
SO THAT WOULD DELAY THE PROGRESS ANOTHER FULL YEAR AND A HALF.
AND I THINK THAT, UM, GIVEN THAT MICRO MOBILITY AND PUBLIC SAFETY OF PEOPLE TRYING TO GET AROUND IN VEHICLES OTHER THAN CARS OR THEIR OWN TWO FEET IS ONE OF THE HOTTEST TOPICS IN THE CITY RIGHT NOW.
I, I WOULD URGE EVERYBODY TO, UM, SUPPORT MOVING THIS FORWARD.
THANK YOU, MADAM VICE MAYOR, MR. CHAIR, JOSE GONZALEZ, TRANSPORTATION AND MOBILITY DIRECTOR AND INTERIM PARKING DIRECTOR.
SO VICE MAYOR, AS YOU, AS YOU POINTED OUT, THIS ITEM IS PRETTY COMPREHENSIVE.
IT INCLUDES SEVERAL COMPONENTS.
UH, WHAT WE'VE DONE IS WE'VE, YOU KNOW, CATEGORIZED THOSE CON UH, COMPONENTS.
[00:05:01]
FOUR OR FIVE DIFFERENT CATEGORIES.I'LL START WITH THE, THE FIRST ONE, WHICH IS, UM, SORT OF A LOW HANGING FRUIT.
WE CONDUCTED AN ASSESSMENT CITYWIDE OF ALL THE, UH, BIKE LANES IN THE CITY, ALL THE, ALL THE STRIPING, THE SYMBOLS ASSOCIATED WITH BIKE LANES.
AND WE'VE GOT SOME BIKE LANES OUT THERE THAT ARE IN NEED OF REPAIR, REFRESHING, REPAINTING.
AND SO WE ACTUALLY, EXCUSE ME A SECOND.
SO WE, UM, WE IDENTIFIED, WE IDENTIFIED THOSE, AND THOSE ARE PART OF THE ITEM.
BOTTOM LINE IS THAT WE ESTIMATED THAT THE COST OF REFURBISHING THE EXISTING BIKE LANES THAT WE HAVE IN THE CITY IS APPROXIMATELY, WILL BE APPROXIMATELY $375,000.
AND THAT'S MORE OF A MAINTENANCE, UH, NEED, WHICH WE DON'T HAVE CURRENTLY IN OUR, IN OUR BUDGET.
UM, THEREFORE IT WOULD REQUIRE SOME, SOME EITHER A BUDGET AMENDMENT TO BE ABLE TO INCLUDE THAT IN THIS YEAR'S BUDGET, OR WE CAN WORK THROUGH THE BUDGET PROCESS AND, UH, TRY TO SECURE THE MONEY FOR NEXT FISCAL YEAR.
IT COULD GO, YOU KNOW, EITHER WAY.
BUT THOSE ARE, THESE ARE MORE MAINTENANCE TYPE OF NEEDS WHERE WE HAVE A CONTRACTOR READY, WILLING, AND ABLE TO JUMP ON THESE.
CAN I ASK A QUESTION BEFORE YOU, UM, PROCEED IF YOU, SO IF SOME OF THIS STUFF IS MAINTENANCE, UM, WHY DON'T WE HAVE A BICYCLE INFRASTRUCTURE MAINTENANCE LINE ITEM ON THE BUDGET? WELL, UM, VICE VERSA, VERY GOOD QUESTION.
AND WE, WE DO, BUT NOT TO THIS, NOT TO THIS EXTENT.
WHAT'S HAPPENED IS THAT SOME OF THE BIKE LANES ARE TIED TO CAPITAL PROJECTS, UH, WHICH HAVEN'T COME TO FRUITION YET.
UM, FOR EXAMPLE, THERE'S A, A BIKE LANE ON WEST AVENUE FROM ABOUT 17TH STREET DOWN TO TO 16TH STREET.
UM, THAT WAS ACTUALLY DONE WITH PAINT THAT WAS DONE A FEW YEARS AGO WITH PAINT IN HOPES THAT THE WEST AVENUE PROJECT WOULD BUILD A WHOLE NEW BEAUTIFUL BIKE LANE.
AND THEY'RE COMING, BUT THEY'RE NOT THERE YET.
AND WHAT'S HAPPENED IS THAT THAT PAINT REALLY WAS NOT INTENDED TO, TO, UH, BE THERE AS MANY YEARS.
IT'S BEEN AT LEAST, I WANNA SAY, FOUR OR FIVE.
AND IT'S, IT WASN'T INTENDED TO BE THERE THAT LONG.
SO IT'S IN, YOU KNOW, VERY, UH, POOR SHAPE.
UM, AND SIMILARLY, WE HAVE OTHER, OTHER BIKE LANES IN, UH, SIMILAR SITUATION WHERE THERE'S ALSO BEEN A LOT OF UTILITY WORK AROUND THE CITY, ROADWAY CONSTRUCTION WORK THAT HAS, UH, FOR SOME REASON, A LOT OF OUR BIKE LANES JUST HAVE A LOT OF PATCHES THESE DAYS.
AND IT WAS, THAT WAS NOT ENVISIONED BACK WHEN THEY WERE, UM, YOU KNOW, BACK WHEN THEY WERE INSTALLED.
BUT THEY AFFECT THE QUALITY, THE, THE APPEARANCE, THE AESTHETIC OF THE BIKE LANE AND THE, THE RIGHT ABILITY OF THAT BIKE LANE AND THEREFORE NEED TO BE, NEED TO BE RESTORED, REPAINTED, RE, AND REFURBISHED.
ONE IS SEPARATE FROM THIS CONVERSATION ABOUT ALLOCATING THE FUNDING.
CAN WE, GOING FORWARD INTO THE 26TH BUDGET PROCESS, PUT IN A LINE ITEM FOR MICRO MOBILITY MAINTENANCE ISSUES? UM, WHICH, YOU KNOW, WE DON'T THINK WE NEED BECAUSE PROJECT X IS GONNA COME ONLINE AND TAKE CARE OF THE ISSUE.
BUT WE KNOW, AND EVEN AS WE HAVE, UM, SORT OF UNPAUSED THE PAUSE AND WE HAVE A LOT OF PROJECTS COMING THERE, IT, IT ALWAYS TAKES LONGER THAN WE ANTICIPATE SOMETHING ALWAYS HAPPENS.
SO I THINK IT IS PRUDENT FOR US AS A CITY TO PLAN THAT WE ARE GOING TO NEED TO MAINTAIN AND UPGRADE OUR, OUR BICYCLE LANES, UM, IN, IN A MANNER DIFFERENT FROM THE WAY IT'S BEEN IN THE PAST BECAUSE IT'S A MUCH HIGHER NEED NOW AND IT'S GOT A LOT MORE ATTENTION AND A LOT MORE PEOPLE LOOKING TO USE THIS AS AN OPTION.
SO THAT'S NUMBER ONE AS WE GO FORWARD INTO THE NEXT BUDGET PROCESS.
AND, UM, UH, I LOST MY SECOND POINT.
UM, THE SECOND POINT WAS, UM, AH, AND YOU KNOW, THIS IS A PET PEEVE OF MINE BECAUSE WHEN WE GO ON OUR, OUR WALKS OR, OR PROBLEM BLOCK OR BLOCK PARTY WALKS, WE TALK ABOUT THIS ALL THE TIME.
WHEN UTILITIES COME IN AND OR WHOEVER COMES IN AND DOES REPAIR WORK, THEY LEAVE UNFINISHED BUSINESS.
NO, NO, NO, WE'RE NOT DONE YET.
AND I KNOW THERE'S A PROCESS WHERE, AND THIS IS NOT DIRECTED AT YOU, BUT, AND, UM, I KNOW THERE'S A PROCESS WHEREBY THE PERMIT ISN'T COMPLETELY CLOSED OUT UNTIL, UM, SOMEBODY APPROVES EVERYTHING.
BUT SOMEHOW, WHETHER OR NOT IT'S BECAUSE A PERMIT ISN'T ACTUALLY CLOSED OUT BECAUSE THERE IS STILL SOME WORK OR WHATEVER, BUT THERE ARE COUNTLESS EXAMPLES OF UNFINISHED, LOUSY, UM, WHAT LOOKED TO BE TEMPORARY PATCHES LIKE FOR A WEEK WHILE THE NEW PART COMES IN, BUT END UP END UP BEING YEARS.
AND SO, SIDE NOTE, WHAT'S WRONG WITH THAT PROCESS THAT THAT ISN'T WORKING CORRECTLY? AND AND MAIN POINT IS
[00:10:01]
WE MUST GET THOSE PEOPLE WHO ARE DOING THAT WORK TO RESTORE THE BIKE LANES IF THEY HAVE DESTROY THEM OR PARTS OF THEM.RESURFACE THEM SO PEOPLE AREN'T FLYING OFF THEIR BIKES 'CAUSE THEY DON'T SEE A, YOU KNOW, A BAD EDGE.
UM, I MEAN, I DON'T KNOW HOW IT FEELS ON, ON YOUR SCOOTER, BUT I'M SURE YOU'VE TAKEN A FEW, A FEW, UM, UNEXPECTED S JOLTS.
I I WOULD REALLY STRONGLY ENCOURAGE SUPPORT FOR THIS ITEM.
WE CAN'T KEEP KICKING THE CAN DOWN THE ROAD.
THESE ARE SMALL, RELATIVELY SMALL DOLLAR AMOUNTS TO DO, UM, THINGS THAT WILL HAVE A GOOD SIZE IMPACT.
UM, UH, MR. CFO, WE'VE TALKED ABOUT THIS FOR MANY YEARS, UH, EVEN BEFORE, YOU KNOW, I ASSUME THIS POSITION, IT'S CONCERNING THAT ROUTINE ANNUAL MAINTENANCE ISN'T FUNDED IN OUR ANNUAL OPERATING BUDGET.
AND WE'VE STARTED CHANGING FINANCIAL POLICY.
WE BORROWED TO REPAIR A LOT OF THE ANNUAL JUST ROUTINE MAINTENANCE, WHICH WE SHOULDN'T DO, BUT WE HAD TO BECAUSE IT WASN'T IMPLEMENTED IN THE PAST.
UM, BUT IT SEEMS AS IF WE NEED TO BE MORE COMPREHENSIVE IN THAT, RIGHT? BECAUSE ANNUAL MAINTENANCE SHOULD BE MAINTAINED.
AND THEN THAT LEEWAYS INTO MY SECOND POINT IS IT CONCERNS ME GREATLY THAT WE DON'T KEEP UP MAINTENANCE WHEN WE HAVE CAPITAL PROJECTS MUCH FURTHER DOWN THE ROAD.
AND I THINK THAT'S WHAT HAPPENS OFTEN.
IF YOU LOOK AT 17TH STREET OR WEST AVENUE OR WASHINGTON AVENUE ON FIFTH STREET, SOME OF OUR CAPITAL PROJECTS ARE, WHAT, 10, 15 YEARS AWAY, STILL ARE WE REALLY NOT GOING TO PAVE ROADS BECAUSE WE HAVE SOMETHING HANGING OUT THERE 10 OR 15 YEARS FROM NOW, UH, RIGHT OUTSIDE OF CITY HALL, RIGHT IN FRONT OF OUR CONVENTION CENTER WHERE WE HAVE ART BASEL, THE BOAT SHOW, UH, THE MOST PROMINENT EVENTS IN THE WORLD.
IT LOOKS LIKE IT HASN'T BEEN PAVED IN 30 YEARS.
AND I KNOW THAT WE HAVE THE 17TH STREET PROJECT COMING UP, BUT THERE HAS TO COME SOME POINT WHERE WE SAY THAT IS X AMOUNT OF YEARS OFF.
WE NEED TO CONTINUE DOING ROUTINE MAINTENANCE.
WE NEED TO TAKE BETTER PRIDE IN OUR CITY.
AND THEN ON THE THIRD POINT ABOUT THE UTILITY WORK THAT'S BEING DONE, I SEE IT FRONT AND CENTER AFTER WE JUST HAD, UH, I DON'T KNOW IF BRAD'S HERE, UM, BUT AFTER THERE WAS THE, I THINK FPL PROJECT ON WEST AVENUE WHERE, YOU KNOW, THEY DUG UP, THEY REPAVED WHERE THEY DUG UP.
IT LOOKS LIKE LIGHTNING BOLTS GOING THROUGH THREE BLOCKS OF WEST AVENUE, RIGHT? IT HAD TO HAVE BEEN HARDER TO JUST REPAVE THE PORTION THAT THEY RIPPED UP THAN REPAVING THE ENTIRE ROAD.
WELL, IN A WAY, THANK GOODNESS WEST AVENUE HASN'T BEEN REPAVED BECAUSE IF THEY CAME AND RIPPED IT UP AND LEFT IT LIKE THAT, IT WOULD BE EVEN WORSE.
UM, BUT DO WE NOT HAVE SOME SORT OF COMPREHENSIVE POLICY WHERE THEY GO IF FPL OR SOMEBODY ELSE COMES UP AND TEARS UP THREE FEET OF THE ROAD, DID THEY REPAVED THAT ENTIRE LANE? IS THAT SOMETHING THAT WE COULD LOOK AT? IT JUST, IT LOOKS ABSOLUTELY AWFUL.
UM, AND INSTEAD OF PIECEMEALING ALL THIS TOGETHER, CAN WE HAVE SOME SORT OF COMPREHENSIVE POLICY OR OVERVIEW? UH, I'LL ADD SOMETHING.
AND THEN I THINK BRAD WANTS TO ADD SOMETHING.
I, I, YOU, YOU AND I HAVE TALKED ABOUT THIS FOR, FOR QUITE A WHILE, UM, AND I, AND I DO AGREE, AND I THINK, YOU KNOW, WITH THIS COMMISSION, THERE'S BEEN DISCUSSION OF CHANGES AND COMMISSIONER FERNANDEZ BEING HERE AS APROPOS WITH HIS, YOU KNOW, STOP THE PAUSE, UH, POLICY THAT BE IN EFFECT.
AND, YOU KNOW, WE'RE GONNA BE TALKING ABOUT MOVING THESE PROJECTS FORWARD.
I BELIEVE, AND THIS IS BACK BEFORE I WAS AN EMPLOYEE AND, AND NOW IS THERE WAS AN ASSUMED TIME WHEN A PROJECT WAS GONNA START, AND THEN THERE WAS A PAUSE.
SO SOMETHING MAY HAVE BEEN, LET'S NOT PAVE THIS SECTION OF WEST AVENUE 'CAUSE WE'RE STARTING A PROJECT NEXT YEAR, AND THEN SOMETHING HAPPENED AND THAT GOT PUSHED OUT MANY YEARS.
BUT I KNOW PUBLIC WORKS DOES HAVE IN-DEPTH, UH, PAVEMENT CONDITION INDEX STUDIES THAT THEY DO EVERY COUPLE YEARS AND EVERY SINGLE, I THINK THEY CAN, IF YOU POINT IT TO A SECTION OF STREET, THEY COULD TELL YOU WHEN IT'S SCHEDULED TO BE.
UM, 'CAUSE THEY'RE, YOU KNOW, RECYCLE, THEY'RE RESURFACING, LET'S SAY EVERY 10 YEARS IS, WHICH IS WHAT APPROPRIATELY SHOULD BE DONE.
AND THEY'RE GONNA KNOW WHETHER IT'S GONNA BE HIT BY A PROJECT OR THEY'RE GONNA GO AHEAD AND DO THAT.
AND I THINK BY THE COMMISSION, UH, YOU KNOW, ALLOWING THE ADMINISTRATION TO BE CONSISTENT AND MOVING PROJECTS FORWARD WHEN THEY'RE SUPPOSED TO, IS GONNA ABSOLUTELY ALLEVIATE THE, THE ISSUE THAT YOU JUST BROUGHT UP.
UH, PLAYING DEVIL'S ADVOCATE HERE AND PINPOINTING A SPECIFIC STREET.
SO THE FIRST STREET PROJECT, RIGHT? MM-HMM
WE HAVE IT THREE PHASES, UH, THANKS TO THIS COMMISSION THAT FINALLY GOT SERIOUS ON RESILIENCY.
WE ARE MOVING FORWARD WITH THAT, RIGHT? SO THAT'S FANTASTIC.
HOWEVER, IT'S MULTI-PHASED AND THERE'S A PORTION ON, UH, THE PART OF WASHINGTON AVENUE A LITTLE FURTHER NORTH, SO NOT RIGHT IN FRONT OF FIRST STREET.
THAT IS PART OF WHAT PHASE TWO, OR IS THAT PHASE THREE ACTUALLY? WHICH PART? UH, WHICH BLOCK OF WASHINGTON, LET'S CALL IT NORTH SECOND, FOURTH, FIFTH STREET.
THERE'S PHASE ONE, PHASE TWO, AND THEN PHASE THREE, PHASE FOUR IS, IS, I THINK THE
[00:15:01]
QUESTION IS, IS WASHINGTON AVENUE BETWEEN THIRD AND FOURTH PART OF ONE OF THOSE PHASES? I DON'T RECALL.I'LL, I'LL DOUBLE IT'S FURTHER UP, BUT YEAH, IT'S A HUNDRED MILLION DOLLARS UNFUNDED AND THAT'S PROBABLY 15 YEARS AWAY.
BUT I WOULD BET ANY AMOUNT OF MONEY THAT WE'RE ESSENTIALLY NOT PAVING THAT, BECAUSE IT IS PART OF, LET'S CALL IT PHASE THREE OR PHASE FOUR, THAT, UH, LISTEN, WE'RE MOVING FORWARD WITH PHASE ONE AND TWO, BUT WE'RE TALKING ABOUT HUNDREDS OF MILLIONS OF DOLLARS THAT'S UNFUNDED AND PERHAPS 15 YEARS AWAY FOR PHASE THREE OR FOUR.
IF, IF THAT PORTION GETS DONE RIGHT, WE'RE TAKING CARE OF THE, THE 80 OR 90%, THE MEAT AND POTATOES.
AND I, I APPLAUD, YOU KNOW, I, I LOATHE THE BACK PADDING, BUT WE, WE HAVE MOVED THAT FORWARD.
UM, BUT THERE'S PORTIONS THAT PROBABLY AREN'T GOING TO MOVE FORWARD, AND I DON'T THINK THAT WE COULD JUST SIT THERE AND NOT MAINTAIN REGULAR MAINTENANCE ON THOSE PORTIONS THAT ARE LIKELY, YOU KNOW, DECADES AWAY.
I, I THINK ABSOLUTELY WE CAN TAKE A LOOK AT THOSE THINGS, UH, YOU KNOW, PARTICULARLY ON, YOU KNOW, OTHER MAY THOROUGH AFFAIRS LIKE WASHINGTON COLLINS AND, AND, UM, ALTON ROAD, UH, AND TAKE A LOOK AT, YOU KNOW, WHERE THEY FALL INTO THE PLANS THAT WE HAVE AS IT RELATES TO PROJECTS AND CERTAIN, UH, MAINTENANCE ON A YEAR TO YEAR BASIS.
AND, AND ALSO JUST TO, UM, FOLLOW UP ON THAT POINT, UH, AS IT RELATES TO, UH, LIKE FP AND L AND OTHER CONTRACTORS AT AND T DOING WORK, UH, AS IN OUR RIGHT OF WAY WITH PERMITS, WE WILL, UH, CERTAINLY MAKE SURE WE ARE MORE VIGILANT IN, UH, NOT LETTING THEM, YOU KNOW, LEAVE SITES INCOMPLETE OR LEAVING THEM IN A CONDITION THAT DOES NOT MEET, YOU KNOW, A CITY STANDARD.
UH, IT IS OBVIOUSLY A FRUSTRATING TOPIC FOR ALL OF US 'CAUSE WE GO OUT AND WE SEE DIFFERENT THINGS AS WE GO THROUGH WALKTHROUGHS.
UM, AND, UH, IT CAN BE FRUSTRATING AND SOMETIMES CERTAINLY WITH THE PAINT THAT THEY LEAVE, AND THAT'S SUPPOSED TO, YOU KNOW, OBVIOUSLY FADE AWAY, BUT IT DOESN'T ALWAYS FADE AWAY AS QUICK AS IT SHOULD.
UM, BUT WE CAN CERTAINLY LOOK AT THOSE THINGS AND WE CAN, UM, YOU KNOW, REEVALUATE SOME OF THE THINGS PERHAPS IN OUR PROCESSES IT RELATES TO PERMITTING.
UM, AND, YOU KNOW, LISTEN, YOU KNOW, THERE ARE WORST CASE SCENARIOS, UH, YOU KNOW, IN MY EXPERIENCE IN OTHER MUNICIPALITIES WHERE WE HAVE HELD BACK ISSUING FURTHER PERMITS TO A PARTICULAR, UH, YOU KNOW, UTILITY BECAUSE THEY JUST COULD NOT, YOU KNOW, DO WHAT THEY NEEDED TO DO WHEN IT CAME TO CLOSING OUT A PARTICULAR PROJECT.
THESE ARE STANDARD OPERATING PROCEDURE SURE.
BECAUSE I'M GONNA SEND YOU PICTURES LATER OF, LET'S CALL IT FROM EIGHTH, NINTH, 10TH WEST AVENUE.
UH, I, I COULDN'T IMAGINE THAT THEY GO DOWN TO CORAL GABLES AND PERFORM ROAD WORK AND LEAVE CORAL GABLES LIKE THAT.
IT, IT JUST, IT WOULD NEVER BE ACCEPTABLE.
UM, QUITE LITERALLY, IT LOOKS LIKE LIGHTNING BOOKS GOING OVER THREE BLOCKS AND IT WOULD'VE BEEN HARDER NOT TO JUST REPAVE THE ENTIRE STREET AND JUST KIND OF GO IN LINE WITH WHAT THEY TOLD.
WE'LL TAKE A LOOK AT THE SPECIFICS, BUT THERE ARE OBVIOUSLY SUPPOSED TO BE PROTOCOLS IN PLACE TO MAKE SURE THOSE THINGS DON'T HAPPEN.
IF I, IF I CAN SHARE, I THINK ON THE ITEM, UH, AS PRESENTED, UH, YOU KNOW, JOSE WENT THROUGH THE NUMBER OF THE ITEMS, ONE OF THE ITEMS THAT IT WAS ALREADY FUNDED, THE 25 BUDGET, WHICH WAS THE SOLAR FEEDBACK LINE.
SO PERHAPS TH THIS COULD BE RETURNED TO COMMISSION WITH A FAVORABLE RECOMMENDATION TO CONSIDER FUNDING, UH, DURING THE FY 26 BUDGET PROCESS FOR THE UNBUDGETED ITEMS AS PRESENTED, IF THAT'S AN ACCEPTABLE MOTION.
WELL, SO NO, I WAS ACTUALLY HOPING THAT WE COULD FUND IT FROM THROUGH A BUDGET AMENDMENT SO THAT WE DON'T HAVE TO WAIT A YEAR AND A HALF TO GET THE REST OF THE STUFF DONE.
IS THERE A PARTICULAR ITEM? 'CAUSE I THINK THAT THERE'S, YOU'VE, UM, TRANSPORTATIONS IDENTIFIED, UH, REQUEST FOR WOULD NEED A $375,000 TO, UH, DO REPAVE THE GREEN BIKE LANES.
BUT THERE WAS A COUPLE OTHER ONES THAT YOU DIDN'T HAVE SPECIFIC NUMBERS ON IT, AND I, I THINK YOU WERE WAITING ON COMMISSION TO GIVE DIRECTION BEFORE YOU WOULD ENGAGE TO COME UP WITH A COST ESTIMATE.
THERE THERE'S ANOTHER CATEGORY WHICH IS MORE CAPITAL PROJECTS.
AND SO FOR THOSE PROJECTS WE'RE, WE'RE CURRENTLY ESTIMATING WHAT THOSE PROJECTS WOULD COST, AND WE'LL GO THROUGH THE CAPITAL BUDGET PROCESS FOR THOSE.
UM, WE DON'T HAVE, WE DON'T HAVE THOSE COSTS YET, BUT THESE ARE PROJECTS THAT ARE RECOMMENDED IN OUR BICYCLE PEDESTRIAN MASTER PLAN AND OUR, OUR PENDING AND LOW HANGING FRUITS.
SO COMMISSIONER, MAYBE WHAT WE CAN DO IS MODIFY WHAT THE MOTION I HAD STATED TO, TO ALSO ADD THAT THE, THE, A FAVORABLE RECOMMENDATION TO IMMEDIATELY IN THE 25 BUDGET, AMEND, AMEND THE 25 BUDGET TO APPROPRIATE $375,000 FOR THE, UH, THE BIKE LANE, UH, ASPECTS.
SINCE THAT ONE IS A KNOWN AMOUNT, IS THAT ACCEPTABLE? UM, THE OTHER THING THAT I WANTED TO MAKE SURE WE WERE GETTING DONE VERY QUICKLY IS THE, UM, THE, OR DO WE, REMIND ME, JOSE, DO WE HAVE FUNDING FOR THE, UM, ELECTRONIC SPEED FEEDBACK DEVICES? WE DO.
SO THAT, THAT WAS IN 25 BUDGET.
SO THE MOTION TO RETURN TO COMMISSION FAVOR RECOMMENDATION TO CONSIDER FUNDING DURING THE 26TH BUDGET FOR THE UNBUDGETED ITEMS AS PRESENTED, BUT FOR, UH, WITH $375,000 FOR THE RESING OF THE GREEN BICYCLE LANES TO BE APPROPRIATED DURING 25.
[00:20:01]
A AYE.OH, I GUESS WHO MADE THE MO A MOTION? WE'LL SAY COMMISSIONER BOT.
YEAH, I THINK THAT'S THE ONLY POSSIBILITY, RIGHT? BECAUSE I CAN'T MAKE A MOTION, RIGHT? YOU'RE CORRECT.
SO YES, SO GOING FORWARD, WE WILL MAKE THE ASSUMPTION THAT IT'S COMMISSIONER BOT MAKING MOTIONS.
WAIT, CAN WE, CAN WE DO A ROLL CALL? VOTE
[OB 3. DISCUSS THE ISSUANCE OF NEW MONEY WATER, SEWER and stormwater REVENUE BONDS]
OB THREE, UH, UTILITY RATES AND, UH, MR. CFO AS PART OF THAT, YOU KNOW, BECAUSE WE'RE GONNA TALK ABOUT SOMETHING THAT'S, UH, I DON'T WANNA SAY UNCOMFORTABLE, BUT, UH, IT'S GOING TO GIVE US THE REALITY OF, UH, SOME FINANCIAL DECISIONS, UM, THAT WE'RE GOING TO BE LOOKING AT GOING FORWARD.AND AS PART OF THIS, UH, I DON'T WANT TO JUST PIECEMEAL IT, MR. CFO, I BELIEVE THAT, UH, IT IS PART OF, UH, WEDNESDAY'S COMMISSION MEETING, UH, JUST TO DISCUSS, I KNOW THAT WE ALL GOT A LTC, UM, BUT AS PART OF THIS DISCUSSION, I'D ALSO LIKE IF YOU COULD JUST GIVE A 32ND OVERVIEW OF, UH, BUDGET CHALLENGE THAT WE'RE GOING TO BE FACING, NOT JUST THIS YEAR, BUT ON OUR, UH, ANNUAL BUDGET, UH, MOVING FORWARD WITH, UH, DECISIONS THAT WERE MADE IN THE NEWLY ELECTED OFFICE FROM THE COUNTY.
SO WHY DON'T YOU START WITH THAT AND, UH, FOR, YOU KNOW, FURTHER DOWN THAT PATH.
WE'RE GONNA GET INTO THE UTILITY DISCUSSION, BUT I, I JUST WANT TO LAY THE GROUND FLOOR OF YEAH.
A CHALLENGING BUDGET CYCLE THAT WE'RE GOING TO FACE, AND THEN WE WILL KIND OF USE THAT TO LEEWAY INTO NB ONE AS WELL.
COMMISSIONER FERNANDEZ, YOUR ITEM.
SO, UH, YOU WANTED TO START WITH OB THREE, OB THREE DISCUSSED THE ISSUANCE OF NEW WATER, UH, NEW MONEY, UH, WATER SEWER AND STORMWATER REVENUE BONDS, UH, OB THREE.
BUT IF YOU COULD ALSO JUST, YEAH.
AND THEN JUST TO, TO, TO TEE UP A LITTLE BIT, I THINK WHAT YOU WERE SPEAKING OF IS SOME OF THE BUDGETARY CHALLENGES THAT WE'RE EXPECTING TO HAVE IN THIS UPCOMING 26 BUDGET.
AND TAMIKA, WHEN SHE COMES UP ON MB ONE, WE'LL GO IN MORE DEPTH, IS, YOU KNOW, WE WERE ALERTED RECENTLY, UH, BY, IN THE LAST TWO MONTHS THAT THE NEWLY ELECTED TAX COLLECTOR, A NEW CHARTERED OFFICE OF THE, OF THE COUNTY, OUR FIRST EVER ELECTED ONE, UH, HAS AVAILABLE HIMSELF AS A CONSTITUTIONAL RIGHT TO TAKE OVER THE STATE DMV, UH, WHICH HAS RUNS ON A, A GIANT DEFICIT.
AND HE IS AVAILED HIMSELF TO, TO MODIFY HIS OFFICE'S FUNDING STRUCTURE TO WHAT'S CALLED A FEE OFFICE, UH, WHICH IS TO COLLECT 2% OF THE PROPERTY TAXES FROM THE TAXING AGENCIES, UH, AND THE COUNTY THAT'S STILL BEING LOOKED AT, BUT IT'S NOT ONLY THE COUNTY, BUT HE IS ALSO, UH, ASKING TO IMPOSE THAT ON THE MUNICIPALITIES.
UH, THE OMB OFFICE HAS DONE AN ANALYSIS OF THAT, AND ACROSS THE DIFFERENT FUNDING, THE GENERAL FUND BEING THE BIGGEST, UH, THE VOTED DEBT SERVICE, UH, NORMANDY SHORES, UH, CRA AND RDA, WE'RE ESTIMATING THAT, UM, THIS WILL BE AN ADDITIONAL ALMOST $7 MILLION, UH, BUDGET HIT, UH, THAT WE'RE GONNA HAVE TO GRAPPLE WITH, UH, APPROXIMATELY $7 MILLION ACROSS MULTIPLE DIFFERENT FUNDS.
THE, THE GENERAL FUND TAKING THE, THE BRUNT OF THAT HIT.
SO WHEN WE'RE STARTING OFF, AND WE, YOU KNOW, WE COME IN MAY AND WE'RE GONNA TALK ABOUT CURRENT SERVICE LEVEL, WHICH, YOU KNOW, WE USUALLY NEED A FEW PERCENT PROPERTY VALUE INCREASE TO COVER OUR UNION CONTRACTS, GENERAL INFLATION, EVERYTHING THAT WE DID YESTERDAY, WE DO TOMORROW, UH, WITH THAT COST.
THIS IS, WE'RE, WE'RE STARTING IN A BIGGER HOLE.
SO THAT'S REALLY GONNA MAKE THINGS DIFFICULT.
AND, AND JUST VERY SIMPLISTICALLY BACK OF THE ENVELOPE, UM, OUR BUDGET SURPLUS LAST ABOUT 14 MILLION.
YEAH, I THINK IT WAS SOMEWHERE, I THINK IT WAS SOMEWHERE IN THAT REALM.
AND, UH, AND THAT WAS A VERY GOOD, WE HAD A VERY HEALTHY, UM, YOU KNOW, PROPERTY TAX VALUE, UH, AT PROPERTY VALUE INCREASE, UH, WHICH WE DON'T ANTICIPATE HAVING SUCH A, A HIGH INCREASE, UH, THIS UPCOMING YEAR.
WE BELIEVE WE WILL HAVE ONE, BUT IT'LL BE A DECLINING INCREASE.
SO IT'S SOMETHING TO BE VERY, UH, COGNITIVE TO MAKE SURE THAT, YOU KNOW, AS YOU AND I HAVE SPOKEN ON MEDICATIONS, YOU MAKING SURE WE BUILD A FINANCIAL RESILIENT CITY.
AND, AND WHAT IS THE INCREMENTAL COST JUST BORN FROM, UH, OUR UNION CONTRACT NEGOTIATIONS? I WOULD LIKE TO WAIT UNTIL THE MB ONE FOR OUR DIRECTORAL, WE'LL GET UP TO, TO TALK ABOUT THOSE SPECIFICS.
BUT, UH, I THINK FOR NOW, UM, WHAT WE'RE GONNA TALK ABOUT HERE, I'LL JUST TEE IT OFF BEFORE THEY BRING UP THE, THE POWERPOINT HERE TO GO THROUGH IS OUR UTILITY RATES.
UM, AND, YOU KNOW, AS WE DISCUSSED, UM, OUR UTILITY RATES, UH, WERE LOOKED AT OVER THE PAST NUMBER OF YEARS.
UH, BACK IN 17, THERE WAS AN ANALYSIS DONE FAMILIAR TO THIS.
UM, AND THE COMMISSION AT THE TIME, I KNOW DID NOT MOVE FORWARD WITH THE ADMINISTRATION AT THE TIME'S RECOMMENDATION OF THOSE SET OF RATE INCREASES.
UH, AND THEY SET A SPECIFIC SET OF NUMBERS, UM, AND ACTUALLY ENDED UP BEING LOWER THAN WHAT INFLATION HAS BEEN.
SO WE'VE ACTUALLY LOST OUT A NICE CHUNK TO INFLATION, AND WE DIDN'T FOLLOW THAT, WHICH IS PROBABLY PART OF WHY THE PAUSE HAPPENED ON MANY OF THE PROJECTS.
UH, BUT, YOU KNOW, AS WE DISCUSSED, THIS COMMISSION'S INTEREST IS MOVING FORWARD TO A RESILIENT CITY TO FIX OUR WATER AND SEWER INFRASTRUCTURE, OUR STORM WATER INFRASTRUCTURE, THE COMMISSION HAS ALREADY APPROVED ON MULTIPLE TIMES OUR STORM WATER AND OUR WATER AND SEWER CRITICAL NEEDS PROGRAM AND, AND OUR NEIGHBORHOOD IMPROVEMENT PROGRAM AND THE, THE PHASING
[00:25:01]
OF THOSE PROJECTS, THERE'S SEPARATE RESOLUTIONS FOR WEST AVENUE, PHASE THREE, FIRST STREET, NORTH SHORE D, ALL OF THESE ARE STRONGLY ENDORSED BY THE COMMISSION.UH, AND NOW WHAT PUBLIC WORKS AND, AND, AND OUR, OUR, OUR RAY CONSULTANT WHO WILL INTRODUCE HIMSELF MOMENTARILY WILL EXPLAIN IS WHAT WE HAVE TO DO TO ACTUALLY CLOSE THOSE FUNDING GAPS.
IT'S NEVER A, UH, EASY DECISION, UM, TO MOVE FORWARD WITH SOMETHING THAT'S GOING TO, UH, FLOW THROUGH TO SOME SORT OF INCREASE.
BUT I THINK YOU HIT THE NAIL ON THE HEAD WHERE PREVIOUS COMMISSIONS, UH, KIND OF PASSED THE BUCK ON THAT AND LOOK AT WHAT IT RESULTED IN.
ONE IS, THERE'S RESILIENCY PROJECTS NOT GETTING DONE IN A TIMELY FASHION.
WHAT AND WHAT DID THAT RESULT IN? HUGE, HUGE INCREASES, COST INCREASES FOR SOME OF THOSE PROJECTS.
SO, UH, YOU KNOW, WE'RE FACING A DECISION WE CAN CONTINUE JUST KICKING THE CAN DOWN THE ROAD, BUT AT WHAT EXPENSE, RIGHT? AT THE EXPENSE, QUITE LITERALLY, OF THE RESILIENCY OF OUR CITY.
SO I'LL HAND IT OVER TO OUR PUBLIC HORSE DIRECTOR AND RE CONSULTANT TO, UH, KIND OF SEE WHAT WE'RE LOOKING AT GOING FORWARD.
UH, THANK YOU, CHAIRMAN MAGAZINE.
WE'RE GONNA TALK A LITTLE BIT ABOUT TODAY ABOUT OUR, UH, OUR UTILITY STORM WATER AND SEWER RATES, AND KIND OF GIVE YOU A LITTLE BIT OF A HISTORY.
UM, THERE'S, THERE'S A LOT OF INFORMATION, SO WE'RE GONNA TRY TO CONDENSE IT AS MUCH AS WE CAN, UH, CONSIDERING, BUT KIND OF, UM, TALK ABOUT WHY WE'RE HERE AND WHAT EVERYTHING, UM, YOU KNOW, ENCOMPASSES AS PART OF, UH, GOING FORWARD WITH THESE, YOU KNOW, RATE INCREASES.
UM, THIS BASICALLY IS A PROCESS THAT'S GONNA KEEP US IN LINE WITH ALL OF THE PROJECTS THAT WE HAVE THAT, UH, IN OUR NEIGHBORHOOD IMPROVEMENT PROJECT PLAN FOR THE NEXT 10 YEARS, AS WELL AS, UH, OUR CRITICAL INFRASTRUCTURE PROJECTS AS WELL.
SO, UM, I'M GONNA TURN IT OVER TO OUR CONSULTANT, BRIAN MANZ FROM GOV RATES TO TAKE YOU THROUGH THIS PRESENTATION AND, UH, ANSWER ANY QUESTIONS, UH, ANYBODY MAY HAVE AT THAT POINT.
UH, MEMBERS OF THE, THE COMMITTEE, UH, STAFF PUBLIC, UH, GOOD MORNING.
MY NAME IS BRIAN MANZ FROM GOV RATES, AND I'M HERE TO, OF COURSE, TALK ABOUT THE WATER, SEWER AND STORM WATER RATE STUDY.
THERE'S, UH, YOU KNOW, THE, WE, WE HAVE A, A, UH, YOU KNOW, THIS, WE HAVE A PRESENTATION, BUT IT'S, IT'S, WE CERTAINLY HAVE A LOT OF BACKUP INFORMATION ASSOCIATED WITH THIS AGENDA ITEM TOO.
BUT, BUT CERTAINLY, UM, YOU KNOW, WHENEVER THE UTILITY, THE WATER AND SEWER, STORM WATER UTILITY ISSUES, BONDS RATING AGENCIES WANNA SEE A FIVE YEAR PROJECTION AND TO SHOW STRONG MANAGEMENT, IT'S, UH, IN, IN THE CITY'S BEST INTEREST TO SHOW THAT ALL THE, ALL THE, UM, THAT, THAT THE, THE MULTI-YEAR CAPITAL PROGRAM, WHATEVER IT IS, IS FULLY FUNDED THAT CAN POSITION THE, THE UTILITY TO MAINTAIN ITS AA, UH, RATED, UH, CREDIT RATINGS AND, YOU KNOW, SAVE MILLIONS OF DOLLARS IN INTEREST AND ISSUANCE COSTS.
SO THE LAST FORMAL RATE, WATER AND SEWER RATE STUDY WAS COMPLETED AT, IN, UH, 2022.
THAT WAS, UH, SORRY, AT THE END OF 2020.
AND THE FOCUS WAS BEING ABLE TO FUND APPROXIMATELY 122 MILLION IN CRITICAL CAPITAL NEEDS THROUGH 2020 4 56.
NEIGHBORHOOD IMPROVEMENT PROJECTS WERE NOT INCLUDED IN THE FINANCIAL PLAN.
AND IN, AND AT THE END OF, UH, YOU KNOW, TWO, 2020, WE WERE IN THE MIDDLE OF, UH, UH, COVID-19.
THERE WAS, UH, NO WAY OF KNOWING WHETHER THERE WOULD BE FU FUTURE INFLATION OR, OR DEFLATION.
BUT, UH, THE BOTTOM LINE IS, IS THAT RATES HAVE NOT KEPT UP WITH THE ACTUAL INFLATION.
IF YOU LOOK AT THIS, AT THIS, UH, CHART ON THIS, ON THIS SLIDE, UH, THERE'S ABOUT A 10.1%, UH, THAT JUST THE CONSUMER PRICE INDEX, UH, INFLATION HAS INCREASED ABOUT 10% MORE THAN USER RATES.
UH, TWO TH UH, SINCE 2020, THE, THE BID AMOUNTS RECEIVED ARE SIGNIFICANTLY, UM, HIGHER THAN ANTICIPATED.
AND THERE'S BEEN, UM, A A LOT OF, UH, EMERGENCY REPAIRS OF PIPELINES AND PUMP STATIONS.
THE LAST STORMWATER RATE ANALYSIS WAS COMPLETED IN 2017, AND IT'S IMPORTANT TO HAVE A DEDICATED FUNDING SOURCE FOR FUTURE BONDED ISSUANCES.
UH, THERE WAS A, IN THIS ANALYSIS, THERE WAS A TWO THOU A RATE INCREASE PROGRAM FOR 2019, OR AT LEAST RECOGNIZED, UH, THAT WAS NEEDED TO PREPARE FOR THE 2020, UH, A $100 MILLION BONDAGE ISSUANCE IN 2022.
BUT THAT, UM, THAT INCREASE WAS NOT, UH, IMPLEMENTED.
[00:30:01]
A 23% INCREASE.UH, THE STORMWATER 10 YEAR MASTER PLAN, UH, WAS APPROVED IN MARCH OF, UH, 2024 AND RECOMMENDS, UH, IMPLEMENTING NEIGHBORHOOD IMPROVEMENT PROJECTS AT, AT THE SAME TIME AS CRITICAL NEEDS PROJECTS.
AND SO HERE'S THE, THE, YOU KNOW, THE, THE FUNDAMENTAL ISSUE ASSOCIATED WITH THESE RATE STUDIES IS, UM, A PUBLIC HEALTH AND SAFETY ISSUE, AND THAT IS REINVESTMENT IN THE UTILITY SYSTEM.
SO WE HAVE, WE, WE PUT TOGETHER THREE OPTIONS.
UH, ONE IS, UH, THE RECOMMENDED OP OPTION, WHICH, WHICH IS LINKS TO THE, TO THE CITY'S MASTER PLAN.
AND THEN THERE'S SOME THEN, UH, THE, THE, THESE YELLOW, UM, HIGHLIGHTED AREAS SHOW WHAT WOULD BE DEFERRED OR, OR NOT FUNDED IF WE WENT WITH, UH, SOME OF THE OTHER OPTIONS.
AND CERTAINLY WE CAN GO TO THE, UH, INTO THE WEEDS AS THE, AS AS THE COMMITTEE, UH, BASED ON THE PREFERENCES OF THE COMMITTEE.
AND, AND HERE WE HAVE A SIMILAR CHART FOR THE, THE STORM WATER SYSTEM WHERE WE HAVE MASTER PLAN RECOMMENDATIONS VERSUS, UH, WHAT WOULD BE, UH, DEFERRED UNDER, UH, OR, OR NOT FUNDED UNDER SOME OF THE OTHER OPTIONS.
UH, IT'S ALSO IMPORTANT TO NOTE THAT THERE'S ABOUT $67 MILLION IN GRANTS THAT THAT'S BEEN AWARDED TO FUND ADDITIONAL PROJECT COSTS THAT ARE NOT IN THESE TABLES.
AND IF SOME OF THESE PROJECTS CAN'T MOVE FORWARD, UH, DUE TO A LACK OF FUNDING, IF WE, IF YOU CAN'T FUND THE FULL PROJECT, THEN YOU'D ALSO LOSE OUT ON, ON THOSE GRANTS.
UH, THE, THE CITY WOULD HAVE TO FORFEIT THEM.
AND, AND IF I COULD JUST INTERJECT HERE, WE HAD A PRETTY EYE-OPENING CONVERSATION AS PART OF MY BRIEFING FOR SOME OF THESE DECISIONS ARE HARD, RIGHT? BUT THERE'S NO MORE KICKING THE CAN DOWN THE ROAD, RIGHT? EVEN IF WE WANTED TO, THESE ARE AT A POINT, AND MR. CITY ATTORNEY OR MR. PUBLIC WORKS DIRECTOR, OR MR. C FFO, I FORGET WHICH ONE OF YOU LAID IT OUT VERY ELOQUENTLY TO ME, BUT IT WAS, IF WE DON'T PROVIDE THE NECESSARY FUNDING FOR THIS, THESE PROJECTS ARE OVER.
WE CAN'T JUST CONTINUE SAYING, OH, WE'RE GONNA GET TO IT NEXT TIME, OR WE'RE GONNA GET TO IT A FEW YEARS FROM NOW.
WE ESSENTIALLY HAVE TO GO BACK AND SAY, WELL, WE'RE NOT DOING WEST AVENUE OR WE'RE NOT DOING PROJECT B, AND WHAT THAT'S GOING TO RESULT IS, IS WHERE YOU'RE GOING IS A LOSS OF STATE FUNDING OF $67 MILLION.
IT'S NOT JUST THAT WE COULD SIT HERE AND SAY, WELL, MAYBE IN A FEW YEARS WE'LL GET TO THE UTILITY INCREASES AND WE'LL KEEP THESE PROJECTS ON THE BACK BURNER IF WE DON'T GO FORWARD WITH THIS.
THESE PROJECTS, BY ALL INTENTS AND PURPOSES DIE AND WE LOSE THE, UH, STATE GRANTS AND FUNDING THAT'S BEEN ALLOCATED TOWARDS THOSE.
UH, YES, COMMISSIONER, UH, SO THESE PROJECTS ARE IN VARIOUS STATES OF DESIGN, UH, ESPECIALLY THE WEST AVENUE PHASE THREE AND THE FIRST STREET, WHICH ARE IN THE 60 90%, SOMEWHERE IN THAT, THAT, THAT TIME, UH, DESIGN WISE, NORTH SHORE D WHICH IS A, A VERY BIG PROJECT, I THINK IS ON YOUR AGENDA FOR THE COMMISSION TO APPROVE THE DESIGN THERE.
AND IF THE INTEREST IS NOT TO MOVE FORWARD, THEN OBVIOUSLY WE WOULD PULL THAT, UH, DESIGN WOULD BE, YOU KNOW, WOULD PROBABLY BE, HAVE TO BE SHELVED UNTIL SUCH TIME IS, IS RATES WOULD BE ADJUSTED TO AFFORD THOSE PROJECTS.
SO LET'S GET TO THE XS AND OS.
THE, THERE'S HERE WE SHOW DEFUNDING DEFICIENCIES IF WE DON'T MOVE FORWARD.
WE'VE GOT, UM, UH, IT SHOULD, WE HAVE A LOT OF WEEDS ON WHAT WOULD, UH, HAVE TO BE DEFERRED OR NOT FUNDED.
UM, IF, UM, UH, SO THIS, THESE, UH, PERCENTAGES HERE SHOW WHAT, WHAT THE, UM, WHAT THE, UM, WHAT THE PERCENTAGES, UH, LOOK LIKE, WHERE WE'D HAVE SOME ADDIT SOME INITIAL, UM, RATE ADJUSTMENTS, UM, UH, AS, AS, UH, IMPLEMENTED AS SOON AS POSSIBLE.
AND THEN THE NEXT, UH, ADJUSTMENTS WOULD BE IMPLEMENTED AT, AT THE BEGINNING OF FISCAL YEAR 2000, UH, 27.
I CAN TELL YOU, AS SOMEONE THAT WORKS WITH HUNDREDS OF UTILITIES, THESE RATE ADJUSTMENTS ARE, ARE TAMED COMPARED TO, TO WHAT I SEE.
I MEAN, I'VE, I'VE WORKED WITH SOME UTILITIES THAT ARE LOOKING AT 18% ADJUSTMENTS PER YEAR.
I JUST FINISHED WITH A UTILITY IN, IN, UH, NEW MEXICO THAT IT'S LOOKING AT 25% PER YEAR.
I MEAN, THESE ARE, LIKE I SAID, I MEAN, THESE ARE NOT ATYPICAL COMPARED TO, UH, WHAT I'M SEEING IN OTHER, UM, YOU KNOW, WITH, WITH OTHER LOCAL GOVERNMENTS.
UM, AND, AND THIS, THIS SLIDE SHOWS THE, SHOWS THE FINANCIAL EFFECT.
ONE THING WE DO, UM, WHEN WE, WE PROACTIVELY, YOU KNOW, WE, WE, WE RECOGNIZE THAT AFFORDABILITY IS ALWAYS A CONCERN.
AND THE EPA CONSIDERS 4.5% OF MEDIAN HOUSEHOLD INCOME,
[00:35:01]
UH, TO BE AN AFFORDABILITY THRESHOLD FOR WATER AND SEWER SERVICE ONLY.UM, UNDER ANY OF THE PLANS THAT WE, THAT UNDER ALL THE PLANS, THE COMBINED WATER, SEWER AND STORM WATER RATES WOULD BE WELL BELOW 4.5% OF MEDIAN HOUSEHOLD INCOME, WHICH AGAIN, IS JUST THE AFFORDABILITY STANDARD, ONLY FOR WATER AND SEWER, NOT, NOT INCLUDING STORMWATER.
SO BY ANY UTILITY INDUSTRY STANDARD, UH, THIS PLAN WOULD, WOULD, UH, WOULD BE CONSIDERED AFFORDABLE AND CAN HELP THE, YOU KNOW, THE CITY MOVE FORWARD AND, AND, UH, BE RESILIENT AS, UM, AS YOU, UH, AS HAS BEEN MENTIONED.
UH, AND THEN ANO, ANOTHER PART OF THE RECOMMENDATION IS TO, IS TO IMP, UH, IS TO UPDATE THE CITY'S WATER AND SEWER IMPACT FEES, WHICH WERE LAST ADJUSTED, UH, IN 1995 OR 30 YEARS AGO.
AND OBVIOUSLY, UM, COSTS HAVE GONE UP A LOT SINCE THEN.
BUT, UH, THESE, THESE CALCULATED IMPACT FEES ARE, ARE VERY AFFORDABLE, UH, VERY, UM, CONSISTENT WITH THE VERY, UH, AND IF WE JUST GO INTO DEPTH IN TO EXACTLY WHAT YOU MEAN ON THAT, RIGHT? RIGHT NOW WE HAVE, IF A DEVELOPMENT TAKES PLACE, A DEVELOPER HAS TO ESSENTIALLY PAY AN IMPACT FEE MM-HMM
AND THIS IS PER UNIT, IS THAT CORRECT? IT'S, IT ACTUALLY, IT'S BASED SOMEBODY, A MULTIFAMILY.
IT'S, IT'S ACTUALLY BASED ON THE, ON THE METER SIZE.
UM, BUT IT'S, IT'S PAID BY, BY GROWTH.
IT'S NOT PAID BY EXISTING USERS.
IT'S AN IMPACT FEE FOR NEW DEVELOPMENT.
SO ON A MULTI-FAMILY BUILDING THAT'S GOING UP, ESSENTIALLY THE DEVELOPER WOULD PAY AN IMPACT FEE THAT WOULD EQUATE TO $400 PER UNIT IS IT'S NOT BY, IS IT BY UNIT? IT'S BY CONNECTION TO THE BUILDING.
SO IF IT'S A, IT, IT'S, IT'S, IT'S BY, IT'S BY THE METER SIZE.
IT'S, IT'S PROPOSED TO BE BY METER SIZE.
THAT'S, THAT'S, UM, WHATEVER THE METER SIZE IS OF THE DEVELOPMENT, THAT'S WHAT THE, THAT'S WHAT THE, UH, THEY WOULD, THEY WOULD PAY.
BUT IT'S PROPOSED TO, IT IS, RIGHT NOW IT'S AT 390 DEGREES, UH, UM, 390 TO $90.
UM, AND IT'S PROPOSED TO GO UP TO $3,660 PER, WHAT IS THAT PER UNIT, RIGHT? BY METER SIZE, WHAT DOES THAT METER SIZE FOR? FOR A, FOR A A FIVE EIGHTH INCH METER? SO IF A BUILDING, IF I, IS THAT, IF A BUILDING JUST HAD THIS ONE CONNECTION, IT WOULD BE THAT ONE PAYMENT OF THAT IT WOULDN'T BE, UH, IF IT'S A 10 UNIT BUILDING, IT WOULD BE THAT NUMBER TIMES 10.
IT DEPENDS ON THE, ON THE METER SIZE.
LIKE THIS IS, THIS WOULD BE FOR THE LOWEST METER SIZE.
AND I, YOU KNOW, IF IF WE, IF HAD ONE METER, IT WOULD BE JUST THAT IT ONE CHARGE.
GENERALLY HELP HELP ME OUT HERE.
SO ONE TIME LAYMAN'S TERMS, IT'S NOT BY, IF THERE'S A MULTI-FAMILY BUILDING, I, IS THERE ONE HOOKUP, I, IS THERE ONE HOOKUP PER UNIT? IT WOULDN'T BE PER UNIT.
IT WOULD BE, NO, IT WOULD BE BASED ON THE, ON THE METER SIZE OF, I I, I GET THAT THE MASTER.
SO THAT CHARGE ONE TIME HELP ME UNDERSTAND MORE IN MY ELEMENTARY, YOU KNOW, LEVEL OF UNDERSTANDING ABOUT DEVELOPMENT AND UTILITY RATES, IF THERE'S A MULTI-FAMILY BUILDING MM-HMM
HOW MANY METER, WHAT'S THE METER SIZE? WHAT IF IT'S, IF IT'S A TWO INCH METER, IT WOULD, IT WOULD BE, UM, I THINK, I'M SORRY IF I MAY, IT'S A ONETIME CHARGE.
IT'S A ONE ONE TIME BUILDING CHARGE.
IT'S, SO THAT BUILDING WOULD BE CHARGED $3,660.
WHAT I'M TRYING TO GET AT IS THESE SEEM LIKE INCREDIBLY LOW RATES THAT ARE BEING CHARGED.
AND WHILE IT'S, UH, FROM A PERCENTAGE BASIS, AN EYE-OPENING PERCENTAGE INCREASE, JUST GIVEN THE LEVEL OF GROWTH, THIS IS A ROUNDING ERROR, UM, IN TERMS OF AN OVERALL PROJECT, RIGHT? THE, THE, THESE PUTS YOU IN LINE WITH NORMAL MARKET RATES THAT YOU SEE IN, IN MANY MUNICIPALITIES.
WHAT YOU SEE HERE EXISTING DOESN'T EXIST ANYWHERE.
AND IF YOU HAD A 10 UNIT BUILDING THAT HAD A FIVE EIGHTS METER, IT WOULD BE THAT $3,600 CHARGE FOR, YOU KNOW, A 10 UNIT BUILDING, IT'S PROBABLY BE MILLIONS OF DOLLARS.
IT'S A, IT'S A ROUNDING ERROR AS I THINK YOU WOULD SAID.
THAT BEING SAID, UH, I'M CERTAINLY FULLY SUPPORTIVE OF THIS ASPECT.
IF THERE, I THINK THAT IS THE END OF THE PRESENTATION, CORRECT.
WHAT, WHAT, WHAT WE'RE HOPING FOR, I, I THINK IF WE CAN HONE IN A LITTLE BIT ON THE, CAN WE GO BACK TO THE PAGE ABOUT WHAT THOSE RATES ARE GOING TO BE THIS YEAR, NEXT YEAR AND, AND KIND OF GOING FORWARD? YES.
SO IF WE CAN KIND OF QUANTIFY ESSENTIALLY WHAT WE'D BE LOOKING TO, UH, APPROVE, UH, OR PUT IN FRONT OF OUR FULL COMMISSION RIGHT HERE.
CAN I SAY SOMETHING? YEAH, PLEASE.
UM, UH, WHAT I HAD MY BRIEFING ON THIS WITH BOTH JASON AND LATER WITH, WITH BRAD AND, AND JAY.
UM, I WAS FLOORED AT THE FACT AT TWO THINGS.
UM, ONE IS THAT WE HADN'T IN ADJUSTED THE IMPACT FEES IN 30 YEARS.
AND AS A CITY, THIS IS NOT THE FIRST TIME WE'VE FOUND OUT ABOUT SOMETHING
[00:40:01]
LIKE THIS.THE ROLL OFF FEES, REMEMBER THERE IS SOMETHING, YOU KNOW, SO, UM, I'M FLABBERGASTED THAT WHEN WE ARE LOOKING TO FIND MONEY TO FUND PROJECTS, WE DO NOT HAVE A HANDLE AS A CITY ON ARE OUR, UM, FEES TIED TO COST OF LIVING INCREASES, CPI OR A MINIMUM THRESHOLD.
IF THERE'S VERY LOW INFLATION THAT NEEDS TO BE DONE YESTERDAY, WHAT ARE WE CHARGING AS IMPACT FEES? WHEREVER WE CHARGE IMPACT FEES, WHETHER IT'S WASTE HAULING OR PARKING SPOTS OR WHATEVER, WE NEED TO TAKE A COMPREHENSIVE REVIEW AND FIGURE OUT WHAT IS THE DEAL.
IN SOME CASES WE MIGHT DECIDE THAT SOMETHING IS PRICED ACCURATELY, BUT IT SEEMS LIKE WE STUMBLE ACROSS THESE OPPORTUNITIES TO RECOUP MONEY THAT WE HAVE BEEN LEAVING ON THE TABLE FOR, IN THIS CASE, THREE DECADES.
IT DOES THE SAME CONVERSATION.
I MEAN, I KNOW IT'S NOT GONNA MATERIALLY AFFECT THE COST THAT WE'RE TALKING ABOUT AND, AND MORE IS THE PITY, BUT THE FACT THAT FOR 30 YEARS WE'VE BEEN LEAVING MONEY ON THE TABLE THAT WOULD GO TO HELP, UM, FUND SOME OF THE THINGS THAT WE NEED TO, TO PAY FOR.
UM, IT'S, IT'S COMPLETELY SHOCKING.
SO THOSE THINGS NEED TO BE DONE YESTERDAY.
LIKE WE NEED TO MAKE SURE THAT WHATEVER OUR RATES ARE INCREASING TO AFTER THIS FIRST FIVE YEAR CYCLE THAT WE BUILD IN, THAT THINGS ARE TIED INTO CPI OR WHATEVER THE RIGHT NUMBER IS.
LET'S SAY 3.5%, WHICHEVER IS HIGHER.
IF I CAN COMMISSIONER, WE CAN DEFINITELY LOOK AT, I THINK THAT WAS GONNA BE PART OF THE PROPOSAL WHEN, UM, THE, THE WATER SOURCE, STORM WATER RATE ORDINANCE, UH, WOULD COME IN, I BELIEVE MARCH IS WHAT OUR ANTICIPATION, IT DOESN'T SEEM WE'RE GONNA GET A FAVORABLE RECOMMENDATION HERE AND THAT WE COULD DEFINITELY MAKE SURE THAT THE, THOSE RATES ARE SET, UH, OR THE IMPACT, UH, IMPACT FEES SIDE OF IT WOULD DEFINITELY BE IMPACT TO, UM, TO, TO, UH, A CPI INFLATION INDEX.
UM, THE OTHER THING I WANNA SAY IS THAT, UM, I FIND IT AMUSING THAT PRIOR COMMISSIONS, UM, TALK ABOUT THE PAUSE AND HOW DAMAGING IT'S BEEN, WHICH IT HAS BEEN.
AND I'M THRILLED TO BE A PART OF THE COMMISSION NEWS.
WHAT'D YOU CALL IT? STOP THE PAUSE, STOP, PAUSE.
AND WE HAVE STOP THE PAUSE 2.0 COMING IN THE WAY SOON.
PAUSE THE PAUSE, STOP THE PAUSE, STOP THE PAUSE 2.0.
UM, BUT YET THAT'S THOSE SAME COMMISSIONS THAT PRIDED THEMSELVES ON BEING SO FISCALLY ASTUTE, HAVE KICKED THE CAN DOWN THE ROAD ON SO MANY ISSUES.
THE PARKING ISSUE, UM, THE PARKING RATES ISSUE, THESE KIND OF SORT OF BASIC BLOCKING AND TACKLING THINGS OF MAKING SURE THAT WE ARE, UM, CHARGING THE RIGHT AMOUNTS.
AT THE END OF THE DAY, THE ISSUES THAT WE ARE TRYING TO AMELIORATE WITH THESE, UM, PROJECTS THAT THESE RATE HIKES ARE FUNDING, THE, THE RATE HIKES AREN'T GOING FOR MORE PEOPLE OR MORE SERVICES OR THINGS THAT ARE, UM, DISCRETIONARY TO A CERTAIN DEGREE.
THE RAINS ARE GONNA KEEP COMING AND THEY'RE GONNA GET WORSE.
AND THE SEA LEVEL RISE IS GOING TO KEEP RISING.
AND THE ISSUES THAT WE FACE DURING RAIN SEASON AND DURING HIGH TIDES, WHETHER OR NOT THE STATE OF FLORIDA WANTS TO TALK ABOUT IT IN THEIR SCIENCE BOOKS, WE ARE GOING TO BE FACING THEM HERE.
AND OUR RESIDENTS, WHEN THEIR CARS ARE BEING FLOODED AND THEY ARE STALLED ON ALTON ROAD AND PARTS OF NORMANDY IS ARE AVAILABLE TO YOU ONLY WITH SCUBA GEAR ARE GOING TO BE REALLY UPSET THAT WE HAVE NOT, UM, DONE THE WORK FAST ENOUGH.
BUT THE ONLY WAY TO, TO DO THE WORK AT ALL, AND MAYBE WE COULD DO FOUR PROJECTS INSTEAD OF TWO WITH THESE RATES THAT WE'RE DISCUSSING.
THE ONLY WAY TO DO THAT IS TO BE GROWNUPS IN THE ROOM AND DO WHAT SHOULD HAVE BEEN DONE YEARS AGO, WHICH IS INCREASE THE RATES THE WAY WE NEED TO, TO GET US TO THE FUNDING LEVELS WE MUST BE AT IN ORDER TO MAKE THIS CITY, UM, RESILIENT TO THE POINT THAT WE CAN CONTINUE LIVING HERE IN A MANNER THAT WE ARE ACCUSTOMED TO.
I DON'T SEE ANY WAY FORWARD OTHER THAN TO APPROVE THIS FULLY FUNDED, UM, OPTION NUMBER ONE, UNDERSTANDING THAT IT'S A CHALLENGE FOR, FOR COLLEAGUES WHO ARE RUNNING FOR ELECTIONS.
BUT AT THE END OF THE DAY, THE ISSUE IS TO OUR RESIDENTS, YOU NEED THE SERVICES.
WE ARE READY TO PULL THE TRIGGER ON THE SERVICES.
THE SERVICES HAVE BEEN DELAYED.
THE ONLY THING, UH, IN PRIOR YEARS NOW WE NEED TO FUND THE SERVICES.
AND THAT IS THE ONLY PATH FORWARD.
IF, IF I MAY, SINCE YOU MENTIONED PRESIDENTS RUNNING FOR REELECTION, UH, THIS YEAR,
IS IT, IS IT SOMETHING UNPOPULAR TO DO? YES.
YOU KNOW, UM, IT, SOMETHING THAT'S NEAR AND DEAR TO MY HEART IS, YOU KNOW, EQUITY AND AFFORDABILITY ISSUES IN OUR, IN OUR COMMUNITY AND INDIVIDUALS WHO LIVE ON
[00:45:01]
VERY FIXED INCOMES, UH, LOWER INCOME RESIDENTS WHO, WHO COULD BE DISPROPORTIONATELY AFFECTED, UM, BY RATE HEIGHTS, UM, YOU KNOW, WHICH EXACERBATES AFFORDABILITY ISSUES.BUT WHAT'S OUR ALTERNATIVE? AND OUR ALTERNATIVE IS, AS MY COLLEAGUES HAVE MENTIONED, DELAY PROJECTS.
YOU KNOW, WE CAN SEEK ADDITIONAL FUNDING FROM THE STATE AND FEDERAL GOVERNMENT, BUT I DON'T THINK IT'S, WE'RE GONNA GET THE LEVEL OF FUNDING, UH, THAT'S GONNA BE SUFFICIENT TO SHIFT THE COST OF, OF AWAY FROM THE RATE PAYER.
AND SO, YOU KNOW, SO WHAT IS, WHAT IS IMPORTANT HERE, I THINK IS ALSO, YOU KNOW, REALIZING THAT WE CAN MAINTAIN OUR CREDIT WORTHINESS, UM, YOU KNOW, BY DOING THIS.
WE NEED TO DELIVER ON THESE, ON THESE PROJECTS.
AND, AND I, I SEE THAT THIS, YOU KNOW, PROPOSED RATE STRUCTURE IS TRYING TO MINIMIZE AS MUCH AS IT CAN, THE FINANCIAL IMPACTS ON RESIDENTS, WHILE MAKING SURE THAT WE ENSURE OUR LONG-TERM SUSTAINABILITY.
AND THAT'S NOT AN OPTIONAL EXPENSE INFRASTRUCTURE.
AND THE INTEGRITY OF OUR INFRASTRUCTURE IS NOT AN OPTIONAL EXPENSES AND NECESSARY INVESTMENT.
AND DEFERRING THESE UPGRADES WILL ONLY LEAD TO HIGHER COSTS AND INCREASED RE RISK IN IN THE FUTURE.
SO THE QUESTION IS NOT, IT'S NOT WHETHER WE DO THIS RATE CHANGE.
THE QUESTION IS WHEN DO WE DO IT? AND IF WE WAIT LATER, WILL THAT RATE INCREASE HAVE TO BE HIGHER? AND THAT'S WHERE THIS BECOMES, YOU KNOW, A VERY EASY DECISION TO MAKE.
NOT ONE THAT ANYONE LIKES TO MAKE.
I DON'T THINK ANY OF US LIKE MAKING THIS, UH, THIS DECISION.
BUT, YOU KNOW, I, I THINK IT'S, IT'S A NECESSARY ONE.
IF, IF I COULD ADD CHAIR TO, TO THAT.
I THINK WHEN, WHEN WE FIRST STARTED TALKING, AND THEN AGAIN MIGHT HAVE BEEN BEFORE, BEFORE YOU WERE ELECTED, UM, YOU HAD ASKED A QUESTION WHEN WE TALKED ABOUT THIS BILLION DOLLAR BACKLOG OF INFRASTRUCTURE, YOU SAID, WHAT DO WE NEED TO MOVE THE NEEDLE? IT'S A BILLION DOLLARS.
THIS IS, THIS IS HUNDREDS OF MILLIONS OF DOLLARS WORTH OF ABSOLUTELY NEEDED WATER STORAGE, STORMWATER INFRASTRUCTURE.
THIS IS GONNA ENSURE THAT WE'RE DELIVERING CLEAN WATER TO OUR RESIDENTS, THAT WE'RE NOT HAVING SANITARY SEWER OVERFLOWS, THAT SEWAGE IS BEING TRANSMITTED PROPERLY AND DRAINING OUR STREETS.
UM, YOU KNOW, WE DON'T WANT TO END UP BEING, YOU KNOW, WE HAVE A, A GOOD EXAMPLE TO OUR NORTHERN NEIGHBOR, UH, IN FORT LAUDERDALE, UH, SEVERAL YEARS AGO WHO HAD A MASSIVE, UH, UH, FAILURE OF THEIR SEWAGE SYSTEM AND HAD TO DO EMERGENCY RATE INCREASES AND AN EMERGENCY $200 MILLION BOND ISSUANCE BECAUSE IT WAS RUN TO FAIL AT THE END OF THE DAY.
AND WE WERE LUCKILY ARE NOT ABLE TO DO THAT.
AND THEN, SO SPEAKING OF THE RATE INCREASES, THE RECOMMENDATION HERE IS TO RIGHT AFTER THE RATE ORDINANCE IS PUT INTO PLACE THAT THESE, THE FIRST SET OF RATE INCREASES WOULD BE IMMEDIATE.
BUT TO NOTE THAT FOR FY 26, THE OCTOBER 1ST, WHEN WE USUALLY ADJUST THE RATES, THERE WILL BE NO INCREASE.
SO WE'D HAVE AN ADJUSTMENT NOW IMMEDIATELY ISH.
AND THEN FOR FY 26, OTHER THAN THE REGULAR PASS RE CHARGE AND THE WHATEVER MIAMI, THE COUNTY CHARGE FOR WATER, THERE WOULD BE NO ADDITIONAL INCREASE FOR 20, UH, FOR OCTOBER 1ST 26.
SO WE HAVE IMMEDIATE ONE MAY OR JUNE, NOTHING IN OCTOBER, LIKE THERE IS STANDARD, AND THEN WE'D START AGAIN ON A REGULAR ANNUAL BASIS.
SO I JUST WANTED MENTION THAT FOR THE RECORD.
I I HAVE A QUESTION ABOUT THAT.
UM, BECAUSE WE TALKED ABOUT IT, UM, BEFORE, BUT I, I, IT JUST OCCURRED TO ME, WOULD IT MAKE IT MORE PALATABLE IF WE DIDN'T SKIP THE YEAR WHERE WE HAVE NO INCREASE AND JUST MADE SMALLER INCREASE EFFECTIVELY IT'S JUST ACCELERATING THE ONE THAT WOULD'VE BEEN OCTOBER 1ST TO, TO NOW.
UM, AND AGAIN, IT'S IMPORTANT, WE THINK IT'S IMPORTANT TO HAVE THAT RATE ADJUSTMENT NOW INSTEAD OF OCTOBER 1ST BECAUSE WE ARE, NO, NOT THE OCTOBER 1ST THING IS LIKE ACCELERATING IT IS FINE, BUT THEN WE SKIP A YEAR.
SO THE REMAINING THREE YEARS, THREE, FOUR, AND FIVE, COULD WE MAKE THOSE INCREASES SLIGHTLY LOWER IF WE STARTED THEM EARLIER INSTEAD OF SKIPPING WE'RE, WE'RE NOT REALLY SKIPPING A YEAR.
UM, BECAUSE INSTEAD OF IT BEING OCTOBER 1ST, IT'S JUST BEING IMPLEMENTED A FEW MONTHS EARLY INSTEAD OF ON THE OCTOBER FIRSTS.
SO THERE'S NOT REALLY A, A YEAR SKIP FROM THAT PERSPECTIVE.
AND WITH, BUT THERE'S NO INCREASE IN, RIGHT.
WE'RE, WE'RE DOING WHAT WOULD BE OCTOBER 1ST WE, WE WANT TO DO NOW IN MAY AND JUNE.
UM, SO BY ACCELERATING THAT, WE'RE ABLE TO BUILD A NEW FINANCIAL STRUCTURE SO THAT WE HAVE TO GO OUT TO THE MARKETS THAT WILL HAVE TO PROBABLY COME BACK WITH A NEW DECLARATION OF INTENT TO ISSUE, WHICH WAS LAST DONE FOR 85 MILLION.
[00:50:01]
ISSUED THAT YET.WE'VE RUN OUT OF BONDING CAPACITY AS YOU KNOW, UH, WHEN WE DID PUMP STATION 28, UH, WHICH WAS NEEDING, I THINK IT WAS SHORT, LIKE NINE MILLION-ISH DOLLARS, WE HAD TO DO KIND OF AN UNPALATABLE THING, WHICH WAS ROBBING PETER TO PAY PAUL, WHERE WE TOOK MONEY FROM THE DOT UH, ALTON ROAD SOUTH PROJECT TEMPORARILY.
'CAUSE THAT MONEY'S NOT NEEDED TILL NEXT YEAR.
SO THAT'S WHY WE THINK IT'S IMPORTANT TO GET THAT STRUCTURE, UH, PUT IN PLACE NOW.
SO I HAVE, I HAVE NO PROBLEM WITH STARTING IT NOW, BUT THEN IN THE NEXT YEAR, THERE'S THE, THE RATE WILL STAY THE SAME AS IT IS NOW.
MY UNDERSTANDING IS WE'RE NOT SKIPPING A YEAR.
IT'S ACTUALLY JUST LIKE TWO OR THREE MONTHS.
SO IF WE WOULD IMPLEMENT IT RIGHT NOW, AND THEN AGAIN IN OCTOBER, ESSENTIALLY IT WOULD JUST BE DOUBLE HIT THREE MONTHS.
SO THAT WOULD MAKE SENSE TO DO ONE NOW AND AGAIN IN A FEW MONTHS IN OCTOBER.
I UNDERSTAND I'M TALKING ABOUT THE BACK THREE MONTHS.
SO THE, THE 26 RATE BASICALLY STARTS NOW.
AND THEN THERE'S 1 27, 28, 29, 30.
THERE'LL BE A RATE INCREASE EVERY YEAR.
AND IF IT TOOK, IF YOU TOOK THE LAST FEW YEARS AND, UM, PUT THEM INTO 26, SO THERE'D BE A RATE INCREASE NOW, THEN THERE'D BE ANOTHER RATE INCREASE IN 26.
BUT THEN 27, 28, 29 WOULD ALL BE SLIGHTLY SMALLER BECAUSE SOME OF THAT WOULD GO INTO 26.
YOU, YOU'D BE TALKING ABOUT LIKE TWO INCREASES THEN.
YEAH, WE TWO, IT WOULD BE TWO INCREASES WITHIN THREE MONTHS.
UM, AND THAT'S NOT THE ADMINISTRATION'S RECOMMENDATION.
THAT'S THE ANSWER I NEEDED TO UNDERSTAND.
I JUST NEED, IF I MADE THROUGH THE CHAIR, UH, SO WHAT IS THE BENEFIT BETWEEN IMPLEMENTING THE RATE INCREASE IMMEDIATELY AS OPPOSED TO WITH THE FISCAL YEAR? FOR ME, IT SEEMS LIKE WITH THE FISCAL YEAR IS THE RIGHT TIME TO DO THESE INCREASES, AND I DON'T LIKE, I DON'T LIKE THE PRECEDENT OF MIDYEAR DOING CHANGES BECAUSE THEN, YOU KNOW, MIDYEAR YOU CAN GET, YOU KNOW, ALL OF A SUDDEN CHANGES ON BTR FEES, MIDYEAR, YOU CAN GET CHANGING CHANGES ON, YOU KNOW, PARKING RATES.
UH, I, I LIKE THINGS STARTING CLEAN WITH THE FISCAL YEAR GENERALLY.
SO EXPLAIN TO ME AGAIN, WHAT'S THE ADVANTAGE? ONE OF THE, THE MAIN THINGS BY PUTTING IT IN PLACE NOW IS WE MAY BE IN A SITUATION TO BE TALKING TO RATING AGENCIES.
WE MAY BE IN A POSITION TO WHERE I HAVE TO COME BACK TO DO A DECLARATION OF INTENT TO ISSUE.
WE HAVE TO REALLY LOOK AT THE FINANCING PLAN.
WE THOUGHT WE'D BUILDING IT THIS WAY, UM, AND HAVING IT IMMEDIATELY IN EFFECT WOULD BE A MORE PALATABLE APPROACH TO IT.
BUT IF YOU PASS THE ORDINANCE EFFECTIVE, UH, RATE IMPLEMENTATION WITH FISCAL YEAR 26, YOU CAN PASS THE ORDINANCE IMMEDIATELY.
YOU HAVE, YOU KNOW, THE DECLARATION OF THE POLICY, UH, FOR FOR FOR FOR THE INCREASE.
ISN'T THAT SUFFICIENT FOR YOU TO GO TO BE ABLE TO GO OUT AND DO THAT FINANCING? WE WOULD HAVE LOST REVENUE OBVIOUSLY, THAT, THAT ADDITIONAL INCREASE, UH, FOUR MONTHS WORTH OF ADDITIONAL INCREASE, UH, REVENUE.
I DON'T KNOW IF WE WOULD LOOK BACK TO, TO JUST THE RATES HIGHER IN THE FUTURE THEN TO COMPENSATE FOR THOSE FOUR MONTHS OF ADDITIONAL LOSS.
OR WE WOULD JUST LOOK AT, WELL, WE'RE NOT GOING BACK.
ARE WE GOING BACK AND RECOUPING LOST REVENUE FOR NOT HAVING DONE IT AT THE BEGINNING OF THIS FISCAL YEAR? I MEAN, NO, THAT WOULD BE APPLIED IMMEDIATELY.
SO, I MEAN, I'VE, I DON'T KNOW.
I I JUST THINK, YOU KNOW, THIS DOES NEED TO GO TO THE CITY COMMISSION AND REALIZING THAT THIS DOES NEED TO GO TO THE CITY COMMISSION.
AND I THINK THAT THE PATH FORWARD, GIVEN HOW IMPORTANT THIS IS, UM, TO SUPPORT OUR INFRASTRUCTURE NEEDS, THAT WHICH AGAIN, THEY'RE NOT OPTIONAL, UH, INFRASTRUCTURE IMPROVEMENTS.
I THINK THE WAY THAT THIS REACHES THE FINISH LINE IS IF IT STARTS WITH FISCAL YEAR 2026, OCTOBER 1ST OF THIS YEAR, IF, IF THAT'S A DIRECTION OF THE COMMISSION MAKING, UH, THE COMMITTEE TO MAKE THAT RECOMMENDATION THAT THE COMMISSION, UH, WE COULD, I THINK WE COULD WORK WITHIN THAT STRUCTURE.
AND IF, IF I COULD MAKE JUST A COUPLE OF, OF, UH, JUST A FEW POINTS AS TO WHY THERE'S A, YOU KNOW, UM, A, A FEW ADDITIONAL POINTS.
ONE IS, IS THAT, UH, WHEN, WHEN YOU ISSUE BONDS, THE, THE RATING AGENCIES ALSO WANNA SEE FIVE YEARS OF, OF HISTORY, UH, A HISTORICAL, UM, PERFORMANCE ON, ON YOUR COVERAGE.
AND SO BY, UM, AS, AS JASON MENTIONED, YOU'D HAVE IMPROVED METRICS FOR THIS FISCAL YEAR, WHICH I THINK WOULD, WOULD HELP, UH, WOULD FAVOR YOUR, YOUR CREDIT RATING.
AND THE OTHER, THE OTHER POINT IS, YOU KNOW, WE'VE, WE'VE TALKED ABOUT HOW WE'RE, YOU KNOW, WE'RE BEHIND ON KEEPING UP WITH INFLATION AND, YOU KNOW, HAVING EARLIER RECOVERY IS JUST GONNA HELP CATCH UP.
UH, GET IT, YOU KNOW, KIND OF A TIME VALUE OF MONEY WITH THREE MONTHS, RIGHT? YEAH.
[00:55:02]
YEAH, I, I'M OPEN TO EITHER THE ONE THING WHILE WE KIND OF, UH, CHEW ON THAT ABOUT WHEN BEST TO IMPLEMENT IT, I, I'M RATHER INDIFFERENT.UH, I SEE THE POINTS THAT YOU'RE MAKING, UH, AS PART OF THIS IS, UH, AND WE TALKED ABOUT THIS IN MY BRIEFING, MR. C FFO AND CITY ATTORNEY UH, I WOULD LIKE OUR MARKETING COMMUNICATIONS DEPARTMENT TO PUT TOGETHER A ROBUST MESSAGING, UH, PROGRAM HERE, RIGHT? BECAUSE YES, PEOPLE EVENTUALLY ARE GOING TO BE ASKED TO PAY MORE.
UM, BUT I THINK OUR RESIDENTS ARE, UH, TREMENDOUSLY, UM, NOBODY'S ENTHUSIASTIC ABOUT PAYING HIGHER RATES, BUT IF WE CAN SHOW THEM THERE'S TANGIBLE PROJECTS THAT ARE GOING TO IMPROVE OUR EVERYDAY LIVES, THIS DOESN'T JUST GO INTO THIS BLACK HOLE OR INTO THIS AMBIGUOUS BILLION DOLLAR BUDGET, WE ARE ACTUALLY ABLE TO DELIVER ON THESE LONG TERM PLANNED AND NEEDED RESILIENCY PROJECTS BECAUSE OF THIS.
I, I THINK, UH, IF WE CAN HAVE A ROBUST MESSAGING PROGRAM THERE, I, I THINK THAT'LL GO A LONG WAY.
UM, YOU KNOW, I DON'T THINK ANY OF US TAKE COMFORT IN DOING THIS, BUT OKAY, THIS IS GOING TO SPECIFIC THINGS THAT IS PUTTING OUR MONEY WHERE OUR MOUTH IS FOR RESILIENCY AND, AND THE LONG TERM WELLBEING OF OUR CITY.
I THINK WE COULD DEFINITELY ADD THAT TO THE MOTION.
ONE QUESTION, JUST TO CLARIFY ON THE, IS IT APPEARS TO A REQUEST TO, TO MODIFY TO OCTOBER 1ST, WOULD THAT BE FOR THE STANDARD WATER? MONTHLY WATER AND SO STORM WATER, BUT THE IMPACT FEES WOULD BE IMMEDIATE.
UM, THERE SEEMED TO BE, I WANNA JUST GET CLARIFICATION ON IT.
'CAUSE THERE'S REALLY TWO SETS THERE.
I, I THINK, UH, COMMISSIONER FERNANDEZ IS, UH, PREMISE WAS THE REMAIN CONSISTENT AND MAINTAIN PRESIDENT.
SO WHILE I'M FLABBERGASTED AS WELL, VOICE MAYOR BOT, I ALWAYS GET BETTER AT SCRABBLE EVERY SINGLE MEETING THAT I HAVE WITH YOU.
I'M A FULL SERVICE COMMISSIONER,
UM, BUT, YOU KNOW, I CERTAINLY DON'T WANT TO APPEAR THAT WE'RE KICKING THE CAN DOWN THE ROAD, UH, FOR THE DEVELOPMENT FEES, BUT I THINK WE'RE OKAY.
THIS IS FOR THE LONGER TERM, SO WE'LL JUST BE CONSISTENT IN THAT.
I, I BELIEVE WHAT I'M HEARING THEN IS THE RETURN TO COMMISSION WITH A FAVORABLE RECOMMENDATION TO PRESENT A WATER SEWER STORM, STORMWATER, UH, RATE ORDINANCE, UH, WITH THE INITIAL IMPLEMENTATION TO START, UH, OCTOBER 1ST AND THE ADMINISTRATION TO DEVELOP A MARKETING PLAN FOR THIS INFRASTRUCTURE PROGRAM.
'CAUSE THAT'S WHAT IT'S, YOU KNOW, IF I MIGHT, UM, I, I UNDERSTAND ABOUT NOT WANTING TO BREAK PRECEDENT, BUT WHEN WE DID THE ROLL OFF FEE INCREASE, DID WE WAIT UNTIL THE NEXT FISCAL YEAR OR DID WE IMPLEMENT, SO I WOULD SEPARATE THEM BECAUSE I THINK ONE SORT OF AFFECTS RESIDENTS AND, UM, AND THAT'S CLEAN.
BUT IF WE'RE JUST CORRECTING, UM, BAD HOUSEKEEPING ON OUR, ON OUR SIDE FROM A DEVELOPMENT PERSPECTIVE, I THINK THE IMPACT FEES, WE COULD, WE COULD START NOW.
WE, WE HAVE A PRECEDENT FOR THAT ALREADY.
IT'S REPAIRING DAMAGE THAT WAS DONE FOR THE LAST 30 YEARS, AND IT'S NOT REALLY PUBLIC FACING A FEW THOUSAND DOLLARS FOR THE WHOLE BUILDING.
IS THAT OKAY? THAT, THAT THIS IS, THAT'S FOR NEW DEVELOPMENT IMPACT FEES FOR NEW DEVELOPMENTS WHENEVER WE, YEAH.
IT'S A FEW THOUSAND DOLLARS FOR BUILDING EXISTING, YEAH.
AND WE'LL SHOW COMMISSIONER, UH, IF WE CAN HEAR FROM THE PUBLIC.
I BELIEVE OUR FROM MITCH'S ON THE LINE,
I'VE A 37 YEAR RESIDENT COME MARCH.
OUR BILLION DOLLAR BUDGET WAS 500,000 A DOZEN YEARS AGO, AS SEEN EVERY OCTOBER SINCE THEN, WE'VE HAD OVER A DOZEN UTILITY BILLING RATE INCREASES, WHICH ALSO INCLUDE NEWLY CREATED FEES SUCH AS THE MONTH OR MONTHLY FIRE SPRINKLER FEE.
WE HAVE HIRED 500 MORE MUNICIPAL EMPLOYEES OVER THAT PERIOD OF TIME AS PUBLIC SAFETY AND QUALITY OF LIFE IMPROVED ENOUGH WITH THE POOR BARREL SPENDING.
WE HEAR IT, WE WATCH IT, WE'RE AMUSED BY IT, BUT YOU NEED TO FOCUS ON REDUCING OUR BUDGET AND DENY RATE HIKES, THESE TYPES OF RATE HIKES, WHICH HAVE HAD THE GREATEST IMPACT ON HOUSING AND AFFORDABILITY AND THE EXODUS OF RESIDENTS IN OUR CITY.
AND I BELIEVE WE HAVE TWO OTHER PEOPLE AS WELL.
RAQUEL, PLEASE UNMUTE YOURSELF.
[01:00:01]
UH, THANK YOU, JEFF FECAL FIVE 90 LAKEVIEW DRIVE.UM, I, I WOULD LIKE TO SPEAK ON BEHALF OF THE ADMINISTRATION AND ITS RECOMMENDATION.
WE HAVE A CRITICAL NEED HERE, AND I THINK THE PROPOSED CHANGES RECOMMENDED, PROPOSED INCREASES RECOMMENDED BY THE ADMINISTRATION OUGHT TO BE IMPLEMENTED IMMEDIATELY.
AND IT'S NOT CREATING A PRECEDENT BECAUSE WE HAVE A LONG STANDING AND CRITICAL NEED FOR THESE INFRASTRUCTURE PROJECTS.
JUST TO CITE SOME OF THE SALIENT POINTS FROM THE ADMINISTRATION RECOMMENDATION, AS AND AS YOU HEARD FROM YOUR EXPERT, THE CITY'S WATER AND SEWER RATES HAVE NOT KEPT UP WITH ACTUAL INFLATION.
THE STORM STORMWATER SYSTEM DOES NOT HAVE THE FINANCIAL METRICS TO ENABLE THE CITY TO MAINTAIN A FAVORABLE AA BOND RATING AND HAS MINIMAL DEBT CAPACITY TO FINANCE FUTURE PROJECTS.
THE CITY'S RENEWAL AND REPLACEMENT NEEDS ARE NOT GOING TO GO AWAY AND WILL BE MORE EXPENSIVE TO ADDRESS IN THE FUTURE.
AND WITH RESPECT TO STORMWATER, THE CITY COULD POSSIBLY LOSE GRANT FUNDING IF IT'S UNABLE TO PROCEED WITH THE PROJECTS DUE TO LACK OF ADEQUATE FINANCIAL RESOURCES AS THE CHAIRMAN OF THE COMMITTEE AS NOTED.
SO I WOULD URGE THE COMMISSION AND THE COMMITTEE TO, UH, ADOPT THE ADMINISTRATION'S RECOMMENDATIONS, ADOPTING THE PROPOSED MONTHLY WATER, SEWER, AND STORM WATER RATES IMMEDIATELY, UH, THE PASS THROUGH OF THE RATES FROM THE COUNTY, AND, UH, IMMEDIATE INCREASE TO THE WATER AND SEWER IMPACT FEES.
AND AS YOU KNOW, UH, I AND MY FIRM REPRESENT DEVELOPERS.
THOSE ARE THE ONES THAT ARE GONNA HAVE TO PAY IT.
THE DEVELOPMENT COMMUNITY NEEDS TO LARRY SCHAEFER, PLEASE UNMUTE YOURSELF.
UM, I WANTED TO JUST HIGHLIGHT THAT YOU'RE BRINGING OUT RATE INCREASES, AND I, I DON'T WANNA POSE THE RATIONALIZATION HERE.
BASICALLY, YOU'RE CLEANING UP STUFF AND DOING WORK THAT PRIOR ADMINISTRATIONS REFUSE TO DO SO VERY MUCH IN FAVOR OF THAT.
BUT I JUST WANNA SORT OF ENCOURAGE YOU TO READ THE ROOM ON, ON, ON FINANCIAL MATTERS RELATED TO THE, THE TAXPAYERS.
UH, THIS YEAR IS GONNA BE A PERFECT STORM OF PAIN FOR CONDO OWNERS.
BY THE END OF 2025, THE IMPACT OF THE CHAMPLAIN TOWERS COLLAPSE RESERVE REQUIREMENTS LAWS ARE GONNA BE HITTING CONDOS.
YOU DID PASS A BUDGET THAT WAS, IS BALLOONING AND INCREASED PROPERTY TAXES, MORE OR LESS BY 10%.
INSURANCE RATES HAVE GONE THROUGH THE ROOF, AND MORTGAGE RATES REMAIN VERY, VERY HIGH.
SO WHEN YOU BRING THIS OUT, I, I, JOE SAID, LET'S GET A GOOD MARKETING AND COMMUNICATIONS EFFORT GOING HERE.
UM, IT, BECAUSE IT'S COMING AT A TIME WHERE THERE JUST DOESN'T SEEM TO BE ANY RELIEF FROM THE PAIN, UH, FOR THESE CONDO OWNERS.
AND I OWN A SINGLE FAMILY HOME.
I'M JUST SPEAKING, UH, HOPEFULLY FOR, FOR MY NEIGHBORS, VERY MUCH, YOU KNOW, LIVE IN CONDOS AND PAY FOR THIS.
UM, AND THE OTHER THING JUST TO MAYBE SORT OF, UH, SHOW THAT YOU'RE, YOU'RE WORKING ON IT, I WOULD MAYBE SUGGEST THAT YOU SAY THESE INCREASES, UH, ARE GONNA PAY FOR NEW SEWAGE SYSTEMS, AND WE NEED THAT TO CORRECT OUR WATER QUALITY PROBLEM.
SO IF THE TAXPAYER SAYS, HEY, I'M GONNA GET, UH, BETTER QUALITY WATER IN THE BAY, AND IN THE OCEAN WHERE I SWIM AND MY KIDS SWIM AND MY, MY DOGS SWIM, THEN I SAY, OKAY, GREAT.
NOW I KNOW WHY I'M PAYING A LITTLE BIT MORE.
AND THEN GO OUT AND ACTUALLY DELIVER ON THOSE SEWAGE PIPE UPGRADES AND ACTUALLY DELIVER CLEANER WATER, THEN MAYBE YOU HAVE A WIN HERE.
THANK YOU GUYS FOR YOUR SERVICE.
UH, LARRY TO HEAR LAST POINT, I, I AGREE.
AND THAT'S WHAT, UH, WHERE I WAS GOING WITH THE MARKETING STRATEGY.
WHEN WE LOOK AT THE, UM, WATER ALERTS THAT WE CONTINUE TO GET AT, UH, UH, PARKVIEW ISLAND OR RECENTLY, UH, ON THE OCEAN AND THINGS LIKE THAT, UM, THIS GOES A LONG WAY TOWARDS, UH, REALLY PUTTING OUR MONEY WHERE OUR MOUTH IS AND CARING ABOUT THE QUALITY OF OUR BAY, CARING ABOUT OUR ENVIRONMENTAL ISSUES, CARING ABOUT RESILIENCY.
AND, UM, WHILE I DON'T WANT TO MINIMIZE THE FINANCIAL BURDEN THAT I, I THINK, UH, A LARGE MAJORITY OF US, I WANNA SAY OUR RESIDENTS, BUT YOU KNOW, WE'RE, WE'RE RESIDENTS AS WELL THAT ARE NOT IMMUNE FROM THAT.
UM, CAN WE QUANTIFY, ESSENTIALLY, UH, IF WE COULD GO BACK TO THE SLIDE THAT, UH, WE DID BEFORE, ESSENTIALLY, I THINK, YOU KNOW, FOR THE NEXT COUPLE OF YEARS, AGAIN, NOT TO MINIMIZE ANYTHING, BUT FOR THE AVERAGE HOMEOWNER OR AVERAGE CONDO DWELLER, WE'RE TALKING ABOUT A MONTHLY INCREASE OF ABOUT $15, CORRECT? THE, THE FIRST FIRST YEAR CORRECT.
[01:05:01]
AND STORM WATER GETS, SO, SO AGAIN, NOT TO MINIMIZE ANYTHING, BUT WHEN WE'RE TALKING ABOUT PREPARING FOR RESILIENCY CHALLENGES FOR THE FUTURE, IMPROVING OUR WATER QUALITY, UM, NOT ONLY WHAT'S COMING INTO OUR HOME, BUT OUR MOST PRECIOUS RESOURCES OUT IN BISQUE BAY, UH, YOU KNOW, WE'RE TALKING ABOUT AN INCREASE FOR THE AVERAGE PERSON OF ABOUT 10 TO $15 PER MONTH.SO THE PROPOSED RATE INCREASES, IT'S 9% IN 2025.
IN OTHER WORDS, OCTOBER 1ST, 2025, THEN ANOTHER 9% OCTOBER 1ST, 2027, UH, AND THEN ANOTHER 9%, UH, IN 2028.
IS THAT CORRECT? AND THEN FROM FROM THERE ON FORWARD, UH, IT'S, UH, 4.5 ANNUALLY THROUGH 2031.
THAT'S FOR THE WATER AND SEWER? CORRECT.
BUT THAT'S UNDER, YOU KNOW, TODAY'S COSTS.
AND, YOU KNOW, I'M VERY MINDFUL OF INFLATIONARY AND ECONOMIC, UH, UNCERTAINTIES.
YOU KNOW, THAT'S SOMETHING THAT I THINK, YOU KNOW, I'M, I'M, MY, MY, MY FINANCIAL SCRAMBLE GAME IS GETTING BETTER.
EVERY
SO, YOU KNOW, YOU KNOW, COULD THESE RISING CONSTRUCTION COSTS, YOU KNOW, CONSTRUCTION MATERIALS, LABOR, UH, COULD THEY MAKE THESE PROJECT ESTIMATES POTENTIALLY UNRELIABLE? AND, YOU KNOW, COULD WE BE FACING INSTEAD OF A 9% INCREASE IN 2027 OR 2028, A HIGHER, UH, INCREASE BECAUSE OF, YOU KNOW, INFLATION AND ECONOMIC CONDITIONS THAT WE CAN'T FORESEE RIGHT NOW? UM, I, I'LL LET MAYBE BRIAN SPEAK TO IT A BIT, BUT I WOULD SAY THAT WHEN THIS, UH, LONG-TERM FINANCIAL PLAN IS PUT TOGETHER, WHEN THE INFRASTRUCTURE PLAN, WHEN PROJECTS ARE MEANT TO BE PUT OUT THERE, THE PUBLIC WORKS DEPARTMENT HAS COST ESTIMATES, UH, THAT ARE DONE NOW, AND THEY ARE CASHFLOW ESCALATED.
THEY DO INDEX THOSE ITEMS TO INFLATION.
SO THEY DO TAKE, IT DOES, IS TAKEN INTO ACCOUNT.
NOW, IF IT'S AN EXTRAORDINARY LEVEL OF INFLATION LIKE WE HAD HERE OVER THE PAST COUPLE YEARS, IT DOES MAKE IT A LITTLE BIT MORE DIFFICULT.
BUT BRIAN, CAN YOU ADD A LITTLE BIT TO THAT? YEAH, AB ABSOLUTELY.
I MEAN, FOR IF, IF THE ACTUAL INFLATION TURNS OUT TO BE NINE OR 10% PER YEAR, LIKE, UM, YOU KNOW, WHICH WAS, YOU KNOW, UH, WHAT WE HAD A COUPLE YEARS AGO.
BUT, UM, YOU KNOW, THEN YEAH, THE, THE FINANCIAL FORECAST MAY NEED TO BE LOOKED AT AGAIN.
BUT, UH, I MEAN, RIGHT NOW WE'RE ASSUMING INFLATION OF AROUND 3% PER YEAR.
AND WE'RE HOPING THAT THAT'S, YOU KNOW, WE'RE HOPING THE PRICES WILL STABILIZE, BUT WE HAVE, UM, IN THIS FINANCIAL FORECAST, WE HAVE INCLUDED INFLATIONARY ALLOWANCES.
AND SO WHAT, I GUESS THE POLICY DECISION AT THAT POINT THAT THE CITY COMMISSION COULD TAKE IS, OKAY, HOW MANY PROJECTS DO WE MOVE FORWARD WITH AT THAT POINT, RATHER THAN, YOU KNOW, BECAUSE LET'S SAY, YOU KNOW, YOU HAVE THESE, YOU KNOW, INFLATIONARY ISSUES OR ECONOMIC UNCERTAINTIES.
THERE'S, THERE'S, LET'S SAY, A DOWNTURN THAT COULD IMPACT THE RESIDENT'S ABILITY TO AFFORD HIGHER UTILITY BILLS.
YOU KNOW, UM, YOU KNOW, THE, THE DISCUSSION AT THAT POINT COULD CENTER, WELL, HOW MANY OF THESE PROJECTS DO WE MOVE FORWARD WITH AS OPPOSED TO PASSING ALONG A HIGHER RATE INCREASE THAN WHAT IS BEING DETERMINED.
ONE THING YOU NEVER GET BACK IS THE TIME VALUE OF MONEY.
SO, SO, YOU KNOW, YOU'RE, YOU'RE AT LEAST IN, UH, THE, THE PROPOSAL IS TO INCREASE THEM INCREMENTALLY SO THAT EVEN IF YOU DO HAVE HIGHER COSTS, AT LEAST THE INCREMENTAL INCREASE WON'T BE, WOULD NOT BE AS HIGH AS IF YOU, UM, UH, THEN, THEN, UH, YOU KNOW, IF YOU HADN'T GRADUALLY INCR STARTED THE, THE INCREASES.
SO I CAN CHAIR, WE WOULD JUST, UM, I'LL STATE THE MOTION AGAIN JUST TO MAKE SURE IT'S CLEAR.
THE MOTION THAT COMMISSIONER BOUGHT, I THINK, WHO HAS TO MAKE, UH, RETURN THE COMMISSIONER FAVORABLE RECOMMENDATION, PRESENT A ON THE WATER SEWER STORMWATER RATE ORDINANCE WITH THE INITIAL IMPLEMENTATION OF THE MONTHLY RATE STRUCTURE TO START OCTOBER 1ST, 2025, AND THE IMPACT FEE ADJUSTMENTS TO START AS PRESENTED AND FOR THE ADMINISTRATION TO DEVELOP A MARKETING PLAN FOR THIS INFRASTRUCTURE PROGRAM.
AND I THINK NEXT, YOU, NEXT YOU HAD, UH, MB ONE.
CAN WE READ THAT IN MB ONE COMPREHENSIVE
[NB 1. COMPREHENSIVE ANALYSIS OF IMPACT OF ROLLED-BACK PROPERTY TAX RATE ON THE ADOPTED FY 2025 BUDGET]
ANALYSIS OF IMPACT OF ROLLED BACK PROPERTY TAX RATE ON THE ADOPTED 2025 BUDGET MB ONE.GOOD MORNING, TJ'S PUT ANOTHER PRESENTATION.
[01:10:05]
GOOD MORNING, PLEASE.SO, YEAH, SO, UM, JUST THANK YOU MR. CHAIR FOR, UH, BRINGING FORWARD THIS, UH, THIS, THIS ANALYSIS.
I THINK WE INTRODUCED THIS, UM, IN, IN NOVEMBER TO UNDERSTAND THE FINANCIAL IMPLICATIONS OF WHAT WOULD BE LIKE TO ADOPT A ROLLBACK BUDGET, JUST, UH, NOT JUST IN TERMS OF IMMEDIATE REVENUE CHANGES, BUT ALSO IN TERMS OF OUR ABILITY TO SUSTAIN VITAL SERVICES, UH, AND MAINTAIN, UH, FISCAL RESPONSIBILITY.
UH, SO, UH, WE HAVE TAMIKA, UH, WHO HAS PUT TOGETHER A PRESENTATION FOR US, AND I'M LOOKING FORWARD TO IT.
ALL RIGHT, PJ, YOU CAN PUT UP A PRESENTATION.
SO WE WILL BE TALKING ABOUT THE ANALYSIS THAT WE DID.
WE WERE REQUESTED BACK IN NOVEMBER TO LOOK AT WHAT THE 25 BUDGET WOULD LOOK LIKE IF WE DID ADOPT A ROLLED BACK RATE.
SO WE'LL TALK ABOUT THE IMPACT ON THE CITY'S OPERATIONS IF WE DID THIS, THE IMPACT ON HOMESTEAD PROPERTY VALUES AND THEIR TAXES, AND THE LONG TERM VIABILITY OF OUR FINANCIALS.
SO, JUST A LITTLE BACKGROUND ON OUR BUDGET.
SO 61% OF THE GENERAL FUND PROPERTY, UM, BUDGET IS IN PROPERTY TAX REVENUES.
AND SO IF WE IMPACT OUR ROLLBACK RATE TO, OR MILLAGE RATES BE THE ROLLBACK RATE, THAT'S GONNA IMPACT THOSE DOLLARS.
AND OBVIOUSLY BECAUSE IT'S 61% OF THE OVERALL REVENUES, IT'S GONNA HAVE AN IMPACT ON OUR OPERATING EXPENDITURES.
IKA, I APOLOGIZE FOR PUTTING YOU ON THE SPOT, UH, MR. CFO, FEEL FREE TO JUMP IN.
DO WE HAVE A BREAKDOWN OF THOSE PROPERTY TAXES? WHAT IS COMMERCIAL VERSUS WHAT IS RESIDENTIAL? I DON'T HAVE IT WITH ME, BUT I'LL HAVE IT BEFORE WE GET TODAY.
AND, AND I GUESS I'LL JUST TAKE THAT ONE STEP FURTHER.
IS THERE ANY WAY WHERE WE'D BE ABLE TO BIFURCATE? UH, NO.
YOU, YOU CAN'T HAVE DISCRIMINATORY PROPERTY TAX RATES.
PROPERTY TAX RATES ARE SET FOR ALL PROPERTIES WITHIN A A MUNICIPALITY.
AND JUST FOR PURPOSES OF THOSE WHO ARE PARTICIPATING VIRTUALLY OR, OR WATCHING, UM, AT HOME, YOU KNOW, WE'RE TALKING ABOUT A ROLLED BACK, UM, TAX RATE.
AND FOR, FOR THEIR PURPOSES, YOU KNOW, THAT'S THE TAX RATE THAT WOULD GENERATE THE SAME AMOUNT OF REVENUES AS AS LAST YEAR, AS THE LAST, UH, FISCAL YEAR.
IT DOESN'T INCLUDE NEW CONSTRUCTION OR OTHER ADJUSTMENTS, UH, JUST, YOU KNOW, EXISTING, EXISTING PROPERTY.
IS THAT CORRECT? MR. CFO? CORRECT.
JUST FOR CONTEXT, OH ME, GO BACK.
SO ON THE EXPENDITURE SIDE, THAT'S 61% OF OUR PROPERTY TAX REVENUES IS SUPPORTING 61% OF OUR OVERALL GENERAL FUND BUDGET.
AND OF THAT AMOUNT, 60% IS JUST PUBLIC SAFETY.
IF YOU DID ADD IN HOMELESS SERVICES, CODE COMPLIANCE AND, UH, PARK RANGERS, THAT ACTUALLY GOES UP TO 64%.
SO ANY IMPACT ON OUR GENERAL FUND REVENUES, PROPERTY TAX REVENUES IS GONNA IMPACT OUR ABILITY TO SUPPORT THOSE SERVICES, AS WELL AS THE OTHER SERVICES THAT ARE SUPPORTED BY OTHER PROPERTY TAX.
SO WHAT IS A ROLLBACK RATE? SO THE ROLLBACK RATE IS A MILLAGE RATE THAT WE WOULD CHARGE NEXT YEAR IN ORDER TO GATHER THE SAME REVENUES THAT WE DID THIS YEAR.
SO THAT'S A CALCULATED NUMBER.
AND BASED ON OUR FY 25 BUDGET, IT WOULD'VE BEEN INSTEAD OF 6.1481, THE MILLAGE RATE WOULD'VE BEEN SIX 5.6354.
SO THE MILLAGE RATE IS BROKEN DOWN INTO FOUR COMPONENTS.
AS YOU CAN SEE HERE, THE OPERATING MILLAGE RATE, WHICH TAKES CARE OF MOST OF OUR OPERATIONS, IS, UH, 5.6636.
UH, WE ALSO HAVE A CAPITAL RENEWAL AND REPLACEMENT MILLAGE RATE, WHICH TAKES CARE OF THE RENEWAL AND REPLACEMENT OF OUR EXISTING ASSETS.
UH, AND WE ALSO HAVE A PAY MILLAGE RATE, WHICH TAKES CARE OF OUR OTHER EXISTING ASSETS, AND IT PAYS FOR THE FUNDING OF NEW CAPITAL PROJECTS.
AND THEN WE HAVE THE VOTED DEBT SERVICE MILLAGE, WHICH COVERS ALL THE GEO BOND EXPENDITURES, AND THAT STAYS FLAT.
IT'S, IT'S A CALCULATED NUMBER BASED ON OUR DEBT SERVICE PAYMENT AND THE VALUE OF OUR PROPERTIES.
SO IF WE DID HAVE A ROLLBACK MILLAGE RATE, WE WOULD HAVE TO CHANGE ONE OF THE GENERAL MILLAGE RATE NUMBERS.
WE DO NOT WANNA REDUCE OUR CAPITAL OR OUR PAYGO UH, DOLLARS.
THOSE DOLLARS WE ARE TRYING TO FUND, AS WE SAID, UH, PREVIOUSLY, THAT $1.1 BILLION UNFUNDED CIP, WE'RE SENDING OVER JUST ABOUT $8 MILLION NOW FROM THAT LITTLE, THOSE LITTLE MILLAGE RATES.
SO WHAT WOULD WE IMPACT? WE WOULD BE IMPACTING THE OPERATING MILLAGE RATE, AND THAT'S WHAT WE SEE HERE.
WE WOULD PROPOSE IF WE HAD GONE BACK TO A ROLLBACK MILLAGE RATE.
AND JUST TO SPEAK IN LAYMAN'S TERMS, FOR ANYBODY FOLLOWING ALONG WHEN WE TALK ABOUT THIS, IF WE COULD, HOW DO YOU
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APPLY THAT? UH, IS IT ON EVERY A HUNDRED THOUSAND DOLLARS, RIGHT? OR, OR EVERY MILLION DOLLARS? WHAT WOULD THAT TRANSLATE TO? SO, SO, SO THE MATH IS IF YOU HAVE A PROPERTY VALUE OF A HUNDRED THOUSAND, YOU WOULD DIVIDE THAT BY A THOUSAND, AND THEN YOU MULTIPLY IT BY THAT TAX RATE.SO THAT WOULD BE 515, UM, FOR EVERY A HUNDRED THOUSAND DOLLARS OF PROPERTY VALUE.
SO ESSENTIALLY WE'RE LOOKING AT, UH, 500.
THE NEXT SLIDE ACTUALLY TELLS YOU WHAT YOU'RE, OKAY.
YOU'RE PROBABLY ASKING, SO THIS SLIDE SAYS, WHAT WOULD SOMEBODY GET IN SAVINGS IN THEIR BILL IF YOU ACTUALLY, UH, DID DO A RULE BY RATE? SO YOU WOULD HAVE THE AVERAGE PROPERTY OWNER IF THE VALUE AT 7 78 AS OF LAST YEAR, THEY WOULD GET A SAVINGS OF 3 99 FROM LAST YEAR'S THE, THE BILL LAST YEAR.
UM, AND LET'S SEE THE IMPACT OF WHAT WE'D HAVE TO DO, WHAT THE CITY WOULD HAVE TO DO IN ORDER TO GIVE THIS BACK AS A REDUCTION IN THE TAX BILL.
SO THE, THE PROP, THE MILLAGE RATE IMPACTS SEVERAL SOURCES.
SO IT IMPACTS OUR PROPERTY TAX REVENUES, WHICH IS PRIMARILY WHAT WE TALK ABOUT, BUT IT ALSO IMPACTS WHAT WE TRANSFER TO THE CRA AND TO THE RDA AS WELL.
'CAUSE THAT'S JUST A FUNCTION OF OUR MILLAGE RATE.
SO THE BIG HIT WOULD BE ON OUR PROPERTY TAX REVENUES, WE WOULD LOSE $24 MILLION.
IN THE GENERAL FUND, UM, THE CRA WOULD LOSE 130, THE RDA WOULD LOSE 3.12 MILLION FOR A TOTAL OF 27 MILLION THAT WE WOULD HAVE TO CUT FROM THE BUDGET.
SO LAST YEAR WE SPENT A LOT OF TIME TALKING ABOUT WHAT WE'D ADD TO THE BUDGETS.
IF WE HAD GONE BACK TO OUR ROLLBACK RATE, WE WOULD BE LOOKING TO CUTS AND HOW WOULD THAT LOOK LIKE IN THE BUDGET, WHICH IS THE CRUX OF THE CONVERSATION.
SO WE WOULD HAVE HAD TO GONE BACK IN THE BUDGET AFTER WE'VE GOTTEN THE PROPERTY BAGS IN JULY AND LOOK FOR $14.4 MILLION OF CUTS IN OUR OPERATIONS.
THAT INCLUDES, UH, COMMISSIONER MAGAZINE.
YOU WERE ASKING ABOUT THE UNION CONTRACTS.
WE SET ASIDE $7.7 MILLION IN THE 2025 BUDGET TO COVER THE COST OF THE UNION CONTRACTS.
UH, THE MAJORITY OF THOSE DOLLARS WENT TO POLICE AND FIRE.
UH, BUT WE WOULD HAVE TO CUT 14.4.
AND THEN ON TOP OF WHAT WE WOULD HAVE TO CUT ON OUR CURRENT SERVICE LEVEL, WE ALSO WOULD HAVE TO REDUCE ALL THE ENHANCEMENTS.
SO WE APPROVED $9.3 MILLION IN ENHANCEMENTS IN THE 2025 BUDGET JUST FROM THE GENERAL FUND.
AND THEN WE ALSO HAD 700,000 OF MIDYEAR BUDGET CHANGES THAT THE COMMISSION APPROVED THAT HAD AN IMPACT ON THE 2025 BUDGET.
SO THOSE TWO ITEMS WOULD GO, PLUS WE'D HAVE TO GO BACK AND MAKE $14 MILLION OF CUTS, WHICH WOULD OBVIOUSLY HAVE SERVICE IMPACTS.
AND IT WOULD BE HARD TO HAVE SERVICE IMPACT, SERVICE IMPACTS WITHOUT TOUCHING PUBLIC SAFETY BECAUSE THEY MAKE UP 60% OF THE BUDGET, LET ALONE ALL THE UNION CONTRACTS THAT WE GOT APPROVED.
AND THEN THE CRA WOULD LOSE, UH, FUNDING AS WELL.
AND SO WITH THE, UH, THE RDA, UH, THE RDA, THE FUNDING THAT WE PUT THERE, EVENTUALLY THEY WANNA PAY OFF, UM, THE DEBTS ON THE RDA, SO WE COULD SUNSET THE R THE RDA, THAT WOULD JUST LOAD ON THAT RATE.
SO COMMISSIONER MAGAZINE LAST YEAR IN THE BUDGET PROCESS, HE ASKED US TO KIND OF SHOW A FORECAST OF WHERE WE THINK THE BUDGET IS GOING.
AND THIS CHART SHOWS WHERE IT WAS AT THAT TIME, AT THE MILLAGE RATE THAT HAS BEEN APPROVED.
AND WHAT WE SAW IS THAT WE HAVE A PROJECTED SURPLUS ALL THE WAY TO 2029, AND THEN WE ESTIMATE THAT WE'LL HAVE A FUNDING GAP.
AND THIS ESTIMATED THAT THIS YEAR WE WOULD HAVE AN 8% INCREASE IN OUR PROPERTY VALUES.
UH, LAST YEAR WE HAD A 9.4, AND THE YEAR BEFORE WE HAD 10.2, I BELIEVE.
SO WE ESTIMATE AN INCREASE, BUT AT A LOWER RATE.
AND THIS IS WHERE WE SAW WHERE WERE GOING.
AND WE DID FORECAST THAT WE SHOULD BE, YOU KNOW, CONSCIOUS OF THE CHOICES THAT WE'RE MAKING, ADDING TO THE BUDGET BECAUSE WE'RE FORESEE A GAP.
AND THAT'S WITH A, YOU KNOW, REASONABLE ESTIMATE OF WHAT OUR PROPERTY TAX REVENUES WILL BE.
SO WHAT WE DID IS ANOTHER CHART THAT SHOWED IF WE ADOPTED A ROLLED BACK MILLAGE RATE, WHAT THAT BUDGET WOULD LOOK LIKE.
SO WE HAVE THE $24 MILLION GAP THAT WE JUST TALKED ABOUT.
AND IF WE KEPT THAT MILLAGE RATE FLAT, WHICH TECHNICALLY WOULD BE A MILLAGE RATE INCREASE IF YOU KEEP IT FLAT, BECAUSE YOU WOULDN'T GO BACK TO THE ROLLBACK RATE, THAT GAP WOULD JUST KEEP INCREASING OVER TIME, WHICH WOULD PUT US IN A MORE DIRE FINANCIAL SITUATION.
UH, SO JASON MENTIONED, UH, ONE OF THESE, OR MAYBE TWO OF THESE EARLIER TODAY, BUT WE KINDA WANNA FORECAST WHAT'S COMING IN THE BUDGET PROCESS.
AND WE KNOW WE COME BACK TO YOU IN MAY.
UM, BUT WE HAVE AN INCREASE IN UNFUNDED CAPITAL, UH, PROGRAM.
THE ITEM THAT YOU APPROVED US NOW WILL HELP IF WE GET THAT FUNDING, WE'LL HAVE SOME ADDITIONAL FUNDING TO FUND OR UTILITY PROJECTS.
BUT WE ALSO HAVE THIS LONG-TERM FINANCIAL PROJECTION THAT SHOWS THAT WE ARE HEADING TOWARDS, UH, SOME FINANCIAL DIFFICULTIES, UNLESS OUR PROPERTY VALUES COME IN SIGNIFICANTLY HIGHER, OR IF WE CUT A SIGNIFICANT AMOUNT OF OUR EXPENDITURES.
AND THEN JASON MENTIONED THE $7 MILLION HIT ON OUR
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BUDGET, IF WE ARE GONNA HAVE TO PAY THIS, UH, ADDITIONAL COMMISSION OF 2% TO THE MIAMI-DADE TAX TAX COLLECTORS, OF WHICH 6 MILLION WILL HIT THE GENERAL FUND.SO WE'RE WORKING ON THE BUDGET RIGHT NOW.
AND IN THE BUDGET, I HAVE A PLACEHOLDER FOR 6 MILLION.
IF OUR PROPERTY VALUES GO UP, WHICH WE EXPECT THAT 6 MILLION WILL GO UP BECAUSE IT'S A PERCENTAGE OF THE REVENUES THAT WE'RE GONNA COLLECT.
AND THEN LAST BUT NOT LEASE, WE, UH, HAD AMENDMENT FIVE THAT WAS PASSED BY THE REALTORS IN NOVEMBER LAST YEAR, WHICH INCREASES THE HOMESTEAD EXEMPTION ON ALL THE PROPERTY, THE HOMESTEAD PROPERTIES.
SO FOR EXAMPLE, WE HAVE TWO EXEMPTIONS OF 25,000.
SO FOR THE FIRST 25,000 EXEMPTION THAT'S NOW GONNA BE TIED TO CPI, SO EVERY, IT'S GOOD FOR THE HOMEOWNERS, I ACTUALLY VOTED FOR IT.
UM, BUT EVERY YEAR NOW MY EXEMPTION GETS BIGGER, WHICH MEANS LESS PROPERTY TAX REVENUES TO THE CITY.
AND SO THAT'S ANOTHER THING THAT'S GONNA, YOU KNOW, CURTAIL THE VALUES THAT WE WOULD'VE GOTTEN.
I'M JUST PLAYING DEVIL'S ADVOCATE, UH, THERE, TAMIKA WITH THE HOMESTEADED.
UM, I SAW, UH, A PROPERTY TRADED ON NORTH BAY ROAD.
IT WAS BOUGHT IN 1990S OR SOMETHING ALONG THOSE LINES FOR $2 MILLION.
UH, AND PRESUMABLY IT WAS HOMESTEADED AND JUST TRADED FOR A HUNDRED SOME MILLION DOLLARS.
UM, THAT SHOULD BRING IN A PRETTY SUBSTANTIAL INCREASE TO OUR CITY.
OBVIOUSLY NOT ONE PROPERTY WILL MOVE THE NEEDLE, BUT IF WE SEE THAT KIND OF, UH, UH, ESPECIALLY IN SOME OF OUR HIGHER VALUE AREAS, YES.
THE ONLY THING I WOULD JUST ADD TO THAT IS WITH THE CONCEPT OF PORTABILITY, WHERE YOU GET TO MOVE THAT, THAT HOMESTEAD EXEMPTION.
SO IF THE PERSON STAYED WITHIN THE CITY OF MY BEACH, YOU WOULDN'T REALLY GET THAT IMPACT.
'CAUSE HE'S GONNA MOVE THAT DIFFERENTIAL BETWEEN HIS MARKET VALUE.
BUT IF IT'S A NEW PERSON, IF THEY'RE MOVING OUT AND A NEW PERSON FROM NEW YORK OR THE NORTHEAST IS COMING IN, THEN, THEN ABSOLUTELY.
'CAUSE THEN YOU WOULD HAVE THAT JUMP IN TAXABLE VALUE.
SO, YOU KNOW, I KIND OF FRAMED THE, UH, BACK OF THE ENVELOPE JUST TO HAVE THINGS SIMPLISTICALLY.
SO IF WE HAD ABOUT A $14 MILLION SURPLUS LAST YEAR AND WE ESSENTIALLY CHOPPED $7 MILLION OF THAT SIX TO $7 MILLION OF THAT JUST FOR THE DMV OFF THE BOARD.
AND THEN HOW MUCH, UH, INCREMENTAL OF THE NEW UNION CONTRACTS ARE WE LOOKING AT? I THINK THAT'S ABOUT FIVE TO $6 MILLION.
OH, WELL, THIS YEAR WE HAD A PLACEHOLDER OF 7.7.
UM, THE IMPACT THAT IT PROBABLY WILL BE HIGHER NEXT YEAR BECAUSE IN THE FIRST YEAR, USUALLY IT'S, YOU KNOW, NOT INCLUDING PENSION COSTS.
SO FOR ANY POSITIONS THAT WERE ADDED, WE ADDED 15 POSITIONS FOR FIREFIGHTERS.
AND SO NEXT YEAR WE'LL HAVE A PENSION IMPACT.
SO IT'S GONNA BE MORE THAN 7.7 MILLION.
SO COMMISSIONER FERNANDEZ, I LOVE THE INITIATIVE.
I THINK THE STORY THAT WE'RE TELLING HERE IS WE'RE ALL GOING TO HAVE TO BE FINANCIALLY DISCIPLINED JUST TO MAINTAIN OUR CURRENT TAX RATE, RIGHT? IF, IF PROPERTY VALUES DON'T COME TO 8%, UH, INCREASE OF 8%, WE COULD BE NOT LOOKING AT CUTTING TAXES OR EVEN KEEPING TAXES AS IS.
WE COULD BE LOOKING AT VERY, YOU KNOW, TOUGH, UH, TIMES AT THE END OF THE YEAR.
AND IT'S NOT IDIOSYNCRATIC LOSS, RIGHT? THE COUNTY IS GOING THROUGH A SIMILAR EXERCISE.
UM, THEY JUST, UH, LET GO OF SOME RECENT POSITIONS.
UH, SO I THINK THE KEY TAKEAWAY HERE IS THIS IS EYE-OPENING.
WE'RE GONNA HAVE THE DISCUSSION AT OUR CITY COMMISSION AS WELL, BECAUSE I DON'T THINK IT SHOULD JUST BE, UH, CONTAINED WITHIN A FEW MEMBERS OF THE FINANCE COMMITTEE HERE.
UH, THE MESSAGE HAS TO BE CONVEYED LOUD AND CLEAR THAT WE NEED TO BE FINANCIALLY DISCIPLINED, RIGHT? WE HAVE BEEN BLESSED BEYOND ALL MEASURES THAT WE'VE HAD CLOSE TO DOUBLE DIGIT PROPERTY TAX INCREASES OVER THE PAST COUPLE OF YEARS.
AND EVEN WITH THAT, WE ARE FACING A SCENARIO WITHOUT ANY UNEXPECTED SURPRISES THAT THAT $14 MILLION SURPLUS ON JUST TWO LINE ITEMS, RIGHT? THE DMV AND THE UNION CONTRACTS JUST DISAPPEARED.
WELL, AND I THINK YOU'VE, YOU'VE BROUGHT UP SOME, SOME GREAT POINTS.
I BROUGHT THIS UP BECAUSE DURING THE LAST BUDGET PROCESS, WE, WE WEREN'T REALLY INCREASING TAXES.
UM, BUT, BUT YOU KNOW, SOME, SOME PEOPLE WERE, WERE SAYING, WELL, YOU, YOU ARE BECAUSE YOU'RE NOT ADOPTING A ROLLBACK RATE.
AND SO, YOU KNOW, I WANTED TO MAKE SURE THAT THE PUBLIC UNDERSTOOD WHAT ADOPTING A ROLLBACK RATE MEANS.
IT'S, IT'S NOT WITHOUT AN EXPENSE.
WE ARE, WE WOULD BE, WE WOULD BE HAVING FEWER OFFICERS.
WE WOULD BE HAVING LONGER RE RESPONSE TIMES.
WE WOULD BE HAVING REDUCED HOMELESS OUTREACH EFFORTS.
WE WOULD HAVE LESS PARKS MAINTENANCE.
UH, WE WOULD HAVE PARK RANGER REDUCTIONS.
WE WOULD HAVE SLOWER REPAIRS OF OUR STREETS AND, AND SIDEWALKS AND FEWER CLEANING SERVICES AND POSSIBLY REDUCED AFTER SCHOOL PROGRAMS
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THAT WE ALL CHERISH.AND, YOU KNOW, AND IT GOES ON AND ON AND ON.
AND I THINK, SO THE MESSAGE HERE IS THAT, YOU KNOW, WHILE TAX RELIEF, PROPERTY TAX RELIEF IS ALWAYS A CONSIDERATION, AND I THINK SOMETHING THAT WE ALWAYS, AS ELECTED OFFICIALS WOULD LOVE TO BE ABLE TO ACHIEVE, IT MUST BE WEIGHED AGAINST THE TANGIBLE IMPACTS IT DOES HAVE ON PUBLIC SAFETY AND INFRASTRUCTURE AND QUALITY OF LIFE.
UM, SO, YOU KNOW, THIS ANALYSIS PRESENTED TODAY, I THINK OFFERS A CLEAR PICTURE OF WHAT A ROLLBACK RATE WOULD MEAN, UH, FOR, FOR, FOR OUR CITY.
AND, UH, AND I THINK, YOU KNOW, WHEN YOU SEE THAT, FOR ME, THE REAL TAKEAWAY IS HOW DO WE GENERATE NEW REVENUES FOR THE CITY? AND I DO THINK WE DO HAVE OPPORTUNITIES TO GENERATE NEW REVENUES.
UM, I'LL TELL YOU FOR EXAMPLE, AND THIS IS REALLY OUT THERE, UM, REALLY OUT THERE.
IT'S ALMOST DANGEROUSLY OUT THERE.
AND I DON'T EVEN KNOW IF IT'S I, I'LL PROBABLY GET SLAMMED ONLINE LATER FOR
AND I SEE TANYA SHAKING HER HEAD, AND IT REALLY IS INSANE THAT WE LIVE IN THIS ENVIRONMENT.
UM, AND WHAT THAT TRANSLATES IN TERMS OF TAXES.
BUT HOW DO WE ACTUALLY, YOU KNOW, YOU HAVE AREAS OF OUR CITY WHERE YOU HAVE VERY VALUABLE REAL ESTATE, UM, LIKE SUNSET ONE AND TWO, AND SUNSETS THREE AND FOUR, UM, YOU KNOW, THEY'RE ALMOST LIKE PRIVATE ISLANDS, BUT THEY'RE NOT PRIVATE ISLANDS.
ALRIGHT? AND YOU DON'T GO INTO SUNSET ONE AND TWO OR SUNSET THREE AND FOUR UNLESS YOU HAVE TO, YOU DON'T CUT THROUGH THROUGH THOSE ISLANDS TO GO TO PUBLIX.
YOU DON'T CUT THROUGH THOSE ISLANDS TO TAKE YOUR KIDS TO SCHOOL OR TO GO TO THE PARK.
NOW IMAGINE IF WE MADE THOSE ISLANDS, PRIVATE ISLANDS, THE WAY THE LAGO IS A PRIVATE ISLAND, I'M SURE, I'M SURE IF YOU GET A WATERFRONT PARCEL, YOU EVALUATE THE VALUE PER SQUARE FOOT OF A WATERFRONT PARCEL IN LAGOS, WHERE YOU HAVE A PRIVATE ISLAND AND YOU COMPARE IT TO SUNSETS ONE AND TWO, I'M SURE PER SQUARE FOOT, IT'S MUCH MORE VALUABLE IN LAGO BECAUSE IT'S A PRIVATE ISLAND.
IS ANYONE'S QUALITY OF LIFE AFFECTED BY THE FACT THAT LAGOS IS A PRIVATE ISLAND? NO, BECAUSE NO ONE CUTS THROUGH THERE.
IT, IT'S NOT, IT'S NOT FEASIBLE TO CUT THROUGH THERE.
AND I THINK IT'S THE TYPE OF THING WE SHOULD BE DOING.
WE SHOULD BE LOOKING AT HOW DO WE MAKE OUR REAL ESTATE GENERATE MORE MONEY? ULTIMATELY, IT'S NOT FOR US.
IT'S FOR THE PUBLIC ULTIMATELY TO SUPPORT OUR POLICE SERVICES AND OUR CLEANING SERVICES AND OUR PARKS SERVICES AND EVERYTHING THAT THAT, THAT OUR CITY IS LOOKING FOR.
AND I THINK WE HAVE THAT OPPORTUNITY.
HOW DO WE LOOK AT AREAS LIKE SUNSET ONE AND TWO AND CONSIDER MAYBE, YOU KNOW, IF WE, IF WE PRIVATIZE THOSE ISLANDS, HOW DOES, WHAT DOES THAT TRANSLATE FOR ALL THE OTHER RESIDENTS IN ADDED BENEFITS AND, UH, FOR THEM AND TO THEIR PROPERTY TAXES? HOW DO WE LOOK AT LIKE, PALMEN HIBISCUS? NO ONE HAS TO CUT THROUGH AREAS LIKE PALM AND HIBISCUS, UM, TO GET TO SCHOOL OR TO GET TO THE PARK, OR TO GET TO PUBLIX.
YOU KNOW, WE LOOK AT THOSE AREAS AND IF WE WERE TO DO THAT, WHAT WOULD THAT GENERATE? AND I WOULD LOVE FOR, FOR OUR CFO AND OUR BUDGET TEAM TO LOOK INTO THIS, UM, BECAUSE I THINK IT'S A WAY THAT WE CAN LOOK AT ADDRESSING SOME OF THESE ISSUES THAT WE HAVE WITHOUT REALLY IMPACTING ANYONE'S QUALITY OF LIFE.
I DON'T KNOW WHAT YOU GUYS THINK ABOUT THAT, BECAUSE I'M NOT A MEMBER OF THE COMMITTEE.
I'M JUST NO, I, I APPRECIATE IT OPENING UP THE CANS OF WORMS. YEAH.
I, I THINK
UM, GUESSING WHAT YOU CURRENTLY HAVE, I, I WOULD LIKE TO UNDERSTAND WHAT IT MEANS IN IMPACT, UM, TO THE RESIDENTS OF AN ISLAND THAT GETS PRIVATIZED TO NEIGHBORS WHO LIVE ADJACENT TO THE ISLAND WHO ARE NOT PRIVATIZED, AND HOW THAT WOULD TRANSLATE INTO THEIR DAILY LIFE.
AND ALSO WHAT THE FINANCIAL BENEFITS COULD BE.
'CAUSE I DON'T KNOW MUCH ABOUT, I'VE YET TO PRIVATIZE AN ISLAND IN MY LIFE, SO I DUNNO MUCH ABOUT IT.
HEY, THERE'S A LOT OF, I TOLD YOU I WAS OPENING, I CAN'T FORUM.
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IDEAS.UH, ONE I'VE ALWAYS KIND OF KICKED AROUND ABOUT HOW WE COULD RAISE MONEY IF WE'RE GOING TO HAVE, YOU KNOW, WE'RE, WE'RE IN A, PERHAPS ONCE IN A GENERATION REAL ESTATE CYCLE, RIGHT? AND WHO'S BENEFITING FROM THAT? A LOT OF VERY WEALTHY REAL ESTATE DEVELOPERS.
UH, BUT IF WE HAVE SOMETHING LIKE A WATERFRONT, UM, PROJECT THAT'S HAPPENING ON 17TH STREET, RIGHT? AND THESE DEVELOPERS, THEY'RE SELLING FOR $4,000 PER SQUARE FOOT.
YES, THE CITY IS BENEFITING THROUGH A SIGNIFICANT AMOUNT OF PROPERTY TAX INCREASES.
BUT LET'S SAY THAT DEVELOPER HEIGHT IS 150 FEET, RIGHT? THAT THEY'RE ALLOWED TO BUILD UP TO, UH, LET'S USE THE RALEIGH FOR EXAMPLE, RIGHT? IF THEY HAVE A 10,000 FOOT, UH, FLOOR PLATE, AND I'M JUST DOING BACK OF THE ENVELOPE MATH HERE.
LET'S SAY THEIR COST OF CONSTRUCTION, UH, IN LAND ACQUISITIONS, $2,000 PER FOOT, AND THEY'RE SELLING AT $4,000 PER FOOT.
THEY HAVE A 10,000 SQUARE FOOT FLOOR PLATE.
IF WE WOULD ESSENTIALLY SAY YOU COULD GO AND BUILD AN EXTRA, UH, 10 TO 12 FEET THERE, ONE SINGLE EXTRA FLOOR THAT COULD BRING IN $10 MILLION TO THE CITY, I DON'T KNOW, IS, IS THAT WORTH IT? PERHAPS ON A, A ONE OFF BASIS.
YOU KNOW, WE LOOK AT THAT, UM, ON A PROJECT BY PROJECT BASIS.
I'M NOT SAYING WE MOVE FORWARD WITH THAT, BUT THOSE ARE THE TYPES OF IDEAS THAT WE COULD ESSENTIALLY, UH, LOOK TO BE CREATIVE WITH.
UM, BUT NO MATTER HOW MUCH REVENUE YOU RAISE, WHETHER IT'S OUR GOVERNMENT, THE COUNTY, OR THE FEDERAL GOVERNMENT, UH, RULE NUMBER ONE IS WE ALWAYS HAVE TO MAINTAIN FINANCIAL DISCIPLINE BECAUSE YOU CAN ONLY, YOU KNOW, THE, THE AREAS WHERE YOU CAN RAISE MONEY ARE ALWAYS GOING TO BE FINITE, STARTS AT FISCAL DISCIPLINE AT HOME.
UH, CHAIR, IF I CAN, JUST A COUPLE ITEMS JUST, YOU KNOW, BACK TO TAMIKA'S PRESENTATION.
AND THE ITEM ON THE ROLLBACK IS JUST A COUPLE OF REMINDERS TO, YOU KNOW, TO THE RESIDENCE IS THAT IF YOU'RE A HOMESTEAD, HOMESTEADED, UH, PROPERTY, EVEN IF YOU KEEP, UH, YOU KNOW, AS COMMISSIONER FERNANDEZ MENTIONED, YOU KNOW, WE, WE HAVEN'T INCREASED TAXES, IT'S THE SAME TAX RATE AS LAST YEAR.
YOU WOULD SEE AN INCREASE IF YOUR TAXABLE VALUE WENT UP, BUT IF YOU'RE HOMESTEADED, YOU'RE CAPPED AT 3%.
SO IN THAT SENSE, IT'S, YOU KNOW, IT'S, IT'S BASICALLY KEEPING UP WITH INFLATION, WHICH HAS REALLY BEEN THE LONG TERM.
THERE WILL BE, UH, MY SECOND POINT IS THAT IN, AT THE MAY BUDGET RETREAT, THAT WILL BE THE BIGGEST PART OF THAT, WHERE WE WILL BE PRESENTING THE CURRENT SERVICE LEVEL BUDGET AND TO LET YOU KNOW WHAT THE PROJECTED DEFICIT WOULD BE, UH, GOING FORWARD AND WHAT THE GEO, THE JUNE 1ST ESTIMATE, UM, PRELIMINARY TAX, UH, NUMBERS WOULD'VE TO COME IN TO MAKE THAT.
SO THAT THERE'LL BE A WHOLE WORKSHOP SPECIFICALLY WHERE WE'RE GONNA GET IN DEEP, YOU KNOW, ON THESE KIND OF CONCEPTS.
AND, AND THIRD, UH, JUST, YOU KNOW, THE BROKEN RECORD THAT I KNOW, YOU KNOW, THAT I AM IS WHENEVER THERE'S A DISCUSSION ABOUT EXPENDITURES AND, AND ALL THE WONDERFUL PROGRAMS AND THINGS THAT WE WANNA DO, ADMINISTRATIONS, YOU KNOW, IS STEADFAST.
THAT'S RECOMMENDATION THAT ALL OF THESE THINGS SHOULD ALWAYS BE PRESENTED DURING THE 20, YOU KNOW, 26, 27, YOU KNOW, BUDGET PROCESS FOR CONSIDERATION TO SEE HOW MUCH MONEY WE HAVE IN OUR WALLET TO PAY FOR THEM.
SO I JUST WANTED TO MENTION THAT TO CLOSE THIS OUT.
OKAY, COMMISSIONER, WE HAVE PUBLIC COMMENT.
LARRY SCHAEFFER, PLEASE UNMUTE YOURSELF.
HELLO, I, UH, HAVE A FEW COMMENTS.
WE HAVE A NEW PROPERTY APPRAISER NAMED TOMAS RETO, AND HE WANTS TO REDUCE PROPERTY VALUES BASED ON CLIMATE CHANGE.
SO FOR EXAMPLE, IF YOUR HOME IS IN A FLOOD ZONE AND YOU HAVE EXPENSIVE FLOOD INSURANCE, HE'S GOING TO LOOK TO LOWER YOUR PROPERTY VALUE BECAUSE YOU HAVE TO PAY MORE FOR FLOOD INSURANCE.
UM, THIS IS THE KIND OF GUY THAT MIGHT ALSO LOWER YOUR PROPERTY VALUE IF YOU ARE, IF YOU LIVE NEAR POLLUTED WATERS, LIKE ON PARKVIEW ISLAND OR RIGHT NOW, NOW WE HAVE TO BRING UP WATER AGAIN.
UH, IF YOU CAN'T SWIM IN THE OCEAN, YOU DON'T REALLY, THE VALUE OF YOUR OCEANFRONT PROPERTY IS LESS.
SO I WOULDN'T COUNT ON THE PROPERTY VALUES YOU'RE GETTING NOW AFTER THIS NEW POLITICIAN PROPERTY APPRAISER HAS HIS WAY.
AND THERE'S PLENTY OF ARTICLES IN WLRN DOCUMENTING HIS STRATEGY.
AND I THINK EVERYONE NEEDS TO READ THOSE TO SEE WHAT'S COMING DOWN THE LINE.
UH, ALSO, I PREDICT A DECLINE IN CONDO PROPERTY VALUES THIS YEAR DUE TO THE 2020, YOU KNOW, THE DEADLINE FOR MEETING THE NEW RESERVE REQUIREMENTS.
SO DON'T ASSUME THAT YOU'RE GONNA HAVE THE LUXURY OF THESE HIGH VALUES.
REAL ESTATE IS CYCLICAL AND IT DOES GO DOWN AND, YOU KNOW, PEOPLE NEVER WANT TO THINK ABOUT THAT, BUT THAT COULD BE.
NOW, UM, REGARDING COSTS AND LOWERING COSTS, I DON'T THINK IT'S A BAD IDEA TO TAKE A LOOK AT STARTING YOUR OWN LOCAL DEPARTMENT OF GOVERNMENT EFFICIENCY.
NOW, PLEASE SEPARATE TRUMP AND ELON MUSK FROM THAT.
BUT JUST CONSIDER THE IDEA THAT THIS ORGANIZATION IS TOO BIG AND THAT THERE ARE INEFFICIENCIES AND THAT THERE ARE WASTE WITHIN DIFFERENT DEPARTMENTS.
AND THAT MAYBE YOU COULD REALLY BE A LEADER IN TRYING TO TAKE A LOOK THROUGH THIS ORGANIZATION AND SEE WHERE COSTS CAN BE CUT.
AND FINALLY, I KNOW THIS ISN'T GONNA BE RECEIVED WELL AT ALL BY SOME PEOPLE, BUT THE STATE OF UTAH HAS BANNED,
[01:35:01]
UH, GOVERNMENT UNIONS, UH, EXCEPT FOR POLICE AND FIRE.YEAH, THE VICE MAYOR, OR I WOULD JUST SAY I, YOU KNOW, I AM ALL IN FAVOR OF BEING A BETTER, MORE EFFICIENT, MORE CONSISTENT AND MORE FLEXIBLE GOVERNMENT.
AND I VALUE OUTSIDE OF THE BOX THINKING ON HOW TO GET THERE.
I DON'T THINK WE WANT TO START, UM, MAKING THIS A NON-UNION CITY.
I DON'T THINK WE WANNA START, UM, TAKING GUIDANCE FROM MODELS THAT ARE DRAMATICALLY UNPROVEN.
UM, AND I, I THINK THIS IS A, A DANGEROUS DIRECTION IN WHICH TO GO.
I WANT TO DO THE RIGHT THING FOR OUR CITIZENS AND OUR RESIDENTS AND OUR BUSINESSES AND OUR VISITORS.
WE ARE A CITY THAT WE HEAR CONSISTENTLY FROM ALL OF THOSE POPULATIONS THAT THEY WANT A LOT FROM US.
AND WE HAVE A LOT OF CHALLENGES THAT A RANDOM CITY IN UTAH DOESN'T HAVE, OR DIFFERENT PARTS OF THE COUNTY DON'T HAVE.
AND WE NEED TO EITHER ACCEPT THAT'S WHAT WE ARE AND FIGURE OUT A WAY TO CONSISTENTLY MANAGE THAT AND KEEP DELIVERING OR DECIDE WE ARE GOING TO STEP AWAY FROM THAT AND NOT PROVIDE COUNTLESS FREE SERVICES, UM, THAT IMPROVE PEOPLE'S WELLBEING, BOTH FROM PARKS AND REC AND ARTS AND CULTURE, BUT ALSO THE SERVICES WE OFFER FREE TAX PAYER SERVICES OR TAX FILING SERVICES AND GUIDANCE ON HOW TO NAVIGATE VARIOUS GOVERNMENT DEPARTMENTS IF YOU NEED HELP.
AND WE DO ALL SORTS OF THINGS WITH THIS BUDGET.
AND THE VAST MAJORITY OF IT GOES TO PUBLIC SAFETY BETWEEN OUR FIRE AND OUR POLICE, WHICH I WOULD BE VERY HARD PRESSED TO BELIEVE THAT OUR, OUR RESIDENTS WANT FEWER FIRE POLICE OR CODE OFFICERS, UM, OR PUBLIC SAFETY WORKERS OR SANITATION WORKERS.
BECAUSE THOSE ARE THE AREAS WHERE WE HEAR THE MOST COMPLAINTS OF INSUFFICIENT SERVICE.
SO WE CAN STRIP OURSELVES BACK AND SAVE A LOT OF MONEY AND GO BACK TO THE BARE BONES, BUT THEN WE ARE NOT WHAT WE HAVE COMMITTED TO BEING.
AND THAT IS A REAL INFLECTION POINT.
AND I, FOR ONE, AM NOT PREPARED TO LEAD THIS CITY, WHICH IS SO MANY THINGS TO SO MANY PEOPLE INTO, UM, LIBERTARIAN AT BEST, THAT'S BEING GENEROUS.
UM, STRIPPED DOWN, FEND FOR YOURSELF COMMUNITY.
AND I DON'T BELIEVE THAT'S WHO WE WILL EVER BE.
SO WE'LL SHOW THE ITEM, UH, ITEM PRESENTED WAS A DISCUSSION ITEM.
UH, SO WE CAN CALL THE NEXT ITEM, WELL, JUST TO ADD COMMISSIONER MAGAZINE.
THE COMMERCIAL PROPERTIES OF THE LAST, UH, SET OF VALUES WE GOT WERE 18% IS, I'M SORRY, 18%.
WHAT'S THAT? 18% IS COMMERCIAL PROPERTY SPLIT BETWEEN, UH, PROPERTY TAXES.
18% ARE DERIVED FROM COMMERCIAL VERSUS, UH, THE REMAINDER FROM RESIDENTIAL.
SO THIS MIGHT BE A DUMB QUESTION, 18% OF VALUE OR 18% BASED ON NUMBER OF UNITS, OR 18% OF THE VALUE OF WHAT'S LEVIED.
SO OF THE TOTAL LEVY OF 3 32, THEY WOULD BE LIKE 59 MILLION.
AND AND DO THEY HAVE THE EQUIVALENT OF COMMERCIAL PROPERTY, UH, COMMERCIAL PROPERTY EQUIVALENT OF HOMESTEAD? NO, NO, NO, NO.
IT MEANT IT'S A PROTECT RESIDENCE.
YEAH, NO, I, I KNOW THAT, BUT IS THERE ANYTHING? NO.
YOU KNOW, SO THE FOUN, SO THE FOUNTAIN BLUES, YOU KNOW, UH, COSTS GO UP EVERY SINGLE YEAR WITH NO, THEY WOULD, THEIR, MY UNDERSTANDING IS THEIR, THEIR TAXABLE RATE IS AT MARKET, IS AT, UM, MARKET RATE.
AND ONE OTHER THING, IF I MAY, UM, THROUGH THE CHAIR, A A, UH, BUSINESS OWNER CAN ALWAYS CHALLENGE THE PROPERTY TAXES IN YEARS WHERE THEIR REVENUES HAVE DECREASED.
SO THERE MAY BE YEARS WHERE PROPERTY TAX FOR COMMERCIAL, UH, PROPERTY WILL ACTUALLY GO DOWN.
RIGHT? AND THAT'S THE VALUE ADJUSTMENT BOARD, WHICH IS A VERY COMMON, UH, PRACTICE, ESPECIALLY IN THE COMMERCIAL AREA.
RIGHT? SO ESSENTIALLY IF THEY'RE, IF THEY ARE A, UH, COMMERCIAL HOSPITALITY ESTABLISHMENT AND THEIR REVENUES GO DOWN AND THEY ESSENTIALLY SAY THEIR APPRAISED VALUES BASED ON THEIR CASH FLOWS, THAT'S A GOOD POINT.
SO WITH A VAP, WITH A VALUE ADJUSTMENT BOARD.
SO WHEN PEOPLE APPEAL THEIR, THEIR TAXABLE VALUE, ARE WE OBSERVING THOSE APPEALS IS, I MEAN, I THINK ANYONE, ANYONE, ANYONE THAT'S ABLE TO HIRE AN ATTORNEY WILL BE ABLE TO FIND AN ARGUMENT IN WHICH TO APPEAL.
YOU KNOW, LIKE, YOU KNOW, WE HAD A CALLER AND SAY, WELL, YOU KNOW, THE WATER QUALITY AROUND MY ISLAND,
[01:40:01]
YEAH, I LIVE WATERFRONT, BUT THE WATER QUALITY IS, IT'S, IS NOT GOOD.SO MY VALUE SHOULD BE, SHOULD BE LESS.
UM, YOU KNOW, OR I DON'T EVEN WANT TO COME UP WITH, I DON'T WANT TO GIVE PEOPLE IDEAS OF OTHER THINGS THAT I, THAT ARE CROSSING MY MIND OF OTHER THINGS THEY COULD USE TO APPEAL.
BUT DO WE OBSERVE, DO WE TRACK THESE APPEALS? DO WE DO, DO WE HAVE, UM, STANDING IN THESE APPEALS BECAUSE WE'RE, WE ARE AN AFFECTED TAXING DISTRICT? UM, SO JUST WONDERING, JUST WONDERING, WHAT STANDING DO WE HAVE MR. ATTORNEY AS IT RELATES TO THESE APPEALS? UM, I THINK ANYBODY COULD OBSERVE THE APPEALS.
I DON'T KNOW THAT YOU NOT OBSERVE THAT'S DONE IN PUBLIC.
THE VALUE ADJUSTMENT BOARD IS A PUBLIC HEARING, BUT STANDING YEAH, WE, I WOULD NEED TO LOOK INTO THAT.
UM, I SUPPOSE BECAUSE WE ARE A DIRECT, DIRECT BENEFICIARY OF THE TAX, BUT JASON IS SHAKING HIS HEAD, SO HE, YEAH.
AND, AND DEFINITELY NOT AN ATTORNEY.
UH, BUT I, I DON'T BELIEVE THAT THERE'S A, A ROLE FOR THAT IN WORKING IN OTHER MUNICIPALITIES.
UM, NO, THERE'S NEVER BEEN REALLY A, A NEED TO OBSERVE.
'CAUSE THAT'S BETWEEN THE PRO, WHOEVER OWNS THAT PROPERTY, LET'S SAY MY HOUSE BETWEEN ME AND THE VALUE ADJUSTMENT BOARD AND, AND THE APPRAISER.
BUT YOU'RE TALKING ABOUT, OKAY, THE, THE TYPICAL SITUATION IS COMMERCIAL PROPERTIES THAT APPEAL.
WELL, IT COULD BE, UH, ANY PROPERTY, I MEAN, WHETHER IT'S A COMMERCIAL OR RESIDENTIAL, EVERYONE, EVERYONE LEGALLY HAS THE ABILITY TO, OF COURSE, THE, BUT THE ISSUE APPEAL, THEIR VALUE ISSUE, GENERALLY SPEAKING, THE, THE APPEALS ARE MOSTLY COMMERCIAL BECAUSE THEY'RE TIED TO CASH FLOW.
SO A COMMERCIAL PROPERTY APPEALS, THEY'RE MAKING, YOU KNOW, THEY MIGHT MAKE SOME CRAZY CLAIM, LET'S SAY, TO LOWER THE AMOUNT OF TAXES THEY HAVE TO PAY.
WE DON'T HAVE THE ABILITY TO GO IN THERE AND CHALLENGE THAT.
LET, LET ME LOOK INTO THAT AND, AND FIND OUT, PLEASE GET BACK TO THIS BECAUSE I THINK THAT'S VERY IMPORTANT.
I REMEMBER ONE YEAR I ACTUALLY WENT IN AND I DID AN ANALYSIS OF, THIS WAS PROBABLY LIKE THREE YEARS AGO, AND I ALMOST CONTACTED OUR, OUR INSPECTOR GENERAL WHO'S SITTING IN THE, IN THE AUDIENCE ABOUT IT.
BECAUSE IT WAS JUST FASCINATING HOW IN ONE AREA OF, OF THE CITY WHERE IT WAS, YOU KNOW, CONSISTENT, YOU KNOW, THE LAND, IT WAS KIND OF LIKE THE SAME LANDLORD IN THIS AREA.
YOU JUST SAW CONSISTENCY THAT ALL THOSE PROPERTIES HAD EVERY YEAR THE SAME AMOUNT OF REDUCTION TO THEIR VALUE AND WAS VERY DIFFERENT THAN IN OTHER CORRIDORS.
LIKE I ACTUALLY HAD ONE CORRIDOR, LIKE I WENT DOWN WASHINGTON AVENUE, COLLINS AVENUE, I WENT DOWN LINCOLN ROAD AND SAW WHAT WERE THE PROPERTY VALUES, THE, THE ASSESSED VALUES, AND THEN WHAT WERE THE APPEALS AND WHAT THEY WERE GRANTED IN TERMS OF THE, OF, OF THE REDUCTION.
AND IT WAS INSANE TO ME HOW IN ONE CORRIDOR IT WAS LIKE THIS, JUST, THIS PROPERTY OWNER WAS ABLE TO GET OTHER PROPERTIES REDUCED BY A CERTAIN PERCENTAGE, UNLIKE ANY OTHER CORRIDOR.
AND IT JUST MADE ME WONDER AT THE TIME, WELL, DO WE HAVE A SAY IN THIS? CAN WE FIGHT THIS IN A, IN ANY WAY? CAN WE MAKE SURE THAT THE STATEMENT'S BEING MADE ABOUT THE CITY THAT COULD BE INFLUENCING THIS DECISION IS ACCURATE? BECAUSE IT AFFECTS OUR, UH, OUR BOTTOM LINE AT THE, AT THE END OF THE DAY.
SO, MR. ATTORNEY, IF YOU COULD GET BACK TO US WITH INFORMATION ON THAT, I THINK IT WOULD BE VERY HELPFUL.
KNOW, I, I, I FEAR THAT, UM, I DON'T THINK IT IS AT THIS MOMENT, BUT I FEAR THAT THIS CONVERSATION COULD GO SLIDE VERY EASILY INTO DANGEROUS TERRITORY.
AND, UM, YOU KNOW, WHEN YOU LOOK AT YOUR TAX BILL AND YOU'RE LIKE, I'VE GOT MONEY GOING TO THE SCHOOLS, MY KIDS ARE OUTTA SCHOOL, I DON'T FEEL LIKE I NEED TO PAY TAXES TO GO TO THE SCHOOL, OR, I'VE NEVER HAD A FIRE.
I DON'T WANT MY TAX DOLLARS GOING TO THE FIRE DEPARTMENT.
I, YOU KNOW, I'M ALL FOR EFFICIENCY.
I'M ALL FOR DEPARTMENTS SPEAKING TO EACH OTHER TO MAXIMIZE, UM, SYNERGIES WHERE THERE ARE, WE'VE, I THINK THE CITY HAS COME A LONG WAY SINCE I FIRST STARTED BEING INVOLVED IN INTERDEPARTMENTAL COLLABORATION AND, AND SHARING OF INFORMATION.
THERE'S ALWAYS ROOM FOR IMPROVEMENT.
I THINK PROCUREMENT PROCESSES CAN ALWAYS BE EVALUATED.
I THINK THERE'S A LOT OF ROOM FOR IMPROVEMENT, BUT TO START QUESTIONING AND, UH, COMMISSIONER FERNANDEZ, I'M NOT SUGGESTING THIS IS QUESTIONING THE FUNDAMENTAL, WHAT YOU JUST SUGGESTED WAS QUESTIONING, BUT I, WHAT I FEAR IS THAT OTHER PEOPLE ARE GONNA TAKE WHAT IS A VERY LEGITIMATE INQUIRY AND EXTRAPOLATE IT TO THE FURTHEST POSSIBLE OUTCOME WHERE PEOPLE, WE SEE IT FOR YEARS SELECTING THE FACTS THEY CHOOSE TO ADHERE TO OR RECOGNIZE.
BUT WHAT I'M SAYING IS, I, I, I FEAR THAT THESE CONVERSATIONS ABOUT, UM, WHAT IS THE ROLE OF GOVERNMENT, WHAT WE PROVIDE, WHAT WE DO,
[01:45:01]
WHAT WE WILL DO IN THE FUTURE COULD GET AWAY FROM US.I THINK HERE WE'RE HAVING AN, A VERY ROBUST CONVERSATION.
WHAT I DON'T WANNA HAVE HAPPEN IS FOR FOLKS TO TAKE THE KERNEL OF AN IDEA AND THEN RUN WITH IT AND START SAYING, YOU KNOW, I, I HAVE NEVER GONE TO THE NEW WORLD SYMPHONY WALL CAST, THEREFORE I DON'T WANT A SINGLE PENNY OF MY DOLLARS GOING TO SUPPORT THEIR, THEIR EFFORTS.
SO, BUT, BUT, BUT WHAT I'M SAYING, AND, AND THROUGH THE CHAIR IS LIKE, FOR EXAMPLE, WE HAVE COMMERCIAL LANDLORDS THAT KEEP THEIR PROPERTIES VACANT.
WE KNOW THAT THERE'S BEEN PRECEDENT IN THE PAST WHERE, WHERE, WHERE PROPERTY OWNERS CAN GO TO THE VALUE ADJUSTMENT BOARD AND SAY, WELL, I'M NOT ABLE TO RENT OUT MY PROPERTY, SO GIVE ME A DISCOUNT ON MY, ON MY, ON MY VALUE, ON MY, ON MY TAXABLE VALUE.
AND WELL, ARE THEY CHOOSING TO KEEP THEIR, THEIR, THEIR PROPERTY VACANT? HAVE THEY HAD OPPORTUNITIES TO RENT THEIR PROPERTY? IS KEEPING THEIR PROPERTY VACANT AFFECTING THE, THE GENERAL ECONOMY OF THE, OF, OF THE SURROUNDING AREA? AND IF SO, YOU KNOW, YOU KNOW, WE NEED TO BE AWARE OF THAT BECAUSE NOW NOT ONLY IS THAT VACANT PROPERTY, PROPERTY AFFECTING THE ECONOMY OF THE SURROUNDING AREA, BUT NOW ALSO THAT VACANT PROPERTY IS GOING AND TAKING MONEY AWAY FROM THE TAXPAYERS, UH, WHERE, WHERE OTHER PROPERTY OWNERS WHO ARE RESPONSIBLE AND CONTRIBUTING PROPERTY OWNERS ARE ACTUALLY THEN HAVING TO PAY A HIGHER RATE.
I MEAN, SO WE REALLY NEED TO BE, WE, MR. ATTORNEY.
I PLEASE, WE NEED TO BE ON TOP OF THIS.
I MEAN, WE SEE IT IN, UM, IN NORTH BEACH WHERE LITERALLY PROPERTY OWNERS, COMMERCIAL PROPERTY OWNERS ARE LITERALLY SAYING, I'M GONNA HOLD ONTO IT UNTIL I GET, YOU KNOW, UNTIL THE ZONING LAWS CHANGE AND I CAN BUILD HIGHER AND DENSER ON IT.
AND, AND THAT IS VERY BAD FOR THE CITY.
SO, UM, AGAIN, I IT'S NOT THIS ISSUE, YOUR SUGGESTION IN PARTICULAR, IT'S THAT MY FEAR IS THAT FOLKS OUT IN THE ETHER ARE GONNA BE, YOU KNOW, TWISTING THE INTENT OF THE DIALOGUE TO DO DAMAGING THINGS.
SO I, I THINK, ALRIGHT, THAT'S, I THINK THE END OF THE ROLLBACK ITEM.
UM, IT'S AN IMPORTANT ONE, RIGHT? BECAUSE I DON'T WANT TO ABSOLUTELY, IT DOES NONE OF US, ANY JUSTICE OR OUR RESIDENTS, ANY JUSTICE TO PAINT AN OVERLY ROSY PICTURE.
UH, I DON'T MEAN TO SOUND AN ALARM, BUT WE ARE COMPARED TO WHERE WE WERE IN THE PAST, GOING TO BE GOING INTO A CHALLENGING BUDGET YEAR, RIGHT? JUST BY TWO LINE ITEMS THAT ESSENTIALLY ELIMINATES OUR ENTIRE BUDGET SURPLUS THAT WE EXPERIENCED LAST YEAR.
I, I'M, I'M GOING TO TRY AND TRY AND LEAD BY EXAMPLE ON SOMETHING.
UM, AND LISTEN, THE ONLY WAY TO START MAKING BIG CHANGES IS BY SMALL ONES.
UH, I'M GOING TO HEAR NB 16, UH, AID HOUSING ALLOWANCE AND YEP.
I'LL TEE THIS UP IF I, WHERE I WAS ESSENTIALLY GOING, IF I CAN CALL THE ADMIN, SORRY.
[NB 16. DISCUSS PROPOSED RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING A STIPEND IN THE AMOUNT OF $500 PER MONTH FOR EACH CITY COMMISSIONER AIDE TO ENABLE THESE CRITICAL MEMBERS OF THE STAFF TO FIND SUITABLE HOUSING IN THE CITY OF MIAMI BEACH.]
ONE OF THE THINGS THAT WE'RE GONNA CUT OUT.YEAH, LISTEN, OUR, WE GET THE CREDIT AND A LOT OF TIMES MORE OFTEN THAN THE CREDIT, THE, UH, UH, THE SCORN.
UM, BUT OUR AIDES ARE THE ONES THAT REALLY PUT IN THE FULL-TIME EFFORT THE WORK.
THEY, THEY ARE OFTENTIMES THE HEROES, UH, IN THIS OPERATION GOING FORWARD.
AND IT'S BEEN, UM, A HUGE INITIATIVE OF MINE.
I CAN REMEMBER SITTING THERE AS A PRIVATE CITIZEN COMMISSIONER FERNANDEZ HEARING, UH, YOU TALK ABOUT WAYS TO IN SANITIZE EMPLOYEES TO LIVE IN OUR CITY WHEN WE HAD A, AN AWFUL TRAFFIC ACCIDENT LAST EVENING ON THE MACARTHUR AND, UH, QUICK PUBLIC SERVICE ANNOUNCEMENT.
PLEASE DO NOT DRINK AND DRIVE.
IT'S THE EASIEST THING TO AVOID.
IT'S THE MOST SELFISH THING ANYBODY COULD EVER DO, AND IT HAS REAL LIFE CONSEQUENCES.
UH, BUT THAT BEING SAID, IT'S SNARLED TRAFFIC HAD A NUMBER OF PEOPLE THAT LIVE OUTSIDE OF THE CITY, UH, THAT WEREN'T ABLE TO GET HERE OR GOT HERE LATE.
UH, BUT POINT BEING, YOU KNOW, UH, YOU PROVIDE INCENTIVES FOR PEOPLE TO LIVE HERE.
AND OUR AIDES, UH, WORK A VERY, UH, TER SKEL SCHEDULE.
IT'S EARLY MORNINGS, IT'S LATE EVENINGS, IT'S WEEKENDS.
UH, SO MY ORIGINAL THOUGHT WAS TO PROVIDE 500, UH, DOLLARS PER MONTH TO IN SANITIZE THEM TO ESSENTIALLY LIVE IN OUR CITY.
UH, PART OF IT IS SELF-SERVING SO THEY CAN SPEND MORE TIME HERE AND THEY, UH, ARE EVEN MORE ON BECK AND CALL.
UM, THAT BEING SAID, YOU KNOW, WE JUST GOT DONE FOR THE LAST TWO HOURS HIGHLIGHTING HOW INCREDIBLY PINCHED OUR BUDGET IS.
[01:50:01]
I WAS GOING TO GO FORWARD AND, UH, ASK FOR A NEW BUDGET ITEM, I'D LIKE TO MAYBE POSSIBLY SLIGHTLY AMEND THIS AND SEE HOW MY COLLEAGUES FEEL ABOUT THIS.UH, SEVERAL MONTHS AGO, UM, IT WAS APPROVED WHERE EACH COMMISSIONER GOT, UH, I BELIEVE THE TOTAL AMOUNT WAS $15,000 FOR LIKE MISCELLANEOUS EXPENSES FOR, UM, UH, CONFERENCES, EVENTS, AND TRAVEL.
EVENTS, TRAVEL AND THINGS LIKE THAT.
UH, THAT'S ALREADY BEEN ALLOCATED, THAT'S BEEN APPROVED.
I GUESS WHAT I'LL GAUGE THE COLLEAGUE, UH, THE TEMPERATURE OF MY COLLEAGUES IS AT A COMMISSIONER'S DISCRETION, CAN THEY PROVIDE, LET'S CALL IT A $250 TO $300 PER MONTH STIPEND TO THEIR AIDS FOR A HOUSING ALLOWANCE LIVING IN THE CITY OUT OF THAT STIPEND THAT HAS ALREADY BEEN APPROVED.
SO THIS WOULD BE PROVIDING INCENTIVES FOR OUR AIDES TO LIVE HERE.
UH, BUT WE'D BE DOING SO WITH FISCAL RESPONSIBILITY.
UM, A COMMISSIONER COULD CHOOSE, YOU KNOW WHAT, I DON'T THINK THAT THAT'S, UH, IMPORTANT TO ME, OR IF IT IS IMPORTANT TO THEM, UH, PAY FOR IT OUT OF THAT, UH, STIPEND THAT'S ALREADY, UH, BEEN APPROVED, UH, FOR THE EVENTS, CONFERENCES, UH, TRAVEL AND MISCELLANEOUS EXPENSES.
SO IS IN, IN AN ADDITIONAL MISCELLANEOUS EXPENSE THAT COULD BE INCLUDED IN THAT ALLOWANCE, IS A HOUSING STIPEND FOR THAT INDIVIDUAL COMMISSIONER'S AIDS? W WOULD THAT BE, UH, SURE.
I THINK WE WOULD JUST NEED TO AMEND THE, THE RESOLUTION THAT ORIGINALLY AUTHORIZED THE, UH, THE 15,000 PER COMMISSIONER ALLOWANCE FOR ATTENDING, UH, VARIOUS EVENTS.
AND, UM, I, I THINK PERHAPS, I THINK THERE'S A RESOLUTION ATTACHED TO THIS, WHICH ORIGINALLY A COMMISSION, I THINK YOU MIGHT JUST AMEND THIS RESOLUTION THAT WOULD ALLOW, I'M GONNA TRY TO RETURNING COMMISSION WITH A FAVORABLE RECOMMENDATION TO PROVIDE EACH COMMISSIONER'S AID WITH A CITY OF MIAMI BEACH HOUSING STIPEND OF, OF INSERT DOLLAR VALUE HERE.
I THINK $300, 300, $300, UH, TO BE FUNDED FROM EACH COMMISSIONER'S $15,000 EVENTS AND TRAVEL BUDGET AT EACH COMMISSIONER'S DISCRETION.
I THINK THAT'S WHAT YOU WERE, YEAH, SO SUMMARIZING WOULDN'T BE, THAT'S ALREADY BEEN BUDGETED, ALLOCATED AND APPROVED.
SO WE WOULDN'T BE INCREASING OUR BUDGET WHATSOEVER.
IT WOULD JUST BE, UH, THE COMMISSION THAT ALREADY HAD THIS, UH, INCREMENTAL STIPEND APPROVED.
IF INSTEAD OF ATTENDING A CONFERENCE OR SOMETHING ALONG THOSE LINES, IF WE WOULD RATHER GIVE THAT TO OUR INDIVIDUAL AIDES FOR A HOUSING STIPEND, WE WOULD BE ABLE TO DO SO.
I THINK IF I, I KNOW IT WOULD NOT REQUIRE A, A BUDGET AMENDMENT OR ANYTHING COMING BACK TO THE COMMISSION.
WHAT WOULD JUST HAPPEN IS THAT, UH, I GUESS YOU WOULD WORK WITH, UH, THE MAYOR'S CHIEF OF STAFF WHO, UH, THAT THE, YOUR OFFICE MANAGER WE THINK KEEPS TRACK, I GUESS, OF EACH 15, WHO OTHER $15,000 YOU AVAIL YOURSELF OF THAT.
UM, YOU WOULD JUST HAVE TO WORK WITH, YOU KNOW, UH, THE HR DEPARTMENT TO HAVE THAT NEW ONE ALLOCATED.
AND THEN THE, UH, THE MAYOR COMMISSION OFFICE WOULD THEN PROCESS A BUDGET TRANSFER TO TRANSFER WHATEVER THE, THAT FISCAL YEAR'S AMOUNT IS FROM THAT GENERAL LEDGER ACCOUNT TO ANOTHER GENERAL LEDGER ACCOUNT.
SO IT WOULD JUST BE OPERATIONAL.
SO IF, IF I COULD JUST CHIME IN, I I'M FINE WITH THAT.
I, I DON'T THINK THAT HAS A FISCAL IMPACT TO, TO THE CITY.
AND I THINK THAT THAT SHOULD BE UP TO THE PREROGATIVE OF EACH COMMISSIONER.
WHAT I THINK IS, UM, I THINK WE COULD LOOK INTO THIS POOL OF MONEY THAT'S ALREADY BEEN ALLOCATED IN THE BUDGET.
AND LIKE, FOR EXAMPLE, YOU KNOW, WHAT, IF SOMEONE REALLY, YOU KNOW, DOESN'T GO TO AN EVENT THAT MUCH OR SOMETHING LIKE THAT.
I THINK, YOU KNOW, IF SOMEONE WANTS TO SUPPORT THEIR AID, THEY CAN.
OR IF SOMEONE WANTS TO, YOU KNOW, MAKE A CONTRIBUTION TO A PTA THAT'S HAVING AN ACTIVITY, WHAT I, WHAT I THINK IS, YOU KNOW, KIND OF GIVING MORE DISCRETION TO, TO, TO THE COMMISSIONERS AS TO HOW TO USE THOSE FUNDS IN COORDINATION, UH, WITH THE, EITHER THE CHIEF OF STAFF IN THE OFFICE OR THE OFFICE MANAGER.
UM, JUST FOR AS LONG AS IT'S, YOU KNOW, FOR OFFICIAL PURPOSES.
UM, BECAUSE, YOU KNOW, I'D RATHER, I, I MIGHT RATHER, YOU KNOW, SUPPORT A PTA, UH, OR A GOOD CAUSE IN, IN THE COMMUNITY AS OPPOSED TO GOING TO A GALA, YOU KNOW? SO I JUST WOULD RATHER HAVE, UM, UH, MORE OF THAT TYPE OF FLEXIBILITY PRETTY WHOLEHEARTEDLY.
COMMISSIONER, VICE MAYOR BI AGREE ON ALL ACCOUNTS.
I LIKE NOT HAVING AN ADDITIONAL BUDGET IMPACT.
UM, I LIKE HAVING THE FURTHER FLEXIBILITY TO USE THAT MONEY FOR THE GREATER GOOD IN THE COMMUNITY.
JASON, MAYBE THIS WAS A QUESTION FOR YOU.
UM, AT THE END OF THE YEAR, IF SOMEBODY HASN'T USED THEIR ALLOCATED 15 GRAND, DOES IT GO
[01:55:01]
BACK TO THE GENERAL FUND? DOES IT ROLL OVER TO THE NEXT YEAR? AND IF YOU HAVE 3000 LEFT, LATE, LEFT OVER FROM YEAR ONE AND YEAR TWO, YOU WOULD JUST BE BROUGHT BACK UP TO 15, CORRECT? CORRECT.IT'S A, WELL YOU CALL USER OR LOSE IT BUDGET 'CAUSE IT'S ALLOCATED FOR THAT SPECIFIC YEAR.
SO ANY UNUSED DOLLARS GET ROLLED DOWN TO THE, THE GENERAL FUND BALANCE, WHICH THEN IS HOW WE FUND OUR CAPITAL PROJECTS.
SO THAT WOULD JUST GO DOWN TO THE BOTTOM LINE SURPLUS.
AND SO DOES IT HAVE TO BE VOTED ON EVERY YEAR OR? NO, IT'S, IT'S, NO, IT'S A PART OF THE BUDGET AND AS IT IS NOW.
AND, AND, AND TAMIKA WAS JUST, CORRECT ME, IT'S NOT $15,000 PER COMMISSIONER.
IT WAS REDUCED DURING THE FINAL BUDGET TO 12,500.
UM, SO JUST AS A, AS A NOTE OF YOU, YOU DID THAT, YOU MIGHT HAVE, WE JUST HAVE TO KEEP THAT IN ACCOUNT.
UM, BUT THE MOTION AS WE HAD SPOKEN WAS JUST RELATED TO THAT.
BUT THEN THERE'S OTHER DISCUSSIONS HERE.
SO, UH, I JUST NEED TO KNOW IF, IF YOU NEED TO MODIFY THE MOTION BECAUSE THIS RELATES TO YES, SPECIFICALLY GIVING A $300 PER MONTH, UH, A, A CITY OF MIAMI BEACH HOUSING STIPEND TO, UH, ONE OR MORE, YOU KNOW, AIDS, UM, AND OBVIOUSLY WITHIN YOUR OWN BUDGETARY CONSTRAINTS OF YOUR OWN, UM, NOW $12,500 ALLOCATION.
SO LET'S AMEND IT TO, UH, INCLUDE THAT OR OTHER, UH, BE OFFICIAL, OTHER OFFICIAL USAGES.
UH, I'D ASK TO THE ATTORNEY HELP WITH LANGUAGE THERE.
WELL, WE'LL, WE'LL, WE'LL NOW GO BACK TO THE ORIGINAL MOTION AS OPPOSED TO USING THE MOTION THAT THE CFO REFERRED TO.
I WOULD THAT, AND TO MAKE IT A LITTLE BROADER, I'M GONNA MAKE SURE THAT WE INCLUDE LANGUAGE THAT INCLUDES SOME, SOME GUARDRAILS, UH, PUBLIC PURPOSE, ET CETERA.
NO CAMPAIGNING, NOTHING ALONG THOSE LINES.
UH, NO PAYMENTS TO PEOPLE INVOLVED IN CAMPAIGNS.
YEAH, IT, BECAUSE THERE'S THE, THE LIMITATION THERE MAY NOT BE ENOUGH FOR TWO AIDS TO HAVE THIS, THE 12,500, YOU MENTIONED 300.
IS THERE AN, AND I'M LOOKING TO HR HERE IN CASE I'M OFFLINE HERE, IS 'CAUSE YOU HAD MENTIONED, I THINK IN A BRIEFING ABOUT AN OPTION ABOUT BEING UP TO, UM, IS, IS THAT, IS THAT, YEAH, I MEAN, IS THAT, WOULD COMMISSIONER FERNANDEZ SAYS, BECAUSE ONE WAY TO SAY A HUNDRED, BECAUSE I ONLY COULD AFFORD, WE'VE ALREADY UTILIZED IT FOR SOME TRAVEL AND EVENTS, OF COURSE.
UM, ARE WE ABLE TO GIVE THE, THE COMMISSIONER DISCRETION TO HAVE IT VARIABLE UP TO A MAX PER MONTH PER PER COMMISSION AID? I WANNA JUST ASK HR IF THERE ANYTHING THAT I SAID THERE WOULD RUN A FOUL OF ANY HR RULES.
I'M THE ASSISTANT DIRECTOR OF HR FOR ALL YOU DO FOR OUR CITY.
UM, UH, MARLA IS, UH, ON, UH, VACATION FOR A COUPLE OF DAYS, SO I'M HAPPY TO BE HERE AND ANSWER YOUR QUESTIONS.
UM, I'M UNAWARE THAT THERE IS A, UH, A RESTRICTION IN TERMS OF THE, UH, AMOUNT OR SOME REQUIREMENT THAT MAY, UH, SPECIFY A SPECIFIC AMOUNT.
I I THINK THAT, UM, FOR YOU, UNIFORMITY AND EASE OF ADMINISTRATION, IT MAY MAKE IT MUCH EASIER AND SIMPLER, UM, TO INDICATE A SPECIFIC AMOUNT, UM, FOR, FOR THE AIDS.
I, I, I THINK THIS IS GOOD WHERE TAKING CARE OF PEOPLE THAT I, I THINK, DESERVE AND NEED IT.
UM, BUT WE'RE ALSO DOING SO IN A VERY FISCALLY RESPONSIBLE WAY OF USING MONEY THAT'S ALREADY BEEN BUDGETED AND ALLOCATED.
SO I MAY ADD ONE MORE JUST FOR YOUR CONSIDERATION.
UM, THAT MONEY, WHATEVER THE AMOUNT IS, WILL BE TAXABLE TO THE EMPLOYEE.
SO IF YOUR INTENT IS THAT THE EMPLOYEE HAVE AN ADDITIONAL 300 EACH MONTH, THAT AMOUNT WOULD NEED TO BE GROSSED UP.
AND I DON'T THINK WE NEED TO TAKE TIME HERE TO DO THAT.
UM, BUT I JUST WANTED TO MENTION THAT.
AND JUST, WE DO HAVE OTHER ALLOWANCES WITH EMPLOYEES THAT ARE NOT HANDLED IN THAT WAY.
MOST OF 'EM ARE HANDLED JUST AS A, AS A TAXABLE INCOME.
SO, UH, I'LL KEEP IT AT THE $300, UH, PER MONTH.
'CAUSE I THINK YOU CAN'T FIT THAT WITH THE BUDGET.
AND THEN I'M GONNA WORK WITH THE CITY ATTORNEY, I GUESS, TO ADD ADDITIONAL LANGUAGE ABOUT OPENING UP, UM, ADDITIONAL USES OF THE $12,500 PER COMMISSIONER ALLOCATION, IF THAT'S WHAT I'M HEARING.
ARE YOU OKAY WITH THAT, RICK? RIGHT.
WE'RE GONNA MODIFY THE ORIGINAL RESO FROM LAST YEAR, UM, TO, TO ADD MORE FLEXIBILITY.
SO THERE'LL BE TWO, SO THERE'LL BE TWO RESOLUTIONS.
THAT'LL BE THE, THE, THE 15TH OUT, THE, THAT ONE.
AND I, I THINK WE COULD SUBSUME THE ONE THAT WAS ON THE AGENDA IN TWO, SO WE CAN KEEP IT AT ONE RESO.
AND IT WAS WAS A CITY ATTORNEY.
IT'LL BE ONE NEW RESO AMENDING THE ORIGINAL RESO.
AND IT WAS, THIS WAS A CITY ATTORNEY RESO, SO I THINK, I THINK IT WAS PLACED ON THE AGENDA BY THE CITY ATTORNEY, BUT I THINK THE FINANCE DEPARTMENT WAS THE ONE WORKING ON IT.
IT'S, IT, IT'S KIDS ALL IN FAVOR.
AND, YOU KNOW, TALKING ABOUT, UH, OUR, OUR BUDGET AND THINGS LIKE THAT, UH, LET'S GO TO NB 19, UH, THE ROOSEVELT THEATER.
UM, I KNOW IN OUR BRIEFING IT SEEMED, UH, A GREAT CAUSE INITIATIVE.
[02:00:01]
THE FEEDBACK WE GOT, I'M REALLY HOPING THAT THERE'S A PRIVATE SECTOR SOLUTION, UH, BECAUSE FROM A GOVERNMENT STANDPOINT, I, I THINK IT WOULD BE A STRETCH.BUT WHY DON'T WE RUN THROUGH THAT? I DON'T KNOW IF COMMISSIONER ROSE GONZALEZ IS LISTENING.
UM, BUT IT'S BEEN SOME TIME AND I THINK IT'LL ACTUALLY FALL OFF IF IT'S NOT HEARD, UH, TODAY.
UM, BUT I THINK IT'S A PRETTY CLEAR CUT RECOMMENDATION FROM THE STAFF.
[NB 19. DISCUSS ADMINISTRATION NON-BINDING DISCUSSIONS WITH THE OWNER OF THE ROOSEVELT THEATER, LOCATED AT 770 ARTHUR GODFREY ROAD (THE “THEATER”), FOR THE CITY’S POTENTIAL PURCHASE OF THE THEATER; THE ADMINISTRATION APPRAISAL OF THE THEATER; AND PROPOSED TERMS FOR THE POTENTIAL PURCHASE OF THE THEATER.]
MB 19, DISCUSS ADMINISTRATION NON-BINDING DISCUSSIONS WITH THE OWNER OF THE ROOSEVELT THEATER.LOCATED AT 7 7 0 ARTHUR GODFREY ROAD, THE THEATER FOR THE CITY'S POTENTIAL PURCHASE OF THE THEATER AND THE ADMINISTRATION AND THE ADMINISTRATION APPRAISAL OF THE THEATER, AND PROPOSED TERMS FOR THE POTENTIAL PURCHASE OF THE THEATER MB 19.
GOOD MORNING CHAIR, VICE MAYOR, COMMISSIONERS, COLLEAGUES.
I'M THE ASSISTANT DIRECTOR FOR ECONOMIC DEVELOPMENT.
HAPPY TO BRING THIS, UH, ITEM TO YOUR ATTENTION.
UM, YOU MAY NOTE THAT IN UM, NOVEMBER WE SENT OUT AN LTC ABOUT, UM, THE DISCUSSIONS THAT THE CITY WAS HAVING WITH THE ROOSEVELT THEATER, UM, LAST SUMMER.
WE WERE DIRECTED TO, WELL LAST ACTUALLY FOR THAT, IT WAS LAST YEAR.
UM, WE WERE ASKED TO, UM, EXPLORE IF THERE WAS A WAY TO WORK WITH THE ROOSEVELT THEATER, SO IT WOULD NO LONGER BE, OR IT WOULD BE SOMETHING THAT WOULD BE BEAUTIFUL AND ENHANCE THE 41ST STREET CORRIDOR.
UM, TOGETHER WITH MY COLLEAGUES AT, UH, FACILITIES DEPARTMENT, THE FACILITIES DEPARTMENT DID, UH, UH, AN APPRAISAL OF THE PROPERTY AND THE PROPERTY VALUE CAME BACK AT, BACK AT AN ESTIMATED, UM, $16,150,000.
DID YOU WANNA ADD TO THAT? LET'S HEAR THAT NUMBER AGAIN.
I SAY, LET'S WRITE THE CHECK NOW.
AND MY UNDERSTANDING, UH, JUST TO HAVE ON THE RECORD, IS WE REACHED OUT TO THE OWNER AND HE SAID, PERHAPS, YOU KNOW, I AM NOT COMMITTING TO ANYTHING, BUT I HAVE SOMETHING PERHAPS UNDER DISCUSSION IN THE WORKS.
AND IF WE WANTED TO STEP IN, UH, HE GAVE A NUMBER OF 30 MILLION, 30 MILLION, 30 MILLION FOR THAT, THAT THEY ARE, THAT'S THEIR BASELINE OF WHAT THEY WANT TO DISCUSS.
UM, OH, NO, THAT, IF YOU WANT, THAT'S BASICALLY IT.
SO WHILE IMPORTANT, THAT WOULD JUST BE TO PURCHASE IT AND THEN HEAVEN KNOWS WHAT WE WOULD DO WITH IT, WHICH WOULD BE TENS OF MILLIONS OF DOLLARS OF MORE.
UM, DID, DID I MISSPEAK IN SAYING THAT THE PROPERTY OWNER SAID HE WAS UNDER DISCUSSIONS IN WAYS TO ACTIVATE THE PROJECT? WELL, THEY HAVE AN INTERNAL, UM, UH, COMPANY THAT'S WORKING WITH THEM ON COMING UP ON HOW THEY CAN UTILIZE THE SPACE.
BUT FOR US, WHEN WE ASKED THEM WHAT THEY WOULD, THEIR PRICE FOR THE PURCHASE OF THE PROPERTY, THEY SAID 30 MILLION.
SO, BUT AFTER THAT 30 MILLION, WE HAVEN'T REALLY DONE A DUE DILIGENCE ON THE COST AND, UM, WALKING THROUGH THE PROPERTY TO SEE, YOU KNOW, EXACTLY THE COST OF REMEDIATION OR MAINTENANCE OR, UM, YOU KNOW, 30 MILLION WOULD BE OUR BASELINE.
AND THEN ALSO IF WE WERE TO ENGAGE IN A LONG-TERM LEASE WITH THEM MORE THAN 10 YEARS, IT WOULD REQUIRE REFERENDUM AS WELL.
UM, SO ALL THOSE THINGS HAVE NOT BEEN KIND OF FLUSHED OUT.
UM, WHAT WE'RE COMING TO, UM, THE COMMITTEE ABOUT, IS THERE ALTERNATIVE WAYS TO LOOK AT HOW WE CAN DISPOSE OF, WHEN I SAY DISPOSE OF UTILIZE, UH, THE PROPERTY, UM, AND THEY ARE IN THE MEMO.
ONE IS, YOU KNOW, THE CITY CAN OBVIOUSLY BUY IT OUTRIGHT.
WE CAN ENTER INTO, UH, A, A PUBLIC PRIVATE PARTNERSHIP.
WE CAN ENGAGE DIRECTLY WITH THE, THE OWNERSHIP.
THERE ARE A NUMBER OF WAYS THAT WE CAN, YOU KNOW, COME UP WITH SOME TYPE OF, UH, OF DISPOSITION FOR THAT PROPERTY, UM, THAT WE HAVEN'T EXPLORED.
WE WANT TO MAKE SURE THAT YOU ARE AWARE OF WHAT THE VALUE WAS AND WHAT THE ASKING PRICE IS.
AND I GUESS FROM MY PERSPECTIVE, I, I WOULD TAKE IT OFF THE TABLE ABOUT POTENTIALLY BUYING IT, YOU KNOW, WHEN HIS BASELINE IS, UH, TWO TIMES APPRAISED VALUE AND WE DON'T HAVE A GOOD ESTIMATE FOR WHAT WE WOULD DO OR THE INCREMENTAL COST FOR THAT.
UM, THAT DOESN'T MEAN THOSE DISCUSSIONS ARE DEAD FOREVER, JUST IN THE ITERATION THAT WE GOT BACK, IF, UH, PEOPLE WANTED TO WORK INTERNALLY ON SEEING IF THAT REALLY IS THE BASELINE NUMBER.
BUT WHEN WE'RE GETTING BACK, YOU KNOW, DO WE MOVE FORWARD WITH, UH, ANY TYPE OF DISCUSSIONS IN THE $30 MILLION RANGE? UM, I LAMENT THAT THE PROPERTY SITS THERE, YOU KNOW, KIND OF ABANDONED SINCE 2006, BUT, UH, THE CURRENT ITERATION OF THE CITY PURCHASING IT FOR $30 MILLION AND THEN FIGURING OUT WHAT TO DO, I, I JUST DON'T THINK IS, UH, IS FEASIBLE.
BUT I'LL, I'LL TURN THAT OVER IF I'M HAPPY TO BE SWAYED WITH A COMPELLING ARGUMENT.
HEATHER, DO YOU KNOW IF IT'S THE SAME, UM, PROPERTY OWNERS AS IT HAS BEEN SINCE 2003? I BELIEVE SO.
[02:05:01]
ANY OTHER, I DUNNO.I MEAN, I, I'M NOT SURE WE'D HAVE TO CHECK COMMISSIONER.
I, UM, LIVED IN THAT NEIGHBORHOOD FOR 16 YEARS, MY FIRST 16 YEARS HERE.
AND I KNOW FOR A FACT, A VERY WELL KNOWN RESTAURATEUR APPROACHED THEM YEARS AGO, UM, 2005 ISH, UH, MAYBE A LITTLE LATER, BUT AROUND THERE, UM, TO USE THAT UNIQUE AND BEAUTIFUL SPACE AT THE ENTRANCE OF OUR CITY TO DO A VERY HIGH-END RESTAURANT.
AND, UM, SO I, I DON'T KNOW THESE FOLKS.
I DON'T WANNA CAST DISPERSIONS, BUT I'M NOT INCLINED TO SPEND $30 MILLION ON A RELATIVELY SMALL PROPERTY WHERE THE USE IS UNCLEAR.
UM, I HOPE THAT WHATEVER THEY DEVELOP HAS A WAY TO INCORPORATE THE FACADE OF THIS THEATER BECAUSE IT'S SO ICONIC AND BEAUTIFUL.
UM, AND THEY COULD BE REALLY CREATIVE AND BUILD SOMETHING NIFTY THERE, BUT I DON'T THINK 30 MILLION AT OUR SOON TO BE DISAPPEARING DOLLARS, UM, SHOULD BE PUT TO THAT.
IF I, IF I MAKE, UM, VICE MAYOR, THEY, WHEN WE PUT OUT THE RFLI FOR THE CITY, UM, LOTS IN THAT AREA, THEY HAD PUT IN A PROPOSAL TO USE THE LOT.
I THINK IT'S P 60 THAT'S BEHIND THE BUILDING.
BUT, UM, AGAIN, I I, I'LL PASS ON THIS SO YOU WON'T GET A COMPELLING ARGUMENT FOR ME.
UM, LISTEN, I, AND, AND I DON'T THINK THAT INVESTING $30 MILLION OF THE TAXPAYER'S DOLLARS ON, ON THAT IS, IS A RIGHT MOVE, BECAUSE THEN ON TOP OF THAT, YOU GOTTA THINK OF HOW DO YOU IMPROVE THE PROPERTY.
UH, AND THERE'S GONNA BE SIGNIFICANT, SIGNIFICANT CAPITAL COSTS, UH, IN THAT.
AND SO, YOU KNOW, THAT'S JUST YOU ENTRY ON TOP OF THE FACT, I DON'T KNOW THAT THEY'RE REALLY INTERESTED IN SELLING, YOU KNOW, THIS, THIS WAS US KNOCKING ON SOMEONE'S DOOR, UH, YOU KNOW, SAYING, HEY, SELL, WE REALLY WON YOUR ASSET.
I REALLY DON'T THINK THAT THEY'RE, UH, INTERESTED IN SELLING THIS TO US.
AND I THINK THE BIGGEST IMPACT THAT, THAT THERE IS, IS THAT YOU'RE REALLY NOT, YOU DON'T HAVE THAT, THAT GROUND LEVEL ACTIVATION.
AND, YOU KNOW, AND, AND THAT'S WHERE, I DON'T KNOW IF WE'VE ENGAGED IN ANY CONVERSATION WITH THE PROPERTY OWNER OF, WELL, I GOT ACTIVATING THE ENTIRETY OF THAT PROPERTY MIGHT BE DIFFICULT, THAT THEATER MIGHT BE DIFFICULT, BUT IS THERE THE ABILITY, AT LEAST THE GROUND LEVEL PORTION TO LOOK INTO, YOU KNOW, WHAT IMPROVEMENTS CAN BE DONE TO, TO THAT PORTION TO AT LEAST ACTIVATE, AT LEAST FOR THE PURPOSES OF SUPPORTING PEDESTRIANISM AND, AND STREET LEVEL, UH, ACTIVITY, UM, TO, YOU KNOW, FOCUS ON THAT.
UM, AND SEE, AND SEE EVEN DO THEY NEED SOME ZONING RELIEF FOR THAT? BECAUSE I JUST THINK THAT THAT, UH, LACK OF STREET LEVEL ACTIVATION DOES HAVE A DOMINO EFFECT IN THAT AREA, IN THE ECONOMY OF THAT, OF THAT AREA.
AND SO, SO WHILE ACTIVATING THE, THE ENTIRE SPACE MIGHT BE A BIG ENDEAVOR IF WE APPROACH THEM AND SAY, WELL, WHAT CAN YOU DO AS IT RELATES TO, YOU KNOW, A SMALLER ACTIVATION OF WHAT IS MORE OF THE STOREFRONT? AND, YOU KNOW, HOW CAN WE HELP YOU ACHIEVE THAT? UM, MIGHT BE, MIGHT HELP US GET SOME TRACTION, UH, AT LEAST SOME LOW HANGING FRUIT, I BELIEVE A PORTION IT, 'CAUSE THEY OWN THE WHOLE BLOCK PORTION.
THEY OWN THE WHOLE BLOCK, BUT YOU KNOW, YOU HAVE THE STOREFRONT OF THE THEATER ITSELF, RIGHT? THE STOREFRONT THAT, THAT, THAT PORTION THERE, IT'S, IT'S DEAD.
AND SO, AND SO THAT'S WHAT, YOU KNOW, I'M WONDERING, YOU KNOW, WHAT COULD POTENTIALLY HAPPEN WITH THAT? THAT'S NOT HAPPENING.
I MEAN, HAVE, WERE YOU GUYS EITHER OF YOU OR ANYBODY FROM THE CITY INSIDE THE BUILDING, IS IT FUNCTIONAL? DOES IT NEED TO BE BROUGHT UP? IT'S NOT FUNCTIONAL, IT'S, IT NEEDS REPAIR.
SO THEY, EVEN IF WE DID SOME KIND OF STORE, YOU KNOW, STREET LEVEL ACTIVATION, WHICH I LOVE THAT IDEA, THEY WOULD HAVE TO, OR SOMEBODY WOULD HAVE TO PUT SOME MONEY INTO IT TO MAKE IT, WHICH I, I UNDERSTAND IS LIKE IN MILLIONS UPON MILLIONS.
BUT, BUT IF WE LOOK, OKAY, HOW ABOUT A SMALLER FOOTPRINT OF THAT? YEAH.
THAT AT LEAST ADDRESSES, YOU KNOW, WHAT'S PART OF YOUR URBAN ENVIRONMENT THERE.
YOU KNOW, YOU NEED PEDESTRIANISM, YOU NEED ACTIVITY THAT SUPPORTS THE NEIGHBORING BUSINESSES AS WELL, AT LEAST THAT LOW HANGING FRUIT AS OPPOSED TO HOW DO YOU ACTIVATE THIS BIGGER, MORE MASSIVE SPACE AS TENS OF THOUSANDS OF, OF SQUARE FEET.
HOW BIG IS THE INTERIOR ENVELOPE? IT'S, UH, I THINK IT'S OVER 20.
THE LOT IS 21,538 SQUARE FEET.
[02:10:01]
ACRE.THE, THE BUILDING AND THE STRUCTURE ITSELF IS 45,947 SQUARE.
BUT THE PART THAT ACTUALLY, YOU KNOW, SUPPORTS STREET LEVEL ACTIVATION IS MUCH SMALLER.
IT MIGHT BE SOMETHING MUCH MORE MANAGEABLE, UH, TO, TO, TO, TO WORK AROUND.
AND IF WE CAN APPROACH THEM AND SEE WHAT CAN WE DO ABOUT THAT, AND IF WE CAN SUPPORT THEM IN NON-MONETARY WAYS, YOU KNOW, IF THEY NEED ANY ZONING RELIEF OR ANYTHING FOR THAT, I THINK IT'S SOMETHING THAT WE SHOULD BE CONSIDERING TO SUPPORT THE ECO, THE ECONOMY OF THE AREA.
COMMISSIONER, WE HAVE PUBLIC COMMENT.
ROBIN JACOBS, PLEASE UNMUTE YOURSELF.
THANK YOU FOR THE OPPORTUNITY TO STAY COMMISSIONERS.
I'M, AND I'M A 35 YEAR RESIDENT OF MIAMI BEACH, SPECIFICALLY THE MID BEACH COMMUNITY.
AS A COMMITTED COMMUNITY ACTIVIST, I HAD THE PRIVILEGE OF SERVING ON THE MAYOR'S 41ST STREET COMMITTEE FOR THE PAST EIGHT YEARS AND SPEARHEADING MANY, MANY INITIATIVES AIMED AT REVITALIZING 41ST STREET.
I'M HERE TO ADVOCATE FOR AN OPPORTUNITY THAT COULD TRANSFORM THE HEART OF MID BEACH, WHILE ADVANCING OUR CITY'S COMMITMENT TO ECONOMIC RESILIENCE AND COMMUNITY WELLBEING.
I URGE YOU TO CONSIDER THE ACQUISITION OF THE ROOSEVELT THEATER AND ADJACENT PROPERTIES ON 41ST STREET, THE TRUE GATEWAY TO MIAMI BEACH.
IT WAS A CONCEPT THAT I HAD PRESENTED DURING MAYOR BERG'S TENURE.
THE TIME IS NOW FOR THIS PROJECT.
UM, IT HAS THE POTENTIAL TO BECOME A CULTURAL COMMUNITY HUB, A VIBRANT, MULTI-USE SPACE FOR ARTS, EDUCATION, AND CONNECTION.
IT'S NO SECRET THAT 41ST STREET'S IN DIRE NEED OF ACTIVATION, WHILE PRIVATE INVESTMENT IS ALREADY BEING MADE TOWARDS FUTURE DEVELOPMENT, THERE'S NOW A BID.
THE CITY HAS THE OPPORTUNITY TO LEAD BY INVESTING A SPACE THAT WILL BENEFIT RESIDENTS FOR GENERATIONS.
IMAGINE A COMMUNITY CENTER WHERE CHILDREN CAN FIND ENRICHMENT SUPPORT RIGHT IN THEIR OWN NEIGHBORHOOD.
PICTURE STREET ALIVE WITH CULTURAL ACTIVATIONS, PROGRAMMING, SMALL BUSINESS OPPORTUNITIES, POTENTIALLY WORKFORCE HOUSING, SAFE INVITING SPACES THAT REFLECT THE VIBRANCY OF MIAMI BEACH.
THIS IS ABOUT MORE THAN REAL ESTATE.
IT'S ABOUT RESILIENCE, COMMUNITY STRENGTH, AND ECONOMIC VITALITY.
FOR OUR MOST IMPORTANT GATEWAY TO OUR COMMUNITY, EITHER BY FINANCING THIS OR THROUGH A PUBLIC PRIVATE PARTNERSHIP, THE CITY COULD CREATE A LANDMARK THAT NOT ONLY ENHANCES THE QUALITY OF LIFE ON 41ST STREET, BUT IN THE WHOLE ENTIRE COMMUNITY, BUT DRIVES LOCAL ECONOMIC GROWTH.
I URGE YOU TO TAKE A BOLD STEP FORWARD TO A STRONGER, MORE CONNECTED MIAMI BEACH.
I URGE YOU TO NOT STOP THE CONVERSATION TODAY TO DIRECT, UM, CITY STAFF TO CONTINUE THE CONVERSATION.
ONE, THANK YOU FOR ALL YOU DO FOR OUR COMMUNITY.
IT'S TRULY NOTED AND APPRECIATED.
UH, I'D BE HAPPY TO, UH, ENTERTAIN IN SOME, UH, BRAINSTORMING FOR PUBLIC-PRIVATE PARTNERSHIP, UH, IDEAS FOR, UH, FOR THIS.
I, I THINK WE'D BE HARD PRESSED, YOU KNOW, FROM A CITY STANDPOINT, WE'D BE LOOKING AT A MINIMUM OF $50 MILLION OFF THE BAT WITH THE $30 MILLION ACQUISITION, AND THEN, UH, HOW WE RENOVATE AND ACTIVATE THIS.
UM, BUT GIVEN THE ADJACENT LOT THERE, AND THEN THIS, UH, MAYBE IT'S A PRIME OPPORTUNITY FOR A PUBLIC-PRIVATE PARTNERSHIP.
IF YOU HAD, IF YOU WERE THE 41ST STREET BID, OUR COMMUNITY IN GENERAL, MAYBE WE CAN HAVE A, UH, YOU KNOW, KIND OF A COMMUNITY DRIVEN BRAINSTORMING SESSION FOR WHAT THE PROPER USAGE OF THIS WOULD BE.
UM, I'D BE HAPPY TO, UH, TO ENTERTAIN THAT, UH, UM, BE BY YOUR SIDE TO HELP LEAD THOSE EFFORTS.
UH, BUT LET'S TALK OFFLINE AFTER THIS.
AND I ECHO THAT BECAUSE 41ST STREET DOES NEED THE ACTIVITY.
WE JUST NEED TO GET CREATIVE, YOU KNOW, $30 MILLION IS NOT THE SOLUTION BECAUSE, BECAUSE THAT'S A LOT THAT THAT IS VERY, THAT IS A LOT OF CREATIVE
BUT I THINK, UH, WE CAN CERTAINLY, UM, LOOK AT WHAT ELSE CAN HAPPEN.
SHARE IF I CAN, I THINK WHAT I'M HEARING THEN IS, IT'S A TWOFOLD, IS THAT THIS WOULD RETURN TO COMMISSION WITH AN UNFAVORABLE RECOMMENDATION FOR THE PURCHASE OF THE ROOSEVELT THEATER, BUT FOR THE ADMINISTRATION TO ENGAGE WITH THE PROPERTY OWNER AND THE BID ON SOME TYPE OF STREET LEVEL ACTIVATION.
AND THEN, YOU KNOW, KIND OF AN ALL HANDS ON DECK EFFORT TO, UH, BRAINSTORM OR COLLABORATE ON, UH, P THREE IDEAS.
I, I HAVE ABSOLUTELY NONE IN MIND.
UM, BUT YOU KNOW, ROBIN REALLY, UH, MADE A GREAT COMPELLING POINT WHEN SHE TALKED ABOUT SOME SORT OF COMMUNITY ACTIVATION THERE FOR THE CHILDREN IN THE AREA.
UM, GIVEN I BELIEVE THAT WE'RE LANDOWNER ADJACENT THERE, I THINK THE CITY ENTERING INTO SOME SORT OF P THREE WITH, UH, ANOTHER PRIVATE PARTY, UH, COULD BE, YOU KNOW, THE WAY FORWARD THERE, COMMISSIONER BOT, WHO WOULD TECHNICALLY HAVE TO MAKE THE MOTION IS OKAY, WE COULD ADD STREET LEVEL ACTIVATION TO ANY P THREE OPPORTUNITIES.
IS THAT ACCEPTABLE? NO, WE DO HAVE TWO COMMENTS.
NATALIE, I, I ALWAYS WANT TO HEAR FROM OUR PUBLIC.
[02:15:01]
AMY MAY WHO PLEASE UNMUTE YOURSELF.AMY MAYHEW, EXECUTIVE DIRECTOR OF THE 41ST STREET BUSINESS IMPROVEMENT DISTRICT.
UM, WE ARE SUPPORTIVE OF STAFF'S RECOMMENDATION OF WORKING WITH THE PROPERTY OWNERS TO IDENTIFY SOME P THREE PROJECT, UH, WITH THE CITY.
UH, WE DON'T THINK IT'S SOMETHING THE CITY CAN DO ON ITS OWN.
UM, AND THE PROPERTY OWNERS HAVE BIT, HAVE EXPRESSED INTEREST AND ARE CONTINUING TO EXPRESS INTEREST ON WORKING WITH THE CITY, WITH THE LOT IN THE BACK IN ORDER TO REDEVELOP THE SITE INTO SOMETHING THAT, UH, IS MORE BEST SUITABLE FOR THE STREET AND FOR THE, AND FOR THE PROPERTY AND THE OWNERS.
UM, THERE'S OPPORTUNITIES FOR WORKFORCE HOUSING, UM, AND CREATING DYNAMIC GROUND FLOOR OPERATE, UM, GROUND FLOOR RETAIL OPPORTUNITIES.
WE'D LIKE TO BE ABLE TO EXPLORE ALL OF THAT WITH THE, WITH THE COMMISSION AND THE CITY.
UM, AND WE ARE HERE AND ACTIVE WITH DONORS TO BE ABLE TO SUPPORT ALL OF THAT.
SO WE APPRECIATE, UM, COMMISSION MAGAZINE, YOU SENTIMENT, AND COMMISSIONER FERNANDEZ AND EVERYONE'S DIRECTION ON AND WORKING WITH THE, WITH THE PROPERTY OWNERS.
EVERYBODY HERE SUPPORTED THANK, THANK YOU FOR WHAT YOU DO FOR THE CITY.
AND, UH, 41ST STREET SPECIFICALLY.
LARRY SCHAEFER, PLEASE UNMUTE YOURSELF.
UM, REGARDING THIS ITEM, I JUST WANNA SAY, DIDN'T WE JUST HAVE A CONVERSATION ABOUT BUDGET, FINANCIAL RESPONSIBILITY.
THE CITY SHOULD NOT PURCHASE THIS PROPERTY.
THIS IS NOT THE BYRON CARLISLE.
THE BYRON CARLISLE WAS, IS IS OWNED BY THE CITY.
AND SO THAT'S THE THEATER WE HAVE TO DEAL WITH.
EVERY CITY AROUND THE, THE COUNTRY AND AROUND THE WORLD HAS OLD THEATERS THAT THEY WANNA REPURPOSE.
THE PROBLEM IS THAT THESE SHELLS ARE VERY HARD TO REPURPOSE.
YOU COULD SCRAPE OUT THE INTERIORS AND THERE'S VERY LITTLE THAT YOU CAN DO.
UM, I TALKED TO SOME DEVELOPMENT, UH, EXPERTS.
THEY GAVE ME THEIR TIME ON THIS.
AND TWO OPTIONS THAT MAY MAKE SENSE ARE LIVE MUSIC, VENUE OP OWNED, OWNED BY THE CURRENT OWNER, AND MAYBE RUN BY RHYTHM FOUNDATION OR LIVE NATION, MAYBE WITH SOME STREET FRONT RETAIL.
UM, IT, AND THE BEST IDEA THAT I HEARD FROM THESE GUYS WAS A GROCERY STORE LIKE ALDI, FRESH MARKET OR WHOLE FOODS.
YOU HAVE CANAL THERE, MAYBE A LITTLE CANAL FRONT CAFE, THE AREA, I DON'T, I'M NOT SURE THEY HAVE, UH, LIKE A DISCOUNT GROCERY STORE LIKE ALDI OR A HIGH END, UH, GROCERY STORE, LIKE WHOLE FOODS.
I THINK EVEN KRG HAD SOMETHING TO HAVE A DISCUSSION ON THAT.
AND THE ACTION MAY BE TO GO TO THE ECONOMIC DEVELOPMENT DEPARTMENT AND SAY, REACH OUT TO GROCERY STORES AND LIVE NATION.
MAYBE THEY HAVE A PROPOSAL FOR YOU.
AND FINALLY, ONE CREATIVE IDEA MIGHT BE ARTIST WORKSPACES, SUBDIVIDE THE PLACE AND, AND BRING SOME ARTISTS IN AND, AND HAVE, LIKE WITH, WE USED TO HAVE ON LINCOLN ROAD, UH, WITH THE ARTIST STUDIOS.
AND I THINK, UH, THE COMMENTS THAT YOU HEARD FROM THE THREE OF US UP HERE, ECHO, UH, THE ORIGINAL COMMENTS THAT YOU MADE, UH, BUT THEN IN TERMS OF, YOU KNOW, DOING SOME SORT OF ARTIST, UH, WORKSPACE, GIVEN THAT IT'S PRIVATE PROPERTY, WE'D BE LIMITED IN WHAT WE'RE ABLE TO DO.
BUT I ENCOURAGE OUR ECONOMIC DEVELOPMENT TEAM TO, UH, BE, UH, CREATIVE AND COLLABORATIVE WITH THE PROPERTY OWNER.
AND WE COULD DO SO WITH ROBIN IN THE 41ST STREET BIT AS WELL.
SO, THANK YOU ALL FOR THE DOMINANCE ON, ON THE MOTION.
LET'S GO TO NB FIVE, UH, THE SOUTH OF FIFTH EMPLOYEE PARKING.
UM, I THINK THAT SHOULD BE A QUICK ITEM, UH, BE I THINK PRETTY HELPFUL FOR THAT NEIGHBORHOOD.
UM, JOSE AND YOUR TEAM, THANK YOU FOR ALL THE WORK THAT YOU'VE DONE.
AND JUST, UH, MB FIVE, DISCUSS
[NB 5. DISCUSS A POTENTIAL PARKING PILOT PROGRAM FOR SOUTH OF FIFTH RESTAURANT EMPLOYEES.]
THE POTENTIAL PARKING PILOT PROGRAM FOR SOUTH OF FIFTH RESTAURANT EMPLOYEES AND B FIVE.JOSE GONZALEZ, TRANSPORTATION AND MOBILITY DIRECTOR AND INTERIM PARKING DIRECTOR.
SO WE RECOGNIZE THE CHALLENGES THAT RESTAURANTS IN THE SOUTH OF FIFTH NEIGHBORHOOD FACE WITH HIGH, HIGH EMPLOYEE TURNOVER, PARTIALLY DUE TO JUST THE CHALLENGES WITH FINDING PARKING, THE COST OF PARKING, METERED PARKING IN THE AREA, COMPETING USES AND, AND, UH, THE LIMITED SUPPLY.
SO, UM, UNDER YOUR, UH, LEADERSHIP AS WELL AS TO SOME EXTENT, UH, UH, COMMISSIONER, UH, SUAREZ HAD ALSO MET WITH THE COMMUNITY AND WAS TRYING TO DEVELOP SOME, SOME OPTIONS TO, UH, PARKING OPTIONS TO ASSIST.
AND SO, UM, WE'VE, WE'VE DEVELOPED A STAFF HAS DEVELOPED TWO OPTIONS THAT WE THINK HOPEFULLY ARE VIABLE FOR THE NEIGHBORHOOD.
AND I THINK WE'RE PREPARED TO, YOU KNOW, HAVE A MEETING WITH, WITH THE RESTAURANTS AND SHARE THOSE OPTIONS AND GET THEIR FEEDBACK.
SO THE TWO OPTIONS INCLUDE, THE FIRST ONE IS THE USE OF THE SOUTH POINT, UM, ELEMENTARY PARKING LOT THROUGH A JOINT USE AGREEMENT BETWEEN THE CITY AND THE SCHOOL BOARD.
THE CITY IS ABLE TO USE, UH, TO HAVE JOINT USE OF THAT PARKING LOT DURING, AFTER SCHOOL HOURS, SPECIFICALLY, UH, MONDAY THROUGH THURSDAY FROM 6:00 PM
[02:20:02]
TO 3:00 AM AND FRIDAYS FROM 6:00 PM ALL THE WAY TO MONDAY AT 3:00 AM.UH, THAT ALSO APPLIES TO, UM, HOLIDAYS AND, AND, UH, OBVIOUSLY WEEKENDS AS WELL.
UM, THROUGH THAT JOINT USE AGREEMENT, IT IS POSSIBLE THAT SOUTH OF FIFTH RESTAURANT EMPLOYEES MAY BE ABLE TO PARK THERE AT A, AT A COST.
UH, THE CITY HAS TO PAY THE SCHOOL BOARD AN ANNUAL LEASE FEE IF YOU, IF YOU WILL.
AND SO WHAT WE'VE DONE IS WE'VE BACKED FROM THAT NUMBER, WE'VE BACKED INTO WHAT A MONTHLY PARKING PERMIT WOULD COST.
UH, AND WE'RE, WE'RE AT $90 PER MONTH PER TAXES.
WHEN YOU LOOK AT ALL THE WORKING DAYS IN A MONTH, THAT COMES OUT TO LIKE THREE OR FOUR, DO $4 A DAY.
SO, JOSE J JUST TO CLARIFY THERE, THE CITY WOULD MAKE AN UPFRONT, UH, PAYMENT OF $15,000 FOR THE YEAR, BUT THEN WE CAN ESSENTIALLY GO OUT TO, UH, A HANDFUL OF RESTAURANTS DOWN THERE.
I BELIEVE THERE'S 62 SPACES, IS THAT CORRECT? YES.
AND WE COULD SAY, OKAY, THERE'S SIX RESTAURANTS THAT WANT TO UTILIZE THIS.
YOU CAN ESSENTIALLY PAY $10, OR I'M SORRY, GET 10 SPACES, UH, EACH DIVIV THEM UP TO YOUR EMPLOYEES AS YOU SEE FIT.
AND WE COULD ESSENTIALLY BREAK EVEN ON THE COST OF THAT.
WE CAN'T USE THIS AS PART OF OUR AGREEMENT WITH THE SCHOOL BOARD AS A REVENUE GENERATOR, BUT WE CAN ESSENTIALLY SUBSIDIZE OR OFFSET OUR COSTS.
SO WE ESSENTIALLY, THIS WOULD BE REVENUE NEUTRAL.
AND MR. CHAIR, EVEN THAT UPFRONT COST, I'M SORRY, MR. CFO, UH, DIDN'T WANT TO, UH, DELEGATE MY TITLE, BUT, UM,
UM, AND THIS IS JUST KIND OF MOVING THE PROGRAM FORWARD.
THE, THE $15,000 ONE FOR SOUTH POINT ELEMENTARY, THAT ONE HAS ALREADY BEEN HANDLED BY RESOLUTION AND HAS BEEN, UH, IS IN THE PROCESS OF, OF IMPLEMENTATION.
SO THAT ASPECT, THE, ONE OF THOSE TWO OPTIONS IS ALREADY DONE.
I THINK IT'S THE SECOND OPTION AT FIFTH AND ALTON THAT IS MORE ON THE TABLE FOR DISCUSSION.
SO IF, IF I MAY, VERY QUICKLY, THE SECOND OPTION WOULD BE THE USE OF THE FIFTH, FIFTH AND ALTON, UH, PARKING GARAGE.
IT IS A LITTLE BIT FURTHER FROM THE SOUTH OF FIFTH, UH, RESTAURANT.
HOWEVER, IT DOES PROVIDE MORE FLEXIBILITY, UH, BECAUSE AT THE VERY COMPARABLE COST OF A HUNDRED DOLLARS A MONTH, EMPLOYEES ARE NOT LIMITED.
THERE ARE NO TIME CONSTRAINTS.
WE WOULD SET ASIDE ABOUT A HUNDRED PARKING SPACES IN THAT GARAGE, AND THEY WOULD BE AVAILABLE AT ANY TIME OF THE DAY OR NIGHT, ANY DAY OF THE WEEK FOR, UM, SOUTH OF FIFTH RESTAURANT EMPLOYEES.
UM, LET ME ASK YOU THIS, BECAUSE I, I HAVE A, I HAVE A SEPARATE ITEM, BUT I THINK THIS IS A GOOD OPPORTUNITY TO, TO TALK ABOUT IT.
UM, BECAUSE MAKING THE SPACES AVAILABLE IS IMPORTANT.
THE WORKFORCE HAS A LACK OF PARKING SPACES, BUT THEN IT'S ALSO JUST IN GENERAL, THROUGHOUT THE CITY, FOR A LOT OF BUSINESSES, IS HARD FOR THEM TO KEEP THEIR WORKFORCE BECAUSE OF THE COST OF THE PARKING.
AND I THINK ONE OF THE THINGS THAT WE REALLY NEED TO CONSIDER, AND, UM, I THINK, I THINK IT MIGHT BE COMING TO THIS COMMITTEE, IS I REALLY THINK WE NEED TO ALMOST SEE OUR WORKFORCE AS A PART OF OUR COMMUNITY.
THEY'RE NOT OUR RESIDENTS, BUT THEY DO CONTRIBUTE TO OUR ECONOMY.
UM, AND SO, YOU KNOW, HOW DO WE EXTEND TO THE WORKFORCE, THE RESIDENT PARKING RATE? UM, I THINK THAT THAT'S SOMETHING IMPORTANT.
UH, JUST BECAUSE, YOU KNOW, THEY'RE PART OF OUR COMMUNITY.
A LOT OF THEM DEAL WITH, AGAIN, FIXED INCOMES.
UH, YET THEY'RE BEING DISPLACED.
NOT DISPLACED IN TERMS OF HOUSING, BUT DISPLACED FROM THEIR JOBS.
THEY'RE CHOOSING NOT TO COME TO WORK IN, IN MIAMI BEACH BECAUSE OF THE COST OF, OF THE PARKING HERE.
UM, SO, YOU KNOW, I WOULD LIKE US, IN ADDITION TO THIS, WHICH YOU'RE TAKING TREMENDOUS LEADERSHIP ON THIS, UH, COMMISSIONER MAGAZINE, IS, YOU KNOW, THAT COST OF PARKING AND, YOU KNOW, IS IT FEASIBLE TO EXTEND TO THOSE WHO WORK IN OUR CITY THAT THE RESIDENT RATE TO, SO THAT WE DON'T END UP DISPLACING OUR WORKFORCE? YEAH, IT, IT'S GREAT.
UH, FA I HAVE FAMILY, MY DAUGHTER'S MOTHER IS PART OF THAT WORKFORCE THAT, YOU KNOW, IS BURDENED BY THE HIGH COST OF PARKING IN THE AREA.
UM, SO IT'S NEAR AND DEAR TO ME, PERHAPS WHERE THAT CAN REALLY BE IMMEDIATELY UTILIZED.
'CAUSE YOU KNOW, I'M SURE THERE WOULD BE SOME CONCERNS, AREAS THAT ARE ALREADY TIGHT ON RESIDENTIAL PARKING INCREASING, BUT ESPECIALLY IN AREAS WHERE WE HAVE UNDERUTILIZED GARAGES, UM, IN THE A CDC, UH, ART DECO CULTURAL DISTRICT.
AND ACTUALLY, I JUST HAD AN ITEM, UH, THIS PAST COMMISSION MEETING THAT'LL WORK ITS WAY THROUGH THE PROCESS FOR THE 17TH STREET GARAGE, UH, FOR THE EMPLOYEES IN, YOU KNOW, KIND
[02:25:01]
OF THAT, UH, COLLINS AVENUE, THE HOTEL DISTRICT, THE HOSPITALITY WORKERS THERE.'CAUSE UH, I WAS WALKING OUR MUNICIPAL GARAGES AT THE NEW WORLD SYMPHONY ON 17TH STREET AND SAW HOW UNDERUTILIZED THEY ARE.
AND THEN WE HAVE THE SERVICE WORKERS, YOU KNOW, PARKING OUT ON THE STREET TAKING OFTENTIMES ABUSING THE HANDICAP PLACARDS, UM, OR, UH, YOU KNOW, AT VERY HIGH COST TO THEM.
THEY ARE AN EXTENSION OF OUR COMMUNITY.
SO TO BE ABLE TO ACCOMMODATE THEM WHERE WE ALREADY HAVE UNDERUTILIZED PARKING IN THE 17TH STREET OR NEW WORLD SYMPHONY GARAGE, DO SO AT ACCOMMODATIVE RATES THERE, UM, PERHAPS WE CAN, UH, WORK JOINTLY ON OTHER AREAS WHERE THAT MAKES SENSE IN SOME OF OUR UNDERUTILIZED GARAGES.
SO WE'RE BRINGING MORE REVENUE INTO THE CITY, FREEING UP PARKING THAT MIGHT BE BEING, YOU KNOW, IN MANY WAYS ABUSED AS PART OF THE HANDICAP ARDS.
UH, AND THAT'LL ACTUALLY MAYBE INCREASE SOME OF OUR PARKING RATES AS, YOU KNOW, UH, UH, TOURISTS AND VISITORS, THEY'RE ACTUALLY PAYING THE FOUR RATES INSTEAD OF, YOU KNOW, THE EMPLOYEES USING THE HANDICAP STUFF AND, YOU KNOW, PARKING ON OUR STREET.
SO IT'S KIND OF A ENTIRE ECOSYSTEM THAT WE'D BE HELPING OUT THERE.
COMMISSIONER FERNANDEZ IS CORRECT.
THERE IS A, IT'S FUTURE ITEM 25, UH, THAT'LL BE HEARD, UM, NEXT MONTH.
ON REDUCED PARKING RATES FOR ALL MIAMI BEACH WORKFORCE.
UM, BUT, UH, ON THIS, ON THIS PARTICULAR ITEM, I, I THINK, UH, IF THERE'S ANY OTHER COMMENT, IT WAS JUST RETURN TO COMMISSIONER THE FAVOR RECOMMENDATION, IMPLEMENT THE PROGRAM AS PRESENTED.
YOU ALL DID A LOT OF WORK ON THIS.
LESLIE ROSENFELD, IF YOU'RE OUT THERE IN THE ABYSS SOMEWHERE LISTENING, I KNOW YOU DID A LOT OF WORK WITH, UH, WITH THE SCHOOL BOARD AS WELL.
PERHAPS ONE CONVERSATION THAT WE COULD FOLLOW UP ON IS THE INITIAL FEEDBACK THAT I'VE GOTTEN, AND I THINK YOU HIT ON THIS, UH, YOU KNOW, THE SOUTH POINT ELEMENTARY PARKING LOT, WHILE MUCH BETTER LOGISTICALLY PLACED BECAUSE OF THE TIME LIMITATIONS COULD PRESENT SOME CHALLENGES, THEN I SAID, OKAY, WELL MAYBE IT'S BETTER UTILIZED ON THE WEEKENDS, BUT EVEN THAT FRIDAY, STARTING AT 6:00 PM IS PROBABLY GOING TO LIMIT THE WEEKEND SHIFTS, UH, FOR SOME OF THE RESTAURANTS.
LET'S HAVE CONVERSATIONS WITH THE RESTAURANTS AND SAY, WHAT TIME WOULD YOU, WHAT TIME WOULD YOUR EMPLOYEES NEED THAT TO START WITH? IF THEY USED IT ON A FRIDAY NIGHT, IS IT 4:00 PM IS IT 5:00 PM AND THEN PERHAPS JUST FOR THAT ONE SINGLE NIGHT, UH, WE COULD GO BACK TO, UH, THE SCHOOL BOARD AND SAY, ON FRIDAYS, CAN WE ESSENTIALLY, UH, MAKE THAT ACCOMMODATION INSTEAD OF 6:00 PM AT 4:30 PM OR 5:00 PM 'CAUSE IT DOES THIS NEW GOOD.
THE PROGRAM WON'T BE UTILIZED IF EMPLOYEES HAVE TO SHOW UP TO WORK AT FIVE, BUT THEY CAN'T PARK TILL SIX.
I I, I THINK THAT THAT'S A DISTINCT POSSIBILITY.
I KNOW THAT THE CHILDREN ARE ON CAMPUS UNTIL I THINK SIX O'CLOCK WHEN, UH, THE FINAL AFTERCARE IS OPEN, WHICH MAY BE WHY THE 6:00 PM IS THERE, BUT IT COULD BE SOMETHING THAT'S EXPLORED.
BUT, ALRIGHT, WE'LL SHOW ALL, ALL IN FAVOR.
THAT'S A GREAT THING WHEN YOU SEE THINGS FROM THE PERSPECTIVE OF THE RESIDENT, YOU'RE A RESIDENT, RIGHT? THAT'S WHAT I, OKAY.
[NB 13. DISCUSS EARMARKING ALL RENT IN EXCESS OF THE MINIMUM FIXED RENT RECEIVED PURSUANT TO THE DEVELOPMENT AND GROUND LEASE AGREEMENT BETWEEN THE CITY AND MB MIXED USE INVESTMENT, LLC, FOR THE DEVELOPMENT AND OPERATION OF THE CONVENTION CENTER HEADQUARTER HOTEL FOR THE PURPOSE OF PROMOTING AND SUPPORTING WORKFORCE AND AFFORDABLE HOUSING DEVELOPMENT.]
13 DISCUSS EARMARKING ALL RENT IN EXCESS OF THE MINIMUM FIXED RENT RECEIVED PURSUANT TO THE DEVELOPMENT AND GROUND LEASE AGREEMENT BETWEEN THE CITY AND MB MIXED USE INVESTMENT LLC FOR THE DEVELOPMENT OPERATION OF THE CONVENTION CENTER HEADQUARTER HOTEL FOR THE PURPOSE OF PROMOTING AND SUPPORTING WORKFORCE AND AFFORDABLE HOUSING DEVELOPMENT, MB 13.SO THIS, UM, WAS AN IDEA THAT I BROUGHT FORWARD WHEN WE HAD THE DISCUSSION OF, UM, THE HOMELESS TRUST FUNDING AND HOW TO USE WHETHER OR NOT THE HOTEL WAS GONNA GO FORWARD AND HOW TO PROVIDE, UM, AFFORDABLE HOUSING OPTIONS IN A CITY WHERE LAND COST, LAND ACQUISITION COSTS ARE SO HIGH.
AND, UM, ONE WAY, UM, THIS IS MONEY THAT IS GOING TO BE FALLING INTO OUR LAPS IN, IN A MANNER SPEAKING, UM, IS USING THE, THE RENTS COMING FROM THE CONVENTION CENTER HOTEL.
AND THE REASON WHY I THINK THIS IS MERITORIOUS OF CONVERSATION IS BECAUSE LIKE OTHER SORT OF INTRACTABLE ISSUES IN OUR CITY, LIKE TRAFFIC AND, UM, SEA LEVEL CHANGE, UM, CLIMATE CHANGE IN GENERAL, AFFORDABILITY, REMI REMAINS ONE OF THE BIGGEST PROBLEMS AND MOST VEXING TO SOLVE IN OUR CITY.
IT DRIVES TRAFFIC, NO PUN INTENDED.
UM, BUT WE JUST HAD A CONVERSATION ABOUT WHERE DO YOU ARE REALLY NOT INTENDED, REALLY NOT INTENDED.
I COULDN'T, I'M NOT THAT CLEVER TO THINK OF THESE THINGS.
UM, WE JUST, OUR LITERALLY OUR LAST CONVERSATION WAS WHERE DO OUR EMPLOYEES PARK WHEN THEY DRIVE ACROSS THE BRIDGE TO COME TO WORK? SO, YOU KNOW, THE MORE HOUSING WE CAN PROVIDE TO THE WORKFORCE AT MULTIPLE LEVELS OF AFFORDABLE HOUSING, BECAUSE THERE IS A NEED AT MULTIPLE LEVELS, UM, THE BETTER OFF WE ARE.
[02:30:01]
THE BIGGEST CHALLENGE TO, UM, TO AFFORDABLE HOUSING IS THE LAND, IS THE ACQUISITION COST.WHETHER IT'S, YOU KNOW, LAND AND YOU BUILD NEW OR IT'S LAND AND YOU REHAB, WHICH IS A GREAT WAY TO GO.
AND I'M VERY MUCH IN FAVOR OF THAT.
BUT THIS IS MONEY THAT IS, UM, NOT INSIGNIFICANT AND IS GOING TO HELP MITIGATE TRAFFIC ISSUES AND IMPROVE THE QUALITY OF OUR LIFE.
AND COLLECTIVELY BECAUSE THE MORE PEOPLE YOU HAVE, YOU KNOW, EYES ON THE STREET, THE BETTER OFF THE COLLECT THE COMMUNITIES BECOME.
AND, UM, IT HELPS US BECOME LESS OF A TOURISM DRIVEN ECONOMY, MORE OF A RESIDENT DRIVEN ECONOMY.
'CAUSE WE'VE GOT PEOPLE LIVING HERE FULL TIME.
SO THAT'S THE CONVERSATION I WANTED TO HAVE.
JASON, IS THIS YOUR ITEM TO PRESENT IN MORE DETAIL OR IS THERE SOMEBODY ELSE? UH, I THINK WE HAVE MARIA HERE CAN, OH, TAIS IS HERE.
UH, BUT ALSO I'M, I'M AVAILABLE TO, TO SPEAK ON THIS.
I, I JUST HIGH LEVEL IS JUST TO REMEMBER THAT, UH, THE CONVENTION CENTER HOTEL, UH, NICE CHUNK OF THOSE REVENUES ARE ALREADY ALLOCATED.
SO THE FIXED PORTION OF THOSE RENT IS ALREADY ALLOCATED BASED ON A PREVIOUS RESOLUTION AND PART OF THE BALLOT QUESTION THAT THE VOTERS VOTED ON, UH, ONE THIRD EDUCATION, ONE THIRD TO TRANSPORTATION, ONE THIRD TO RESILIENCY STORMWATER PROJECTS.
UH, AND THEN, UH, JUST RECENTLY ISH IN THE PAST FEW MONTHS, UH, THE BED TAX PORTION OF THE RESORT TAX WAS ALLOCATED TO FUND, UH, HOMELESS EFFORTS GOING FORWARD.
SO THE, THE MAIN POINT OUTSIDE OF PROPERTY TAXES, THAT WOULD BE A, TALKING ABOUT GENERATING REVENUES, ADDITIONAL REVENUES TO THE CITIES GENERAL FUND TO PAY FOR POLICE AND FIRE WOULD BE THIS VARIABLE PORTION, WHICH THE DEVELOPER IS ESTIMATED TO BE IN THE, ANYWHERE FROM LIKE 1.8 TO $2.5 MILLION RANGE OVER THE NEXT, YOU KNOW, FIVE TO 10 YEARS PER YEAR.
UH, SO I THINK THE, UH, TA I'LL LET TA TO ADD ANYTHING TO THAT.
UH, TPI CITY LIAISON TO THE HOTEL PROJECT.
UM, SO THE, UM, THE LEASE STIPULATES THAT THE MINIMUM FIXED RENT, RIGHT, WHICH WE HAVE IT, UH, CALCULATED AT 16, ABOUT 16.8, SORRY, 16.6 MILLION OVER THE NEXT, OVER THE FIRST 10 YEARS.
AND THE GUARANTEE RENT, I'M SORRY, THE PERCENTAGE RENT, WHICH IS BASED ON REVENUES, RIGHT? GROSS REVENUES OF THE HOTEL.
SO, UH, THE VARIABLE RENT, WHICH IS WHAT WE'RE TALKING ABOUT HERE, IS REALLY A FUNCTION OF, OF THE OVERALL REVENUE OF THE PROJECT.
SO, UH, THE CALCULATION OF THE VARIABLE RENT OVER THE FIRST 10 YEARS, ABOUT 20.4 MILLION.
UM, SO I THINK JUST THAT IT WAS LISTED IN THE MEMO THERE, YOU KNOW, THAT OBVIOUSLY THIS IS A VERY BIG POLICY DECISION OF THE COMMISSION IS JUST FROM THE ADMINISTRATION'S PERSPECTIVE, IS TO SEE WHETHER, UM, YOU KNOW, ONE WOULD CONSIDER PERHAPS, YOU KNOW, THE, THE ONE THIRD VALUE LIKE IS DONE ON THE FIXED RENT PORTION IS IF, IS THIS, UH, A RECOMMENDATION THAT'S GONNA BE ALL OF IT AND NOTHING TOWARDS THE GENERAL FUND OR A ONE THIRD OR ONE HALF.
SO THAT'S REALLY, I GUESS THE DISCUSSION IS IF, UM, THIS IS IS SOMETHING THAT THIS COMMITTEE WANTS TO FORWARD TO THE COMMISSION, UH, THE RECOMMENDATION TO, TO DO THIS AT ALL OR, OR PORTION OR WHATNOT, AND JUST THE CALCULATION OF THE ONE THIRD, IF WE CAP IT AT ONE THIRD, CAPPING IT AT $700,000 PER YEAR, WHICH IS WHAT WE RECOMMEND IN A MEMO THAT COMES OUT TO ABOUT 6.5 MILLION OVER THE FIRST 10 YEARS.
SO THE, THE WAY I SEE IT IS THAT, UM, YOU KNOW, SIX POINT WHATEVER MILLION OVER THE FIRST NUMBER OF YEARS IS NOT NOTHING, BUT IN OUR OVERALL BUDGET, UM, GENERAL FUND BUDGET, IT'S NOT A SIGNIFICANT AMOUNT VERSUS IF WE KEPT IT FOCUSED ON AFFORDABILITY ISSUES AND WE COULD, UM, YOU KNOW, HOPEFULLY INSURANCE RATES, I MEAN, UM, INTEREST RATES WOULD STAY HIGH.
UM, AND WE COULD ROLL THAT MONEY OVER, OVER FIVE OR SIX YEARS AND THEN EVERY SORT OF 10 YEARS OR WHATEVER, WE'D HAVE A NICE BIG CHUNK OF CHANGE TO GO ACQUIRE A PROPERTY OR DO SOME RENOVATIONS OR PICK UP A PIECE OF LAND, UM, TO, AND I DON'T WANNA TAKE AWAY FROM ANYTHING THAT IS ALREADY EARMARKED OUT OF THESE FUNDS.
SO I'M NOT TALKING ABOUT TOUCHING THAT THIS IS PURELY HOW WE USE THIS.
DOES IT GET DUMPED INTO THE, THE GENERAL FUND FOR FUTURE USE, OR DO WE FOCUS IT? AND MY VIEW IS WE FOCUS IT, WE INVEST IT, WE, WE GET IT WORKING FOR OUR CITY AND THEN WE SCRAPE IT AT EVERY OPPORTUNE MOMENT WHEN EITHER WE HAVE A GREAT DEAL THAT FALLS INTO OUR LAPSE OR YOU KNOW, IT HITS A, A PREDETERMINED LIMIT OF WHATEVER IT IS, $10 MILLION.
AND THEN WE PUT THAT INTO USE TO AFFORDABILITY ISSUES BECAUSE I DON'T SEE THAT GOING AWAY OF ITS OWN ACCORD ANYTIME SOON EITHER.
AND I WANNA HEAR COMMISSIONER DOMINGUEZ, MR. CFO, JUST, UH, THIS IS JUST OFF THE CUFF AND UM,
[02:35:01]
I'LL CAVEAT IT WITH HOW COMMISSIONER FERNANDEZ CAVEATED THE CRAZY IDEAS AND THINGS LIKE THAT.BUT, UH, ANY, ANYTHING THAT HAS A, UH, FUTURE CASH FLOW CAN BE SECURITIZED IN ESSENCE, RIGHT? THROUGH BOND FUNDING.
IT'S A, A CASH FLOW STREAM COULD BE BONDABLE, RIGHT? SO INSTEAD OF SITTING HERE PICKING UP FIVE OR $600,000 PER YEAR, UH, COULD WE ESSENTIALLY ISSUE SOME SORT OF A ATTAINABLE HOUSING BOND THAT WOULD BE PAID OUT OF THIS CA UH, CASH STREAM OVER THE NEXT 30 YEARS.
SO INSTEAD OF GETTING $700,000 PER YEAR, UM, AND 10 YEARS FROM NOW, YOU KNOW, WE HAVE, UH, SIX OR SEVEN, UH, MILLION DOLLARS AND WE CAN'T REALLY CAN'T EVEN BUY A PROPERTY FOR 30 YEARS, CAN WE ESSENTIALLY BORROW OVER THE FUTURE, UH, LET'S CALL IT CAP OF $700,000 OF, UH, FUTURE, UH, TAX FLOWS THAT WAY WE GET THAT MONEY NOW, OR
BUT I THINK THE EASIER SOLUTION WOULD BE ESSENTIALLY BONDING THAT.
YEAH, THERE'S TWO WAYS TO GO IS IS THERE'S THE PAYGO MODEL WHERE YOU WOULD TAKE THAT, WE'LL JUST USE THE NUMBER 700,000, UH, 700,000 PER YEAR AND IT BUILDS UP A COUPLE YEARS AND, YOU KNOW, WE MAKE, UH, EITHER A PURCHASE TO MAKE IT AFFORDABLE HOUSING A PROJECT, WHETHER WE'RE BUYING A BUILDING OR A UNIT OR CONDO UNITS ITSELF, LIKE, UH, ALBA'S TEAM DOES FROM TIME TO TIME, OR IF IT'S A DEPO, UM, A CONTRIBUTION TO A DEVELOPER'S PROJECT TO MAKE A CERTAIN NUMBER OF UNITS AFFORDABLE.
SO OTHER THAN THAT, BUT YES, YOU COULD, YOU COULD BOND THAT OUT AND, YOU KNOW, GET AN IMMEDIATE, UM, YOU KNOW, CHUNK OF CHANGE NOW TO DO, DO SOMETHING BIGGER AND THEN USE THAT CASH FLOW TO PAY THE DEBT.
AND, AND THAT $700,000 IS ABOUT A HALF OR ONE THIRD OF THE TOTAL.
UH, I THINK THE RECOMMENDATION THAT WAS IN THE LETTER WAS, UH, IS IF IT WAS ONE THIRD, UM, IT'S VER 'CAUSE IT'S VARIABLE AND IT'S, IT'S KIND OFF.
SOME YEARS IT MIGHT BE THREE TIMES.
WELL, IT DEPENDS ON HOW MUCH YOU'RE, YOU'RE GONNA END UP BONDING, BONDING IT OUT, RIGHT? UM, BUT IN THIS EXAMPLE, UH, THE ONLY CAVEAT WITH THAT IS IT LOCKS YOU IN FOR A LONG TIME INTO THAT USAGE OF THOSE FUNDS WHERE TODAY, YOU KNOW, IT COULD BE WORKFORCE HOUSING 10 YEARS FROM NOW, IT COULD BE ANOTHER NEED.
IF YOU WOULD ESSENTIALLY BOND FROM FUTURE CASH FLOWS, IT, YOU'RE LOCKING INTO, OKAY, THAT'S WHAT THIS MONEY FOR THE NEXT 30 YEARS IS.
YOU WOULD BE LOCKED INTO THE WHATEVER THE PERIOD OF, OF PAYING OFF THAT DEBT IF YOU WENT DOWN THAT.
BUT WOULDN'T THE GOAL OF THAT BE TO GET THE MONEY UP FRONT SO YOU COULD DO THE PROJECT NOW.
SO EVEN IF YOU'RE LOCKED INTO IT FOR 30 YEARS, YOU'RE LOCKED INTO THE SERVICE OF THE DEBT FOR 30 YEARS.
BUT IN THEORY, THE PROJECT WOULD BE COMPLETED OR THE PROJECT WOULD BE COMPLETED WITHIN THE FIRST 10 YEARS.
SO IT'S JUST, YOU KNOW, THE WAY WE DID WITH IT, 20 OR THE ORIGINAL GEO BOND, NOT THE ONE IN 2018, THE ONE BEFORE THAT, THAT PEOPLE WERE TALKING ABOUT.
BUT THAT, UH, THIS BOND WOULDN'T BE AD VALOREM TAX REVENUE.
IT WOULD ACTUALLY HAVE A DEDICATED FUNDING SOURCE.
SO IT WOULD ESSENTIALLY BE A REVENUE BOND.
UM, BUT, BUT MY POINT BEING THAT, YOU KNOW, WE WOULD SEE THE FRUITS OF THAT BOND NOW.
UM, AND JUST PAY IT OFF LIKE A, BASICALLY A BRIDGE LOAN GOVERNOR REGRET TO GIVE YOU ALL THESE IDEAS.
UM, NATALIE, CAN WE HEAR COMMISSIONER DOMINGUEZ? COMMISSIONER DOMINGUEZ, PLEASE UNMUTE YOURSELF.
LET ME SEE IF I CAN DO THIS WITHOUT HAVING ECHO.
UM, I'M CALLING, UH, ABOUT, UH, THIS PARTICULAR ITEM JUST FOR CLARITY.
UH, COMMISSIONER MARK STALIN, UM, STARTED THE PRIVATE PROPERTY ADAPTATION PROGRAM AND HE DID A RESOLUTION IN 2020 EAR EARMARKING, THE STORMWATER PORTION OF THE HOTEL REVENUE, UH, TO GO TOWARDS THE PRIVATE PROPERTY ADAPTATION PROGRAM.
UM, I ENSURED THAT IT'S BEEN FUNDED THROUGH THE END OF 2025, UH, BECAUSE THE HOTEL HAD BEEN DELAYED IN GETTING BUILT.
BUT THE RESOLUTION IS THERE FOR THAT PROGRAM.
AND THE PURPOSE OF BRINGING THAT PROGRAM TOGETHER AND HAVING THE MONEY FROM THE RESILIENCY PORTION OF THE BALLOT QUESTION EARMARKED FOR THE PRIVATE PROPERTY ADAPTATION IS THAT THE CITY IS DOING A LOT OF WORK TO ENSURE THAT OUR PUBLIC STREETS ARE DRY, OUR PUBLIC SEA WALLS ARE RAISED, AND THAT WE'RE SETTING THE STANDARD.
AND WHAT GOOD IS IT IF ALL OF THE PUBLIC STUFF IS DRY, BUT THEN WE'RE DROWNING OUT, UH, THE PRIVATE PROPERTY OR THE PRIVATE PROPERTY IS BEING PUT AT RISK.
SO THAT WAS THE PURPOSE OF THIS.
I DON'T KNOW IF AMY KNOWLES IS IN HERE IN, UH, THE ROOM.
UH, 'CAUSE SHE CAN TALK A LITTLE BIT MORE ABOUT THIS.
UM, SHE HAS, UH, MORE OF THE BACKUP.
[02:40:01]
OF PEOPLE ARE NEW.UH, THIS WAS BEFORE JASON, UH, WAS IN THERE.
UM, BUT AMY WORKED VERY CLOSELY WITH COMMISSIONER SAMUEL TO ENSURE THAT, UH, OUR PRIVATE PROPERTIES ARE PROTECTED AND SHE CAN TALK MORE ON THIS TOPIC AS WELL.
AMY KNOWLES, CHIEF RESILIENCE OFFICER.
UM, ABSOLUTELY, I'VE BEEN WITH THIS PROGRAM FROM THE BEGINNING AND IT'S REALLY TO INCENTIVIZE PRIVATE PROPERTY ADAPTATION AND FOR FLOOD MITIGATION.
REALLY IMPORTANT FOR OUR, OUR CITY SINCE 93% OF BUILDINGS ARE IN THE FEMA SPECIAL FLOOD HAZARD AREA.
UM, SO I'M HAPPY TO ANSWER ANY QUESTIONS, BUT IT WAS, YOU KNOW, PRESENTED TO THE FULL COMMISSION BACK IN 2020.
WE DID HAVE A DIFFERENT CFO AT THE TIME.
UM, IT WAS VERY CLEARLY EXPLAINED THAT, UM, SOME OF THAT HOTEL REVENUE, UH, COULD BE FUTURE FUNDING FOR THIS PROGRAM, UNDERSTANDING THAT THERE REALLY ISN'T FEDERAL FUNDING AVAILABLE FOR FLOOD MITIGATION FOR PRIVATE PROPERTY OWNERS.
SO THERE, THERE WAS DISCUSSION AND THAT WAS ON THE RECORD AT THE TIME.
AND, UM, THERE'S A RESOLUTION AS WELL.
SO FOR CLARIFICATION, THE MONEY THAT I'M TALKING ABOUT IS FROM A DIFFERENT POT OF THE, THE RENT MONEY COMING FROM THE HOTEL THAN THIS PRIVATE PROPERTY ADAPTATION.
I I WOULD HAVE TO, I THINK JASON WOULD HAVE TO, WELL LET RICK JUMP IN TOO.
IS, UH, CURRENTLY THE PRIVATE PROPERTY ADAPTATION PROGRAM IS FUNDED THROUGH THE RESILIENCY FUND.
NO, I, I UNDERSTAND, BUT I I BELIEVE THAT THERE WAS SOME CONFUSION AT SOME POINT IN TIME, NOT THIS COMMISSION, BUT THE PRIOR COMMISSION, UM, BECAUSE THERE WERE REFERENCES IN SOME OF THE MINUTES, UH, TO THE IDEA THAT ONCE THE HOTEL WAS ONLINE, THEN THE MONEY WOULD NO LONGER NEED TO COME OUT OF THE RESILIENCY FUND.
WHICH LED ME TO BELIEVE WHEN I READ THOSE MINUTES, THAT THAT COMMISSION WAS ACTING UNDER THE IMPRESSION THAT THERE WAS SOME PORTION OF REVENUES FROM THE HOTEL AND WHETHER THEY BELIEVED THAT THAT WAS OUT OF THE MINIMUM GUARANTEES, WHICH WE KNOW ARE CURRENTLY ALREADY EARMARKED FOR THREE SPECIFIC ITEMS, OR WHETHER THERE WAS SOME THINKING THAT IT WOULD COME OUT OF THE PERCENTAGE REVENUE THAT IS UNCLEAR FROM THE RECORD.
BUT I THINK THAT THE, THE ISSUE THAT, THAT COMMISSIONER DOMINGUEZ IS RAISING IS THAT THERE WAS SOME EXPECTATION THAT HOTEL REVENUES WOULD HELP TO FUND THE PRIVATE PROPERTY ADAPTATION PROGRAM, BUT ISN'T PART OF THE, UM, THE THREE EARMARKED AREAS THAT ARE ALREADY IDENTIFIED.
WELL, IT'S SPECIFIC TO STORMWATER PROJECTS THAT WOULD, UM, IN THEORY KEEP THE, AT LEAST HELP TO MITIGATE AGAINST, UH, RISES IN THE, THE UTILITY COSTS.
AND HOW MUCH FUNDING DO YOU NEED PER YEAR FOR THE PRIVATE PROPERTY ADAPTATION? WELL, RIGHT NOW IT'S 606,000.
YEAH, I'M, WHAT WAS THAT? THAT'S THE CURRENT THAT HOW THE PROGRAM WAS SET UP WAS IT WAS HOW MUCH? 666,000 PER YEAR.
AND THAT WAS THE ONE THIRD OF THE TWO, 2 MILLION.
THAT'S HOW IT WAS SET UP, UH, INITIALLY IN 2020.
IT'S CURRENTLY, UH, FUNDED THROUGH THIS FISCAL YEAR, AND I BELIEVE WE HAVE A RESOLUTION COMING UP THAT'LL CONTINUE THAT FUNDING FOR, UH, FIVE ADDITIONAL YEARS AS THIS PROGRAM GETS IMPLEMENTED.
SO OUT OF THE RENT YOU COULD DO, UM, A THIRD, WHICH WOULD COVER THE RESILIENCE PROGRAM, THAT PRIVATE PROPERTY ADAPTATION PROGRAM IN THE FUTURE.
BECAUSE I, I'M, BECAUSE WE SAID 700,000 FOR THIS, FOR AFFORDABLE HOUSING IS, UM, ONE THIRD OF THE PERCENTAGE.
IF, IF THE, IF IT'S THE COMMITTEE'S DESIRE TO FORWARD TO THE COMMISSION, UH, WITH A RECOMMENDATION THAT THE VARIABLE PORTION OF THE RENT WOULD BE USED ONE THIRD.
SO WHAT I'M SAYING, WE COULD DO ONE THIRD PRIVATE PROPERTY ADAPTATION, ONE THIRD, ONE THIRD TO AFFORDABLE HOUSING.
THE, WHAT'S THE THIRD, THIRD? THE GENERAL FUND EDUCATION? NO, THAT, THAT COMES OUTTA SOMETHING ELSE.
UH, THE ONE THIRD OF THE FIXED RENT IS ALSO IS, IS EDUCATION, RIGHT.
SO THAT, THAT'S SEPARATE FROM THIS, THIS IS THE VARIABLE RATE.
THIS IS, WE'RE TALKING ABOUT THE VARIABLE TODAY.
SO WHAT I, I WOULD RECOMMEND IS DOING ONE THIRD TO THE PRIVATE PROPERTY ADAPTATION TO ENSURE THAT IS FUNDED GOING FORWARD.
AND THE REMAINING TWO THIRDS GO TO, UM, AFFORDABLE HOUSING ISSUES.
I THOUGHT JUST THE REMAINING THIRD.
SO A THIRD WOULD ALSO JUST THEN FLOW INTO THE GENERAL FUND? NO, I'M SAYING INSTEAD OF IT FLOWING INTO THE GENERAL FUND, HAVING IT BE FOCUSED ON, UM, AFFORDABLE HOUSING ISSUES, YOU THINK I'D BE OKAY HAVING A THIRD OF THAT.
THAT'S THE $700,000 THAT WE'RE TALKING ABOUT.
WE, WE, WE, UH, RECOMMENDED CAPPING IT AT $700,000.
UM, SO WE RECOMMENDED CAPPING AT 700,000 AS CURRENTLY CALCULATED, UH, BASED ON THE PERFORMANCE THEY DID LAST YEAR.
IT STARTS OUT THE VARIABLE RENT, THE THIRD OF THE VARIABLE RENT STARTS OUT AT 800,000 THE FIRST YEAR, AND THEN IT GOES DOWN FROM THERE.
UM, AND THEN THE AVERAGE BECOMES ABOUT 600,000.
[02:45:01]
SORRY, ON THE VARIABLE RENT TWO AND A HALF MILLION THE FIRST YEAR.SO, UH, IF, IF IT IS THAT THE PRIVATE PROPERTY ADAPTATION FUNDS AT 6 660 6,000, IF THE CONDITION RATE IS TO CONTINUE THE PRIVATE PROPERTY ADAPTATION AS THE EXISTING FUNDING STREAM OF, YOU KNOW, THE FIRST 6 66 THERE, 700 MORE, AND THEN IT COMES UP TO, UH, WHAT THE COMMITTEE WANTS TO ENTERTAIN, IF THEY WANNA MAKE IT AS A PERCENTAGE, IF THEY WANNA MAKE IT AS A SPECIFIC, UH, DOLLAR VALUE.
AND THEN ANYTHING ABOVE THE GENERAL FUND.
SO, SO WE MIGHT NOT EVEN HAVE AS MUCH AS $700,000 IN TOTAL.
THERE MAY BE YEARS, UH, LOOKING AT THE, THE ESTIMATES IT COULD BE 1.88 MILLION.
SO IF THAT'S WHAT YOU USED THE THIRD, IT WOULD, MIGHT ACTUALLY BE LESS THAN 700,000.
BUT YOU COULD DO THE THIRD, YOU COULD DO THE PRIMARY PROPERTY ADAPTATION OF 666,001 THIRD TO, UH, AFFORDABLE HOUSING WITH A CAP OF 700,000.
ANYTHING ABOVE THAT TO THE GENERAL FUND OR ANYTHING ABOVE PRIVATE PROPERTY ADAPTATION TO AFFORDABLE HOUSING.
HOWEVER, THE COMMITTEE DESIRES, I MAY HAVE MADE THINGS CONFUSING.
THE VARIABLE RENT AS CALCULATED, IT STARTS AT 2.4 MILLION THE, THE FIRST YEAR, AND THEN IT GOES DOWN FROM THERE AND KIND OF STAYING AT THE SAME AVERAGE AS CURRENTLY CALCULATED.
THAT THIS IS BASED ON PROFORMA THEY DID LAST YEAR.
SO WHEN YOU DO A THIRD OF THAT, UM, IT STARTS AT 800 AND 786, THEN 741, WHAT WE'RE SAYING WE'RE RECOMMENDING CAPPING IT AT 700,000.
AND THAT, BUT THAT IS A THIRD FOR, FOR AFFORDABLE HOUSING, A THIRD FOR GENERAL FUND AND A THIRD FOR PRIVATE PROPERTY ADAPTATION.
I THINK WE KEEP THE PROPERTY PROPERTY ADAPTATION AT IT'S A SPECIFIC FUNDING AMOUNT.
SO I, WHAT I MIGHT WANNA DO, UM, AND THIS ISN'T A REQUEST, IT'S A CONVERSATION IS TO, UM, BETTER THAN A DEMAND.
WELL, YOU KNOW, UM, IS TO, UM, CONTINUE THIS UNTIL NEXT MONTH AND SEE IF YOU GUYS CAN FLESH OUT THIS IDEA OF, UM, DOING A REVENUE BOND.
BECAUSE WHAT I'M CONCERNED OF ABOUT IS THAT WE'RE GONNA HAVE THESE SMALL AMOUNTS OF MONEY THAT AREN'T GOING TO BE SUBSTANTIVE.
I MEAN, IT'LL FUND THE PPA AND THAT'S GREAT.
UM, BUT TO THE GE GENERAL FUND AND TO THE AFFORDABLE HOUSING MISSION, $700,000 EVERY YEAR IS NOT GONNA DO MUCH.
AND SO IF WE CAN USE THAT MONEY TO LEVERAGE FUNDING FOR NOW WHERE WE CAN GO IN AND BUY UP A WHOLE BUNCH OF UNITS AND REFURBISH THEM, UM, OR WHATEVER THE RIGHT DIRECTION IS, I WOULD BE INTERESTED IN THAT.
OTHERWISE I WOULD, UM, AND I WOULD BE WILLING TO DO A THIRD, THIRD, THIRD IF WE COULD GET TO GOOD ENOUGH NUMBERS.
IF NOT, I DO ONE THIRD FOR PPA AND THE REST FOR AFFORDABLE HOUSING.
BUT THAT IS ALL PREDICATED ON WHETHER OR NOT WE CAN DO THIS, UM, AND WHAT KIND OF NUMBERS WE CAN GENERATE.
SO I DON'T WANNA HAVE A VOTE ON THIS UNTIL WE HAVE MORE INFORMATION BASED ON YOUR GOOD IDEA, THAT'S WHY YOU'RE CHAIR OF THIS GROUP.
DOES THAT WORK FOR EVERYBODY? YEAH, JASON.
AND I THINK, UH, STAFF MAY ALREADY BE DOING SOME, UH, LEGWORK ON THIS.
I KNOW, UH, WE HAD A CONVERSATION ABOUT REACHING OUT TO BOND COUNCIL ABOUT DOING AN AFFORDABILITY, UH, BOND A WHILE BACK.
I THINK OUR BOND COUNCIL HAD CONCERNS ABOUT SOME LEGAL AND FINANCIAL, EVEN SOME REGULATORY THINGS, UH, SPECIFICALLY IF WE USED, UH, BOND PRO PROCEEDS, UM, YOU KNOW, MAKING SURE THAT THERE WAS A VALID, UH, PUBLIC PURPOSE, UH, UNDER STATE LAW, UH, FOR THESE PRO FOR, FOR THESE PROCEEDS.
UM, ESPECIALLY IF THEY, IF IT INVOLVED ANY PRIVATE PROPERTIES BUYING OUT OF PRIVATE PROPERTIES, UM, INVESTING IN PRIVATE PROPERTIES FOR PROPERTY FOR PURPOSES OF, OF AFFORDABILITY, UM, AND, AND MAKING SURE THAT, UM, THAT WE MEET A DEFINITION OF PUBLIC PURPOSE, UM, IF SOMETHING COULD BE SEEN TO BE OF PRIVATE BENEFIT.
I DON'T KNOW, RICK, IF YOU WANT TO CHIME IN ON THAT, THERE WAS SURE.
ALSO ISSUES HAVING TO, TO DO, UH, ON WHETHER WE ISSUED, UM, TAX EXEMPT BONDS OR NOT.
SO IF YOU COULD JUST CHIME IN A LITTLE BIT ON THAT.
UM, WELL, USING TAXABLE BONDS, UM, THERE ARE FEWER RESTRICTIONS THAN TAX EXEMPT BONDS.
UM, WHAT, WHAT WE'VE CONSULTED WITH, WITH BOND COUNSEL ON WAS A VERY SPECIFIC IDEA ABOUT PRESERVING, UM, EXISTING, UH, OR, OR ORGANICALLY EXISTING AFFORDABLE HOUSING.
UM, BUT WE ALSO ASKED, UM, BOND COUNCIL TO GIVE US A, A MENU OF DIFFERENT OPTIONS THAT ARE IN THE WORLD OF AFFORDABLE HOUSING, UM, PROJECTS THAT COULD BE DONE.
AND, UM, WE ARE EXPECTING, ACTUALLY, WE MAY HAVE RECEIVED SOMETHING YESTERDAY WITH SOME BULLET POINTS, UM, WHICH WE WILL BE SHARING AT THE, AT THE RIGHT TIME.
I BELIEVE THIS WOULD BE AT THE MARCH COMMISSION MEETING, THAT THIS WOULD BE, UH, BROUGHT.
[02:50:01]
RELATED TO THIS PROGRAM, NOT NECESSARILY THE EXACT SAME PROGRAM, BUT SIMILAR BETWEEN IN WHAT WAY IS IT DIFFERENT? I DON'T KNOW IF, IF, IF I MAY.WE'LL HAVE A KIND OF AN ADDITIONAL DISCUSSION WITH TAX AND, AND BOND COUNCIL.
IT MIGHT JUST BE THE, THE FUNDING STREAM, YOU KNOW, WHERE THE MONEY COMES FROM, MAY HAVE SOME CAVEATS, BUT THAT'S SOME NOTHING THAT THAT'S UNSTOPPABLE.
SOMETHING THAT TO, TO WORK THROUGH AND SEE IF THAT OPENS UP ANY ADDITIONAL OPPORTUNITIES OR, UM, HAS ADDITIONAL CAVEATS.
AND, AND NOT TO OPEN PANDORA'S BOX, YOU KNOW, GOING DOWN, TALKING ABOUT, UH, WORKFORCE AFFORDABLE, ATTAINABLE HOUSING.
UH, BUT IF WE'RE GONNA BE USING TAXPAYER DOLLARS, I'D RATHER DO IT IN A WAY THAT INCREASES THE SUPPLY OF OVERALL HOUSING, NOT JUST BUYING, UH, EXISTING SUPPLY THAT'S ALREADY ON THE PRIVATE MARKET.
AND ESSENTIALLY, UH, TAKING THAT UNDER OUR WATCH AND CONTROL.
I'D RATHER IF WE'RE GOING TO BE SPENDING MONEY DO SO WHERE WE'RE ACTUALLY INCREASING HOUSING SUPPLY, UH, UH, WELL, I THINK THAT, UH, WILL BE PREDICATED ON WHETHER OR NOT WE HAVE STRICTURES, UM, PLACED UPON US.
UM, AND I'M OPEN TO ANY OF THAT.
I MEAN, I THINK THERE ARE LOTS OF GOOD WAYS TO DO, UM, MORE AFFORDABLE HOUSING AND, AND IT DEPENDS ON WHAT WE'RE TRYING TO ACCOMPLISH.
WHERE, BUT SO CAN WE CONTINUE THIS UNTIL NEXT MONTH TO LET YOU GUYS ALL FIGURE OUT WHAT IS AVAILABLE AND DOABLE, AND THEN WE CAN PROCEED FROM THERE? YEAH, ABSOLUTELY.
YES, I CAN, I CAN WORK WITH RICK AND THEN WE WILL, WE'LL RETURN TO FERC WITH INFORMATION ON BONDING CAPACITY OF THE, THE, THE, THIS CASH FLOW STREAM AND THE LEGALITY.
ANY LEGAL ISSUES THAT, THAT VERY MAY WELL EXIST.
IS IT POSSIBLE TO HEAR OB ONE, UH, QUICKLY, OR DO WE NEED TO, UH, RUN AND VACATE? IT'S UP TO YOU ALL.
WELL, I DON'T POUND TOWARDS FOR YEAH, BUT SEE, YOU KNOW, YOU'RE LIKE FAMILY
[OB 1. DISCUSSION ON COMMERCIAL RETAIL VACANCIES AND POTENTIAL LEASING INCENTIVES FOR OWNERS OF VACANT PROPERTIES]
OB ONE, UH, DISCUSSION ON, ON COMMERCIAL RETAIL VACANCIES AND POTENTIAL LEASING INCENTIVES FOR OWNERS OF VACANT PROPERTIES.UM, HEATHER SHAW, UH, ECONOMIC DEVELOPMENT ASSISTANT DIRECTOR.
UM, PARDON ME, I THOUGHT, HERE WE GO.
UM, WE WERE ASKED TO LOOK INTO, UH, THE ADMINISTRATION WAS ASKED TO LOOK INTO A POTENTIAL PROGRAM CALLED THE VACANT STOREFRONT REGISTRY PROGRAM AS PART OF THAT EVALUATION.
THE REASON WHY WE ARE DOING THAT EVALUATION IS AS WE ALL HAVE SEEN, UM, AND IT'S NOT JUST, UM, SPECIFIC TO MIAMI BEACH, BUT IT IS SOMETHING THAT IS HAPPENING ACROSS THE COUNTRY THAT THERE, UH, NUMBER OF AN INCREASE IN VACANT STOREFRONTS.
AND VACANT STOREFRONTS OBVIOUSLY HAVE A NEGATIVE IMPACT ON OUR COMMUNITIES.
IT, UH, IT DETERS FOOT TRAFFIC.
IT DOESN'T ENCOURAGE, UM, NEW BUSINESSES TO COME IN.
SO WE ARE TRYING TO EXPLORE HOW WE CAN WORK TOGETHER WITH OUR PROPERTY OWNERS, WITH OUR BUSINESS ORGANIZATIONS, WITH THE CITY, TO TRY TO ENCOURAGE THE ACTIVATION OF TENANTS IN THESE VACANT STOREFRONTS.
SO TO DO THAT, WE DID SOME DUE DILIGENCE.
WE CALLED, UM, A FEW CITIES, UM, ACTUALLY EIGHT OF THEM.
SOME OF THEM ARE BIG CITIES WHERE THEY WERE HAVING SOME VACANT STOREFRONT ISSUES IN SMALL CORRIDORS.
AND THEN WE ALSO CALLED SOME SMALL CITIES.
SOME OF THEM WERE SMALLER THAN US, SOME OF THEM AROUND THE SAME SIZE, TO SEE HOW THEY WERE ACTIVATING THEIR VACANT STOREFRONT REGISTRY.
SO A REGISTRY IS A, A PROGRAM WHERE, UM, ONCE A, A BUILDING IS VACANT, UNOCCUPIED THAT THEY HAVE WITHIN A CERTAIN TIMEFRAME BETWEEN LIKE 30 DAYS TO 90 DAYS TO REGISTER.
MEANING THAT THE PROPERTY OWNERS HAVE TO COMMUNICATE TO THE CITY THAT THEY ARE VACANT.
THEY PAY A FEE FOR BEING ON THAT REGISTRY.
AND WITH THAT, WITH THE LISTING OF THE REGISTRY THAT THE CITY GOES ABOUT CONNECTING THE PROPERTY WITH POTENTIAL REAL ESTATE AGENTS OR TENANTS AND HOW THEY COME TO THE CITY.
NOW, IN TALKING WITH THESE NINE CITIES, UH, A NUMBER OF THEM DO NOT, THE MAJORITY OF THEM DO NOT SHARE THIS LISTING PUBLICLY, BUT THE CITY WORKS BEHIND THE SCENES TO TRY TO MAKE THAT CONNECTION.
IT IS A STRONG CONNECTION OF HOW A COMMUNICATION CHANNEL OF HOW WE, HOW THEY CONNECT PEOPLE.
UM, THEY USE THE MONEY THAT THEY COLLECT FOR THE REGISTRY FEES TO ACTUALLY PAY FOR THE PROGRAM.
UM, MOST OF THEM HAVE VERY SMALL TEAMS. UM, THEY ALSO DO A WAIVER OF THE REGISTRY FOR CERTAIN ISSUES.
LIKE IF, IF A BUILDING IS UNDER CONTRACT OR IF IT, THERE'S SOME FINANCIAL HARDSHIP, UM, IF THE BUILDING IS GONNA USE THE SPACE FOR A POPUP OR SOMETHING CULTURAL, THEN THEY HAVE ALL THESE DIFFERENT LISTS OF, OF WAIVERS.
AND WE'VE ADDED THAT WITHIN THE, UM, THE ITEM.
AND THEN IF THE BUSINESS OR THE PROPERTY OWNER DOES NOT
[02:55:01]
PAY THE FEE OR, UM, UH, GIVE, ASK FOR SOME TYPE OF WAIVER, THERE IS A, UH, A, A FINE IN QUOTATIONS, UM, AGAINST THE PROPERTY OWNER FOR NOT DOING THAT.UM, AND EACH YEAR ALSO AS THEY REGISTER, IF THEY HAVEN'T, IF A YEAR HAS GONE BY ON SOME PROGRAMS AND THEY STILL HAVEN'T FOUND A TENANT, THEN THE REGISTRATION FEE COULD GO UP.
THERE ARE DIFFERENT ELEMENTS TO IT.
THERE'S SOME POSITIVES AND SOME NEGATIVES.
THE POSITIVE BEING THAT IT, IT FORCES THE, UM, PROPERTY OWNER TO TALK WITH THE CITY AND THE, AND THE CITY CAN WORK WITH THEM TO TRY TO FIND OTHER TENANTS, TO FIND OTHER WAYS TO ACTIVATE THE PROPERTY.
SOME OF THE CHALLENGES ARE THAT IT IS, UM, TIME AND STAFF, UM, CONSUMING, UM, AND TRYING TO, UM, FOLLOW UP WITH THEM.
UM, THAT WAS ONE OF THE CONCERNS THAT MOST OF THE CITIES HAD, THAT THEY REALLY DON'T HAVE A LOT OF, UH, RESOURCES TO GO AFTER THESE PROPERTY OWNERS.
AND EVEN SOME OF THE PROPERTY OWNERS, UM, KIND OF JUST DISREGARD THE, THE FEES AND THEY DON'T PAY THEM OR THEY PAY THEM AND THEY THINK IT'S THIS NON, YOU KNOW.
SO THIS ISN'T AN OPT-IN PROGRAM, RIGHT? HEATHER? THIS IS MANDATORY.
THIS WOULD BE A MANDATORY PROGRAM? YES.
UM, I MEAN, WELL, IT'S, IT'S IN CONCEPT, BUT WITH THE OTHER CITIES, IT'S A MANDATORY PROGRAM, BUT THEY FIND IT VERY CHALLENGING TO STAY ON, ON TOP OF IT.
UM, SO, UM, UH, LIKE I SAID, THERE'S SOME OPPORTUNITIES TO IT.
IT DEFINITELY KIND OF PAYS FOR ITSELF TO A CERTAIN EXTENT.
BUT, UM, MOST OF THE CITIES ARE SAYING THAT THEY'RE NOT FINDING THE TRACTION AND THE RESULTS THAT THEY WERE REALLY LOOKING FOR.
UM, AND A NUMBER OF THEM HAVE BEEN DOING IT FOR A NUMBER OF YEARS.
UM, IT IS AN OPTION, UM, TO POTENTIALLY DO.
UM, BUT, UH, AND WE'VE, WE'VE SCOPED OUT A, A, A, A PROGRAM THAT COULD BE VERY SIMILAR TO HOW IT'S DONE IN OTHER AREAS.
ANOTHER, UH, ELEMENT THAT WE WOULD DIRECTED TO DO IS TO TALK WITH THE BUSINESS COMMUNITY TO, SO WE, SO WE, WE INVITED THE BIDS, THE CHAMBERS TO COME AND TALK TO US, AND WE WALKED THEM THROUGH A POTENTIAL PROGRAM.
AND, UM, UH, THEY, UM, GAVE SOME FEEDBACK.
UM, SOME OF THEIR FEEDBACK WAS THAT THEY REALLY WANTED TO FOCUS ON, UM, KIND OF THE INTERNAL ISSUES, UH, WITH THE CITY IN TERMS OF THEY WOULD LIKE TO SEE A MORE, UM, ENGAGED PERMITTING, UM, PROCESS TO MAKE IT A, A LITTLE MORE, UM, EASIER.
UM, AND THAT THEY THOUGHT THAT THAT WAS, THAT MAY HAVE BEEN ONE OF THE HURDLES FOR MOST OF THE BUSINESSES COMING IN.
UM, AND THEY WERE NOT, UM, COMPLETELY IN FAVOR OF THE REGISTRY.
THEY THOUGHT THAT THE, THE, THE STAFF, UH, FOCUS SHOULD BE ON ATTRACTING BUSINESSES AND NOT CHASING BUSINESSES TO REGISTER.
UM, THEY HAVE, I THEY, OVER THE LAST FEW DAYS, THEY'VE BEEN SENDING IN EMAILS AND I'M SURE THAT THEY MAY JOIN ON FOR COMMENT.
UM, I DON'T WANNA SPEAK FOR THEM, BUT, UM, THEY WEREN'T A HUNDRED PERCENT IN FAVOR OF IT.
MOST OF THEM SAID THAT THEY WANTED US TO FOCUS ON MAKING THE PERMIT SYSTEM A LITTLE MORE EFFICIENT.
THEY WANT US TO FOCUS ON COMMUNICATIONS TO, TO INSPIRE BUSINESSES TO COME AND, AND, AND PUT ROCKET BOOSTERS ON OUR COMMUNICATIONS, WHICH WE'RE ALREADY DOING AT, AT, AT YOUR, UM, SUGGESTION CHAIR.
AND THEN, UM, THEY ALSO WANT IT TO FOCUS ON HOW WE CAN ADVANCE THE POPUP SYSTEM.
AND WE SPOKE ABOUT THAT YESTERDAY IN LAND USE ABOUT EXTENDING THE CURRENT POPUP PROGRAMS FROM THREE MONTHS TO SIX OR NINE OR 12 MONTHS.
UM, BECAUSE WITH THE THREE MONTHS, IF YOU'RE A BUSINESS THAT YOU REALLY WANNA START THREE MONTHS, IT'S REALLY DIFFICULT FOR YOU TO GET UP.
IT TAKES THREE MONTHS TO FIND A PLACE, CLEAN IT OUT, SET IT UP, AND BY THAT TIME, YOU HAVE TO BE OUT.
SO IF WE EXTENDED THAT, THAT MIGHT BE A WAY TO ALSO ADDRESS THE VACANT STOREFRONT ISSUES.
SO WHERE WE ARE NOW IS WHERE OUR SUGGESTION OF HAVING A VACANT STOREFRONT REGISTRY WOULD BE MANDATORY.
IT WOULD BE IF WE WOULD HAVE TO CREATE AN, UH, AND CORRECT ME IF I'M WRONG, UH, CITY ATTORNEY, BUT WE'D HAVE TO CREATE, UH, OR EDIT, UM, THE ORDINANCE, UM, ABOUT VACANCIES.
UM, AND WE WOULD ADD LANGUAGE THAT WOULD BE KIND OF A, A COMPILATION OF WHAT WE FOUND FROM OTHER CITIES WHERE IT WOULD BE POTENTIALLY 30 DAYS THAT THEY HAVE TO NOTIFY US.
WE WOULD MAKE A, A RED A LISTING.
THE LISTING WOULD BE AVAILABLE INTERNALLY, AND WE WOULD WORK WITH THE BUSINESS ORGANIZATIONS LIKE THE BIDS AND REAL ESTATE, UM, AGENTS AND POTENTIAL TENANTS TO TRY TO MAKE THOSE CONNECTIONS.
AND WE WOULD SUGGEST A, A REGISTRATION FEE.
AND WE COULD POTENTIALLY ALSO SUGGEST A, UM, A PENALTY FOR NOT REGISTERING.
DO WE, WE HAVE PUBLIC COMMENT IN NATALIE, 'CAUSE I KNOW, UH, THE LINCOLN ROAD BID WAS HERE, UM, AND WASHINGTON AVENUE.
SO I APOLOGIZE IF, UH, WE WRONGLY CONVEYED THAT IT WOULDN'T BE HEARD.
[03:00:02]
THERE'S NO RUSH ON THIS, UH, SINCE IT WAS HURT, I DIDN'T WANT THIS TO DROP OFF SINCE IT WAS HEARD.COULD WE OPEN AND CONTINUE IT, UH, FOR ONE MONTH AND I YOU COULD BRING IT BACK NEXT MONTH? YEP.
YOU COULD CONTINUE THE DISCUSSION.
I JUST DIDN'T WANT IT TO DROP OFF SO WE CAN HEAR, JUST SHOW THE ITEM WAS HEARD AND TO RICHARD NEXT MONTH.
UH, WHERE I AM, I, I FEEL IT'S, UH, I AM SYMPATHETIC TO THIS ISSUE, RIGHT.
UH, HEATHER, AS YOU CORRECTLY PUT IT OUT, IT'S NOT, UH, UNIQUE TO MIAMI BEACH.
UM, THERE'S A LOT THAT'S GOING ON.
TAX AND ACCOUNTING SYSTEM, THE CHANGE OF OWNERSHIP FROM A LOT OF THESE COMMERCIAL SPACES FROM, UH, YOUR MOM AND POP THAT USED TO LIVE RIGHT HERE, UH, TO THESE NATIONAL REITS AND HEDGE FUNDS AND PRIVATE EQUITY FIRMS THAT HAVE THEIR OWN ACCOUNTING GIMMICKRY.
UM, AND, AND WHY WE'RE SEEING SOME OF THIS, UH, SIT VACANT.
SO I'M SYMPATHETIC TO THE ISSUE AND IT NEEDS TO BE RESOLVED.
I DON'T KNOW IF, UH, THE HEAVY HAND OF GOVERNMENT IS THE RIGHT WAY TO DO SO.
I THINK WE MIGHT BE ABLE TO THREAD THAT NEEDLE OIL BETTER OF IMPLEMENTING, I JUST SEE THIS KIND OF GOING INTO THE ABYSS, RIGHT? WE HAVE THIS REGISTRY AND WE DO A LOT OF WORK FOR ONE OR TWO MONTHS, AND THEN IT KIND OF JUST FALLS BY THE WAYSIDE AND IT JUST BECOMES ONE OF THOSE BUREAUCRATIC GOVERNMENT PROCESSES THAT, YOU KNOW, WORKS HERE AND THERE.
HOW IS, HOW WERE THE REGISTRATION FEES DETERMINED? IS, IS THERE A LEGAL CAP ON THESE? UH, IS, OR NO, NO, WITH THE, WITH THE OTHER CITIES, THEY, THEY JUST, IT WAS A CONSENSUS OF, OF WHAT THEY THOUGHT BASED ON THE, UM, THE BUDGET OF ACTUALLY THE ADMINISTRATIVE BUDGET OF, OF RUNNING THE PROGRAM.
AND I GUESS THEY BACKED OUT OF IT.
BUT SOME OF THE CITIES HAVE REALLY HIGH FEES SOMEWHERE LIKE TWO 50 AND SOMEWHERE LIKE 12, 1200, UH, UH, $1,250.
SO, AND, AND THAT'S, AND THAT'S WHERE I WAS GOING TO, BECAUSE, YOU KNOW, I DON'T THINK ANYONE WANTS TO MAKE THINGS MORE DIFFICULT FOR BUSINESSES.
AND AS YOU WELL DESCRIBED, YOU KNOW, YESTERDAY AT LAND USE, WE HAD A CONVERSATION ABOUT POP-UPS, UM, YOU KNOW, IN ESSENCE CUTTING RED TAPE TO HELP BUSINESSES COME INTO RETAIL AND FILL THAT RETAIL SPACE.
UH, BRINGING POSITIVE ACTIVATIONS INTO OUR AREAS AND HOPEFULLY ROLL OUT THAT RED CARPET SO THAT HOPEFULLY, YOU KNOW, THROUGH THAT POP-UP PERMIT, THEY CAN FINALLY, YOU KNOW, MAKE THAT LONG-TERM COMMITMENT TO, UH, TO, TO OUR CITY.
TIED TO THAT PROGRAM IS THE COMMERCIAL LEASE SUBSIDY PROGRAM THAT WE STARTED A FEW YEARS AGO THAT I THINK WE CAN GIVE UP TO EVERY YEAR UP TO $20,000 IN RENTAL ASSISTANCE, UH, TO PUSH OUT, UH, NONCONFORMING USES, NUISANCE USES OUT OF OUR COMMERCIAL DISTRICTS.
AND SO TO THE EXTENT THAT WE CREATE THIS PROGRAM, YOU KNOW, PERHAPS THIS PROGRAM CAN BE AN AVENUE THROUGH WHICH WE CAN FUND SOMETHING LIKE THE COMMERCIAL LEASE SUBSIDY PROGRAM.
SO THAT, YOU KNOW, AND THAT'S, AND THAT'S WHAT, THAT'S WHAT ULTIMATELY, UM, I LIKE.
AND WHAT MAYOR MINOR HAS, HAS BROUGHT FORWARD HERE, I THINK, IS, THIS IS MAYOR MINOR'S ITEM.
I THINK IT, IT'S ACTUALLY, IT'S KRISTEN'S NUMBER.
OH, IT HAS SPONSORED BY COMMISSIONER, BY MAYOR STEVEN MINOR.
AND THEN YOU HAVE A NUMBER OF CO-SPONSORS, UH, VICE MAYOR BOUGHT AND NEW COMMISSIONER AND
SO, YOU KNOW, I, I JUST SEE, YOU KNOW, I DON'T KNOW THAT $300 ANNUALLY IS GONNA GET SOMEONE TO, TO FILL THEIR SPACE.
AND I DON'T EVEN KNOW IF AFTER THREE YEARS, IF IT GOES UP TO $2,000
BUT IF WE START THE ANNUAL REGISTRATION MORE LIKE AT THE $2,000 RANGE, YOU KNOW, AND THOSE FUNDS ARE DEDICATED TO SOMETHING LIKE THE COMMERCIAL LEASE SUBSIDY PROGRAM THAT HELPS BRING IN QUALITY RETAIL, THAT'S A VERY DIFFERENT CONVERSATION TO ME.
'CAUSE THAT, THAT, THAT WAY, OKAY.
YOU ARE ACTUALLY ALSO HELPING BUSINESSES ALONG THE WAY.
QUALITY BUSINESS IS, I MEAN, WE HAVE A CHURRO PLACE FROM SPAIN THAT'S OPENING UP ON LINCOLN ROAD THAT'S COMING IN IN A PLACE WHERE WE ENGAGED IN UNDERCOVER INVESTIGATIONS AND WE'RE ABLE TO GET RID MM-HMM
OF, UH, OF A BUSINESS THAT WAS ENGAGED IN SELLING ILLEGAL SUBSTANCES.
UM, AND NOW WE'VE, WE'VE BEEN ABLE TO PUSH THAT OUT AND BRING IN POSITIVE ACTIVATION ON WASHINGTON AVENUE.
WE HAVE A BREWERY, A LOCAL BREWERY THAT'S GOING INTO, INTO A SPACE, YOU KNOW, AND SO WE HAVE THE OPPORTUNITY, UH, TO HELP SMALL BUSINESSES, UM, IF WE REALLY TAKE THE RIGHT APPROACH WITH THIS.
SO I DON'T LIKE THE IDEA NE I'M NOT NECESSARILY CRAZY ON ITS OWN, BUT IF WE TIE
[03:05:01]
IT TO THE COMMERCIAL LEASE SUBSIDY PROGRAM, IT COULD ACTUALLY END UP HELPING, UH, BUSINESSES AND LANDLORDS WHO ARE WILLING TO ACTIVATE.YOU KNOW, I, I, REAL QUICK, HEATHER, UM, I FEEL BAD BECAUSE WE DID HAVE, UH, TWO REPRESENTATIVES FROM TWO VARIOUS BIDS.
AND, UH, AT MY DIRECTION, UH, OUR TEAM COMMUNICATED, WE PROBABLY WOULDN'T BE HEARING THIS.
I THOUGHT WE COULD FIT IT IN MAYBE, YOU KNOW, VERY QUICKLY BEFORE ONE 30.
BUT OUT OF FAIRNESS AND RESPECTED THEM, THEY KIND OF CAME AND GAVE THEIR TIME AND WE TOLD THEM TO TAKE A HIKE.
UH, WHY DON'T WE CONTINUE THIS NEXT MONTH WHEN WE CAN HEAR THEIR INPUT AS WELL, AND MAYBE TO ASSIST, WE'LL, WE WILL, WE WILL BRING IT BACK, UH, FOR NEXT MONTH.
IT MAYBE, UH, ECONOMIC DEVELOPMENT CAN, UM, JUST, UH, MAYBE, UH, GET WITH THEM, UH, THE TWO BIDS AND SEE IF WE MAYBE RECOMMEND A, A TIME CERTAIN.
CAN I, IS THERE AN OPPORTUNITY BETWEEN NOW AND NEXT MONTH TO HAVE SOME REFINEMENT DONE? OR IF YOU OPEN IT AND CONTINUE IT, DOES IT NEED TO BE PRESENTED AGAIN THE SAME WAY AS IT IS CURRENTLY? I, I, I THINK THE COMMITTEE CAN, THE COMMITTEE HAS SOME TWEAKS OR RECOMMENDATIONS THAT ED CAN TAKE THAT, UH, COMMENT IN.
AND I, I, I, I AGREE WITH YOU, COMM, VICE MAYOR.
I THINK THAT WHAT COULD BE SHOWN IS THAT THERE'S NO PANACEA TO THIS ISSUE.
AND IT'S GOING TO TAKE, AS COMMISSIONER FERNANDEZ WAS SAYING, IT'S GONNA TAKE A NUMBER OF ELEMENTS THAT ARE GOING, THAT WE NEED TO ACTIVATE TO ADDRESS VACANT STOREFRONTS.
IT'S GONNA BE CLS, IT'S GONNA BE A NUMBER OF PROGRAMS THAT ARE, THAT WE NEED TO KIND OF PUT TOGETHER TO HAVE AS A KIND OF A PACKAGE FOR BUSINESSES TO SUPPORT THEM.
SO YES, WE CAN, WE CAN DEFINITELY MODIFY THIS.
SO THEN, AND I, AND I'LL JUST MAKE IT QUICK SO THAT WE CAN WRAP IT UP.
UM, I, I, MY INTENT IS NOT TO, UM, PUT ANOTHER ONEROUS BUSINESS EXPENSE ON A BUSINESS THAT IS TRYING TO GET OPEN OR IS IN THE PROCESS.
WHAT I'M MOST INTERESTED IN IS THE PEOPLE WHO'VE SAT ON PROPERTY FOR THREE OR FOUR GENERATIONS, OR CORPORATE LANDLORDS WHO FOR WHATEVER, WHAT WAS THE WORD YOU USED? TRICKERY, CHICANERY, GIMMICKRY, GIMMICKRY, UM, YOU KNOW, WHATEVER TAX ACCOUNTING LOOPHOLES THEY HAVE ARE PREFERRING TO KEEP IT OPEN AND TAKE THE LOSS.
SO WHAT I WOULD BE REALLY INTERESTED IN SEEING, BECAUSE YOU CAN STILL SELL YOUR PROPERTY LATER, UM, IF, IF THAT'S YOUR END GOAL, IF IT'S RENTED OUT NOW.
SO I, I'M MORE INTERESTED, AND I HAVE NO ISSUE WITH HAVING THE, THE PROCEEDS OF THIS PROJECT, OF THIS, UM, PROCESS GO TO SUPPLEMENTING THINGS LIKE THE, THE LEASE POPUPS, YOU KNOW, FUND WHATEVER.
BUT I'M MORE INTERESTED IN FOCUSING THIS PROCESS ON SORT OF THE BAD ACTORS WHO ARE, YOU KNOW, AND I KNOW IT'S A PROPERTY RIGHTS ISSUE, SO I DON'T KNOW HOW MUCH LATITUDE WE HAVE, BUT MAYBE IT'S SOMETHING IF YOU'RE OVER A CERTAIN SIZE, I MEAN, MAYBE WE CAN LIMIT IT, DO A LITTLE BIT OF RESEARCH AND FIGURE OUT, YOU KNOW, ARE MOST OF THE PEOPLE WHO ARE SITTING ON VACANT STOREFRONTS, UM, UH, FOR TAX EVASION REASONS OR WHATEVER DOING IT BECAUSE, UH, OR IS THERE A COMMONALITY OF THEIR SIZE OR, YOU KNOW, MAYBE THERE'S SOME COMMON ELEMENTS SO THAT WE KIND OF PROTECT THE PEOPLE WHO ARE DOING THEIR BEST TO GET THEIR, THEIR ACT TOGETHER AND GO AFTER THE PEOPLE WHO ARE MAKING A FINANCIAL DECISION TO NOT LEASE.
AND THEN ALSO THAT GIVES US THE ABILITY TO INCREASE THE, THE RATES THAT WE CHARGE FOR THIS, BECAUSE WE KNOW THEY CAN AFFORD IT.
IN, IN THE MEMO YOU'LL SEE, LIKE IN NEWARK, NEW JERSEY, THEY CHARGE, THEIR FEE IS BASED ON SQUARE FOOTAGE.
SO THE BIGGER THE PROPERTY, THE, THE MORE YOU HAVE TO PAY.
I'M NOT CONVINCED THAT THIS PROGRAM WILL ADDRESS WHAT YOU JUST MENTIONED, BECAUSE BIG CORPORATIONS AND PRIVATE, THEY'LL JUST PAY, THIS IS WHAT THE OTHER CITIES ARE SAYING.
THEY'LL JUST PAY THEY, WHATEVER YOU TELL THEM, THEY JUST PAY IT AND WRITE IT OFF, OR THEY DON'T PAY IT.
AT LEAST THAT'S WHAT WE'RE GETTING FROM THESE NINE CITIES THAT WE WELL, AND THAT'S THE CONVERSATION TO HAVE WITH PEOPLE.
BECAUSE IF THE INTENT IS LEGIT AND THE GOALS ARE LEGIT, BUT THIS MECHANISM, EXCUSE ME, DOESN'T GET US TO WHERE WE NEED TO BE, THEN WE NEED TO RETHINK, YOU KNOW, WE DON'T WANT ANYBODY'S WHEELS BEING SPUN WITHOUT GETTING TO AN OUTCOME.
SO MAYBE THIS ISN'T THE RIGHT MECHANISM TO GENERATE THE OUTCOME THAT WE WANT.
AND THERE IS, UH, IN ADDITION TO THE FEEDBACK THAT YOU GOT, THERE'S A FAIR AMOUNT OF CASE STUDY OUT THERE THAT, UM, WHILE IT SOUNDS GOOD IN THEORY, THIS HASN'T PROVIDED THE RESULTS IN A MULTITUDE OF PLACES THAT, UH, THAT IT'S INTENDED TO DO.
SO WITH THAT, LET'S, UH, LET, LET'S GET THE INPUT WHEN OUR BUSINESS COMMUNITY IS HERE.
I APOLOGIZE THAT, UH, THAT THEY SAT HERE AND, UH, WE DIDN'T THINK WE'D HEAR THE ITEM.
UM, BUT I THINK THIS WAS A, A GREAT MEETING.
UH, WE DIDN'T GET TO AS MANY ITEMS, BUT WE HAD A LOT OF VERY, UH, REALISTIC DISCUSSIONS.
UM, AND IT'S A BIG BOY AND GIRL MEETING.
IT'S NOT ALWAYS TO CONVEY, YOU KNOW, POSITIVE NEWS, BUT IT'S THE REALITY THAT WE'RE ALL LIVING
[03:10:01]
IN.SO STAFF, THANK YOU FOR ALL YOUR HARDWORKING YOUR TIME, UH, COLLEAGUES, FRIENDS, THANK YOU.
UH, YOU KNOW, FOR THE COLLABORATIVE EFFORT UP HERE.
AND NOBODY YELLED AT EACH OTHER.
AND TO, AND WE NEED TO WISH EACH OTHER A HAPPY NATIONAL MARGARITA DAY TOMORROW,
SO ARE WE AUR MEETING AURN? I THINK WE'RE AJOUR ADJOURN.