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GOOD MORNING, EVERYBODY.WELCOME TO THE SEPTEMBER FINANCE AND ECONOMIC RESILIENCY COMMITTEE MEETING.
I AM HERE WITH MY FRIENDS, MY COLLEAGUES, OUR CITY STAFF, OUR NEIGHBORS, UH, STAKEHOLDERS IN OUR COMMUNITY.
BEAUTIFUL FRIDAY HERE IN THE MOST BEAUTIFUL CITY IN THE WORLD.
UM, IT'S EASY TO GET BOGGED DOWN IN SOME OF, UH, LIFE'S DAILY, BACK AND FORTH, BUT WE ALL NEED TO ALWAYS TAKE A STEP BACK AND REMEMBER JUST HOW BLESSED WE ARE TO LIVE IN SUCH A MAGICAL, INCREDIBLE CITY WITH THE COMMUNITY THAT WE HAVE.
UM, SO THAT BEING SAID, UH, GOING TO TURN IT OVER TO OUR CITY ATTORNEY, UH, RICK DICO, MR. CFO.
IF YOU COULD MAKE SOME COMMENTS, THEN WE'RE GONNA GET TO THE PEOPLE'S BUSINESS.
TODAY'S MEETING OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE HAS BEEN SCHEDULED IN A HYBRID FORMAT WITH A QUORUM OF THE COMMITTEE PHYSICALLY PRESENT AND REMAINING MEMBERS, STAFF AND MEMBERS OF THE PUBLIC OF 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 THREE, 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.
AND THE INDIVIDUAL WISHING TO SPEAK ON THE ITEM MUST CLICK THE RAISE HAND ICON IF THEY ARE USING THE ZOOM APP, OR DIAL STAR NINE IF YOU ARE PARTICIPATING BY PHONE.
IF JUST A COUPLE OF ANNOUNCEMENTS, UH, THE FOLLOWING ITEMS HAVE BEEN DEFERRED.
UH, OB ONE AND OB SIX HAVE BEEN DEFERRED TO DECEMBER.
FERC, UH, MB FOUR, MB 14, MB 16 ARE JUST DEFERRED ITEMS. OB 15 AND 16 ARE LINKED.
IF HEARD, OB 24 AND 25 ARE LINKED, IF HEARD, AND OB 17, 19 AND 20, UH, WILL BE LINKED AS HEARD.
AND WE HAVE ONE TIME CERTAIN, UH, FIRST UP, 10 30 MB SEVEN ON THE FILLMORE THEATER.
I FEEL LIKE I CAN CALL THE TITLE.
NO, I, I THINK, UH, THE TEAM WOULD LIKE, UM, A LITTLE BIT MORE TIME JUST GIVEN THEY HAVE SOME PEOPLE DIALING IN FROM CALIFORNIA.
UH, SO WE'LL GIVE THEM A LITTLE TIME TO GET SETTLED.
UH, WE HAVE A LOT OF NEIGHBORS HERE, AND I'M HOPING THIS IS A QUICK ITEM FOR, UH, OB THREE.
UH, WE'VE HAD EXTENSIVE DISCUSSIONS.
I'M HOPING THIS IS JUST PUSHING IT ACROSS THE FINISH LINE.
UH, I WANT TO, OUR NEIGHBORS THAT ARE HERE, GET THEM OUT OF THE, UH, GET THEM OUT OF HERE.
NOT 'CAUSE WE DON'T WANT YOU HERE.
[OB 3. DISCUSS THE POSSIBILITY OF THE CITY ASSUMING CONTROL AND MANAGING OF THE SUNSET HARBOUR TOWERS, TOWNHOMES, AND YACHT CLUB PUMP STATION]
UH, ITEM OB THREE DISCUSSED THE POSSIBILITY, THE CITY ASSUMING CONTROL AND MANAGING THE SUNSET HARBORS, TOWERS, TOWN, HOMES, AND YACHT CLUB, PUMP STATION, OB THREE.WE'VE HAD A LOT OF DETAIL, A LOT OF BACK AND FORTH.
IS THIS YOUR FIRST, UH, FERC MEETING? YES, SIR.
SO YOU'RE GETTING THROWN INTO THE FIRE HERE.
THERE'S A LOT OF BACKSTORY WE'RE NOT GONNA GET INTO MM-HMM
UM, BUT TELL US HOW WE'RE GETTING ACROSS THE FINISH LINE HERE.
SO, THERE IS DEFINITELY A COST TO, ASSUMING THIS LIFT STATION.
LIFT STATION WAS DESIGNED NOT TO OUR MUNICIPAL STANDARDS, BUT TO A PRIVATE STANDARD.
SO IT WOULD'VE TO BE UPGRADED.
RIGHT NOW, THERE'S NO REDUNDANCY.
THERE IS A GRAVITY SYSTEM, WHICH WE DEFINITELY DON'T WANT TO ACQUIRE DUE TO ACCESS TO THE ACTUAL GRAVITY SYSTEM AND POTENTIAL CONDITION ISSUES WITH THE GRAVITY SYSTEM.
AS FAR AS THE LIFT STATION ITSELF, UM, THERE IS A SUBSTANTIAL COST TO ASSUMING IT A LITTLE OVER $400,000 INITIALLY, AND THEN AN ANNUAL MAINTENANCE COST.
WE HAVE A HIGHER MAINTENANCE THRESHOLD THAN IN THE PRIVATE SECTOR THAT, UH, IS AROUND $60,000 PER YEAR TO MAINTAIN THAT.
BUT THEN WE ALSO HAVE TO LOOK AT THE CAPITAL COST OF REPLACEMENT OR MAJOR UPGRADES EVERY 10 TO 15 YEARS.
SO THAT'S SOMETHING WE NEED TO LOOK AT IN OUR CAPITAL IMPROVEMENT PLAN AND AS IT RELATES TO OUR RATE STUDY AS WELL.
SO LET ME GO AHEAD AND TURN IT OVER.
SO, UH, AGAIN, MARK HALPER, UH, HALPER RODRIGUEZ ON BEHALF OF ALL THE SUNSET HARBOR COMMUNITIES ON THIS ONE.
UM, LOOK, WE SAT DOWN WITH THE CITY MULTIPLE TIMES NOW.
WE HAD A MEETING OF THE MINES, I THOUGHT, UH, WHERE WE WERE SUBSIDIZING THE COST.
UM, AND WE WERE THEN AGREEING TO I THINK ABOUT A 30,000 A YEAR, UH, UH, UH, SORT OF CONTRIBUTION FOR THREE YEARS.
IT APPEARED WE HAD AN AGREEMENT.
UM, JUST AS A BRIEF REMINDER, YOU KNOW, THIS IS, I THINK OUR THIRD TIME HERE MM-HMM
UM, ON, UM, BACK IN JULY, UH, I THINK THE CITY, THE CITY FIRST REQUESTED SOME ADDITIONAL TIME, AND I THINK THIS COMMITTEE ASKED THEM TO GO FIND, UM, DOCUMENTS THAT THEY SAID EXISTED THAT, UM, THAT, THAT, UH, UH, WHERE, WHERE WE WERE SOMEHOW, UH, THROUGH AN AGREEMENT FROM OUR DEVELOPER TO THE CITY
[00:05:01]
AGREEING TO, UH, MAINTAIN THIS THING, THAT, THAT THAT AGREEMENT DOESN'T EXIST.SO THEN WE CAME BACK THE LAST TIME AND THE CITY SAID, DESPITE SITTING DOWN WITH US A WEEK OR TWO PRIOR, WE NEED MORE TIME TO LOOK AT THE NUMBERS.
WE DON'T, THAT'S WHAT THEY SAID.
WE HAVE NO IDEA WHAT THE CITY IS DOING RIGHT NOW.
UM, WE, UH, THE CITY HAD A, AN ENGINEERING FIRM PUT TOGETHER ALL THE NUMBERS AND AN ANALYSIS.
WE THEN HIRED OUR OWN ENGINEERING FIRM.
WE SAID, WE WILL ABSORB THE COST.
WHAT WE DON'T WANT IS, AGAIN, AND I KNOW THIS IS KIND OF LIKE I'VE SAID IT EACH TIME, IS WE DON'T WANT TO RUN A PUBLIC UTILITY MM-HMM
AND IT'S, WE'RE ALIGNED WITH THAT.
I THINK THE LIABILITIES THAT WE'D BE SIGNING UP FOR, MAYBE NOT DIRECTLY TO US, BUT WHAT COULD GO WRONG AS A COMMUNITY, WE'RE STAKEHOLDERS AND, AND STEWARDS OF THE COMMUNITY.
WE, WE CAN'T ALLOW THAT TO HAPPEN.
SO WHERE'S THE OXYGEN BETWEEN US? IS IT IN THE ANNUAL OPERATING, UH, MAINTENANCE AGREEMENTS OR COSTS? I KNOW, I, I THINK IT'S IN THE ONGOING COST AND THE REPLACEMENT COST.
BUT YOU KNOW, I'M JUST GIVING YOU THE NUMBERS THAT WE'VE RECEIVED FROM HAZEN SAWYER.
THEY'VE DONE THE ANALYSIS ON THE LIFT STATION, AND WE'LL BASICALLY GO WHATEVER DIRECTION, UH, COMMISSION DESIRES THOUGH.
SO WE'RE, WE'RE TALKING ABOUT, WE HAVE MOST AN AGREEMENT ON MOST, HOWEVER, WE'RE SAYING IT'LL COST ABOUT $60,000 PER YEAR FOR THE CITY TO OPERATE THIS SUNSET HARBOR.
YOU HAVE OPERATING COSTS ABOUT $30,000 THAT YOU'D SUBSIDIZE AND ESSENTIALLY PAY.
UH, BUT WE HAVE SOME SORT OF DELTA THERE WHERE, UH, BECAUSE WE'RE THE GOVERNMENT, MY GOODNESS, IT JUST COSTS US MORE
WELL, WELL, YOU KNOW WHAT WE DID, WE DID ANALYZE WHAT THE HAING REPORT WAS.
SO WE AGREED TO THE, YOU KNOW, THE 200 OR 300 AND YOU GO OFF BID IN TERMS OF THAT, THE $60,000 HAVE FIVE PEOPLE LOOKING AT THE, AT THE LIFT STATION.
WE DON'T, YOU KNOW, YOU DON'T NEED FIVE, FIVE DAYS A WEEK, FIVE DAYS A WEEK,
SO YOU KNOW WHAT YOU DON'T NEED.
YOU DON'T, YOU'RE GONNA HAVE ALARMS AND STUFF THAT TELLS YOU, WHICH RIGHT NOW WE DO HAVE AN ALARM, BUT WE DON'T HAVE AN ALARM WHEN THE CITY RAISES THE, THE, THE, THE POOP.
JOHN, IS THERE A WAY TO GET US THE $30,000? I'D HAVE TO LOOK INTO THAT IN, IN MORE DETAIL.
WE ARE A PUBLIC UTILITY, AND WE HAVE A LOT OF RESPONSIBILITY TO KEEP THE ENVIRONMENT CLEAN.
NOT TO HAVE SANITARY SEWER OVERFLOWS.
THIS IS A COMPLETELY DIFFERENT LIFT STATION THAN WHAT WE ACTUALLY PUT IN PLACE.
SO WE WOULD HAVE TO UPGRADE THIS TO MUNICIPAL STANDARDS, AND WE HAVE A MUCH GREATER RESPONSIBILITY AS A MUNICIPALITY TO ENSURE THE SAFETY OF THE COMMUNITY.
SO, AND WE'RE GONNA PAY FOR THAT.
AND SO, BUT I HAVE A QUESTION ON THAT, BECAUSE HOW MANY, HOW MANY RESIDENTS ARE IMPACTED BY THIS SEWER PUMP STATION? UH, 2000, I BELIEVE 2000 RESIDENTS IMPACTED BY THE SOURCE, UH, STATION.
AND YOU'RE TELLING ME THAT THE CITY NEEDS TO DO MORE INSPECTIONS BECAUSE OF OUR RESPONSIBILITY WITH THE ENVIRONMENT? CORRECT.
AND THAT'S WHY THERE'S THE ADDED COST.
THAT MEANS THAT RIGHT NOW, RIGHT NOW, THE NECESSARY INSPECTIONS TO SECURE THE ENVIRONMENT IS NOT BEING DONE.
'CAUSE WE'RE ASKING AN ENTITY THAT SHOULDN'T BE MANAGING A PUBLIC UTILITY TO MANAGE A PUBLIC UTILITY.
THAT'S NOT THEIR RESPONSIBILITY.
AND WITH EVERYTHING THAT WE HAVE GOING ON WITH WATER QUALITY, I THINK WE NEED TO MAKE SURE THAT THE PROPER INVESTMENTS AND THE PROPER INSPECTIONS ARE TAKING PLACE.
AND DOESN'T, THAT'S NOT THE RESPONSIBILITY OF A CONDO ASSOCIATION.
HOW MUCH ARE YOU PAYING, UH, NOW ON A MONTHLY BASIS FOR THE MAINTENANCE OF $150 A MONTH? $150 A MONTH? A MONTH, WHICH IS ABOUT I $1,500 A YEAR.
AND, AND WE'VE BEEN DOING THIS FOR 15 YEARS, AND THEN, AND IT'S GONNA COST THE CITY WHAT YOU'RE DOING FOR $1,500, IT'S GONNA COST THE CITY $60,000.
THIS IS WHAT THAT, THAT'S THE ESTIMATE THAT THEY CAME TO ME.
THE, THE PROBLEM IS US WITH OUR COSTS, AND WE HAVE TO GO BACK AND FIGURE THIS OUT BECAUSE YES, IT, NO CONDOMINIUM SHOULD BE RUNNING A PRIVATE UTILITY FOR 2000 RESIDENTS.
AND THIS COMMISSION HAS ALREADY TAKEN A POSITION IN THE PAST THAT THIS IS SOMETHING THAT SHOULD BE TAKEN OVER BY THE CITY.
UM, SO THE CONCERN IS HOW CAN WE LOWER THESE COSTS? MM-HMM
SO THAT WE HANDLED THIS PUMP STATION RESPONSIBLY UNDER THE OPERATION BY THE CITY.
WE THINK $30,000 WHEN OUR ENGINEER LOOKED AT, IN WHAT WE PRAY, AND WE LOOKED AT THE COST LIKE, THIS IS YOUR DETAILED COST THAT IS INSIDE OF THE REPORT.
THAT'S HOW YOU GOT TO THE 60,000.
SO WE SAID, DO YOU NEED, DO YOU NEED THAT MANY PEOPLE PER, PER DAY OR WEEK? IT WAS LIKE A LITTLE BIT RIDICULOUS.
SO WE SAID, YOU KNOW, WE'LL GIVE YOU 30,000 FOR THREE YEARS IN ORDER TO GET TO THE POINT, AND YOU RUN IT SMOOTHLY.
SO THIS WAY THERE'S NO PROBLEM WITH IT.
SO, YOU KNOW, WE'VE BEEN DOING IT FOR 15, 20 YEARS, 28 YEARS, YOU KNOW, AND, AND IT'S GETTING WORSE AND WORSE AS TIME GOES ON, AS THINGS HAPPEN.
[00:10:01]
WE'RE AFRAID THAT SOMETHING GONNA HAPPEN.CLEARLY WE WANNA TAKE IT OVER.
WE JUST WANT TO, YOU KNOW, FIGURE OUT HOW WE'RE GOING TO FUND THIS COMMISSIONER.
BUT YEAH, I, LOOK, I WE ARE ALL, UNLIKE IN YEARS PAST OR IN SITUATIONS PAST, I THINK THIS, UM, COMMISSION, THIS ADMINISTRATION IS MORE FOCUSED ON THAN EVER ON BEING FISCALLY RESPONSIBLE, WHICH IS A GOOD THING.
I ALSO WANT TO, UM, COUNTER THE NARRATIVE THAT SOME OF MY COLLEAGUES, NOT THOSE ON THE DAY AS TODAY, BUT SOME OF MY COLLEAGUES ARE PUTTING OUT THERE, THAT WE ARE ABOUT TO GO UNDERWATER.
NOT POOR CHOICE OF WORDS, NOT NOTHING TO DO WITH WATER, BUT FINANCIALLY UNDERWATER.
THAT WE ARE, THAT OUR BUDGET IS, UH, YOU KNOW, WE'RE MOMENTS AWAY FROM CAPSIZING, THE SHIP OF STATE, THAT WE HAVE NO RESERVES, THAT WE HAVE NO DISCRETION IN HOW WE SPEND OUR MONEY.
THAT ALL OF OUR MONEY NEEDS TO BE SPENT ON ONE THING OR ANOTHER.
WE CANNOT FIND WAYS TO DO LOTS OF DIFFERENT THINGS.
AND I'M SAYING THIS VERY PARTICULARLY, NOT JUST TO THE PEOPLE IN THIS ROOM ON THIS ITEM, BUT FOR THE MANY PEOPLE WHO ARE GOING TO REFER TO THESE DOCUMENTS LATER, I AM TELLING YOU UNEQUIVOCALLY, IT IS A FALSE NARRATIVE.
ARE WE BEING PRUDENT BY PAYING ATTENTION TO THE FACT THAT TOURISTS AREN'T COMING HERE THE WAY THEY USED TO FOR REASONS OUTSIDE OF OUR CONTROL? WE ARE, ARE WE PAYING ATTENTION TO THE FACT THAT WE HAVE THINGS IN OUR CITY THAT AREN'T ATTRACTING RESIDENTS THE WAY THEY USED TO? AND WE'RE TRYING TO FIX THAT? WE ARE, ARE WE TAKING, TAKING ACCOUNT THAT, UM, HOUSING COSTS AND TRAFFIC AND ALL THESE THINGS ARE REALLY COMPLICATED AND MAKING IT HARD TO BE IN THE CITY? WE ARE.
IS THE CITY ABOUT TO GO BANKRUPT LIKE DETROIT IN THE EIGHTIES? WE ARE NOT.
AND FOR PEOPLE TO, TO BE SPEWING THAT RHETORIC TO MAKE POINTS IS ABSURD.
AND THE REASON I'M OPENING UP WITH THIS PREAMBLE IS BECAUSE WE ARE HAVING A SPAT ABOUT A RELATIVELY SMALL AMOUNT OF MONEY.
IT'S NOT NOTHING, AND I RESPECT THAT, BUT THE GREATER COST OF NOT MAKING SURE THAT THIS PUMP STATION WORKS PROPERLY, ESPECIALLY BECAUSE IT IS LITERALLY ON THE EDGE OF THE BAY.
AND WE ARE SPENDING CLOSE TO $20 MILLION TO TRY TO FIX THE WATER IN PARKVIEW ISLAND, WHICH IS TOXIC AT THE MOMENT, AND HAS BEEN FOR WHO KNOWS HOW LONG, BUT AT LEAST UNTIL SINCE 2020.
AND TO SAY THAT WE ARE NOT GOING TO MOVE FORWARD IN THE MOST RESPONSIBLE WAY POSSIBLE.
WHETHER THAT MEANS THAT WE END UP SPENDING A LITTLE BIT MORE ON THE CITY SIDE, OR WE FIGURE IT OUT, WE WILL MAKE SURE THAT WE HAVE THE RIGHT STAFFING LEVELS.
WE WILL MAKE SURE THAT WE HAVE THE CORRECT, UM, SAFEGUARDS PUT INTO PLACE THAT THAT WATER IS TREATED THE BEST WAY POSSIBLE.
WE WILL UPGRADE THE PUMPS, WE WILL FIGURE OUT HOW TO GET IT PAID.
BECAUSE YOU KNOW, WHAT'S GONNA BE MORE EXPENSIVE THAN THAT IS TRYING TO CLEAN UP THE TOXIC WASTE IN BISQUE BAY, THE WAY WE ARE IN PARKVIEW ISLAND.
SO THIS IS NOT DIRECTED AT MY COLLEAGUES HERE OR YOU GUYS STANDING AT THE DAIS.
THIS IS FOR THE GREATER CONVERSATION BECAUSE THE NARRATIVE IS OUT THERE, AND IT IS TO BE POLITE, A LOAD OF NONSENSE.
AND WELL, THAT WAS A VERY ROBUST WAY OF SAYING WE'RE GONNA MOVE THIS FORWARD.
JUST, AND JUST TO KIND OF FOLLOW UP ON NO NEED.
HOW DO WE GET IT PAST THE, YEAH, SO JOHN, I THINK WHAT WE'RE, WHAT I'M LOOKING AT HERE, I WANT TO GIVE DIRECTION TO MOVE THIS FORWARD, OKAY.
TO THE FULL COMMISSION WHERE WE'RE GOING TO TAKE THIS OVER.
I ASK YOU TO GO BACK REALLY FINE TUNE THE ANALYSIS TO SEE WHAT WE CAN DO, ESPECIALLY ON THE ONGOING OPERATING MAINTENANCE TO GET THOSE COSTS MORE IN LINE OR CONGRUENT WITH WHERE SUNSET HARBOR IS.
BUT RECOGNIZING PERHAPS WE NEED TO DO MORE BECAUSE, AND IT'S A GREAT EXAMPLE OF WHY WE NEED TO TAKE IT OVER IS BECAUSE THEY'RE NOT EXPERTS AT DOING THIS, BUT WORK WITH THE NEIGHBORHOOD, FIND OUT WHAT THEY'VE BEEN DOING, UM, SEE WHERE WE'RE ABLE TO, UH, BE MORE PRUDENT TO KIND OF GET IN LINE WITH THEM.
UNDERSTAND WE'RE PROBABLY NOT GONNA GET TO THEIR NUMBER, BUT LET'S SEE IF WE COULD DO A BETTER JOB OF BRIDGING THAT DELTA.
AND WE GIVE THEM ANY EASEMENT THAT THEY NEED, WHATEVER EASEMENT THAT REQUIRES, WE'LL GIVE IT TO YOU, OR WE'LL OPEN TO THAT.
MY, MY ONLY QUESTION IS, THIS IS SIMILAR TO HOW IT WAS LEFT THE LAST TIME, AND MY FEAR IS THAT WE'RE GONNA BE BACK HERE IN FORECAST, BUT WE'RE GONNA MOVE INTO THE FULL COMMISSION.
AND IF WE CAN'T BRIDGE THAT DELTA, WE CAN'T BRIDGE THE DELTA, WE'RE GONNA FIND A WAY TO, UH, OFFSET THAT $30,000.
WE'RE WE'RE ACTUALLY DOING, UH, WE'RE GONNA DO AN ANALYSIS OF WAYS WHERE WE CAN CUT FRIVOLOUS COSTS, UH, IN THE COMING DAYS.
SO I'M CONFIDENT THAT, UH, LIKE COMMISSIONER BOT SAID, WE ARE BEING VERY PRUDENT WITH OUR TAXPAYER MONEY.
BUT THIS IS, UH, WE'D BE PENNY WISE, POUND FOOLISH TO, UH, LEAVE THIS IN YOUR HANDS DESPITE THE BEST EFFORTS THAT YOU'VE DONE OVER THE YEARS.
SO WE'RE GONNA MOVE THIS TO THE FULL COMMISSION.
MR. UH, CFO, UH, THANK YOU CHAIR.
I THINK IN HEARING THE DISCUSSION, THERE'S OBVIOUSLY AN INTEREST IN IT BACK TO COMMISSION.
AND I THINK HEARING DISCUSSION WAS THAT THE ASSOCIATION WAS COMFORTABLE COVERING THE INITIAL UPGRADE COST.
[00:15:01]
WE'LL LEAVE IT MAYBE AS A, TO BE DETERMINED DISCUSSION ON THE ANNUAL CONTRIBUTION.BUT IF THAT'S CORRECT, I THINK THIS WOULD BE, I BELIEVE THE MOTION WILL BE TO RETURN TO COMMISSION, THE FAVORABLE RECOMMENDATION TO DIRECT THE ADMINISTRATION AND NEGOTIATE AN AGREEMENT WITH SUNSET HARBOR CONDO ASSOCIATION, SHIFT RESPONSIBILITY FOR OPERATING, MAINTAINING, UPGRADING, AND RENEWAL AND REPLACING OF THE SEWER PUMP STATION, UH, WITH UPGRADES TO BE COVERED BY THE ASSOCIATION AND THE ANNUAL CONTRIBUTION, UH, FOR OPERATIONS AND MAINTENANCE TO BE DETERMINED.
UH, SO WE'D HAVE TO HAVE SOMEONE MAKE THAT MOTION.
THANK YOU ALL FOR YOUR EFFORTS ON THIS.
LET'S HEAR FROM, UH, OUR ECONOMIC DEVELOPMENT, UH, DEPARTMENT.
AND THEN ALSO LEE WOULD WEIGH THAT INTO, UH, NB 11.
UH, STEVEN PERHAPS BE A LITTLE CONCISE WITH, UH, 24 BECAUSE, UH, THAT'LL KIND OF DOVETAIL INTO OUR CONVERSATION WITH MB 11.
[OB 24. ECONOMIC DEVELOPMENT DEPARTMENT UPDATE: STEPS TAKEN TO IMPROVE BUSINESS RETENTION AND ATTRACT NEW BUSINESS]
YOU.I'LL LET CALL OB 24 AND 25 ARE LINKED, UH, SIMILAR ITEMS. SO OB 24 IS ECONOMIC DEVELOPMENT DEPARTMENT UPDATE STEPS TAKEN TO IMPROVE BUSINESS RETENTION AND ATTRACT BUSINESSES.
AND OB 25 HAS DISCUSSED POSSIBLE ECONOMIC INCENTIVES TO ATTRACT MORE BUSINESSES TO THE CITY AND EXPAND EXISTING PROGRAMS. OB 24 OB 25.
UH, GOOD MORNING CHAIR AND COMMISSION.
UM, JUST, UH, STEVEN ANTHONY, ECONOMIC DEVELOPMENT DIRECTOR.
UM, JUST REALLY WANTED TO GIVE A, A QUICK UPDATE.
I KNOW WE DO THIS ON A, ON A QUARTERLY, QUARTERLY BASIS.
WE GAVE A A MOST RECENT UPDATE FOR, FOR ECONOMIC DEVELOPMENT.
UH, THERE'S A NUMBER OF DIFFERENT THINGS.
ECONOMIC DEVELOPMENT IS ALWAYS GONNA STAY VERY FOCUSED AROUND, UM, COMMITTED TO POSITIONING MIAMI BEACH AS A HUB FOR INNOVATION, CULTURE, AND BUSINESS.
UM, THERE'S A NUMBER OF DIFFERENT THINGS THAT WE'VE DONE HERE OVER THE, THE LAST, UH, THE MOST RISK, UH, RECENT FISCAL YEAR, UM, THAT'S REALLY FOCUSED AND HONED IN ON, ON THOSE THINGS.
AND SO YOU THINK ABOUT THE NUMBER OF, UH, THE, THE WAY THAT WE SUPPORT OUR BUSINESS IMPROVEMENT DISTRICTS, UM, THE WAY THAT WE CONTINUE WHERE WE STAFF AS A LIAISON TO THE, THE MAYOR'S, UH, 41ST STREET, UH, RIBBON RIBBON COMMITTEE.
UM, THERE ARE A NUMBER OF DIFFERENT, UH, BUSINESS SUPPORT PROGRAMS THAT WE'VE CONTINUED TO, TO ADVOCATE FOR AND AND SUPPORT.
MOST RECENTLY, UH, 2020 APPLICANTS RECEIVED $5,000 GRANTS, UM, OUT OF, OUT OF 40 APPLICATIONS.
AND SO THAT WAS A, A PROGRAM THAT WAS, THAT WAS VERY SUCCESSFUL.
A NUMBER OF BUSINESSES RECEIVED, UM, RECEIVED THE FUNDING THAT THAT'S NEEDED TO HELP THEM BE ABLE TO MOVE FORWARD, UM, AND, AND THRIVE IN THIS CURRENT ENVIRONMENT.
AND SO THAT WAS REALLY, REALLY BENEFICIAL.
UM, OUR COMMERCIALLY SUBSIDY PROGRAM IS, IS CERTAINLY ONE OF THOSE THAT IS CONTINUALLY, UM, DOING, DOING REALLY WELL.
AND, AND THERE'S A NUMBER OF APPLICATIONS THAT ARE, THAT ARE COMING THROUGH THERE.
UM, THAT, OF COURSE, THE NORTH BEACH, CRA, UH, WHICH IS, IS CERTAINLY UNDER THE PURVIEW OF ECONOMIC DEVELOPMENT.
AND WE'RE CONTINUALLY REFINING WAYS IN WHICH WE CAN, WE CAN REALLY FOCUS AND HONE IN ON THE THINGS THAT ARE GOING TO MOVE ECONOMIC DEVELOPMENT FORWARD.
UM, SO, WHICH IS REALLY IMPORTANT, I MADE SURE THAT WE ACTUALLY MADE SURE TO ALLOCATE TOWARDS MORE ATTAINABLE HOUSING, WORKFORCE HOUSING, UM, MAKING SURE THAT THERE'S A GREATER PERCENTAGE THAT'S ALLOCATED TOWARDS THAT.
MAKING SURE THAT WE ALSO HAVE A GREATER PERCENTAGE THAT'S ALLOCATED TOWARDS SMALL BUSINESS DEVELOPMENT.
AND STEVEN, LET, LET ME ASK YOU A QUESTION, AND I APPRECIATE EVERYTHING THAT YOU'VE DONE.
UM, ARE YOU GETTING INVOLVED IN THE REHASHING OF THE PERMITTING PROCESS? BECAUSE THAT IS, THAT IS A ECONOMIC DEVELOPMENT ITEM AS WELL.
SO I HOPE THAT YOU'RE WORKING HAND IN HAND WITH VINCE BECAUSE YOU ESSENTIALLY HAVE TO SERVE AS SOMEBODY THAT'S PUSHING THAT FORWARD.
UH, 'CAUSE THAT IS, YOU KNOW, UM, A BARRIER AT TIMES TO ECONOMIC DEVELOPMENT.
SO WE DON'T NEED TO GET INTO EXACTLY WHAT YOU'RE DOING RIGHT HERE TODAY, BUT I JUST WANNA ASSURE THAT YOU'RE ACTUALLY, UH, IN LINE WORKING ON THIS PROCESS.
AND THAT'S A REALLY GREAT POINT, CHAIR.
AND, AND VINCE AND I ACTUALLY HAD A SIT DOWN CONVERSATION LITERALLY LESS THAN A, A MONTH AGO.
UM, AND ACTUALLY HAD AN OP OPPORTUNITY TO TALK ABOUT SOME OF THE WORK THAT'S HAPPENING WITHIN BUILDING.
WE ALSO RAISED THE FLAG AND, AND WE DID A BUSINESS CONCIERGE AND LICENSING EVENT THAT JUST HAPPENED IN LAST MONTH.
YOU, YOU KNOW WHAT, VINCE, GIVE ME 10 MINUTES AND WE'RE GONNA ACTUALLY SEGUE INTO NB 17 AND 18 AND WE'LL FOLLOW UP ON THIS DISCUSSION.
SO STEVEN, WHY DON'T WE KICK INTO, UH, NB 11, UM, AND THEN WE WILL DOVETAIL THAT INTO 17 AND 18.
SO WITH THE, THE OTHER ASPECT OF, OF WHAT WE'RE, WHAT WE'RE LOOKING IS, UH, THE APPLICATION FOR, FOR PLAYBOY ENTERPRISES.
UM, SO WE ARE OR CERTAINLY RECOMMENDING THIS AS WE TALKED ABOUT ECONOMIC DEVELOPMENT AND HOW TO MOVE BUSINESS FORWARD, UM, AND HOW TO ATTRACT THE, THE, THE TOP OF THE LINE TYPE OF COMPANIES INTO, UM, INTO MIAMI BEACH.
UH, SPECIFICALLY WHAT WE'VE BEEN WORKING ON RECENTLY IS, IS AN OPPORTUNITY.
AND THROUGH YOUR YOUR DIRECTION CHAIR, UH, WE WERE, WE, YOU, THAT FORESIGHT THAT YOU AND THE COMMISSION PUT FORWARD,
[00:20:01]
UM, MONTHS AGO, UH, TO ACTUALLY LOOK TO AND SAY, HOW DO WE AND TRACK THESE TYPES OF BUSINESSES THAT CAN BE REALLY GLOBAL STANDARDS FOR, FOR MIAMI BEACH.AND SO BEING ABLE TO HAVE A TOOL THAT ALLOWS US TO BE ABLE TO DO THAT AND INCREASE THE, THE CAP ON ON THAT TOOL, UM, THAT HAPPENED MONTHS AGO THROUGH THIS COMMISSION BACK IN MAY.
AND SO THAT WAS REALLY HELPFUL.
ONE, IT HELPED A COMPANY LIKE PLAYBOY, UH, BE ABLE TO RECOGNIZE WHAT MIAMI BEACH IS DOING, HOW BUSINESS PRO BUSINESS FRIENDLY THAT WE ARE.
UM, THERE ARE A NUMBER OF DIFFERENT THINGS AND SINCE THAT POINT, THERE'S ACTUALLY BEEN A NUMBER OF APPLICATIONS THAT HAVE COME THROUGH, UH, INQUIRIES FROM A NUMBER OF DIFFERENT TYPES OF COMPANIES, HEALTHCARE COMPANIES, FINTECH COMPANIES THAT ARE ACTUALLY SAYING, YOU KNOW WHAT, MIAMI BEACH LOOKS LIKE THE PLACE THAT WE WANT TO LOCATE OUR BUSINESS.
AND SO THAT'S REALLY BEEN HELPFUL.
AND SO WITH PLAYBOY, WE'RE, WE'RE CERTAINLY RECOMMENDING, UM, TO MOVE THIS, UH, APPLICATION FORWARD, UH, FOR THE, FOR THE JOB CREATION INCENTIVE PROGRAM.
AND, UM, JUST A, JUST A QUICK NOTE IN MAKING SURE THAT FOLKS UNDERSTAND THAT THIS PROGRAM IS A PERFORMANCE-BASED PROGRAM.
SO FOLKS HAVE TO ACTUALLY PROVIDE THE JOBS THAT THEY SAY THEY'RE GOING TO PROVIDE, RIGHT? AND IT'S AN ANNUAL, ANNUAL ON AN ANNUAL BASIS.
SO THEY MOVE IN, WE CHECK AND VERIFY EVERYTHING THAT FOLLOWING YEAR, AND THAT'S WHAT ALLOWS FOR FOLKS TO ACTUALLY RECEIVE, UH, THE INCENTIVE FOR AWARD.
SO I JUST WANNA MAKE SURE THAT THAT POINT IS, IS CLEAR THAT IT'S, THAT IT'S ALWAYS GONNA BE PERFORMANCE BASED FOR COMPANIES.
SO IT'S NOT AN AUTOMATIC, UH, AUTOMATIC INCENTIVE THAT'S RECEIVED.
AND, AND I APPRECIATE THAT POINT.
'CAUSE I THINK THERE WERE SOME, UH, MISLEADING ARTICLES OUT THERE SAYING WE'RE JUST, UH, AWARDING $800,000.
THAT IS ABSOLUTELY NOT THE CASE.
IT'S ON A YEAR BY YEAR ANNUAL BASIS, OVER FOUR YEARS.
IT COULD BE UP TO THAT AMOUNT.
UH, BUT LIKE YOU SAID, IT IS ONLY IF THEY HIT THOSE JOB HURDLES THAT ARE CLEARLY MAPPED OUT AND DEFINED.
UH, SEVERAL MONTHS AGO WE PASSED NEW LEGISLATION IN HOPES THAT WE COULD PUT SOMETHING FORWARD TO ATTRACT NEW BUSINESSES.
AND THAT WORKED EXACTLY AS IT WAS INTENDED.
AND EVEN MORE SO, UM, WHAT WE'RE LOOKING AT HERE, THIS ISN'T JUST ABOUT ONE APPLICATION, RIGHT? THIS ONE APPLICATION YES.
IS GOING TO BRING UPWARDS OF OVER A HUNDRED TO 150 WHITE COLLAR PROFESSIONAL JOBS TO AN AREA OF OUR CITY THAT WE NEED IT THE MOST TO LINCOLN ROAD THAT WE ALL LOOK TO AND SAY, HOW CAN WE REVITALIZE THIS? HOW CAN WE RESTORE THIS? WHAT THIS DOES, THIS PROVIDES DAYTIME FOOT TRAFFIC THAT IS GOING TO HELP SUPPORT THE RETAILERS.
SO JUST IN THIS PAYROLL LOAN EQUATES TO WHERE THEIR ANNUAL WAGES ARE AT $175,000, THEIR ANNUAL WAGES.
THEY'RE NOT BRINGING THEIR WHOLE TEAM FROM LA THEY'RE HIRING MIAMI BEACH RESIDENTS.
IF YOU GO ON LINKEDIN RIGHT NOW, THEIR COMPANY IS ADVERTISING IN MIAMI BEACH FOR MIAMI BEACH RESIDENTS, THEIR CHIEF CONTENT OFFICER FOR 300 TO $400,000 PER YEAR.
RIGHT? THAT IS A JOB THAT WILL GO TO A MIAMI BEACH RESIDENT.
WHEN WE GOT ELECTED AND WE RAN TWO YEARS AGO, MIAMI BEACH WAS AT A CROSSROADS, RIGHT? OUR, OUR CITY IN MANY WAYS WAS BEING OVERTAKEN BY THE ANYTHING GOES PARTY MENTALITY.
AND THAT'S WHY WE RAN, RIGHT? AND TWO YEARS AGO IN MARCH, CNN BROADCAST FOR OCEAN DRIVE, WHEN TWO PEOPLE WERE SHOT AND EXECUTED ON OCEAN DRIVE THIS PAST MARCH, CNN DIDN'T BROADCAST CNBC BROADCAST IN MARCH WHEN WE HAD A FINANCE CONFERENCE.
AND NOW WE'RE FIGURING OUT WHAT IS FILLING THAT VACUUM, WHAT IS FILLING THAT VOID.
AND THAT'S CREATING AN ECONOMY IN MIAMI BEACH FOR EVERYBODY WHERE EVERYBODY COULD BE PROSPEROUS.
AND THIS SOLVES SO MANY DIFFERENT ISSUES NOW THAT WE'RE BRINGING REAL JOBS FOR REAL MIAMI BEACH RESIDENTS TO BUILD A REAL ECONOMY.
NOW, NOT EVERY RESIDENT HAS TO DRIVE OFF MIAMI BEACH TO GO TO WORK TO MAKE A DIGNIFIED LIVING.
SO THAT'S GONNA HELP WITH OUR TRAFFIC, RIGHT? THAT ACTIVITY, THIS OFFICE SPACE, WHICH IS ON CITY OWNED LAND, RIGHT? CITY OWNED LAND, THIS COMPANY'S PUTTING $5 MILLION OF CAPITAL INVESTMENTS INTO THAT BUILDING AS PART OF THIS PROJECT.
IT'S GOING TO BRING A HUNDRED PEOPLE EVERY SINGLE DAY, EVERY SINGLE DAY THAT ARE GOING TO WALK OUT ON LINCOLN ROAD AND THE SURROUNDING AREAS AND BUY LUNCH AND BUY COFFEE AND GO TO HAPPY HOUR AND, AND DO ERRANDS AND DO ERRANDS.
AND, AND THAT IS HOW YOU ATTRACT.
THEY'RE NOT GOING TO GO TO CHEESECAKE FACTORY, RIGHT? THEY'RE GOING TO GO TO OUR MOM AND POP BUSINESSES, RIGHT? THOSE ARE THE TYPES OF PEOPLE THAT DAYTIME RETAIL ACTIVITY THAT ARE GOING TO HELP RESTORE AND REVITALIZE OUR SMALL MOM AND POP BUSINESSES.
AND YOU HIT ON A POINT THAT I REALLY DIDN'T APPRECIATE, RIGHT? I KNEW THIS WOULD BE A BIG ANNOUNCEMENT.
[00:25:01]
WOULD BE, YOU KNOW, SOME, OH MAN, WHAT THIS COMPANY I SPOKE WITH OUR MARKETING TEAM, THE NEWS OF THIS STORY GOT OVER 2.1 BILLION IMPRESSIONS WORLDWIDE, 2.1 BILLION.IT WAS IN THE USA TODAY ON CBS NEWS, ON NBC NEWS.
AND I'LL HAVE A MARKETING TEAM CONFIRM IT IF SHE WOULD LIKE, BUT OVERWHELMINGLY, OVERWHELMINGLY ALL POSITIVE SPEAKING HOW MIAMI BEACH IS A BUSINESS FRIENDLY PLACE THAT WE'RE OPEN FOR BUSINESS.
AND IT WASN'T FOCUSED ON THE PARTY MENTALITY OR THINGS LIKE THAT, BUT ABOUT BUILDING A REAL ECONOMY.
AND JUST SINCE THEN, I HAVE GOTTEN INQUIRIES.
ME, I'M NOT SOME COMMERCIAL BROKER, I'M NOT TAKING FEES, I'M NOT, PEOPLE JUST SAW WHAT THIS DID.
A VENTURE CAPITAL FIRM, THE CEO AND FOUNDER REACHED OUT TO ME AND GOES, OH MY GOSH, I NEVER CONSIDERED MIAMI BEACH.
AND GUESS WHAT, WITHIN THE NEXT TWO WEEKS, THEY'RE GOING TO BE SIGNING AN OFFICE EITHER IN SUNSET HARBOR OR LINCOLN ROAD TO OPEN UP A MIAMI OFFICE, A MIAMI BEACH OFFICE, THE THINGS THEY'RE INVESTING IN, SPACE ROBOTICS, QUANTUM COMPUTING, AI, THOSE ARE 15 VENTURE CAPITAL JOBS.
THEY USED TO BE RESERVED FOR NEW YORK CITY AND SILICON VALLEY.
AND AGAIN, THEY'RE NOT BRINGING TEAMS, THEY'RE BUILDING 'EM OUT HERE.
JUST AT THE END OF LAST WEEK, A HIGH-END MEDICAL SPA REACHED OUT TO ME AND GOES, THIS IS INCREDIBLE WHAT'S HAPPENING ON LINCOLN ROAD.
THEY ACTUALLY SIGNED A LEASE THIS WEEK TO OPEN UP A HIGH-END MEDICAL SPA ON LINCOLN ROAD.
THERE WAS AN ARTICLE THIS WEEKEND, AND THE GENTLEMAN IN THIS BUILDING, THE MIAMI OFFICE, REACHED OUT TO ME FROM, I DON'T WANNA GET THEIR NAME WRONG, NISO, A CANADIAN TECH MARKETING FIRM THAT GOES, HE WROTE ME ON INSTAGRAM ACTUALLY.
AND HE GOES, CONGRATULATIONS ON THIS DEAL.
THAT'S A GENERATIONAL GET THAT'S GOING TO CHANGE MIAMI BEACH.
WE'RE SO HAPPY TO NOW BUILDING OUT OUR OFFICE HERE IN MIAMI BEACH, A CANADIAN TECH AND MARKETING COMPANY, NOW COMING TO WASHINGTON AVENUE.
WE ARE ON THE CUSP OF, WE LAID THE GROUNDWORK WITH PUBLIC SAFETY AND REVITALIZING AN ARTS AND CULTURE, AND NOW WE'RE CREATING AN ECONOMY WHERE OUR MIAMI BEACH RESIDENTS CAN THRIVE.
SO I'M SO PROUD OF THIS BECAUSE IT'S NOT JUST, I'M NOT PROUD OF IT FOR ME, I'M PROUD OF IT FOR OUR CITY, RIGHT? IT WASN'T ME.
IT WAS, IT WAS OUR CITY THAT HAS BECOME ONE OF THE MOST ATTRACTIVE PLACES IN THE WORLD TO LIVE, TO WORK, TO RAISE A FAMILY, AND NOW TO START A BUSINESS.
ALRIGHT? AND THAT WAS OUR MISSING COMPONENT.
LET ME TURN IT OVER TO MY COLLEAGUES, I'LL TURN IT OVER.
OUR, UH, ECONOMIC DEVELOPMENT TEAM, AND I THINK EVEN OUR CITY MANAGER, UH, MAYBE HERE JUST TO WALK THROUGH KIND OF THE PROCESS.
IF, IF I CAN CHANGE, I'M SORRY IF I CAN CHANGE HERE.
THE, THE, WE'RE GOING TO, ARE WE CLOSING THE OB 24 AND 25 AND MOVING ON TO THE 17 ITEMS OF PLAYBOY? YES.
BUT THAT'LL ALSO, THAT'LL KIND OF, UH, ALSO LEEWAY INTO THE 17 AND 18 THAT WE HEAR AFTER THIS NB 1718.
SO, I, I, YOU KNOW, WHAT JOE SAID IS SPOT ON.
AND, UM, YOU KNOW, YOU, YOU HEAR, I LOVE, I I DON'T EVEN KNOW WHERE KNOW WHERE TO START.
I CAME UP AS AN ACTIVIST, AS, AS YOU GUYS ALL KNOW, AND THE ACTIVISM IS THE PASSION THAT FUELS THE DESIRE FOR CHANGE.
THE THING THAT I FIND DEEPLY FRUSTRATING IS PEOPLE SELECT THE INFORMATION THEY CHOOSE TO RECEIVE NOW VERSUS 10 YEARS AGO, IS THAT THE ACTIVISM IS STILL AS PASSIONATE AND VALID AS IT HAS ALWAYS BEEN, BUT THE FACTS ARE MISSING IN ACTION.
AND IT IS INFURIATING BECAUSE INSTEAD OF PEOPLE SAYING, WOW, SO NOW WE CAN BE ALL THE THINGS THAT WERE GREAT ABOUT US 10, 20, 30 YEARS AGO, WE'RE TURNING INTO SOMETHING ELSE.
WE'RE TURNING INTO A SLEEPY CITY WHERE NOBODY CAN HAVE ANY FUN.
WE'RE TURNING INTO INSERT ADJECTIVES HERE.
WE ARE DOING ALL OF THE THINGS AT THE SAME TIME.
SO YEAH, WE HAVE A LITTLE BIT MORE LAW AND ORDER, AND YOU KNOW WHAT? IT'S SERVING US REALLY WELL.
AND YEAH, WE CAN STILL GO OUT AND PARTY TILL YOU DROP.
I WOULD ENCOURAGE YOU NOT TO DROP IN THE STREETS.
PLEASE TRY TO TAKE A LYFT HOME.
BUT YEAH, THAT'S PART OF OUR DNA TOO.
AND, AND NOW THE MISSING PIECE, WE'VE SAID FOR YEARS, WE ARE A HOSPITALITY AND REAL ESTATE DRIVEN ECONOMY.
SO NOW WE HAVE LIFESTYLE BRANDS, WE HAVE MEDICAL ENTERPRISES, WE HAVE, UM, TECH, WE HAVE MARKETING, WE HAVE VENTURE CAPITAL.
THOSE ARE INDUSTRIES THAT ROUND OUT OUR HOSPITALITY AND ROUND OUT
[00:30:01]
OUR, OUR REAL ESTATE INDUSTRIES AND HELP SUPPORT ALL THE SMALL BUSINESSES THAT ARE STRUGGLING.I MEAN, HOW MANY ITEMS HAVE WE HEARD AT COMMISSION? WE NEED A SUBSIDY FOR THE MONTHS OF, YOU KNOW, JUNE, JULY, AUGUST FOR THIS GROUP.
AND WE NEED SOME HELP FOR THIS GROUP AS WE'RE DOING CAPITAL IMPROVEMENTS.
YOU KNOW, IT'S DIFFICULT BEING A BUSINESS HERE IN MIAMI BEACH, BUT WHAT WILL MAKE IT EASIER IS A MORE ROBUST, REASONABLY WELL PAID OR EVEN VERY WELL PAID GROUP OF PEOPLE WHO LIVE HERE BY CHOICE AND WORK HERE BY CHOICE, AND CAN GET AROUND USING MICRO MOBILITY OR BECAUSE THEY LIVE A FEW BLOCKS AWAY FROM WHERE THEY WORK.
I MEAN, THIS NOTION OF A 15 MINUTE CITY LIKE SUNSET HARBOR HAS BECOME WHERE YOU CAN LIVE, WORK, PLAY, AND DINE TO YOUR HEART'S CONTENT IS WHAT WE STRIVE FOR.
AND SO WHEN, WHEN I, I HEAR PEOPLE CHASTISING INITIATIVES THAT ARE DIFFERENT FROM WHAT HAS COME BEFORE US BECAUSE THEY'RE NOT SURE THAT'S THE RIGHT LOOK FOR MIAMI BEACH.
I'M LIKE, GIRL, HAVE YOU LOOKED AT THE HISTORY? SHE STILL MUTE
THAT IS NOT THE RIGHT LOOK FOR MIAMI BEACH AND NEVER WILL BE AGAIN.
BUT THAT'S NOT WHAT WE'RE TALKING ABOUT.
WE'RE TALKING ABOUT ATTRACTING PEOPLE AND IDEAS.
WE'RE TALKING ABOUT HAVING PEOPLE PUT THEIR KIDS IN OUR SCHOOLS, WHICH WILL MAKE OUR SCHOOLS BETTER.
WE'RE TALKING ABOUT HAVING A GREATER TAX BASE THAT ISN'T PREDICATED ON BILLIONAIRES WHO SPEND TWO WEEKS OUT OF THE YEAR IN THEIR FIFTH CONDO IN MIAMI BEACH.
WE'RE BUILDING BACK OUR COMMUNITY.
I'M SO PROUD OF YOU FOR DOING THIS, AND I KNOW YOU SAY IT'S A VILLAGE AND IT, YOU KNOW, IT TAKES THE COMMISSION TO VOTE.
AND STEVEN, YOU KNOW, YOU ARE HERE DOING THIS.
IT, THE WHOLE ADMINISTRATION HAS BEEN BEHIND THIS A THOUSAND PERCENT.
BUT IT TAKES SOMEBODY WITH THE IDEAS, THE VISION, AND THE DRIVE TO PUSH IT FORWARD.
I COMMEND YOU, I'M THRILLED ABOUT THE CHANGE THAT WE'RE SEEING.
I WANNA PERCOLATE HAVE IT PERCOLATE DOWN TO SMALLER BUSINESSES AS WELL, WHICH IS WHAT WE'RE GONNA TALK ABOUT WITH VINCE A LITTLE BIT.
BUT, YOU KNOW, ALL KUDOS TO, TO YOU AND THE TEAM.
SO THANK YOU ALL OF US TO OUR CITY, MR. CFO.
SO I, I BELIEVE, UM, SO WE'LL, WE'LL SHOW ITEMS JUST SO I CAN CLEAR MY CALENDAR.
MY ITEMS HERE IS WE ARE GONNA SHOW ITEMS OB 24 AND 25 WERE, UH, HEARD ENCLOSED.
AND THEN MB 11, IT SOUNDS LIKE THAT YOU'RE GONNA BE, UH, TO RETURN THIS TO COMMISSION WITH A FAVORABLE RECOMMENDATION APPROVING THE PLAYBOY ENTERPRISES INTERNATIONAL JOB CREATION INSTEAD OF PROGRAM APPLICATION AS PRESENTED.
YEAH, AND I JUST WANNA HIGHLIGHT BECAUSE, AND, AND AGAIN, COMMISSIONER MAGAZINE, THANK YOU, BECAUSE THIS IS A CATALYST, UH, A CATALYST FOR OUR ECONOMY AND NOT JUST FOR OUR ECONOMY, FOR, FOR THE RESIDENTS OF, OF OUR CITY DIRECT JOBS, THE ECONOMIC IMPACT ON THE DIRECT JOBS OVER A FOUR YEAR PERIOD, $11.4 MILLION PER YEAR, THAT'S PER YEAR.
WHEN YOU LOOK AT THE PROPOSED INVESTMENT IN TERMS OF RENOVATION AND, AND, AND CONSTRUCTION WORK, $4.8 MILLION BEING INVESTED THERE, ALL OF THIS HAS A RIPPLE EFFECT ON OUR ECONOMY.
AND I THINK YOU STATED IT BEST WHEN THOSE HEADLINES WENT AROUND THE WORLD AND OTHER BUSINESSES SAW, UH, THAT THIS COMPANY IS COMING TO MIAMI BEACH, IT PIQUES THEIR INTEREST.
IT TELLS THEM THAT'S WHERE WE WANT TO BE.
AND SO I JUST WANT TO CONGRATULATE YOU.
I WANT TO SUPPORT YOU IN THIS, IN THIS EFFORT.
AND MOST IMPORTANTLY, I WANT TO THANK YOU BECAUSE YOU'VE HAD THE VISION FOR IT.
YOU'VE, UH, NOT AS EASY TO HAVE VISION, BUT YOU'VE DELIVERED ON, ON THE VISION.
AND I THINK THIS WILL ONLY CONTINUE, UH, BEARING MORE FRUITS FOR OUR COMMUNITY.
AND THEN ON THE MOTION, I GUESS WE'LL SHOW, UH, COMMISSIONER BOT MAKING THE MOTION AND YOU SECONDING IT.
AND I BELIEVE THE NEXT ITEM YOU, YOU HAD RECOMMENDED WAS, UM, MB 17 AND 18.
SO READ IN MB 17 DISCUSSING STRENGTHENING SMALL BUSINESS OUTREACH AND PERMITTING GUIDANCE, MB 17 AND THEN MB 18 DISCUSS STRATEGIES TO ENSURE THE THIRD PARTIES RETAINED FOR COMPENSATION BY BUSINESSES FOLLOW THROUGH ON OBTAINING ALL REQUIRED PERMITS AND BE 18.
SO, UM, I BROUGHT THESE TWO ITEMS AND I'M, I'M COMPRESSING THEM INTO ONE CONVERSATION BECAUSE THEY, THEY'RE PART OF WHAT GOES ON.
I'VE SEEN EMAILS IN FACEBOOK CITY, FACEBOOK POSTS ABOUT, UM, OUTREACH AND, HEY, DID YOU KNOW YOU CAN COME IN AND DO X, Y, AND Z? SO I THINK THAT'S GREAT.
I WANNA HEAR MORE ABOUT HOW YOU REACH PEOPLE WHO AREN'T, YOU KNOW, DON'T KNOW THAT THEY CAN SIGN UP FOR THESE EMAILS,
[00:35:01]
WHO DON'T GO ON SOCIAL MEDIA, WHO MIGHT NOT SPEAK ENGLISH AS THEIR FIRST LANGUAGE.AND I ALSO WANT TO REALLY UNDERSTAND IF THERE'S ANYTHING WE CAN DO, BECAUSE WHAT I HEAR FAR TOO OFTEN, ESPECIALLY FROM THE SMALL BUSINESSES, IS I SIGNED A LEASE.
MY NEIGHBOR CAME IN AS I WAS FIGURING OUT HOW I WAS GONNA GO THROUGH THE PROCESS AND SAID, I CAN HELP YOU NAVIGATE THIS, THE PROCESS AT CITY HALL.
AND THEY CLAIM TO BE PERMIT EXPEDITORS, OR THEY CLAIM TO, UM, BE ABLE TO HOOK PEOPLE UP WITH THE RIGHT PEOPLE TO TALK TO, AND THEY GO THROUGH ALL THEIR MOTIONS.
AND FIVE YEARS LATER IN AN IN A BTR AUDIT, IT'S DETERMINED THAT SOMETHING IS MISSING.
AND SO THE BUSINESS MIGHT HAVE BEEN ABLE TO OPEN BUT SHOULDN'T HAVE TECHNICALLY, AND IT'S NOT THROUGH FAULT OF THE BUSINESS OWNER, UNLIKE ONE THAT WE HAD WHO KNEW VERY WELL THAT, THAT THEY DID NOT HAVE A BTR AND, AND ENDED UP OPERATING AS A SPEAKEASY LITERALLY UNTIL IT WAS FINALLY SHUT DOWN.
WHICH IS, I MEAN, TALK ABOUT MOVIES, THAT'S A GOOD ONE.
UM, BUT IN OTHER CASES, WE'VE HAD PEOPLE WHO ARE LIKE, OH MY GOD, THEY TOLD ME I DID EVERYTHING RIGHT.
AND NOW I'M BEING FACED WITH A, YOU KNOW, A $70,000 FINE AND NOT EVEN A FINE, BUT BACK PAYMENT OVER FIVE YEARS.
BUT THE PERSON WHO DID THIS FOR ME SAID THAT IT WAS DONE CORRECTLY.
SO IT'S NOT THE BUSINESS OWNER WHO'S DOING THE WRONG THING.
HOW DO WE MAKE SURE THE BUSINESS OWNER GETS ALL THE INFORMATION THAT WE REACH THEM WHERE THEY ARE? BECAUSE THERE ARE PLENTY OF BUSINESS OWNERS WHO HAVE NO IDEA, YOU'RE SUPPOSED TO GO TO CITY HALL TO GET X, Y, AND Z.
AND THEN IF THEY HAVE SOMEBODY REPRESENTING THEM, HOW DO WE MAKE SURE THAT WE HAVE THAT PERSON IN THE FILE SO THAT IF THERE IS SOME MALFEASANCE, IT CAN BE BROUGHT BACK TO THE PERSON WHO DID IT AND THAT PERSON IS HELD ACCOUNTABLE.
SO THAT, WITH THAT SET UP, TAKE IT AWAY, YOU GUYS.
UH, GOOD MORNING, HONORABLE COMMISSION.
UH, AND THANK YOU FOR THE OPPORTUNITY IN BRINGING THESE ITEMS UP, UH, WITH THE SUPPORT OF OUR LEADERSHIP.
UM, WHEN I CAME ON BOARD, UH, WE FOUND SOME CRITICAL NEEDS THROUGH THE AD HOC COMMITTEE AND, AND OTHER, UH, AVENUES WHERE THE PUBLIC CAME FORWARD AND BROUGHT UP THESE VERY SAME ISSUES THAT YOU GUYS HEARD AND HAVE MADE THEM LEGISLATIVE ITEMS. UH, I'LL START WITH THE MORE PEDESTRIAN, UH, OUTREACH.
SO GOOD OLD FASHIONED FLYERS, QUARTERLY EVENTS THAT HAVE BROUGHT IN THE PUBLIC WHERE THEY'VE BEEN ABLE TO RESOLVE ISSUES ON THE SPOT ON TIME.
BUT MORE SIGNIFICANTLY, THE SUPPORT, LIKE I SAID, OF LEADERSHIP TO REINSTITUTE, THE WALKTHROUGH PROCESS THAT WE HAVE ON TUESDAYS AND THURSDAYS, ONE OF THE GREATEST SUCCESS STORIES JUST HIT THE FINISH LINE, UH, LAST WEEK, WHERE A YOGURT COMPANY WAS ABLE TO APPLY FOR PERMIT, GET THE PERMIT, AND BE READY TO GO IN LESS THAN TWO WEEKS.
I'M SORRY, CAN YOU SAY THAT AGAIN FOR THE RECORD? YEAH.
THEY APPLIED ON ONE WALKTHROUGH DAY.
THEY CAME BACK, GOT DERHAM SQUARED AWAY, AND ON THE SECOND WALKTHROUGH THEY GOT THEIR PERMIT.
SO THEY CAME INTO CITY HALL AND WITHIN TWO WEEKS THEY WERE OPEN FOR BUSINESS, THEY WERE READY, THEY HAD THEIR PERMIT IN HAND, AND THEY HAD VERY LITTLE WORK LEFT TO DO AND THEY KNOCKED IT OUT.
WE'VE ALSO INSTITUTED OTHER THINGS, UH, THROUGH THE BUILDING CODE THAT I ALLOW FOR, UH, EARLY START PERMITS AND THINGS OF THAT NATURE.
SO THE TEMPERATURE AND THE VALUES ARE THERE.
WE SEE THE NEED AND WE'RE WORKING WITH THE INDUSTRY AS MUCH AS WE POSSIBLY CAN.
WE'VE ALSO SYNERGIZED AND REACHED OUT WITH OUR PARTNERS AT, UH, THE DEPARTMENT OF ENVIRONMENTAL RESOURCE MANAGEMENT, OTHERWISE KNOWN AS DERM.
ALRIGHT? AND THEY'RE, THEY'VE ACTIVELY COME IN, THEY'VE SET UP A KIOSK WITH US HERE, UH, RIGHT NOW WE'RE GONNA BE DOING SOME RECONFIGURATION TO MAKE IT A LITTLE BIT MORE SYNERGETIC, IF YOU WOULD, UH, WHEN THE FOLKS COME IN AND, AND ARE APPLYING TO GIVE THEM A LITTLE BIT MORE PRIVACY TO BE ABLE TO INTERACT DIRECTLY WITH THAT REVIEWER ON THE OTHER SIDE AT MIAMI-DADE COUNTY, UH, I STARTED WITH THOSE, THOSE ARE THE SMALL ONES, BUT THE BIG ONE THAT'S COMING UP IS A TRULY CUSTOMER SERVICE BASED INITIATIVE OF A CONCIERGE.
SO YOU WILL ACTUALLY BE ABLE TO HAVE YOUR HAND HELD FROM BEGINNING TO END OF THE PROCESS.
AND AND TO BE CLEAR, THAT IS IF YOU ARE A SMALL BUSINESS, BECAUSE YES, YOU KNOW, THE DEVELOPERS COME IN AND THEY BASICALLY HAVE THAT BECAUSE THEY HAVE THEIR STAFF OF LAWYERS AND YOU KNOW, A WHOLE TEAM OF PEOPLE AND THEY DO THIS FOR A LIVING AS OPPOSED TO SOMEBODY WHO'S RETIRED FROM TEACHING HAS ALWAYS WANTED TO OPEN UP A YARN STORE, HAS NO IDEA THAT YOU NEED TO CHANGE YOUR USE FROM A BAKERY TO A YARN STORE BECAUSE A RETAIL SPACE IS A RETAIL SPACE, OPENS UP THE YARN STORE, AND THEN ALL OF A SUDDEN IS LIKE HELD UP BY DERM BECAUSE THE GREASE TRAP ISN'T BIG ENOUGH FOR A YARN STORE, YOU KNOW, LIKE, OR WHATEVER.
SO YOU'RE TALKING ABOUT IF YOU HAVE THE DREAM OF HAVING YOUR OWN SMALL BUSINESS, THERE WILL BE SOMEBODY WHO WILL BE YOUR POINT PERSON ALL THE WAY THROUGH THE PROCESS FROM START TO FINISH, WHO WILL BE ABLE TO FIND THE DOCUMENTS, FIGURE OUT WHO YOU NEED TO TALK TO, ALL OF THAT, MAKE THOSE CONNECTIONS.
[00:40:01]
EXACTLY THE INITIATIVE THAT WE'RE, WE'RE LAUNCHING.ARE YOU CLONING LENORE? HUH? ARE YOU CLONING LENORE HERNANDEZ? 'CAUSE I MEAN, WE, WE HAVE, WE HAVE AN ENTIRE STAFF
SO THAT WE COULD GET THE MOST BANG FOR OUR BUCK, IF YOU WOULD, AND GET MORE PEOPLE ACROSS THE FINISH LINE AND HAVE THOSE BUSINESSES OPEN, BOTH CONTRIBUTING TO THE CITY AND THE EMPLOYMENT AND, AND JUST THE FORWARD MOTION OF THE ENTIRE CITY AND, AND COMMUNITY.
SO LET ME, I JUST WANNA, AND I JUST WANNA NOTE THAT THAT ALSO IS WORKING IN CONJUNCTION WITH THE BUSINESS CONCIERGE SERVICE THAT ECONOMIC DEVELOPMENT HAS HAD FOR A WHILE.
AND SO WHAT I, WHAT I DO LOVE IS THAT I KNOW THAT COMMISSIONER MAGAZINE IMPLEMENTED IN TERMS OF MARKETING, ADDITIONAL MARKETING DOLLARS.
WHAT I REALIZED, I HAD PEOPLE RAISE THEIR HAND AND SAID, HOW MANY PEOPLE KNEW THAT ECONOMIC DEVELOPMENT HAD A BUSINESS CONCIERGE SERVICE? AND LITERALLY THERE WERE TWO PEOPLE.
AND SO THE IDEA OF THE FACT THAT NOW WE'RE ABLE TO WORK TOGETHER, WHEN FOLKS COME INTO ECONOMIC DEVELOPMENT, SMALL BUSINESS WHO'S JUST HAS AN IDEA, THEY HAVE ONE POINT OF CONTACT.
THAT POINT OF CONTACT THEN CONNECTS WITH, WITH VINCE AND HIS DEPARTMENT AND SAY, OKAY, HERE'S WHAT THE BUSINESS IS LOOKING FOR.
SO THAT WAY THERE IS NOT THIS BACK AND FORTH THAT YOU ALWAYS HEAR ABOUT.
THERE'S LITERALLY ONE PERSON WHO YOU CAN USHER THROUGH THE PROCESS.
I, I, THIS IS SO HAPPY MAKING, I JUST CAN'T EVEN, AND IT'S A GREAT ANTIDOTE TO THE WAY THE DAY HAS STARTED.
SO, UM, SO HERE'S THE OTHER QUESTION.
LIKE THE, THE THING THAT SEEMS LIKE IT MIGHT BE MISSING, BUT MAYBE YOU GUYS ARE COVERING IT SOMEHOW, IS THE, UM, THE USE CHANGE FOR PEOPLE, LIKE IT KIND OF GETS COVERED IN BUILDING, BUT IT'S REALLY ESOTERIC FOR A LOT OF PEOPLE.
UM, AND, AND THE OTHER PART THAT I'M NOT QUITE GETTING YET IS, UM, WHERE IS THE BEST WAY TO CAPTURE THE PEOPLE WHO WANT TO DO BUSINESS? IS THERE AN OPPORTUNITY IN THE CITY? IS THERE AN OPPORTUNITY TO DO SOME KIND OF OUTREACH TO LEASING AGENTS AND REAL ESTATE COMPANIES? BECAUSE I THINK THEY'RE THE FIRST POINT OF CONTACT, RIGHT? WHEN SOMEBODY'S LOOKING TO OPEN A NEW BUSINESS, THEY NEED TO DO IT UNLESS THEY'RE RUNNING A HOME BASED OPERATION, WHICH IS A DIFFERENT CONVERSATION.
UM, BUT IF THEY'RE DOING, YOU KNOW, A RETAIL BUSINESS, THEY HAVE TO FIND THE SPACE.
SO, AND, AND OFTEN WE HEAR, YOU KNOW, WELL, MY LEASING AGENT NEVER TOLD ME THAT.
AND IT'S PROBABLY BECAUSE THE LEASING AGENT DIDN'T KNOW, RIGHT? THAT THERE WAS A THING THAT HAD TO HAPPEN BECAUSE IT'S SOMETIMES VERY WEIRD AND ESOTERIC AND SEEMS COUNTERINTUITIVE.
SO IS THERE ALSO AN OPPORTUNITY TO BROADEN ALL OF WHAT YOU'RE DOING? AND BECAUSE I WANNA CATCH EVERYBODY WHO GOES INTO THIS FUNNEL, NOT THE ONES WHO ARE SELF-DIRECTED ENOUGH TO FIGURE OUT, OH, I DO NEED A BTR, OR, OH, I WOULD LIKE TO KNOW WHAT MIAMI BEACH CAN DO FOR ME.
SO YOU GUYS ARE LOOK LIKE YOU'VE GOT A CAT.
I'LL, I'LL LET VINCE GET TO THE FIRST ONE, BUT I HAVE OKAY.
THE, THE SECOND PART A ABSOLUTELY.
SO A AND AND TO YOUR PREVIOUS COMMENT, YOU IDENTIFIED IT HIT AND NAIL ON THE HEAD.
THE BIGGER FIRMS WILL HAVE ROBUST DESIGN TEAMS. THEY'LL HAVE THEIR OWN CONTACTS, THEY'LL HAVE THEIR OWN, THEY'LL SET UP, UH, MEETINGS, WHICH ME AND MY STAFF HAVE MADE OURSELVES NOTHING BUT AVAILABLE, UH, AT EVERY OPPORTUNITY TO HELP GUIDE PEOPLE AND, AND IDENTIFY ANY HURDLES THEY MAY HAVE IN THE PROCESS.
UM, BUT FURTHER, UH, OUR PARTNERS IN ECONOMIC DEVELOPMENT HAVE BEEN LEADING THE WAY WITH THESE QUARTERLY MEETINGS, BRINGING EVERYBODY IN, SOUNDING THE, THE ALARMS COME ON IN.
WE'VE ALSO HAVE ALL THE CONTACTS OF ALL THE CONTRACTORS AND EVERYBODY THAT'S BEEN INVOLVED IN THE PERMITTING PROCESS.
AND WE EMAIL BLAST ALL OUR INITIATIVES, ALL THE NEW PROGRESS THAT WE'VE DONE WITH, WITH REGARDS TO WALKTHROUGH, WITH REGARDS TO PUBLIC OUTREACH, UH, INITIATIVES AND THINGS OF THAT NATURE.
ARE WE WORKING WITH THE CHAMBER? WE DO.
SO THAT'S THE OTHER, SO OUR BUSINESS CONCIERGE AND LICENSING EVENT, WHAT WE, WHAT WE DO IS WE REACH OUT TO ALL OF OUR PARTNERS.
SO WE REACH OUT TO THE BIDS, WE REACH OUT TO, UH, THE CHAMBER, WE REACH OUT TO ALL OF OUR PARTNERS AND SAY, HEY, ANY OF YOUR CONTACTS THAT HAVE ANYTHING TO DO WITH BUSINESSES, COME ON IN.
AND SO WHAT WE REALIZED IS THERE WAS REALLY GREAT, GREAT FEEDBACK FROM THE MOST RECENT ONE WE JUST HAD IN AUGUST, AND WE'RE WORKING ON THE NEXT ONE AS WE SPEAK.
AND THE IDEA WAS THAT WE ACTUALLY MOVED IT, IT WAS GOING TO BE JUST TWICE A YEAR.
WE SAID, YOU KNOW WHAT? LET'S DO THIS QUARTERLY BECAUSE OUR PARTNERS ARE REALLY, REALLY HELPFUL IN THIS PROCESS.
AND EVERYONE THAT CAME IN SAID, WOW, I DIDN'T KNOW THAT MIAMI BEACH DOES THIS, AND SO LET'S MAKE SURE THAT WE'RE DOING THIS MORE OFTEN SO THAT FOLKS REALLY GET THE INFORMATION THAT THEY NEED.
AND SO WE'RE ACTUALLY GOING TO UP THE UP THE NUMBER OF TIMES THAT WE DO THIS.
YOU KNOW, ANOTHER IDEA MIGHT BE TO HAVE US A BOOTH AT THE TRADE SHOWS AT THE CONVENTION CENTER, BECAUSE THAT'S ALL ABOUT BUILDING BUSINESS.
AND EVEN IF YOU'RE THERE WORKING FOR YOUR, YOU KNOW, L'OREAL AT THE MAKEUP SHOW OR WHATEVER IT IS, YOU MIGHT HAVE A DREAM OF HAVING YOUR OWN MAKEUP LINE.
AND YOU KNOW, WE'D LIKE YOU TO DO THAT HERE IN MIAMI BEACH.
SO, YOU KNOW, IN TERMS OF OUTREACH, I REALLY WANT TO PUT ON THE, THE, THE THINKING OUTSIDE OF THE BOX HAT AND GO EVERYWHERE WHERE PEOPLE MAY BE HIGH SCHOOL JOB FAIRS, COLLEGE JOB FAIRS, YOU KNOW, YOU NEVER KNOW WHEN SOMEBODY IS NOT GONNA TAKE A LINEAR PATH OR WHAT WE HAVE USUALLY THOUGHT OF AS
[00:45:01]
A LINEAR PATH.AND WE WANNA MAKE SURE THAT WE, PEOPLE KNOW THAT WE CAN, WE HAVE THE RESOURCES.
IT'S, IT'S A QUESTION OF, OF TIME, YOU KNOW, TWO HOURS HERE, TWO HOURS THERE OR WHATEVER.
UM, AND I WOULD ALSO, I'M, I'M SO EXCITED ABOUT THIS.
I WE HAVEN'T REALLY TALKED ABOUT THE, THE PERSON, YOU KNOW, THE, THE BAD, UM, ADVICE GIVER PART OF THIS.
UM, BUT ON THE, ON THE POSITIVE SIDE, I WOULD LIKE THERE TO BE, UM, IF YOU GUYS WOULD COLLABORATE TO, TO WRITE A LETTER TO COMMISSION THAT VERY ROBUSTLY IN RESIDENT FRIENDLY LANGUAGE, LAYS OUT ALL THE THINGS THAT ARE HAPPENING, WHERE ALL THE RESOURCES ARE, WHAT THE CALENDAR IS FOR THE EVENTS, SO THAT THAT CAN BE SHARED, YOU KNOW, AND WE CAN WORK WITH, WITH MELISSA AND HER TEAM TO GET IT OUT INTO THE UNIVERSE.
AND THEN ALSO, YOU KNOW, 'CAUSE SOMETIMES IT'S LIKE THERE'S A PIECE OF INFORMATION ABOUT THIS AND THEN A PIECE OF INFORMATION ABOUT THAT.
BUT TO HAVE ALMOST LIKE A, A HANDBOOK THAT COVERS ALL OF IT WOULD BE REALLY TREMENDOUS.
UM, AND TO MELISSA'S CREDIT AND HER TEAM AS WELL, EVERY ARTICLE THAT THEY PUT OUT IN THE MAGAZINE JUST GENERATES EVEN MORE GREAT, UH, MORE NOISE AND, AND BRINGS MORE PEOPLE INTO BACK INTO CITY HALL RESOLVING THEIR ISSUES AND GETTING EVERYTHING RESOLVED LEGALLY AND CORRECTLY.
AND, AND VINCE, UH, SOMETIMES THE ISSUES ARE OUT OF OUR HANDS, AND ONE THING WE HEAR CONTINUOUSLY IS WITH DERM.
THERE WAS AN UPDATE RECENTLY AT THE COUNTY AS PART OF THEIR BUDGET HEARING, UH, FOR LACK OF A BETTER TERM, IN SOME WAYS THEY DEFANGED DERM OR THERE WAS A PROPOSAL TO DO SO.
AND IS THAT A DIFFERENT DERM? UH, DOES THAT HAVE ANY IMPACT? MOST NOTABLY WHERE WE HEAR ABOUT IT IS THROUGH THE GREASE TRAP PROCESS.
IS THAT CORRECT? UH, SO PROBABLY THE MOST, UH, LOUD CONTINGENT OR MARKET IS THE RESTAURATEURS AND PEOPLE THAT HAVE, UH, THE USE OF GREASE TRAPS, AND I WOULDN'T SAY SO MUCH DEFANGING, BUT RATHER A, A RESTRUCTURING OR REORGANIZATION IS WHAT'S HAPPENING AT THE COUNTY RIGHT NOW.
AND IT'S ACTUALLY STREAMLINING A LOT OF, SOME OF THE, UH, YOU'RE A POLITICIAN THAN ME.
UH, SO THE REORGANIZATION THAT THEY'VE, UH, GONE UNDER IS THEY'VE PUT ALL THE FOLKS THAT TOUCH ANYTHING PERMITTING AND PUT THEM UNDER THE BUILDING DEPARTMENT IN OUR ER SO THAT THEY'RE ON THE SAME TIMETABLE, THEY'RE UNDER THE SAME TIME CONSTRAINTS AND THE SAME LEADERSHIP.
EVERYONE'S MARCHING TO THE SAME BEAT.
THE, THE LEGISLATIVE PORTION THAT'S STAYING DOWNTOWN AND, AND BASICALLY WHERE THEY STAYED AT, THE POLICY FOLKS ARE STAYING IN THAT, IN THAT SILO, IF YOU WANT TO CALL IT SOMETHING.
UH, BUT AGAIN, THAT'S BEEN PROBABLY THE LARGEST, UH, PUSH OF THE FOOTBALL DOWNFIELD.
THAT'S REALLY CAPITALIZED AND, AND HELP BUSINESSES GAIN SUCCESS EVEN FASTER.
SO, SO THAT'LL BE A POSITIVE FOR THE BUSINESSES.
AND I, I THINK WITH ALL THE, IT'S CLEAR, GIVEN ALL THE DIFFERENT COMMISSIONERS WITH ITEMS OURSELVES, COMMISSIONER FERNANDEZ AND ALSO MAYOR MINOR AND COMMISSIONER DOMINGUEZ HAD, UH, OB 25, MR. CFO, MAYBE IF WE CAN INCLUDE THAT, OH WAIT, WE DIDN'T HEAR, UM, ABOUT THE, THE BAD ACTORS GIVING YOU BAD ADVICE.
SO ON ON, ON THE OTHER SIDE OF THE COIN, RIGHT? YEAH.
UM, WHAT SOME PEOPLE CALL EXPEDITORS RUNNERS, WHAT HAVE YOU, THOSE ARE FOLKS THAT UNFORTUNATELY ARE UNREGULATED.
AS A CONTRACTOR, YOU HAVE A LICENSE ISSUED BY THE STATE OR THE COUNTY AS AN ENGINEER AND ARCHITECT, AGAIN, YOU HAVE A LICENSE THAT'S ISSUED THAT CAN HAVE SANCTIONS TAKEN AGAINST YOU, BE IT IN THE FORM OF FINES CONTINUING ED OR ULTIMATELY REVOCATION OF THAT LICENSE.
SO THERE IS A PENALTY FOR FAILING TO COMPLY WITH YOUR DUTY.
THESE, THE RUNNER INDUSTRY IS KIND OF ALL OVER THE PLACE.
THERE'S NO LICENSE, THERE'S NO WAY TO TRACK 'EM.
SO WHAT WE'VE BEEN LOOKING AT IS A REGISTRATION SYSTEM.
ALRIGHT? SO ONCE SOMEBODY REGISTERS WITH 'EM, WE COULD FINALLY HAVE SOME WAY, NUMBER ONE, TO IDENTIFY EXACTLY WHO THEY ARE.
OKAY? WE MAY BE ABLE TO EVEN COME UP WITH A LOCAL FORM OF DISCIPLINE THAT COULD RESULT IN EITHER A FINE OR SUSPENSION FROM REPRESENTING.
UM, IT'S KIND OF A GRAY AREA BECAUSE AGAIN, A RUNNER, THERE'S NO LICENSE.
SO AT THIS POINT WE'RE JUST GOING, YOU'RE A BUSINESS, YOU GOTTA REGISTER, OKAY? AND THEN USE KIND OF THE BE BETTER BUSINESS BUREAU.
YOU'RE AN A, A B, A C, SOMETHING OF THAT NATURE.
AS AN ENFORCEMENT OR REGULATORY AGENCY, I CAN'T GET INTO THAT DIRECTLY BECAUSE NOW I'M PUTTING MY FINGER ON THE SCALES AND I'M SUPPOSED TO BE BLIND.
SO, BUT THERE'S ALSO, IN ADDITION TO THE PEOPLE WHO HAVE COMPANIES THAT DO THIS, THERE ARE ALSO SORT OF JUST THE, THE NEIGHBOR WHO'S LIKE, OH, I'VE OPENED FIVE, YOU KNOW, I'VE HELD FIVE OF YOUR BUSINESSES OPEN UP, OR YOUR NEIGHBOR, I'VE HELPED FIVE OF YOUR
[00:50:01]
NEIGHBORING BUSINESSES OPEN UP IN, IN THE COMMUNITY, LET ME HELP YOU AS WELL.SO THEY'RE NOT AN OFFICIAL, YOU KNOW, PERMIT EXPEDITER.
SO CAN WE LIKE START AN INTERNAL REGISTRATION YES.
AND ALSO WHEN, WHEN YOU HAVE THE OUTREACH IN, IN ECONOMIC DEVELOPMENT AND IN THE BUILDING DEPARTMENT, MAYBE THAT IS SOMETHING THAT YOU REALLY HIGHLIGHT.
LIKE BE SURE, I MEAN, IT'S FINE TO USE AN EXPEDITOR IF YOU WANT TO, BUT YOU MIGHT WANNA CHECK WITH US, UM, WHO'S REGISTERED, WHO, WHO YOU'RE USING, AND IF THEY'RE GIVING YOU LIKE, TELL US WHAT THEY'VE TOLD YOU YOU NEED AND WE'LL LET YOU KNOW IF, IF THAT'S EVERYTHING CORRECT.
AND, AND THAT'S KIND OF THE DIRECTION THAT WE'RE, WE'RE CONFIGURING THIS IN.
UH, IT WOULD BE THROUGH OUR CONTRACTOR REGISTRATION, EXCEPT IT WON'T HAVE A LICENSE ATTACHED.
AND ONE OF THE THINGS THAT WE COULD INFORM THE PUBLIC IS IF YOU'RE GONNA USE A RUNNER, ALRIGHT, GO AHEAD AND CHECK AND SEE IF THEY'RE ON OUR REGISTRATION SYSTEM, BECAUSE SOMEBODY THAT HAS THE FORTITUDE TO GO AHEAD AND REGISTER SHOULD BE PLAYING IN THE SUNLIGHT.
UH, SOMEONE THAT'S AVOIDING THE SUNLIGHT OR DOESN'T EVEN KNOW THAT THERE'S A REGISTRATION SYSTEM THAT'S A PROBLEM, TELLS YOU ABOUT THEIR FAMILIARITY WITH THE SYSTEM AND THE PROCESS.
WELL, LISTEN, I'M EXCITED TO READ THE LTC NOT TO GIVE YOU A HOMEWORK ASSIGNMENT, BUT I'M GIVING YOU A HOMEWORK ASSIGNMENT.
AND I THINK MORE IMPORTANTLY, OUR RESIDENTS AND BUSINESS OWNERS AND PROSPECTIVE RESIDENTS AND BUSINESS OWNERS WILL BE THRILLED TO HAVE, YOU KNOW, LIKE A, A MANUAL ALMOST OF HERE, HERE IT IS, START TO FINISH, HERE'S WHERE YOU GO.
AND, UH, LET, WE'LL SEE YOU AT CITY HALL.
SO IF I COULD, IF I COULD, UH, SUMMARIZE, I THINK WHERE WE'RE ON THE 17, 17 AND 18 COMBINED IS A LITTLE SEPARATE, BUT WE'LL SHOW THE STAFF PROVIDED AN UPDATE ON THE NEW, NEW PROCESSES AND, AND PROGRAMS. UH, AND THEN THEY'LL, I GUESS WE'LL HAVE A RETURN TO COMMISSIONER OF THE FAVORABLE RECOMMENDATION TO DIRECT THE ADMINISTRATION TO DEVELOP A PERMANENT RUNNER REGISTRATION PROGRAM AND FOR THE ADMINISTRATION TO, UH, DISSEMINATE AN LTC, UH, TO BE PROVIDED ON BUSINESS OUTREACH PROGRAMS. DOES THAT HAVE TO BE VOTED ON BY THE FULL COMMISSION OR CAN WE JUST MOVE IT FROM HERE? I THINK DIRECTION ALWAYS GOES UP TO THE COMMISSION DOES.
AND SINCE WE'RE SENDING SOMETHING TO THE COMMISSION ANYWAY.
IT COULD BE COMBINED TOGETHER, SO, GREAT.
I THINK THAT WOULD BE THE MOTION.
AND AGAIN, WE'LL SHOW COMMISSIONER BOT MAKING MOTION SECONDED BY, UH, COMMISSIONER MAGAZINE.
COULD BE THEMED TODAY, COULD BE SEENED TODAY.
AND THEN I THINK THAT'S THE OFFICIALLY ALL IN FAVOR, AYE.
AND, AND SO I THINK WE CLOSED OUT OB 24 AS WELL.
SO I DON'T KNOW IF I TEED YOU UP FOR 25, UM, AND I GONNA GIVE YOU THEIR SPEC 'CAUSE OF NO MAYOR MINOR AND COMMISSIONER DOMINGUEZ AND ALL OF US COLLECTIVELY HAVE REALLY BEEN FOCUSED ON, I KNOW WE TOUCHED ON THIS AS PART OF A LOT OF OTHER ISSUES, BUT STEVEN, IF YOU JUST WANTED TO KIND OF WRAP UP OR SUMMARIZE, UH, OB
[OB 25. DISCUSS POSSIBLE ECONOMIC INCENTIVES TO ATTRACT MORE BUSINESSES TO THE CITY AND EXPAND EXISTING PROGRAMS.]
25, DISCUSS POSSIBLE ECONOMIC INCENTIVES TO ATTRACT MORE BUSINESSES TO THE CITY AND EXPAND EXISTING PROGRAMS. YEAH.I, UM, SO THE, THE, THE ITEM REALLY SPOKE TO A LOT OF THE PROGRAMS WE ALREADY KIND OF TOUCHED BASE ON YEP.
THE PROGRAMS THAT ARE ALREADY DOING REALLY WELL.
WE TALKED ABOUT THE JOB CREATION INCENTIVE PROGRAM, TALKED ABOUT THE COMMERCIAL LEASE SUBSIDY PROGRAM.
SO A NUMBER OF THE PROGRAMS THAT ARE ALREADY FEATURED, THE BUSINESS CONCIERGE PROGRAMS. SO A NUMBER OF THOSE PROGRAMS ARE ALREADY FEATURED HERE.
THERE'S, THERE'S, JUST TO HIGHLIGHT A FEW THINGS THAT ARE JUST NEW IDEAS UNDER CONSIDERATION.
UM, SOME OF THE THINGS THAT I'VE TAKEN FROM COMMUNITIES THAT I'VE BEEN, UM, ECONOMIC, WORKED IN ECONOMIC DEVELOPMENT IN THE PAST, UM, IS, IS, IS WHAT I CALL A BUILD PROGRAM OR A, A TAX ABATEMENT PROGRAM.
UM, THAT ACTUALLY WORKS IN A, IN A CONDUIT FORM.
SO IT IS A, IT IS A BOND THAT WORKS AS A, AS A CONDUIT.
SO A BUSINESS WILL COME IN AND SAY, HEY, I'M GONNA LOOK TO MAKE A $5 MILLION INVESTMENT WITHIN REDEVELOPING OR DEVELOPING SOME, UH, SOME NEW, SOME PROPERTY OR MOVING A BUSINESS INTO, INTO MIAMI BEACH.
WHAT THEY WOULD DO IS THEN THEY WOULD ACTUALLY, THE, THE ADMINISTRATION WOULD THEN ISSUE, WE WOULD ISSUE A, UH, BOND.
IT WOULD SERVE AS A CONDUIT ONLY.
SO, WHICH MEANS THAT THERE WOULDN'T BE A, A, A, A FINANCING COMPONENT TO IT.
SO IT ALLOWS THEN THAT THE, THAT THE TITLE OF THE REAL OR PERSONAL PROPERTY WOULD ACTUALLY BE IN THE NAME OF THE CITY, UH, WHICH WOULD THEN ALLOW FOR A TAX ABATEMENT OVER A CERTAIN PERIOD OF TIME.
UM, AND TYPICALLY WHAT I'VE SEEN THESE DO IS UP TO 10 YEARS, REALLY NOT GOING ABOVE AND BEYOND THAT BECAUSE IT MATCHES UP WITH THE FINANCING OF THE COMPANY ITSELF.
UM, AND INSTEAD OF ACTUALLY PAYING THE ACTUAL TAXES, WHAT THE COMPANY WOULD PAY WOULD BE A PAYMENT IN LIEU OF TAXES.
AND SO THEY WOULD STILL MAKE A PAYMENT, RIGHT? SO THEY WOULD STILL MAKE A PAYMENT.
IT WOULDN'T BE AS IF THEY'RE NOT PAYING ANY TAXES FOR THAT TIME PERIOD OR ANY, ANY AMOUNT DURING THAT TIME PERIOD.
BUT WHAT'S, WHAT'S HELPFUL FOR THE BUSINESS IS THAT NOW YOU HAVE A CONSISTENT PAYMENT THAT YOU'RE GONNA BE MAKING OVER A COURSE OF PERIOD OF TIME, SO YOU KNOW EXACTLY WHAT YOU'RE GOING TO BE PAYING.
AND SO THAT, THAT CERTAINTY IS WHAT BUSINESSES ARE LOOKING FOR.
AND, AND YOU'VE SPOKEN WITH LEGAL ABOUT THIS.
SO WE HAD LEGAL CHIME IN, WE HAD LEGAL CHIME IN ON, ON, ON ASPECTS OF IT, AND WE'RE WORKING, FINISHING, WORKING THROUGH SOME OF THE LOGISTICS.
WE LEARNED THAT, OF COURSE, THAT, UM, THE STATE OF, THE STATE OF, UH, THE STATE OF FLORIDA
[00:55:01]
DOES ISSUE, DOES ISSUE THESE TYPES OF BONDS, UM, AND SO FORTH.AND SO WE'RE WORKING THROUGH EXACTLY THE, HOW WE WOULD IMPLEMENT.
THAT'S, THAT'S THE NEXT STEP FOR, FOR THIS.
UM, SO IT, THAT'S, IT'S INTERESTING 'CAUSE WHEN I WAS, UM, RUNNING, I WAS TALKING ABOUT THIS KIND OF AN IDEA FOR, UM, AFFORDABLE HOUSING DEVELOPMENT, AND I WAS TOLD THAT WE COULDN'T BECAUSE THE STATE OF FLORIDA GOVERNED WHAT KIND OF TAX ABATEMENTS YOU COULD DO.
BUT BECAUSE THIS IS BUSINESS, UH, LIKE WHAT? SO IT'S ECONOMIC.
IT'S AN ECONOMIC DEVELOPMENT TOOL.
AND SO IT'S, IT'S, IT'S TYPICALLY WHAT YOU'VE SEEN WITH THE STATE, THE STATE USUALLY UTILIZE THIS FOR, UM, INDUSTRIAL.
SO IT'S, YOU WILL HEAR THE INDUSTRIAL REVENUE BOND, THEIR INDUSTRIAL BOND.
AND SO IT'S TYPICALLY UTILIZED FOR MAJOR MANUFACTURING OR INDUSTRIAL TYPES OF FACILITIES THAT, THAT FOLKS ARE, THAT FOLKS HAVE BUILDING.
AND SO THAT'S WHERE YOU'VE SEEN THESE TYPES OF, UH, OF PROJECTS UTILIZED WITHIN THE STATE.
AND SO THERE'S, THERE'S AN OPPORTUNITY TO JUST SORT OF REIMAGINE THAT SIDE OF IT.
UM, AGAIN, THERE'S NO, THERE'S NO REVENUE COMPONENT, UH, TO THE, TO THE BOND ITSELF.
SO YOU'RE NOT ISSUING A FINANCING TOOL, RIGHT.
UM, YOU'RE, YOU'RE ISSUING A TOOL THAT WOULD ALLOW THE BUSINESS TO ACTUALLY, THE BUSINESS HAS TO AGREE TO ACTUALLY HAVE THEIR, UH, REAL OR PERSONAL PROPERTY BE MAINTAINED, UM, TITLED IN THE, IN THE NAME OF THE CITY FOR A PERIOD OF TIME, WHICH SOME BUSINESSES HAVE, HAVE CHALLENGES WITH.
BUT, BUT WHAT IT ALLOWS FOR THAT OPPORTUNITY IS TO HAVE NOW OVER A CERTAIN PERIOD OF TIME, WHICH WILL ALL BE DONE BY AND APPROVED BY, BY THE CITY.
AND ALSO, I JUST WANNA NOTE THAT THE ONLY PART THAT CAN BE ABATED IS LOCAL.
SO YOU CAN'T ABATE COUNTY, YOU HAVE TO WORK WITH THE COUNTY.
YOU CAN'T ABATE ANY OTHER TAXING JURISDICTION.
YOU CAN ONLY ABATE SPECIFICALLY WHAT, WHAT THE, WHAT THE CITY WOULD ACTUALLY HAVE, UM, WOULD'VE COLLECTED DURING THAT TIME.
BUT IT DOES ALLOW US ANOTHER ATTRACTION TOOL.
AND YOU'VE SEEN THIS, SEEN THIS TYPE OF TOOL UTILIZED IN A NUMBER OF PLACES.
SO WE'RE, WE'RE FURTHER EVALUATING, UM, HOW TO, HOW TO POTENTIALLY IMPLEMENT, UH, UH, SOMETHING OF THAT NATURE.
SO THAT'S THE ONE I WANTED TO JUST, UH, TO HIGHLIGHT.
UM, IN ADDITION TO GROCERY STORE INCENTIVES, 'CAUSE WE'VE HEARD A LOT ABOUT GROCERY STORES.
CAN YOU GIVE US AN UPDATE ON THAT? AND SO, AND SO WE'VE HEARD A LOT ABOUT GROCERY STORES.
I'VE HEARD, I'VE HEARD THE, THE, THE ATTENTION FROM FOLKS AROUND GROCERY STORES.
AND SO WHEN I WORKED IN DC, DC HAD A GROCERY STORE INCENTIVE PROGRAM THAT BASICALLY ALLOW FOR, UM, CERTAIN FEES THAT ARE ASSOCIATED WITH GROCERY STORES TO EITHER BE WAIVED OR REDUCED, UM, JUST TO ATTRACT SPECIFICALLY FOR, FOR GROCERY STORES.
UM, AND SO THAT'S, THAT'S ANOTHER, ANOTHER AREA THAT, THAT WE'RE EVALUATING AND MAKING SURE THAT, YOU KNOW, THAT'S SOMETHING THAT WE CAN POTENTIALLY IMPLEMENT.
BUT LIKE YOU SAID, UH, ONE OF THE FIRST THINGS YOU SAID ABOUT HOUSING AND STUFF LIKE THAT, IF WE DON'T HAVE GROCERY STORES OR, OR WE DON'T HAVE A MOVIE THEATER, A LOT OF THAT IT'S MARKET DRIVEN.
IT'S BECAUSE OF THE DEMOGRAPHICS.
IT COULD BE LACK OF DENSITY, UH, LACK OF LACK HOUSING IN A AREA WHERE WE LOST FULL-TIME RESIDENTS.
WELL, GUESS WHO GOES TO MOVIE THEATERS ARE THOSE RESIDENTS.
SO, UH, IF WE WANNA SUPPORT OUR BUSINESSES, THE BEST WAY TO DO SO IS THROUGH CURATING BETTER DEMOGRAPHICS IN OUR CITY.
HAVING FUN YET, IT'S BEEN AN EXCITING FEW MONTHS, RIGHT? PLENTY.
YOU ENJOY LIVING IN MIAMI BEACH? ABSOLUTELY.
THANKS TO, UH, THANKS TO SOMEONE'S RECOMMENDATION.
I DO NOTICE THAT I DON'T REMEMBER YOU HAVING GRAY IN YOUR BEARD DURING YOUR INTERVIEW PROCESS.
WELL, IT DOESN'T, YOU WEAR IT.
WELL,
I KNOW, I'M AWARE AS EXCELLENT.
SO, LET'S, UH, I THINK WE'RE CLOSING OUT B 24 OB 25 NB 17, MB 18, NB 11.
UH, WE, WE'VE HEARD HAD DISCUSSIONS.
THERE'S BEEN A FEW MOTIONS ON THAT, BUT NO.
AND THANK YOU HEATHER, AND THE REST OF THE ECONOMIC DEVELOPMENT TEAM.
LET'S, UH, LET'S HEAR FROM OUR FRIENDS ABOUT WHAT'S HAPPENING AT THE FILLMORE.
UH, MB SEVEN, LEMME CALL THAT REAL QUICK.
[NB 7. DISCUSS LIVE NATION'S PROPOSAL FOR THE RENOVATION OF THE FILLMORE THEATER]
MB SEVEN, DISCUSS LIVE NATION'S PROPOSAL FOR THE RENOVATIONS OF THE FILLMORE THEATER, MB SEVEN.DANIEL URI, ASSISTANT DIRECTOR OF FACILITIES AND FLEET HERE TO DISCUSS THE, UH, THE FILLMORE PROJECT.
UH, JUST TO GIVE EVERYONE, UH, A LITTLE PRIMER ON THE HISTORY OF HOW WE ARRIVED AT THIS SPOT.
UH, IN 2022, THE GEO BOND, UH, FOR ART AND CULTURE WAS PASSED WITH, UH, $29.1 MILLION BEING EARMARKED FOR THE RENOVATION OF THE FILLMORE.
UH, IN JANUARY OF 24, UH, WE WERE, UH, DIRECTED BY COMMISSION TO EXPLORE, UH, POTENTIAL NEW THEATER TO REPLACE THE FILLMORE.
IN APRIL OF THAT YEAR, UH, THERE WAS A DISCUSSION AT COMMISSION
[01:00:01]
TO COMPARE THE MERITS OF A NEW THEATER VERSUS A FULL REHABILITATION GUT RENO OF THE FILLMORE.WE TOOK THIS IDEA AND, UH, MANY PICTURES AND HISTORY AND BACKGROUND TO A PUB VIRTUAL PUBLIC MEETING IN AUGUST OF 24.
AND THE RESIDENTS, UH, SHOWED NO SUPPORT FOR A NEW THEATER OR A GUT RENOVATION.
SO THEY RESOUNDINGLY SAID, THIS IS A FANTASTIC VENUE.
UH, IT'S ALREADY A FANTASTIC VENUE.
SO WE EXPLORED A MORE TARGETED, WE ENGAGED LIVE NATION IN EXPLORING A MORE TARGETED RENOVATION THAT ACCOMPLISHED TWO THINGS.
ONE, IT ADDRESSED ALL OF THE RECOMMENDATIONS FROM THE LAST FACILITIES ASSESSMENT, WHICH WERE STRUCTURAL, UH, MECHANICAL ISSUES THAT A BUILDING OF THAT AGE IS GONNA HAVE.
AND IT ALSO ADDRESSED ALL OF THE OPERATORS CRITICAL NEEDS, WHICH INCLUDED PRODUCTION GEAR, ACOUSTICS, BACKSTAGE FACILITIES, TO BRING THIS THEATER TO WHAT, WHAT IT SHOULD BE.
SO, UH, WITH THAT, WE'RE NOW CONSIDERING A PROPOSAL FROM LIVE NATION TO ENTER INTO A PARTNERSHIP FOR THIS RENOVATION.
UH, AND I WILL, UH, HAND THIS OVER TO SOMEBODY THAT REQUIRES, UH, NO INTRODUCTION, UH, TO TALK ABOUT LIVE NATION'S INVOLVEMENT AS, AS A PARTNER TO THE CITY AND THE HISTORY OF THE THEATER ITSELF.
I THOUGHT IT WOULD BE HELPFUL AND PRODUCTIVE FOR EVERYBODY IN THE MEETING, AND CERTAINLY OUR COMMISSIONERS TO HAVE A LITTLE BACKGROUND HISTORY.
YOU KNOW, WHEN I SERVED ABRAHAM LINCOLN WAS PRESIDENT
AND THAT'S WHAT THAT AUDITORIUM DID.
AND JACKIE GLEASON, UH, EMANATED HIS NATIONAL SHOW FROM THE, MY BEACH AUDITORIUM.
FAST FORWARD IN 19, THAT WAS IN 1950.
THAT BEGAN 75 YEARS AGO, BELIEVE IT OR NOT.
AND THEN IN 1976, I WAS PART OF THE COMMISSION THEN THAT RENOVATED IT, AND WE TURNED IT INTO THE, THE, THE PEOPLE CALLED IT TOPA, WHICH WAS ACTUALLY THE THEATER OF PERFORMING ARTS, WHERE BURAKOFF AND PAVAR AND THAT WHOLE WONDERFUL GROUP OF CELEBRITIES AND, AND ACTS TOOK PLACE THEN.
AND THEN ABOUT, UH, 14, 15 YEARS AGO, THE CITY OWNED AND MANAGED THAT BUILDING, DECIDED TO OUTSOURCE IT.
AND THROUGH A RIGOROUS, UH, BIDDING PRO PROJECT, THEY AWARDED LIVE NATION THE OPPORTUNITY TO MANAGE AND OPERATE IT.
AND THEY TURNED AROUND A MILLION DOLLAR A YEAR LOSS INTO A $1.2 MILLION GAIN FOR THE CITY.
ABOUT A HUNDRED SHOWS AND EVENTS APPEAR THERE THROUGHOUT THE YEAR WHEN THE BOND ISSUE PASSED ABOUT THREE YEARS AGO.
UH, AND I WAS PART OF GETTING IT PASSED.
PART OF THE 150 DO $150 MILLION BOND ISSUE WAS $29 MILLION FOR THE POLICE IN FILLMORE.
THE REST OF THE MONEY WAS FOR ALL OF THE OTHER VENUES, ABOUT OVER 20 OF THEM AROUND THE CITY TO BE UPGRADED, IMPROVED FROM THE BOTANICAL GARDENS TO HOLOCAUST MEMORIAL TO THE, UM, ART DECO CENTER.
AFTER A STUDY THAT THE CITY ENGAGED MC HARRY, THEY CAME BACK WITH A LAUNDRY LIST OF ITEMS FROM A LEAKY BASEMENT TO ALL KINDS OF THINGS THAT WERE NECESSARY NEEDED.
AND I SEE THIS NOW AS A LEGACY FOR THIS CITY COMMISSION TO MOVE FORWARD WITH A GREAT OPPORTUNITY, A PARTNERSHIP WITH LIVE NATION.
YOU'RE GONNA HEAR TODAY WHAT LIVE NATION IS PLANNING TO DO WITH THE BUILDING TO UPGRADE IT, IMPROVE IT.
THEN YOU HEAR FROM THE FINANCIAL ASPECT OF HOW WE CAN MOVE FORWARD.
HOPEFULLY THIS, UH, COMMITTEE WILL RECOMMEND IT ALONG WITH THE MANAGER TO HAVE THE COMMISSION, FULL COMMISSION DEAL WITH IT, AND DIRECT THE ADMINISTRATION, THE MANAGER, TO WORK OUT THE DETAILS SO THAT WE CAN START CONSTRUCTION ON THIS WHILE THE HOTEL'S BEING BUILT TO WAIT MUCH LONGER, I THINK WILL BE A MISTAKE.
ANYWAY, THAT'S A LITTLE BIT OF THE BACKGROUND.
[01:05:01]
FOR YOUR FEW MINUTES, AND SURE.SO, UH, WE HAVE A COUPLE OF, UH, REPRESENTATIVES FROM LIVE NATION HERE TODAY.
NAT BURNS, WHO'S THE GENERAL MANAGER OF THE FILLMORE, DOES A GREAT JOB, UH, OPERATING THE VENUE.
WE HAVE TREVOR RALPH, WHO'S THE, THE VICE PRESIDENT OF OPERATIONS FOR LIVE FOR LIVE NATION.
AND THEN ON THE PHONE WE ALSO HAVE, UH, BEN WHEEN THE CFO FOR LIVE NATIONS.
AND JOHN AARONS, UH, THE, UH, SENIOR VICE PRESIDENT OF REAL ESTATE.
NOW, JUST AS YOU'RE HEARING THIS PRESENTATION, REALLY WHAT WE'RE SEEKING TODAY IS AN UNDERSTANDING OF SOME THRESHOLD TERMS THAT WE HAVE COME TO, WHICH INCLUDE, UH, A PRICING OF THE OVERALL RENOVATION.
THE PRICING CAME IN WITH A, A GAP IN FUNDING OF ABOUT 5.3 MILLION.
UH, LIVE NATION IS WILLING TO COVER THAT AND A LITTLE BIT MORE, UH, IN EXCHANGE FOR A NEW MANAGEMENT AGREEMENT THAT WOULD COMMENCE AT THE TERMINATION OF THEIR CURRENT ONE, UH, FOR, UH, DURATION, UH, NINE YEARS, 365 DAYS.
SO THE CURRENT ONE, THE, THE LAST RENEWAL FIVE YEAR RENEWAL COMMENCES JANUARY OF 2026 WOULD END JANUARY OF 30 31.
AND THE NEW AGREEMENT, WHICH THEY WILL BE REQUESTING, WILL BEGIN JANUARY 30 31 AND PROCEED, UH, FOR NINE YEARS, 360 4.
AND, AND LEMME JUST, IF I CAN JUST ASK, SO YES, PLEASE.
SO THEY'RE SEEKING A, A RENEWAL, A A FOUR YEAR, I'M SORRY, A FIVE YEAR MANAGEMENT AGREEMENT.
ONE EXISTS WITH OTR WITH AN OPTION TO RENEW, BUT THEY'RE SEEKING AN A FIVE YEAR MANAGEMENT AGREEMENT, EFFECTIVE 2031.
THEY'RE SEEKING A FIVE YEAR WITH A FOUR YEAR OPTION WITH A 4 3 3 4.
BUT IT'S A FIVE YEAR MANAGEMENT AGREEMENT AND THEN A FOUR YEAR OPTION AFTER, AFTER THE FIVE YEAR MANAGEMENT AGREEMENT.
AND THAT'S, AND BUT EVEN THOUGH, SO THEY DON'T OWN THE PROPERTY, THIS IS A MANAGEMENT AGREEMENT.
THEY'RE GOING TO BE CONTRIBUTING TOWARDS THE PERMANENT LONG-TERM INVESTMENTS.
THEY ARE, THEY'RE GOING TO BE CONTRIBUTING, UH, AND I DON'T WANT TO STEAL THEIR THUNDER, BUT 6.5 MILLION, WHICH IS 1.2 MILLION OVER THE FUNDING GAP TO ALLOW US TO DO A LITTLE BIT MORE WORK.
UH, WE ARE CONCERNED ABOUT THE, THE CAMPUS AS A WHOLE, BECAUSE WE'RE GONNA HAVE THIS BIG, BEAUTIFUL, UH, HOTEL NEXT DOOR.
WE WANNA MAKE SURE THAT WE ADDRESS THE EXTERIOR OF THE, THE LANDSCAPING AND WHATNOT SO THAT THE, THE CAMPUS LOOKS, UH, GREAT IN ITS ENTIRETY AS OPPOSED TO ONE LOOKING OLDER THAN THAN.
SO THEY'RE GONNA BE CONTRIBUTING $6.5 MILLION TOWARDS IMPROVEMENTS THAT WE'RE GOING TO END UP OWNING AT THE END OF THE DAY.
WITH THAT, THOUGH, UH, PJ DO YOU HAVE THE PRESENTATION? THE SCHEMATICS? YEP.
THANK, THANK YOU VERY MUCH FOR YOUR TIME TODAY.
AND, UH, IT'S BEEN A, IT'S BEEN A ROAD, BUT, UH, WE'RE EXCITED, WE'RE EXCITED WITH THIS PLAN.
UM, LIVE NATION, I'M ACTUALLY, SORRY, JUST INTRODUCE YOURSELVES.
I'M TREVOR RALPH, UH, VICE PRESIDENT OF OPERATIONS FOR, FOR THE SOUTHEAST FOR LIVE NATION.
I'M THE GENERAL MANAGER OF THE FILMER MIAMI BEACH.
SO LIVE NATION HAS AN IN-HOUSE, UH, ARCHITECTURE AND CONSTRUCTION DESIGN STUDIO.
UH, JOHN AARONS IS ON THE LINE, UH, WITH OUR BLUEPRINT STUDIO.
HE'S GONNA TALK YOU THROUGH A LITTLE BIT OF WHAT THE DESIGN LOOKS LIKE NOW WITH THE NEW SCOPE.
UM, CAN YOU FORWARD TO THE NEXT SLIDE IN THIS? DO THIS? NOPE, ONE MORE BACK.
UM, SO I'LL TALK HIGH LEVEL OF THE SCOPE OF WORK.
SO, AS WAS JUST MENTIONED, UM, ONE OF THE, ONE OF THE, UH, CRITICAL PIECES OF THE PROJECT THAT WAS DETERMINED AS WE WERE GOING THROUGH THE PROCESS OF KIND OF DETERMINING WHAT OUR SCOPE OF WORK WAS GOING TO BE WAS, WAS A REFRESH TO THE EXTERIOR OF THE BUILDING.
SO, UM, SO HIGH LEVEL, THE EXTERIOR OF THE BUILDING WE'RE REPAINTING THE ENTIRE EXTERIOR, UM, PUTTING A NEW MARQUEE ON, REFRESHING THE LANDSCAPING, AND THEN MORE STRUCTURAL PIECES ON THE EXTERIOR WERE REPLACING THE ENTRANCE DOORS.
UM, CONSIDER THEY'RE PAST THE END OF THEIR LIFE, WHICH I THINK AS ALL OF YOU KNOW, A LOT OF THE SYSTEMS IN THIS BUILDING ARE.
UM, SO ALSO THEN OVERARCHING ON THE BUILDING, WE'RE UPDATING THE MECHANICAL SYSTEMS IN THE BUILDING AND THEN GOING THROUGH EACH ONE OF THE EXISTING, UM, PUBLIC FACING TOILET AREAS IN THIS BUILDING AND UPGRADING PLUMBING AND ALL OF THE FINISHES IN THESE TOILET ROOMS TO MAKE THEM FUNCTIONAL FOR, YOU KNOW, ANOTHER 30 YEARS INTO THE FUTURE.
UM, ONE OF THE THINGS THAT WAS ALSO MENTIONED IS WE REALLY FELT STRONGLY THAT WITH THE GEO BOND FUNDING THAT WAS BEING PUT INTO THE BUILDING, WE WANTED TO MAKE SURE THAT WE WERE, UM, PROVIDING ENOUGH NEWNESS WHEN THIS WAS REOPENED SO THAT WHEN PEOPLE COME IN, IT'LL FEEL LIKE A COMPLETE REFRESH.
SO IN ADDITION TO THE, THE BASIC GEO BONDING, GEO BONDING FUNDING THAT WAS
[01:10:01]
PROVIDED FOR LOBBY SPACES FOR NEW CARPET AND NEW WALL FINISHES AND NEW LIGHTING, UM, WE ALSO ARE GOING TO GO IN AND REDO THE BARS AND RECREATE THEM AND, AND HAVE ALL NEW, UM, BAR EQUIPMENT IN THOSE.SO WHEN YOU COME IN, THE ENTIRE THING WILL BE NEW AND FRESH AND, AND CON CONSISTENT WITH WHAT WE'RE BUILDING NOW IN OTHER MARKETS.
SO IT'LL BE, UM, SET UP FOR SUCCESS FOR THE NEXT 20 TO 30 YEARS.
UM, IN ADDITION TO THAT, WE ARE, UM, DOING A PAINTING AND REFRESH OF THE OFFICE SPACE ON THIS LEVEL AND IN, YOU SEE IN THE PURPLE AND THE UPPER CORNER, UM, WE'RE GOING TO, UM, REVAMP THE PREMIUM LOUNGE.
IT'S IN THE UPPER CORNER OF THE BUILDING.
UM, THE BIGGEST STRUCTURAL PIECE THAT WE'RE, THAT WE'RE PLANNING IS IN THE LOWER, UM, SEATING AREA.
THERE'S THOSE CURRENT PLATFORMS THAT ARE IN THERE.
WE'RE PROPOSING TO TAKE THOSE OUT TO INCREASE THE STANDING LA THE STANDING AREA ON THE FLOOR A LITTLE BIT, MAKE IT A LITTLE BIT LARGER.
AND SO IT ALLOW US TO HAVE, UH, MORE EFFICIENT SEATING WHEN WE ACTUALLY DO SEATED EVENTS IN HERE.
BUT THE REMAINING, UM, CURRENT TERRORIST FIXED SEATING THAT'S IN THE BUILDING WILL REMAIN, BUT WILL BE COMPLETELY REFRESHED AS PART OF THIS PROJECT.
SO THERE'LL BE NEW SEATS IN THERE AND THE, AND THE INTERIOR, THIS WILL BE PAINTED.
WE'RE ALSO ADDING, IF YOU SEE IN THE LIGHT PURPLE UP NEAR THE PROSCENIUM OPENING OF THE STAGE.
AND WE'RE PROPOSING TWO, UM, VIP PLATFORMS THAT'LL BE ACCESSED FROM THE SIDE, UM, BACK OF HOUSE.
WE ARE PROPOSING SOME MODIFICATIONS TO THE LOADING FACILITIES, UM, AFTER THE LOADING DOCK WAS MODIFIED AS PART OF THE HOTEL CONSTRUCTION.
UM, WE, THERE'S JUST SOME, SOME FURTHER IMPROVEMENTS THAT WE THINK WOULD REALLY HELP US TO BE ABLE TO, UM, MAKE THAT LOADING SITUATION AS BE THE BEST IT CAN BE BASED ON THE SPACE THAT WE HAVE ALLOCATED.
UM, SO THERE'LL BE SOME MINOR MODIFICATIONS BACK THERE IN ADDITION TO, UH, COMPLETE REFRESH OF ALL OF OUR DRESSING ROOMS ON THIS LEVEL AND THE OFFICES ON THIS LEVEL.
UM, AGAIN, ALL OF THESE AREAS WILL GET NEW LIGHTING, PAINTING, CARPET, FLOORING.
ON LEVEL TWO, AGAIN, WE'RE PROPOSING ALL, ALL NEW FINISHES IN THE LOBBY SPACE, THE MAIN LOBBY FRONT FACING ON THIS SPACE, AND WITH THE DRESSING ROOM FACILITIES THAT ARE ON THE BACK OF HOUSE HERE.
ALSO NEW SEATING UP HERE IN THE, UH, ON THE SECOND LEVEL.
UM, WE'RE PROPOSING TO NOT DO ANY MODIFICATIONS ON LEVEL THREE, UM, BECAUSE THEY'RE JUST THE, YOU KNOW, IT WITH THE DELAY IN THE, IN THE GEO BOND PROJECT ON SOME OF THE PROJECTS THAT ARE ORIGINALLY ENVISIONED WHEN THAT MONEY WAS ALLOCATED.
NOW THAT WE'VE HAD A LOT OF COST ESCALATION, UM, SINCE THAT TIME PERIOD, THERE WERE A FEW SCOPES OF WORK THAT, UM, WE JUST COULDN'T FIT INTO THE FUNDING AND, AND THE LEVEL THREE MODIFICATIONS WERE WAS ONE OF THOSE.
UM, CAN YOU GO TO THAT, THAT, I THINK THAT'S ALL.
THIS IS JUST, THIS IS JUST SHARING WHAT I JUST SAID.
WE'RE, WE'RE, WE'RE REFRESHING ALL THE SEATING IN THIS AREA AND THE FLOORING AND THIS PORTION OF THE AUDITORIUM.
UM, ANY HIGH LEVEL QUESTIONS FOR SCOPE OF WORK HERE, WHAT WE'RE DOING, I'LL ASK A SIMPLE ONE, THEN I'LL GIVE IT TO MY COLLEAGUES FOR, UH, THE MORE DETAILED ONES.
AND I'M ACTUALLY GOING A BIT OFF TOPIC.
AND, UM, HOW MANY DAYS PER YEAR, UH, OR EVEN IF YOU BREAK IT INTO A MONTHLY BASIS, IS THE FIELD MORE ACTIVATED WITH PROGRAMMING IN THE EVENINGS? YEAH, ABSOLUTELY.
SO BETWEEN OUR PROMOTED EVENTS, OUR TOURING CONCERTS, OUR, UH, INTERNAL RENTALS, WHICH CAN BE THE VALETS YOU SEE THROUGH SOMETIMES HERE AND SPECIAL EVENTS ARE PROBABLY ACTIVE ABOUT 125 TO 150 DAYS A YEAR.
AND THAT TENDS TO BE IN THE EVENINGS FROM SIX OR 7:00 PM I KNOW THERE'S PROBABLY ONE-OFFS, BUT IN GENERAL, SIX TO 7:00 PM THURSDAY, FRIDAY, SATURDAY, UH, UNTIL 10 11 WHENEVER THE SHOWS ARE OVER.
SO YEAH, IT TENDS TO BE IN THE EVENING TIME.
DOORS AROUND SEVEN SHOWS TYPICALLY END AROUND 11 O'CLOCK.
WE DO HAVE THOSE OUTLIERS CONFERENCES, YOU KNOW, CHILDREN'S SHOWS, ET CETERA, WHERE THEY MIGHT BE IN THE MORNING OR THE AFTERNOON, AND A HANDFUL OF SHOWS THAT MIGHT GO ON A LITTLE BIT LATER IF IT'S A COMEDY ACT THAT STARTS AT NINE AND GOES UNTIL 11 OR 1130.
SO, AND, AND WHERE I'M GOING WITH THIS IS, AND I GUESS THIS ISN'T SO MUCH A LIVE NATION OR MAYBE EVEN FILLMORE DISCUSSION, MAYBE I'M SAYING THIS TO OUR FACILITIES TEAM, JOHN VAR.
I'M LOOKING, UH, YOU PERHAPS THERE'S, THERE'S A BIG OPPORTUNITY BECAUSE THAT, THAT IS JUST CRITICAL SPACE, YOU KNOW, FOR OUR CITY, IT'S IN THE HEART OF OUR GROWING DOWNTOWN ARTS AND CULTURE AREA.
UM, ARE THERE USAGES THERE THAT COULD UTILIZE THE FILLMORE THAT COULD SERVE AS LIKE A PUBLIC BENEFIT? UM, SUMMER CAMPS? UH, I DON'T KNOW, YOU KNOW, IF THAT WOULD BE A PROPER USAGE, BUT THE USAGE TIMES WOULD BE ABSOLUTELY MUTUALLY EXCLUSIVE WITH THE TIMES THE FILLMORE TENDS TO OPERATE.
UH, WE'RE MAKING SUCH A SIGNIFICANT, UH, OUTLAY USING TAXPAYER MONEY, YOU KNOW, EVEN MORE USAGES FOR TAXPAYERS.
I, I'M NOT HELL BENT ON IT, I'M JUST POSING
[01:15:01]
THAT OUT THERE INTO THE UNIVERSE.WELL, AND I'D LIKE TO BUILD ON THAT IF I MIGHT BEFORE YOU, BEFORE YOU GUYS ANSWER.
UM, YOU KNOW, EVERYBODY IN THE CITY KNOWS THAT WE'RE LOSING OUR MOVIE THEATER AND THERE ARE LOTS OF VERY UNDERSTANDABLE BUSINESS REASONS FOR THAT.
IT'S HEARTBREAKING 'CAUSE IT'S INCONCEIVABLE THAT WE'D HAVE TO GO TO GOD AWFUL LA VENTURA TO, TO THE MALL TO GO SEE A MOVIE.
SO I AM ACTUALLY WONDERING, AND I KNOW IT'S A LITTLE BIT OF A DIFFERENT BUSINESS MODEL, BUT THE FACILITY IS THERE.
CAN YOU, WOULD YOU BE ABLE TO HOST, UM, YOU KNOW, ONCE A WEEK, LIKE A TUESDAY NIGHT FIRST RUN MOVIE OR, YOU KNOW, HAVE, I DON'T KNOW HOW WE WORK THE LOGISTICS OF IT AND, BUT THE FACILITY IS WHAT'S NEEDED.
THE COST IS ALREADY THERE, RIGHT? YOU'VE GOT, SO IT'S NOT LIKE WE HAVE TO FIND A NEW PLACE TO HAVE A MOVIE THEATER.
WE HAVE A THEATER THAT'S THERE.
IS IT GONNA BE SOLD OUT? IT IS NOT BECAUSE IT'S A LARGE CAPACITY VENUE, BUT COULD WE PUT TOGETHER, UH, AND I'M HAVING THE SAME CONVERSATION WITH ALL THE RELEVANT ARTS AND CULTURE ORGANIZATIONS.
I'VE TALKED TO THE PEOPLE AT THE BANDSHELL, I'VE TALKED TO THE PEOPLE AT THE WILSONIAN, BUT YOU'RE ALSO AN ARTS AND CULTURE ANCHOR INSTITUTION, AND YOU'RE RIGHT IN THE HEART OF SOUTH BEACH AND, YOU KNOW, AND SO ARGUABLY IT MAKES THE MOST SENSE FOR YOU GUYS TO BE ABLE TO DO IT.
SO IS THAT WITHOUT, UM, BEING ABLE TO, UH, ELUCIDATE HERE AND NOW HOW THAT WOULD WORK? IS THAT SOMETHING YOU COULD COMMIT TO SERIOUSLY INVESTIGATING AND WORKING TO BRING FORWARD A, YOU KNOW, A WEEKLY MOVIE EVENT BARRING UNFORESEEN CIRCUMSTANCES OR BIMONTHLY MOVIE EVENT, YOU KNOW, TWICE A MONTH, UM, A FIRST RUN OR CLOSE TO FIRST RUN MOVIES THAT WOULD NOT MAKE UP HAVING AN 18 SCREEN FIRST RUN MOVIE HOUSE DOWNTOWN, BUT WOULD FILL THE GAP A LITTLE BIT? YEAH, ABSOLUTELY.
CAN WE, CAN WE GET THAT ON THE, YOU KNOW, ANYBODY THAT WANTS TO DO A FILM FESTIVAL, WE'D LOVE TO TALK TO THEM COMMISSION, BECAUSE THAT WAS, I'D LOVE HOW CONCISE THAT WAS.
WELL, NO, YEAH, NO, WE, WE ABSOLUTELY, THE SPACE IS THERE.
WE ARE HAPPY TO HAVE ANY AND ALL CONVERSATIONS AROUND USING THESE SPACE.
WE'VE DONE MOVIE SCREENINGS IN THE PAST.
AND, AND JUST AS A GENERAL NOTE, IN TERMS OF USAGE OF THE BUILDING, I JUST WANNA MENTION, WE PARTNER OFTEN WITH MIAMI BEACH, UH, POLICE DEPARTMENT.
THEY FREQUENTLY HAVE DONE TRAININGS AT OUR BUILDING.
YOU KNOW, IF, IF THE BUILDING IS OPEN, IT'S AVAILABLE.
WE DON'T HAVE A SHOW, YOU KNOW, WE'RE OPEN TO THOSE IDEAS.
AND, AND JUST TO JUMP IN THERE, WE, WE DO ACTUALLY HAVE A MOVIE SERIES AND IN A COUPLE OF OUR VENUES AND OTHER MARKETS, IT'S NOT FIRST RUN, BUT IT IS A, UH, IT'S A SUMMERTIME SERIES WHERE, YOU KNOW, EVERY TUESDAY NIGHT, WEDNESDAY NIGHT, WE'LL HAVE, WE'LL HAVE A, YOU KNOW, A MOVIE PLAYING.
UH, SO WE, WE'VE DONE THAT IN OTHER MARKETS, WE CAN DO IT HERE.
AND THEN I'D ALSO LIKE TO BRING UP ANOTHER OPPORTUNITY, WHICH IS, YOU KNOW, YOU KNOW, GIVEN THAT, YOU KNOW, WE'RE NOT TAKING UP 365 DAYS, ARE THERE NONPROFITS THAT NEED MEETING SPACE? STUFF LIKE THAT AROUND, AROUND TOWN WHERE, YOU KNOW, WE, WE WOULD AGREE TO DO A DEAL WHERE, YOU KNOW, X AMOUNT OF DAYS A YEAR, NONPROFITS CAN, CAN, CAN USE A VENUE FOR COSTS, YOU KNOW, AND, YOU KNOW, WE, WE WOULDN'T MAKE A PROFIT.
SO I, I THINK THERE'S OTHER, OTHER USAGES WE, WE, WE, WE CAN, UM, USE THE VENUE FOR, UH, AROUND TOWN AND, AND HAPPY TO EXPLORE THOSE.
YEAH, I THINK, I THINK THAT'S A REALLY IMPORTANT CONVERSATION POINT THAT YOU, UM, DANIEL SHOULD REALLY EXPLORE TO THE FULLEST.
I MEAN, THE DIFFERENCE BETWEEN THE, WHAT IS NOW THE MIAMI BEACH BAND SHELL, BUT USED TO BE THE NORTH BEACH BAND SHELL, UM, AND HOW IT WAS ACTIVATED FOR THE LAST 20 YEARS OR SO, UM, VERSUS HOW IT'S BEEN ACTIVATED NOW THAT RHYTHM NATION IS, I ALWAYS DO THAT RHYTHM FOUNDATION,
UM, RHYTHM FOUNDATION HAS TAKEN IT OVER.
IT'S GONE FROM, YOU KNOW, A SOMEWHAT UND FACILITY, UM, WITH EVENTS ONCE A WEEK, MAYBE TO EVENTS TWO OR THREE TIMES A WEEK, AND ALL DIFFERENT KINDS OF EVENTS ATTRACTING ALL DIFFERENT KINDS OF, UM, DEMOGRAPHICS AND POPULATION GROUPS AND INTEREST GROUPS.
AND IT HAS BEEN TRANSFORMATIONAL TO THAT PART OF THE CITY.
AND THE REASON I SAY IT IS, 'CAUSE WE SPOKE AT LENGTH ABOUT ECONOMIC DEVELOPMENT AND THE SMALL BUSINESSES AROUND THE BANDSHELL NOW ARE BLOSSOMING AND THRIVING BECAUSE PEOPLE GO SEE A SHOW, BUT THEY GET A SLICE OF PIZZA BEFORE, OR THEY STOP FOR DRINKS BEFORE THEY GO OUT TO DINNER AFTERWARDS.
AND THAT'S WHAT I WANT FOR THIS THEATER TO BECOME.
UH, YOU GUYS BRING IN GREAT ACTS, BUT IT'S LIKE A BIG DEAL WHEN YOU, YOU KNOW, YOU BUY YOUR TICKETS THREE MONTHS IN ADVANCE.
I WANT IT TO BE SOMETHING THAT EVERY WEEK OR EVERY COUPLE WEEKS PEOPLE CAN JUST WANDER INTO BECAUSE THERE'S SOMETHING GREAT GOING ON THAT LIKE, I'LL CALL IT THE RHYTHM FOUNDATION EFFECT, YOU KNOW, AND, AND SO IT WILL HELP WITH WHAT LYLE IS TRYING TO DO ON LINCOLN ROAD BECAUSE YOU'VE GOT ALL THESE RESTAURANTS THERE WHO ARE STARVING FOR CUSTOMERS, AND IF YOU'VE GOT PEOPLE COMING IN TO SEE A SHOW, THEN THEY CAN GO HAVE A BITE BEFOREHAND, GO GET ICE CREAM AFTERWARDS.
IT'S THE SYMBIOTIC ECONOMIC DEVELOPMENT ECOSYSTEM.
AND IF, IF YOU'RE ONLY USING 125 DAYS A YEAR, WE'VE
[01:20:01]
GOT A LOT OF ROOM TO GROW.AND, AND I WANT THAT TO BE A BIG PART OF THE CONVERSATION BEFORE YOU COME BACK, UM, TO THE FULL COMMISSION.
I DO HAVE SOME OTHER QUESTIONS.
UM, SO THANK YOU FOR SAYING YES SO EASILY.
UM, WHEN I TOURED THIS, LIKE, GOSH, IT WAS LIKE A, A YEAR, TWO YEARS AGO WHEN I WALKED THROUGH WITH YOU AND YEAH, ABSOLUTELY.
AND WE'RE LIKE, AH, YOU KNOW IT, BOY, WE NEED SOME WORK.
I REMEMBER IT REALLY STRUCK, STUCK WITH ME BECAUSE YOU WERE TALKING ABOUT HOW, UM, IT'S HARD ENOUGH TO GET AX TO COME TO THE, THE VERY TIP OF SOUTH FLORIDA BECAUSE IT'S, IT'S A MAJOR DETOUR.
BUT ON TOP OF THAT, THE STAGE LIGHTING WAS SO OLD AND, AND YOU COULDN'T EVEN BUY REPLACEMENT PARTS THAT PEOPLE WOULD HAVE TO HIRE THEIR OWN RIGGING.
AND SO THEY, IT ADDED TO THEIR COST TOURS AND IT WAS A PAIN IN THE ASS AND NOBODY WANTED TO DO IT.
SO IS THAT GOING TO BE FIXED IN THIS? YES, I THINK I COULD SPEAK, WE CAN SPEAK FOR THAT.
THIS WOULD IN INCLUDE, INCLUDE, UH, THEATRICAL LIGHTING SYSTEMS, AUDIO SYSTEMS, A FULL THEATRICAL SYSTEM UPGRADE.
SO THAT'S DEFINITELY ON THE PRIORITY LIST, AND I APPRECIATE YOUR REMEMBERING THAT.
AND SO IN THEORY, THAT WILL ALSO HELP ENGAGE MORE THAN THE 125 DAYS A YEAR, BECAUSE NOW YOU CAN SAY TO ALL THOSE BANDS OR ACTS OR WHATEVER, WHO SAID, I'D LOVE TO, BUT I DON'T HAVE BUDGET TO HIRE A LIGHTING RIG.
AND ALSO IT'S RENOVATED AND BEAUTIFUL AND COME ON DOWN.
TO NOT HAVE TO SUPPLEMENT, UH, DETERIORATING LIGHTING RINK IS GONNA BE A HUGE PLUS TO ANY ACT THAT COMES THROUGH HERE THAT THEY CAN COME IN AND IT'S ALREADY READY FOR THEM READY TO GO AND, AND IT'S BEAUTIFUL IN THE ROOM, SO, OKAY.
UM, THE NEXT QUESTION IS, UM, YOU SAID WE, THERE'S NO LONGER THE BUDGET TO ADDRESS LEVEL THREE UPGRADE, SO IT'S THE LEVEL THREE EXPERIENCE GONNA BE SIGNIFICANTLY DEFICIENT FROM LEVEL ONE AND TWO.
JOHN, YOU STILL ON? I, I'M, I'M ON
SO, UM, IT, IT, I GUESS IT, UH, I GUESS SIGNIFICANTLY LESS, IT'S ALL RELATIVE.
UM, EVERYTHING FROM, YOU KNOW, THE LOBBIES ON TWO DOWN WILL HAVE BEEN COMPLETELY RENOVATED, AND THE UPPER WILL JUST HAVE A, UM, WHAT'S ALREADY THERE.
YOU'RE, I MEAN, YOU'RE NOT EVEN GOING TO THROW A FRESH COAT OF PAINT ON IT.
I MEAN, I'M ASSUMING WE COULD DO A FRESH COAT OF PAINT WITHIN THE BUDGET THAT WE HAVE, AND LIKE MAYBE DEEP CLEANING THE CUSHIONS OF THE SEATS, UH, THE SEATS ARE BEING REPLACED.
THEY'RE BEING, BUT NOT ON THE THIRD FLOOR.
THE, IT'S THE, THE EXTERIOR, THE, THE SIDE LOBBY SPACES ARE THE AREAS THAT WE'RE TALKING ABOUT.
INSIDE THE AUDITORIUM WILL BE COMPLETELY REFRESHED.
OKAY, THAT'S WHAT I WANTED TO UNDERSTAND.
SO IS THERE THEN A POSSIBILITY OF, UM, YOU KNOW, AGAIN, AS WE'VE TALKED ABOUT, THIS IS A VERY EXPENSIVE PLACE TO LIVE, AND THERE ARE A LOT OF PEOPLE WHO ARE INTERESTED IN THE ARTS AND CULTURE WHO MIGHT NOT BE ABLE TO PAY FULL FREIGHT FOR, UH, YOU KNOW, FRONT OF THE SEAT HOUSE, UM, OR FRONT OF THE, UM, THE AUDIENCE SEAT, GOODNESS GRACIOUS.
UM, BUT COULD, IF YOU COULD DISCOUNT THE SEATS ON THE THIRD FLOOR IN A DIFFERENT STRATA THAN THE, THE FIRST AND SECOND FLOOR TO PERHAPS OFFER DEEPER DISCOUNT FOR FOLKS WHO MIGHT WANT TO SEE THE BAND OR THE SHOW WITHOUT NEEDING ALL THE BELLS AND WHISTLES THAT YOU WOULD GET FROM THE FIRST AND SECOND FLOORS? YEAH, THAT'S TYPICALLY HOW WE, I THINK WE CAN, I THINK WE CAN LOOK AT THAT.
UM, YOU KNOW, GENERALLY SPEAKING, THE, THE, THE THIRD LEVEL WILL BE RELATIVELY LOWER PRICED.
UM, BUT I, I THINK WE DO, WE DO ALREADY HAVE A PROGRAM IN PLACE.
I THOUGHT, UM, UM, NAT, YOU MIGHT BE ABLE TO SPEAK TO WHERE WE DO OFFER, YOU KNOW, AT LEAST TICKETS, UM, BEFORE THEY GO, UH, ON SALE OR WE HOLD BACK SOME TICKETS FOR, FOR PART OF THE COMMUNITY, UM, YOU KNOW, CONTINUE TO LOOK AT THAT.
WELL, I, I KNOW THAT THE OPPORT TIER ARE ALWAYS LESS EXPENSIVE.
I MEAN, ANYWHERE YOU GO, BUT I'M SAYING, CAN YOU PLEASE LOOK AT THAT IN A WAY THAT IS EVEN A DEEPER DISCOUNT? AND ALSO THERE IS THAT PROGRAM, BUT NOBODY KNOWS ABOUT IT.
NOBODY KNOWS HOW TO ACCESS IT.
CAN YOU, AS PART OF THIS, MELISSA, I DUNNO IF YOU'RE, IF YOU'RE HERE, CAN WE HAVE LIKE A MAJOR BLAST OUT TO THE UNIVERSE THAT WHEN THIS IS OPEN, THE FACILITY IS OPEN, RESIDENTS SHOULD PUT ON THEIR CALENDAR, WHATEVER IT IS, THE FIRST TUESDAY OF EVERY MONTH, THEY CAN GO AND I THINK YOU HAVE TO GO IN PERSON.
SO EVERY THIRD TUESDAY OF THE MONTH DURING OUR BOX OFFICE HOURS, UH, MIAMI BEACH CITIZENS, SPECIFICALLY STUDENTS AND SENIORS, THEY CAN COME IN PERSON TO THE BOX OFFICE AND BUY TICKETS TO THE NEXT MONTH SHOWS FOR AT $10.
AND WE DO RESERVE A SECTION, UM, UP IN THE MEZZANINE AT THE CURRENT MOMENT, UH, FOR THOSE TICKETS SPECIFICALLY.
AND IT'S ONLY FOR STUDENTS AND SENIORS.
THAT'S THE WAY IT'S CURRENTLY WRITTEN INTO, UH, IN THAT PROGRAM.
SO I WOULD ENCOURAGE YOU TO EXPAND IT TO EVERYBODY BECAUSE THAT IS A SELF-LIMITING, UM, OR, OR LOOK AT HOW YOU CAN MAKE THAT A DIFFERENT, UM, YOU KNOW, MIAMI BEACH RESIDENTS ACROSS THE BOARD.
MAYBE IF YOUR STUDENTS AND AND SENIORS IT'S $10, EVERYBODY ELSE GETS A 15% DISCOUNT OR FEES ARE WAIVED OR WHATEVER, LIKE, I THINK WE CAN EXPAND THAT.
AND I THINK THAT WILL GO A LONG WAY AS WELL.
UH, WE WANT YOU TO BE FULL ALL THE TIME.
WE WANT YOU TO EXPAND THE NUMBER OF DAYS
[01:25:01]
THAT YOU ARE HOSTING MAJOR EVENTS THAT AREN'T, YOU KNOW, SOME OF THESE BAR MITZVAH.NOT THAT THERE'S ANYTHING WRONG WITH THAT, BUT YOU KNOW, LIKE, LET'S, LET'S BRING THIS BACK TO WHAT IT COULD BE.
IT'S GOT THIS INCREDIBLE NAME AND HISTORY BEHIND IT AND LET'S MAKE IT, YOU KNOW, A DESTINATION VENUE.
UM, THE OTHER QUESTION I HAVE IS, UM, SOMEBODY SAID SOMETHING WHERE THE DESIGN WILL BE CONSISTENT WITH OTHER MARKETS.
UM, THE INTERIOR DESIGN WILL BE CONSISTENT WITH THE LEVEL OF WHAT OTHER MARKETS.
I, AND I WANNA MAKE SURE IT'S CONSISTENT WITH THE LEVEL OF WHAT YOU HAVE GOING ON IN OTHER MARKETS.
BUT THE DESIGN, AND I'M SURE THERE WILL HAVE TO BE REVIEWS, IS VERY SPECIFICALLY MIAMI BEACH.
WE HAVE VERY UNIQUE HISTORY IN THIS THEATER, AND IT SHOULD BE CALLED OUT AND, AND HIGHLIGHTED AND, YOU KNOW, BENIK COFFIN AND MUHAMMAD ALI AND PRESIDENTIAL CONVENTIONS, AND WHO KNOWS WHAT ELSE HAPPENED THERE.
I'M NOT THE HISTORIAN, BUT THAT SHOULD BE PART OF THE NARRATIVE.
WHEN YOU WALK IN, PEOPLE SHOULD ALMOST, AND I'M NOT SUGGESTING THIS, THE FIRE CHIEF WILL HAVE MY HEAD, BUT NOBODY SHOULD ACTUALLY STOP WHEN THEY WALK IN THE DOOR.
BUT WHEN THEY ARE MILLING AROUND BEFORE THE SHOW, THEY SHOULD BE LIKE, OH MY GOD, LOOK AT THAT AMAZING PHOTOGRAPH THAT HAPPENED TO YOU.
LIKE, I WANT IT TO BE THIS PLACE OF, OF DELIGHT AND, UM, RESPECT AND DISCOVERY, NOT JUST FOR THE SHOW THEY'RE GOING TO SEE, BUT FOR EVERYTHING THAT HAS HAPPENED THERE BEFORE, THAT'S WHY PEOPLE DON'T WANT IT TO BE TORN DOWN.
SORRY, I'LL, I'LL, I'LL JUMP IN.
SO A HUNDRED PERCENT WE ARE ON BOARD WITH THAT.
UM, ONE OF THE MOST IMPORTANT THINGS THAT WE CAN DO IS OPERATE A, A HISTORIC VENUE LIKE THIS ONE.
UM, BECAUSE IT'S SO INGRAINED IN THE COMMUNITY AND, AND TO THE POINT EVERYONE WAS MAKING EARLIER, WHAT'S WRONG WITH THIS VENUE? WHY WOULD WE REPLACE IT SO WE UNDERSTAND THE VALUE THAT IT HAS IN THE COMMUNITY AND REALLY WANNA POLISH THAT AND BRING THE HISTORY BACK.
AND WE'VE, WE'VE DONE THAT AT A LOT OF OUR HISTORIC BUILDINGS AND PLAN TO DO THAT HERE.
UM, WHAT, WHAT I MEANT WHEN, WHEN I WAS TALKING ABOUT THAT WAS THAT THE, THE QUALITY LEVEL OF WHAT WE'RE DOING WILL BE CONSISTENT WITH NEW VENUES THAT WE'RE BUILDING THROUGHOUT THE COUNTRY, RIGHT? UM, SO IT, IT WILL LOOK, IT'LL LOOK FRESH AND NEW WHEN YOU COME INTO THE SPACE.
UM, BUT IT DEFINITELY WILL HAVE A MIAMI BEACH FLARE TO IT AND TIE BACK INTO THE HISTORY WE'RE, WE'RE ALL ABOUT THAT.
THE, THE, THE OTHER PIECE THAT I, THAT I MENTIONED BEFORE THAT I JUST WANT TO REITERATE IS THAT IT'S, IT'S REALLY THE FUNCTIONALITY THAT, THAT WE'RE LOOKING TO IMPROVE WITH, SPECIFICALLY WITH REGARD TO THE BARS AND THE F AND B IN THE BUILDING.
SO WE'VE, SINCE THIS BUILDING WAS DONE IN 2007 AND 2008, UM, THE STATE OF THE ART ON WHAT WE DO FROM A POINT OF SALE SYSTEM TO HOW WE INTERACT WITH OUR GUESTS ON FOOD AND BEVERAGE HAS CHANGED DRAMATICALLY.
AND WE WANNA MAKE SURE THAT THIS VENUE IS STATE OF THE ART IN THAT EFFECT WHEN WE REOPEN.
SO, UM, THAT'S WHAT WE'VE INCORPORATED INTO THE PROJECT.
I DID GO BACK AND LOOK AT THE COST ESTIMATE AFTER WE JUST TALKED ABOUT THE LEVEL THREE.
WE DO HAVE NEW CARPET, NEW PAINT ON LEVEL THREE.
THE PIECE WE TOOK OUT WAS THE NEW LIGHTING ON LEVEL THREE.
UM, YOU KNOW, NAN, WHEN, WHEN WE DID THE TOUR, WE WERE IN THE, THE SUB-BASEMENT AND WITH YOUR OWN PAINT AND POSTERS THAT YOU FOUND, YOU CREATED THIS GREAT ICONIC HISTORY OF ALL THE, NOT ALL THE SHOWS, BUT LIKE THESE JAW DROPPING.
LIKE YOU COULD MAKE A BOOK OF JUST THE POSTERS OF ADS THAT HAVE COME THROUGH THE FILLMORE.
IN FACT, I WOULD ENCOURAGE YOU TO DO THAT BECAUSE IT WOULD SELL AND IT WOULD GENERATE REVENUE, UM, THAT YOU WOULD THEN SHARE WITH THE CITY.
BUT, UM, BUT IT, IT WOULD BE A GREAT COFFEE TABLE BOOK BECAUSE I COULDN'T BELIEVE IT.
YOU'RE LIKE, COME ON, LET'S GO SEE THE NEXT THING.
I'M LIKE, NO, BUT WAIT, BUT THIS GUY CAME AND THIS, YOU KNOW, IT'S ICONIC.
AND SO I'M SAYING LIKE, EVEN WITH, YOU KNOW, BUBBLEGUM AND BAILING WIRE, THAT HISTORY WAS ILLUMINATED IN SUCH GREAT WAY, BUT IT WAS IN THE, IN THE BASEMENT WHERE NOBODY SAW IT EXCEPT FOR THE PEOPLE WHO WORK THERE OR THE BANDS THEMSELVES.
SO THAT'S THE KIND OF THING THAT I'M TRYING TO REALLY MAKE SURE WE GET TO.
AND THEN THE, THE LAST THING, AND I PROMISE THIS IS THE LAST THING, PROMISE? YES.
UM, YOU PROMISED IT'S PART OF THE THING.
UM, WHAT IS BEING DONE WITH THE ROOF? ANYTHING OR NOTHING? THE ROOF FROM MY KNOWLEDGE IS, UH, ONLY A FEW YEARS OLD.
IT WAS DONE AS PART OF THE 2018, UM, GEO BOND PROJECT.
SO THE, THE ROOF IS ACTUALLY IN REALLY GOOD SHAPE.
SO DOES THIS, UM, IT'S ALL PART OF THE SAME THING.
DOES, DOES THIS FACILITY FALL WITHIN EITHER THE LINCOLN ROAD BID OR THE DDA? BECAUSE HERE'S WHAT I'M GETTING AT YOU.
I'M, I'M LOOKING AT IT AT, UM, THE SCREENSHOT FROM ABOVE AND I'M SURE IT'S SOUND AND THAT'S GREAT, BUT IT LOOKS LIKE CRAP.
AND SO NOW AS ROO GENERALLY DO, I MEAN THEY'RE NOT AESTHETICALLY DESIGNED, BUT NOW YOU HAVE A BAZILLION DOLLAR CONVENTION CENTER HOTEL, UM, THAT'S GONNA BE LOOKING DOWN AT THIS FACILITY.
YOU'VE GOT OTHER BUILDINGS THAT ARE COMING UP VERY HIGH RENT.
WHAT CAN WE DO WITHIN THIS BUDGET OR IF THERE'S ANOTHER FUNDING SOURCE FROM EITHER THE DDA OR FROM THE CONVENTION
[01:30:01]
CENTER HOTEL OR THE LINCOLN ROAD BID TO REPAINT THE ROOF.AND I WOULD ARGUE, PUT A MURAL ON IT.
YOU KNOW, LIKE YOU'VE SEEN, IT DOESN'T HAVE TO BE A FANCY MURAL, LIKE MAKE IT INTO A SWING POOL, MAKE IT INTO A, MAKE IT LOOK LIKE A MONSTER FARM.
MAKE IT LOOK LIKE SOMETHING SUPER BASIC.
WE DON'T HAVE TO HIRE A FAMOUS ARTIST, BUT TO MAKE IT LOOK LIKE A COOL DETAIL AS OPPOSED TO AN INDUSTRIAL AFTERTHOUGHT.
WE WILL, WE'LL TAKE THAT INTO CONSIDERATION WHEN WE'RE NEGOTIATING THE FULL CONTRACT.
I WILL PERSONALLY PAINT THE ROOF PRODUCER FERNANDEZ, PLEASE.
UM, SO SINCE WE'RE LOOKING AT THE BROAD, UH, BUSINESS TERMS, UM, WHAT IS GONNA BE THE DISTRIBUTION BACK TO THE CITY? SO WE, WE WILL BRING, UH, BEN WHEAT AND OUR CFO BACK, AND HE WAS ON THE SCREEN EARLIER, BEN, IF YOU WANNA SPEAK TO THE TERMS. YEAH.
SO, SO BEN, WHAT, WHAT WOULD BE THE ANNUAL DISTRIBUTION BACK TO THE CITY? SO WE'RE LOOKING AT A RENT INCREASE, UM, OF 10%, UH, ON THE CASH RENT, UH, GOING INTO THE EXTENSION, UH, WHICH SHOULD BE AROUND A LITTLE BIT OVER $1.2 MILLION.
AND IS, IS THERE ANY ANNUAL ESCALATION AFTER THAT? YEAH, WE'LL HAVE A 3% ANNUAL ESCALATOR.
UH, AND A, UH, CITY SURCHARGE WOULD GO FROM A BUCK 50 TO A DOLLAR 75, UM, PER YEAR.
UH, SO WHAT IS, WHAT HAPPENS IF CPI IF INFLATION RUNS HIGHER? UM, YOU KNOW, I'D LIKE US TO CONSIDER, UH, WHEN WE LOOK AT THAT 3%, UM, I'D LIKE US TO CONSIDER INDEXING, UH, ESCALATION TO INFLATION.
NORMALLY, NORMALLY WE CAN PUT IN, YEAH, WE CAN PUT IN, UH, 3%, UH, YOU KNOW, OR VERSUS WHATEVER THE CURRENT CPI IS.
GENERALLY WE CAP IT AT SOMETHING.
BUT THAT'S, THAT'S CERTAINLY SOMETHING WE CAN LOOK AT.
AND SO, UM, WE'RE GONNA BE GETTING A, UH, PER TICKET SURCHARGE TO THE CITY.
YOU ALREADY RECEIVE A DOLLAR 50.
THIS WOULD GO UP, UM, BY ABOUT 25% GO UP TO ABOUT, UH, DOLLAR 75.
BEN, CORRECT ME IF I'M WRONG, THE, THE 25% INCREASE TAKES EFFECT, UH, JANUARY OF 2026 AND THEN ANOTHER 25 CENTS IN 31.
YEAH, THIS WAS CONTEMPLATED FOR THE EXTENSION, BUT HAPPY TO LOOK AT AN INCREASE IN THE, YOU KNOW, IN, IN THE CURRENT DEAL.
IS, IS IT CONSISTENT ACROSS, UH, TICKETS OF ALL PRICE RANGES? OR, OR DOES, DOES THE, UM, DOES THE SURCHARGE TO THE CITY, UH, ESCALATE AS UH, TICKET PRICES GO UP? UH, NO.
IT IS BEEN A, IT IS BEEN A, A FLAT, A FLAT PER TICKET FEE.
UH, WHICH WHICH IS CONSISTENT WITH WHAT WE DO IN, IN, IN OTHER MARKETS AS WELL.
I'D LIKE FOR US TO CONSIDER, UH, YOU KNOW, YOU KNOW, YOU MAY HAVE, UH, A BASE, UH, SURCHARGE, UH, BACK TO THE CITY, BUT AS CERTAIN TICKET PRICES GO UP, PERHAPS, YOU KNOW, A BETTER SURCHARGE, UH, BACK, BACK TO THE CITY, UH, BECAUSE WE ARE MAKING A SIGNIFICANT INVESTMENT.
BUT, BUT WE WANNA MAKE SURE THAT THE TERMS, UH, CONTINUE TO, TO BE IN THE BEST INTEREST OF, OF THE CITY.
UH, BESIDES THAT, UM, I LIKE THE DIRECTION THAT WE'RE GOING IN.
I'M MOST PROUD THAT WE ARE SAVING THIS FACILITY.
UH, IT'S SOMETHING THAT OUR RESIDENTS WERE VERY PASSIONATE ABOUT.
UH, THERE WAS POTENTIAL TO DO MANY OTHER THINGS, BUT THE POTENTIAL OF SAVING OUR HISTORY, OF SAVING OUR CHARACTER, OF SAVING A FACILITY THAT IS CHERISHED BY OUR RESIDENTS AND OUR TAXPAYERS WHO ARE ULTIMATELY THE OWNERS OF THE FACILITY, UH, THAT'S IMPORTANT.
AND THE FACT THAT LIVE NATION IS CONTRIBUTING TOWARDS THAT VISION OF PRESERVING OUR HISTORY, OUR, OUR ARTISTIC FACILITY IS SOMETHING THAT, THAT I THINK OUR COMMUNITY VALUES AND WE APPRECIATE IT.
AND I JUST WANNA SAY THANK YOU FOR THAT.
AND I WOULD JUST ALSO MENTION MANY OF MY STAFF ARE MIAMI BEACH RESIDENTS AND THEY ARE ALL, AS AM I FIERCELY PROUD OF THIS BUILDING AND WE'RE VERY EXCITED TO BRING IT UP TO PAR AND, AND SEEING SOME IMPROVEMENTS THERE.
SO IF I CAN, UH, CHAIR, I THINK COMMISSIONER BOT WILL BE MAKING THE FOLLOWING RECOMMENDATION, UH, TO RETURN TO COMMISSIONER, THE FAVORABLE RECOMMENDATION TO DIRECT ADMINISTRATION TO ENTER INTO FORMAL NEGOTIATIONS OF A FORMAL MANAGEMENT AGREEMENT WITH LIVE NATION UNDER THE PROPOSED TERMS AS AMENDED, AS DISCUSSED.
'CAUSE THERE'S SOME SLIGHT TWEAKS.
UM, SO IF WE COULD MAKE THAT MOTION, WE'LL SHOW YOU SECOND IT.
AND RICK, THE HANDSOME GENTLEMAN THAT SPOKE FIRST DIDN'T GIVE HIS NAME, BUT YOU GOT HIM ON THE RECORD.
SO WE'LL SHOW, UM, ALL IN FAVOR? AYE.
[01:35:01]
NOTHING.I'M VERY EXCITED FOR THE FUTURE AHEAD AND, AND WHILE ALSO HONORING OUR HISTORY.
SO I KNOW YOU WERE A BIG LEADER IN THIS COMMISSIONER FERNANDEZ, WE WERE KIND OF GOING DOWN BOTH TRACKS AND, AND YOU REALLY HELPED, UH, BRING THIS BACK.
HOW ABOUT, UH, OB 23? THE TROLLEY CONTRACT? OKAY.
OR, YOU KNOW, UH, JASON, BEFORE WE GET TO THAT, CAN WE DO NB ONE TRENCH TWO OF, UH, GEO BOND AND THEN WE'LL ALL HEAR THE TROLLEY CONTRACT? OKAY.
IF I CAN, WE ALSO HAVE, UM, FACILITIES WITH TWO LEASES.
[NB 1. DISCUSS THE ISSUANCE OF THE SECOND TRANCHE OF THE GENERAL OBLIGATION (G.O.) BONDS.]
MB ONE MORNING.MB ONE DISCUSSED THE ISSUANCE OF A SECOND TRANCE OF THE GENERAL OBLIGATION BONDS MB ONE AND INCREDIBLE TIMING BECAUSE I THINK WE HAVE A PRETTY SIGNIFICANT GEO BOND PROJECT SET TO LAUNCH ON SUNDAY.
UH, COMMISSIONER FERNANDEZ, WHY DON'T YOU TELL US WHAT'S GONNA HAPPEN ON SUNDAY? OH, SUNDAY, AFTER DECADES OF WAITING, THE RESIDENTS OF THE CITY OF MIAMI BEACH ARE FINALLY GONNA HAVE A BEAUTIFUL BRAND NEW BAYSHORE PARK.
I WANNA REALLY COMMEND OUR CAPITAL IMPROVEMENTS, UH, DEPARTMENT AND THE GEO BOND TEAM FOR, FOR, FOR DELIVERING ON DECADES OF PROMISE.
I, I, I WALKED, I HAD BEEN THERE DURING THE CONSTRUCTION PHASE, UM, AND OF COURSE WE WERE ALL THERE WHEN, WHEN THE, WHEN THE, UH, GROUNDBREAKING HAPPENS.
AND THOSE OF US WHO, WHO HAVE BEEN HERE FOR A LONG TIME, REMEMBER IT BEING THE PAR THREE GOLF COURSE, THEN BEING A SITE FOR, FOR DEBRIS, UH, AFTER, AFTER HURRICANE.
BUT WHEN YOU STEP FOOT THERE, I PROMISE YOU, MR. CHAIRMAN, YOU'RE GONNA FALL IN LOVE WITH THIS PARK.
AND I THINK EVERYONE IN THIS ROOM, EVERYONE IN THIS ADMINISTRATION AND EVERYONE AT THIS COMMISSION SHOULD BE INCREDIBLY, UH, PROUD OF WHAT IS BEING DELIVERED, IS A PARK LIKE NO OTHER.
I CAN'T WAIT TO SEE YOU ALL THERE ON, ON SUNDAY, AND I'D LIKE TO BUILD ON THAT.
I ALSO WANNA COMMEND THE ADVOCACY OF THE BAYSHORE HOMEOWNERS ASSOCIATION.
THEY HAVE BEEN LITERALLY FIGHTING IN COURT FOR THREE PLUS DECADES TO MAKE THIS HAPPEN.
AND PREVIOUS ADMINISTRATIONS, UM, PREVIOUS MAYORS, UM, GOING BACK WERE NOT RECEPTIVE AND HAD UL ALTERNATE VIEWS OF WHAT SHOULD HAPPEN OR NOT HAPPEN.
AND THEY WERE RELENTLESS IN THEIR PURSUIT OF GETTING WHAT HAD BEEN PROMISED TO THEM, WHAT HAD BEEN DEEDED TO THEM, AND WHAT WHAT WAS THE RIGHT THING FOR THE COMMUNITY ADJACENT AND TO THE CITY AT LARGE.
AND IT IS GOING TO BE LIKE OUR CENTRAL PARK.
AND IT WOULD NOT HAVE HAPPENED.
HAD NOT THE RESIDENTS OF BAY SHORE YES.
LED BY THE HOA PRESIDENT GEORGE ESPOSITO.
I WAS ON THAT HOA AS A NEOPHYTE, UM, ACTIVIST.
THE, THERE ARE PEOPLE WHO ARE STILL ON THE BOARD WHO ARE SEEING THIS FINALLY COME TO FRUITION.
UM, AND I THINK IT IS, YOU KNOW, THIS IS WHY ACTIVISTS MATTER IN THE CITY.
AND I THINK WE NEED TO GIVE A SPECIAL SHOUT OUT TO BARRY MILLER, TO ADRIANA SAVINO, THE PARK DESIGNERS, UH, REALLY AND NEIGHBORS AND, AND, AND THE NEIGHBORS.
AND ALSO BUSLE, UH, WHO, WHO HAVE BEEN THE CONTRACTORS.
A LOCAL COMPANY HERE IN MIAMI BEACH THAT TOOK, THAT TOOK ON THIS PROJECT, HAS DELIVERED THIS PROJECT ON TIME.
UM, AND REALLY WHEN YOU GOT THERE AND YOU WALK THROUGH THAT PARK, YOU SEE ALL THE DIFFERENT AREAS THAT IT HAS.
WE HAVE ONE OF THE LARGEST BANYAN TREES IN THE SOUTHEASTERN U UNITED STATES.
YOU WALK THROUGH THAT AND IT REALLY IS, YOU FEEL LIKE YOU'RE IN A COMPLETELY DIFFERENT PARK AND YOU GO INTO EACH DIFFERENT SETTING, AND IT FEELS LIKE YOU'RE IN MULTIPLE DIFFERENT PARKS WITHIN THIS AREA.
YOU HAVE A BUTTERFLY GARDEN, YOU HAVE THE RESILIENCY LAKE THAT'S GONNA HANDLE TREMENDOUS AMOUNTS OF STORMWATER AND SEARCH.
UH, YOU HAVE GYM EQUIPMENTS, YOU HAVE THE TENNIS FACILITIES AND THE PLAYGROUNDS.
PLEASE GUYS COME OUT ON SUNDAY BECAUSE OUR COMMUNITY WILL BE PROUD OF ITS INVESTMENT IN BAYSHORE PARK.
AND THERE'S ALSO THE, UM, THERE'S ARTWORK, ART AND PUBLIC PLACES.
UM, WHICH IS GONNA BE AMAZING.
MICHELLE LUCA DONOR WAS, GREW UP ON FAIR GREEN, AND, YOU KNOW, THE ARTWORK IS INSPIRED BY THAT PIECE OF LAND.
AND IN ADDITION, UM, THE KIDS FROM THE MIAMI BEACH HIGH SCHOOL ADVOCATED FOR MENTAL HEALTH ARTWORK TO BE INCORPORATED INTO THE PATHWAYS.
UM, AND I'M NOT SURE IF THAT'S UP YET OR THAT'S GONNA BE INSTALLED LATER, BUT THAT IS ALSO A CONVERSATION THAT IS, UM, IT THAT'S GOING, IT'S, IT'S GONNA BE INSTALLED AND SO THAT YOU KNOW, IT, IT TAKES A VILLAGE.
AND IN THIS CASE, IT REALLY TOOK THE WHOLE COMMUNITY TO, TO BRING IT FORWARD.
SO ANYHOW, NOW THAT WE'VE ALL STOLEN YOUR THUNDER
[01:40:01]
YOU HAND OVER THE MIC.TAIZ FIERA, UH, GEO BOND PROGRAM DIRECTOR.
SO, AS YOU KNOW, THE 2018 GEO BOND PROGRAM HAD THREE SEPARATE CATEGORIES, UH, PARKS, PUBLIC SAFETY AND INFRASTRUCTURE.
SO, UH, 45 HAVE EITHER BEEN COMPLETED OR ACTIVELY UNDERWAY.
THE FIRST TRENCH IN THE AMOUNT OF 152 MILLION INCLUDED 28 MILLION, UM, FOR THE INFRASTRUCTURE CATEGORY.
UM, LAST YEAR, A LITTLE OVER A YEAR GOING JUNE OF 2024, THE CITY COMMISSION APPROVED AN INITIAL DECLARATION OF INTENT TO ISSUE, UH, TRAN $2 IN THE INFRASTRUCTURE CATEGORY.
UH, THE AMOUNT WAS 19.8 MILLION AND THAT WAS FOR PRO TO, TO CONTINUE TO ADVANCE CERTAIN PROJECTS THAT NEEDED ADDITIONAL FUNDING SUCH AS STREET PAVING SIDEWALKS, SEA WALLS, TREE PLANTING AND TRAFFIC COMBINING.
UM, TO DATE, 34% OF THESE STRONG TWO FUNDS HAVE ALREADY BEEN SPENT OR ENCUMBERED.
UM, THERE ARE ADDITIONAL PROJECTS IN THE INFRASTRUCTURE CATEGORY THAT NEED ADDITIONAL, UH, CHANGE $2 TO CONTINUE.
AND SO WE'VE REACHED THE POINT OF EXPANDING ON THE DECLARATION OF INTENT AND WE PROVIDED A CHART AS IS EXHIBIT ONE TO THE MEMORANDUM.
AND IT INCLUDES THE LIST OF PROJECTS THAT NEED THE ADDITIONAL FUNDING.
THESE ARE PROJECTS THAT ARE EITHER ALREADY, UM, ALREADY HAVE TRAN ONE FUNDS ARE IN PROGRESS, AND WE'LL NEED THE ADDITIONAL DOLLARS, UH, COMING UP SOON, OR PROJECTS THAT ARE UNDER DESIGN OR PLANNING PHASES, AND WE'LL NEED ADDITIONAL DOLLARS IN THE NEAR FUTURE.
UM, SO THAT LIST, THE TOTAL THAT WE'RE RECOMMENDING RIGHT NOW IS AN ADDITIONAL $72.2 MILLION.
AND JUST AS A REMINDER, WITH THIS APPROVAL, TAXPAYERS WILL NOT BE TAXED AT THIS TIME.
THE DEBT SERVICE MILLAGE WILL NOT BE INCREASED UNTIL THE ACTUAL BONDS ARE ISSUED IN THE FUTURE.
UM, WITH THAT, I'LL OPEN IT UP TO ANY QUESTIONS.
WHEN WOULD THAT BE? WHEN WOULD, WHEN WOULD THAT BE? I COULD ANSWER THAT QUESTION.
UH, SO THE DECLARATION OF INTENT TO ISSUE A SPECIFIC IRS GUIDELINES AND IT, THERE'S A COUPLE DIFFERENT DATES, BUT IT USUALLY WORKS OUT TO BETWEEN 18 MONTHS AND, AND THREE YEARS FROM THE INITIAL EXPENDITURE.
THERE'S A COUPLE DIFFERENT WAYS IT WOULD WORK OUT.
SO SOMEWHERE 18 MONTHS TO THREE YEARS FROM WHEN WE INITIALLY, UH, AND WHEN I AM AUTHORIZED TO SIGN THE OFFICIAL, UH, AUTHORIZATION.
AND DO WE HAVE A SENSE OF WHAT THE INCREASE WILL BE? UH, NO, BECAUSE WE, WE'D OBVIOUSLY DEPEND ON WHAT THE TAXABLE RATE IS OF UM, I'M SORRY, THE TAXABLE VALUE, UH, UH, WOULD BE AT THAT TIME.
MR. CFO, WHEN WE ISSUED, UH, THE ORIGINAL GEO BOND PROJECT, DID WE, UH, UNDERTAKE ANY INTEREST RATE SWAPS? THE HEDGER INTEREST RATE EXPOSURE? NO, NO, NO.
SO WHAT'S THE IMPACT THERE GIVEN JUST THE DIFFERENT ENVIRONMENT WE'RE IN, IN THE INTEREST RATE WORLD? WELL, YOU NEVER KNOW WHERE INTEREST RATES ARE GONNA BE.
UH, IF I DID, I, I WOULDN'T PROBABLY BE WORKING HERE
UM, BUT WHAT'S INTERESTING ALWAYS ABOUT THAT IS NO MATTER WHAT KIND OF, WHERE YOU ARE IN THE INTEREST RATE ENVIRONMENT, 'CAUSE SOMEBODY YOU KNOW OR SHOULD RUN A 30 YEAR SWING AT THE MUNICIPAL, IT DOESN'T MOVE A LOT.
YOU KNOW, WHEN WE WENT THROUGH THAT EXERCISE WHEN WE DID LIKE THE RDA REFUNDING BONDS AND THINGS LIKE THAT, SO WE CAN NEVER TIME WHEN, WHEN THOSE INTEREST, YOU KNOW, WITH THOSE INTEREST RATE, I, I BELIEVE THAT WE'RE IN A, A DECREASING INTEREST RATE ENVIRONMENT.
I, I FEEL CONFIDENT ENOUGH TO MAKE THAT STATEMENT.
UM, SO THERE COULD POTENTIALLY BE MORE SAVINGS NO, BUT JUST VERSUS WHERE WE ARE IN TODAY'S WORLD VERSUS WHERE WHEN THIS PROJECT WAS PLANNED IN.
I THINK BACK THEN, I, I, I ARE WE GETTING LESS BANG FOR OUR BUCK BECAUSE OF WHERE RATES ARE? NO, UH, NO.
OBVIOUSLY IT WASN'T WITH THE, THE, THE CITY AT THE TIME.
OBVIOUSLY IT WAS A, A RESIDENT ON THE, THE VICE CHAIR OF THE GEO AUDIT OVERSIGHT COMMITTEE, UH, AT THE TIME.
BUT I BELIEVE IT WAS IN THE PROJECTIONS ON A PRIOR CFO'S PERSPECTIVE, AND THEN THE FINANCIAL ADVISOR THAT WE WERE NOT GETTING LESS, YOU KNOW, FROM AN INTEREST RATE PERSPECTIVE.
SO I, I WOULDN'T HAVE CONCERN THAT, THAT AREA.
SO WHAT IS THE GENERAL KIND OF A SUMMARY OF PROJECTS THAT WE'RE LOOKING TO, UH, INCREASE FUNDING TO, UH, THAT WE'LL SEE, BE SEEING VAST IMPROVEMENTS ON? SO THERE ARE CERTAIN PROJECTS THAT WE ALREADY HAVE, LET'S CALL A SEED MONEY IN CH ONE TO, TO GET THOSE DESIGNS GOING SUCH AS OCEAN DRIVE, UM, THE 41ST STREET.
UM, AND THEN WE HAVE THESE SORT OF ONGOING PROJECTS, RIGHT? THE STREET PAVING, THE SIDEWALKS, UM, THAT ARE, SO WE'RE JUST PROPOSING TO JUST ADD THE REMAINDER FUNDS AND HAVE IT AVAILABLE FOR IF AND WHEN WE NEED THE ADDITIONAL DOLLARS.
AND THEN WE HAVE, UM, SOME NEIGHBORHOOD ABOVE GROUND FUNDS FOR NEIGHBORHOOD PROJECTS.
[01:45:01]
SO THOSE ARE TIED TO INFRASTRUCTURE PROJECTS THAT ARE NOT GEO BOND.UH, EVENTUALLY THE ABOVE GROUND FUNDS WILL BE NEEDED.
SO WE JUST WANNA HAVE THAT FLEXIBILITY TO HAVE THE PROJECT APPROVED AS PART OF, YOU KNOW, ONE OF THE, THE, THE PROJECTS TO BE ISSUED IN THE FUTURE SO THAT WE HAVE THE ABILITY TO TAP INTO THOSE FUNDS.
DO WE HAVE A HEAT MAP OF SORTS ABOUT WHERE WE'VE ALREADY DONE ROAD PAVING, SIDEWALK REPAIRS AND WHERE WE'RE GOING NEXT? WE DO PUBLIC WORKS DEPARTMENT.
THEY KEEP TRACK, UH, OF WA OF WHERE ALL THE STREET PAVING AND SIDEWALKS HAVE BEEN DONE SO FAR.
WE CAN CERTAINLY SHARE THAT IN AN LTCI THINK.
SO REALLY WHAT YOU'RE JUST LOOKING FOR NOW IS AN AUTHORIZATION, AUTHORIZATION FROM US TO, UH, RELEASE SOME OF THESE FUNDS.
RIGHT? IT JUST GIVES US THE, BASICALLY THE ABILITY TO BORROW AGAINST OURSELVES.
I OFFICIALLY SIGNED THIS DOCUMENT AND THEN THE COMMISSION, UH, ONCE THEY AUTHORIZE THIS, WHEN WE ACTUALLY GO TO ISSUE THE BONDS, WHICH MAY BE AT A DIFFERENT AMOUNT, IT MAY NOT BE ALL OF THESE DOLLARS NEEDED WHEN I GO TO ISSUE IN 18 MONTHS OR THREE YEARS AT THAT TIME, THE COMMISSION HAS ANOTHER CRACK TO BE ABLE TO SAY, YOU KNOW, WHETHER WE'LL MOVE FORWARD.
SO YEAH, WE'RE, WE'RE HOPING TO GET A, UH, A MOTION TO RETURN A COMMISSION WITH A FAVORABLE RECOMMENDATION TO AUTHORIZE THE DECLARATION OF INTENT TO ISSUE, UM, IN THE AMOUNT OF $72,282,000 FOR ADDITIONAL TRAN TWO NEIGHBORHOODS AND INFRASTRUCTURE GEO BONDS.
AND, AND, UH, MR. CFO OR MAYBE MR. CITY ATTORNEY, UH, GIVEN THAT THIS PASSED IN A REFERENDUM TO APPROVE THE FULL SLATE OF GEO BOND PROJECTS, ARE WE ESSENTIALLY TIED TO DOING EACH PROJECT AS LISTED, OR IF WE GO, YOU KNOW, WHAT, AS 10 YEARS LATER AND PROJECT X JUST DOESN'T MAKE SENSE ANYMORE? UH, ARE WE TIED INTO THOSE? UM, AS LONG AS YOU'RE WITHIN THE SAME GENERAL CATEGORIES, AND I WOULD NEED TO LOOK AT THE QUESTION ITSELF, BUT, UH, AS A GENERAL MATTER, IF, IF YOU'RE WITHIN THE CATEGORIES, YOU SHOULD BE FINE.
AND TAS IS LOOKING AT ME LIKE SHE, SHE MAY WANT TO SAY
WELL, I WAS, I THINK WHAT I WOULD GET TO MORE IS IF IT, IF THERE WAS A SPECIFIC PROJECT IN THE PROGRAM THAT THE COMMISSION DIDN'T WANNA DO, I DON'T THINK THAT THEY ARE TIED TO HAVE TO DO THAT PROJECT.
AT THE END OF THE DAY, THE ELECTORATE HAS AUTHORIZED YOU TO MOVE FORWARD WITH ISSUING, UH, THE, THE BONDS TO DO THESE PROJECTS.
BUT AT THE END OF THE DAY, IF THE COMMISSION DECIDED TO WE'RE CANCELING IT AND WE'RE NOT GONNA ACTUALLY ISSUE THE BONDS AND CANCEL THE PROJECTS, I BELIEVE THAT THAT'S TECHNICALLY WITHIN YOUR AUTHORIZATION.
THAT'S JUST AN AMENDMENT TO THE, UM, TO THE SCHEDULE.
YOU JUST WOULDN'T, ON THE ORDINANCE, YOU JUST WOULDN'T AUTHORIZE THE ISSUANCE OF ANY ADDITIONAL, ANY ADDITIONAL DEBT THE VOTERS GIVE YOU THAT, THAT ABILITY TO ISSUE THE DEBT.
I, UM, ARE WE DOING ANYTHING IN NORTH BEACH AS PART OF THIS TRANCHE? I KNOW WE HAVE A NORTH SHORE PROJECT SPECIFIC, SPECIFIC.
WE HAVE, UH, NORTH SHORE NEIGHBORHOOD FUNDS, $8 MILLION.
UM, OTHER THAN THAT, IT WOULD BE, WHAT ARE WE DOING IN NORTH SHORE? I'M SORRY.
WHAT ARE WE DOING IN NORTH SHORE? THESE ARE ABOVE GROUND FUNDINGS.
TY, TIED TO INFRASTRUCTURE PROJECTS THAT, WHAT ARE THE, IT'S ONE OF THE NEIGHBORHOOD IMPROVEMENT PROJECTS, RIGHT? I THINK IT'S NORTH SHORE D IF I'M NOT MISTAKEN, I WOULD HAVE TO NORTH SHORE D.
SO THAT IS ONE OF THE FLOOD PREVENTION PROJECTS THAT WE HAVE IN, IN THE WORKS THAT I THINK, UH, STARTS NEXT YEAR THAT WE'RE LOOKING IN.
DESIGN, I THINK DESIGN, I BELIEVE, I BELIEVE IT, I BELIEVE IT'S IN DESIGN.
IT INCLUDES WATER, SEWER, STORM WATER IMPROVEMENTS.
AND THIS HELPS TO FUND THE ABOVE GROUND, UH, PORTION OF THAT.
THE ONE THING THAT I'M JUST GOING, GOING TO ASK OF STAFF AS WE MOVE FORWARD WITH THESE PROJECTS, UH, AS SOMEONE THAT IS OUT THERE IN THE COMMUNITY RIGHT NOW LISTENING A LOT TO THE RESIDENTS, LET'S JUST MAKE SURE THAT WHATEVER WE DO WITH THESE PROJECTS, WE DON'T TOUCH MATURE TREES, MATURE TREES, TREES THAT HAVE FOLIAGE, TREES THAT HAVE BEEN AROUND FOR A LONG TIME, IS THEN WE TOUCH THE MATURE TREES AND THEN WE USE MILLIONS OF, OF, OF GEO BOND DOLLARS TO REPLACE THEM WITH TWIGS, UH, THAT THEN TAKE DECADES TO GROW.
I LOVE THAT WE'RE MOVING FORWARD WITH OUR PROMISES TO THE VOTERS.
I JUST WANNA MAKE SURE AS MUCH AS WE CAN, WE'RE NOT TOUCHING THE MATURE TREES.
SO WE'LL SHOW AGAIN, COMMISSIONER BOT MAKING THAT MOTION, BEING SECONDED BY, UH, CHAIR MAGAZINE.
UH, LET'S HEAR FOR, UM, O EIGHT.
HOW ABOUT WE, WE HAVE THE TWO QUICK LEASES, RIGHT? THE CITY LEASES? YES.
AND THEN WE'RE GONNA, AND JOSE, THEN WE'RE GONNA HEAR TRANSPORTATION.
I HAVE A HARD STOP AT LIKE ONE 10.
SO LET'S HEAR THE TWO QUICK LEASES AND WE'LL PROBABLY WRAP UP WITH TRANSPORTATION.
UM, I DON'T KNOW IF THERE WILL BE TIME FOR ANOTHER, UH, QUICK ITEM OR TWO AFTER
[01:50:01]
THAT.THERE'LL BE A QUICK PARKING ONE IF, IF POSSIBLE.
MY UNDERSTANDING IS PARKING WILL BE QUICK, BUT LET'S, LET'S GET, IF WE CAN, ARE THERE ANY RESIDENTS HERE FOR SOMETHING SPECIFIC? NO.
I ALWAYS WANT TO BE SURE THAT WE ACCOMMODATE THAT WHERE WE CAN.
LET'S WRAP THAT UP VERY QUICKLY AND THEN, UH, WE'LL HEAR THE TRANSPORTATION.
[OB 8. DISCUSS A PROPOSED NEW LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, A FLORIDA MUNICIPAL CORPORATION (LANDLORD), AND LITTLE HAVANA ACTIVITIES AND NUTRITION CENTERS OF DADE COUNTY, INC. (TENANT), WAIVING, BY 5/7THS VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENTS, AS SET FORTH IN SECTION 82-39 OF THE MIAMI BEACH CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY FOR THE USE OF APPROXIMATELY 2,690 SQUARE FEET OF GROUND FLOOR, CITY-OWNED PROPERTY AND ADJACENT PLAYGROUND AREA HAVING APPROXIMATELY 7,646 SQUARE FEET, LOCATED AT 833 SIXTH STREET, MIAMI BEACH, FLORIDA, FOR A TERM OF FIVE (5) YEARS AND ONE RENEWAL TERM OF FOUR (4) YEARS AND 364 DAYS AT THE CITY MANAGER‘S SOLE DISCRETION; AND FURTHER, AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE THE LEASE AGREEMENT.]
PROPOSED NEW LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, A FLORIDA MUNICIPAL CORPORATION LANDLORD, AND LITTLE LAVAN ACTIVITIES AND NUTRITION CENTERS OF MIAMI-DADE COUNTY INCORPORATED TENT TENANT, UH, WAIVING BY FIVE SEVENTH'S VOTE.THE FORMAL COMPETITIVE BIDDING REQUIREMENTS AS SET FORTH IN SECTION 82 DASH 39 OF THE MIAMI BEACH CITY CODE.
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY FOR THE USE OF APPROXIMATELY 2,690 SQUARE FOOT OF GROUND FLOOR CITY OWNED PROPERTY IN A GENES PLAYGROUND AREA OF HAVING, HAVING APPROXIMATELY 7,646 SQUARE FOOT FEET, LOCATED AT 8 3 3 SIXTH STREET, MIAMI BEACH, FLORIDA FOR A TERM OF FIVE YEARS, AND ONE RENEWAL TERM FOR FIVE YEARS AND 364 DAYS AT THE CITY MANAGER'S SOLE DISCRETION AND FURTHER AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE THE LEASE AGREEMENT.
SO, UH, WE HAVE THE ITEM, WE HAVE THE ITEM MOVED.
TELL ME HIGH LEVEL TERMS. UH, THIS WOULD BE A FIVE YEAR LEASE WITH A, WITH ONE OPTION AT THE, UH, CITY'S DISCRETION FOR FOUR YEARS, 364 DAYS.
THE FINANCIAL TERMS IS A DOLLAR, IT'S A DOLLAR 20 A YEAR, BUT THEY DO PAY ALL OPERATING EXPENSES.
CURRENTLY IT'S $1,900 A MONTH.
UM, AND THOSE ARE, UM, UH, BASICALLY COMMON AREA MAINTENANCE EXPENSES THAT ARE RECONCILED, UH, ON A YEARLY LEASE BASIS AS NEEDED.
AND, AND WHAT ARE THE TERMINATION CLAUSES IN THERE? UH, THE CITY DOES HAVE A TERMINATION CLAUSE FOR CONVENIENCE.
I BELIEVE IT'S 90 DAY TERMINATION CLAUSE.
SO WE'LL HAVE THAT, WE'LL HAVE THAT SECOND.
SO, UH, ALL IN FAVOR? AYE AYE.
ALRIGHT, WE'LL SHOW THE ITEM PASSED.
UH, THE NEXT ITEM, UH, I BELIEVE WILL THOUGH THEY WERE LINKED, I THINK WILL DE-LINK, I ASSUME OB 15.
AND WE'LL JUST DO THE OB 16, THE LEASE PART.
[OB 16. A DISCUSSION TO CONSIDER A PROPOSED NEW MANAGEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE MIAMI DESIGN PRESERVATION LEAGUE, INC. (“MDPL”), FOR THE USE OF THE PROPERTY LOCATED AT 1001 OCEAN DRIVE (THE “PREMISES”) FOR A TERM OF THREE (3) YEARS, WITH ONE MUTUAL RENEWAL OPTION OF THREE (3) YEARS; AND FURTHER, TO: 1) APPROVE A SIX (6) MONTH EXTENSION OF THE CURRENT AGREEMENT WITH MDPL; AND 2) DIRECT STAFF TO NEGOTIATE A NEW MANAGEMENT AGREEMENT WITH MDPL FOR CONTINUED PROGRAMMING AND OPERATION OF THE MIAMI BEACH OCEAN FRONT AUDITORIUM; WAIVING, BY A 5/7THS VOTE, THE COMPETITIVE BIDDING REQUIREMENTS AS SET FORTH IN SECTION 82-39 OF THE MIAMI BEACH CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; OR, IF IT’s IN THE BEST INTEREST OF THE CITY, TO ISSUE A FORMAL REQUEST FOR PROPOSALS (“RFP”).]
A DISCUSSION TO CONSIDER A PROPOSED NEW MANAGEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE MIAMI DESIGN PRESERVATION LEAGUE, INCORPORATED MDPL FOR THE USE OF THE PROPERTY LOCATED AT 1 0 0 1 OCEAN DRIVE THE PREMISES FOR A TERM OF THREE YEARS, AND WITH ONE MUTUAL RENEWAL OPTION OF THREE YEARS.AND FURTHER TO APPROVE A SIX MONTH EXTENSION OF THE CURRENT AGREEMENT WITH MDPL AND DIRECT STAFF TO NEGOTIATE A NEW MANAGEMENT AGREEMENT WITH MDPL FOR CONTINUED PROGRAMMING, AN OPERATION OF THE MAYA BEACH OCEAN FRONT AUDITORIUM WAIVING BY FIVE SEVENTH VOTE.
THE COMPETITIVE BIDDING REQUIREMENTS AS SET FORTH IN SECTION 82 39 OF THE MAYA BEACH CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, OR IF IN THE BEST INTEREST OF THE CITY TO ISSUE A FORMAL REQUEST FOR PROPOSALS R-F-P-O-B 16.
UM, UM, SO WHERE WE'RE AT HERE, A LOT OF MOVING PIECES WITH MDPL.
WE HAD DISCUSSIONS PREVIOUSLY.
WE WANT TO GIVE THEM A CHANCE TO COME BACK AND, UH, GIVE US INSIGHT AND OVERVIEW OF THE NEW DIRECTION AND LEADERSHIP OF THEIR ORGANIZATION BEFORE WE LOCK INTO SOMETHING LONGER TERM.
I THINK WE'RE GONNA HAVE THAT DISCUSSION, UH, MOVE INTO THE FINANCE COMMITTEE.
IT'S GONNA HAPPEN IN TWO TO THREE WEEKS.
UH, HOWEVER, I KNOW WE'RE COMING UP ON THE END OF THIS LEASE HERE.
SO WHAT WE'RE LOOKING TO DO IS MAYBE GIVE A, A TWO MONTH EXTENSION OR SOMETHING LIKE THAT UNTIL WE ENTER INTO, UNTIL WE HAVE THAT DISCUSSION AND THEN ENTER INTO LONGER TERM NEGOTIATIONS.
UH, COMMISSIONER, IF I MAY, THANK YOU VERY MUCH.
WE WERE, WE WERE GOING TO REQUEST A SIX MONTH EXTENSION JUST BECAUSE, UH, THE LEASE IS EXPIRING DECEMBER 31ST OF THIS YEAR.
AND WHETHER WE GO INTO A NEW LEASE WITH THE EXISTING OPERATOR OR A PROCUREMENT PROCESS, IT WILL TAKE US SOME TIME TO GET THAT ACCOMPLISHED.
SO IN ORDER NOT TO COME BACK TO ASK FOR A SECOND EXTENSION, I'D LIKE TO JUST ASK FOR ONE SIX MONTHS.
SO MAYBE SO THAT, THAT'S WITH A 30 DAY TERMINATION, RIGHT? YEP.
THAT'S BETTER THAN A THREE MONTH EXTENSION.
I KNOW IT, YOU KNOW, MAKES YOUR LIFE EASIER, BUT IT'S NOT NECESSARILY WHAT MY ULTIMATE OBJECTIVE IS.
COULD WE GET THIS WITH A THREE MONTH EXTENSION, OR DO YOU NEED SIX? IF IT GOES, IF IT GOES TO PROCUREMENT, WE WILL NEED THE SIX.
'CAUSE IT WILL TAKE PROCUREMENT SEVERAL MONTHS TO JUST PUT THEIR, THEIR PROCESS TOGETHER.
SO, SO MECHANICAL, WHAT I'M HEARING PERHAPS IS THE ITEM GOES UP AND GETS RETAINED AND SO THE ONLY ITEM THAT WE RETURN TO, COMMISSIONER OF THE FAVORABLE RECOMMENDATION IS TO, TO FOR A SIX MONTH EXTENSION.
AND THEN THE ITEM WOULD BE RETAINED TO BE HEARD FOR THE LONGER DISPOSITION.
IT WILL BE A SIX MONTH EXTENSION WITH A, A LANDLORD 30 DAY TERMINATION.
IN CASE WE SOLVE EVERY ANYTHING EARLIER.
SO THAT WOULD BE THE MOTION THAT COMMISSIONER BOT WOULD BE MAKING AND SECONDED BY COMMISSIONER MAGAZINE, IF THAT'S ACCEPTABLE.
[01:55:01]
SO WE'LL SHOW THE ITEM RETURN TO COMMISSION WITH A FAVORABLE RECOMMENDATION TO APPROVE, UH, A SIX MONTH LEASE EXTENSION AND THE ITEM TO BE RETAINED AND HEARD, UH, NEXT MONTH, AND IF THE MINUTES COULD REFLECT HER ENTHUSIASM AS WELL.NO, I JUST, I I JUST WANNA SAY FOR THE RECORD, I, I WILL NOT SUPPORT DEFERRING THIS ANY FURTHER THE NEXT MONTH.
AND, YOU KNOW, IT'S, IT'S OUT OF COURTESY TO THE ITEM SPONSOR WHO, FOR WHATEVER REASON, DOESN'T FEEL LIKE HE NEEDS TO BE HERE TODAY OR ISN'T ABLE TO BE HERE TODAY, THAT WE ARE NOT HEARING THIS.
BUT THERE ARE A LOT OF PEOPLE WHO ARE WORKING VERY HARD AND THIS IS KEEPING THEM, UM, ON, ON PINS AND NEEDLES ABOUT THEIR FUTURE.
AND, AND I, FOR ONE, WILL NOT SUPPORT ANYTHING THAT DOES NOT GET THIS ITEM HEARD IN ITS FULL EXTENT WITHIN THE NEXT THREE WEEKS WHENEVER THE NEXT FERC MEETING IS, WHICH IS A COUPLE OF WEEKS FROM NOW.
I, I JUST WANNA MAKE THAT VERY, VERY CLEAR.
THIS IS OUT OF DEFERENCE TO THE, WHAT IS SUPPOSED TO BE THE CORRECT PROCESS THAT YOU, UM, YOU KNOW, YOU DEFER TO THE SPONSOR, ALTHOUGH WE HEAR ITEMS ALL THE TIME WHEN THE SPONSORS AREN'T HERE TO PRESENT.
SO I THAT, SO THAT'S THE THING.
I THINK WE HAVE TWO, I THINK THE TWO ONES ARE TROLLEY AND PARKING THAT, UH, WE'D LIKE TO GET HEARD TODAY.
SO THE FIRST ONE IS, WELL, HOW QUICKLY CAN WE HEAR OB 22? BECAUSE, UH, I TALKED TO THE CFO BEFOREHAND.
I DO WANT A MORE THAT QUICKLY.
UM, I DO WANT A MORE COMPREHENSIVE
[OB 22. 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.]
DISCUSSION ON THE UNDERLYING ITEM, UH, WHICH WE'RE GOING TO HAVE.UH, SO THIS, I WANNA OPEN UP, I THINK YOU NEED THE ABILITY TO MAYBE PURCHASE SOME NEW EQUIPMENT, BUT WE'RE ALSO GOING TO RETAIN THIS ITEM HERE, UH, SO WE CAN HAVE A MORE ROBUST DISCUSSION ABOUT TRACK TRAFFIC ENFORCEMENT AND HOW THE DEPARTMENT IS, UH, MANAGING.
UH, WILL MCDONALD PARKING DEPARTMENT, SO I'LL JUST JUMP RIGHT TO THE PRIMARY REASON.
UM, THE PARKING DEPARTMENT WOULD LIKE TO ENTER INTO A FIVE YEAR HARDWARE AS A SERVICE, UH, AGREEMENT WITH FLASH PARKING FOR ALL CITY GARAGES.
UM, AS THE, UH, COMMISSIONERS UNDERSTAND THAT THE EQUIPMENT THAT WE CURRENTLY HAVE IN OUR GARAGES IS MORE THAN NINE YEARS OLD.
UM, AND I, I JUST PUT IT AS A, IF ANYBODY ON THE, UH, PANEL HAS A 9-YEAR-OLD CELL PHONE, THEN YOU UNDERSTAND HOW FAST TECHNOLOGY MOVES.
WHAT WE WOULD LIKE TO DO IS PUT, UH, THIS UPGRADE INTO OUR GARAGES, WHICH WILL BE LICENSE PLATE RECOGNITION AND PROVIDE A VARIOUS NUMBER OF DIFFERENT CREDENTIALED PARKERS, UH, DIFFERENT LAYERS OF ACCESS AND VALIDATIONS AND BRING US INTO THE 21ST CENTURY.
THIS WILL ALLOW US TO HAVE A FULL WARRANTY OVER THE ENTIRE LIFE OF THE PROGRAM, AND WITH ONLY FIVE YEARS ALLOW, IT WILL ALLOW US TO REEVALUATE TOWARD THE END OF THE PROGRAM.
WHAT NEW TECHNOLOGY CAN BEST SERVE THE GARAGES THROUGHOUT THE CITY.
IS THERE, ARE YOU COMING HERE 'CAUSE THERE'S A FINANCIAL COMPONENT TO THAT, CORRECT? OR IS THIS ONE OF THOSE THINGS WHERE A PUBLIC PRIVATE PARTNERSHIP WHERE ANYTHING WILL BE OFFSET? UH, NO.
SO THE, THE RIGHT NOW, THE FINANCIAL COMPONENT RIGHT NOW, UH, IT IS A $4 MILLION A YEAR, UH, VALUE OVER FIVE YEARS.
UH, WE HAVE TWO WAYS WE CAN GO BEFORE WE FINALIZE THIS.
WE CAN EITHER PURCHASE IT AS A LUMP SUM FOR A CAPITAL OUTLAY.
UM, PARKING IS PREFERRING TO MOVE FORWARD IN THE HARDWARE AS A SERVICE MODEL.
THIS IS ESSENTIALLY JUST LIKE VERSUS PURCHASING A VEHICLE OR LEASING A VEHICLE.
UM, AND SO WE ARE VERY MUCH INTERESTED IN THE HARDWARE AS A SERVICE MODEL, BUT WE ARE OPEN TO EITHER ONE BECAUSE THE COST OVER THE COURSE OF THE FIVE YEARS IS APPROXIMATELY A 1% DIFFERENCE.
UM, SO THEREFORE, YOU KNOW, IT'S NEGLIGIBLE WHEN IT COMES TO THE GREATER COST OF ITEMS. NOW, WILL THIS PROVIDE BETTER EFFICIENCIES FOR US TO COLLECT REVENUE? THIS WILL PROVIDE US EFFICIENCIES ACROSS THE BOARD TO COLLECT REVENUE, TO PROVIDE ACCESS, UM, UH, PROVIDE GREATER INFORMATION, GREATER, UH, DATA ON WHO IS USING OUR GARAGE, WHEN THEY'RE USING IT, HOW THEY'RE USING IT.
UM, THIS IS GOING TO BE A STATE-OF-THE-ART TECHNOLOGY SYSTEM THAT WILL BE ABLE TO SERVE THE RESIDENTS, THE EMPLOYEES, UH, THE BUSINESSES.
WE'LL BE ABLE TO EASILY PROVIDE, UM, VALIDATION TECHNIQUES IF A BUSINESS WANTS TO PROVIDE A PARKING OPPORTUNITY TO SAY, HEY, COME VISIT MY BUSINESS AND I'LL GIVE YOU A DISCOUNT ON YOUR PARKING.
I GUESS WHERE I'M GOING WITH THAT THOUGH IS WILL WE ESSENTIALLY BE ABLE TO AND SOMEWHAT OFFSET THE COSTS? SO THE GREAT THING IS, IS THAT THE COST WILL ONLY BE APPROXIMATELY $30,000 MORE A MONTH THAN WE'RE PAYING RIGHT NOW FOR OUR NINE, NINE AND A HALF YEAR OLD EQUIPMENT.
SO THIS WILL EASILY OFFSET THE COST AND JUST BRING US INTO THE 21ST.
AND THE COST IS BORN OUT OF A SEGREGATED PARKING FUND, CORRECT? NOT THE GENERAL FUND.
AND YOU GUYS ARE DOING GUYS AND GALS, DOING VERY WELL? YEP.
SO I THINK WHAT WOULD WOULD SHOW IS A RECOMMENDATION, UH, TO RETURN TO COMMISSION WITH A FAVOR OF RECOMMENDATION AND APPROVE THE
[02:00:01]
EQUIPMENT ACQUISITION AS PRESENTED.AND THE ITEM WILL BE RETAINED FOR FURTHER DISCUSSION.
UM, COMMISSIONER, MUCH COMMISSIONER BOT MAKING SAID RECOMMEND, UH, MOTION, UH, BEING SECONDED BY OUR CHAIR.
AND THEN THE TROLLEY, THEN WE'LL HAVE OB 23 WILL BE THE LAST ITEM, OB
[OB 23. REQUEST FOR ADVISORY REVIEW AND APPROVAL OF FINAL SELECTION AND NEGOTIATED AGREEMENT, IN SUBSTANTIAL FORM, AS SET FORTH IN ATTACHMENT “A” WITH LIMOUSINES OF SOUTH FLORIDA, INC., PURSUANT TO INVITATION TO NEGOTIATE (ITN) 2024-008-ND, FOR MUNICIPAL CIRCULATOR SERVICES. (TRANSPORTATION AND MOBILITY DEPARTMENT)]
23 REQUESTS FOR ADVISORY REVIEW AND APPROVAL OF THE FINAL SELECTION OF NEGOTIATED AGREEMENT IN SUBSTANTIAL FORM AS SET FORTH IN ATTACHMENT A WITH LIMOUSINES OF SOUTH FLORIDA INCORPORATED PURSUANT TO INVITATION TO NEGOTIATE ITN 2 0 2 4 DASH ZERO EIGHT DASH ND FOR MUNICIPAL CIRCULATOR SERVICES OB 23.MR. CFOI KNOW YOU MENTIONED, UH, LAST ITEM.
I KNOW COMMISSIONER DOMINGUEZ, UH, SPOKE WITH OUR OFFICE EARLIER TODAY.
IF WE COULD POSSIBLY HEAR, INCREASE THE ELEVATOR PERMIT RENEWAL FEES MB THREE.
I'M NOT GOING TO MAKE YOU SIT DOWN AGAIN, JOSE, I PROMISE.
BUT MAYBE IF WE COULD WRAP THIS UP BY 1 0 5 IF POSSIBLE AND HEAR THAT SURE.
I THINK THAT, I THINK THAT LAST ITEM WAS QUICK TOO.
COMMITTEE MEMBERS, UH, JOSE GONZALEZ, TRANSPORTATION AND MOBILITY DIRECTOR.
THANK YOU FOR CALLING THE ITEM, MR. CHAIR.
UH, PJ IF YOU COULD, UH, PULL UP THE PRESENTATION, PLEASE.
AND I WOULD, I WOULD LOVE TO BE ABLE TO GET TO THE PUNCHLINE, BUT THERE ARE A FEW PUNCHLINES, UH, WITH THIS ITEM.
UH, SO, UM, WE WERE HERE BEFORE THIS BODY A LITTLE OVER TWO MONTHS AGO, AND, UH, WELL FIRST, LET, LET ME BACKTRACK, UH, BECAUSE WHEN WE WERE HERE A COUPLE MONTHS AGO, THERE WAS A QUESTION RAISED AS AS TO WHY, UH, SUCH AN IMPORTANT ITEM.
UH, YOU ALL WERE NOT PROVIDED BRIEFINGS.
AND THE REASON IS THAT WE ARE STILL UNDER THE CONE OF SILENCE.
IT IS LIFTED FOR THIS MEETING.
I WOULD LOVE NOTHING MORE THAN TO BRIEF ALL OF YOU ON THIS ITEM BECAUSE IT IS THAT IMPORTANT OF AN ITEM, BUT IT IS UNDER THE CONE.
AND UNTIL THE CONTRACT IS IS AWARDED, WE CAN'T REALLY, UH, DISCUSS IT EXCEPT UNDER A, YOU KNOW, AS A PUBLIC MEETING.
SO, UM, COUPLE MONTHS AGO AT THE JULY 16TH FERC MEETING, THIS BODY ASKED US, UM, TO EXPLORE THREE DIFFERENT THINGS.
THE FIRST ONE WAS TO VERIFY THE EMISSIONS DATA THAT WAS PROVIDED BY THE RECOMMENDED MANUFACTURER OF THE VEHICLES, UH, WHICH IS GILLICK.
THE SECOND WAS TO EXPLORE OPPORTUNITIES TO MAXIMIZE REVENUES THROUGH ADVERTISING.
AND THE THIRD WAS TO EXPLORE THE POSSIBILITY OF HAVING A MIXED FLEET WHERE THERE WOULD BE SOME ELECTRIC VEHICLES AS PART OF THE FLEET, AS WELL AS SOME, SOME OF THE CLEAN DIESEL VEHICLES, WHICH ARE THE VEHICLES THAT WE ARE RECOMMENDING.
SO BEFORE JUMPING INTO THAT, UH, THE SPECIFICS OF THAT UPDATE, I JUST WANNA COUPLE MINUTES TO RECAP HOW WE GOT HERE AND, UH, WHY OUR RECOMMENDATION IS WHAT IT IS.
SO, UM, VERY, A VERY IMPORTANT PIECE OF THIS IS THE FACT THAT BEFORE, BEFORE STARTING THE PROCUREMENT, WE ENGAGED A TRANSIT CONSULTANT TO LOOK AT OUR SYSTEM AND TO MAKE RECOMMENDATIONS FOR IMPROVEMENT, AND THAT THE PURPOSE OF THAT EFFORT WAS TO INFORM THE PROCUREMENT.
SO, UM, A LITTLE BIT ABOUT OUR TROLLEYS.
THEY SERVE OVER THREE AND A HALF MILLION RIDERS A YEAR.
THERE'S CONSIDERABLE HIGH RATE OF SATISFACTION FROM THE RIDERS, AND HOWEVER, OUR CURRENT TROLLEY VEHICLES ARE NOT EQUIPPED FOR THE, UH, THE HIGH RIDERSHIP THAT THEY HA THAT THEY CARRY ON AN ANNUAL BASIS.
FOR EXAMPLE, THEY ARE NOT HEAVY DUTY VEHICLES.
UH, MANY OF THEM ARE HIGH FLOORS, NOT, NOT LOW FLOORS.
SO THE OPTIMIZATION STUDY ACTUALLY RECOMMENDED THAT GIVEN THE SCALE OF OUR SERVICE, WE REQUIRE HEAVY DUTY MASS TRANSIT VEHICLES, VEHICLES THAT HAVE BEEN TRIED, TESTED, AND, AND PROVEN IN THE INDUSTRY.
IN CONTRAST TO, UH, SOME OF THESE EMERGING TECHNOLOGIES THAT, THAT WE'RE SEEING WITH AUTONOMOUS VEHICLES, UH, TODAY.
SO AS PART OF THE PROCUREMENT, THREE DIFFERENT TYPES OF VEHICLES WERE OFFERED BY ALL THE, THE PROPOSERS.
THE THREE ARE THE HOMETOWN TROLLEY ON THE LEFT, THE GILLICK TROLLEY IN THE MIDDLE, AND THE GILLICK BUS ON THE RIGHT.
ALL THREE VEHICLES ARE LOW FLOOR FOR EASY BOARDING AND THE LIGHTING, THEY ALL HAVE DOUBLE DOORS.
THEY'RE ALL HEAVY DUTY VEHICLES, AND THEY ALL HAVE A PASSENGER CAPACITY OF ABOUT 24 TO 40 PASSENGERS.
AND THEY'RE ROUGHLY, UH, THE SAME LENGTH BETWEEN, UM, ABOUT 40 FEET, 35 TO 40 FEET.
SO WE'LL START WITH THE FIRST ONE, THE HOMETOWN TROLLEY.
THESE ARE THE IMAGES OF THE INTERIOR AND THE EXTERIOR OF THE HOMETOWN TROLLEY.
THIS IS REALLY THE ONLY AUTHENTIC TROLLEY TYPE VEHICLE
[02:05:01]
OF THE THREE, BECAUSE IT'S GOT IT, IT HAS A REAL CUPOLA, IT'S GOT THE ARCH WINDOWS, AND IT'S GOT THE AUTHENTIC VINTAGE LOOK.THIS IS THE IMAGE OF A GILLICK TROLLEY.
SO THIS, THIS VEHICLE IS IN ESSENCE A GILLICK BUS THAT HAS BEEN DRESSED UP TO LOOK LIKE A TROLLEY THROUGH A, UH, A TROLLEY PACKAGE THAT'S, THAT'S OFFERED TO GIVE IT THAT LOOK AND FEEL OF A TROLLEY.
THAT'S CONSISTENT WITH OUR CURRENT BRANDING.
AND THE THIRD VEHICLE OPTION, UH, WHICH WE WERE ASKED TO EXPLORE BY, BY THIS, UH, BODY IS THE GILLICK BUS THAT'S SHOWN HERE.
THIS IS SIMILAR TO THE BUSES THAT ARE OPERATED BY MIAMI DE MIAMI-DADE TRANSIT.
IS IT JUST, UH, VISUALLY OR ARE THESE BUSES SIGNIFICANTLY LARGER THAN THE TROLLEYS? THEY ALMOST LOOK LIKE THE BUSES AT THE COUNTY WHERE THEY HAVE THE, THESE MAY BE YOU, YOU ARE RIGHT.
UM, HOWEVER, THE, THE GILLICK VEHICLE THAT WE ARE PROPOSING IS A 40 FOOT.
SO I'M NOT SURE IF IT'S THE ANGLE OF THE PICTURE OR THESE ARE ACTUALLY, THEY DO LOOK LONGER THAN 40 FEET, BUT OURS WOULD BE 40 FEET LONG, WHICH IS ROUGHLY THE SIZE OF OUR, UH, SOUTH BEACH TROLLEY, FOR EXAMPLE.
SO IT WON'T BE ANY LARGER THAN THAN THAT.
BUT THE GILI, FROM WHAT I SAW ON THE, ON ONE OF THE PREVIOUS LIGHTS, THIS HAS THE SAME AMOUNT OF CAPACITY AS SOMEONE ONCE IT LOOKED LIKE A TROLLEY.
EXCEPT THAT THIS WAS MORE EFFICIENT IN COST.
IT'S ABOUT CAPITAL COST OF $150,000 LESS PER VEHICLE.
I REMEMBER THIS FROM OUR LAST FERC DISCUSSION.
SO IN COMPARING THE HOMETOWN AND THE GILLIG VEHICLES, UH, PARTICULARLY IN THE CONTEXT OF THE TYPE OF SERVICE THAT, THAT WE DESIRE, THE GILLIG VEHICLE WAS FOUND TO BE SUPERIOR IN TERMS OF QUALITY, DURABILITY, AND RELIABILITY.
GILLIG AS A COMPANY HAS OVER 130 YEARS OF, UH, EXPERIENCE IN THE BUS TRANSPORTATION INDUSTRY IN THIS COUNTRY.
IT'S, UH, US US, UH, MADE IN THE USA, IF YOU WILL.
THEIR BUSES HAVE A PROVEN PLATFORM, ROBUST AND RELIABLE FOR HEAVY DAILY USE, AND THEY HAVE A LONGER LIFESPAN OF OVER 10 YEARS.
SO, UM, ONE OF THE THINGS THAT THIS BODY RECOMMENDED WAS, UH, TO LOOK AT THE EMISSIONS DATA FOR THE DIFFERENT TYPES OF VEHICLES.
INITIALLY WE WERE LOOKING AT CNG ELECTRIC HYBRID AS, AS WELL AS AS DIESEL.
SO WE WORKED WITH THE ENVIRONMENT AND SUSTAINABILITY DEPARTMENT TO REVIEW THE EMISSIONS THAT WERE, THE EMISSIONS DATA THAT WAS PROVIDED BY, BY GILLIG AND THE ENVIRONMENT AND SUSTAINABILITY DEPARTMENT.
AND I BELIEVE AMY IS HERE TODAY, CONCLUDED THAT WHILE FULLY ELECTRIC, YOU KNOW, WE, WE KNOW FULLY ELECTRIC VEHICLES ARE OR PROVIDE THE GREATEST REDUCTIONS IN GREENHOUSE GAS EMISSIONS AND, AND OTHER POLLUTANTS.
HOWEVER, WHEN, WHEN COMPARED WITH THE HYBRID AND THE CNG, THE BENEFITS ARE MODEST.
THEY'RE NOT, THEY'RE NOT SIGNIFICANT.
AND, UH, WE'LL GET INTO SOME OF THE CHALLENGES WITH, UH, WITH, UH, THE ELECTRIC VEHICLES.
BUT THE, UH, FROM AN EMISSIONS STANDPOINT, THE ADVANTAGES, THE ADVANTAGES WERE NOT THERE AS COMPARED TO THE CLEAN DIESEL.
SO, UH, THIS BODY ALSO RECOMMENDED THAT WE EXPLORE OPPORTUNITIES TO INCREASE ADVERTISING REVENUES.
WE CURRENT, THE CITY CURRENTLY HAS A CONTRACT WITH OUTFRONT MEDIA TO ADVERTISE ON THE EXTERIORS OF OUR TROLLEYS.
THAT CONTRACT CURRENTLY GENERATES ABOUT $180,000 A YEAR TO THE CITY.
THERE'S CURRENTLY A REVENUE SPLIT, WHICH IS, UH, 52.5% CITY, 47 POINT A 5%, UH, OUT FRONT.
SO IS THAT, IS THAT 182,000 IN TOTAL OR PER TROLLEY? THAT'S IN TOTAL.
I DON'T THINK WE'RE CHARGING ENOUGH.
SO, UM, THE SPLIT 52 AND A HALF PERCENT CITY, 47.5% OUT FRONT, WHAT WE'RE CURRENTLY DOING AS PART OF THE NEGOTIATIONS OF A NEW CONTRACT IS TRYING TO ACHIEVE A 60 40 SPLIT WHERE THE CITY WOULD KEEP 60% OF THE REVENUES OUT FRONT, 40%.
AND, UH, AND WE'RE ALSO, UM, TRIGGERING INSIDE, UH, ADVERTISING, ADVERTISING IN THE INTERIOR.
HOWEVER, UM, ACCORDING TO THE INDUSTRY EXPERTS, IT'S, IT'S REALLY, UH, NOMINAL WHAT IT WOULD GENERATE IN COMPARISON TO HOW MANY TROLLEYS DO WE HAVE CURRENTLY? 21 IN SERVICE.
TO MY COLLEAGUES' POINT HERE, I'M FAR FROM A MARKETING OR ADVERTISING EXPERT, BUT WE'RE LOOKING AT ESSENTIALLY LESS THAN $10,000 FOR A WHOLE YEAR OF ADVERTISING ON A TROLLEY IN ONE OF THE EPICENTERS OF THE WORLD.
[02:10:01]
UM, THIS, OUR, OUR INCENTIVES ARE ALIGNED.SO I'M LIKE, OKAY, IT'S NOT AS IF OUT FRONT IS JUST TAKING US TO THE CLEANERS HERE, BECAUSE IF THEY'RE GETTING SUCH A ROBUST REVENUE SHARE, THEY CERTAINLY WANT TO MAXIMIZE THEIR MONETIZATION OF ADVERTISING AS WELL.
SO IT'S NOT THAT, UH, PERHAPS I'M JUST TOTALLY OUT OF SCALE OR OUT OF WHACK OF WHAT MY EXPECTATIONS FOR ADVERTISING ARE.
BUT YOU KNOW, WE'RE, WE'RE AT, UH, A THOUSAND DOLLARS PER MONTH FOR, UH, TROLLEY THAT IS HIGHLY VISIBLE.
UM, IF I CAN, I, I WOULD LIKE TO ACTUALLY ADD, I DON'T KNOW IF MELISSA OR ANYBODY FROM THE DEPARTMENT IS HERE.
UM, I, IT'S BEEN A LONG TIME SINCE I HAD TO BUY MEDIA A LONG TIME AGO.
UM, BUT WHAT ARE THE, THE MARKET RATE MEDIA RATES FOR BUS ADVERTISING IN MA MAJOR METRO AREAS, AND HOW DO WE COMPARE? AND IF WE'RE NOT, IF THAT'S JUST WHAT IT IS, THEN THAT'S ONE THING I WOULD BE SHOCKED IF IT'S THIS LOW.
AND IF IT'S NOT WHAT IT IS, THEN WE SHOULD BE ALIGNED WITH WHAT IT IS.
I MEAN, IT'S JUST BECAUSE WE'RE A, A CITY PURVEYOR OF THE BILLBOARD, IF YOU WILL, DOESN'T MEAN THAT WE SHOULDN'T BE CHARGING THE MARKET RATE.
LIKE, I, I, I, I DON'T WANNA NEGOTIATE A CONTRACT THAT DOESN'T HAVE THAT DATA POINT INCLUDED IN IT BECAUSE WE, WE MIGHT BE CORRECT, BUT WE MIGHT BE VASTLY UNDERVALUING THIS REAL ESTATE.
I MEAN, IF I CAN JUST BEFORE IT IS JUST WAS CONFIRMING WITH JOSE IS NOT ALL THE TRIALERS ARE WRAPPED ALL THE TIME.
SO IF, IF IT WAS EVERY, ALL 21 TRIALERS WOULD BE WRAPPED 365 DAYS A YEAR TO THAT POINT, OBVIOUSLY, BUT THEY CAN SPEAK A LITTLE BIT TO THAT.
BUT SO NOT EVERY TRIALEE IS WRAPPED AT ALL TIMES.
I WOULD BET MY BOTTOM DOLLAR THAT WE ARE NOT CHARGING MARKET RATE RATES.
UM, SO RIGHT NOW WE'RE NOT CHARGING A THOUSAND DOLLARS PER MONTH.
UH, IT DOES, IT HAS A COST TO US.
I'M MARKETING AND COMMUNICATION, UH, ASSISTANT DIRECTOR.
UH, WE DO CHARGE AROUND $4,000, UH, TO, TO ADVERTISE ON THE TROLLEYS.
UM, I DO THINK THAT THE RATE IS LOW COMPARED TO MIAMI-DADE COUNTY.
UH, WE DID ADVERTISE FOR ART WEEK LAST YEAR, AND WE PAY A SIGNIFICANTLY HIGHER RATE FOR THE COUNTY BUSES.
SO I DON'T HAVE THE NUMBER RIGHT NOW, BUT WE CAN LOOK INTO IT AND THAT'S FINE.
NOBODY WAS EXPECTING YOU TO MM-HMM
SO I WANT BEFORE THIS CON, THIS CONTRACT IS CONCLUDED, AND I DON'T KNOW HOW YOU DO IT WITH THE CODE OF SILENCE ISSUES, BUT I WANT US TO NOT ONLY LOOK AT WHAT MIAMI-DADE COUNTY CHARGES, BECAUSE THEY MIGHT BE UNDERCHARGING TOO.
I WANNA KNOW WHAT BOSTON, NEW YORK, LA CHICAGO GET FOR THEIR MUNICIPAL BUSES AND, AND, AND HOW THEY STRUCTURE THEIR CONTRACTS.
IS IT, YOU KNOW, ALL THE BUSES ARE WRAPPED ALL THE TIME.
IS IT, YOU KNOW, IF YOU, IF YOU HAVE AN ADVERTISING, AN AD UP FOR THE YEAR, YOU GET A DISCOUNT RATE.
LIKE, I WANNA EMULATE BEST PRACTICES BECAUSE IF I, YOU KNOW, IN THE IDEAL WORLD, WE DIDN'T, WE WOULDN'T NEED REVENUES, WE WOULDN'T HAVE TO HAVE ADVERTISING ON THE BUSES.
WE DO HAVE ADVERTISING ON THE BUSES.
WE'RE NOT GONNA ROLL THAT BACK.
SO IF WE ARE SUBJECTING OUR RESIDENTS TO MOVING BILLBOARDS, WHICH IS WHAT THESE ARE, THEN LET US AT LEAST RECOUP THE VALUE AND A THOUSAND DOLLARS A MONTH OR WHATEVER IT IS.
IT, I'M SORRY, IT WOULDN'T COVER OUR COSTS.
SO I I WOULD SAY IT HAS TO BE MORE THAN A THOUSAND DOLLARS.
SO THIS IS A HUGE GAP IN, AND, AND JOSE, THIS IS NOT A, THIS IS NOT A SLAM AGAINST YOU.
YOU KNOW, THIS IS NOT YOUR EXPERTISE AND YOU PROBABLY WOULDN'T THINK ABOUT IT THIS WAY, BUT IT IS AN OPPORTUNITY FOR US TO RECOUP DOLLARS.
LET'S GET THE MARKETING TEAM INVOLVED.
LET'S FIND OUT WHAT THE RIGHT NUMBERS SHOULD BE, AND LET'S NEGOTIATE ACCORDINGLY, PLEASE.
UM, LAST THING, A VERY IMPORTANT, UH, PIECE HERE IS THAT OUR CURRENT TROLLEYS ARE WRAPPED.
THEY, AT ONE POINT IN TIME, THEY WERE PAINTED WHEN THEY WERE MANUFACTURED, BUT THEN THEY WERE WRAPPED WITH, YOU KNOW, SOME SORT OF A VINYL WRAPPING.
AND WHAT, WHAT HAPPENS IS THAT THEN WHEN YOU WRAP A VEHICLE WITH ADVERTISING, IT'S A WRAP ON A WRAP.
AND WHEN YOU TAKE OUT A WRAP, THE OUTSIDE ADVERTISING WRAP, MANY TIMES IT DAMAGES THE, UH, PERMANENT WRAP OF THE VEHICLE.
SO WHAT WE'RE RECOMMENDING IS THAT, UH, THE NEW GENERATION VEHICLES BE PAINTED RATHER THAN WRAPPED.
UH, THE ONLY CAVEAT IS THAT A NEWLY PAINTED VEHICLE REQUIRES A CURE PERIOD OF SIX MONTHS.
NO, NO ADVERTISING CAN GO ON IT FOR THE FIRST SIX MONTHS.
SO THE LAST, UM, ITEM THAT THIS BODY ASKED US TO EXPLORE IS THE POSSIBILITY OF HAVING A MIXED FLEET COMPRISED OF ELECTRIC VEHICLES AS WELL AS CLEAN DIESEL VEHICLES.
SO WHILE ELECTRIC VEHICLES PROVIDE THE
[02:15:01]
GREATEST ENVIRONMENTAL BENEFIT, THERE ARE SOME REAL OPERATIONAL LIMITATIONS AND FINANCIAL CONSIDERATIONS ASSOCIATED WITH PURCHASING AND OPERATING ELECTRIC VEHICLES AS PART OF A MASS TRANSIT, UH, FLEET.SO WITH, UM, STARTING WITH THE OPERATIONAL LIMITATIONS, THE, THE MOST IMPORTANT ONE IS THAT AN EV VEHICLE CANNOT OPERATE THE FULL 15 HOURS OF, AT LEAST THE, THE GILLICK VEHICLES CANNOT OPERATE A FULL 15 HOURS OF SERVICE, WHICH IS WHAT WE'RE CURRENTLY PROVIDING.
PRIOR TO THE PANDEMIC, WE WERE ACTUALLY PROVIDING 18 HOURS OF SERVICE FROM 6:00 AM TO MIDNIGHT.
CURRENTLY, WE'RE PROVIDING FROM 8:00 AM TO MIDNIGHT, SO THAT'S 15 HOURS.
SO IN ESSENCE, FOR THERE TO BE ONE VEHICLE, ONE VEHICLE WOULD ONLY BE ELECTRIC VEHICLE WOULD ONLY BE ABLE TO OPERATE 15 HOURS, THEN THAT VEHICLE WOULD HAVE TO BE TAKEN BACK TO THE, UM, YOU KNOW, BACK TO THE FACILITY.
AND ANOTHER VEHICLE WOULD HAVE TO COME TO RELIEVE THAT VEHICLE, WHICH COULD BE ANOTHER EV OR COULD BE A CLEAN DIESEL.
UH, BUT WHAT HAPPENS IS THAT YOU NEED ALMOST TWO IN ORDER TO HAVE ONE IN SERVICE.
SO THAT RAISES THE CAPITAL COST.
UM, THEN AND AS WELL AS THE OPERATING COST, WE, NEVERTHELESS, WE LOOKED AT THREE DIFFERENT SCENARIOS OF SCENARIO ONE WAS JUST 21 CLEAN DIESEL, UH, VEHICLES IN OPERATION.
THE ANNUAL O AND M COST IS $14.7 MILLION AS CURRENTLY NEGOTIATED UNDER A SCENARIO TWO, WE WOULD INTRODUCE ONE ELECTRIC VEHICLE.
IT WOULD, IT WOULD JUST BY VIRTUE OF ADDING ONE EV TO THE FLEET WOULD RAISE THE, UH, TOTAL COST CONTRACT COST TO $15.4 MILLION.
SO THAT'S ABOUT A $700,000 DIFFERENCE.
AND THEN INCREMENTALLY, UH, YOU KNOW, THERE'S THE ECONOMIES OF SCALE.
SO ON AVERAGE, ADDING EACH, ADDING A ELECTRIC VEHICLE WOULD ADD $500,000 A YEAR TO THE OPERATING COST OF THE SERVICE.
SO THESE IMAGES, WAIT, JOSE, CAN YOU GO BACK TO THE OTHER ONE? SO I'M FOLLOWING WHAT YOU WERE SAYING ABOUT THE INCREMENTAL COST, UH, ANNUALLY $700,000.
IS THAT IN, SO THE ANNUAL COST INCLUDES OKAY, THE HOURLY RATES, RIGHT? SO THE HOURLY, YOU HAVE BOTH THE HOURLY RATE 1 27 AND THEN THE HOURLY RATE FOR AN EV IS 2 48.
IS THAT HOW I SHOULD THINK OF THIS? UH, YES.
UM, CAN YOU ALSO TALK ABOUT THE DIFFERENCE BETWEEN THE TROLLEY SYSTEM WE HAVE NOW AND THEIR POLLUTING OUTPUT VERSUS WHAT THE CLEAN DIESEL WOULD BE? BECAUSE WHAT WE HAVE NOW IS AWFUL IN TERMS OF POLLUTION.
SO IF EV IS NOT FEASIBLE, BECAUSE WE DON'T HAVE OUR, YOU KNOW, IT'D BE ONE THING IF IT JUST HAD TO RUN UP TO NORTH BEACH TO GET RECHARGED, OR IF THERE WERE SOLAR PANELS YOU COULD PUT ON THE ROOF THAT IT'S CONSTANTLY RECHARGING AND MAYBE THE NEXT TIME WE NEED TO REPLACE OUR TROLLEYS, THAT TECHNOLOGY WILL EXIST.
BUT I, I WANNA MAKE SURE THAT WHATEVER WE'RE BUYING IS CLEAN, AS CLEAN AS IT CAN BE.
SO CAN YOU ADDRESS THAT A LITTLE BIT? PLEASE? SO, SO EVEN THOUGH WE'RE STAYING WITH DIESEL, WE'RE STILL MOVING FORWARD YES.
IN THE RIGHT ENVIRONMENTAL DIRECTION.
SO, UM, COMMISSIONER, WE, WE, WE DO HAVE A SLIDE THAT WE CAN SHOW, BUT IT'S, IT'S, IT'S GOT A LOT OF NUMBERS THAT COMPARED OUR CURRENT FLEET.
MIND YOU, OUR CURRENT FLEET, UM, IS IS, IT CONSISTS OF 2014 VEHICLES, YOU TELL US, RIGHT? WE DON'T NEED TO SEE A SLIDE.
SO YOU TELL US, YOU KNOW, EVEN IF IT'S MORE QUALITATIVE VERSUS SURE.
I THINK, I THINK JOSE, THAT THE, THE, THE NEW, UH, RECOMMENDATION TROLLEY IS SIGNIFICANTLY, UH, CLEANER FROM AN EMISSIONS PERSPECTIVE THAN OUR EXISTING TROLLEY.
IS THAT CORRECT? THAT'S CORRECT.
AND, AND THE EMISSIONS DATA THAT WE SHOWED ACTUALLY AT THE, IN THE LAST PRESENTATION, WE'RE TRYING TO GET IT NOW, IT WAS BASED ON 2025 NEW GI, NEW GILLICK VEHICLES.
THE 2026 IS EXPECTED TO BE EVEN, EVEN CLEANER.
SO WE, WE COULDN'T, WE COULDN'T LOCATE IT NOW.
BUT, UH, AS COMPARED OUR, A CLEAN DIESEL AS COMPARED TO OUR CURRENT FLEET WOULD, UH, REPRESENTS A 32% REDUCTION IN ANNUAL GREENHOUSE GAS EMISSIONS, A 91% REDUCTION IN NITROUS OX, UH, NITROGEN OXIDE EMISSIONS, AND THEN 85% REDUCTION IN PARTICULATE MATTER EMISSIONS.
THAT'S OUR CURRENT, UH, VEHICLES AS COMPARED TO A NEW GAELIC CLEAN DIESEL VEHICLE, NEW GI, IT'S A SIGNIFICANT IMPROVEMENT 2025.
AND BY THE TIME THIS GOES FORWARD, WE'LL BE GETTING 2026 VEHICLES, WHICH IN THEORY MIGHT BE EVEN SLIGHTLY IMPROVED.
THAT'S, THAT'S SUPER IMPORTANT.
UM, SO AS SOON AS YOU CAN GET THE 2026
[02:20:01]
INFORMATION MM-HMMSO WE CAN, WE CAN BE ABLE TO, BECAUSE I KNOW WE'RE ALL GONNA GET QUESTIONS FROM OUR CONSTITUENTS SAYING, YOU KNOW, WE'RE ALL ALL ABOUT RESILIENCY AND SUSTAINABILITY.
WHY DON'T WE HAVE EVS MM-HMM
WE CAN EXPLAIN TO THEM WHY WE DON'T HAVE EVS, BUT IF WE DON'T ALSO HAVE SOMETHING TO SAY, WE DON'T HAVE EVS, BUT WE USE SOMETHING THAT FOR NOW, FOR THIS GO ROUND IS A, A SIGNIFICANT IMPROVEMENT MM-HMM
BUT WE NEED TO BE ABLE TO BACK THAT UP.
AND I THINK THAT'S WHAT RESILIENCY IS, RIGHT? YOU'RE NOT GOING TO BE PERFECT, RIGHT.
BUT YOU NEED TO TAKE STEPS COLLECTIVELY IN THE RIGHT DIRECTION.
AND I THINK IF, I THINK JUST WHAT WE'RE HOPING TO GET IS SOME DIRECTION HERE TO BE ABLE TO GO BACK TO COMMISSION TO BE IN THE EXECUTION OF THE, UM, OF, OF THE CONTRACT.
AND, AND TRANSPORTATION CAN HAVE SOME MORE DETAIL ON THERE.
AND THEN JUST AS A REMINDER AND DISCUSSIONS WITH THE CHAIR WAS THIS ITEM WAS TO BE RETAINED, UM, SO THAT WE CAN DEAL WITH PROGRAM BUDGETING FOR THE TRANSPORTATION FUND.
UM, AND I THINK JOSE WAS GETTING TO SOME OF THE FINANCIAL ASPECTS.
UM, SO WITH THE GILLIG, IN ESSENCE, UM, 'CAUSE OF THE OPERATIONAL COSTS OR THE COST OF THE VEHICLE, 'CAUSE OF THE COST OF THE VEHICLE, WE GOT A BETTER RETURN ON OUR INVESTMENT.
IN ESSENCE, WE'RE ABLE TO HAVE MORE VEHICLES WITH THE GILLIG, THE CAPITAL COST WITH A A CLEAN DIESEL GILLIG IS, IS LESS.
SO YES, WE WOULD BE ABLE, IN THEORY, THE, OUR, YOU KNOW, OUR, OUR AVAILABLE FUNDING WOULD GO A LONGER WAYS WITH A CLEAN DIESEL VEHICLE BECAUSE THE HOURLY, UH, OPERATING RATE IS LESS, BUT AS OPPOSED TO, TO THE TROLLEY DESIGNS AS OPPOSED TO THE TROLLEY, UH, VEHICLES THAT WE HAVE OUT THERE AS OURS, OUR CURRENT VEHICLE OR THE, AS OPPOSED TO WHAT WAS PROPOSED ON THE SLIDES.
BOTH ARE GILLICK CLEAN DIESEL VEHICLES, WHETHER IT'S THE ONE THAT LOOKS LIKE A BUS, AND ACTUALLY THAT'S THE NEXT SLIDE.
UH, 11 PJ, IF YOU GO TO SLIDE 11, THAT SHOWS THE TWO VEHICLES.
SO THE VEHICLE ON THE LEFT IS THE GILLICK CLEAN DIESEL TROLLEY.
THE ONE ON THE RIGHT IS A GILLICK BUS.
THEY'RE THE SAME VEHICLE EXCEPT THAT THE ONE ON THE LEFT HAS A TROLLEY PACKAGE, WHICH CAUSED AN EXTRA 150,000, 150,000.
THAT RAISES THE, THE, THE COST OF A BIT.
UM, BUT THAT'S, IN ESSENCE, OUR FLEET WOULD BE LESS, IF WE HAD THAT WOULD, WE WOULD HAVE LESS VEHICLES, UH, IF WE, IF WE WENT WITH THAT.
WHICH WOULD IN TURN AFFECT OUR HEADWAY.
SO, UM, DO YOU WANT
YEAH, I THINK, UM, A AMY WANTS TO, UH, ON, ON THE RECORD, WE NEED TO CLARIFY SOME OF THE NUMBERS, BUT WE'LL, WE'LL LEAVE THAT TO THE END.
SO, UM, SO FROM A COST PERSPECTIVE, THE ADDED COST OF THE TROLLEY PACKAGE, AS I MENTIONED, IS $150,000, UH, AS COMPARED TO THE GAELIC BUS.
AND THAT TRANSLATES TO AN ADDITIONAL $4 AND 85 CENTS.
UH, COMMISSIONER TO, TO YOUR $0.40 AND 85 CENTS PER HOUR PER VEHICLE, WHICH ON AN ANNUALIZED BASIS IS $500,000 A YEAR, AND OVER THE LIFE OF THE CONTRACT IS MILLIONS.
HOWEVER, IN SUMMARY, WHEN WE TAKE INTO CONSIDERATION THE EMISSIONS DATA, THE EMISSIONS DATA, THE DESIGN AND THE BRANDING OF THE VEHICLE, INCLUDING THE CITY'S, UH, BRAND THAT, YOU KNOW, WE'VE HAD FOR THE PAST 10 YEARS, AND THEN LAST BUT CERTAINLY NOT LEAST, THE FUNDING, UH, THE VERY REAL FUNDING CONSTRAINTS.
UM, THE ADMINISTRATION'S RECOMMENDATION IS THE 40 FOOT CLEAN DIESEL GILLICK LOW FLOOR TROLLEY WITH DUAL DOORS DID THAT TOO.
WHAT'S OUR ANNUAL COST RIGHT NOW? 9.9 $0.33 MILLION.
SO FOR ANY OF THESE OPTIONS, WHERE'S THE MONEY COME FROM? I THINK THAT'S GONNA BE ME.
UH, IF I CAN, A COUPLE OF ASPECTS TO THIS.
IN TRANSPORTATION, THIS ORIGINAL CONTRACT WAS, UH, THAT SET, THAT $9.3 MILLION VALUE, THOSE RATES WERE SET HOW MANY YEARS AGO? SIX YEARS, SEVERAL YEARS AGO.
AND THERE WAS NO INFLATION INDEX TO THAT RATE, RIGHT? SO JUST ONE THING TO TAKE INTO ACCOUNT, WE KNOW WHAT INFLATION HAS DONE OVER THE PAST SIX, SEVEN YEARS.
I, I GET SO PART OF THAT 9.3 MILLION IT COME FROM, RIGHT? SO THE DIFFERENCE IN THAT SHOWS A FUNDING GAP OF ALMOST $5.4 MILLION.
AND THAT IS PART OF THE REASON WHY, UM, CHAIR IN OUR DISCUSSIONS WAS IT'S IMPORTANT, UH, TO MOVE THIS FORWARD, TO MOVE US INTO NEW BUSES.
UH, BUT THERE NEEDS TO BE SERIOUS BUDGETARY DISCUSSIONS ABOUT CLOSING THAT FUNDING GAP.
NOW, THE TRANSPORTATION FUND HAS MULTIPLE FUNDING SOURCES, UH, INCLUDING SOME RESORT TAXES THAT HAVE MANY SALES TAX AND A FEW OTHER MISCELLANEOUS REVENUES.
SO THAT'S WHY THERE'S AN INTEREST TO HAVE THIS ITEM
[02:25:01]
GO BACK UP TO COMMISSION, UH, TO ALLOW THE ACQUISITION AND THE CONTRACTS TO BE EXECUTED AND THE ITEM TO BE RETAINED, UH, DURING THIS FISCAL YEAR SO THAT WE CAN HAVE PROBABLY MULTIPLE DISCUSSIONS ON PROGRAM BUDGETING.AND WE, WE STARTED THIS DISCUSSION, I DUNNO IF YOU RECALL, AT THE MAY BUDGET RETREAT MM-HMM
WHICH WAS THE SPOTLIGHT OF SAYING, HERE IT IS, WE SEE A FUTURE SHORTFALL COMING UP.
UH, THE OFFICE OF MANAGEMENT BUDGET'S BEEN WORKING WITH TRANSPORTATION BECAUSE WHEN YOU TURN ON THIS BUS CONTRACT, THE BUSES DON'T SHOW UP ON DAY ONE, THEY GET ORDERED, THERE'S LEAD TIME AND THIS IS GONNA BE A TWO TO THREE YEAR OUT ROLLOUT PERIOD OF THAT.
SO IT'S ALL THAT HIT IS NOT GONNA HAPPEN IMMEDIATELY.
UH, SO MB HAS LOOKED AT THIS AND THEY'LL BE PRESENTING THIS IN THE FUTURE, BUT WE HAVE PROBABLY, 'CAUSE THE FUND ITSELF DOES HELP HAVE HEALTHY RESERVES.
UH, BUT WE WILL BE UTILIZING THOSE RESERVES OVER THE NEXT COUPLE YEARS.
SO THIS IS SOMETHING WE SHOULD FIX NOW IN THIS UPCOMING FISCAL YEAR.
UH, BUT WE HAVE PROBABLY TWO TO FOUR YEARS WORTH OF FUNDING TO WHERE WE WOULD HAVE AN ISSUE WHERE THE GENERAL FUND WOULD HAVE TO SUPPORT THIS.
BUT WE NEED TO LOOK AT, UM, FROM A PROGRAM BUDGETING PERSPECTIVE, IS THERE ARE OPPORTUNITIES TO INCREASE REVENUES? IS THERE OPPORTUNITIES TO, UH, REMOVE SOME REDUNDANT, UH, OR UM, UH, ROUTES OR, UH, SERVICES IN THAT FUND? SO WE NEED TO LOOK AT EVERY SINGLE SERVICE THAT'S BEING PROVIDED, WHAT THOSE COSTS ARE, AND MAKE SOME POSSIBLY HARD DECISIONS ABOUT, UH, DO WE WANNA CURTAIL, ELIMINATE, CUT BACK ON SOME OF THOSE PROGRAMS AND SERVICES AND, AND SUCH.
ARE THERE, AND I DON'T KNOW IF THIS IS BEST FOR THE LAWYER THAT'S, UH, HERE FOR THE ENTITY, ARE THERE OTHER OPPORTUNITIES WHERE WE DON'T GO WITH THE LATEST AND GREATEST BUS AND TROLLEY, RIGHT? INSTEAD OF THE 2026? I DON'T, IS THERE A 2024 MODEL THAT WOULD PROVIDE SOME SORT OF COST SAVINGS? RIGHT? I, I'M JUST VERY HESITANT.
YES, WE NEED TO MOVE FORWARD AND START THIS PURCHASE AGREEMENT, BUT I'M HESITANT TO DO SO KNOWING THAT WE HAVE A $5 MILLION GAP THAT I'M SURE WE'RE GONNA WORK HARD TO FIGURE OUT WHERE THIS COMES FROM.
BUT WHERE DOES THIS COME FROM? WELL, AND ALSO IF WE'RE, IF WE'RE EXCEEDING A CONTRACT BASED ON WHATEVER IT WAS, 21 BUSES THAT WE WOULD NEED, BUT THEN WE'RE GOING TO CUT ROUTES THAT ARE UNDERPERFORMING TO SAVE MONEY, THEN WE'RE BUYING BUSES THAT WE DON'T NEED.
LIKE THIS IS, THIS FEELS LIKE IT'S A LITTLE BIT BACKWARDS.
IF, IF I CAN TO THAT, TO THAT POINT, IF THERE'S EVER, UM, LET'S SAY ONE OF THE ROUTES ARE ELIMINATED.
SO THERE YOU DON'T NEED 21 ANYMORE, YOU DON'T NEEDING 18 OR 17.
UM, IS THERE ARE OPTIONS IN THIS CONTRACT THAT WILL ALLOW YOU TO, CAN MAKE CANCELLATIONS IN THAT CASE? 'CAUSE WHEN THE ORDERS GO IN, IT'S AN ASSEMBLY LINE, RIGHT? SO THERE'S MULTIPLE ONES BEING DONE.
SO JUST TO, FOR THE COMMITTEE'S, UH, EDIFICATION TO CLARIFY THAT STATEMENT, THAT WOULD, THAT IF THERE'S A DECISION FOUR OR FIVE MONTHS FROM NOW TO GO FROM A SYSTEM THAT NEEDS 21 TROLLEYS TO 17 TROLLEYS, LET'S SAY MM-HMM
UH, BECAUSE THERE WAS SOME CURTAILMENT, IS THAT ALLOWED IN THIS CONTRACT? SO THE SHORT ANSWER IS YES.
THAT'S ACTUALLY PART OF OUR CURRENT AGREEMENT AS WELL.
IF YOU RECALL DURING THE PANDEMIC, BEFORE THE PANDEMIC, WE WERE OPERATING A HIGHER LEVEL OF SERVICE WITH MORE VEHICLES AFTER THE PANDEMIC.
WE TOOK SOME VEHICLES OFFLINE.
AND THE CONTRACT ALLOWS FOR A SLIDING SCALE OF DIFFERENT HOURS, OF DIFFERENT HOURS OF OPERATION.
AND UM, YOU KNOW, WE'LL JUST NEED TO SEE WITH A REDUCED LEVEL OF SERVICE WITH FEWER VEHICLES.
BUT IT'S, IT'S NOT NECESSARILY THE HOURS OF OPERATION, IT'S THE COST OF, OF ACQUIRING THE BUSES, RIGHT? MM-HMM.
THAT'S THE BIGGEST PART OF THE, THE COST.
AND SO, WELL, MAYBE NOT, BUT IT'S, IT IS A SIGNIFICANT PART OF THE COST MM-HMM
SO IF, IF THE CONTRACT IS BASED, 'CAUSE THEY'RE THEIR BUSINESS PEOPLE, THEY'RE NOT DOING THIS FOR OUT OF THE GOODNESS OF THEIR HEART.
SO THEY'RE AMORTIZING THE COST OF THE CONTRACT BECAUSE THEY KNOW THEY'RE GONNA GET AN ORDER FOR 21 BUSES AND THEY PRICE THE 21 BUSES AT X.
SO IF WE SAY, YEAH, OKAY, THE CONTRACT, WE'RE GONNA SIGN THE CONTRACT WITH 21 BUSES AT X, BUT SIX MONTHS INTO IT OR A YEAR INTO IT, WE'RE LIKE, ACTUALLY WE ONLY NEED 17 BUSES.
WILL THAT STILL BE AT X? OR ARE THEY GONNA JACK UP THE PRICE, THE PER UNIT PRICE TO TRY TO GET TO THEIR FULL AMOUNT THAT THEY HAD BUDGETED? OR THAT THEY HAD EXPECTED? RIGHT.
I'M NOT TALKING ABOUT THE HOURLY, I'M TALKING ABOUT THE, THE COST OF BUYING THE BUS.
THE, THE, THAT'S, THAT'S PART, IF I UNDERSTAND YOUR, YOUR QUESTION COMMISSIONER, I THINK YES, THE CAPITAL COST IS FIXED IN THE CONTRACT.
THERE ARE, UH, THERE'S A PROVISION FOR DIFFERENT LEVELS OF SERVICE.
IF WE BELIEVE THAT WE NO LONGER NEED A FLEET OF 21 AND WE CAN DO IT WITH LESS.
I, THE, THE CONTRACT HAS A PROVISION WHERE THE CITY WOULD HAVE TO PAY THE UNAMORTIZED COST OF THE VEHICLES BECAUSE THE VEHICLES OKAY.
SO THAT'S EXACTLY WHAT I'M GETTING AT.
SO MY UNDERSTANDING IS THAT EVEN IF WE SAY, YOU KNOW WHAT, WE'RE GONNA CUT THESE TWO ROUTES, WE NOW ONLY NEED FOUR, UH, 17 BUSES INSTEAD OF 21.
WE STILL HAVE TO BUY, PAY THE FULL AMOUNT OF THE PURCHASE PRICE OF THE 21 BUSES AT THIS TIME OR AT, OR AT THE TIME OF THE CHANGE.
ONCE WE SIGN THE CONTRACT, WE'RE TALKING ABOUT
[02:30:01]
WE'RE GONNA FIND, UM, A WAY TO MITIGATE THE COSTS, RIGHT? MM-HMMAND IT MIGHT BE THAT WE DROP A COUPLE OF ROUTES MM-HMM
IN THAT CASE, WE MIGHT NOT NEED 21 BUSES.
WE MIGHT ONLY NEED 17 TO SERVICE THOSE ROUTES REALLY WELL.
WE'RE PAYING X NUMBER OF DOLLARS FOR 21 BUSES.
SO IF WE NOW SAY IN A YEAR FROM NOW, YOU KNOW WHAT, I KNOW YOU HAVEN'T BUILT ALL 21 BUSES, SO YOU HAVEN'T PUT ANY MONEY OUT, BUT WE ONLY NEED 17 BUSES.
SO WE ARE, WE WILL PAY 17 TIMES THE COST OF EACH OF THE BUSES THAT WE NEGOTIATED.
BUT WHAT THEY MIGHT SAY IS, NO, YOU NEED TO PAY 17 TIMES THE COST OF WHAT YOU, OF WHAT THE ENTIRETY, I DUNNO HOW TO EX, DO YOU UNDERSTAND WHAT I'M SAYING, JESS? YES.
SO YOU CAN EXPLAIN THAT WE NO LONGER NEED 21, WE ONLY NEED 17.
RIGHT? SO, BUT THEY, WE'VE PUT THAT LARGE UPFRONT CAPEX OUT SO AND SO, SO, BUT WE HA WE WOULDN'T HAVE NECESSARILY PUT THAT LARGE CAPEX OUT BECAUSE WE WOULD BE PAYING AS WE GO, BUT THEY COULD CONCEIVABLY JACK UP THE PRICING OF THE REMAINING BUSES TO EQUAL THE TOTAL AMOUNT OF REVENUE THEY WOULD'VE GENERATED BY SELLING US 21 BUSES.
RIGHT? IS THERE A PENALTY FOR CANCELLATION OF THE NUMBER OF BUSES THAT ARE NEEDED? RIGHT.
SO SIX MONTHS FROM NOW WE DO PROGRAM BUDGETING AND IT'S DETERMINED THAT YOU HAVE A ROUTE SYSTEM THAT ONLY NEEDS THE 17 BUSES.
DO WE HAVE TO PAY FOR THIS FORM AND WE CAN CANCEL THOSE? I I THINK THAT'S A POINT THAT, THAT, UM, WE'LL NEED TO NEGOTIATE A LITTLE FURTHER.
UM, 'CAUSE I DON'T THINK THAT SPECIFIC SCENARIO IS CONTEMPLATED.
I KNOW THE, THE OP YOU KNOW, THE, UH, SELECTED VENDOR IS HERE TODAY.
I'M NOT SURE IF YOU WANT TO HEAR FROM THEM, BUT THEY DO NEED TO, THEY DO NEED TO ORDER THE VEHICLES AND THERE'S AN UPFRONT CAPITAL COST ASSOCIATED WITH THAT.
I DON'T KNOW IF THEY WOULD GET THAT MONEY BACK OR SOME OF THAT MONEY BACK.
SO LOOK, I I, I KNOW MAKING, MIKE, DO YOU WANNA COME TO THE PODIUM? UM, IF YOU DON'T MIND THROUGH THE CHAIR.
LOOK, I KNOW BUILDING SNEAKERS IS NOT THE SAME AS BUILDING BUSES, BUT AT THE END OF THE DAY, IT'S BUILDING WIDGETS, RIGHT? SO WE ARE NOT BUILDING CUSTOM BUSES.
WE'RE NOT EVEN TALKING ABOUT WRAPPING THEM NECESSARILY DIFFERENTLY.
SO THERE'S NO MOLD AMORTIZATION, THERE'S NO CAPITAL STARTUP AMORTIZATION, THERE'S NO FACTORY PRODUCTION STARTUP COSTS OTHER THAN YOU'RE RUNNING ANOTHER LINE, RIGHT? SO, SO WE DON'T HAVE TO AMORTIZE THOSE COSTS FOR, FOR THE COMPANY BECAUSE THEY'RE MAKING THESE BUSES FOR LOTS OF OTHER PEOPLE.
SO WHAT WE ARE DOING IS WE ARE PAYING FOR THE WIDGETS THAT YOU'RE MAKING FOR CITIES ALL OVER THE COUNTRY.
SO THERE SHOULD BE NO, UH, PENALTY FOR CANCELLATION BECAUSE YOU DIDN'T HAVE TO MAKE NEW MOLDS.
YOU'RE NOT RETOOLING A FACTORY LINE, YOU'RE NOT HIRING NEW PEOPLE.
'CAUSE WE'RE NOT GETTING THEM ALL AT ONCE.
WE'RE GETTING THEM AS A, AS THEY ROLL OFF THE FACTORY LINE SO THERE'S NO EXTENSION OF THE, THE FACTORY TO BE ABLE TO HANDLE THIS CAPACITY.
IF WE HAD SAID WE'RE GONNA NEED 21 BUSES AND WE NEED ALL 21 OF THEM TOMORROW, AND THEN HALFWAY THROUGH WE'RE LIKE, OH, JUST KIDDING, WE NEED 17.
THAT'S A DIFFERENT CONVERSATION BECAUSE YOU WOULD HAVE PAID EXTRA PEOPLE BUILT DIFFERENT LINES, YOU KNOW, OUTSOURCE SOME STUFF, BUT THAT'S NOT WHAT'S GOING ON.
SO NOT TO PUT YOU ON THE SPOT, BUT YOU KNOW WHAT GIVES MAN.
SO, UH, FOR THE RECORD, UH, MR. CHAIR COMMISSIONERS MIKE ENTE WITH LS N LAW, WE REPRESENT LSF.
UM, ALL YOUR POINTS ARE VERY VALID POINTS.
I AGREE WITH ABSOLUTELY EVERYTHING YOU SAID.
UM, WHAT I CAN TELL YOU IS THAT THE STANDARD, WELL, NUMBER ONE, UH, THESE VEHICLES ARE IN VERY, VERY HIGH DEMAND, RIGHT? UM, WHICH IS WHY YOU HAVE, UM, UH, THERE, THERE'S QUITE A LENGTHY PERIOD BEFORE ALL THE VEHICLES ARE DELIVERED.
UM, THE STANDARD CONTRACT WITH GILLI REQUIRES A 20% NON-REFUNDABLE DEPOSIT.
RIGHT? UM, WE HAVE SECURED WHAT WE THINK IS FAVORABLE PRICING.
UM, WE HAVE CONVINCED GILI TO EXTEND THAT PRICING, WHICH THEY TYPICALLY WILL ONLY GUARANTEE FOR A PERIOD OF, I THINK IT'S UP TO 90 DAYS AT THIS POINT.
WE'VE, WE'VE ASKED THEM TO EXTEND IT FOR AN ADDITIONAL PERIOD OF ABOUT 90 DAYS, RIGHT? SO WE HAVE, WE HAVE NEGOTIATED AS HARD AS WE CAN IN, IN, IN THE CITY'S INTERESTS.
UM, WHETHER THERE'S ANY ADDITIONAL GIVE THERE, WE CAN GO BACK TO GILLIG, UM, TO, TO, TO SEE IF THAT'S A POSSIBILITY.
BUT AGAIN, I I, I DO THINK IT'S WORTH MENTIONING THAT, UM, WE ARE NOW ALREADY IN SORT OF ONE OF THOSE EXTENSION PERIODS.
UH, THEY GAVE US QUOTES ON THE PRICING QUITE A NUMBER OF MONTHS AGO.
AND EVERY TIME WE'VE GONE BACK TO THEM, 'CAUSE WE'VE BEEN AT THIS FOR SOME TIME ALREADY, EVERY TIME WE GO BACK TO GILLIG, THERE'S AN EFFORT TO INCREASE THE PRICE, RIGHT? SO I I, YOU KNOW, WE ARE HAPPY TO GO BACK TO THEM.
WE ARE HAPPY TO SEE IF THERE IS, IF THEY'RE OPEN TO, UM, SORT OF ADJUSTING THAT NON-REFUNDABLE DEPOSIT LANGUAGE.
I I'M NOT, I'M NOT WORRIED ABOUT THE NON-REFUNDABLE DEPOSIT THAT WILL COME BECAUSE WE ARE GOING TO BE BUYING AT LEAST 17 FOR THE SAKE OF ARGUMENT, AT LEAST 17 BUSES, RIGHT? SO THAT WILL BE COVERED.
[02:35:01]
WE NO LONGER NEED 21, DO WE STILL HAVE TO PAY 21 EVEN THOUGH WE'RE NOT TAKING DELIVERY OF 21? AND BY THAT I MEAN THAT THE COST THAT THEY WOULD'VE REALIZED BY THOSE EXTRA FOUR BUSES THEN GETS BAKED INTO THE, YOU KNOW, IT JUST IS THE COST.WHETHER YOU SPEND IT ON 21 BUSES, 17 BUSES, IT DOESN'T MATTER.
BECAUSE THAT IS NOT, THAT'S NOT, THAT'S NOT A CORRECT WAY OF CONDUCTING BUSINESS UN UNDERSTOOD.
AND SO I, IF I'M UNDERSTANDING CORRECTLY, I THINK WHAT YOU WOULD BE SUGGESTING IS TO TAKE THE 20% NON-REFUNDABLE DEPOSIT FOR THE FOUR BUSES THAT ARE CANCELED AND APPLY THAT TOWARD THE CAPITAL EXPENSE FOR THE REMAINING 17 BUSES.
RIGHT? WHICH, WHICH IS WHY I'M GOING BACK TO THE NON-REFUNDABLE LANGUAGE.
IT'S SOMETHING WE ARE HAPPY TO TAKE BACK TO THEM.
E EITHER WAY, WHAT I'LL SAY IS, UM, OUR NEXT FERC MEETING, MR. CFO IS THE 17TH, SOMETHING LIKE THAT.
IT'S ACTUALLY BEFORE OUR NEXT COMMISSION MEETING.
WE'RE NOT GONNA CLOSE THIS OUT TODAY BECAUSE LISTEN, IT WOULD BE EASY TO SIT HERE AND SAY, YES, LET'S REFER THIS TO THE FULL COMMISSION.
AND I NEED TO UNDERSTAND LIKE, HOW DO WE EVER GET THERE WHERE, I MEAN, WE'VE, WE'VE BEEN TALKING ABOUT THIS SINCE MAY, THAT WE HAVE A $5 MILLION GAP BETWEEN WHAT OUR CURRENT OPERATING EXPENSES ARE VERSUS WHAT OUR PROFORM OPERATING EXPENSES ARE.
WE CAN'T JUST SAY, WELL, WE'LL WE'LL MAKE BEST FACE EFFORTS TO INCREASE REVENUES FOR OUR TRANSPORTATION DEPARTMENT WHEN WE TALK ABOUT ADVERTISING THAT, THAT SURROUNDING EARTH, RIGHT? 200,000.
OKAY, MAYBE WE GET $400,000 THAT DOESN'T GET US THERE.
RIGHT? AND DO WE CHARGE, I I SHOULD KNOW THIS.
SO, SO THAT IS ANOTHER HARD CONVERSATION THAT WE HAVE THAT MAYBE, MAYBE IT'S, IT'S A DOLLAR A RIDE, WHICH IS NOT A LOT OF MONEY, BUT FOR SOME PEOPLE, YOU KNOW, EVERY DOLLAR COUNTS.
I, BUT THESE ARE THE CONVERSATIONS THAT NEED TO BE HAD.
AND I UNDERSTAND THAT IT'S A LITTLE BIT OF A RED HERRING TO SAY, OH MY GOD, THE COSTS HAVE GONE UP SO MUCH, WHAT'S GOING ON? BECAUSE THE LAST CONTRACT DIDN'T REFLECT THE, THE INCREASE THE CPI INCREASE, WHICH, YOU KNOW, I, I WOULD LIKE TO THINK THAT GOING FORWARD, EVERY CONTRACT THAT WE NEGOTIATE, I DON'T KNOW WHY IT HASN'T BEEN DONE THIS WAY, BUT EVERY SINGLE THING WE NEGOTIATE AND PAY FOR OVER TIME SHOULD HAVE CPI BUILT IN.
SO WE'RE NOT HAVING THESE CONVERSATIONS LIKE, OH MY GOD, YOU KNOW, PRICES HAVE GONE UP, YOU KNOW, A BAZILLION PERCENT.
WELL, THEY HAVE ACTUALLY GONE UP A BAZILLION PERCENT AND NOW WE'RE JUST PLAYING CATCH UP.
UH, SO IF WE CAN, LET'S, WE'RE GOING TO HEAR THIS AT OUR NEXT FERC AS WELL.
WE WE'RE NOT IN A POSITION TO MOVE ON THIS BECAUSE IT'D BE DERELICTION OF DUTY TO JUST MOVE THIS ALONG KNOWING THAT WE HAVE A $5 MILLION SHORTFALL THAT WE NEED TO MAKE UP SOMEWHERE.
WHAT WE CAN, WHAT WE CAN DO, IF THAT'S THE DIRECTION IS WE CAN MAYBE MAKE A TIME SERVED.
THIS IS GONNA BE A LONGER, MORE IN DEPTH DISCUSSION IS, AND IT SOUNDS LIKE TRANSPORTATION HAS SOME DISCUSSIONS TO DO.
UH, BUT WE CAN MAKE THIS RIGHT AT THE BEGINNING TIME CERTAIN AND, AND, UH, 'CAUSE I THINK IT'S A VERY IMPORTANT ITEM.
IT HAS A, AN EXPIRATION OF SOME, SOME ASPECT HERE.
I MEAN, WE'RE GOING TO, YOU KNOW, HOPEFULLY DEDICATE AS MUCH TIME AS WE CAN STILL HAVE NEXT COMMISSION MEETING.
WE JUST NEED TO HEAR THE FERC AGAIN.
BUT IT'S ALSO, WE NEED TO WORK WITH THE CITY STAFF FOR YOU ALL TO HELP US UNDERSTAND WHERE THIS MONEY IS GOING TO COME FROM.
'CAUSE THE, THE IDEA IS IF I, I WOULD ASSUME JUST TOP LEVEL, THAT IT WOULD BE A MIX, A BLEND OF PROBABLY SOME, SOME SERVICE REDUCTIONS AND GENERAL FUND SURPLUSES AND, UH, OR, OR TRANSFERS, I'M SORRY.
UH, AND SOME OTHER PERHAPS SERVICE CUTS.
SO WE WILL HEAR THIS, UH, CONTINUOUS.
SO SOCIALLY I DISCUSSED IN THE RETURN, AND THEN WE HAVE THAT LAST ITEM.
YES, I DID TALK TO THE DIRECTOR.
NUMBER ONE, I CON CONFIRMED WITH MY CLIENT AND, AND CONFIRMED THAT THE PRICING WE RECEIVED FROM GILLI EXPIRED IN AUGUST.
WE GOT AN EXTENSION THROUGH OCTOBER, WHICH IS HIGHLY UNUSUAL.
SO WE'RE NOT SURE THEY WOULD GIVE US AN ADDITIONAL EXTENSION STILL, BUT WE STILL HAVE AN OPPORTUNITY.
WE'RE IN THE SAME TIMELINE, RIGHT? WE HAVE AN OPPORTUNITY TO RECONVENE AT FERC BEFORE THE OCTOBER 29TH COMMISSION MEETING.
AND THEN THE SECOND POINT IS, JUST FOR CLARIFICATION, WE WERE TALKING ABOUT 21 TROLLEYS.
THERE'S ALSO A REQUIREMENT OF 20% SPARES, RIGHT? SO WE'RE REALLY TALKING ABOUT 26 TROLLEYS, RIGHT? THAT'S THE, THE, THE BUDGET WE'RE TALKING ABOUT.
WAIT, SO ARE WE, OR, OR THAT'S FROM THE ASSISTING PLEA 21 TROLLEYS IN SERVICE AND THEN THERE'S A SPARE RATIO OF 20%.
SO, SO THE, THE TOTAL NUMBER OF TR THE, THE, THE SORT OF BUDGET WE ARE DISCUSSING MM-HMM
ASSUMES A PURCHASE OF 26 TROLLEYS, WHICH IS 21 IN SERVICE PLUS.
BUT THAT WOULD BE THE, THE SAME RATIO.
SO IF WE ONLY NEED 17, THEN WE'D ACTUALLY BE BANG 21 FOR THE SPACE SPARE.
EITHER WAY, LET'S HAVE THIS MORE ROBUST DISCUSSION NEXT.
NEXT, UH, IN A COUPLE OF WEEKS.
BUT FROM A HIGH LEVEL, WE NEED TO FIGURE OUT WHETHER IT'S THREE AND HALF MILLION DOLLARS, $4 MILLION, $5 MILLION, WHERE WE'RE GONNA COME FROM BEFORE WE MAKE A RECOMMENDATION.
CERTAIN, RIGHT? MATT, YOU WANNA SEE SOMETHING QUICK? BUT THEN WE INVITE YOU AND ENCOURAGE YOU TO COME NEXT MONTH WHERE IT'S OF COURSE ROBUST.
[02:40:01]
CHAIR.AND THIS IS SUPER IMPORTANT, AS YOU KNOW.
UH, I THINK ONE QUESTION THAT YOU PROBABLY SHOULD TRY TO ANSWER TODAY IS, ARE YOU GONNA GO WITH THAT OLD FASHIONED LOOK? ARE YOU GONNA GO WITH A MORE MODERN BUS THAT MIGHT, UH, ENCOURAGE MORE PEOPLE TO RIDE IT AND IT'S A MORE, MORE COMFORTABLE BUS AS WELL? AND I JUST WANNA POINT OUT IN HERE THAT THE CITY IN THEIR OWN NOTE, UH, POINTED OUT THAT THERE WAS NO DATA FROM THE MANUFACTURER TO BACK UP THEIR CLAIMS ON THE EFFICIENCY GAINS, UM, AND THE EMISSIONS GAINS FROM THE CLEAN DIESEL.
I THINK THAT IS ANOTHER IMPORTANT THING THAT HOPEFULLY YOU COME BACK WITH, UH, TO MATCH THE CONTEXT.
AND JUST FOR THE RECORD, MATTHEW HANOFF, 1 25 JEFFERSON AVENUE.
FOR YOU DO FOR OUR COMMUNITY, MATTHEW.
UM, AND WE'LL HEAR THE ELEVATOR PERMIT FEE.
UH, MR. CITY ATTORNEY, COULD YOU RECORD ME AS A YES FOR THAT VOTE? AND
[NB 3. DISCUSS THE PROPOSED AMENDMENT TO THE CITY CODE, INCREASING THE FEES CHARGED FOR THE TEMPORARY USE PERMIT RENEWALS FOR ELEVATORS.]
MB THREE DISCUSSED, UH, PROPOSED AMENDMENT TO THE CITY CODE, INCREASING FEES CHARGED FOR THE TEMPORARY USE PERMIT RENEWALS FOR ELEVATORS.JOHN NORRIS, PUBLIC WORKS DIRECTOR, PLEASE GO.
WE'RE BRINGING THIS ITEM TO YOU BECAUSE WE HAVE TEMPORARY USE PERMITS FOR ELEVATORS.
ONCE AN ELEVATOR IS SUBSTANTIALLY COMPLETE, IT IS SAFE TO OPERATE.
WE OFFER A CONDITION OR A TEMPORARY USE PERMIT FOR THE AMOUNT OF $2,090 TO EXTEND THAT AS $162 FOR EACH TIME.
SO WHAT WE FIND IS PEOPLE WON'T FINISH THEIR ELEVATORS.
THEY HAVE PLENTY OF TIME TO GET THE PUNCH LIST DONE.
IF WE RAISE THE RENEWAL FOR A TEMPORARY USE, IT WILL ENCOURAGE PEOPLE TO ACTUALLY GET THE ELEVATOR COMPLETE.
RECOMMENDATION, RECOMMENDATION.
WE'RE LOOKING FOR A MOTION TO RETURN TO COMMISSION, THE FAVORABLE RECOMMENDATION TO APPROVE THE FEE ADJUSTMENT AS DISCUSSED.
COULD YOU JUST CLARIFY WHAT THE FEE ADJUSTMENT IS? THE FEE ADJUSTMENT GOES FROM $162 FOR A RENEWAL TO 2090, WHICH IS THE ORIGINAL FEE FOR TEMPORARY USE.
SO ESSENTIALLY YOU'LL GET A TEMPORARY USE EVERY THREE MONTHS IF THAT'S WHAT YOU CHOOSE TO DO.
SO IS THERE A CASE, AND I KNOW WE NEED TO LEAVE, BUT IS THERE A CASE WHERE YOU MIGHT NEED ONE RENEWAL JUST TO FIX STUFF AND THEN AFTER THAT IT GOES STRAIGHT UP? OR IS THAT NOT HOW IT'S ACTUALLY BEING LIKE, I DON'T WANNA PENALIZE THE PEOPLE WHO REALLY ARE TRYING TO GET IT DONE.
AND YOU KNOW, LIKE DURING COVID, THERE WERE SUPPLY CHAIN ISSUES, SO I WOULD BE IN FAVOR OF DOING A ONETIME RENEWAL TO GIVE YOU AN EXTRA THREE MONTHS AND THEN AFTER THAT YOU HAVE TO GO UP.
APPROVE THE FEE ADJUSTMENT AS AMENDED.
UH, WE WILL SHOW COMMISSIONER B UH, MAKING THE MOTION.