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HomeMy WebLinkAbout2011-1020 Regular City Commission Meeting ------ SUMMARY MINUTES Regular City Commission Meeting Thursday, October 20,2011,6:30 p.m. City of Sunny Isles Beach, Florida ATTENTION ALL LOBBYISTS: CITY LAW REOUIRES YOUR REGISTRATION PRIOR TO ENGAGING IN LOBBYING ACTIVITIES BEFORE CITY STAFF, BOARDS, COMMITTEES OR THE CITY COMMISSION. PLEASE CONTACT THE CITY CLERK FOR FORMS AND ADDITIONAL INFORMATION. AGENDA 1. CALL TO ORDER / ROLL CALL OF MEMBERS The meeting was called to order by Mayor Edelcup at 6:30 p.m. with the following officials present: Mayor Norman S. Edelcup Vice Mayor Lewis J. Thaler Commissioner Isaac Aelion Commissioner Jeanette Gatto Commissioner George "Bud" Scholl City Manager Alan J. Cohen City Attorney Hans Ottinot Assistant City Manager MinaI Shah City Clerk Jane A. Hines, CMC 2. PLEDGE OF ALLEGIANCE / INVOCATION Action: Cliff Schulman, Esq. led the Pledge of Allegiance to the flag, and City Historian Richard C. Schulman gave the invocation. Mayor Edelcup gave opening remarks of decorum. 3. APPROV AL OF MINUTES 3A. Special City Commission Meetingll sl Budget Hearing FY 2011/2012 - Sept. 6, 2011. 3B. Regular City Commission Meeting - September 15,2011. 3C. Special City Commission Meeting/2nd Budget Hearing FY 2011/2012 - Sept. 20, 2011. 3D. Special City Commission Meeting - September 20, 2011. 3E. Special City Commission Meeting - October 4, 2011. Action: Vice Mayor Thaler moved and Commissioner Aelion seconded a motion to approve each set of the above Summary Minutes. The motion was approved by a voice vote of 5- o in favor. 4. ORDER OF BUSINESS (Additions/Deletions/Amendments) 4A. Request to Hear Items: Revisions: Item 7C. Zoning Ordinance; Item 10D. Revised Cover Memo for Home Depot Purchases; Add-On: Item 10L. Temporary Sales Office at Acqualina; Item 10M. Memo of Understanding with Surfside. Action: Mayor Ede1cup noted the above changes to the agenda. Commissioner Aelion moved and Commissioner Scholl seconded a motion to approve the above changes to the agenda. The motion was approved by a voice vote of 5-0 in favor. - - -- - ------ --- - -- -. - - Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida 5. SPECIAL PRESENT A TIONS SA. City Commission Employee Recognition Program: Certificates of Appreciation to be presented to the following City Employees: Alayne Yeash, Francesca Pellot, Tony Payne, and Rob Williamson for going above and beyond the call of duty. Action: Mayor Edelcup reported that these employees went above and beyond their call of duty in the performance of their duties, and the City Commission presented the Certificates of Appreciation and noted that each recipient will receive a $100 check. They will also be recognized at an employee annual luncheon on December 20, 2011. 5B. Certificate of Appreciation to be presented to Alvaro Minor for donating his time and talents working pro bono for the City's Summer Camp 2011. Action: Mayor Edelcup presented the Certificate of Appreciation to Alvaro Minor. 6. ZONING None 7. ORDINANCES FOR FIRST READING 7 A. An Ordinance ofthe City Commission of the City of Sunny Isles Beach, Florida, Authorizing the Issuance of Not Exceeding $10 Million of Capital Improvement Revenue and Revenue Refunding Bonds of the City of Sunny Isles Beach, Florida; Approving a Loan Agreement in Respect of Said Bonds; Authorizing the Execution and Delivery of the Loan Agreement in Substantially the Same Form Attached Hereto as Exhibit "A"; Providing for Severability; Providing for Repealer; Providing for an Effective Date. Action: City Clerk Hines read the title, and Assistant City ManagerlFinance MinaI Shah reported this ordinance allows the City to issue $10 Million in revenue bonds of which $7.575 Million will be used to refund existing bonds currently being paid at an interest rate of 4.99%. The new bond will be at 2.38% and we will recognize approximately $127,000 annual savings on the refunding. The additional balance will cost the City about $197,000 and an additional debt service annually of about $60,000. Public Speakers: none Mayor Edelcup said we are refunding money at 5% for money at 2.38%, more than 50% less than what we originally sold bonds for in 2001, and it is a tribute to the financial stability of our City that we had many banks interested in bidding for our bonds. The tax payers of this City are the beneficiaries of this tremendous savings. He thanked Assistant City Manager Shah and her staff for going out and researching the refunding ofthese bonds and saving the City money each and every year for the next 15 years for a total savings of $1.89 Million. Commissioner Scholl moved and Commissioner Gatto seconded a motion to approve the proposed ordinance on first reading. The motion was approved by a roll call vote of 5- o in favor. Second reading, public hearing will be held at a Special Commission Meeting on Wednesday, November 9, 2011, at 3:00 p.m. Vote: Commissioner Aelion yes Commissioner Gatto yes Commissioner Scholl yes Vice Mayor Thaler ~ Mayor Ede1cup yes 2 - - - --- Summary Minutes: Regular City Commission Meeting October 20,2011 City of Sunny Isles Beach, Florida 7B. An Ordinance ofthe City Commission of the City of Sunny Isles Beach, Florida, Amending Section 33-2 of the Code of Ordinances of the City of Sunny Isles Beach Relating to Lobbyist Registration and Fees; Providing for Severability; Providing for Repealer; Providing for Inclusion in the Code; Providing for an Effective Date. Action: City Clerk Hines read the title, and City Attorney Ottinot reported that the purpose of this proposal is to be less bureaucratic. If a person hires a Lobbyist to represent him or her before the Commission or staff, that person does not need to register. However, if a person does not hire a Lobbyist, that person will be required to register. This is a clarification of what we have been doing over the years. Public Speakers: none Vice Mayor Thaler moved and Commissioner Aelion seconded a motion to approve the proposed ordinance on first reading. The motion was approved by a roll call vote of 5- o in favor. Second reading, public hearing will be held on Thursday, November 17, 2011, at 6:30 p.m. V ote: Commissioner Aelion yes Commissioner Gatto yes Commissioner Scholl yes Vice Mayor Thaler yes Mayor Edelcup ~ 7C. An Ordinance ofthe City Commission of the City of Sunny Isles Beach, Florida, Amending Chapter 265 "Zoning" Including Section 265-37 "Town Center Zoning District" to Provide for Transferring Building Heights within the Sunny Isles Beach Boulevard South Edge Street Type within the Town Center District; and Including Amending Section 265-35 "Mixed Use- Resort District (MU-R)" to Modify Floor Area Ratio Bonuses, Establish Federal Aviation Administration Restrictions as Height Limitations Therein, Adiust Interior Side Setbacks for Parcels 200 Feet or More in Width, and to Permit Connecting Bridges Between Certain Adjacent Properties; and Including Amending Section 265-23 "Transfers of Development Rights" to Establish Federal Aviation Administration Restrictions as the Height Limitation for Receiving Sites; Providing for Zoning in Progress; Providing for Repealer; Providing for Severability; Providing for Inclusion in the Code; Providing for an Effective Date and Applicability. Action: [City Clerk's Note: A revised Ordinance was distributed prior to the meeting. See Item 4A for additional action.] City Clerk Hines read the title, and City Attorney Ottinot reported noting that a revised Ordinance was distributed. The purpose of this proposal is to revise several sections of the City's Zoning Code to provide development incentive for new projects. In Section 265-35 MUR District, under the current City Code the base intensity generally known as the Floor Area Ratio CF AR) can be increased through a Bonus System in the City Code. Under the proposed Ordinance the maximum FAR would increase from 4.0 to 4.6 with the use of Bonuses. The proposed Ordinance increases the Streetscape Bonus to provide more funding for decorative sidewalks, similar to what we have on the west side of Collins Avenue, we will be able to put those sidewalks on the east side. We will also have more funding for underground utilities. We also will create a new Bonus called the "Educational and Cultural Bonus" to provide funding for school and cultural related capital 3 Summary Minutes: Regular City Commission Meeting October 20,20 II City of Sunny Isles Beach, Florida projects. We also increased the Beach Enhancement Bonus slightly to provide funding for the Beach Renourishment Project. In addition to the Bonus revision, we also amended the MUR District regulation to eliminate inconsistencies regarding height limitation to ensure consistency with Federal Law which is regulated by the Federal Aviation Administration (FAA). We also amended the Code to permit a 5% variation on the width of property on Collins Avenue to be permitted to have a 20-foot side setback instead of a 50-foot side setback. In the Town Center District, the proposed ordinance will allow height flexibility with phased projects on the south side of Sunny Isles Boulevard. Specifically, a proposed development project may increase the height in a certain building to a maximum of290 feet iftwo conditions are met: 1) if all the buildings average 200 feet in height; and 2) if adjacent to Collins Avenue is under 140 feet. The bottom line, all the buildings in that phased project when you calculate it, the average height must be 200 feet. An additional change in the MUR District is to allow adjoining property where there is commonality of interest or ownership to have a connective pedestrian bridge that will meet the Florida Building Code. He also provided a sample in terms of funding by comparing what the City would receive under the current Ordinance and this proposed Ordinance. Public Speakers: Cliff Schulman; Gil Dezer; Warren Stamm Mayor Edelcup clarified that the MUR District is on the oceanfront, and we are talking strictly about the east side of Collins Avenue. City Attorney Ottinot pointed out that this proposed Ordinance does not increase density, the number of units an applicant can build. This proposal only allows bigger sized units, not more units. Mayor Edelcup noted then that the number of people in a unit doesn't basically change but the unit that they may live in might be larger then currently permitted under our Code. Vice Mayor Thaler noted that a builder does not have to take all the bonuses, this is the maximum that we can get on an acre. Cliff Schulman, Esq. said when the City first created the MUR District, the FAA limited heights in Sunny Isles Beach to 550 feet, and Acqualina was built at 549-feet 6-inches in order to meet the FAA requirements. Since then the FAA changed their regulations, and he wants to correct something for the record that those regulations now allow buildings 1,200 to 1,400 feet high in Sunny Isles Beach, that is not true. What they do allow are buildings now to 649 feet as opposed to 550 feet in Sunny Isles Beach, and so he asked that the City Commission look at that and that is in the Ordinance to allow them to go up to that. Perhaps the most important point made by the City Attorney was that none of the changes proposed today adds one additional unit of density, it reallocates it, it redistributes it, it allows builders to build. For example, their project "Mansions at Acqualina" has an average unit of 4,000 square feet with their Penthouse Units being 8,000 square feet. What does that do for them, we are able to charge more. What does that do for the City, the taxes that the City will collect on 4,000 square foot units and 8,000 square foot units are a significant improvement. The changes that they have also suggested will show a varied skyline in the City, portions of the south district by the Town Center District are uniformly shown at 200 feet, this will allow changes in the skyline without an increase in density or intensity. Mr. Schulman said that we will now have a new amenity in the City of Sunny Isles Beach, we will have a skywalk between adjoining properties that will be able to be traversed above grade under roof but not enclosed, not to obstruct any beach access or any beach access views, we are looking forward to doing that at the Mansions at Acqualina and coordinating it, 4 ---- - Summary Minutes: Regular City Commission Meeting October 20,2011 City of Sunny Isles Beach, Florida integrating physically the two buildings so that they may react together. They are going to have the larger units as he had indicated, and they are going to reduce the height in the Sunny Isles Boulevard District closest to Collins Avenue significantly, from 200 feet down to 140 feet, closest to AlA. What does this do for us, it gives architects working for developers that are interested in Sunny Isles Beach added flexibility without increasing the density in the City by one unit. Gil Dezer and Warren Stamm, Esq. said they also support this Ordinance. Mayor Edelcup said that he would hope that the Federal Government learns what stimulus is all about, and that the City of Sunny Isles Beach was not waiting for the Federal Government to create a stimulus program to bring jobs to South Florida. Hopefully other cities will emulate some ofthe positive steps that we are taking to bring construction back to this State. Commissioner Scholl moved and Commissioner Aelion seconded a motion to approve the proposed ordinance on first reading, as amended. The motion was approved by a roll call vote of 5-0 in favor. Second reading, public hearing will be held on Thursday, November 17, 2011, at 6:30 p.m. V ote: Commissioner Aelion ~ Commissioner Gatto ~ Commissioner Scholl yes Vice Mayor Thaler yes Mayor Edelcup yes 8. PUBLIC HEARINGS (Other than Ordinances for Second Reading) None 9. ORDINANCES FOR SECOND READING (Public Hearings) Sitting in as the Local Planning Agency and the City Commission, to Consider the Following Ordinances Amending the Land Development Regulations (LDRs): 9A.l A Resolution of the Local Planning Agency of the City of Sunny Isles Beach, Florida, Recommending to the City Commission of Sunny Isles Beach, the Ordinance Amending Article V ofthe City Code by Creating a New Section 265-24, Entitled "Private Purchase of Air Rights Not as Part of the Transfer of Development Rights Program" ("TDR Program"), Attached as Exhibit "A"; Providing for an Effective Date. Action: City Clerk Hines read the title. Public Speakers: none Commissioner Scholl moved and Vice Mayor Thaler seconded a motion to approve the resolution. LPA Resolution No. 2011-67 was adopted by a voice vote of 5-0 in favor. 9A.2 An Ordinance ofthe City Commission ofthe City of Sunny Isles Beach, Florida, Amending Article V of the City Code by Creating a New Section 265-24, Entitled "Private Purchase of Air Rights Not as Part of the Transfer of Development Rights Program" ("TDR Program"); Providing for Repealer; Providing for Severability; Providing for Inclusion in the Code; Providing for an Effective Date. (First Reading 09115111) 5 Summary Minutes: Regular City Commission Meeting October 20,20 II City of Sunny Isles Beach, Florida Action: City Clerk Hines read the title, and City Attorney Ottinot reported that this Ordinance will ensure compliance with the Transfer of Development Rights Ordinance that the City has in place. It will prohibit any party from buying air rights without disclosure from the City. Public Speakers: None Commissioner Scholl said if a neighboring property bought air rights, you are saying that would give them the right to keep that property from building higher, isn't that a deed restriction, and City Attorney Ottinot said it is the same. Let's assume they enter into a deed restriction without the City knowing, and the reason why this Ordinance is proposed by the Mayor is that the City at least needs to know. It requires disclosure that if a property is restrictive in terms of Development Rights, the City would know. It doesn't restrict the ability to transact or enter into a deed restriction but it allows the City to know. Mayor Edelcup said the reason he asked for this is primarily for the comment from the City Attorney to be able to record at the City level and to know what is happening, but secondly to clarify for now and into the future, that there are no buildable rights that go with air rights. His primary goal was to differentiate air rights from TDRs. Commissioner Scholl moved and Vice Mayor Thaler seconded a motion to adopt the ordinance. Ordinance No. 2011-370 was adopted by a roll call vote of 5-0 in favor. V ote: Commissioner Aelion yes Commissioner Gatto ~ Commissioner Scholl yes Vice Mayor Thaler ~ Mayor Edelcup ~ 9B. An Ordinance ofthe City Commission ofthe City of Sunny Isles Beach, Florida, Amending Section 26-6 of the City Code to Revise the Qualifying Period Dates of the General Election for the Office of Mayor or City Commissioner; Providing for Repealer; Providing for Severability; Providing for Inclusion in the City Code; Providing for an Effective Date. (First Reading 091l51ll) Action: City Clerk Hines read the title, and Mayor Edelcup reported noting that the qualifying dates for next year are August 14 to August 17, 2012. Public Speakers: None Vice Mayor Thaler moved and Commissioner Gatto seconded a motion to adopt the ordinance. Ordinance No. 2011-371 was adopted by a roll call vote of 5-0 in favor. V ote: Commissioner Aelion ~ Commissioner Gatto yes Commissioner Scholl yes Vice Mayor Thaler ~ Mayor Edelcup yes 6 ---- ------- Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida 9C. An Ordinance of the City Commission ofthe City of Sunny Isles Beach, Florida, Amending Chapter 14-16 of the City Code to Authorize Code Enforcement Lien Search Fees; Providing for Severability; Providing for Inclusion in the Code; Providing for Repealer; Providing for an Effective Date. (First Reading 09115111) Action: City Clerk Hines read the title, and City Manager Cohen reported that this is establishing fees, and we are differentiating between fees for regular searches and those where the customer would like us to perform an expedited 24-hour search. Public Speakers: None Commissioner Aelion moved and Vice Mayor Thaler seconded a motion to adopt the ordinance. Ordinance No. 2011-372 was adopted by a roll call vote of 5-0 in favor. V ote: Commissioner Aelion ~ Commissioner Gatto ~ Commissioner Scholl ~ Vice Mayor Thaler yes Mayor Edelcup ~ 9D. An Ordinance of the City Commission ofthe City of Sunny Isles Beach, Florida, Amending Section 267.2(B) of the Code of Ordinances of the City Sunny Isles Beach, Providing for Adoption of a Revised Fee Schedule for Planning and Zoning Services; Providing for Severability; Providing for Repealer; Providing for Inclusion in the Code; Providing for an Effective Date. (First Reading 09115111) Action: City Clerk Hines read the title, and City Manager Cohen reported that this is clarifying our fee schedule, and creating fees for new specific items. It is also segregating application types so that we have a lesser fee for smaller applications like single family residences. He also noted that the Ordinance was done at the initiative of Commissioner Aelion. Commissioner Aelion pointed out that it allows for a one-time accumulative fee for different fields to be applied under one umbrella and one fee per year for a condominium. Public Speakers: None Commissioner Aelion moved and Vice Mayor Thaler seconded a motion to adopt the ordinance. Ordinance No. 2011-373 was adopted by a roll call vote of 5-0 in favor. V ote: Commissioner Aelion yes Commissioner Gatto yes Commissioner Scholl yes Vice Mayor Thaler yes Mayor Edelcup yes 9E. An Ordinance of the City Commission of the City of Sunny Isles Beach, Florida, Amending Ordinance No. 2010-352; Amending the City's Budget for the 2010-2011 Fiscal Year; Authorizing the City Manager to Do All Things Necessary to Implement the Terms and Conditions of this Ordinance; and Providing for an Effective Date. (First Reading 09/15/11) 7 Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida Action: City Clerk Hines read the title, and Assistant City Manager/Finance Minai Shah reported that this Ordinance amends the General Fund Budget by $121,000 to allow for costs related to the IS-year history book, the FDOT Parking Agreement under the Lehman Causeway as well as three replacement parking meters for the Lehman Causeway. The remaining items have been presented to Commission previously in Resolution form. Public Speakers: None Vice Mayor Thaler moved and Commissioner Aelion seconded a motion to adopt the ordinance. Ordinance No. 2011-374 was adopted by a roll call vote of 5-0 in favor. V ote: Commissioner Aelion yes Commissioner Gatto yes Commissioner Scholl ~ Vice Mayor Thaler yes Mayor Edelcup yes 10. RESOLUTIONS lOA. A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Approving an Agreement with LIVS Associates for Professional Architectural/Engineering Services for the Design of Restroom Facilities and a Gravity Sewer System at Bella Vista Bay Park, in an Amount Not to Exceed $33,975.00, Attached Hereto as Exhibit "A"; Authorizing the Mayor to Execute Said Agreement; Authorizing the City Manager to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: City Clerk Hines read the title, and City Manager Cohen said in reviewing all ofthe Capital Projects that have been previously approved and reviewing them with staff, it occurred to them that this project had been approved without accommodating for bathrooms. We wanted to bring forth that proposal to see if the Commission was interested in incorporating bathrooms into this site. It is staff s recommendation because of the remote nature of this Park that we do in fact do so if the Commission agrees. Public Works Director Gio Batista said this allows LIVS Architects to do an investigation on whether or not the sewer can be connected, and if so, they will then redesign the Bella Vista Bay Park improvements, to allow the installation of a restroom which will be a pre-cast structure to be incorporated into the current design. City Manager Cohen said that we anticipate the total cost to be approximately $140,000 with the bathrooms installed and hooked up after this investigation and design work is done. Public Speakers: None Mayor Edelcup asked if this is in the Capital Projects budget right now for any particular year, and Assistant City Manager Shah said yes. Commissioner Scholl said $140,000 for engineering precast bathrooms just doesn't sit well with him, the cost is pretty exorbitant, after looking at the cost breakdown, are there complications, this is exploratory, we are not even sure if we can hook the bathrooms up. Mr. Batista said in the original proposal from LIVS we discussed that it was not clear in their first preliminary review that W ASA would even entertain a connection to one of their sewer lines. As a result, he asked them to 8 Summary Minutes: Regular City Commission Meeting October 20,201 I City of Sunny Isles Beach, Florida incorporate into their services the full permitting, going to W ASA making sure that the elements associated with the connection which are a little complicated in the sense that the elevations are not there for the tie-in, and to make sure that in their review for the design that they took the time with their Civil Engineer to go out to the field with a surveyor to ascertain whether or not we would be able to institute a restroom. They adjusted their proposal in line with having to run the permits, to ensure that they dialogue with W ASA and DERM, that they go to the City of North Miami Beach to ensure that those tie-ins and all the issues are resolved in advance of just getting a design that we would have to run the permits. Commissioner Scholl said he would rather spend $140,000 on amenities in the Park, considering that Gateway Park will be a block away with bathroom facilities. Commissioner Aelion said that at the Workshop it was debated if we need bathrooms there, as a comparative on how large and how much usage the park would have, it came to light that it is going to be used for a Kayak area which is going to involve a lot of traffic, and so it is his feeling to see if we can establish bathrooms in the Park. Vice Mayor Thaler agreed with Commissioner Aelion, he thinks with the kayaks and the boats down there that we should have bathrooms. He also agrees with Commissioner Scholl on the cost, and that we should look into reducing the cost after we find out if we can put bathrooms in there. Commissioner Gatto agreed that there is a need for restrooms at the Park because of the kayak area. Commissioner Scholl said we don't know how much activity it is going to generate. He hates to throw in more money on the assumption that it is going to be imminently successful. He may be okay with $50,000 for prefab bathrooms but then we have the ongoing maintenance cost and they are in a remote location. Mayor Edelcup said his comments mirror Commissioner Scholl's, and again, until we build the Park and until we rent out the kayak operation and then find out how active it is, he thinks we are putting the cart before the horse. Perhaps we need to have bathrooms there when it is proven that there is a need for them as opposed to anticipating the need since we are not talking about a small sum of money. Did we put this out to bid in a turnkey operation, we always seem to get burned by spending a lot of money for design, and then find that what we are buying doesn't fit the design, and then we go back to redesign to fit what we did buy. And so his suggestion would be to defer this item until such time as you can come in with a lower cost plan and defer actually doing this until we open the Park and know what kind of activity we have there. This is not something that we can't go in and retrofit and he doesn't see the need to have to put it in there today or this coming l2-month period when we know it is going to be a while before we even know whether or not we need the facilities there. City Manager Cohen said we can split this up, doing the investigation is something that we have to do at some point if we ever want to look at bathrooms there. There is a question as to whether or not this can be done with the existing gravity line or whether or not we will have to put a lift station in. If a lift station were required he is not sure our recommendation would be to move forward with it because the cost for that would be prohibitively expensive. We could segment this off and do the investigation and not do drawings, and come back to you with a report first. We can pull this and segment that out. Commissioner Aelion asked what the timeframe is of exploration and build, and Mr. Batista said the exploration should take no more than a few weeks. Once they get a survey crew out 9 Summary Minutes: Regular City Commission Meeting October 20, 20 II City of Sunny Isles Beach, Florida there, they can determine that and go back to W ASA on whether or not it is going to be acceptable to them. The build time is an unknown assuming that the current project starts unfolding and we have improvements in place, they have to make a lot of notes in their proposal and in the drawings, and so they wanted to take into consideration all of the other elements related to improvements that are going to be on site by the time they do the design. Mayor Edelcup said the closest bathrooms at that time would be Gateway Park. He asked how much it would cost for just the survey, and Mr. Batista said he had spoken to LIVS and decided it would be about $3,000. Vice Mayor Thaler said that is what we should do then in order to know if we can place a bathroom there or not. Commissioner Scholl said right now the intensity use of the Park does not warrant bathrooms, it is a passive Park, and not every park needs to have a bathroom. Mayor Edelcup said that this particular Resolution has to be withdrawn because we are making a substantial change. He recommended that staff come back and add to next month's agenda what they would propose as a minimal cost to do the investigation that the Commission wants, and that gives everyone 30 days and we will know if we will have a kayak company on board. Commissioner Aelion moved and Commissioner Scholl seconded a motion to withdraw this item. The motion was approved by a voice vote of 5-0 in favor. lOB. A Resolution ofthe City Commission of the City of Sunny Isles Beach, Florida, Approving an Agreement with Bermello Ajamil and Partners, Inc. for Professional Engineering Services to Provide Development of Permit and Construction Site Drawings for Water, Sewer, Electrical, and Telephone Service to the Proposed Temporary Trailer Located on the Public Works Compound, in an Amount Not to Exceed $15,500.00, Attached Hereto as Exhibit "A"; Authorizing the Mayor to Execute Said Agreement; Authorizing the City Manager to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: City Clerk Hines read the title, and Public Works Director Gio Batista reported that this is basically to put together a set of construction drawings that we are going to send to Fire and DERM for approval of the trailer. Public Speakers: None Commissioner Scholl said he doesn't understand why the trailer manufacturer is not giving us the drawings. Whenever he gets one of these trailers, they give him the drawings, he gets a sewer hookup, and it costs about $400. He sees that the original proposal was for $23,000 and so he gives him credit for scratching $8,000 but he still doesn't understand the design associated with it. You have a $15,500 permitting and design fee for a prefab trailer that the manufacturers have given you the drawings on. Mr. Batista said the trailer manufacturer does provide us with the drawings needed in order to show that the Department of Community Affairs has approved that particular trailer, however, in order to get it through the permitting process, through Fire and Miami-Dade County, we also need to produce a site plan that shows electrical risers, where to dump the sewage, how we are going to bring in telephones, and so we need to get a surveyor, we need to show where the trailer is going to be 10 Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida positioned, where the discharge tank is going to be, how we are going to get power, because the trailer manufacturer does not produce all ofthe information related to the riser that comes from the FPL drop directly to the trailer. The permitting agencies require that we produce enough information so that they can acknowledge that the service is adequate. Mayor Edelcup asked if we have negotiated that price down to the best price that we can get, and Mr. Batista said yes, this is the second vendor that we approached. The first vendor was significantly higher. After going through negotiations with the first vendor, we went to the second set of negotiations with this particular vendor and we brought this vendor down to $14,500 plus $1,000 reimbursables. The reimbursables include all the drawings, etc., and they are going to make sure we receive all the required permits. Mayor Edelcup asked if we can go to a third vendor, and Mr. Batista said yes, that is a discretion. Mr. Batista said under our current RFQ that was approved for CG&A from the rotation list, we are required to go from one vendor to the next, once we exhaust that vendor we cannot go back to that vendor, we have to go to the RFQ. Mayor Edelcup said he would rather staff go to a third vendor to see if we can get a better price. Commissioner Aelion said then that they are going to hold the price for a timeframe and then they are going to say it is expired but you have that window, and Mr. Batista said under the CG&A and under our contract requirements, once they produce a proposal to the City and we go to another vendor, we automatically defer that particular proposal. City Attorney Ottinot said yes, you go from No.1, to No.2, you cannot go back to No.2 or No.3, etc., it is like starting over, you have to follow the sequence under the State Law, you have to negotiate with the first one, and then the second one. Mayor Edelcup said then the instruction we would have now is to put it out and bid to three people and start all over again, and City Attorney Ottinot said if it is under $25,000 you can go on the list of selected engineers, vendors that we have on our list, and so we will not have to go out to bid if it is under $25,000. Mayor Edelcup said what you are hearing is the Commission feels that the price is somewhat high and we are asking for staff to go back and negotiate a better price. Commissioner Scholl moved and Commissioner Aelion seconded a motion to defer this item to the November 17, 2011 City Commission meeting. The motion was approved by a voice vote of 5-0 in favor. 10C. Resolution of the City Commission ofthe City of Sunny Isles Beach, Florida, Approving an Agreement with Mobile Modular to Provide the Public Works Department with a Mobile Modular Office-Trailer Rental to be located on the Public Works Compound, in an Amount Not to Exceed $13,330.00 for the First Year, Attached Hereto as Exhibit "A"; Authorizing the Mayor to Execute Said Agreement; Authorizing the City Manager to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: Mayor Edelcup asked to defer this as well, and City Manager Cohen said yes. Public Speakers: None Commissioner Aelion moved and Vice Mayor Thaler seconded a motion to defer this item to the November 17,2011 City Commission meeting. The motion was approved by a voice vote of 5-0 in favor. 11 Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida 10D. A Resolution ofthe City Commission of the City of Sunny Isles Beach, Florida, Authorizing the Purchase of Supplies and Equipment from Home Depot for the Public Works Department, in an Amount Not to Exceed $39,000.00 Annually, Piggybacking the Contract Between Maricopa County and Home Depot through RFP No. 11019; Authorizing the City Manager to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: [City Clerk's Note: A revised Cover Memorandum was distributed prior to the meeting.J City Clerk Hines read the title, and Public Works Director Gio Batista reported. Public Speakers: None Commissioner Scholl moved and Commissioner Gatto seconded a motion to approve the resolution. Resolution No. 2011-1787 was adopted by a voice vote of 5-0 in favor. 10E. A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Approving the Renewal of the Annual Service Agreement with Sungard Public Sector, Inc. to Provide Technical Support and Software Upgrades for the Police Department Computer System, in an Amount Not to Exceed $57,032.48, Attached Hereto as Exhibit "A"; Authorizing the City Manager to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: City Clerk Hines read the title, and Police Captain Michael Grandinetti reported. Public Speakers: None Commissioner Scholl moved and Vice Mayor Thaler seconded a motion to approve the resolution. Resolution No. 2011-1788 was adopted by a voice vote of 5-0 in favor. 10F. A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Ratifying an Agreement to Retain the Services of the Law Firm of Holland and Knight and Specifically Michael Prendergast, Esq. to Conduct Certain Investigations, in an Amount Not to Exceed $30,000.00; Authorizing the City Attorney to Do All Things Necessary to Effectuate the Terms of this Resolution; Providing for an Effective Date. Action: City Clerk Hines read the title, and City Attorney Ottinot reported that due to a legal conflict he had to retain this firm to conduct a certain internal investigation linked to employees. Public Speakers: None Vice Mayor Thaler moved and Commissioner Gatto seconded a motion to approve the resolution. Resolution No. 2011-1789 was adopted by a voice vote of 5-0 in favor. 12 - - ---- Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida lOG. A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Approving an Agreement with the Miami Herald Publishing Company, for Retail Advertising Services, with Option for a Second Year, in an Amount Not to Exceed $30,000.00, Attached Hereto as Exhibit "A"; Authorizing the Mayor to Execute Said Agreement; Authorizing the City Manager and the City Clerk to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: City Clerk Hines read the title and reported. Public Speakers: None Commissioner Scholl moved and Vice Mayor Thaler seconded a motion to approve the resolution. Resolution No. 2011-1790 was adopted by a voice vote of 5-0 in favor. 10H. A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Approving a Letter of Intent Between the City of Sunny Isles Beach and Dezer Development, LLC for the Purchase of 18080 Collins Avenue ("Alamo Property"), in the Amount of $7 Million; Authorizing the City Manager and City Attorney to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: [City Clerk's Note: A revised Letter of Intent from Ocean Corporate Center, LLC was distributed to the Commission prior to the meeting.J City Clerk Hines read the title, and City Attorney Ottinot reported that he received a counter competitive proposal from The Weintraub Group yesterday, and that Mr. Weintraub and the lawyer for that Group, Clifford Schulman, would like to speak after Dezer Development completes their presentation. Public Speakers: Warren Stamm, Esq.; Gil Dezer; Clifford Schulman, Esq. Warren Stamm, Esq. on behalf of Dezer Development briefly went over the terms and conditions of the LOI. They are proposing to pay to the City $7 Million in cash to close within 30 days of the date of issuance of Site Plan approval. They anticipate that the Site Plan will be submitted within 120 days of execution ofthis LOI. They are prepared to place $1 Million in escrow within two business days of the execution of the LO I, and the deposit will be applied to the purchase of the Sales Agreement at closing. They are also committed to the deposit of $1 Million becoming non-refundable upon the issuance of Site Plan approval. They will be prepared to deliver to the City within seven (7) business days of execution by the Commission, a Purchase and Sale Agreement which is to be submitted to the City for approval within 30 days from the date of execution of the LOI. Subsequently that Agreement will be executed by both parties within five (5) business days from date of approval. They anticipate closing within 30 calendar days of the issuance by the City of approval of the Site Plan. The balance of the purchase price ($6 Million) will be paid at closing. They also anticipate that upon Site Plan approval, they will within six (6) months, apply for a Building Permit. They are prepared to substantially complete the improvements within 24 months of the issuance of the Building Permit. Additionally, they are requesting, due to the timeframe involved, an extension of up to three (3) months to apply for the Building Permit provided the condition of the purchaser is not in default. If the purchaser fails to begin construction within 24 months of Site Plan approval, they are prepared and obligated to pay to the City $72,000 per year as a penalty for each year after the expiration of 13 Summary Minutes: Regular City Commission Meeting October 20, 20 I I City of Sunny Isles Beach, Florida the initial 24-month period to complete the improvements. If the delay happens within the 24 months and it is not the fault ofthe purchaser, then the City will be in a position to extend the 24-month period accordingly. They will also work with the City to secure a pedestrian walkway which would be located outside of City Hall and connect across the street to 18001 Collins A venue, and they are prepared to work in conjunction with the City and FDOT to secure that pedestrian walkway. If there are additional holdups as a result ofFDOT which impacts their ability to secure the Building Permit, they would work with the City for any applicable extensions that may be necessary. Gil Dezer ofDezer Development, presented renderings ofthe project noting that a bank and possibly medical offices would go within the Tower. They are proposing 140,000 square feet, and they worked in the parking within the Zoning Code and will not have to ask for any variances. The last time this was brought before the Commission was three (3) years ago, they signed with the City on August 4, 2008, and on September 15, 2008 the Lehman Brothers collapsed, and therefore the financing they expected for the project was unavailable to them. They worked with two architects on the renderings, Kobi Karp and a new architect that he just met. Although they are listing timeframes within their contract, they are well in advance of those timeframes and they are prepared to move forward as fast as possible. Clifford Schulman, Esq. representing The Weintraub Companies reported that the Weintraub Companies/Ocean Corporation Center agreed to a number of LOIs which on October 4, 2011 the Commission rejected, they reserve all their legal rights and remedies. They worked with the City in good faith to try to get to a deal. His clients have developed in the last 15 years over two Million square feet of both commercial and residential properties in Florida and throughout the United States. The Commission was concerned at the last meeting about the uncertainty of a time deal, and so they rej ected it but you also said to go back and rethink your proposal and so they did that and yesterday they delivered a revised LOI to the City which essentially mirror images Mr. Dezer's suggestion on a purchasing sale arrangement rather than a long-term payout. They now have a $7 Million purchase price, they have agreed to pay that within 30 days of Site Plan approval. They have agreed to give the City $1 Million of upfront deposit within two days of signing the agreement. Mr. Schulman noted how their LOI differs from Mr. Dezer's LOI: Mr. Dezer's offer is based on $1 Million given to the City within two days but it is totally refundable ifhe doesn't get Site Plan approval. We will give the City $1 Million, and in the event they don't get Site Plan approval, in fact, at the point of time you sign the Agreement of Purchase and Sale, $200,000 of that amount is non-refundable. There are two things that go into a deal: time and money. The money is the same although they will give the City $200,000 the minute they sign, let's talk about time. You want this project to get going, you want to kick-start it, the Dezer proposal indicates that they will initiate construction within 24 months from Site Plan approval, we say 12 months. In the event the Dezer's do not start construction within 24 months, they will pay you $72,000 a year. We will pay the City $1 Million a year if we don't start construction in 12 months, that is an incentive, we already have 25 agreements for tenants for our building, and so we know we are going to build it. In addition to these add- ons in the LOI, what is also significant is what we took out of the Dezer LOI, the omitted provisions. For example, we agreed to go for our Building Permit within six months, the Dezer proposal says they will do it in six months but they may ask for a three-month 14 Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida. extension. We didn't ask for a three-month extension. The Dezer proposal says in 24 months they will start construction that can be delayed indefinitely if it is through no fault of theirs, and so they don't have to go forward with that construction, and they don't have to pay the City $72,000 a year ifit is delayed for anything other than their fault. We didn't ask for that, we will be paying the City $1 Million a year, not withstanding whoever, whatever delays this project. Their building will be 140,000 square feet, they are different architectural designs, and one of the things which is kind of uniform that is different from our proposal and site plan is that we have a 75-foot setback where only 25-feet is required with a community congregation area where as each one ofthese plans shows a 27-foot setback, the barest minimum that they can do. Lastly, fairness, you had a lot oftalk of who you invited to the dance and who you took home. Legally we say it a different way, we say that you don't change the rules of the ballgame in the ninth inning, you don't say four strikes instead of three because we want to make sure it goes a different way. You don't invite someone into your community to become a business incorporate citizen and then pull the rug out from under them at the 11 th hour. We want to be in this City, it is important to us. We will build you a quality product and we will build it quicker and faster with the utmost respect to the Dezers, they manage many office buildings throughout the United States, but he is not sure that they have ever built one. We do this for a living, this is what our client has done before in A ventura, this is what it will do on the Florida Riviera. Warren Stamm responded that they are ready to negotiate, and that Mr. Schulman pointed out a number of inconsistencies between our plan and the plan that they are now coming up with and he agrees, there are differences but there are a couple that he forgot to mention, like his client is proposing to purchase $7 Million worth of real estate but yet is not committed to pay permit fees that was inadvertently left out. If you look at their LOr they want the City to waive any permit fees and costs involved in the development of the project. And so the timeframe they are talking about is critical because they want to commit to the timeframe but they want the City to drive the timeframe for them. The reality is that Dezer's are very opened book, we are telling you that every other proposal, every deed that a developer comes up here to do, inadvertently there are problems, there are delays, there are things that arise, we have experience, we know that happens and that is why we put these provisions in here, they are not automatic, they are subject to the City, they are subject to something that is called partnership, that means, we the developer works with you, and you work with us not with rigid timelines, which he can tell you with some degree of certainty having built six buildings in this City alone and owning a significant amount of property which is prepared for development he can tell you that the timeframes that Mr. Schulman and his client are proposing are not going to be met. He also wanted to point out that they are here in Sunny Isles Beach, they are committed to the City, they want to continue developing in the City and the bottom line is performance. One thing that slipped through Mr. Weintraub's LOI, is again we still have this underlying condominium concept here, and while it may be a very viable concept, he is not sure that is the concept that will work best for the City. He and his client have been upfront with the City from the beginning, when they came here originally in 2008 we were committed then, as Mr. Dezer pointed out, things happen. Weare proposing outside dates, these are commitments that we are prepared to make, it doesn't mean that it will take that long, it just means we want to be upfront with the City to recognize that there may be additional timeframes that are involved, not that we necessarily need them. The Dezer Organization stands behind its Letter oflntent, we are prepared to work with the City. 15 Summary Minutes: Regular City Commission Meeting October 20, 20 II City of Sunny Isles Beach, Florida City Attorney Ottinot said we have two parties who have a strong interest in buying this property and he has spoken to members of the Commission individually and he thinks what he recommended is fair. We didn't use a comparative process because we are not required by law but in order to be fair to both parties is to allow these parties to come in at a different time and present a more detailed presentation to the Commission. Also what he would require from the Commission is that both parties would be required to execute a Purchase Agreement with the business terms of the LOI that they have presented to Commission. Additionally, just to clarify Mr. Schulman's comment about waiver of rights, if the City is providing these parties with an opportunity to present their proposal, that both parties agree to execute a "Waiver of Release" that they will not bring any legal action against the City if the City does not select them as the purchaser. Mayor Edelcup said he tends to agree with the recommendations of the City Attorney, this Commission basically is standing out in front trying to arrive at what is the best alternative for the residents/taxpayers of this City and hopefully we are trying to do this in a very fair and even handed manner. Two weeks ago we had a similar situation, the players have reversed themselves and we have somebody coming in at a late hour with a counter proposal, and so what he would like to recommend to the Commission is that we meet again next week after there has been an opportunity for the City Manager, the City Attorney and staffto meet with each of the individuals and illicit from them their final and best offer to the City so that we can move forward. At the same time, he would like to make sure that all the terms are reduced to writing and that the Commission be furnished with a comparison sheet of the two and best offers that are being presented, not only to include the financial terms, the size of the building, an analysis needed by our Finance Director to calculate the present value of financial terms using an appropriate discount rate, and also any other information that the City Manager, City Attorney, or staff would want to present to the City for its consideration. He would then ask our Commission to act in a very professional manner and not in an emotional manner in determining what is the best solution, what is the best return to the City, both of these are fine offers, both of these firms are well proven, I think we can take both of those items off the table and establish that they are both reputable. It is now a matter of what is the best return to the City. He may propose a meeting for next Thursday to finalize this. City Manager Cohen said he would like to concur with the Mayor's recommendation. In quickly reviewing both of these letters, in his opinion they both share the same deficiencies, the triggers in both of these letters is that they are hinged on Site Plan approval and the way they are written right now, they are open-ended as opposed to the Gateway Agreement with the Milton's. He would like to see that tightened up because every other trigger that is in both of these documents are hinged on that approval, and that approval in and of itself is open-ended, and this extra time will allow him and the City Attorney to review the terms to ensure whatever agreement we come to is in the City's best interest. Vice Mayor Thaler said there was one thing that was mentioned by Mr. Stamm and the Weintraub contract in terms ofTDRs and costs, and he would like to know when it comes back to us what we are dealing with there and those cost factors. Mayor Edelcup said definitely, that should be part of the present value approach to this whole thing. Commissioner Gatto thinks that competition creates creativity, and with the LOI from 16 Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida Weintraub she can see he is serious about coming to the City, although she wanted to approve an agreement tonight, she agrees to wait until next week to decide. Commissioner Aelion suggested attaching this item to the Special Commission meeting scheduled on Wednesday, November 9, 2011 at 3:00 p.m. instead of scheduling another Special Meeting, for the property Purchase Agreement be presented then and signed by the principles with the attached LOI so we will know what we are comparing here and not something that is left open-ended. Commissioner Scholl said he disagrees with what the City Manager said that it was all contingent on Site Plan approval and that is not true, to him it is all about if the building is going to be built or not in any kind oftimely manner. He doesn't agree with what we did because we had a credible individual come to the City and go through months of negotiation and we spurned him at the last minute. Whether we get a better deal or not, his issue is how we treat folks who come to the City to try to do business with us. Mr. Schulman said regarding a signed Purchase and Sale Agreement next week, he is a realist like Mr. Stamm is, and he sat with the City and negotiated agreements like this before and he feels that is somewhat unrealistic. City Attorney Ottinot said that we have purchased numerous properties over the years and we have drafted numerous purchase agreements, and generally when the City enters into a real estate transaction, we use our form contract, we tweak it to cover additional terms, and he believes that we can have an executed purchase agreement prepared and we will present it to both parties to review. A general purchase agreement generally has a lot of boiler plate terms that most real estate lawyers are familiar with. There are some new nuances with respect to the Letter ofIntent that can be added but it can be done. Mr. Schulman said he has no problem with that but Commissioner Aelion's suggestion to hear it on November 9 would give them a little bit of a cushion built in to get it done so we can negotiate some of these boiler plate terms which sometimes become the subject for negotiation. Mr. Stamm said he agrees with Mr. Schulman but he also has a tremendous amount of confidence in the City Attorney and his team to be able to get something done, they are prepared to go whenever the City wants, but he just wants to make sure that he is clear that they are each submitting a proposal to the City, and Mayor Edelcup said it is one submission from each of you, it has to be your best shot. Mr. Stamm asked ifhe would get the opportunity to see what he presents, and he sees what I present. City Attorney Ottinot said it is public record, and Mayor Edelcup said you have to make your best shot first because otherwise you are in a bidding contest again. Commissioner Scholl said to clarify, he doesn't believe we are accomplishing much by forcing two contracts in a week for best and final, we have two credible developers and so he doesn't have a problem with best and final LOIs, and then you spend a week drafting a contract with them. City Attorney Ottinot said the Letter of Intent that we have approved over the years is really non-binding, if this Letter ofIntent, the business terms are final, they are not going to change, it is pretty simple to put these business terms in a purchase agreement and they will execute the purchase agreement. Now after the execution of a purchase agreement, we all know that purchase agreement means this is a deal, you cannot back out, subject to Commission approval. Mayor Edelcup said that we have seen Letters of Intent and they are not going to change much as LOI from what we have seen, let's have both sides submit purchase documents. Commissioner Scholl said then that we should give it longer than a week, and Commissioner 17 Summary Minutes: Regular City Commission Meeting October 20,2011 City of Sunny Isles Beach, Florida Aelion agreed and said it should be on November 9. Mayor Ede1cup said we can do it after the Ordinance regarding $10 Million Revenue Bonds. He said we can make it the Purchase documents and also the strong proviso that we heard from the City Attorney that we are released from any law suits. City Attorney Ottinot said it would be a Waiver of Release executed by both parties. Mr. Stamm asked if the Commission will be providing them with some ground rules like what needs to go in there, can we get the requirements so that we are all on the same page. Mayor Ede1cup said yes, and also the proviso that the Vice Mayor proposed was if we are expected to give anything back in the way ofTDRs, waiving of fees, or any concessions on the part of the City, that has to be defined, and the dollar amount assigned to it, so that we are sitting here on that day trying to make a decision with all the facts in front of us and not trying to find out at that particular meeting how to play all this. City Attorney Ottinot responded that the Commission has set the meeting for November 9, 2011, we will give you no later than next Wednesday, October 26,2011 at 5:00 p.m., your final revised Letter ofIntent, which he will use to prepare the draft Purchase Agreement, and that will be submitted to you by no later than Monday, October 31, 2011. Mayor Edelcup said we are not going to set the dollar amounts of any of the provisions, you have to give it your best shot. Mr. Stamm said he understood but the reality of it is, what he is trying to avoid, so that he and Mr. Schulman can properly prepare, is that he doesn't want the situation where he gives something to the City Attorney, Mr. Schulman makes a public records request, and he just knows where this is going. City Attorney Ottinot said the bottom line is, when we give a deadline, you cannot withdraw or modify your offer after submittal. Commissioner Scholl said lets just be clear about the ground rules, why don't you just tag it for Wednesday, October 26, 2011 at 5 :00 p.m., the folks hand you their documents and then the next day they can make a public records request ifthey want but they are not able to come back and modify that document, that is their best and final offer. You will then spend the following week, up until November 9, getting it into a draft contract. When we get it into a contract, if you are unhappy with the fact that we are not able to get a contract, that will weigh in on the ability of the other side to have a final deal with us. City Attorney Ottinot said that he needs the business terms in order to prepare the contract, their final best offer as Commissioner Scholl indicated. When they submit their business terms he can incorporate those business terms into a contract which will eventually be presented to the Commission for approval. There will be negotiations between us, both of them, and his goal is to use identical purchase documents. Mayor Ede1cup asked him to walk us through it, they submit to you their terms next Wednesday (October 26, 20 II), when will you turn around and deliver them their purchase documents. City Attorney Ottinot said to give him two days and he will turn around and provide them a draft. Mayor Ede1cup asked if they each get a courtesy of comments and any objections that they mayor may not have, and City Attorney Ottinot said yes. Commissioner Aelion said that he would make sure that the terms of the LOI are not amended, and City Attorney Ottinot said that they would agree that after final submittal, no modifications, this is it. Mayor Edelcup suggested that the Commission stay away from any negotiations or meetings with either of the two parties until the afternoon of November 9, 2012 in order to keep it as clean and as fair as possible. City Manager Cohen said if perhaps we should follow something akin to our bid process and have the two proposals delivered to the City Clerk and then the City Clerk would open them 18 Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida at the appropriate time. Mayor Edelcup agreed and said any way that we can make it as fair as possible and that is a fair approach. Commissioner Scholl said he thinks we are creating a process that is ripe for issues, first of all in the real world you use LOIs all the time, even in a competitive process, the idea we are getting this extra layer of protection, you go to contract because it is a property purchase now, the business terms are pretty simple, if the contract mirrors the business terms of the LOI then you are done, and you are not negotiating two contracts, what happens next Wednesday, we get an anonymous letter from them that says we up it by half a million dollars. Commissioner Aelion said he understands Commissioner Scholl's concerns, it is advisable to have a purchase agreement because if we only base ourselves on the LOIs you are going to open it to possible change and interpretation, but when it is signed by the principle as an agreement then there is no way out of it legally, and so that makes it binding. Mayor Edelcup said that is the reason we pushed it to November 9 instead of next week, and so let's go with that. City Attorney Ottinot said we will need a motion to withdraw the item, and to instruct staff pursuant to the previous comments with respect to the final submittal ofthe revised Letter of Intent, and to draft the Purchase Agreement for preparation for the Commission Meeting on November 9, 2011. The Letters oflntent must be submitted by 5:00 p.m. on Wednesday, October 26, 2011, and those Letters oflntent, as the City Manager suggested, if the parties want to be present in the City Clerk's office, she will open the LOIs in the presence of both parties. Vice Mayor Thaler moved and Commissioner Aelion seconded a motion to withdraw this item. The motion was approved by a voice vote of 5-0 in favor. 101. A Resolution ofthe City Commission of the City of Sunny Isles Beach, Florida, Approving the Payment of Outstanding Invoices to Calvin Giordano and Associates, Inc. for Professional Services, in an Amount of$60,416.24 in Fiscal Year 2010/2011, and Authorize for Payments Up to $13,557.76 in Fiscal Year 2011/2012; Authorizing the City Manager to Do All Things Necessary to Effectuate the Terms of this Resolution; Providing for an Effective Date. Action: City Clerk Hines read the title, and Public Works Director Gio Batista reported that during the year staff received and discussed said invoices and services. Staff is presenting a request to approve the invoices and an extension of services for $60,416.24 for previous invoices, and $13,557.76 for services that have not been rendered but are envisioned to be necessary. City Manager Cohen said based on our discussion at the Workshop, it was clear that there was high displeasure over this but we still felt compelled to at least bring it forward to the Commission for your attention and possible action whether it be now or at some time in the future. Neither he or Mr. Batista were involved for the authorization for the vast majority ofthese items, there is a small carve-out for some ongoing permitting work that was done and there are a number of suggestions that we can talk about on how to move forward. Public Speakers: None Mayor Edelcup said his thoughts on this right now is sheer amazement that we would be receiving bills for prior periods oftime but had never gotten Commission approval ahead of time. Our Charter and Rules of Procedure require pre-approval from the Commission on all 19 Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida of these items that are being presented to us as an after-the-fact item. Certainly Calvin Giordano and Associates (CGA) know the procedures extremely well as to what is required in a City contract. We had a meeting just a few weeks ago on the Newport Pier in which we were told at that time that we had nearly all or all prior expenses accounted for when we were making an amendment to that contract and now he finds that we are adding to that, certainly it could have been added at that time. Whatever the case, his recommendation at this point is to go back and talk to CGA, and as far as he is concerned, these are not approved, they were not pre-approved, take your best shot at negotiating a much lower number but at this stage he is prepared to say no to what is being presented tonight. Commissioner Aelion said that Commissioner Scholl had said he would sit in with staff and CGA because we were not given the final number for the Pier Project, and Commissioner Scholl sat with staff and fine tuned the cost. He didn't see a number that would exclude or include what is being presented here tonight. Commissioner Scholl said when he sat with staff and CGA, the one thing he asked for was an entire scope of what our outstanding liability would be to complete the Pier. We scoped that number and approved it at the last Commission meeting without any contingency under the thought that we would come back with any contingency items. Then he was told a few days ago that these bills came out ofthe woodwork, he has a meeting with CGA next week, and he asked that the item be pulled so we can discuss it with CGA directly and see where we are at. He has an ongoing set of meetings with CGA for the Pier Project but it blindsided him as well. Vice Mayor Thaler said we went through this at the Workshop, and he went through this with Assistant City Manager Minal Shah today. Every one of these bills are in the house, and in many cases these bills were in the house before the meeting last month. He really cannot understand why it wasn't presented to us at that same meeting. There are two principals here: 1) all of these invoices are supposedly over what the Commission had approved, why were they done in the first place without the Commission's approval; and 2) ifthey were in the house prior, why weren't they given to us last month. Commissioner Scholl said when he sat down with staff and CGA he gave instructions that he wanted to understand and scope the project on what is our outside number. He wants to understand why we have after-the-fact invoices that are coming up based on those instructions. The Mayor's issue is a separate issue and a good one. The Mayor is saying they are here because we didn't follow procedure and that is why we didn't know about them, that is separate and apart from the nuances associated with the Pier, and we have a seasoned vendor that should know better. Commissioner Scholl said what he is saying is that he gave instructions and he is getting blindsided too but in fairness he has not been able to sit down with everybody yet and he has a meeting scheduled anyway and that is why he is asking that the item be pulled so that he can scope it. He came to everybody last month and said here are the numbers, he sat with everybody and we scoped it and he gave very specific instructions and said the Commission needs to know our outside exposure and it was a million dollars higher than we thought it was going to be and we all said okay, we have all these mitigating factors and the cost went up since we did the bid in the first place and he put himself on the line for that too, and so he wants time to get to the bottom of it, but that is separate and apart from the Mayor's issue. Commissioner Aelion said that Commissioner Scholl was not present at the Workshop where 20 Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida Mr. Batista worded it very clearly that they could not control the timing ofthe receipt of such invoices due to technical and other agent issues. Public Works Director Batista said on some of the dialogue we had with CGA in one of the discussions we had in April or May, as a reaction to those discussions they introduced a $32,000 invoice. That invoice was a surprise and so in reviewing and going through all the documentation, some of these things just lead to having to go back with the Consultant, find out why it is that they needed that particular service, justify that service, and over time we created this list that you have before you. City Manager Cohen said he has two things: 1) what he is hearing is that we need to go back and as Commissioner Scholl pointed out, we are setting up monthly reporting meetings and at the first meeting we will devote a good part of it exploring these issues and getting down to the bottom ofthis; and 2) for clarification purposes as we discussed, when the Resolution was passed for $430,000, there were still some outstanding items not included in that, the Builder's Risk Insurance was one, and there were a number of permit related costs that we could not yet project for you, and so that will still be coming to the Commission. Mayor Edelcup said the prospective ones are not the problem, it is the retroactive ones that are the problem, and the way this lays out to him is as he said that the staff and the vendors have attempted to take away the right of the Commission to approve or not approve a contract for a specific dollar amount. When you come in as a after-the-fact our hands are somewhat tied because the work has already been done, and we didn't have the opportunity to flush out whether or not these were needed costs or being billed at the best price. What worries him even further is are there others yet to come. He then asked Assistant City Manager MinaI Shah to review every contract that is outstanding today and every invoice that we have received in hopes of preventing this kind of a situation from reoccurring. Commissioner Scholl moved and Commissioner Gatto seconded a motion to withdraw this item and we will hear it when all the homework has been done. The motion was approved by a voice vote of 5-0 in favor. 10J. A Resolution ofthe City Commission ofthe City of Sunny Isles Beach, Florida, Authorizing a Charitable Contribution to the Sunny Isles Beach K-8 Trust Fund for the College Scholarship Program, in the Amount of$5,000.00; Authorizing the City Manager to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: City Clerk Hines read the title, and Vice Mayor Thaler reported that this money will be transmitted to FlU. The government will match the $5,000 via 501c Corporation. There are over 300 children at FlU that live in Sunny Isles Beach and 38 who are first generation graduates from FlU that will have the opportunity to get a scholarship of up to $1,000 each. The estimate from Fru is that 20 out of the 38 will wind up getting some kind of scholarship out of our $5,000 where the government will match it with another $5,000. Public Speakers: None Mayor Edelcup clarified that the $5,000 is being given to the Sunny Isles Beach K-8 Trust Fund, and then the Trust Fund will make the contribution. Commissioner Scholl moved and Vice Mayor Thaler seconded a motion to approve the resolution. Resolution No. 2011-1791 was adopted by a voice vote of 5-0 in favor. 21 Summary Minutes: Regular City Commission Meeting October 20,20 II City of Sunny Isles Beach, Florida 10K. A Resolution ofthe City Commission of the City of Sunny Isles Beach, Florida, Approving a Consultant Agreement with Bell David Planning Group, for the Provision of Planning and Zoning Review Services, Attached Hereto as Exhibit "A"; Authorizing the Mayor to Execute Said Agreement; Authorizing the City Manager to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: City Clerk Hines read the title, and City Manager Cohen reported that we have had in the past a contract with several contractors including Bell David to provide the City with Planning and Zoning services. In this case with the recent departure of a key staff in the Planning and Zoning area, and the potential development activity that we see coming into the door right now we feel it is prudent to contract with them both to help us take the lead on some projects and to provide our internal staff with support on other projects to ensure we are able to handle these projects both correctly and expeditiously. Public Speakers: None Commissioner Aelion said he had asked the City Manager at the Workshop ifthis was open- ended which it is, and ifhe has any plans in the future to replace this with an actual employee of the City. City Manager Cohen said that Commissioner Aelion had asked him his plans regarding staffing and he does not have any specific plans right now. He is heavily involving himself in this area of the organization to learn more about it, get a better feel for what our needs are, and then we will be formulating a plan after that. Vice Mayor Thaler asked if we normally have an open-ended contract like this. Mayor Edelcup said you have to in a case like this because it is for each job. The other thing that should be noted is whatever the billing is from them, the developers are paying for this under the Site Plan Approval process and so it is open ended and there is no cost to the City. City Manager Cohen said in most cases that is correct, however there will be some work that will not be collectible because it is more internal work. We are going to use the unspent salary of the recently departed person as an offset to cover those outstanding invoices. Vice Mayor Thaler asked ifhe will come back to the Commission after $10,000, and Mayor Edelcup said no but in following up with the Vice Mayor's comment, could we have that broken down into two separate categories. He would also like to see a lid on the in-house portion where you are not going to be rebilling but is open-ended for any work that is being paid for by a developer through the site plan process. Can we set up $25,000 for the in-house and you will have to come back to the Commission after $25,000 is spent. The outside review is open-ended because it is billable. Commissioner Aelion said between the two principals that were presented here, the clause of the waiver of fees is extremely important. Vice Mayor Thaler moved and Commissioner Aelion seconded a motion to approve the resolution, as amended. Resolution No. 2011-1792 was adopted by a voice vote of 5-0 in favor. 22 Summary Minutes: Regular City Commission Meeting October 20, 2011 City of Sunny Isles Beach, Florida 10L. Add-On: A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Approving the Request Submitted by LPLA Partners, LP for a Temporary Sales Office Structure, "Mansions at Acqualina Phase I & II Sales Center" Subject to Certain Conditions; Authorizing the City Manager to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: [City Clerk's Note: This item was distributed prior to the meeting. See additional action under Item 4A adding this item to the agenda.) City Clerk Hines read the title, and City Manager Cohen reported. Public Speakers: Cliff Schulman, Esq. Cliff Schulman, Esq. representing LPLA Partners, said they are ready to move forward with a sales trailer at the Mansions at Acqualina, and the only unusual thing about the sales trailer is that there are two site plans. One is called Phase I which is closer to AlA because it is landward of the Coastal Construction Control Line, anything that goes over that line has to be approved in Tallahassee and takes too much time. They want to have this trailer delivered to their site on or about November IS, 2011 and open for business in December, and so they have chosen to have the Commission approve two site plans. One is on the west side of the Coastal Construction Control Line, and one is on the eastside. The sales trailer is about 8,000 square feet, architecturally it will be designed very similar to Acqualina and he showed a rendering of the Center. What they will be selling will be the Mansions at Acqualina with Acqualina being on the north, Pinnacle on the south, and the new tower in the middle. Vice Mayor Thaler asked how far back the trailer would be from Collins Avenue, and Mr. Schulman said about 100+ feet back, and Mayor Edelcup said it looks like it is well landscaped up front and so from the street view it will be very nice. Commissioner Scholl moved and Commissioner Aelion seconded a motion to approve the resolution. Resolution No. 2011-1793 was adopted by a voice vote of 5-0 in favor. 10M. Add-On: A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Authorizing the City Manager to Enter into a Memorandum of Understanding between the City of Sunny Isles Beach and the Town of Surfside to Expand the Regional Local Shuttle Bus Program in the Miami-Dade Northeast Area, Attached Hereto as Exhibit "A"; Authorizing the City Manager to Do All Things Necessary to Effectuate the Terms of the Agreement; Providing for an Effective Date. Action: [City Clerk's Note: This item was distributed prior to the meeting. See additional action under ltem 4A adding this item to the agenda.) City Clerk Hines read the title, and Cultural and Human Services Director Susan Simpson reported this is to expand our shuttle bus service to connect with Surfside so our residents can get to Surfside, South Beach and to Aventura Mall. It will be a limited service Monday, Wednesday, and Friday to start with only two stops per day, and as it grows we will come back to the Commission. There is no additional cost, this will be on our way to Mt. Sinai and back. City Manager Cohen said we are simply coordinating the timing of the routes so that our routes come together certain times making for an easy transfer for our residents. 23 Summary Minutes: Regular City Commission Meeting October 20,2011 City of Sunny Isles Beach, Florida Public Speakers: None Mayor Edelcup said another benefit is that our people can get to Surfside, get on their system and then go down to South Beach, and so it is a win-win for both sides. Vice Mayor Thaler said we will add it to the book that we send out, and Ms. Simpson said we are in the process of redesigning the schedule and that would be included in the book. Commissioner Aelion moved and Vice Mayor Thaler seconded a motion to approve the resolution. Resolution No. 2011-1794 was adopted by a voice vote of 5-0 in favor. 11. MOTIONS None 12. DISCUSSION ITEMS None 13. CITIZENS' FORUM: REQUESTS, PETITIONS & OTHER COMMUNICATIONS 13A. Arlene Koenig said this matter is urgent and affects everybody, this is a issue of secondhand smoke in residential environment. She lives in Winston Towers and she got involved in this personally because she had an issue in her building with secondhand smoke filtering into the building. This is a deeper issue in that nothing has been done to address this health hazard. She called Tallahassee and found out that Florida Statute 386 covers professional and business buildings but there is nothing on the books that covers residential buildings. Smokers are not protected under the housing law and therefore we have an opening here particularly under the nuisance portion of Statute 3 86. We have an opportunity in this community to be proactive and to affect the bottom line because 493,000 people die every year from secondhand smoke. She understands that the City Attorney probably has issues about the viability of issuing summons or warnings to people who smoke. She has a lot of information from different areas in the United States about this issue and legal issues and she will give it to someone here. She said ifthere is not a City committee to address this, she is willing to give her time to start the ball rolling. Outreach starts here, education starts here, it means you have to go to every one of these buildings and deal with this issue. Education is not worthy unless you teach people how to apply it, and that starts here, and this Commission has an obligation to protect the residents in this community. Mayor Edelcup asked the City Manager and the City Attorney to review the situation and to give us a report at the next meeting as to what we can do or not do. Ms. Koenig gave the packet of information to the City Attorney and she wanted to leave handouts for residents, however, Mayor Ede1cup asked her to wait until such time as we get a report from the City Manager and City Attorney. Commissioner Aelion asked her if she found any other states that has laws for this in high-rises, and she said yes, in New York City and other states which is in the packet she gave the City Attorney. Also, she is working with the Miami-Dade County Health Department and they have a special task force, the next meeting is November 28,20 II which she is becoming a member of. She also has contact information at the Health 24 Summary Minutes: Regular City Commission Meeting October 20,2011 City of Sunny Isles Beach, Florida Department and at the Florida Tobacco Prevention and Control Program in Tallahassee and will give it to the City Attorney. Commissioner Gatto said she would work with Ms. Koenig on this issue 14. ADJOURNMENT Mayor Edelcup adjourned the meeting at 9:03 p.m. Respectfully submitted by: ~~~~L . Jane A. Hines, CMC, City Clerk Approved by the City Commission on Nov. 17,2011 25 Preview Page 1 of I City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947-0606 City Hall (305) 949-3113 Fax MEMORANDl.[M TO: The Honorable Mayor and City Commission FROM: Jane A. Hines, CMC, City Clerk DATE: 11/17/2011 RE: Summary Minutes for the October 20, 2011 City Commission Meeting RECOMMENDATION: Attached for your consideration are the Summary Minutes for the October 20, 2011 Regular City Commission Meeting. 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