R7A - Adopt First Amendment to Fy2026 Capital Budget

Resolutions - R7 A

R7 A A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE CAPITAL BUDGET FOR FISCAL YEAR 2026 AS SET FORTH IN ATTACHMENTS A, “PROJECTS”; B, “SOURCE OF FUNDS”; AND C “PROGRAMS." Applicable Area:

COMMISSION MEMORANDUM

DATE:

RECOMMENDATION

The Administration recommends that the Mayor and City Commission adopt the attached Resolution.

BACKGROUND/HISTORY

Planning for capital improvements is an ongoing process; as needs change within the City of Miami Beach (the “City”), capital programs and priorities must be adjusted accordingly. The Capital Improvement Plan (“CIP”) serves as the primary policy and planning tool for systematically identifying, prioritizing, and assigning funds to critical City capital improvement projects.

The City's CIP and Capital Budget development process begins in the winter when all departments are asked to prepare updates and requests on their department’s ongoing and new proposed capital projects. Individual departments prepare submittals identifying potential funding sources and requesting commitment of funds for their respective projects.

The CIP is updated annually and submitted to the Mayor and City Commission for adoption. The Fiscal Years (“FY”) 2026 – 2030 CIP and FY 2026 Capital Budget was adopted on September 30, 2025 by Resolution No. 2025-33948.

ANALYSIS

FIRST AMENDMENT TO THE FY 2026 CAPITAL BUDGET

The proposed First Amendment to the FY 2026 Capital Budget reflects an overall increase of $3,963,968.00 and the re-alignment of $15,959,150.40 for the following capital projects:

1. Water and Wastewater Mains and Rehabilitation - Pump Station 14 Sewer Discharge Force Main Replacement (66632): The City operates two sanitary sewer pump stations on the Sunset Islands, identified as Sewer Pump Station 13 and Sewer Pump Station 14. Both stations are critical components of the sewer transmission system serving all four islands. Sewer Pump Station 14, located on Sunset Island No. 2, receives sewer flows from Sewer Pump Station 13 and conveys flows from the Sunset Islands to the mainland and onward to Sewer Pump Station 28.

The need for force main replacements on the Sunset Islands was identified following the failure of the subaqueous portion between Islands 2 and 3, which resulted in sanitary sewer overflows (SSO). The Sunset Islands 2 & 3 Sewer Force Main Replacement Project (“Project 1”) is currently under construction, and the Pump

Station 14 Force Main Replacement Project (“Project 2”) will provide improvements from Pump Station 14 to the mainland. Based on the estimated construction costs, the Pump Station 14 Force Main Replacement Project (“Project 2”) will require approximately $4,637,394 to address the immediate financial needs of the project.

Funding for this proposed amendment would come from the Water and Sewer Capital Projects funded from Operations Fund (Fund 418) which was previously appropriated to the following projects that remain necessary but are currently on hold due to a shift in utility project priorities within the Public Works Department.

• •

Water Booster Station-Terminal Isle (#64432) - $1,277,567.26 Water Booster Station-Belle Isle (#64532) - $3,359,826.74

Prior Years’ Appropriations

$0.00

December 17, 2025 Budget Amendment

4,637,394.00

Proposed Total Appropriations

$4,637,394.00

2. Water and Wastewater Mains and Rehabilitation - Hawthorne Force Main Replacement (#67032): The City of Miami Beach experienced two major failures of the Pump Station (PS) 24 – 16-inch Ductile Iron Force Main in May 2023 and October 2025. This critical sewer line serves Biscayne Beach and Biscayne Point, transporting wastewater across the Tatum Waterway and through environmentally sensitive areas to Pump Station 23 and ultimately to the Miami-Dade County Wastewater Treatment Plant.

While temporary repairs were completed following both incidents, the second break exposed extensive pipe deterioration. Subsequent inspections confirmed that the force main has exceeded its service life and is at high risk of continued failure, posing immediate threats to public health, environmental integrity, and the surrounding properties.

Although the force main is included in the City’s Capital Improvement Master Plan for replacement between 2026 and 2032, the severity of its condition now requires accelerated emergency replacement. Additional funding is, therefore, needed to initiate this unplanned but urgent infrastructure project to prevent further system disruptions.

Funding for this proposed amendment would come from fund balance that is available for appropriation in the Water and Sewer Operating Fund (Fund 425) that will be transferred to the Water and Sewer Capital Projects funded from Operations Fund (Fund 418).

Prior Years’ Appropriations

$0.00

December 17, 2025 Budget Amendment

3,528,968.00

Proposed Total Appropriations

$3,528,968.00

3. Water and Wastewater Mains and Rehabilitation (#28520): The City of Miami Beach is undertaking a critical infrastructure project to rehabilitate the existing 10-inch subaqueous sanitary sewer force main located beneath the MacArthur Causeway and Terminal Island. This pipeline has been out of service for several years due to a failure, prompting the installation of a temporary above-ground high-density polyethylene (HDPE) bypass system to maintain sewer service between Pump Station 30 (Terminal Island) and Pump Station 2 (Star Island). Restoration of the original force main is essential to eliminate the temporary bypass and ensure long-term reliability.

This initiative, designated as a Critical Project in the 2019 Sewer Master Plan and requested by Miami-Dade DERM, is part of a broader effort to reinforce the City's wastewater transmission system. Concurrently, the City is replacing two aging 30-inch force mains along Pine Tree Drive, which are vital for conveying wastewater from northern Miami Beach and neighboring municipalities to the Miami-Dade Central District Wastewater Treatment Plant.

During construction, the contractor encountered several unforeseen site conditions, including undocumented underground utilities, unexpectedly deep pipe elevations, and malfunctioning isolation valves. These challenges necessitate a construction change order to implement a sanitary sewer bypass system and procure additional materials such as pipes, fittings, and appurtenances. As a result, additional funding is required to address these conditions and ensure the successful completion of this high-priority infrastructure project.

Funding for this proposed amendment would come from the 2025 Water and Sewer Bond Funds (Fund 417) which were previously appropriated to the following projects that remain necessary but are currently on hold due to a shift in utility project priorities within the Public Works Department.

• •

Water Main Replacement on Collins Avenue from 4 th Street to 15 th Street (#64232) - $1,622,333.00 Fire Flow Project 9 – Hospital and Water Main Replacement along the 41 st Street Corridor (#64032) - $759,947.00

• •

Prior Years’ Appropriations

$78,790,395.00

December 17, 2025 Budget Amendment

2,382,280.00

Proposed Total Appropriations

$81,172,675.00

4. Water and Wastewater Mains and Rehabilitation - Normandy Isle Pump Station 22 Discharge Force Main Replacement (#66832): The City of Miami Beach is advancing a critical infrastructure project to replace the discharge force main serving Sanitary Sewer Pump Station 22 in Normandy Shores. This 12-inch pipeline, originally constructed decades ago, has reached the end of its service life and now poses a significant risk to the reliability of the City’s wastewater transmission system.

Pump Station 22’s force main is the sole conduit for conveying all sewer flows from Normandy Shores. In recent years, the pipeline has suffered multiple breaks, including a major failure in 2024 on the Normandy Shores Golf Course. These incidents have underscored the vulnerability of the system and the potential for costly service disruptions, environmental impacts, and public health concerns if the line is not replaced.

The 2019 Sanitary Sewer Master Plan identified this force main as a priority replacement within the 2020–2025 planning horizon. While permitting is underway, additional funding is required to ensure timely completion of the project. Securing these resources will allow the City to mitigate further risk, maintain regulatory compliance, and safeguard essential wastewater services for the Normandy Shores community.

Funding for this proposed amendment would come from both the 2025 Water and Sewer Bond Funds (Fund 417) and the Water and Sewer Capital Projects funded from Operations Fund (Fund 418) previously appropriated to the following projects that

remain necessary but are currently on hold due to a shift in utility project priorities within the Public Works Department.

• •

Water Main Replacement on Collins Avenue from 4 th Street to 15 th Street (#64232) - $830,650.60 Water Booster Station – Terminal Isle (#64432) - $1,077,361.74 Water Booster Station – Belle Isle (#64532) - $18,879.66

• •

Prior Years’ Appropriations

$0.00

December 17, 2025 Budget Amendment

1,926,892.00

Proposed Total Appropriations

$1,926,892.00

5. Wastewater Stations Rehabilitation - Sewer Pump Station No. 2 Rehabilitation (#64732): The City of Miami Beach owns and operates Sewer Pump Station No. 02 (PS 02), located on Star Island. This facility is a vital component of the City’s wastewater collection and transmission system. In addition to serving Star Island directly, PS 02 repumps flows received from Palm Island and Hibiscus Island, and conveys all wastewater across Biscayne Bay to the Miami Beach main island. From there, flows are directed to regional Pump Station No. 01 for transmission to the Miami- Dade County Central District Wastewater Treatment Plant at Virginia Key.

Due to its deteriorating condition, PS 02 requires comprehensive rehabilitation to ensure continued reliable operation. The project design and permitting phases have been completed, and the work is now ready to advance into construction. Timely rehabilitation is essential given the station’s role in handling flows from multiple islands and transmitting them across Biscayne Bay, where system redundancy is limited. Any failure at this facility would pose significant risks to service continuity, environmental protection, and public health.

Funding for this proposed amendment would come from the 2025 Water and Sewer Bond Funds (Fund 417) previously appropriated to the following project that remains necessary but is currently on hold due to a shift in utility project priorities within the Public Works Department.

• •

Fire Flow Project 9 – Hospital and Water Main Replacement along the 41 st Street Corridor (#64032) - $1,850,113.00

Prior Years’ Appropriations

$0.00

December 17, 2025 Budget Amendment

1,850,113.00

Proposed Total Appropriations

$1,850,113.00

6. Water Pump Stations Improvements - Water Booster Station – 75 th Street (#64632): The City of Miami Beach owns and operates the Water Booster Pump Station at 75 th Street, located adjacent to Park View. This facility is a critical element of the City’s potable water distribution system, ensuring reliable service and adequate fire protection for residents and businesses in the North Beach area.

The booster station manages flows to and from the onsite storage tanks, equalizes pressures, and maintains stable water distribution across the system. Most importantly, it provides the capacity to sustain required fire flow pressures during emergency events, thereby safeguarding public safety and property throughout North Beach.

Given its essential role in equalizing system flows and maintaining fire flow capacity, timely rehabilitation of this facility is considered a critical priority. Continued operation without improvements risks service reliability and the City’s ability to respond effectively to emergency conditions. The project requires additional funding to advance rehabilitation efforts and ensure the long-term resilience of the potable water distribution system.

Funding for this proposed amendment would come from the 2025 and 2017 Water and Sewer Bond Funds (Fund 417 and 419) previously appropriated to the following projects that remain necessary but are currently on hold due to a shift in utility project priorities within the Public Works Department.

• •

Water Main Replacement on Collins Avenue from 4 th Street to 15 th Street (#64232) - $800,000.00 Water Booster Station – 25 th Street (#63732) - $1,026,000.00

• •

Prior Years’ Appropriations

$3,030,984.00

December 17, 2025 Budget Amendment

1,826,000.00

Proposed Total Appropriations

$4,856,984.00

7. Water and Wastewater Mains and Rehabilitation - Force Main Replacement at Dade Boulevard (#63832): The City of Miami Beach owns and operates its sanitary sewer collection and transmission system, which includes a subaqueous force main that has been in service for more than 50 years. This pipeline has exceeded its expected service life and, as identified in the 2019 Sewer Master Plan, represents a critical asset with a high probability of failure. A failure of this line could cause environmental issues, particularly for local waterways.

The goals of the project are to enhance system reliability, increase capacity and resiliency, and prevent environmental harm in the event of a failure. The City has completed the design phase and is now proceeding with the issuance of an Invitation to Bid (ITB) for construction.

Given the age and condition of this subaqueous force main, timely replacement is essential to safeguard public health, protect the environment, and ensure the continued reliability of the City’s wastewater transmission system. Additional funding is required to advance the project into construction and deliver the improvements necessary to secure long-term system resiliency.

Funding for this proposed amendment would come from the 2025 Water and Sewer Bond Funds (Fund 417) previously appropriated to the following project that remains necessary but is currently on hold due to a shift in utility project priorities within the Public Works Department.

• •

Fire Flow Project 9 – Hospital and Water Main Replacement along the 41 st Street Corridor (#64032) - $1,606,720.00

Prior Years’ Appropriations

$4,967,295.00

December 17, 2025 Budget Amendment

1,606,720.00

Proposed Total Appropriations

$6,574,015.00

8. Water and Wastewater Mains and Rehabilitation - Aerial Crossing Water Main Replacement along 41 st Street between Meridian Avenue and Chase Avenue (#67432): The City of Miami Beach owns, maintains, and operates its water

transmission and distribution system, which receives potable water from the mainland through four transmission mains connected to the Miami-Dade Water and Sewer Department (WASD). This project addresses one of those mains, serving customers in the Mid-Beach neighborhood.

As identified in the 2019 Water Master Plan (Project W-38), this asset is critical to the City’s water infrastructure. The project involves the complete replacement of approximately 155 linear feet of 8-inch Cast Iron Pipe (CIP) water main currently suspended beneath Bridge No. 870054 along West 41 st Street, between Meridian Avenue and Chase Avenue. The existing pipe has exceeded its useful service life and is severely deteriorated. In addition, the project includes rehabilitation of the existing 30-inch CIP transmission water main located on the north end of the bridge.

The purpose of this project is to improve service reliability, expand system capacity, and enhance the resiliency of the City’s water transmission and distribution system for future generations. Timely funding is required to advance construction and ensure that the Mid-Beach community continues to receive reliable potable water service and adequate fire protection capacity.

Funding for this proposed amendment would come from the 2025 Water and Sewer Bond Funds (Fund 417) previously appropriated to the following project that remains necessary but is currently on hold due to a shift in utility project priorities within the Public Works Department.

• •

Water Main Replacement on Collins Avenue from 4 th Street to 15 th Street (#64232) - $917,895.40

Prior Years’ Appropriations

$0.00

December 17, 2025 Budget Amendment

917,895.40

Proposed Total Appropriations

$917,895.40

9. Wastewater Stations Rehabilitation - Sewer Pump Station 1 Rehabilitation (#63632): The City of Miami Beach owns and operates Sewer Pump Station No. 01 (PS 01), which is a critical facility that provides sewer service to all of South Beach and also receives flows from Star Island, Palm Island, and Hibiscus Island. As one of the most strategically located and heavily relied upon pump stations in the system, PS 01 plays a vital role in conveying wastewater flows southward for treatment at the Miami-Dade County Central District Wastewater Treatment Plant in Virginia Key.

PS 01, which shares its site with Fire Station No. 1, has structural deficiencies that pose a significant risk to the reliability of the facility and the broader sewer conveyance system. Given the pump station’s importance in serving high-profile residential and commercial areas, postponement of these improvements is not an option. Addressing the structural rehabilitation of PS 01 is, therefore, considered an immediate and critical priority to ensure uninterrupted sewer service, protect public health, and maintain compliance with regulatory requirements.

In addition, regulators have directed that an asbestos survey be conducted at this facility prior to completing permitting efforts. This amendment incorporates the asbestos survey scope along with the structural improvements, ensuring compliance with regulatory directives and the safe completion of the project.

Funding for this proposed amendment would come from both the 2025 Water and Sewer Bond Funds (Fund 417) and the Water and Sewer Capital Projects funded from Operations Fund (Fund 418) previously appropriated to the following projects that

remain necessary but are currently on hold due to a shift in utility project priorities within the Public Works Department.

• •

Fire Flow Project 9 – Hospital and Water Main Replacement along the 41 st Street Corridor (#64032) - $782,678.00 Water Booster Station-Belle Isle (#64532) - $10,298.00

• •

Prior Years’ Appropriations

$3,221,833.00

December 17, 2025 Budget Amendment

792,976.00

Proposed Total Appropriations

$4,014,809.00

10. Wastewater Stations Rehabilitation (#20619): The City of Miami Beach is advancing the rehabilitation of Pump Station No. 29, one of the largest and most critical elements of the City’s sewer infrastructure. This facility receives sewer flows from smaller stations in North Beach, the Town of Surfside, Bal Harbour Village, and Bay Harbor Islands, making its reliable operation essential to the broader wastewater transmission system.

The rehabilitation project includes replacement of mechanical components such as pumps, piping, valves, and meters, as well as floodproofing and storm proofing of aboveground components. These improvements will extend the service life of the station and enhance its resilience against extreme weather events.

A change order has been identified to incorporate the design of additional mechanical pipes within the pump station yard. This enhancement will ensure compatibility with future force main projects connecting to the station. By including this scope in the current project, the City anticipates reduced disruptions to the adjacent FDOT roadway during future construction, ultimately lowering overall costs and minimizing impacts to the public.

Funding for this proposed amendment would come from the 2025 Water and Sewer Bond Funds (Fund 417) previously appropriated to the following project that remains necessary but is currently on hold due to a shift in utility project priorities within the Public Works Department.

• •

Water Main Replacement on Collins Avenue from 4 th Street to 15 th Street (#64232) - $18,880

Prior Years’ Appropriations

$43,698,402.00

December 17, 2025 Budget Amendment

18,880.00

Proposed Total Appropriations

$43,717,282.00

11. North Shore Park Youth Center Restrooms (#28600): This project contemplates a new building adjacent to the North Shore Park Tennis Center, which includes new restroom facilities for general park users within the proximity of the fields, and a shell space intended to be used as a future concession space.

In December 2024, the Parks and Recreation Department received a request from Van Daalen Tennis, LLC. (Operator), the operator of the Miami Beach Tennis Center, to add a terrace area on the east side of the future concession space. In January 2025, the Office of Capital Improvement Projects (CIP) received an updated request from the Operator to expand the requested terrace to accommodate an enlarged outdoor seating area for the future concession space.

On April 8, 2025, the North Beach Community Redevelopment Agency (CRA) Advisory Committee recommended that the CRA allocate up to $350,000 toward the enhancement of the Project’s current scope. The CRA funds would support the completion of facility enhancements, including, but not limited to, structural improvements, expansion of the terrace area and additional lighting, relocation of the ADA ramp, and other related work to accommodate the requested outdoor seating area.

On July 8, 2025, the City Attorney’s Office (CAO) determined that the CRA funds could not be used for this work, pursuant to Section 163.370(3)(b), of the Florida Statutes, since CRA TIF Revenue cannot be utilized for ”the installation, construction, reconstruction, repair, or alteration of any publicly owned capital improvements or projects if such projects or improvements were scheduled to be installed, constructed, reconstructed, repaired, or altered within 3 years of the approval of the community redevelopment plan...” While the CRA Advisory Committee and City staff were working under the interpretation that the request for the additional outdoor terrace was an added and independent scope to the Project, the CAO clarified that this work fell within the three-year prohibition and met the definition of an alteration to an existing capital project.

City staff had discussions with the Operator and the Parks and Recreation Department to clarify the scope being requested and associated costs. The additional scope requested includes 1) an expanded terrace along the east face of the shell space, 2) additional lighting as required by code, 3) additional railings along the new terrace, 4) modification of the existing roof ladder, 5) design and installation of a grease trap system and 6) alteration and installation of the required ADA ramp.

City staff reviewed the above scope with the consultant and contractor and developed an estimated total budget of approximately $350,000, including design, permitting, fees and construction costs.

Recently, the Operator has indicated a desire to improve and complete the interior of the shell space in order to provide the intended cafe offerings contemplated in the Management and Operation Agreement and has informed City staff that they are prepared to commence preparation of design and construction documents.

Pursuant to the recommendation of the Finance and Economic Resiliency Committee (FERC) at its October 15, 2025 meeting, the scope of the project is recommended to be expanded to include additional structural improvements, terrace expansion, enhanced lighting, ADA ramp modifications, and the installation of a grease trap system.

Accordingly, this budget amendment is being presented in conjunction with a companion item on today’s agenda, which seeks the Mayor and City Commission approval of the FERC recommendation. The proposed amendment reflects the funding necessary to support the expanded project scope and facilitate implementation upon Commission approval.

Funding for this proposed amendment would come from fund balance that is available for appropriation in the Capital Reserve Fund (Fund 304).

Prior Years’ Appropriations

$2,200,956.00

December 17, 2025 Budget Amendment

350,000.00

Proposed Total Appropriations

$2,550,956.00

12. Marine Patrol Dock Improvements (#21025): The City of Miami Beach is advancing a project to reconstruct the Marine Patrol Facility Dock, located adjacent to the existing docking and boat ramp facilities at Maurice Gibb Memorial Park. The existing dock is proposed to be demolished and reconfigured to accommodate the mooring of vessels for both the City’s Police Department Marine Patrol and the City’s Fire Department. This reconfiguration will enhance operational readiness and ensure adequate docking capacity for critical public safety functions.

Initially, the permit budget for this project was estimated based on conceptual costs. While advancing and refining the project scope and design through the permitting phase, we have identified a probable budget shortfall. This determination is based on the current permit fees for other projects of similar size and scope with the relevant regulatory agencies and the City of Miami Beach (CMB) Building Department.

As a result, additional funding is specifically needed to cover permitting fees not currently accounted for in encumbered funds. These fees include those required by regulatory agencies such as the Department of Environmental Resources Management (DERM), the Florida Department of Environmental Protection (FDEP), the U.S. Army Corps of Engineers (USACE), and the City’s Building Department, as well as Capital Improvement Project (CIP) fees based on actuals from FY 2025.

Given the facility’s importance in supporting police and fire marine operations, timely approval of supplemental funding is essential to ensure compliance with regulatory requirements and the safe, efficient completion of the project.

Funding for this proposed amendment would come from fund balance that is available for appropriation in the Capital Reserve Fund (Fund 304).

Prior Years’ Appropriations

$93,900.00

December 17, 2025 Budget Amendment

85,000.00

Proposed Total Appropriations

$178,900.00

FISCAL IMPACT STATEMENT

See detailed information provided above.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

See detailed information provided above.

CONCLUSION

The City Administration recommends that the Mayor and City Commission adopt the First Amendment to the Capital Budget for FY 2026 described herein and further detailed in Attachments A-C of the accompanying Resolution.

EC/JDG/TOS

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Management and Budget

Sponsor(s)

Co-sponsor(s)

Condensed Title

*2:00 p.m. PH, Adopt 1st Amendment to the FY 2026 Capital Budget. OMB