RE.8 - A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY MANAGER TO REQUIRE THE DEPARTMENT OF REAL ESTATE AND ASSET MANAGEMENT ("DREAM"), PRIOR TO THE CLOSING OF ANY REAL PROPERTY ACQUISITION BY THE CITY OF MIAMI, TO ENSURE THE COMPLETION OF ENVIRONMENTAL SITE ASSESSMENTS SUFFICIENT TO IDENTIFY POTENTIAL SOIL AND WATER CONTAMINATION TESTING.

WHEREAS, the City of Miami (“City”) routinely acquires real property for public purposes; and

WHEREAS, environmental contamination can expose the City to significant financial liabilities and remediation obligations; and

WHEREAS, the City Commission desires to ensure that environmental conditions are identified before the City completes any property acquisition; and

WHEREAS, the City’s current environmental due diligence process requires a Phase I Environmental Site Assessment (“ESA”) prior to closing, with the option to obtain a Phase II ESA, only if warranted based on findings of the Phase I ESA; and

WHEREAS, DREAM has expanded its current environmental due diligence practices that contemplate ESA protocols based on a risk-based framework with a sequential Phase I and Phase II approach; and

WHEREAS, the current due diligence process will be modified to provide for ESA reports to be reviewed by the City’s Environmental Coordinator (“EC”) and the Office of Capital Improvements (“OCI”); and

WHEREAS, the EC and OCI shall provide written recommendations of its ESA review to the Department of Real Estate and Asset Management (“DREAM”) including, but not limited to, performance of a Phase II ESA; and

WHEREAS, DREAM shall not proceed to closing until the EC and OCI have provided DREAM with written confirmation indicating the proposed site is suitable for development for the intended purposes, with such recommendations to be provided prior to expiration deadlines defined in the underlying Purchase and Sale Agreement (“PSA”); and

WHEREAS, the City Manager is authorized to direct DREAM to proceed to closing, notwithstanding a negative recommendation from the EC and OCI; and

WHEREAS, the City Manager is directed to allocate, appropriate, and award a source of funds directly to DREAM, specifically for the cost of ESA reports, on future City real property acquisitions. Until dedicated funding is available and appropriated, the cost of the ESA reports shall continue to be treated as a closing cost and funded from an available source from the City department or City Commissioner District office requesting the acquisition;

NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA:

Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section.

Section 2. The City Manager is authorized and directed to require DREAM, prior to closing any real property acquisition, to obtain ESA reports to identify potential environmental liabilities.

Section 3. DREAM shall not proceed to closing until the EC and OCI have provided DREAM with written confirmation indicating the proposed site is suitable for development for the intended purposes, with such recommendations to be provided prior to expiration of due diligence deadlines defined in the underlying PSA, except as otherwise directed in writing by the City Manager.

Section 4. This Resolution shall become effective immediately upon adoption.