054-2009 Capital Project Savings., - -
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OFFICE OF THE GIN MANAGER
a os4-loos MEMORANDUM
i0: Commissioner Jerry Libbin
FROM: Jorge M. Gonzalez, City Manager
DATE: October 22, 2009
SUBJECT: Capital Project Savings
This memorandum summarizes an analysis of capital project savings identified to date.
Analysis
The City's adopted capital budget contains capital project commitments appropriated for
Fiscal Year (FY) 2009/10 (Capital Budget). Preparation of the Capital Budget occurred
simultaneously with the development of the FY 2009110 - 2013114 Capital Improvement
Program (CIP) and FY 2009/10 Operating Budget.
The Capital Budget presents project budgets for both the current and new capital
projects necessary to improve, enhance and maintain public facilities and infrastructure
to meet the service demands of residents and visitors to the City of Miami Beach.
Capital reserves, debt service payments, and capital purchases found in the operating
budget are not included in this budget. The Capital Budget for FY 2009110 appropriates
funding for projects that will require commitment of funds during the upcoming fiscal
year. Projects included in the Capital Budget and CIP address many needs in different
areas of the Ciry including: neighborhood enhancements such as landscaping, sidewalk
restoration; traffic calming; roadway and bridge resurfacing and reconstruction; water,
sewer, and drainage system improvements; park construction, renovation and upgrades;
renovation of seawalls; parking lot and garage renovation, and construction of new
parking garages; constructionlrenovation of public facilities; and vehicle replacement.
The Capital Budget and CIP incorporate a phased approach for the issuance of water,
sewer and stormwater financing. Under this approach, the City has accessed a line of
credit to allow the City to have the necessary funding capacity to enter into new projects,
while allowing the City more time to both build the necessary rate capacity to issue
additional tax-exempt bonds through rate increases and also spend down the current
committed but unspent bond proceeds. This phased approach also provides the City
with more time to refine the cost estimates for the water, sewer, and stormwater projects
anticipated for FY 2009110.
Beginning in FY 2008/09, due to the downturn in the construction industry, the City
began to see significant reductions in construction bids. It is yet to be determined if
these savings will actually be achieved through the construction of these projects, but
the City is tracking the resulting potential savings identified to date.
Capital Project Savings
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these savings will actually be achieved through the construction of these projects, but
the City is tracking the resulting potential savings identified to date.
Of these identified savings, only a portion of the potential savings identified in the South
Pointe Neighborhood Right-of-Way (ROW) projects was recommended for re-
appropriation in the Capital Budget to allow full funding of the Coast Guard Booster
Pump Station-South Pointe project, thereby avoiding the need to issue short term
financing for that project. The following table provides a summary of savings identified
to date.
POTENTIAL PROJECT SAVINGS BASED ON BIDS
PROJECT SAVINGS FUNDING SOURCE
GENERAL FUND RELATED PROJECTS
Normandy Shores Clubhouse
Normandy Shores Clubhouse
Scott Rakow Youth Center
Potential Project Savings Based on Blds
802,908 Capital Reserve
670;592 Pay-as-youyo
2,500.000 Pay-as-youyo
3,913,500
CITY CENTER PROJECTS
CCHV Neighborhood Improvements -Historic District BP9A
Potential Project Savings Based on Bids
SOUTH POINTE PROJECTS
South Pointe RDA Improvements Phase II
South Pointe RDA Improvements Phase III-V
Potential Project Savings Based on Bids
City Center RDA
3,500,000 Capital Fund
3,500,000
4.200,000 South Pointe Cap"Rat
5,000.000 South Pointe Capital
9,200,000
WATER AND SEWER PROJECTS
Miscellaneous Wastewater & Water Upgrades 484,443 Water & Sewer Bonds
Upsizing Under Capacity Waste Water Indian Creek 25-41 St 478,243 Water 8 Sewer Bonds
Upsizing Under Capacity Water Main Indian Creek 25-41 Sl 795,082 Water 8 Sewer Bonds
Potential Project Savings Based on Bids 1,757,768
TOTAL TO-DATE 18,371,268
JMG /KGBl