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20120111 SuppMIAMIBEACH City Commission Meeting SUPPLEMENTAL MATERIAL City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive Jaaaua~y %I, 2012 Mayor Matti Herrera Bower Vice-Mayor Deede Weithorn Commissioner Jorge R. Exposito Commissioner Michael G6ngora Commissioner Jerry Libbin Commissioner Edward L. Tobin Commissioner Jonah Wolfson City Manager Jorge M. Gonzalez City Attorney Jose Smith City Clerk Robert E. Parcher Visit us at miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings. Chapter 2, Ae%icBe V81, Division 3 of the City Code of Miami Beach entitled 'Xobbyists" requires the registration of ali lobbyists with the City Clerk prior to engaging in any Oobbying activity with the City Commission, any City Board or CommiBee, or any personnel as defined in the subject Code sections. Copies of the City Code sections on lobbyists laws are available in the City ClerKs office. Questions regarding the provisions of the Ordinance shouid be dtrected to the Office of the City SUPPLEMENTAL MATERlAl C7F A Resolution Authorizing The Administration To Issue Purchase Orders, In The Amount Of $225,000, For The Maintenance And Repair Of The Gated Revenue Control Equipment For The City's Parking Garages From The Sole Source Provider, Consolidated Parking Equipment. (Parking Department) (Resolution) C7G A Resolution Approving And Appropriating Funding For The Sole Source Purchase Of Software Upgrades To The Gated Revenue Control Equipment From Consolidated Parking Equipment For The City's Parking Garages, In An Amount Not To Exceed $30,250. (Parking Department) (Resolution) Supplemental Material, January 11, 2012 R5H An Ordinance Amending The Land Development Regulations Of The Code Of The City Of Miami Beach, By Amending Chapter 118, "Administrative And Review Procedures," Article II, "Boards," Division 5, "Board Of Adjustment," Section 1 18-1 34, "Notification Of Hearings;" Article IV, "Conditional Use Procedure," Section 118-193 "Applications For Conditional Uses"; Article VI, "Design Review Procedures;" Article X, "Historic Preservation;" And Article XI "Neighborhood Conservation Districts (NCD);" To Clarify That Continuances Shall Be Noticed By Mail After The First Continuance Granted By A Land Use Board; Providing For Repealer; Codification; Severability And An Effective Date. (Requested by Commissioner Jonah Wolfson) (Legislative Tracking: Planning Department) (Ordinance) R51 Temporary Removal Of Parking Spaces An Ordinance Amending The Code Of The City Of Miami Beach By Amending Chapter 82, "Public Property," Amending Section 82-384, "Permitted Sidewalk Cafe Frontage; Requests For Expansion," To Permit Sidewalk Cafes To Extend Into A Loading Zone Fronting A Restaurant; Providing For Repealer, Codification, Severability And An Effective Date. (Requested by the Land Use & Development Committee) (Legislative Tracking: Planning Department) (Ordinance) R7 - Resolutions R7B Amendments To The FY 2010/11 And 201 1/12 Budgets 4. A Resolution Adopting The Second Amendment To The FY 201 011 1 General Fund Budget And The First Amendment To The Enterprise, Internal Service And Resort Tax Funds Budgets For Fiscal Year (FY) 201 011 1. 2. A Resolution Adopting The First Amendment To The General Fund, Enterprise, Internal Service And Special Revenue Funds Budgets For Fiscal Year (FY) 201 1/12 To Appropriate Encumbrances And Prior Appropriations Carried Forward From FY 2010/11 And To Appropriate Funds Carried Forward For Special Revenue Budgets. (Budget & Performance Improvement) (Memorandum) R7C A Resolution Accepting The Recommendation Of The Finance And Citywide Projects Committee At Its October 27,201 1 Meeting, To Extend The Current Management Agreement With Greensquare, On A Month-To-Month Basis, Until Such Time As The New Flamingo Park Tennis Center Is Nearing Completion, And Coordinate The lssuance Of A Tennis Center(s) Operation And Management Agreement Request For Proposals (RFP) In A Manner To I-lave The Selected Operator In Place To Coincide With The Grand Opening Of The New Flamingo Park Tennis Center Facility, And Authorizing The lssuance Of The Above Referenced Request For Proposals, As Described. (Parks & Recreation) (Resolution) RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClW COMMISSION OF THE C11W OF MIAMI BEACH, FLORIDA, AUTHOWZING THE ADMIN%STMTION TO ISSUE PURCHASE ORDERS, BBII THE AMOUNT OF $225,880, FOR THE WAAlNENANCE AND REPAIR OF THE GATED REVENUE CONTROL EQUBPMENT FOR THE CI%V9S PARKING GARAGES FROM THE SOLE SOURCE PROVIDER, CONSOLiDATED PARKBNG EQUIPMENT. WHEREAS, the gated parking revenue control system is an extremely important tool that the City's Parking Department utilizes to operate and manage all of its parking garages; and WHEREAS, the system is provided and maintained by Consolidated Parking Equipment (CPE) and it is comprised of software, hardware, and equipment which monitors, processes, and provides audit trails for all parking transactions, including transient and monthly parking uses; and WHEREAS, on July 27, 2005, the City Commission adopted Resolution No. 2005- 25959, which approved Consolidated Parking Equipment (CPE) as the sole source provider of Federal APD gated revenue control equipment, pursuant to Section 2-367 (d) of the Miami Beach City Code; and WHEREAS, the aforestated Resolution also authorized the Administration to open purchase orders for maintenance and repair, in the total amount of $1 10,000 annually; however, since the approval of Resolution No. 2005-25959, the City has opened three (3) additional garages and added equipment to the existing garages, resulting in an increase to the annual maintenance and repair expenses; and WHEREAS, the Administration requests approval to open purchase orders for the maintenance and repair of all existing City garages, an annual amount not to exceed $225,000; and WHEREAS, funds for these expenses are already appropriated and included in the Parking Department's Annual operating budget. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CfTY 68MM1SSION OF THE CITY OF MIAM1 BEACH, FLORIDA, that the Mayor and City Commission authorize the Administration to issue purchase orders, in the amount of $225,000, for the maintenance and repair of the gated revenue control equipment for the City's parking garages from the sole source provider, Consolidated Parking Equipment. PASSED AND ADOPTED this day of 2012, APPROVED AS TO CITY CLERK JMGIJGGISFIRAR t:\agenda\2012\1-11-12\parkingrevenuecontrolcpe-maintenance.res.docx Agenda item C 7 F 3 Date l-ll-lL THIS PAGE %INENTIONALLY LEFT BLANK RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMBSSION OF THE C OF MIAMI BEACH, FLORIDA, APPROVING AND APPROPRIATING FUNDING FOR WE SOLE SOURCE PURCHASE OF SOFWARE UPGRADES TO THE GATED REVENUE CONTROL EQUlPMENWROU CONSOLIDATED PARKING EQUIPMENT FOR THE CBTPB'S PARKING GARAGES, IN AN AMOUNT NOT TO EXCEED $3O,25Om WHEREAS, the gated parking revenue control system is an extremely important tool that the City's Parking Department utilizes to operate and manage all of its parking garages; and WHEREAS, the system is provided and maintained by Consolidated Parking Equipment (CPE) and it is comprised of software, hardware, and equipment which monitors, processes, and provides audit trails for all parking transactions, including transient and monthly parking uses; and WHEREAS, on December 14, 201 1, the City Commission awarded the Parking Mobile Application RFP to Parking in Motion (PIM); and WHEREAS, this mobile application will provide information on the availability of parking in the City's garages and in order to retrieve this information from the gated revenue control equipment, CPE will need to upgrade and install the space count application interface; and WHEREAS, the cost for the interface is $30,250 and includes all municipal garages; and WHEREAS, On July 27, 2005, the City Commission adopted Resolution No. 2005- 25959 which approved Consolidated Parking Equipment (CPE) as the sole source provider of Federal APD gated revenue control equipment, pursuant to Section 2-367 (d) of the Miami Beach City Code. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMlSSION OF THE GHW OF MIAMIPI BEACH, FLORIDA, that the Mayor and City Commission approve and appropriate funds for the sole source purchase of software upgrades to the gated revenue control equipment from Consolidated Parking Equipment for the City's Parking garages, in an amount not to exceed $30,250. PASSED AND ADOPTED this day of 2012. ATTEST: CITY CLERK JMGIJGGISFIRAR t:\agenda\2012\1-11-12\parkingrevenuecontrolcpe-pkgapp.res.docx MAYOR Agenda Item C 7,6 Date 1-11-12 THIS PAGE INTENTIONALLY LEFT BLANK ""CONTINUANCES BY LAND USE BOARDS" ORDINANCE NO. AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAM! BEACH AMENDING THE LAND DEVELOPMENT REGULATBOMS OF THE CODE OF THE CITY OF MIAMI BEACH, BY AMENDING CHAPTER I"/, "ADMlNISTWl(aTIVE AND REVIEW PROCEDURES," ARTICLE IZ, ""BOARDS," DBVlSlON 5, ""BOARD OF ADJUSTMENT," SECTlON 118-134, "NOTIFICATION OF HEARINGS;" ARTICLE IV, "CONDBTIONAL USE PROCEDURE," SECVON 1%8-q93 "APPL8CATlONS FOR "CONDBTIONAL USES"; ARTlCbE \/I, "DESIGN REVIEW PROCEDURES;" ARBBCLE X, 'WISTORIC PRESERWTION;" AND ARTICLE XI "WEIGHBORHOOD CONSERVATiON DiSTRlCTS (NCD) ;" TO CLARIFY THAT CONTINUANCES SHALL BE NOTICED BY MAIL AFTER "bE FIRST CONTINUANCE GMNED BY A LAND USE BOARD; PROVIDING FOR REPEALER; CODIFICATION; SEVERABILIV AND AN EFFECTIVE DATE. WHEREAS, the TRAC Committee recommendations make the Land Development Application and Review Process more transparent and accessible to the public; and WHEREAS, an important recommendation of the Committee was to extend the required mailed and newspaper notice for all four land use boards from 15 days to 30 days minimum; and WHEREAS, the City Commission adopted an ordinance requiring 30 days mailed notice on December 8, 2010, Ordinance No. 2010-371 1; and WHEREAS, the Land Use and Development Committee believes that any continued item before any of the land use boards, either at a board or an applicant request should also be noticed by mail; and WHEREAS, the amendments set forth below are necessary to accomplish all of the above objectives. NOW, THEREFORE, BE IT DULY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAME BEACH, FLORIDA, AS FOLLOWS: Section I. That Chapter 118, "Administration and Review Procedures," Article II, Boards, Division 5,"Board of AdjustmentYq9 Section 118-134, "Notification of hearings" is hereby amended as follows: Sec. 1 +I 8-1 34. Notification sf hearings. The board of adjustment shall not vary or modify any regulation or provision of these land development regulations or hear an appeal of an administrative decision until a public hearing has been held. At least 30 days prior to the public hearing date, a description of the request, and the date, time and place of such hearing shall be (i) posted on the property, Agenda laem Date l-l/-lz (ii) advertised in a paper of general paid circulation in the community, and (iii) given by mail to the owners of record of land lying within 375 feet of the property. This mailed notification requirement shall be the responsibility of the applicant. Where the application is for an appeal of an administrative decision the preceding information shall be supplemented by an explanation of what is being appealed. The board mav continue an application to a date certain at either the request of the applicant or at its own discretion, with notice through a verbal announcement at the public meeting at the time of the board vote approving the continuance only one time. All further continuances of the same application shall be noticed at least 30 days prior to the public hearing date, in accordance with the provisions of (i) through (iii) above. The mail notification requirement shall be the responsibility of the applicant. Agenda items that the board cannot consider due to the absence of a quorum shall be automatically continued to the board's next regular meeting without further required notice. Section 2. That Chapter 118, "Administration and Review Procedures," Article IV, "Conditional Use Procedure," Sec. 11 8-193. "Applications for conditional uses" is hereby amended as follows: Sec. 11 8-1 93, Applications for conditional uses. Applications for approval of a conditional use shall be submitted to the planning department, which shall prepare a report and recommendation for consideration by the planning board, and when required, by the city commission. Within a reasonable time, but in no instance less than 30 days after receipt of a completed application, the board shall hold a public hearing, at which parties in interest and citizens shall have an opportunity to be heard. At least 30 days prior to the public hearing date, a description of the request, and the-date, time and place of such hearing shall be: posted on the property, advertised in a paper of general paid circulation in the community, and (iii) given by mail to the owners of record of land lying within 375 feet of the property. This mailed notification requirement shall be the responsibility of the applicant. The board may continue an application to a date certain at either the request of the applicant or at its own discretion, with notice through a verbal announcement at the public meeting at the time of the board vote approving the continuance only one time. All further continuances of the same application shall be noticed at least 30 days prior to the public hearing date, in accordance with the provisions of (i) through (iii) above. The mail notification requirement shall be the responsibility of the applicant. Agenda items that the board cannot consider due to the absence of a quorum shall be automatically continued to the board's next regular meeting without further required notice Section 3. That Chapter 118, "Administration and Review Procedures," Article Vl, "Design Review Procedures," is hereby amended as follows: Sec. 1 18-254. "Decision of design review board" (b) At least 30-days prior to the public hearing date, a description of the request, and the date, time and place of such hearing shall be: (i) posted on the property, (ii) advertised in a paper of general paid circulation in the community; and (iii) given by mail to the owners of record of land lying within 375 feet of property. The mail notification requirement shall be the responsibility of the applicant. Additionally, courtesy notice shall also be given to any state nonprofit community organization which has requested of the director in writing to be notified of board hearings. Set. 1 18-257. Deferrals, continuances, and withdrawals. (a) An applicant may defer an application before the public hearing only one time. The request to defer shall be in writing. When an application is deferred, it shall be re- noticed at the applicant's expense as provided in section 118-254. The applicant shall also pay a deferral fee as set forth in this article. In the event that the application is not presented to the design review board for approval at the meeting date for which the application was deferred, the application shall be deemed null and void. If the application is deferred by the board, the notice requirements shall be the same as for a new application as provided in section 11 8-254, and shall be at the city's expense. (b) The board may continue an application to a date certain at either the request of the applicant or at its own discretion, with notice through a verbal announcement at the public meeting at the time of the board vote approving the continuance onlv one time. All further continuances of the same application shall be noticed at least 30 davs prior to the public hearing date, in accordance with the provisions of (i) through (iii) above. The mail notification requirement shall be the responsibilitv of the applicant. Agenda items that the board cannot consider due to the absence of a quorum shall be automaticallv continued to the board's next regular meeting without further required notice. Section 4. That Chapter 118, "Administration and Review Procedures," Article X, "Historic Preservation," is hereby amended as follows: Division 3. Issuance of Certificate of AppropriatenessICertificate to DigICertificate of Appropriateness for Demolition" Section 1 18-563, "Review procedure" (c) All applications for a certificate of appropriateness for the demolition or partial demolition of any building, structure, improvement, significant landscape feature, public interior or site individually designated in accordance with sections 11 8-591, 11 8-592 and 118-593, or located within an historic district and all applications for a certificate of appropriateness for new building construction, alteration, rehabilitation, renovation, restoration or any other physical modification of any building, structure, improvement, significant landscape feature, public interior or site individually designated in accordance with sections 1 18-591, 1 18-592 and 1 18-593, or located within an historic district shall only be considered by the board following a public hearing. At least 30 days prior to the public hearing date, a description of the request with the date, time and place of such hearing shall be: (i) posted on the property, (ii) advertised in a paper of general paid circulation in the community, and (iii) given by mail to the owners of record of land lying within 375 feet of the property. The mail notification requirement shall be the responsibility of the applicant. The board mav continue an application to a date certain at either the request of the applicant or at its own discretion, with notice through a verbal announcement at the public meeting at the time of the board vote approving the continuance onlv one time. All further continuances of the same application shall be noticed at least 30 davs prior to the public hearing date, in accordance with the provisions of (i) through (iii) above. The mail notification requirement shall be the responsibilitv of the applicant. Aaenda items that the board cannot consider due to the absence of a quorum shall be automaticallv continued to the board's next regular meeting without further required notice Division 4. Designation Sec. 1 18-591. Historic designation procedure. (4) Public hearing; notification. A public hearing on a proposed historic preservation designation shall be conducted by the historic preservation board after the date a designation report has been filed. The property owners of record within 375 feet of the property proposed for designation shall be notified by mail of the public hearing at least 4-5 3 days in advance of the hearing. This notification requirement shall be the responsibility of the applicant. (g) Designation procedures initiated by owners of single-family homes in single- family districts. Notwithstanding the above, the following shall apply to any request by property owners for the individual designation of their single-family homes as historic structures: (2) Public notice requirements. At least 30 days prior to the public hearing date for the subject designation, a description of the request with the time and place of the public hearing, shall be advertised in a paper of general paid circulation in the community. The board mav continue an application to a date certain at either the request of the applicant or at its own discretion, with notice through a verbal announcement at the public meeting at the time of the board vote approving the continuance onlv one time. All further continuances of the same application shall be noticed at least 30 davs prior to the public hearing date, in accordance with the provisions of (i) through (iii) above. The mail notification requirement shall be the responsibilitv of the applicant. Agenda items that the board cannot consider due to the absence of a quorum shall be automatically continued to the board's next regular meeting without further required notice. Section 5. That Chapter 118, "Administration and Review Procedures," Article XI. "Neighborhood Conservation Districts (NCD)" is hereby amended as follows: Sec. 11 8-705. Procedures for adoption of specific NCD overlay districts. * * * Preliminary review. (2) Notification of the preliminary public hearing shall be advertised in accordance with section 11 8-1 64(2)(b) regardless of acreage and, in addition, all property owners within the proposed district as well as within a 375-foot radius of the proposed district shall be notified by individual mail notice with a description prepared in plain English, and postmarked 30 days in advance of the hearing. Discussion and recommendations by the design review board. (2) Notification of this public meeting shall be advertised in a newspaper of general circulation 30 days prior to the meeting. The board mav continue an application to a date certain at either the request of the applicant or at its own discretion, with notice through a verbal announcement at the public meeting at the time of the board vote approving the continuance onlv one time. All further continuances of the same application shall be noticed at least 30 days prior to the public hearing date, in accordance with the provisions of (i) through (iii) above. The mail notification requirement shall be the responsibilitv of the applicant. Agenda items that the board cannot consider due to the absence of a quorum shall be automaticallv continued to the board's next renular meetinn without further required notice Section 6. Repealer. All ordinances or parts of ordinances and all sections and parts of sections in conflict herewith be and the same are hereby repealed. Section 7. Codification. It is the intention of the City Commission, and it is hereby ordained that the provisions of this ordinance shall become and be made part of the Code of the City of Miami Beach as amended; that the sections of this ordinance may be renumbered or relettered to accomplish such intention, and that the word "ordinance" may be changed to "section" or other appropriate word. Section 8. Severability. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. Section 9. Eeective Date. This Ordinance shall take effect ten days following adoption. PASSED and ADOPTED this day of , 2012. MAYOR ATTEST: CIW CLERK APPROVED AS TO FORM AND LANGUAGE First Reading: Second Reading: Verified by: Richard G. Lorber, AlCP Acting Planning Director Underscore denotes new language. denotes deleted language. T:WGENDADO12\1-1 I-12\Noticing requirements for continuances by any of the LUB - ord.docx ORDINANCE No. AN ORDINANCE OF THE MAYOR AND 61$Y COMMISSION OF THE 61$Y OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF WE C1W OF MIAMI BEACH BY AMENDING CHAPTER 82, 'TUBLIC PWOPERW," AMENDING SECTION 82-384, "PERMI'$$ED SBDEWALK CAF~ FRONMGE; REQUESX FOR EXPANSION," TO PERMIT SIDEWALK CAFES TO EXTEND INTO A LOADiNG ZONE FRON"ll"NG A RESTAURANT; PROVIDING FOR REPEALER, COD1FICATlON7 SEVERABILIW AND AN EFFECTIVE DATE. WHEREAS, on S,eptember 15, 2010, the Mayor and Commission referred the issue of permanent parking space removals from City inventory to the Land Use and Development Committee (LUDC); and WHEREAS, on September 27, 2010, the LUDC held a discussion regarding strengthening the process by which permanent parking spaces may be removed from City inventory, for instance by limiting the purpose and/or requiring Commission approval; and WHEREAS, at the May 18, 2011 meeting the LUDC discussed the temporary removal of parking spaces for additional sidewalk cafe seating and recommended to send it to the full City Commission; and WHEREAS, on June 1, 201 1 the full City Commission ratified this directive from the LUDC through approval of the LUDC Committee report on the Consent Agenda; and WHEREAS, the amendments set forth below are necessary to accomplish all of the above objectives. NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CIn COMMISSION OF THE C1m OF MIAMI BEACH, FLORIDA. SECTlON 1. That Chapter 82, "Public Property," Section 82-384, "Permitted sidewalk cafe frontage; requests for expansions," is hereby amended as follows: Sec. 82-384. Permitted sidewalk cafe frontage; requests for expansions. Sidewalk cafes are restricted to the sidewalk frontage of the restaurant to which the permit is issued or, if the restaurant is an ancillary and/or secondary use to another type of business establishment, the sidewalk cafe shall be restricted to the sidewalk frontage of the building (or portion thereof) of the "primary" business establishment (within which the restaurant is located). Only a restaurant whose premises are on a ground floor adjacent to and fronting the sidewalk may be issued a sidewalk cafe permit. Sidewalk cafes mav be extended into a loadinq zone fronting a restaurant as provided in subsection (d) below. Agenda Item 8 5 1 Date 1-!\-I2 Loading zones in front of a around floor restaurant use with sidewalk frontage and a sidewalk cafe permit may be used as part of an expanded sidewalk cafe permit area when the street on which the loading zone is located is closed to traffic, provided that the loading zone is within a street area that is reaularlv closed to traffic during certain days or hours, a minimum of five davs each week. All platforms, tables and chairs in the loading zone shall be removed at the close of business each night. A permit modification will be required before use of a loading zone may commence, subiect to suspension or revocation at the discretion of the Public Works Director. The fee for the temporary expanded sidewalk cafe permit area shall be as provided in Section 82-383, City Code. SECUION 2. CODIFICA"$ON. It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this ordinance shall become and be made part of the Code of the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section", "article", or other appropriate word. SECTION 3. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed SECTION 4. SEVEMBILIW. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 5. EFFEC"IP"VE DATE. This Ordinance shall take effect ten days following adoption. PASSED AND ADOPTED this day of ,2012. ATTEST: CITY CLERK First Reading: Second Reading: Verified by: Richard G. Lorber, AlCP Acting Planning Director Underscore denotes new language. denotes deleted language. T:\AGENDA\2012\1-1 I-lP\temporary removal of parking spaces MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION *PP I aty hK6rneyda Date ord rev gh 1st reading 1-6-12.doc COMMISSION ITEM SUMMARY Condensed TitIe: I A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING THE SECOND AMENDMENT TO THE FY 2010111 GENERAL FUND BUDGET AND THE FIRST AMENDMENTTO THE ENTERPRISE, INTERNAL SERVICE AND RESORTTAX FUNDS BUDGETS FOR FISCAL YEAR (FY) 201 011 1 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE GENERAL FUND, ENTERPRISE, INTERNAL SERVICE AND SPECIAL REVENUE FUNDS BUDGETS FOR FISCAL YEAR (FY) 201 1112 TO APPROPRIATE ENCUMBRANCES AND PRIOR APPROPRIATIONS CARRIED FORWARD FROM FY 2010111 AND TO APPROPRIATE FUNDS CARRIED FORWARD FOR SPECIAL REVENUE BUDGETS Key Intended Outcome Supported: Ensure expenditure trends are sustainable over the long term Improve the City's overall financial health and maintain overall bond rating Supporting Data (Suweys, Environmental Scan, etc.): The $3.6 million in prior year surplus set-aside for FY 201 1112 will not be available for FY 201211 3, immediately creating a gap that will need to be addressed in FY 2012113. Issue: I Whether to adopt the amendrqents to the FY 201011 1 and FY 201 1112 operating budgets. item SummaryIRecommendation:: Overall, there is a General Fund operating budget surplus of $3,658,538 (1.5% of budget). This surplus is despite an estimated revenue shortfall of approximately $2.1 million and pension contributions in excess of budget by approximately $665,000 as explained in prior quarterly projection reports. Combined, this represents the absorption of nearly $2.8 million in deviations from budget, once again reflecting the pro-active initiatives taken by the City to reduce expenses below the adopted budget. Further, an additional $2 million in Resort Tax transfer is recommended for FY 201011 1, consistent with the level of transfer included in the FY 201 1112 budget, and supported by increased Resort Tax revenues. However, the $1,546,709 previously budgeted Building Reserves to help offset FY 201011 1 Building Department expenses is recommended not be used for FY 201011 1, given the preliminary actual revenues and expenditures of the Building Department in FY 2010111, Instead it is recommended that those funds remain available for future years. In addition, there are $275,281 in encumbrances from FY 201 011 1 for goods or services which have been procured but not yet received and expended, which will need to be re-appropriated in FY 201 111 2 and $426,704 in FY 2010111 General Fund appropriations not expended or encumbered in FY 201011 1 be set aside for appropriation and expenditure in FY 201 1112. The resulting impact of these changes is a revised net surplus of $3,409,844. An amendment to the FY 201 1112 budget is also needed to provide the authorization necessary for departments to expend $275,281, $77,344 and $307,069 in General, Enterprise and Internal Service Funds encumbrances, respectively from FY 201011 1 for goods or services which were procured but not received and expended as of September 30,201 1 ; re-appropriates $426,704 in FY 201 1/12 for General Fund items appropriated but not expended or encumbered in FY 201 011 1 and $199,895 in Special Revenue Fund appropriations for Education Compact Funds appropriated in prior years to be used for teacher development programs and fees to the International Baccalaureate Organization; Greenlsustainability Funds and Waste Hauler Additional Services and Public Benefit Contributions Financiai Information: ( Financial impact Summary: AQ EM DA .ITEM DATE 1-ii-12 Source of Funds: m OBPl I FY 201 119 2 Amount ($ 1,609,445) 3,026,271 4,949,271 234.108 FY 201 Oll l - Account General Fund Enterprise Funds Resort Tax Fund Internal Service Funds $701,985 77,344 307,069 199,895 General Fund Enterprise Funds lnternal Service Funds Special Revenue Funds City of: Miami Bscach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.rniarnibeochfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: January 1 1, 201 2 3 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE SECOND AMENDMENT TO THE FY 2010lll GENERAL FUND BUDGET AND THE FIRST AMENDMENT TO THE ENTERPRISE, INTERNAL SERVICE AND RESORT TM FUNDS BUDGETS FOR FISCAL YEAR (FYI 201 011 1 A RESOLUTION OF THE MAYOR AND ClW COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE GENERAL FUND, ENTERPRISE, INTERNAL SERVICE AND SPECIAL REVENUE FUNDS BUDGETS FOR FISCAL YEAR (FY) 2011112 TO APPROPRIATE ENCUMBRANCES AND PRIOR APPROPRIAT1ONS CARRIED FORWARD FROM FY 2010111 AND TO APPROPRIATE FUNDS CARRIED FORWARD FOR SPECIAL REVENUE BUDGETS ADMBNISTRATION RECOMMENDATION Adopt the resolution amending the FY 201011 1 General Fund, Enterprise Funds, Internal Service Funds and Resort Tax Fund Budgets, appropriating funds to cover prior year encumbrances, and amend certain department budgets. Adopt the resolution amending the FY 2011112 General Fund Budget, appropriating encumbrances carried forward from FY 201011 1 and appropriating special revenue funds carried forward from FY 201 011 1 to FY 201 111 2. GENERAL FUND ANALYSIS The year-end budget to preliminary actual comparisons are presented in the following pages. These comparisons show that, overall, there is an operating budget surplus of $3,658,538 (1.5%) in the General Fund. A summary of the preliminary General Fund Revenues and Expenditures as of September 30, 201 1 is as follows: Second Amendment to the FY 2010111 General Fund Budget and First Amendment to the FY 201 011 1 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 1112 General Fund Budget and Special Revenue Budgets Page 2 Expenditures 1 239,468,664 1 233,747,390 1 (5,721,27411 General Fund Revenues* I Surplus1 (Deficit) ( $ 0 1 $ 3,658,538 1 $ 3,658,538 1 Note: * The amended budaet reflected above includes the budaet amendment that was adopted February, 201'i. This amendment authorized the uie of $1.95 million in reserves to be set aside for the FY 2011112 budget, and had no net impact on revenues versus expenditures Budget FY 201011 1 As Amended $ 239,468,664 It is important to note that this is despite an estimated revenue shortfall of approximately $2.1 million and pension contributions in excess of budget by approximately $665,000 as explained in prior quarterly projection reports. Combined, this represents the absorption of nearly $2.8 million in deviations from budget, once again reflecting the pro-active initiatives taken by the City to reduce expenses below the adopted budget. These initiatives included the continuation of a modified hiring freeze, delayed hiring of other positions, re-bidding of contracts where appropriate to take advantage of the more competitive economic environment, close scrutiny of major purchases, and continuous evaluation of opportunities to reduce costs in all departments. Further, given how we ended the year in the Resort Tax Fund and the fact that Resort Tax related expenses in the General Fund are estimated to be above the level of the budgeted transfer, I am recommending that the Resort Tax transfer to the General Fund for FY 201011 1 be increased by $2 million, consistent with the level of transfer included in the FY 201 111 2 budget. Preliminary Actual FY 201 011 1 $ 237,405,928 At the same time, I am recommending that the $1,546,709 previously budgeted Building Reserves to help offset FY 201 011 I Building Department expenses not be used at for FY 201011 1, but rather continue to be held in reserve for future years given the uncertainty in the construction industry. As you may recall, the General Fund Revenue Budget included the use of the $1,546,709 in Building Department Reserves. Given the preliminary actual revenues and expenditures of the Building Department in FY 2010111, the use of this reserve is not needed. Instead those funds will remain available for future years. Budgeff Actual Over1 (Under) $ (2,062,736) In addition, there are $275,281 in encumbrances from FY 2010111 for goods or services which have been procured but not yet received and expended, which will need to be re- appropriated in FY 2011112. Further, it is recommended that the following FY 2010111 General Fund appropriations totaling $426,704 not expended or encumbered in FY 201011 1 be set aside for appropriation and expenditure in FY 201 1112. These funds need to be set aside in order to ensure that they are available for re-appropriation in FY 201 1112 when it is anticipated that the goods andlor services will be received. $66,143 of the remaining balance of funds previously set aside for transportation of senior citizens. This fund was created several years ago with initial funding of $1 50,000. Setting the remaining balance aside will ensure that it is available for re- appropriation and expenditure in FY 201 1112. e $132,000 for ongoing assessments of City buildings - these assessments were deferred in FY 201011 1 but are needed in FY 201 1112 to continue to ensure major components of City Building are replaced in a timely manner. Second Amendment to the FY 2010/11 General Fund Budget and First Amendment to the FY 2010/11 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 1/12 General Fund Budget and Special Revenue Budgets Page 3 $200,000 for the FY 201 1112 elections - in FY 2010111 we began funding for elections in level annual amounts each year rather than funding every other year when elections occur. In order for these funds to be available in FY 201 1112 for the November 12 elections, they should be set aside in FY 201011 1. $28,561 for purchase of tough books by the Public Works Department - these were planned for FY 201 011 1 but will occur in FY 201 1/12. The resulting impact of these changes would be a revised net surplus of $3,409,844. Preliminary Year End Suplus Changes in Revenue Appropriations Additional Resort Tax Transfers to the General Fund Reserve for Building Department Operations (7,546,709) Total Additional Revenue Appropriations $ 453,291 Changes in Expenditure Appropriations Reserve - Encumbrances 275,281 Reserve- Carryforward of PI 201 011 1 Appropriations 426,704 Total Additional Expenditure Appropriations $ 701,985 Revised Year-end Surplus The City's financial policies adopted pursuant to Resolution 2006-26341 and Resolution 2002-24764 require that one time revenues (such as the year-end ouapbus) mslst be used for non-recasrri~pgr expenses, and that at Beast hasf of the annuad year-(end surplus must be ajiocated to the City's Capital R~eme Fund However, the City's Capital Reserve was established in FY 2005106 at a time when the industry was at a peak, and project bids were often coming in significantly higher than budgeted. The market for the last couple of years, however, has been very different, with construction bids being received significantly under projects budgets, and at the same time, the Capital Reserve has accumulated approximately $12 million in funding. Therefore, I am recommending that the Capital Reserve transfer requirement again be waived for the FY 2010111 year- end surplus similar to what was done last year. Further, as in FY 2008109 and FY 2009110, no use of the General Fund surplus is recommended to address the City's FY 201011 1 accrued liability for post employment benefits (primarily health insurance) pursuant to recently enacted reporting requirements of Governmental Accounting Standards Board Statement #45 (GASB 45). The City's budgets for the last several years have been extremely challenging due to the recession and declining property values. In response to declining revenue in several categories, the City has responded with substantial reductions totaling $49 million and 269 positions over 5 years. In addition, employee "give-backs" totaled approximately $12 million in savings in FY 201011 1 and almost $15 million between FY 2009110 and FY 201 011 1, representing abmosf $64 midlion in ccrombi~ed "@vebacks3' and mductiono over 5 years, Second Amendment to the FY 201011 1 General Fund Budget and First Amendment to the FY 201 011 1 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 111 2 General Fund Budget and Special Revenue Budgets Page 4 The FY 201011 1 budgets included the use of $3.7 million in FY 2008109 surplus and the FY 2011112 budget included the use of $3.6 million set aside between FY 2009110 and FY 201 011 1. Since prior year surpluses are one-time revenue that will not be available for FY 2012113, this creates a gap that will need to be addressed in FY 2012113, unless other revenues increase to offset this amount or expenditures decrease. At this time, the outlook for FY 2012113 property tax revenues remains uncertain; and, as an example, a 5% change in property values represents $5 million in property tax revenues, if tax rates remain unchanged. Further, additional pension increases are anticipated for FY 2012113 as poor investment experience from FY 2007108 and FY 2008109 continues to be recognized along with poor investment experience in FY 201011 1 (although these may be somewhat mitigated by recent changes to the pension plans and salary freezes). For this reason, I am once again recommending that the FY 2010/11 General Fund budget be amended to set aside $3.4 million in a reserve for possible use to address potential shortfalls in the FY 2012113 budget, very similar to the amount budgeted for in FY 201 1112. GENERAL FUND OPERATING REVENUE AND EXPENDITURE VARIANCES Revenues Preliminary year-end actual revenues are approximately 99% of the original budget or 237,405,928. Detailed comments on those revenue categories with significant variances over $300,000 are shown in the following section. 1. Ad Valorem Propem Taxes - Year-end collections of $98,707,435 are 1.5% under budget, creating a net shortfall of $1,514,587. This is primarily due to higher than anticipated property value appeals approved by Miami-Dade County. 2. Other Taxes - This category includes franchise and utility taxes on services. As projected from early in the fiscal year, actual collections of $24,074,326 resulted in a shortfall of $1.3 million, or 5%, at year-end. This is primarily due to decrease in revenues from electric and telephone utility taxes. 3. Licenses and Permits - This category is comprised of licenses and building and special use permits. In total, the actual collections for Licenses and Permits exceeded budget by $2.9 million, or 9.7%. This is slightly above third quarter projections. The majority of this increase was from building development process fee revenues, as a result of an increased number of permits and larger projects reflecting the improving economy. 4. Intergovernmental Revenues - Year-end collections are above budget by 3.7% or $0.35 million. This is primarily due to increases in the local government '% cent sales tax revenues, also reflecting the improving economy. 5. Fines and Forfeits - Year-end collections are below budget by 17.3% or $0.56 million. This is mainly due to lower than budgeted fines from red light cameras. As reported to you at the March 2011 Commission meeting and quarterly projection reports throughout the fiscal year. Second Amendment to the FY 201011 1 General Fund Budget and First Amendment to the FY 201011 1 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 1112 General Fund Budget and Special Revenue Budgets Page 5 6. interest - Year-end collections are below budget by 34% or $1.2 million. This is mainly due to reduced investment returns from long term investment vehicles that matured in the current fiscal year and are reinvested at prevailing interest rates which are much lower in this investment climate, as well as approximately $0.6 million in "Unrealized Losses on Investments" which have a non-cash impact for FY 201011 1. Governmental Accounting Standards Board Statement #31 (GASB 31), implemented in 1997, requires the City to report its investments at fair market value as if they were immediately liquidated on September 30 each year, and to recognize these as "unrealized gains or losses in investments", although the actual cash impact is not felt until future years. By comparison, in FY 2008109 and FY 2009110, the City had a gain of $2.3 million and a loss of $1.95 million, respectively. Although this is a non-cash impact, it will still reflect on the financials as a loss for FY 201011 1, however, given there remains a year-end surplus for the General Fund overall, thereby mitigating this loss. 7. Rents and Leases - As anticipated in prior quarterly projection reports, year-end revenues are above budget by $0.6 million, or 12%. This is due primarily to increased revenues from various leases, 8. Miscellaneous - This category includes concessions, planning fees, and other reimbursements. Year-end revenues are 9% below budget or approximately $1 million. As explained in prior quarterly projection reports, this is due primarily to lower than anticipated revenues from the Commercial Pole Banner Program and corporate sponsorships which are still being pursued and negotiated as well as decreased reimbursement from capital projects for the Capital Improvement Office due to vacancies. This decrease in revenues is offset by a decrease in expenditures in the Capital Improvements Office. Operating Expenditures Preliminary year-end actual expenditures are approximately 98% of the original budget or $233,747,390. It is important to note that, at the time of adoption of the FY 2010111 budget, the City was at impasse with the Communication Workers of America (CWA) bargaining unit, and the budget included the impact of several initiatives that would have significantly reduced expenditures related to CWA employees through contracting, conversion to part-time schedules for more efficient scheduling, etc. (Plan B). The first-year savings from these initiatives amounted to over $200,000 in the General Fund across various departments. Not being able to anticipate the outcome of these negotiations at the time of adopting the budget, an increased operating contingency was budgeted under the Citywide Accounts. Subsequent to the adoption, an agreement was reached with CWA that included several employee give-backs that fully met our budgeted savings in exchange for a no-layoff provision. Therefore the proposed Plan B initiatives were not implemented and, while most departments were able to still remain below budget at year-end, three departments exceeded their budget by less than one percent, at least in part due to these reasons. No department exceeded its budget by more than $300,000. Additionally, several departments were more than $300,000 under budget as shown on the following pages. Second Amendment to the FY 2010/11 General Fund Budget and First Amendment to the FY 2010/11 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 1/12 General Fund Budget and Special Revenue Budgets Page 6 Parks and Recreation - Excluding Golf Courses Budget/ Prelim. % Over1 Amended Budget Preliminary Actual Actual (Under) Expenditures $ 21,648,891 $ 21,072,041 $ (576,850) -2.7% Approximately $0.6 million in savings (2.7% of budget) was achieved in the Parks and Recreation Department from the rebidding and continued management of contracted landscaping cycles, as well as salary savings and savings across multiple operating accounts in the Recreation division. Budget/ Prelim. % Over1 Amended Budget Preliminary Actual Actual (Under) Expenditures $ 6,372,884 $ 5,511,856 $ (861,028) -1 3.5% Approximately $0.9 million in savings (13.5 % of budget) was achieved in the Public Works Department in the General Fund primarily due to salary savings associated with vacant positions, as well savings in operating accounts including the Building assessments as discussed previously in this memo, and contingency contracts for streets and streetlight repairs. Capital Improvements Program Office Budget/ Prelim. % Overl Amended Budget Preliminary Actual Actual (Under) Expenditures $ 4,520,748 $ 3,849,538 $ (671,210) -14.8% Consistent with prior quarterly projections, there are $0.7 million (14.8% of budget) in expenditures savings in the Capital Improvements Program Office primarily due to vacancies and resulting salary savings. 4. Police Budget/ Prelim. % Overl Amended Budget Preliminary Actual Actual (Under) Expenditures $ 88,920,529 $ 88,151,029 $ (769,500) -0.9% Consistent with prior quarterly projections, there are $0.8 million (0.9% of budget) in expenditures savings in the Police Department primarily due to vacancies and resulting savings in personnel costs (although these savings are partially offset by increased court overtime) and significant savings in professional services primarily due to savings in recruitment costs contributed to the Department being under budget. Second Amendment to the FY 2010/1 1 General Fund Budget and First Amendment to the FY 201 0/11 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 1/12 General Fund Budget and Special Revenue Budgets Page 7 Ciwide Accounts - Including Contingency and Transfers Budget1 Prelim. % Over1 Amended Budget Preliminary Actual Actual (Under) Expenditures $ 15,700,892 $ 14,138,949 $ (1,561,943) -9.9% Approximately $1.6 million in savings (17% of budget) was achieved in Citywide accounts, primarily due to unspent contingency of $1.3 million, deferral of the Community Satisfaction Survey to FY 201 1/12 as directed by the Commission, carry forward of $200,000 in funds budgeted annually for elections, $75,000 in savings from funds budgeted for a local government lobbyist, and $67,170 encumbered for special studies but not yet spent. Although the total General Fund expenditure is below budget, Florida Statues require that the actual expenditures not exceed budget at the level at which the budget is adopted, which in Miami Beach is at the Department level. Therefore a budget amendment is required for departments that overspent their appropriation and to allow the transfer to the Set Aside amounts for FY 201 111 2 and FY 201211 3. A summary of the resulting increases and decreases to revenues and expenditures and the resulting proposed amended budget for FY 2010/11 is provided below and on the following pages. GENERAL FUND REVENUES OPERATING REVENUES Property Tax (5.5472) Property Tax (5.5472)-So Pt Costs Property Tax (0.1083)-Capital R & R Property Tax - Norm Shores (0.8567) Other Taxes Licenses and Permits Intergovernmental Charges for Services incl. Golf Courses Fines and Forfeits Interest Rents and Leases Miscellaneous Other - Resort Tax Other - Non Operating revenues Reserves - Building Department Revenues FY 09 Year-End Surplus Set Aside Pr~or Yr Surplus from Park~ng Oper Fd Fund Bal-Resrv Future Budget Shortfalls Total General Fund Changes in FY 2010/11 Rev/Exp Rec. Additional FY 2010/11 Amended Budget Appropriation Appropriation Amended Budget Second Amendment to the FY 201011 1 General Fund Budget and First Amendment to the FY 201 011 1 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 1/12 General Fund Budget and Special Revenue Budgets Page 8 FY 201011 1 Amended Changes in Budget As of 2- RevlExp Rec. Additional 9-1 1 Appropriation Appropriation FY 2010/11 Amended Budget GENERAL FUND APPROPRIATIONS Department MAYOR & COMMISSION ClTY MANAGER Communications BUDGET&PERFORMANCElMPROVE FINANCE Procurement HUMAN RESOURCESILABOR RELATIONS CITY CLERK ClTY ATTORNEY REAL ESTATE, HOUSING & COMM. DEV Community Services Homeless Services BUILDING Code Compliance PLANNING TOURISM & CULTURAL DEVELOPMENT PARKS & RECREATION PUBLIC WORKS CAPITAL IMPROVEMENT PROJECTS POLICE FIRE Citywide Accounts-Other Citywide Accounts - Operating Contingency Citywide Accounts-Normandy Shores Sub Total General Fund TRANSFERS Capital Reserve Fund Pay-As-You-Go Capital Fund Capital Investment Upkeep Account Info & Comm Technology Fund Reserve Future Building Dept Needs Reserve - FY 201 1/12 Budget Shortfalls Reserve - FY 2012113 Budget Shortfalls Reserve- Carryforward of FY 201011 1 Appropriations Reserve - Encumbrances CAPITAL RENEWAL & REPLACEMENT Sub Total Transfers Total General Fund Second Amendment to the FY 201011 1 General Fund Budget and First Amendment to the FY 2010/11 Enterprise, lnternal Service and Resort Tax Budgets First Amendment to the FY 201 1112 General Fund Budget and Special Revenue Budgets Page 9 ENTERPWDSE FUNDS FY 2010114 BUDGET AMENDMENT The City accounts for proprietary operations in Enterprise Funds. Convention Center, Parking, Sanitation, Sewer, Stormwater, and Water in this grouping. As highlighted in prior quarterly projections, the Water Fund requires a budget amendment for increased payments to Miami-Dade County for wholesale water and increased funding for renewal and replacement, although partially offset by contingency savings. However, these increased payments are offset by increased revenues from water sales to City customers. ENTERPRISE FUNDS Revenue Appropriation Charges for Service Total Revenue lncrease Expenditure Appropriation Payroll and Fringes Operating Costs Funded for Future Renewal & Replacement Water Purchase Operating Contingency Internal Service Charges Capital and Debt Total Expenditure lncrease Water lNTERNAL SERVICE FUNDS FY 201011% BUDGET AMENDMENT The City accounts for those goods and services provided by one department to other departments citywide on a cost reimbursement basis. Central Services, Fleet Management, Information Technology, Property Management, and Risk Management (Self Insurance) are included in this grouping. Despite absorbing the pension contribution increases as described above all Internal Service Funds are anticipated to be under budget, except Central Services and Fleet Management. Central Services is anticipated to have expenditures in excess of budget by $28,709 of which $1,625 is due to additional pension contributions. The balance is due to health and life insurance increases to more accurately reflect current costs, and increases in contributions for "Other Post Employment Benefits" (OPEB) based on prior year actuarial requirements. Fleet Management is anticipated to have expenditures in excess of budget by $205,399 primarily due to increases in contributions for "Other Post Employment Benefits" (OPEB) and increased fuel costs. Second Amendment to the FY 201 011 1 General Fund Budget and First Amendment to the FY 201 011 1 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 111 2 General Fund Budget and Special Revenue Budgets Page 10 INTERNAL SERVICE FUNDS Additional Revenue Appropriation Interdepartmental Revenues Total Revenue lncrease Additional Expenditure Appropriation Payroll and Fringes Operating Costs Internal Services Depreciation Capital & Debt Total Expenditure lncrease CENTRAL SERVICES FLEET MANAGEMENT RESORT TAX FUND FY 20"l/14 BUDGET AMENDMENT The City's Resort Tax Fund is primarily supported by resort taxes collected pursuant to Chapter 67-930 (Section 6) of the Laws of Florida, as amended, and Section 5.03 of the City of Miami Beach Charter, as amended. This legislation authorizes the use of ~esort taxes for the promotion of the tourist industry, which includes, but is not restricted to the following: Publicity, advertising, news bureau, promotional events, convention bureau activities, capital improvements and the maintenance of all physical assets in connection therewith; and for the payment of the reasonable and necessary expenses of collecting, handling and processing of said tax. The City imposes a two percent tax on the rent of rooms in any hotel, motel, rooming house or apartment house. This two percent tax is also levied upon the total sales price of all food and beverages (including alcoholic beverages). In addition to funding collection of the tax, contributions to the Miami Beach Visitor and Convention Authority, and the Greater Miami Visitor and Convention's Bureau, the City has considered the following services as "Services related to the promotion of tourism": e Police officers serving entertainment areas e A portion of fire rescue services from Fire Stations 1 &2 e Ocean rescue services e Sidewalk pressure cleaning in south, middle and north beach visitor areas South Beach sanitation e Enhanced code compliance provided to respond to evening entertainment area violations and staffing of special events ss Other code compliance activities in tourism and visitor related facilitieslareas Tourism and Culture Department and the Cultural Arts Council ss Museums and Theatres (Garden Center, Bass Museum, Colony and Byron Carlyle Theatres) Golf courses (net of revenues) as Memorial Day and other special event costs Homeless services July 4th, Visitor Center funding, Holiday Lights, Festival of the Arts, Jewish Museum, MDPL, Orange Bowl, Monuments, etc. Second Amendment to the FY 201 011 1 General Fund Budget and First Amendment to the FY 201 011 1 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 1/12 General Fund Budget and Special Revenue Budgets Page 11 These allowable uses have led to increased tourist activities, such as special events, Art Basel, and various concerts. An additional one percent resort tax is levied on room rent. The proceeds of the additional one percent (1%) tax are used as follows. Fifty percent of the amount earned is committed to the payment of a portion of the debt service on the Miami Beach Redevelopment Agency City Center1 Bonds. The remaining fifty percent is allocated equally among North Beach, Middle Beach, and South Beach for capital projects that enhance Miami Beach's tourist related areas and various arts and cultural programs. Actual revenues from the additional one percent that exceed budget are automatically allocated to these categories, and, therefore, any revenues collected in excess of budget, result in expenditures in excess of budget, thereby requiring a budget amendment. The Resort Tax Fund operating revenues, including both one percent and two percent resort tax revenues, are in excess of budget by approximately $8.3 million and, as a result certain expenditures which are based on a percent of revenues are projected to exceed budget. The preliminary year-end actual expenditures are approximately $1.8 million above budget, resulting is a surplus of $6.6 million. I am, therefore, recommending that an additional $2 million transfer be made to the General Fund consistent with the increased level funded for the FY 2011112 budget. Further, revenues collected from the North Shore special assessment are deposited into the 2 percent Resort Tax Fund. Per a reconciliation performed by the Finance Department, the Resort Tax Fund has collected approximately $3.6 million in special assessments from the North Shore district between 2003 and 201 1 and $4.4 million in special assessments from the Lincoln Road district between 2003 and 201 1, of which $616,315 should be transferred to the North Shore Community Area Improvements Project and $550,671 should be transferred to the Lincoln Road Impro\/ements Fund to address prior year deficits in those districts. I am therefore recommending that these additional transfers be made also. RESORT TAX FUND Additional Revenue Appropriation 2% Resort Tax 1 % Resort Tax Other Revenues Total Revenue Increase Additional Expenditure Appropriation General Fund Contribution Other Operatinglother Uses Transfer to Service and Special Improvement Districts Funds Contributions to VCA and GMCVB Marketing Contingency 2% Debt Service 1 % Debt Service Transfer to Capital and the Arts (1%) Total Expenditure Increase Additional 2% Resort Tax Revenues (Surplus) Second Amendment to the FY 2010111 General Fund Budget and First Amendment to the FY 201011 1 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 1112 General Fund Budget and Special Revenue Budgets Page 12 The resulting recommended changes above result in a revised surplus of approximately $3.4 million. It is important to note that, as of September 30, 2010, the two percent Resort Tax Fund had only $1.3 million in available funds, equivalent to approximately 4% of the operating budget, and far short of the desired 17 percent goal. Therefore, I am recommending that this $3.4 million remain in the Resort Tax Fund, thereby increasing the reserve in the Resort Tax Fund to $4.7 million, or 15 percent, assuming no balance sheet changes. FY 2011112 BUDGET AMENDMENT Also, accompanying this agenda item is a separate resolution amending the General Fund FY 201 1/12 budget to appropriate the $275,281 in encumbrances from FY 201011 1 that are being carried forward to FY 201 1/12; to appropriate $426,704 for the items described above so that these funds can be expended in FY 201 1/12; and to appropriate the following balances for Special Revenue funds so that they can be expended in FY 201 1/12. e $129,560 in Education Compact Funds appropriated in prior years to be used for teacher development programs and fees to the International Baccalaureate Organization. a $6,335 in GreenISustainability Funds to educate and promote the City's sustainability efforts. These funds were contributed in 2009 by businesses who participated in the City's South Florida Green Lodging Workshop. e $64,000 in Waste Hauler Additional Services and Public Benefit Contributions Funds for sanitation related services including monthly "Wasteful Weekends" bulk drop off site expenses, twice yearly hazardous waste drop-off site expenses, and purchase of recycling containers. The resolution also appropriates $77,344, and $307,069 in encumbrances for Enterprise and Internal Revenue Funds, respectively, for goods and services procured in FY 201 011 1 that will not be received and expended until FY 201 1/12. CONCLUSION It should be noted that this actual is preliminary in nature due to the fact that the City's financial records will not be closed until after the external auditors complete their review. Historically, this occurs in April, with the City's Comprehensive Annual Financial Report (CAFR) For the Year Ended September 30, 201 1, usually available in May and the External Auditor's Report available in July. However, this analysis has considered all year-end entries to date and, typically, any additional changes are minor in nature. The resolution amending FY 201011 1 budgets will allow the second amendment to the departmental appropriations within the General Fund, and the first amendment to the Enterprise Funds, Internal Service Funds and Resort Tax Fund budgets to be enacted. This action is necessary to comply with Florida Statutes which stipulate that we may not expend more than our appropriations provide. Second Amendment to the FY 201 011 1 General Fund Budget and First Amendment to the FY 201 011 1 Enterprise, Internal Service and Resort Tax Budgets First Amendment to the FY 201 1/12 General Fund Budget and Special Revenue Budgets Page 13 The resolution amending FY 201 1112 budgets will provide the authorization necessary for departments to expend $275,281, $77,344 and $307,069 in General, Enterprise and Internal Service Funds encumbrances, respectively from FY 201 011 1 for goods or services which were procured but not received and expended as of September 30, 201 1. Further, it re-appropriates $426,704 in FY 2011112 for General Fund items appropriated but not expended or encumbered in FY 2010111 and $199,895 in Special Revenue Fund appropriations. RESOLUmON NO. A RESOLUTION OF WE MAYOR AND CITY COMMVIBSSION OF THE CITY OF MIAM! BEACH, FLORIDA, ACCEPTING WE RECOMMENDATlggN OF THE FINANCE AND CI IDE PROJECTS COMMITTEE AT ITS OCTOBER 27, 2011 MEETING, TO EXTEND THE CURRENT MANAGEMEN"$"AGREEMENT WITH GREENSQUARE, ON A MONTH-TO-MONTH BASIS, UNTIE SUCH TIME AS THE NEW FLAMlNGQ PARK TENNIS CENTER IS NEARING COMVIPLE"$IBN, AND COORDiNATE THE ISSUANCE OF A TENNIS CENTER(S) OPEMTION AND MANAGEMENT AGREER6lEN"lBEQlEEST FOR PROPOSALS (RFP) !I\% A MANNER TO HAVE THE SELECEED OPERATOR lN PLACE TO COINCIDE WITH THE GRAND OPENING OF THE NEW FLAMINGO PARK TENNIS CENTER FAClklW, AND AUTHOWiEBNG THE ISSUANCE OF THE ABOVE REFERENCED REQUEST FOR PROPOSALS, AS DESCRIBED. WHEREAS, this matter was referred by the Mayor and Members of the City Commission to the Finance and Citywide Projects Committee at the July 13, 201 I City Commission meeting; and WHEREAS, the current Agreement with Greensquare Inc., for the management and operation of the City's tennis centers, is due to expire in April, 2012, and it has been the Administration's intention to issue a Request For Proposals (RFP) in a timely manner to avoid any break in operations or services to the City's tennis-playing residents and guests; and WHEREAS, the RFP is intended to secure a qualified professional management company for the operation of the City's two (2) public tennis facilities, to include the operation at each facility of the tennis courts; pro shop; a food and beverage concession; other tennis-related operations, as approved by the City; and services also customarily associated with the operation of a public tennis center, including permitted special events related to the tennis center activities; and WHEREAS, the final price and terms would be negotiated after the City Commission approves authorization to negotiate with the selected entity; the new management agreement is expected to be for a three (3) year term, with two (2) one-year renewal options, at the City's option; and WHEREAS, on October 27, 2011, the Finance and Citywide Projects Committee held a discussion pertaining to the "Issuance of the Request For Proposals (RFP) for the Comprehensive Professional Tennis Management and Operations Services at the City's Flamingo Park and North Shore Park Tennis Centers"; and WHEREAS, the Finance and Citywide Projects Committee was also informed that the Flamingo Park Tennis Center construction plan anticipates phasing the work to ensure there are always banks of courts available for play; and WHEREAS, the Committee members recommended extending the current Agreement with Greensquare on a month-to-month basis, until such time as the new Flamingo Park Tennis Center is nearing completion and, at such time, coordinate the issuance of the new RFP in a manner to have the selected operator in place to coincide with the grand opening of the new facility; and Agenda Item 6? 7 C Date 1-1 1-12 WHEREAS, following discussion of the issue at its October 27, 201 1 meeting, the Finance and Citywide Projects Committee recommended that the RFP for the selection of the operator of the City's tennis facilities be issued with sufficient time for the selected operator to be able to assume operations of the tennis facilities concurrent with the opening of the renovated Flamingo Park Tennis Center; and WHEREAS, as such, the Committee recommended the extension of the current Agreement with Greensquare, Inc., on a month-to-month basis, until such time as the RFP process is complete. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND C!m COMMISSION OF THE CBm OF MIAMI BEACH, FLORIDA, that Mayor and City Commission hereby accept the recommendation of the Finance and Citywide Projects Committee at its October 27, 2011 meeting, to extend the current Management Agreement with Greensquare, on a month-to-month basis, until such time as the new Flamingo Park Tennis Center is nearing completion, and coordinate the issuance of a tennis center@) operation and management agreement Request for Proposals (RFP) in a manner to have the selected operator in place to coincide with the grand opening of the new Flamingo Park Tennis Center facility, and authorizing the issuance of the above referenced Request For Proposals, as described. PASSED AND ADOPEED this day of 201 2. ATTEST: MAYOR APPROVED AS 9.0 FORM ds MNGUAGE d FOH EXECUTION