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2003-25354 Reso RESOLUTION NO. 2003-25354 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION AND TRANSFER OF $1.1 MILLION FROM PARKING ENTERPRISE RETAINED EARNINGS TO THE FY 2003-04 ELECTROWAVE OPERATING BUDGET; SUBJECT TO THE DETERMINATION THAT THE PARKING ENTERPRISE FUND HAS MET ALL DEBT COVENANTS FOR FISCAL YEAR 2002-03. WHEREAS, for the last three fiscal years, the Parking Enterprise Retained Earnings (PERE) Program has been the major source of recurring local funds for the annual Electrowave Operating Budget (the Project); and WHEREAS, at $2,336,000 the proposed FY 2003-04 Electrowave Operating Budget is $26,000 higher than last year's, due to a three percent cost of living increase and a $47,000 one-time cost for scraping and repainting ten (10) existing shuttle buses, utilizing a uniform and transit-oriented new design; and WHEREAS, the proposed PERE contribution of $1.1 million would fund 47.09% of the budget, as proposed, while other combined sources would fund the remaining 52.91 %; and WHEREAS, these PERE funds would also provide the required local match to the outside funds made available for Electrowave operations; and WHEREAS, PERE is the appropriate source of local funds for the Project, due to the fact that organized park-and-ride shuttle programs are the most effective and reliable congestion mitigation tool available to South Beach. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the appropriation and transfer of $1.1 million from Parking Enterprise Retained Earnings to the FY 2003-04 Electrowave Operating Budget; subject to the determination that the Parking Enterprise Fund has met all debt covenants for Fiscal Year 2002-03. PASSED AND APPROVED this the 18th day of September ,2003. ~p~ CITY CLERK ':llIod I r'~ vl(l-MA OR f APPROVED M TO FORM & LANGUAGE & FOR EXECUTION F:IWORK\$TRAIAMELlAIELECTWVEIPEREforEW.memo.doc CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY ~ - Condensed Title: A Resolution authorizing the appropriation and transfer of $1.1 million from Parking Enterprise Retained Earnings (PERE) to the FY 2003-04 Shuttle Operating Budget; subject to determination that the Parking Enterprise Fund has met all debt covenants for FY 2002-03. Issue: Shall the City Commission appropriate PERE funds for circulator shuttle operations? Item Summa IRecommendation: As done in previous years, Parking Enterprise Retained Earnings (PERE) are being proposed to help fund the FY 2003-04 Electrowave Operating Budget, at $1.1 million, or 47.09% of the total budget. These funds also serve as the required local match to the State funds allocated for the same purpose. PERE contributions to three previous budgets were respectively $1.24 million in 2002-03, $1.284 million in 2001- 02, and $1.05 million in FY 2000-01. At $2.336 million, the proposed FY 2003-04 Budget includes PERE, FOOT, County Transit Surtax, and Concurrency Mitigation/SoBe funds, plus revenues from fare collection and from insurance (one-time) funds received for a burned-down bus. In the last 18 months, the Miami Beach Transportation Management Association (MBTMA) and its sub- contractors have brought the shuttle vehicles back to full operation and efficiency. Ridership has increased almost 20% over last year's, and frequency of service is now 10 minutes. In addition, MBTMA has implemented several of the recommendations made by a "Shuttle Services Technical Assistance Study," prepared by CUTR pursuant to a City Commission request. Due to an obvious and mutually beneficial connection between the shuttle service and park-and-ride programs, the Administration supports PERE as the most appropriate source of local funds for shuttle operations, and recommends that $1.1 million in PERE be a ro riated and transferred to the FY 2003-04 Electrowave 0 eratin Bud et. Advisory Board Recommendation: I N/A Financial Information: Source of , Amount Account ..... Approved Funds: .,.1 $1.1 million 480-0050-000491 D 2 Parking Enterpr. Retained Earnings 3 4- . Finance Dept. Total $1.1 million Ci Clerk's Office Le islative Trackin Amelia Johnson Si stant City Manager City Manager Agenda Item Date 1(1)1 f-Ie- .3 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez~ W-- City Manager \ ('/ 0 A RESOLUTIO OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION AND TRANSFER OF $1.1 MILLION FROM PARKING ENTERPRISE RETAINED EARNINGS TO THE FY 2003-04 ELECTROWAVE OPERATING BUDGET; SUBJECT TO THE DETERMINATION THAT THE PARKING ENTERPRISE FUND HAS MET ALL DEBT COVENANTS FOR FISCAL YEAR 2002-03. Date: September 18, 2003 To: Subject: ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS For the last three fiscal years, the City Commission has authorized the appropriation of Parking Enterprise Retained Earnings (PERE) as the City contribution and matching funds to the State and Federal Congestion Mitigation and Air Quality (CMAQ) funds allocated to the annual Electrowave (EW) operating budget. Such PERE contributions have been as follows: FY 2000-01 at $1.05 million FY 2001-02 at $1.284 million FY 2002-03 at $1.24 million FY 2003-04 contribution is proposed at $1.1 million The following local and outside sources have been identified to help fund the proposed FY 2003-04 EW Operating Budget: Parking Enterprise Retained Earnings County Transit Surtax Funds FY 2002-03 FDOT funds to improve Washington Route FY 2003-04 FDOT funds to improve Washington Route Concurrency Mitigation Program fundslSouth Beach Projected fare collection revenues Insurance revenue 1 burned-down bus $1,100,000 47.09 % of total budget 400,000 New recurring source 165,000 carry-over funds 65,000 new funds,50/50 match 443,800 Recurring source 78,000 Recurring source 84,200 * One-time source $2,336,000 * Of these one-time funds, $47,000 will be utilized to scrape and repaint the 10 existing shuttle buses with a uniform, transit-oriented design. September 18, 2003 Commission Memorandum Parking Enterprise Retained Earnings for EW Budget Page 2 Since 1998, when the shuttle service began operations, the City has been aware of the limited number of outside sources available to help fund local transit services. In addition, such outside funds are shrinking each year due to competition from six (6) other Miami- Dade municipalities which have implemented their local shuttle projects, based on the success of our own local circulator model. Beyond the ever dwindling FDOT funds, the only new and recurring source is the voter- approved County Transit Surtax fund. The Electrowave share of these funds is approximately $400,000 a year. County Ordinance No. 02-116 clearly states that "a City shall apply its portion of the Municipal Share of the Transit Surtax funds to supplement, not replace, the City's funding support to its own transportation projects." Reasons to Continue the Shuttle Service: Resolution No. 2003-25218, dated May 21, 2003, authorized the shuttle service to continue, due to the following: . The shuttle ridership increased by 19.39% over the previous year (please refer to attached by-month comparison); . The ten-bus fleet has been 100% operational. . The enthusiastic endorsement to continue Electrowave services provided in a Commission-requested Shuttle Services Technical Assistance Study, which was prepared and presented by Mr. Joel Volinski of the Center for Urban Transportation Research (CUTR), University of South Florida. . Per the same study, the local circulator shuttle service is valued, appreciated and highly utilized by the South Beach community. Status of implementation of the Study recommendations follows: . The Collins Avenue Route was eliminated on February 19, 2003. The two buses previously utilized by the Collins Route were redeployed to the Washington Route. This route service enhancement has helped increase ridership by 19.39% over last fiscal year and reduce frequency of service to 10 minutes. . The Miami Beach Transportation Management Association (MBTMA) has begun to install the new signage kiosksldirectional service map at each shuttle stop location. And an enhanced marketing effort with newspaper publications and PSA announcements will soon be noticed by the community. . Developed a new shuttle service brochure, which colors and style will be utilized to repaint the existing shuttle buses with a more transit-oriented design. . MBTMA Staff made personal visits to and distributed new shuttle brochures to all Miami Beach hotels, businesses, community service organizations, the Chamber of Commerce, Convention Center, and Visitors Bureau. September 18, 2003 Commission Memorandum Parking Enterprise Retained Earnings for EW Budget Page 3 . Following City Commission direction, the Administration met five times with the County administrative staff, both in 2002 and 2003, with the following requests regarding the Electrowave Project: 1. That the County assume full responsibility over the Project. The request was denied by the County due to the fact that the "People's Transportation Plan" adopted by Miami-Dade voters in 2002 made no provisions for the County to take over local circulator systems. 2. That the County submit a proposal to administer, manage, maintain and operate the shuttle service for the City; and, 3. In addition, consider merging the County's Route W with the City's Washington Route service. Such a merger would further enhance mobility options by providing a comprehensive transit service to the entire South Beach community. As to Items 2. and 3., above, on September 2,2003, the County submitted three draft proposals that would cost the City at least $1 million more a year than the amount being proposed for the FY 2003-04 Electrowave Budget, shown below. Therefore, contracting with MBTMA remains the best option available to the City, at least for the time being. . In October 2003, the Administration will request Commission permission to issue Request for Proposals (RFP) for the purchase of diesel mini-buses, utilizing Federal Transit Administration (FT A) funds which are presently available to the City. . A contest will be undertaken early in the new fiscal year, in search for a transit-oriented name for the shuttle service. Based on the above the Administration supports the continuation of Electrowave services and partial funding in the amount of $1.1 million from PERE. As clearly stated in the Executive Summary of the Shuttle Services Technical Assistance Study, "the City should embrace the EW program and its successor service, whatever its name will be. It is the most successful local transit circulator system among dozens in Florida, and it is an important factor in making Miami Beach the unique community it is. It would be helpful if all officials recognize the role it plays in Miami Beach's continuing redevelopment, and take credit for a wonderful local service appreciated by thousands of its own residents, as well as visitors." The Administration recommends approval of the Resolution. JMG/RM/CC/PW IFBI AJ Attachments: Proposed FY 2003-04 EW Operating BudgeUFunding Sources FYs 2003 and 2004 Shuttle Ridership Comparison F:\WORKI$TRAIAMELIAIELECTWVEIPEREforEW.memo.doc PROPOSED FY 2003-04 ELECTROWAVE OPERATING BUDGET Adopted FY 2002-03 Proposed FY 2002-03 Projected FY 2003-04 1 Present and Proposed Funding Sources Fund Sources Revenues Fund Sources 1a. 1b. Parking Enterprise Retained Earnings 1,240,000 1,240,000 1,100,000 Congo Mitigation & Air Quality Funds for Collins Route 300,000 118,000 New EW share of Transit Surtax Funds 360,000 400,000 FY 2003 FDOT Service Devel. FundslWashington Rt. 350,000 205,400 165,000 FY 2004 FDOT Service Devel. FundslWashington Rt. 65,000 Concurrency Mitigation Funds/South Beach TCMA 300,000 300,000 443,800 Payment from Insurance Co. for burned-down bus 84,200 Projected Fare Collection Revenues 100,000 75,000 78,000 Projected On-Board Advertising Revenues "" 20,000 8,000 $ 2,310,000 $ 2,306,400 $ 2,336,000 1.a New influx of $360,000 in Surtax funds will make up for FY 2002-03 fund shortfall, as follows: " CMAQ: Collins Rt. discontinued 2/03. City loses most of the$300,000 dedicated to Collins Route " Collins' 2 buses are redeployed to the Washington Route = no net savings " FDOT: Washington Rt. will recover only a portion of $350,000 this FY (3 buses at 50150 split wICity). " Reduced fare revenues: wltransit surtax initiative approval, all seniors ride for free, regardless of income. "" Less advertising revenues: New Homeland Security rules probihit blanking out bus windows wlads 1.b "Recurring $400,000 a year from transit surtax funds " A one time $84,276 check received from insurance to cover a burned-down bus. "" New Homeland Security rules prohibit blanking out bus windows/no advertising on back window. FY 2002-03 Projected Proposed 2 Present and Proposed EW Operating Budgets Budget 2002-03 Costs 2003-04 Budget 154 Uniform for Shuttle Drivers 6,000 6,000 6,000 312 Professional Services" 82,000 65,000 65,000 314 Electricity 35,000 35,000 35,000 315 Propane & Diesel Fuel 80,000 65,000 70,000 316 Telephone 100 343 First Transit (formerly Red Top Transportation) 1,124,900 1,100,000 1,120,000 345 EW General Management Contract w/MBTMA 160,000 160,000 165,000 349 ATTI (formerly ETVI) fleet maintenance 690,000 670,000 676,000 362 Public I nvolvementlMarketing 40,000 40,000 50,000 371 Insurance for Shuttle Vehicles 92,000 100,000 100,000 503 FM Internal Services WaterlSewer 2,000 2,000 $ 2,310,000 $ 2,243,000 $ 2,289,000 One time cost to Scrape/Repaint 10 Shuttle Buses 47,000 $ 2,336,000 " # 312 funds misc. operating & smaller contracts, such as for retrieval, counting & deposit of fare revenues FY0304EWBdgl ELECTROWAVE Passenger Counts BY MONTHlYEAR COMPARISON Fiscal Year 2001/02 & Fiscal Year 2002/03 MONTH FISCAL YEAR 2001102 FISCAL YEAR 2002103 OCTOBER 29,990 48,448 NOVEMBER 32,946 48,037 DECEMBER 34,668 51,378 JANUARY 37,633 46,591 FEBRUARY 40,504 51,922 MARCH 46,450 58,798 APRIL 42,405 57,338 MAY 47,255 56,684 JUNE 45,448 53,705 JULY 43,962 61,294 AUGUST 46,155 57,203 SEPTEMBER TOTAL 447,416 591,398 .Consideration needs to be taken with regard to the impact of the 9/11/01 events on the community, businesses, hotels, etc. -November 2002 - ALL SENIOR CITIZENS RIDE FREE!! (65 & older) January 20-26, 2003 -> unseasonably cold weather led to decrease in passenger counts COLLINS ROUTE DISCONTINUED ON FEBRUARY 20, 2003 @ 1AM May 23 -29, 2003 -> heavy rains June 2003 -> heavy rains