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LTC 116-2004 Presentation on maintenance funding made to joint GO Bond Oversight Committee and budget advisory committee CITY OF MIAMI BEACH Office of the City Manager Letter to Commission No. 116-2004 m To: From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez 0.. V"~ City Manager 0 0 PRESENTATION ON MAINTENANCE FUNDING MADE TO JOINT GENERAL OBLIGATION BOND OVERSIGHT COMMITTEE AND BUDGET ADVISORY COMMITTEE MEETING Date: May 11, 2004 Subject: On May 3,2004, the Administration made a presentation to a joint meeting of the General Obligation Bond Oversight Committee and the Budget Advisory Committee. The Chair of the Budget Advisory Committee, Deede Weithorn, had requested that the Administration make a presentation regarding the City's plans to fund maintenance on new capital projects. Ms. Weithorn's purpose was to identify the discussion of maintenance funding as an issue that the City should be actively addressing as projects are being implemented as opposed to after completion. Several departments worked together in creating the presentation, which outlined the various categories and amounts of infrastructure the City had in its inventory. The presentation then outlined how much infrastructure would be added as a result of the current Capital Improvement Program (CIP), such as another 19 miles of Stormwater Collection pipes, almost 3,000 palms and 7,000 trees, and 22 miles of curbing. An outline of the various maintenance needs, schedules, and existing costs was provided. The Committees were told that while the City currently budgets approximately $14.6 million for maintenance on an annual basis, more funding is needed to properly maintain all infrastructure at an appropriate level of service. Rising costs due to such factors as union contracts, personnel costs and the costs for contractual services lead to needing additional funding to continue maintaining the infrastructure at the current level of service. The Administration advised the Committees that the current maintenance performed on the City's infrastructure was not sufficient, and should be increased, which would also lead to a need for additional funding. The Administration outlined some steps that are being taken to identify how much more funding should be budgeted for maintenance, such as implementing a Pavement Management System and a Work Order Management System. The City is also hiring a consultant to study the City's buildings and structures, and their various components (such as HVAC systems, elevators, roofs, etc.) to determine their baseline conditions. The consultant will advise the City of any immediate maintenance needs, a schedule of maintenance for each building and component, and recommended replacement schedules. Letter to Commission May 11, 2004 Re: PRESENTATION on Maintenance Funding made to Joint General Obligation Bond Oversight Committee and Budget Advisory Committee Meeting Page 2 of 2 As new projects are being implemented, such as the improvements included in the Right- of-Way (ROW) Infrastructure Improvement Program, the projects are being designed with maintenance needs, costs and schedules in mind. These efforts should allow the City to determine more appropriate and realistic schedules and costs for maintenance in the future. Several mechanisms that had been suggested in the past for funding the additional maintenance costs were identified. They included the "Millage for Maintenance" concept presented during the Fiscal Year 2004 budget process that was not adopted, as well as a referendum for dedicated maintenance funding that was presented to the voters in the mid- 1990s but voted down. The Administration pointed out that the Redevelopment Areas (RDA) could now fund certain kinds of maintenance for structures within the RDA boundaries. Additionally, the expiration ofthe South Pointe RDA in Fiscal Year 2006 would generate a large infusion offunding into the City budget, part of which is being earmarked for maintenance funding. However, the Administration had more work to do to determine the necessary level of funding and what the right mechanisms to generate the funding would be. There was an active discussion by the Committee members regarding the presentation, current maintenance levels of service, current funding for maintenance and the City's plans for future funding and levels of service. Overall, it seemed that the Committees were pleased with the City's efforts at identifying the appropriate levels of service and funding for maintenance, both for current and future infrastructure. A copy of the presentation is attached. Attachme t ~Im c: xecutive Staff epartment Directors F:ICAPI\$aIlIKRISTINITH Correspondence\JMG LTC re Maintenance Funding Presentation.doc LTC NO. 116-2004 381 :J.:IO S.).l>.131~1 .UI::J I 0 : II W~ f] I A \i11 '10 a3^1303~J E e 0) c@ .... c:: cu E cu :> e Q. E - - o :t- - Q. o U .c u o cu ClQ .- E .0 - ~ .... o QJ .. = ....... eJ = .. ....... rIJ = ~ = ~ ~ = QJ eJ = = = QJ ....... = .. = ~ - QJ QJ ...... ;:: QJ = e ~ :. e ;:: QJ = e as u e C-' ...... = QJ~U ~.~ ~ ...... ~ :. ~ :. = = QJ ~ eIJ > .~ = 0 > .~ ~ ~ "t=< QJ = ...... ~ = ~ ......=~ = = = . ~ . ~ ".,.., =......~ ~~~ .~ = :E ~ o ~ o o N r0- M ~ ;:E N E 0 .... 0) 0 .... Q", .... c:: ~~ cu cd E o ~ CI) cu .~ CI) CI) :> > ~ ~ "'0 CI) ~ e < Cj .s ~ Q. 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