2000-24135 RESO
RESOLUTION NO. 2000-24135
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
APPROPRIATION AND TRANSFER OF $1.050 MILLION FROM PARKING
ENTERPRISE RETAINED EARNINGS TO THE ELECTROWAVE
OPERATING BUDGET; SUBJECT TO THE DETERMINATION THAT THE
PARKING ENTERPRISE FUND HAS MET ALL DEBT COVENANTS FOR
FISCAL YEAR 1999-2000.
WHEREAS, the Electrowave Shuttle Service has been in operation since January 1998, and
has carried over 3 million passengers in its 32 months of service; and
WHEREAS, in addition to the existing Washington Avenue route, the City wishes to
provide a new route, serving Collins Avenue, from 16th Street to 23rd Street; the Cultural Campus;
the Garden Center; the Holocaust Memorial; and the Miami Beach Convention Center; and
WHEREAS, the proposed Fiscal Year 2000-01 Electrowave Operating Budget provides
funding for both routes, which will operate 11 vehicles; 9 in route service and 2 in rotation service,
for a total operating cost not to exceed $1,925,993; and
WHEREAS, the City is being asked to contribute $1.050 million in Miami Beach Parking
Enterprise Retained Earnings, or 54,52% of the $1,925,993 proposed Electrowave Operating Budget;
and
WHEREAS, the additional 45.48% in funds will come from new contributions: $139,993
in Florida Department of Transportation funds; $300,000 in Congestion Mitigation and Air Quality
funds; $50,000 in Concurrency Mitigation funds; $250,000 in projected fare collection revenues;
$20,000 in projected on-board advertising revenues; and approximately $116,000 in
FDOT/Electrowave budget carry-over funds; and
WHEREAS, in previous years, the City contribution to the Electrowave Program came from
the Resort Tax Fund; and
WHEREAS, in FY 2000-01, the proposed use of Parking Enterprise Retained Earnings is
subject to the determination that the Parking Enterprise Fund has met all Bond Covenants for Fiscal
Year 1999-2000, and until such time a surcharge on parking can be implemented to become the
Electrowave's main source of operating dollars; and
WHEREAS, the Administration believes this to be an appropriate use of these funds,
emphasizing that parking and transportation must be approached holistically to serve the City, its
residents, businesses and visitors.
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 appropriate and transfer $1.050 million from Parking Enterprise Retained
Earnings to the Electrowave operating budget; subject to the determination that the Parking
Enterprise Fund has met all debt covenants for fiscal year 1999-2000.
PASSED AND APPROVED this the 18th day of October
,2000.
WJ1
MAYOR
ATTEST:
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CITY CLERK
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APPROVED AS m
FORM & LANGuAGE
& FOR EXECUTION
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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COMMISSION MEMORANDUM NO.
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TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: October 18, 2000
FROM:
Jorge M. Gonzalez \~
City Manager (J \)
SUBJECT:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
APPROPRIATION AND TRANSFER OF $1.050 MILLION FROM PARKING
ENTERPRISE RETAINED EARNINGS TO THE ELECTROWAVE
OPERATING BUDGET; SUBJECT TO THE DETERMINATION THAT THE
PARKING ENTERPRISE FUND HAS MET ALL DEBT COVENANTS FOR
FISCAL YEAR 1999-2000.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The Electrowave Circulator Shuttle Service has been in operation for 32 months (since January 20,
1998), and has become an undeniable Miami Beach success story, operating a short Washington
Avenue route and carrying over 3 million passengers to date. Approximately 20% of these
passengers either leave their cars at home or in public garages/lots and use the park-and-ride
program. A fully functional and effective local circulator is essential to urban communities such as
Miami Beach, for the following reasons:
o It allows the City to meet concurrency requirements, As a matter of fact, the City has
recently adopted a Transportation Concurrency Management Area (TCMA) method to
achieve concurrency, which largely depends on the availability of public transit services.
o It helps reduce traffic impacts on the City's limited roadway network which, in places, is
already at capacity or beyond capacity.
o It allows for continued economic viability and quality redevelopment; and
o It is an essential component of a comprehensive parking and transportation system,
No transit system worldwide is self supporting (excepting the San Francisco Trolley and the Tokyo
subway system). A fully functional and effective local circulator service is expensive to operate and
requires full commitment on the City's part to its continued operations and funding. Small,
independent circulator services such as the Electrowave do not have either the infrastructure and fleet
size needed to generate substantial recurring revenues, or the outside funding opportunities that full-
scale transit agencies command, due to the extent of the services provided.
AGENDA ITEM
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DATE
As well known throughout the transit community, capital funds for the purchase of buses and bus-
related equipment/facilities are available on a continued basis. Operating funds, however, be it
State or Federal sources, are available only for the first three (3) years of operations of an
individual route service. This means that, from January 20, 2001 (the 4th anniversary of the
Electrowave service), the City has to have the will to create and provide the recurring funds
needed to operate the Electrowave's current route service. Federal and State funds will be
available, through arumal application, for the first three (3) years of operations of the new Collins
Avenue Route service, the City proposes to implement as of November 2000. We offer the
following as examples of the statements made above:
1. As of today, $2 million in Federal Transit Administration (FTA) Section 3 capital funds
are earmarked for "bus and bus-related facilities" for the Electrowave, and an additional $2,8
million is forthcoming. These funds have yet to be appropriated by the City, because, the
more buses we buy, the larger our operating costs become, Recently, $866,858 in FTA funds
were utilized to purchase and outfit four new shuttle vehicles for the Collins Avenue service,
which is proposed to begin in November 2000. In addition, $50,000 in FTA funds are being
utilized to retrofit a mechanical bay into an auxiliary charging facility for the shuttle
batteries.
2. For the first three years of Electrowave route service, the Florida Department of
Transportation (FDOT) has been the City's main funding partner ($2 million), reimbursing
the City for over $1.5 million of the operating costs through June 2000. For FY 2000-01,
FDOT's new contribution is $139,993 plus a carry-over amount from previous budget
years, estimated at $116,000. There will be no FDOT carry-over funds in FY 2001-02.
3. The only Federal source of operating funds is the Congestion Mitigation and Air Quality
(CMAQ) Program, which helps fund the first-year of operations of a NEW route only.
The Electrowave has been granted $300,000 in CMAQ funds to operate the new Collins
Avenue route in FY 2000-01.
4. The only recurring funds that the Electrowave Project has been able to generate so far are
revenues from the 25-cent fare collection, amounting to approximately $210,000, and
approximately $9,000 from on-bus advertisement. These funds are not expected to increase
substantially through the years, unless the fare itself is increased.
In previous years, the City contribution to the Electrowave Program came from the Resort Tax Fund.
For FY 2000-01, it is proposed that funding in the amount of$I,050,000 from the Parking Enterprise
Retained Earnings be appropriated, subject to the determination that the Parking Enterprise Fund has
met all Bond Covenants for Fiscal Year 1999-2000. The Administration believes this to be an
appropriate use of these funds, since automobiles cause congestion on City streets, and parking and
transportation must be approached holistically to serve the City, its residents, businesses and visitors.
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