2001-24623 RESO
RESOLUTION NO. 2001-24623
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION AND
TRANSFER OF $1,283,936 FROM PARKING ENTERPRISE RETAINED
EARNINGS TO THE FY 2001-02 ELECTROWAVE OPERATING BUDGET;
SUBJECT TO THE DETERMINATION THAT THE PARKING ENTERPRISE FUND
HAS MET ALL DEBT COVENANTS FOR FISCAL YEAR 2000-01.
WHEREAS, at the June 18, 2001 meeting, the Mayor and City Commission expressed
willingness to give the City and the Miami Beach Transportation Management Association
(MBTMA) the opportunity for one additional year of funding, either to bring the Electrowave
Shuttle Service back to its original level of effectiveness and success, or have the project
terminated by year end; and
WHEREAS, FY 2001-02 will be a test year for the Electrowave Shuttle Project (the
Project), which will introduce a completely outsourced administration and general
management system, with MBTMA as the proposed City Contractor for the services; and
WHEREAS, at $1 ,283,936.00, the proposed Project budget is 22.28% higher than last
year's due to some main factors, being the introduction of union wages for shuttle drivers,
dispatchers, and supervisors, as required by the Federal Transit Administration (FTA; the
hiring of an outside firm to perform shuttle/battery maintenance services; the outsourcing
of Project administration/general management services to MBTMA; and
WHEREAS, other identified sources will fund 40.4% of the FY 2001-02 Electrowave
Operating Budget, while Parking Enterprise Retained Earnings are being proposed to
provide the larger share, at 59.6%; and
WHEREAS, the Parking Enterprise Fund is the appropriate source of recurring 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 $1,283,936 from Parking
Enterprise Retained Earningsto the FY 2001-02 Electrowave Operating Budget; subject
to the determination that the Parking Enterprise Fund has met all debt covenants for Fiscal
Year 2000-01.
PASSED AND APPROVED this the
21st day of
ATTEST:
~d' r~
CITY CLERK
MAYOR
September ,2001.
~~
APPROVED AS TO
FORM & LANGUAGE
a FOR EXECUTION
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IJ ~ Dale
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
COMMISSION MEMORANDUM
To:
From:
Mayor Neisen O. Kasdin and
Members of the City Commission
J~
Date: September 21 , 2001
Jorge M. Gonzalez
City Manager
Subject:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION AND
TRANSFER OF $1,283,936 FROM PARKING ENTERPRISE RETAINED
EARNINGS TO THE FY 2001-02 ELECTROWAVE OPERATING BUDGET;
SUBJECT TO THE DETERMINATION THAT THE PARKING ENTERPRISE
FUND HAS MET ALL DEBT COVENANTS FOR FISCAL YEAR 2000-01.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
At the July 18, 2001 meeting, the City Commission was informed that the Electrowave
Shuttle Service was facing considerable operating challenges during the last twelve
months, which were detrimental to the quality and effectiveness of the services delivered.
In addition the Administration was recommending that an Immediate Action Plan be set in
motion in an attempt to correct the problems and bring the service back to an optimum
level, within a period of six month, beginning August 2001. At that same meeting, the
Mayor and City Commission expressed willingness to give the City and the Miami Beach
Transportation Management Association (MBTMA) the opportunity for one additional year
of funding, either to bring the shuttle service back to its original level of effectiveness and
success, or have the project terminated by year end.
For all the above reasons, FY 2001-02 will be a test year for the Electrowave Shuttle
Service, which, as proposed by the Administration, will introduce a completely outsourced
administration and general management for the project, with MBTMA as the proposed City
Contractor. The City will hold MBTMA 100% accountable and liable for the success of this
local circulator transit project, which will require a larger budget than in previous years, at
$2,153,936, for the following reasons:
1. Due to the fact that the City purchases electric vehicles, batteries, and equipment
utilizing Federal Transit Administration (FT A) Section 5309 funds, the City's transit
operator (Red Top Transportation) will be required to provide Union wages for their
drivers, dispatchers and supervisors working with the shuttle service. This will mean
a 5% increase in the variable category of the Red Top budgetlElectrowave, for a total
contract cost of $1 ,038,992 (as compared to $990,955 in 2000-01).
AGENDA ITEM
DATE
R'1T
9-l/-0/
September 21,2001
Commission Memorandum
PERE funds for Electrowave
Page 2
2. The Electric Transit Vehicle Institute (ETVI), presently under a two-month interim
agreement with the City for maintenance of shuttle vehicles/batteries/equipment, is
proposed to be hired as the sole provider of mechanical maintenance services in FY
2001-02 at $688,844 (as compared to Fleet Management's $542,416 in 2000-01).
3. The Project Administration category is proposed at $144,250 (as compared to $99,250
last year) so that MBTMA is able to hire an additional employee to help with the added
general management duties in 2001-02.
4. A propane and diesel fuel category will be created at $33,000, since this item was
previously covered by the Fleet ManagementJElectrowave budget.
5. The Insurance category will rise from $87,000 to $91,350 due to the addition of one
electric/hybrid vehicle to the fleet.
6. The Miscellaneous Items category will rise from the present $65,000 to $80,000 to
provide for unforeseen costs that may arise due to the changes being implemented.
The Administration proposes that Parking Enterprise Retained Earnings assume a larger
role than last year's (at $1.05 million) in funding the FY 2001-02 Electrowave Operating
Budget, which has identified the following funding sources:
Parking Enterprise Retained Earnings
Congestion Mitigation & Air Quality (CMAQ)/Collins Route
New FDOT contribution to improve Washington Route
New FDOT funds for Collins Route
Concurrency Mitigation Program
Projected fare collection revenues
Projected on-board advertisement revenues
$1,283,936
300,000
100,000
150,000
150,000
150,000
20.000
$2,153,936
59.6% of total budget
80/20 rate
50/50 rate
50/50 rate
Approximately one year from now, when the City has attained an official status of "Governor's
Apportionment recipienf' of Federal funds from FTA, two additional sources of operating funds
will become available to the Electrowave project, bringing $400,000 to $500,000 in annual
recurring funds. At the same time, the CMAQ program funds may no longer be available, due
to the fact that Miami-Dade County has attained Federal air quality standards. Based on the
above-mentioned facts, the City needs to accept and assume its role of major contributor, if
the Electrowave Shuttle is to provide the quality and reliability of service required to fulfill the
park-and-ride/circulator needs of South Beach residents and patrons; and, in addition, ensure
that redevelopment activity is consistent with the goals and objectives of the transportation
concurrency management area, known as the South Beach TCMA.
The Administration recommends approval of the Resolution.
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