2009-27207 ResoRESOLUTION NO. 2009-27207
A RESOLUTION OF MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING THE ANNUAL FISCAL YEAR (FY) 2009/10
APPROPRIATION FOR THE CAPITAL RENEWAL AND REPLACEMENT FUND
BUDGET, IN THE AMOUNT OF $2,026,707.
WHEREAS, the Mayor and Commission adopted Resolution No. 2004-25697 on September 28,
2004, establishing a capital renewal and replacement reserve to provide a dedicated source of funding
for capital renewal and replacement projects that extend the useful life of General Fund assets; and;
WHEREAS, the Mayorand Commission adopted Resolution No. 2005-25832 on February23,
2005, amending Resolution No.2004-25697, to provide for more stringent criteria for allowable uses of
the Fund; and
WHEREAS, the City currently maintains a vast number and variety of buildings, structures and
facilities, hundreds of acres of recreational and open space, significant public works, and hundreds of
miles of streets, sidewalks and alleys; and
WHEREAS, as a result of the City's ongoing Capital Improvement Program, and the Miami-
Dade County General Obligation Bond Program, there has been a significant additional increase in
capital renewal and replacement needs; and
WHEREAS, annual capital renewal and replacement needs compete for General Fund
resources with other needs, such as public safety, with the result that capital renewal and replacement
needs may be deferred; and
WHEREAS, on September 10, 2009, the Mayor and City Commission tentatively adopted the
proposed millage rate of 5.6555 mills, which included 0.1083 mills dedicated for capital renewal and
replacement; and
WHEREAS, the City Manager's proposed operating Budget sets forth the recommendation for
the FY 2009/10 Capital Renewal and Replacement Fund appropriation amounts for specific projects.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission hereby adopts the FY
2009/10 project-specific appropriations for the Capital Renewal and Replacement Fund Budget, in the
amount of $2,026,707, as more specifically provided in Attachment "A" hereto.
PASSED and ADOPTED this 24th day of September, 2009.
ATTEST:
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" W t IN ~ l~L~'~
City Clerk
Robert Parcher
M or
Matti Herrera Bower
APPROVED AS TO
FORM & LANGUAGE
~ FOR E~CECUTION
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_____
Date
COMMISSION ITEM SUMMARY
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A resolution of,the Mayor and City Commission of The City of Miami Beach, Florida, adopting the Fiscal
Year (FY) 2009110 budget for the Capital Renewal and Replacement Fund, in the amount of $2,026,707.
(ey Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating
Ensure well-maintained facilities
Ensure well-maintained infrastructure
Supporting Data (Surveys, Environmental Scan, etc.): The City has improved with 72% of facilities on
the Facility Cost Index ratings scoring below 0.15 (good or better) during FY 2007/08 as compared to 35%
in FY 2005/06. This is in part due to the fact that as of FY 2004/05 the City implemented a dedicated
General Fund millage for renewal and replacement to ensure these maintenance needs are addressed.
Between FY 2004/05 and FY 2008/09 the City allocated over $12 million in renewal and replacement
project funding
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Shall the Mayor and City Commission adopt the attached resolution which adopts the FY 2009110 budget
for the Capital Renewal and Replacement Fund?
Item Summary/Recommenaation:
In FY 2004/05, the City established a capital renewal and replacement reserve to provide a dedicated
source of funding for capital renewal and replacement projects that extend the useful life of General Fund
assets and adopted stringent criteria for allowable uses of the Fund. These criteria require that the
Commission approve specific projects to be funded each year.
On September 10, 2009, the Mayor and City Commission tentatively adopted the proposed millage rate of
5.6555 mills, which included 0.1083 mills dedicated for capital renewal and replacement; and providing
$2,026,707 for Capital Renewal and Replacement needs.
The attached Resolution specifies the FY 2009/10 project appropriations for the General Fund Renewal
and Replacement.
Advisory Board Recommenaat~on:
In 2004, the Budget Advisory Committee recommended the implementation of a dedicated millage for
General Fund renewal and replacement.
Financial Information:
Source of Amount Account
Fund 1 $2,026,707 General Fund millage of 0.1083 dedicated for Capital
Renewal and Re lacement
2
Total
Financial Impact Summary:
Cit Clerk's Office Le islative Trackin
Si n-Offs:
Department Director Assistant City Manager City Manager
~~ ~ ~,~ ~ ~ ~'"'~ ~ AGENDA #TEM ~v
~ DATE
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 24, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING THE ANNUAL FISCAL YEAR (FY)
2009/10 APPROPRIATION FOR THE CAPITAL RENEWAL AND
REPLACEMENT FUND BUDGET IN THE AMOUNT OF $2,026,707.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The City currently maintains a vast number and variety of buildings, structures and facilities,
hundreds of acres of recreational and open space, significant public art pieces, and
hundreds of miles of streets, sidewalks and alleys. It is important to ensure that funding
levels provide for major capital renewal and replacement projects and these projects are not
deferred many years beyond their useful life. Further, as a result of the ongoing capital
improvement program, in addition to funding from Miami-Dade County's General Obligation
Bond Program, there has been a significant increase in maintenance needs.
In FY 2004/05 the City established a separate reserve with a dedicated source of funding to
be used exclusively for facility renewal and replacement of capital items. Appropriations
from the fund are reviewed and approved each year by the City Commission as part of the
budget process, and are used exclusively for those capital expenditures that help to extend
or replace the useful life of our facilities.
In FY 2004/05 the dedicated millage for Renewal and Replacement was established at
0.126. Subsequent years were established at the following rates: FY 2005/06 - 0.182 mills;
FY 2006/07 - 0.182 mills; FY 2007/08 - 0.1382 mills and FY 2008/09 - 0.1083 mills. The FY
2009/10 proposed millage for Renewal and Replacement is 0.1083 mills, which will provide
$2,026,707 for renewal and replacement funding in the General Fund in its sixth year since
inception.
The City has improved with 72°/a of facilities on the Facility Cost Index ratings scoring below
0.15 (good or better) during FY 2007/08 as compared to 35% in FY 2005/06. This is in part
due to the fact that as of FY 2004/05 the City implemented a dedicated General Fund
millage for renewal and replacement to ensure these maintenance needs are addressed.
Between FY 2004/05 and FY 2008/09 the City allocated over $12 million in renewal and
replacement project funding.
CONCLUSION
The City Commission should adopt the annual FY 2009/10 project-specific appropriations for
the Capital Renewal and Replacement Fund Budget in the amount of $2,026,707, pursuant
to the attached Resolution.
JMG:KGB:JC
ATTACHMENT A
City of Miami Beach
Fiscal Year 2009110 General Fund Capital Renewal and Replacement Projects
LIFE SAFETY HAZARD CATEGORY
Asset Project Over 25k
Fire Station 3 Fire Alarm System Upgrade. 42,015
The building fire alarm system is aged and coverage
is minimal and doesn't meet today's NFPA
standards. The existing exit signs are not code
compliant. Upgrading to new LED battery unit type
signs is required. Wiring of exit signs shall be as
re uired b the Life Electrical Safe Code.
Fire Station 3 Interior and Overhead Door Replacement. 145,225
The interior hollow metal and hollow wood core
doors are aged, not fire rated, beyond rated life
expectancy, scratched, utilizing non compliant
hardware and, in general, not working properly. The
exterior overhead, vehicle bay, doors do not close
ro erl .
Fire Station 1 Interior and Exterior Door Replacement. 280,351
The interior hollow metal and hollow wood core
doors are aged, not fire rated, beyond rated life
expectancy, scratched, utilizing non compliant
hardware and, in general, not working properly. The
exterior overhead, vehicle bay, doors are aged and
damaged. The hardware is worn and some doors do
not close properly. The metal rails are also showing
si ns of a e.
Garden Center Roof Replacement. 45,438
The wood framed roof system spanning between the
buildings creating a covered walkway is damaged by
water and severely rotting in areas that are exposed.
The weight of the mechanical equipment above
a ears to be causin the wood roof to sa .
City Wide Beach Showers Renovation 47,286
Beach The current plumbing installation lacks proper
Showers drainage causing a safety hazard. Project will
include replacement of existing concrete shower
poles with stainless steel units along with installation
of trench drains and a sand interceptor. Total of
showers to be re laced is 12.
City of Miami Beach
Fiscal Year 2009110 General Fund Ca ital Renewal and Re lacement Pro'ects Continued
NOT LIFE SAFETY HAZARD BUT BEYOND USEFUL LIFE CATEGOR Y
Asset Project Over 25k
Scott Rakow Roof Replacement 560,000
Roof has been patched and repaired several times
throughout the years and still has leaks. Replacement
of entire roof is necessa
South Shore Roof Replacement 67,000
Community Roof has been patched and repaired several times
Center throughout the years and still has leaks. Replacement
of entire roof is necessa
City Hall Elevator Renovation 175,000
Southeast Elevator Passenger Elevator is aged and
in deteriorated condition. Replacement necessary to
correct current fire violations and ADA compliancy.
Crespi Park Sanitary Sewage Line Replacement 8~ Sanitary 73,210
Building Waste System Upgrade
The sanitary sewage distribution piping is hubbed
cast iron that is aged, prone to blockages and over
flows, it has also exceeded it's expected BOMA life.
Sanitary Waste system average useful service life
has been exceeded. The building includes an
extensive sanitary waste system, of cast iron piping,
with ravi dischar a to the munici al s stem.
Fire Station 1 Ceiling Replacement 48,069
The painted sheetrock or plaster ceiling finishes in
several areas showed signs of wear, age or damage.
The suspended acoustical ceiling systems in the
buildin area ed, soiled and dama ed.
Fire Station 3 Ceiling Replacement 41,295
The painted sheetrock or plaster ceiling finishes in
several areas showed signs of wear, age or damage.
The suspended acoustical ceiling systems in the
buildin area ed, soiled and dama ed.
Police Station Ceiling Replacement 113,550
The acoustical ceiling tiles in some areas of the
building are stained, worn, or damaged. Some
examples of areas noted include the following: -Main
floor lobby; -Third floor offices and corridors; -Fourth
floor corridors; and, -Fifth floor office area.
Fire Station 3 Restroom Renovation 66,067
The ceramic the on the bathroom walls is aged,
stained and generally deteriorated. The restroom
partitions are deteriorated and have surpassed their
ex ected useful life.
Police Station Restroom Renovation 56,466
The ceramic wall tiles in the bathrooms are aged,
stained and generally deteriorated. Tiles are broken
and stained in areas where toilets and urinals have
been moved for handica accessibilit .
City of Miami Beach
Fiscal Year 2009/10 General Fund Capital Renewal and Replacement Projects Continued
Asset Project Over 25k
Fire Station 1 Restroom Renovation 93,668
The ceramic the on the bathroom walls is aged,
stained and generally deteriorated. The restroom
partitions are deteriorated and have surpassed their
ex ected useful life.
777 Building Restroom Renovation 78,206
The ceramic floor tiles in the washrooms and
localized areas of the corridors are stained, chipped
and generally deteriorated. The restroom partitions
are deteriorated and have surpassed their expected
useful life.
South Shore Exhaust Fan & Chiller Pipe Replacement 84,576
Community The HVAC chilled water distribution piping is original
Center to the system, is worn, and shows evidence of
corrosion and previous leaks along the main runs and
fittings. Replacement of affected sections is
recommended to reduce required maintenance of the
distribution of chilled water to the building air
handlers. The exhaust fans for the restrooms, and
general ventilation are original to the building and are
over 30 years old, are worn, and do not provide
sufficient airflows as required by IMC Section 403.3.
Replacement is required to meet the ventilation
needs of the buildin .
SUBTOTAL 2,017,422
CONTINGENCY 9,285
TOTAL 2,026,707