2016-29502 Reso RESOLUTION NO. 2016-29502
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ENDORSING PRELIMINARY
PREFERRED FUNDING APPROACHES FOR THE MIAMI BEACH
LIGHT RAIL/MODERN STREETCAR PROJECT.
WHEREAS, on December 9, 2015, the Mayor and City Commission adopted
Resolution No. 2015-29236, approving an Agreement with Kimley-Horn Associates, Inc., for
preparation of an environmental analysis for the Miami Beach light rail/modern streetcar project
or"The Project"; and
WHEREAS, Phase 1 of The Project is in the vicinity of the 5th Street from Alton Road
to Washington Avenue, and in the vicinity of Washington Avenue from 5th Street to the Miami
Beach Convention Center; and
WHEREAS, Phase 2 of The Project alignment in the vicinity of Alton Road and 17th
Street; and
WHEREAS, The Kimley-Horn team scope of work for the Miami Beach Light
Rail/Modern Streetcar Project includes development of the project funding plan for the City
Commission's consideration; and
WHEREAS, capital costs for the "Project" are preliminarily estimated at $388 million
(including costs for Phase 1, Phase 2, and the Vehicle Systems Maintenance and Operating
Facility), and annual operating costs between $14 million and $16 million per year for a term
that could potentially extend for up to 35 years; and
WHEREAS, raising streets to meet resiliency standards is estimated to cost an
additional $25 million and is proposed to be funded from the $14 million in Storm water bond
proceeds in 2018 and $11 million in 2014 Miami-Dade County Interlocal agreement funds to be
received in 2017; and
WHEREAS, the City is currently in the initial stages of selecting a developer to design,
build, finance, operate, and maintain the Project, pursuant to a public-private partnership ("P3")
approach under Fla. Stat. 255.065, with the goal of entering into an interim agreement with a
recommended firm by September, 2016, to advance the preliminary development of the Project
and establish the process for negotiating a Comprehensive Agreement for the delivery of the
Project; and
WHEREAS, once the City enters into a Comprehensive Agreement with the
concessionaire for the Project, it is anticipated that, during the construction of the Project and
prior to the commencement of revenue operations, the City will make certain Milestone
Payments to the concessionaire for the achievement of key Project deliverables (such as
delivery of the Vehicle Systems following the successful conclusion of applicable vehicle safety
certifications), and such Milestone Payments may cover more than 50 percent of the capital
costs of the Project, in an effort to lower overall Project financing costs; and
WHEREAS, there are advantages to having a portion of the Project capital costs paid
through "Availability Payments" to the concessionaire (i.e., payments for performance after the
completion of the Project), as Availability Payments are subject to the concessionaire satisfying
performance standards once the Project is in revenue operations and in full use by the public,
and accordingly, such a payment structure protects the City by transferring technology and
other capital risks to the developer until such time as the City receives the Project's intended
benefits; and
WHEREAS, all of the concessionaire's operating costs will be paid through Availability
Payments, as payments for operations are also subject to developer's compliance with the
specified performance standards that will be delineated in the Comprehensive Agreement; and
WHEREAS, it is anticipated that State and County funding sources will fund
approximately 50 percent of the Project capital costs through a combination of Milestone
Payments and Availability Payments; and
WHEREAS, the remaining approximately 50 percent of capital costs will be funded by
City funding sources through a combination of Milestone Payments and Availability Payments;
and
WHEREAS, as part of the City's ongoing discussions with the State and County with
respect to funding for the Project, the City is exploring the possibility of working with the State
and County to establish one-way tolls at entrances to the City of Miami Beach, with the
proceeds of such tolls used to support the maintenance of the toll roads, as well as to fund a
portion of the Project.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that Mayor and City Commission
of the City of Miami Beach, Florida, approve the following local funding sources, subject to
implementation requirements, and endorse the further evaluation of special assessment, tolling
and other options.
Capital Milestone Payments
Resort Tax 2% $10.0 million
City Center Parking Garage/Sops Surplus Funds* 13.0 million
City Center RDA Other Non-Tax Increment Funds* 8.0 million
Transportation Concurrency Management Funds 5.0 million
Total $36.0 million
*These funds are not tax increment funds and are not part of the interlocal agreement with
Miami Dade County, however, they must be used for portions of the project within the City
Center RDA
Availability Payments
Resort Tax 2% $1.5 million/year
Resort Tax 1% South Beach Quality of Life Funds 1.0 million/year
People's Transportation Tax (PTP) Funds 3.0 million/year
Ridership Fares and Advertising 5.0 million/year
Total , $10.5 million/year
Resiliency Program Funding
2018 Storm Water Bond Proceeds $14 million
2014 Miami-Dade County Inter local Agreement 11 million
Funds
Total $25 million
PASSED and ADOPTED this 13th day of July, 2016.
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