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2016-29501 Reso RESOLUTION NO. 2016-29501 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ENDORSING THE KEY ELEMENTS OF THE PREFERRED ALTERNATIVE FOR THE MIAMI BEACH LIGHT RAIL/MODERN STREETCAR PROJECT WHEREAS, in 2003, the Miami-Dade Metropolitan Planning Organization (MPO) prepared the Supplemental Draft Environmental Impact Statement ("SDEIS") that recommended a light rail transit/modern streetcar system powered by overhead catenary wires to connect the cities of Miami Beach and Miami via dedicated right-of-way along the MacArthur Causeway, and was further refined in 2004 on a project formerly referred to as the Baylink Project and now referred to as the Beach Corridor Transit Connection Project; and WHEREAS, in October 2013, pursuant to requests from the cities of Miami Beach and Miami, the MPO commenced a planning-level study entitled, The Beach Corridor Transit Connection Study (the "Study"), that refreshed and updated the decade-old Baylink study, in partnership with Miami-Dade Transit ("MDT"), Florida Department of Transportation ("FDOT"), the City of Miami Beach and the City of Miami; and WHEREAS, the Study was completed in June 2015 and reaffirmed the MacArthur Causeway as the preferred alignment to connect the City of Miami Beach and City of Miami, recommended an off-wire or "wireless" light rail transit/modern streetcar system for the portion within each urban area as the preferred vehicle technology, and further recommended the use of exclusive lanes for the transit vehicles in order to provide reliable service; and WHEREAS, Phase 1 of the recommended route alignment from the Study was from downtown Miami via the MacArthur Causeway, 5th Street, and Washington Avenue, directly to the Miami Beach Convention Center (the "Direct Connect Project"), and WHEREAS, the Study recommended a second phase of the Beach Corridor Transit Connection Project, that includes an alignment along Alton Road and 17th Street; and WHEREAS, on December 9, 2015, the City Commission adopted Resolution No. 2015- 29236, approving an Agreement with Kimley-Horn & Associates, Inc., whose team includes various sub-consultants, such as HDR Engineering, LTK Engineering, and Parsons Brinkerhoff (the "City's Consultants"), for preparation of an environmental review for the portion of the Beach Corridor Transit Connection located east of Biscayne Bay and defined as "the Miami Beach Light Rail/Modern Streetcar Project" (the "Project"); and WHEREAS, the draft environmental report for the Project is anticipated to be published in September 2016 which will include a Preliminary Preferred Alternative that will form the basis for public comment, and ultimately the adoption of a Locally Preferred Alternative for the final environmental report; and WHEREAS, at the June 8, 2016 Commission meeting, the Mayor and City Commission reviewed certain key proposed elements of the Project, including options with respect to the Project alignment, the proposed Project route, and the location of the Vehicle Storage Maintenance and Operating Facility ("VSMOF"), and provided direction for further review and analysis by the City's Consultants; and WHEREAS, the City's Consultants has completed its follow-up reviews for the VSMOF site and confirmed feasibility regarding the joint use programming assessment and construction phasing; and WHEREAS, the City's Consultants is continuing to evaluate alignment options for 5th Street and for either 17th Street or Dade Boulevard and is completing the environmental review, which will include the full project definition of the Preliminary Preferred Alternative, traffic impacts, ridership, and impact on affected environment; and WHEREAS, endorsement of the initial key elements of the Preliminary Preferred Alternative will provide insight and guidance in negotiating the Interim Agreement with the recommended developer for implementation of the Project through a public private partnership. 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 hereby endorses the following key elements of the Preliminary Preferred Alternative: 1. A Loop consisting of bi-directional tracks; 2. Vehicles will arrive at stops every 6 to 7.5 minutes during peak periods 3. Approximately 3 stops per mile, with ADA accessibility and low-floor level boarding to all vehicle doors provided at every stop in the following approximate locations: • • Miami Beach Convention Center • Alton Road in the vicinity of Lincoln Road • Alton Road and Flamingo Park • Alton between 8th and 10th Street • Alton and 5th Street • 5th Street near Washington Ave • Washington Ave between 6th and 8th • Washington Ave in the vicinity of the Wolfsonian-FIU Museum • Washington Ave between 12th and 14th Street • Washington Ave near Lincoln Road 4. Platform characteristics include: • Center dual loading platforms preferred • 120 feet to 180 feet in length (depending on ridership forecast) • 10 feet to 15 feet wide • Two (2) steps above ground —an enhanced sidewalk 5. Stop amenities will blend into the overall streetscape and will include the following elements: • Tactile edge strip • Canopy • Kiosk/ map • Signage • Seating / leaning rail • Trash receptacle • Railings • Lighting • Real Time Transit Traveler Information System • Ticket vending • Related passenger amenities 6. The track alignment on Alton Road and Washington Avenue will maintain two lanes of travel in each direction, with on-street parking to be replaced by off-street parking, provided, however, that the City shall further investigate the feasibility of having a bidirectional track, or a shared track, on Washington Avenue, due to concerns regarding the potential loss of right-of-way. 7. The VSMOF will be built at the current Public Works Yard site located at 2300 Pine Tree Drive, as its proximity to the Project route will minimize the placement of non- revenue-related track and facilitate ready access to the Project route. 8. The VSMOF will be sized to accommodate a fleet of 12 — 14 vehicles and will accommodate: • Vehicle maintenance • Vehicle storage • Traction-power substation • Operations Control Center (OCC) • Maintenance of way parts and equipment • Employee parking • Ancillary operations facilities (equipment storage, etc). PASSED and ADOPTED this 13th day of July, 2016. ATTEST: ;2 Philip eV mayor iA u c `f ..ea Ra :el E. anado, Ci t k B E- r` JC�� • ! fCr ^ T:WGENDA\2016UuIy\Transportation./ o1�.ndorsin emo wPPA to.the Ligh Red-Modem Streetcar Project RESO doc • '1 * :INCORP ORATED. APPROVED AS TO � y FORM & LANGUAGE f r' " &FOR EXECUTION 411P-44 /./ 7/2.x//4. City Att. Date • COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION ENDORSING THE KEY ELEMENTS OF THE PRELIMINARY PREFERRED ALTERNATIVE FOR THE MIAMI BEACH LIGHT RAIL/MODERN STREETCAR PROJECT; A RESOLUTION ENDORSING PRELIMINARY PREFERRED FUNDING APPROACHES FOR THE MIAMI BEACH LIGHT RAIL/MODERN STREETCAR PROJECT Key Intended Outcome Supported: Ensure Comprehensive Mobility Addressing All Modes Throughout The City Supporting Data(Surveys,Environmental Scan,etc:N/A Item Summary: On December 9,2015,the City Commission adopted Resolution No.2015-29236,approving an Agreement with Kimley-Horn for preparation of an environmental analysis for the south beach component of the Beach Corridor Transit Connection project defined as "the Miami Beach Light Rail/Modern Streetcar Project" or "Project". The Kimley-Horn scope of work for the Project includes development of the project funding plan. The City's Consultant is continuing to evaluate alignment options for 5th Street and for either 17th Street or Dade Boulevard and is completing the environmental review, which will include the full project definition of the Preliminary Preferred Alternative, traffic impacts, ridership, and impact on affected environment. Endorsement of the initial key elements of the Preliminary Preferred Alternative will provide insight and guidance in negotiating the Interim Agreement with the recommended developer for implementation of the Project through a public private partnership. While the funding plan for the Miami Beach Light Rail/Streetcar Project is in development and the Administration is recommending that the Mayor and Commission approve the resolution endorsing the funding approaches identified to date, please recognize that additional work is still on-going today. The approaches identified to date include the following in addition to anticipated State and County funding. 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 Interlocal Agreement Funds $11 million TOTAL $25 million Advisory Board Recommendation: Financial Information: Source of Amount Account Funds: OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Jose R.Gonzalez,P.E. Sign-Offs: Department Director Assistant City Manager City ger JRG KGB JL AGENDA ITEM ` 1`� ' MIAMIBEACH DATE I �-�R A A AA Afv‘ I BEAC H City of Miami Beach, 1700 Convention Center Drive, Miami Beach, FL 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Member I' of the Ci Commission FROM: Jimmy L. Morales, City Manage DATE: July 13, 2016 SUBJECT: MIAMI BEACH LIGHT RAIL/MO I RN STREETCAR RESOLUTIONS A RESOLUTION ENDORSING THE KEY ELEMENTS OF THE PRELIMINARY PREFERRED ALTERNATIVE FOR THE MIAMI BEACH LIGHT RAIL/MODERN STREETCAR PROJECT A RESOLUTION ENDORSING PRELIMINARY PREFERRED FUNDING APPROACHES FOR THE MIAMI BEACH LIGHT RAIL/MODERN STREETCAR PROJECT BACKGROUND In 2003 - 2004, the Miami-Dade Metropolitan Planning Organization (MPO) prepared environmental and engineering studies as part of the Bay Link (Miami - Miami Beach Corridor Transportation Study). The Draft Environmental Impact Statement (DEIS) for the Bay Link Study recommended a light rail transit/modern streetcar system powered by overhead catenary wires to connect the cities of Miami Beach and Miami via dedicated right-of-way along the MacArthur Causeway. Due to some outstanding concerns with the selected technology and several premium rail corridors competing for limited funding, the Bay Link Project did not move forward beyond the DEIS phase and has remained in the unfunded portion of the MPO Long Range Transportation Plan (LRTP) since completion of the DEIS in 2004. In October 2013, pursuant to requests from the cities of Miami Beach and Miami, the MPO commenced a planning-level study that refreshed and updated the decade-old Bay Link study in partnership with Miami-Dade Transit (MDT), Florida Department of Transportation (FDOT), and the cities of Miami Beach and Miami, entitled the Beach Corridor Transit Connection Study (the "MPO Study"). The Bay Link Project is now referred to as the Beach Corridor Transit Connection Project. The MPO Study was completed in June 2015 and reaffirmed the MacArthur Causeway as the preferred alignment to connect Miami Beach and Miami. The MPO Study recommended an off-wire or "wireless" light rail transit/modern streetcar system for the portion within each urban area as the preferred vehicle technology for propulsion - a more context-sensitive and community-friendly solution for our City than elevated heavy • • Miami Beach Light Rail/Modem Streetcar Project July 13,2016 Page 2 rail or light rail catenary ("wired") systems- as well as the use of exclusive lanes for the transit vehicles to provide reliable service. Phase 1 of the recommended route alignment within the south beach portion of Miami Beach consists initially of the MacArthur Causeway, 5th Street, and Washington Avenue, to provide a direct connection to the Miami Beach Convention Center (the "Direct Connect Project").. The MPO Study recommended a second phase of the Beach Corridor Transit Connection Project that includes an alignment along Alton Road and 17th Street, operating as a local route solely within Miami Beach and complementing the initial regional cross-bay route to Downtown Miami. The MPO Study also recommended, in later phases, a future route expansion along Collins Avenue to the Julia Tuttle Causeway, connecting to Midtown Miami. The MPO's Long Range Transportation Plan also contemplates future additions to the north along Collins Avenue. The light rail system is proposed to operate on exclusive rights-of-way and travel lanes and not in mixed traffic to provide efficient and reliable mass transit service. The MPO Study identified the following as the next steps: • The MPO needs to endorse the Direct Connect Project, to then proceed with the City's State process for a Project Environmental Impact Review or a Federal process for an Environmental Impact Statement (PEIR or EIS) phase and beyond; • the City of Miami Beach and the City of Miami each need to endorse the Direct Connect Project; and • Funding needs to be secured for the PEIR/EIS phase. The Policy Executive Committee (PEC), a committee created to, among other things, give direction for the development of the Beach Corridor Transit Connection Project, and comprised of elected officials from Miami-Dade County, the City of Miami Beach, and the City of Miami, endorsed moving forward with the Direct Connect Project on an expedited basis, via a public-private partnership (P3) delivery method and endorsed expediting the Miami Beach and Miami portions of the project (to the extent that this does not impact the rest of the project). In June 2015, pursuant to Section 287.05712 of the Florida Statutes, the City received an Unsolicited Proposal from Greater Miami Tramlink Partners, a consortium, for a P3 project with the City to implement an off-wire light rail transit/modern streetcar system in South Beach based on conceptual alignment in the 2015 MPO study. On December '9, 2015, the City Commission adopted Resolution No. 2015-29236, approving an Agreement with Kimley-Horn for preparation of an environmental analysis for the south beach component of the Beach Corridor Transit Connection project defined as "the Miami Beach Light Rail/Modern Streetcar Project" or"Project". The Kimley-Horn scope of work for the Miami Beach Light Rail/Modern Streetcar Project includes development of the project funding plan. Miami Beach Light Rail/Modem Streetcar Project July 13,2016 Page 3 On December 16, 2015, the Mayor and Commission adopted Resolution No. 2015- 29247, accepting receipt of the unsolicited proposal, and authorizing the Administration to solicit alternative proposals for a P3 project, in accordance with Florida Statute 287.05712, for an off-wire or "wireless" light rail/modern streetcar system. As a result, the City published a Public Notice in accordance with Florida Statute 287.05712 for alternative proposals. The Procurement Requirement Document issued with that notice defined the project as follows: The scope of the Project includes a two phased route alignment to provide full circulator/loop within South Beach, with Phase 1 consisting of 5th Street and Washington Avenue to the Miami Beach Convention Center ("Phase 1") and phase 2 consisting of 17th Street and Alton Road, to 5th Street ("Phase 2") as a sample project area. The scope of the Project contemplates a full "turn-key" delivery approach that consists of and includes the design, construction, financing, operation, and maintenance of the Project, including vehicles and associated power, communications, signalization, and other systems required for the functionality of the Project ("Vehicle/Systems Technology"); operation and maintenance facilities, related civil infrastructure, including "curb-to-curb" road reconstruction, permitting, and related services pertaining to the Project, including all surveys, relocation of all utilities, replacement of pipes more than 50 years old and other related infrastructure work, unless otherwise specified by the City. 4* H 8 s w s 1 . \, / Legend Otle Phase 1 Alignment Miami Beach Light Rail/Modem Streetcar Project July 13, 2016 Page 4 The recommended ranking of proposers pursuant to Florida Statute 287.05712 is presented for consideration as a separate item on today's agenda. KEY ELEMENTS OF THE PRELIMINARY PREFERRED ALTERNATIVE The project will operate as a bi-directional loop along 5th Street, Washington Avenue, either 17th Street or Dade Boulevard, and along Alton Road with operational headway of 6 to 7.5 minute frequency. Hours of operation are anticipated to be between 5:30 am and 2:00 am. However, these are subject to refinement with ridership projections. Stops will be designed for contextual compatibility with the Miami Beach environment, and will be located approximately three (3) stops per mile, with full ADA accessibility at every stop. A�?a. 3. t .. Y; pA x t Yt -'^` ap AT �.. ' S k t s3 QY''s 4vN YID 3� - ti: 5, �' : ' — `F„ .. ``E % o a d G r twx Rn A. July Miami 13,Beach 2016 Light Rail/Modem Streetcar Project Page 5 Stop amenities will blend into the overall streetscape and will include the following elements: • Tactile edge strip • Canopy • Kiosk/ map • Signage • / i rail • Trash Seating receptacle leanng • Railings • Lighting • Real Time Transit Information System • Ticket vending ng • Related passenger amenities Sample Stop x �y o f � ' ,bra _ i sue" dt. } $e:.., yam,_. Stop platforms will be between 120 and 180 feet in length (depending on ridership) and 10 feet to 15 feet wide. Platform height shall be about two (2) steps above ground — essentially an enhanced sidewalk — with center, dual-loading platforms preferred. Platforms will provide level boarding to all vehicle doors The track alignment on Alton and Washington will maintain two lanes of travel in each direction, with on-street parking replaced by off-street parking. Alignments for 5th Street and 17m Street are still under analysis: • Left turn operations; • Impacts to on-street parking; and •• Potential streetscape modifications with possible grass tracks & planted medians. Miami Beach Light Rail/Modem Streetcar Project July 13,2016 Page 6 The Vehicle Storage Maintenance and Operating Facility (VSMOF) will have a minimum size of 2 acres to accommodate fleet of 12 — 14 LRT/streetcar vehicles and should be located close to the streetcar route to minimize non-revenue track. The site will accommodate: • Vehicle maintenance • Vehicle storage • Traction-power substation • Operations Control Center(OCC) • Maintenance of way parts and equipment • Employee parking • Ancillary operations facilities (equipment storage, etc) Pursuant to direction provided by the City Commission, the Vehicle Storage Maintenance and Operating Facility (VSMOF) will be built at the current Public Works Yard site located immediately north of Dade Boulevard. The site has been evaluated to ensure that it can accommodate both current Public Works operations and well as the requirements of the VSMOF. Further, a high-level review of a potential construction phasing approach has been developed to ensure that Public Works operations can transition to the replacement facilities during construction and not have to move off-site. PRELIMINARY ESTIMATED COST OF THE CITY PROJECT Planning level capital costs were developed for Phase 1, and Phase 1 and Phase 2 (the combined Loop), with two alternatives considered for the Vehicle Storage, Maintenance, and Operations Facility (VSMOF) site. • The VSMOF is located at the Public Works property on the north side of Dade Boulevard, just east of Miami Beach Senior High School. • Phase 1 includes 1.7 miles of double track along 5th Street from Alton Road to Washington Avenue, and along Washington Avenue from 5th Street to 17th Street. • Phase 2 includes 1.8 miles of double track along Alton Road from 5th Street to 17th Street, and along 17th Street from Alton Road to Washington Avenue. Operating costs were developed for Phase 1 and Phase 1 and Phase 2 (the combined Loop), including the expenses associated with the VSMOF site. Proposed options on the level of service provided were based on peak ridership periods of 6 minutes or 7.5 minutes, with 10 to 15 minute frequencies applied during other varying times of the day. The capital and operating costs for each of these scenarios are shown in the following table. Please note that these are intentionally conservative estimates, and it is hoped that, once a P3 concessionaire is selected, we can work with them to achieve lower costs. Miami Beach Light Rail/Modem Streetcar Project July 13,2016 Page 7 SCENARIO COSTS Capital Phase 1, VSMOF— PW $222,000,000 Phase 1 +2, VSMOF- PW $387,500,000 Operational Phase 1, Peak 6 Minute Headway $8,600,000 Phase 1, 7.5 Peak Minute Headway $7,700,000 Phase 1 + 2, Peak 7.5 Minute Headway $14,000,000 Phase 1 + 2, Peak 6 Minute Headway $16,000,000 OVERVIEW OF FUNDING NEEDS AND OPTIONS The Procurement Requirement Document for the P3 solicitation specifies that the P3 concessionaire will be compensated through a combination of Milestone Payments and Availability Payments. "The City anticipates a performance-based availability payment structure over the operating period. The City will consider negotiating with the successful Proposer an option for milestone payments during the construction phase of the Project, if funds are available and appropriated • • for such purposes" Milestone Payments are payments established by the City in the Comprehensive Agreement (contract executed between the City and the private partner for the Project) when specific deliverables outlined in the concessionaire agreement are reached during the Design and Construction stage of the overall Design-Build-Finance-Operate-Maintain Project. Availability Payments are payments that begin at the start of the "Operating Period" normally defined as when the Light Rail/Modern Streetcar Project is open to the public for revenue operations, and continue over the concession term (usually about 30 years). Availability payments are based on the performance (Availability) of the Light Rail/Modern Streetcar Project compared to agreed-upon performance standards (such as on-time performance, system availability meaning limited to no down time for the train system, proper maintenance, etc.) as documented in the Comprehensive Agreement. The Availability Payment covers the cost of Design and Construction not covered by Milestone Payments, and the cost of annual Operations and Maintenance. Normally the . - annual cost of Operations and Maintenance will include a cost index factor such as the Consumer Price Index, to account for inflation over the term of the Comprehensive Agreement. • Miami Beach Light Rail/Modem Streetcar Project July 13,2016 Page 12 process for creating a special assessment district typically takes at least six (6) months following adoption by the City Commission of the initial resolution and preliminary assessment roll, due to the number of Commission actions and statutory notice periods involved, including (1) publication of the initial resolution for a period of two weeks; (2) adoption of a City Commission resolution calling for a special election of affected property owners (either by in person or mail-in vote of the affected property owners); (3) publication of the notice of the election for a minimum of at least thirty (30) days in accordance with Section 100.342 of the Florida Statutes; (4) adoption of City Commission resolution certifying the election results; (5) adoption of resolution setting forth the final date for a public hearing on the final assessment roll, with at least thirty (30) days' notice of the public hearing (by mail and in newspapers of general circulation); and (6) adoption of the final resolution and final assessment roll. If approved, special assessments cannot be levied or collected until after completion of the project. Further, once the City Center RDA District expires, there is potential to capture a portion of funds that are dedicated at this time for City Center debt service and, by policy, dedicate them to the operating component of the Availability Payment. The City Center District expires in 2044, or whenever the debt is paid off. Under the latest projects based on a growth in taxable values between 3.5% and 5%, the City Center District could expire by 2030. Based on these projections, $9 million per year may be available in 2030 and beyond. OTHER NEW REVENUE SOURCES: There remains a gap between $2 million and $18 million per year, depending on the implementation of special assessments and partial use of funds currently committed to the RDA once the RDA expires. TOLLING Tolls on key roads that provide transportation onto Miami Beach can be considered to provide annual funding for the Project. A one-way toll for entrance to Miami Beach could also help encourage the use of alternative means of transportation such as carpooling and public transit to reduce the vehicle traffic on Miami Beach. As part of the Light Rail/Modern Streetcar Project, stations and parking would be targeted at "intercept" locations to allow vehicle traffic to park shortly after reaching Miami Beach and use the Light Rail/Modern Streetcar Project on South Beach. The City Manager met with the FDOT District Six Secretary Jim Wolfe on June 29 and the Mayor has a meeting scheduled with FDOT Secretary Jim Boxold on July 19. These meetings will include a discussion of tolling options for a one-way toll onto Miami Beach for roadways including 5th Street, Alton Road, Arthur Godfrey Road, Collins/Harding Ave, and 41st Street (the "Proposed Toll Roads"). Currently, the City does not have the legal authority to impose a toll on the Proposed Toll Roads, as all of the roads are owned by FDOT as part of the State Highway System. The discussions with FDOT will include two options: 1) A partnership approach with FDOT where FDOT will remain the owner of the Proposed Toll Roads and any toll revenues would be allocated between the City and FDOT pursuant to a to-be-negotiated revenue share. This approach is complicated and may require action by the Florida Legislature to ensure that Miami Beach Light Rail/Modem Streetcar Project July 13,2016 Page 13 FDOT has the direct authority to implement the tolling and also to guide the allocation of toll revenues collected from users, with the ultimate goal of providing part or all of the City's share of funds for a portion of the City's LRT/Modern Streetcar project (the "Streetcar Project"). 2) A transfer to the City of ownership of all portions of the Proposed Toll Roads that are located within the City of Miami Beach (i.e., all portions of Collins Avenue located within the City's limits, etc.), pursuant to the transfer process outlined in Florida Statute 335.0415, which provides there must be a mutual agreement of FDOT and the City to transfer roads to a municipality if FDOT determines that certain statutory criteria are satisfied. City ownership of the subject roads would allow the City to make decisions about tolling with input from appropriate partners (based on federal or state requirements that apply), and would permit the City the flexibility to control the management of the roadways in the future. Although City ownership of the Proposed Toll Roads would also obligate the City to provide for and fund the maintenance of the roadways (all of which are currently maintained by FDOT), it is assumed that the toll revenues will be sufficient to not only fully fund the upkeep of the Proposed Toll Roads, but also help fund a portion of the Streetcar Project.' As the City's consultants advised the Finance Committee of the City Commission at the June 6, 2016 meeting, the roads under consideration as Proposed Toll Roads are all currently classified as a "Federal Aid Road," which means that any toll revenues generated from the Proposed Toll Roads must be spent on "Federal eligible projects". As currently contemplated, the Streetcar Project would not be a federally eligible project, pursuant to the direction provided by the Mayor and City Commission at the March 9, 2016 City Commission meeting, as set forth in Resolution 2016-29236. Accordingly, assuming FDOT agrees to transfer the Proposed Toll Roads to the City, the City would have two options: (1) Successfully complete the process for imposition of a toll on a Federal Aid Road (consultation with FDOT and an agreement with the Federal Highway Administration) and accordingly to amend its approach to the Streetcar Project to apply federal requirements to the Project, including "Buy America" and other federal requirements; or (2) Pursue the "declassifying" of one or more of the roads as "Federal Aid Roads" so that any approved tolls may be used to fund a portion of the Streetcar Project as currently contemplated. To this end, Kimley Horn has advised that the declassification of the "Federal Aid Roadway" designations have not been pursued very often nationally and, in the past, this has required the passage of Federal legislation to declassify the road. Accordingly, the possibility for declassification of the roads as Federal Aid Roads will require further time to further evaluate,, and further consultation with US DOT and congressional members. 1 If FDOT agrees to transfer part or full ownership of the Proposed Toll Roads to the City, it appears that the City has authority to pursue tolling pending final legal reviews required prior to imposition of any toll. We understand that at least one other municipality in Florida, the City of Treasure Island, has reviewed the requirements to toll with the Federal Highway Administration and is moving forward with the necessary technical studies required to impose a toll on its City- owned causeway. Miami Beach Light Rail/Modem Streetcar Project July 13,2016 Page 14 In conclusion, the initial FDOT meetings noted above will provide a starting point for the options and approaches that may available to the City with respect to the imposition of tolls as an option to help fund the Streetcar Project. I will provide an update to the Commission at the next opportunity once I have additional information to report. At the present time, the goal is for the toll revenues to fund between $7 million and $18 million per year starting in 2020 for the Streetcar Project, depending on the outcome of other possible funding sources that are also under consideration. In the absence of such revenues, other sources of funds will need to be approved by the City Commission prior to entering into any comprehensive agreement that contractually obligates the City to the Streetcar Project. LESS DESIRABLE FUNDING OPTIONS In the event that tolling is not a feasible option, other options that could be explored include: • Further evaluation of existing revenue sources: • Impact City priorities and level of service • Discuss with County amendment to City Center CRA agreement to allow current surpluses above amounts needed for MBCC debt to be directed to streetcar project. Further, once the ranking of proposers is completed, the City and its consultants will be able to work with the Kimley-Horn Team to refine costs estimates and discuss other potential opportunities to bridge this gap. RESILIENCY NEEDS In addition to the project costs, the City, as part of its resiliency program for sea level rise, intends to raise the level of many streets, install pumps, and make other required improvements. As part of the Miami Beach Light Rail/Modern Streetcar Project, the concessionaire is responsible for all resiliency-related work at specified geographical areas impacted by the alignment, with such areas to be determined by the City during the interim agreement negotiations. The funding for this work is in addition to the construction cost outlined previously, although it is intended that the work will be performed by the concessionaire at the same time as the construction of the Miami Beach Light Rail/Modern Streetcar Project. The scope of work includes: • Raising elevation of public roadway segments to minimum height of 3.7 NAVD at edge of right-of-way with minimum elevation of top of catch basins at or above 3.0 NAVD while maintaining a standard pavement cross-slope of 2.00% • Relocating, upgrading and/or protecting underground utilities (water main, sanitary sewer, and storm sewer)within vicinity of the route. The resiliency-related scope of work is estimated at $25 million and is proposed to be funded from the $14 million in Storm water proceeds in 2018 and $11 million in 2014 Miami-Dade County Interlocal agreement funds to be received in 2017. Miami Beach Light Rail/Modem Streetcar Project July 13,2016 Page 15 FINANCE AND CITYWIDE PROJECTS COMMITTEE This funding plan approach was presented at the June 6 Finance and Citywide Projects Committee Budget Briefing meeting, and the administration was directed to pursue the options presented. CONCLUSION The Administration is recommending that the Mayor and City Commission endorse the key elements of the Preliminary Preferred Alternative as outlined earlier in this memo. The City's Consultants is continuing to evaluate alignment options for 5th Street and for either 17th Street or Dade Boulevard and is completing the environmental review, which will include the full project definition of the Preliminary Preferred Alternative, traffic impacts and operations, ridership, and impact on affected environment. Endorsement of the initial key elements of the Preliminary Preferred Alternative will provide insight and guidance in negotiating the Interim Agreement with the recommended developer for implementation of the Project through a public private partnership. Further, while the funding plan for the Miami Beach Light Rail/Streetcar Project is in development and the Administration is recommending that the Mayor and Commission approve the resolution endorsing the funding approaches identified to date, please . recognize that additional work is still on-going today. The approaches identified to date include the following in addition to State and County funding. 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 Miami Beach Light Rail/Modem Streetcar Project July 13,2016 Page 16 Resiliency Program Funding 2018 Storm Water Bond Proceeds $14 million 2014 Miami-Dade County Interlocal Agreement 11 million Funds Total $25 million Attachments JLM/KGB ATTACHMENT 1 CAPITAL AND OPERATING COST ASSUMPTIONS • Capital cost information for track, signals, power and communication systems, fare collection, utility relocations, stations, site work, and building construction (VSMOF and parking structures) were developed using historical data and cost information recently developed for the Wave Streetcar in Fort Lauderdale, adjusted for Miami Beach. Based on the current level of design, a 30% contingency was included, in accordance with FTA Recommendations for Contingency (FTA Project and Construction Management Guidelines). Costs are presented in 2016 base year dollars, and do not incorporate inflation. • Operating costs assumed the hours of operation used in the estimate begin every day at 5:30am, and terminate at 1:00am for Sunday through Thursday and Holidays, and 2:30am on Friday and Saturday. Based on the preliminary station layout, station-to-station run times were determined assuming transit signal priority. Estimated run times were then used to calculate the number of vehicles required to maintain a given frequency, also yielding annual vehicle miles and hours of operation. Assumptions: Twelve vehicles (6 minute headways correspond to 12 vehicles) Phase 1 corresponds to 1.7 miles; Phase 1 and Phase 2 corresponds to 3.5 route miles. • This information was combined with 2014 cost information to determine annual operation and maintenance costs, with a 25% contingency applied. • Vehicle Storage, Maintenance and Operations Facility (VSMOF) I. VSMOF (Public Works Site) — includes demolition of existing warehouse building, preserving existing water tanks, reconstruction of new offices, operations, and warehouse building, and parking structure. II. VSMOF (17th Street Site) — includes demolition of existing parking structure, replacement of 1,460 space parking structure above the VSMOF. Ill. Both VSMOF options — 30,000 square foot facility — comparable to the Wave Streetcar. 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J u E u m l «S d i 'm Z E Q ° F o zz c «m R q m E > c Y w- N 2 C L+ Q V 7 1 a m u a m a m a m a m A A A n ,n ,n a J, : :o ,o n m m d oM .7.i � � 3 ATTACHMENT 3 SPECIAL ASSESSMENT FINDINGS The proposed assessment methodology is a two-step process: • First, the assessment methodology allocates the assessable costs of the Streetcar Project to the property use categories on the basis of trip generation. Trip generation information was obtained from the Trip Generation Handbook, 9m Edition developed by the Institute of Traffic Engineers (ITE). • The second step of the apportionment methodology allocates the share of the assessable costs apportioned to each property use category among the assessed parcels within each property use category based on the square footage of the buildings located on the assessed property according to the tax roll files maintained by the Miami-Dade County Property Appraiser. The special assessments are required to meet the Florida case law requirements for a valid special assessment. These requirements are: • The services or facilities provided must provide a special benefit to the property being assessed; and, • The costs assessed must be fairly and reasonably apportioned among the properties that receive the special benefit. SPECIAL BENEFIT ASSUMPTIONS The infrastructure development and improvements associated with the Streetcar Project possess a logical relationship to the use and enjoyment of the assessed property. As a result of the improvements associated with the Streetcar Project, completion of the project components will permit the accommodation of economic growth within the Streetcar Assessment Area. Infrastructure development and improvements associated with the Streetcar Project will provide for and result in an increased level of necessary infrastructure services, enhancement of area recreation and utilization, promoted user- friendliness, and enhanced overall aesthetic beautification of the project area. As such, the improvements associated with the Streetcar Project will enhance and strengthen the relationship of such improvements to the use and enjoyment of the assessed parcels, as well as ultimately benefit and promote the property values within the Streetcar Assessment Area. FAIR AND REASONABLE APPORTIONMENT ASSUMPTIONS The following assumptions support findings that the parcel apportionment is fair and reasonable. • The separation of the rental residential and the non-residential buildings by actual square footage is fair and reasonable for the purpose of parcel apportionment because the increase in value is determined and measured by the actual square footage of structures and improvements within benefited parcels. • The exclusion of residential buildings on tax parcels is fair and reasonable because the effect of the residential properties on the rental residential and non-residential assessment rates is de minimis. Further, the application of the ITE Trip Generation data to residential property uses within the City is not appropriate because the City's residential property household size, occupancy and seasonal use varies significantly from the properties studied by the Institute of Traffic Engineers.