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LTC 103-2017 Parking Status Report October 2016AMIBEACH OFFICE OF THE CITY MANAGER NO, LTC# 103-2017 LETTER TO COMMISSION TO: Mayor Philip Levine and Members o the City C FROM: Jimmy L. Morales, City Manager DATE: February 27, 2017 SUBJECT: PARKING STATUS REPORT OCI OBER 2016 The Parking Department received revenue from different sources outlined in the categories listed below, In addition, only selected recurring expenses associated with the parking garages are reported herein, October revenue was significantly impacted by the effects of Hurricane Matthew. While the event did not directly impact the City, there were several days where garages were open to the public at no charge and metered parking was not enforced due to hurricane preparation and recovery. The following is a condensed presentation of revenue by source and variance: October 2015 October 2016 $ variance I On/Off Metered Spaces* On/Off Metered Spaces $2,479,981.95 $2,029,461.35 $1450,520,601 Total Metered Spaces $2,479,981.95 $2,029,461.35 $(450,520.60) *These amounts include revenue from Pay by Phone Transactions Meter Revenue: Meter revenue is composed of both single space and multi space meters on the street and in lots as well as multi space meters located inside the City Hall and 42nd Street Garages. Meter revenue variances are driven by many variables which include, but are not limited to, road and sidewalk construction, closed streets and site of events held in the City. In addition to storm preparedness/recovery of Hurricane Matthew which began on Wednesday, October 5th through Friday, October 7th, the parking system experienced communication downtime on Saturday and Sunday (10/8/2016 to 10/9/2016) resulting in an additional impact to meter revenue. In order to determine this impact, revenues were normalized by removing the revenues collected during the respective days in the prior and current year (10/7-11/15 and 10/5-9/16). This exercise to normalize revenues resulted in $2,074,878.37 for October 2015 and $1,755,704.57 for October 2016, an adjusted decrease of $319,173,80. However, please note there was likely additional residual impact for storm preparedness and recovery which is difficult, if not, impossible to quantify. II Enforcement** M-D Parking Violations $276,667.03 $227,960.37 $(48,706,66) Towing 20,154.70 49,645,00 29,490,30 Total Enforcement $296,821.73 $49,645.00 $(19,216.36) **These amounts include revenue for the month that had not yet posted. M February 27, 2017 Letter to Commission Parking Status Report — October, 2016 Page 2 of 4 Enforcement: The City receives a share of ticket citations for parking violations that occur in Miami Beach and are collected by Miami-Dade County. The number of parking citations issued also decreased by 6,248 (-22.35%) related to hurricane preparedness/recovery, Consistent with the meter revenue analysis above, if the number of citations is adjusted by removing the affected days in the prior year (10/7/15-10/11/15), the difference for October in the current year would be a decrease of 1,739 citations (-7.42%). October 2015 October 2016 $ variance III Off Street Facilities a. Garages 17th Street Garage $483,306.46 $308,560.61 $(174,745.85) Pennsylvania Garage 77,617,92 72,296.91 (5,321,01) Sunset Harbour Garage 88,490,95 75,272,53 (13,218,42) City Hall Garage 50,672,38 36,685,54 (13,986,84) 7th Street Garage 187,374.28 175,932,66 (11,441,62) 12th Street Garage 54,591.12 53,348,38 (1,242,74) 13th Street Garage 137,394,14 117,691.14 (19,703,00) 42nd Street Garage 128,304,20 73,013,47 (55,290,73) 16th Street Garage 295,636.08 251,035.55 (44,600,53) Total Garages $1,503,387.53 $1,163,836.79 $(339,550.74) b. Joint Development* 5th and Alton Garage $65,097.40 $48,900.08 $(16,197,32) Total Joint Development $65,097.40 $48,900.08 $(16,197,32) *46% of total revenue which represents the City's pro-rata share pursuan to the Development Agreement Garages: Revenues are composed of transient, monthly, and flat rate special event rates. Garage revenue variances are driven by many variables which include, but are not limited to, special events, weather, tourism, and maintenance. October revenue differences are mainly due to the posting of deferred revenue. The deferred revenue amount of $233,092.50 was posted in October 2015, however, the FY16 amount of $238,066.67 was not posted in October 2016. Additionally, Hurricane Matthew affected all garages as well. If revenue is adjusted by removing the affected days this year (10/5/16-10/9/16) and corresponding days in the prior year (10/7/15-10/11/15); and include the posting of deferred revenue, the difference for October would be a decrease of $23,847,18, less than 1.6%. Again, please note there was likely additional residual impact for storm preparedness and recovery at garages as well which is difficult, if not, impossible to quantify. 5th and Alton Garage: The 5th and Alton Garage is a joint development (parking garage) with the "Developer" (Edens) containing 1,080 parking spaces. The Developer and City own 54% and 46% of the parking spaces, respectively, and profit/loss is also shared in the same manner. The City's revenue portion (46%) for the month of October 2016 is $48,900.08 resulting in total net loss of $(26,210.09). Pursuant to the Development Agreement, the City receives its' proportionate share of profit or must subsidize any loss. The City and Developer continue to jointly pursue initiatives to promote the use of the garage. These initiatives include but are not limited to "after hours" flat rate parking; valet parking storage; monthly parking; and strategically placed electronic signage directing users to the facility. Future considerations include promotional rates for "after hours and park and ride options to the entertainment districts, February 27, 2017 Letter to Commission Parking Status Report - October, 2016 Page 3 of 4 October 2015 October 2016 $ variance IV Permit Sales Municipal Monthly Permits $39,647,12 $12,065.05 $(27,582.07) Valet & Space Rental 36,434,00 313,838.00 277,404.00 Residential and Visitor Permits 255,277.35 67,895.79 (187,381.56) Hotel Hang Tags cob, 4,000.00 4,000.00 Total Permit Sales $331,358.47 $397,798.84 $(66,440.37) V Preferred Lots Preferred Lots $111,576,23 $50,000.00 $(61,576.23) Total Preferred Lots $111,576.23 $50,000.00 $(61,576.23) VI Miscellaneous Miscellaneous $1,643.53 $33,744.69 $32,101.16 Total Miscellaneous $1,643.53 $33,744.69 $32,101.16 VII Pay by Phone Transaction Fees (collected on behalf of Parkmobile) $53,873.30 $48,777.90 $(5,095.40) Total Pay by Phone $53,873.30 $48,777.90 $(5,095.40) Permit Sales: The sale of residential and visitor's virtual permits was introduced in fiscal year 2015, allowing residents to purchase residential permits and visitor permits for their guests online. As part of this program, in 2015, the Administration transitioned from set annual or semi-annual periods for residential permit renewal by zone to renewal periods according to birth month (similar to vehicle registration renewals). This spread the purchase permit sales over all months versus a set month. Additionally, before the transition to the new system, residents pre-purchased visitor hang tags from our customer service center to be used at a later date, The new virtual permit system allows residents to purchase a virtual visitor permit real time when needed, This eliminated the need to purchase multiple (paper) permits and it too spread the purchase of the virtual visitor permits over all months versus a set month. The virtual visitor permits are enforced using LPR technology. October permit revenue differences for Municipal Monthly Permits (Municipal) and Residential and Visitors Permits (Residential) categories are mainly due to the posting of deferred revenue. There was deferred revenue for Municipal Monthly Permits in the amount of $64,930.83 that was posted in October 2015; however, for FY16 $50,342.08 was not posted in October 2016. There was deferred revenue for Residential and Visitor Permits in the amount of $172,040.99 that was posted in October 2015, however, for FY16 $214,603.85 was not posted in October 2016. If revenue is adjusted to account for the aforementioned deferred revenue postings, the difference in October would be an increase of $22,760.01 for Municipal Monthly Permits and $27,222.29 for Residential and Visitor Permits. Preferred Lot: This lot is located in the front of the Convention Center, and variances are contingent on convention center special events. This lot closed at the end of December 2015 to support the Convention Center renovation project and eventual transition to a public meeting space. During the month of October, there was a deposit in the amount of $50,000 for Design Miami use of the lot, Miscellaneous Revenue: This category consists of other accounts including a revenue share from Citibike, advertising revenue, interest, etc. The increase is due to Administrative Fee, RDA Management Fee and Deco Bike revenue in October 2016 which was not recorded in October 2015. February 27, 2017 Letter to Commission Parking Status Report — October, 2016 Page 4 of 4 Parkmobile: The City Commission awarded Parkmobile to provide mobile payment application service. Mobile payment application services provides enhanced functionality over the in-vehicle parking meter. Miami Beach residents will continue to enjoy the resident discounted rate of $1.00 per hour in the South Beach and Middle East Beach areas; from $4.00 for on-street parking and $2.00 for off-street parking in South Beach, and $3.00 for on-street parking and $2.00 for off-street parking in East Middle Beach. Moreover, Parkmobile will assess no transaction fees to Miami Beach residents for pay by phone service. Parkmobile began services on May 12, 2014. The revenue shown above represents the transaction fees collected by the City for non-resident transactions and remitted to Parkmobile in the following month. The decrease can also be linked to the effects of Hurricane Matthew. RM/KGB/SF fi \ping \ Spars \statusreport\ 2017\oct,2016 \october 2016 parking status report.doc