98-22885 RESO
RESOLUTION NO.
98-22885
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING A
PROPOSED FISCAL YEAR 1998-99 OPERATING BUDGET FOR THE
ELECTROW A VE CIRCULATOR SHUTTLE SERVICE, IN THE AMOUNT
OF $1,611,469; AUTHORIZING THE APPROPRIATION OF $438,000 IN
MIAMI BEACH RESORT TAX FUNDS, PLUS $12,000 IN CARRY -OVER
FUNDS, TO COVER THE CITY'S 27.9% SHARE OF THE 1998-99
FUNDING PACKET FOR OPERATIONS; WHICH PACKET ALSO
INCLUDES A NEW CONTRIBUTION OF $300,000 PLUS $808,969 IN
CARRY -OVER FUNDS FROM THE FLORIDA DEPARTMENT OF
TRANSPORTATION, AT 68.8%; A $12,500 GRANT FROM THE
INTERNATIONAL CITIES FOR LOCAL ENVIRONMENTAL
INITIATIVES, AND $40,000 IN PROJECTED ADVERTISING REVENUES,
WHICH JOINTLY ACCOUNT FOR THE REMAINING 3.3%; AND,
FURTHER APPROPRIATING ALL FUNDS, WHEN RECEIVED.
WHEREAS, the Electrowave Circulator Shuttle Service to South Beach has been in
operation since January 1998, and has carried over 883,000 riders in only 30 weeks of service; and
WHEREAS, the Fiscal Year 1998-99 Electrowave Operating Budget for a full 12 months
of transit services is proposed at $1,611,469; and
WHEREAS, the City is being asked to contribute $438,000 in Resort Tax Funds, plus
$12,000 in carry-over funds, or 27.9% toward the $1,611,469 operating budget; and
WHEREAS, the additional 72.1 % of the operating budget will be covered at 68.8% by the
Florida Department of Transportation, and the remaining 3.3% by an environmental grant and
projected on-board advertising revenues; and
WHEREAS, a proposal for new capital acquisition is being submitted to the Mayor and
City Commission for consideration under a separate enabling Resolution; and
WHEREAS, with a potential addition of four electric shuttle vehicles to be used as "rolling
stock," the proposed operating budget includes enough funds to cover added operating expense.
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 approve and adopt a proposed Fiscal Year 1998-99 operating budget for the
Electrowave Circulator Shuttle Service, in the amount of $1,611,469; authorize the appropriation
of $438,000 in Miami Beach Resort Tax Funds, plus a $12,000 in carry-over funds to cover the
City's 27.9% share ofthe 1998-99 funding packet for operations; which packet also includes a new
contribution of $300,000 plus a $808,969 in carry-over funds from the Florida Department
of Transportation, at 68.8%; and a $12,500 grant from the International Cities for Local
Environmental Initiatives, and a $40,000 in projected advertising revenues, which jointly account
for the remaining 3.3%; and, further appropriate all funds, when received.
PASSED AND APPROVED this the 9th
day of September
,1998.
WIl1
MAYOR (
ATTEST:
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APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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City Attornev
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Date
ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
.1ttp:\\cLm iami-beach. fl. us
;ITY OF MIAMI BEACH
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. ~ ~
Mayor Neisen O. Kasdin and
Members of the City Co ission
DATE: September 9,1998
Sergio Rodriguez
City Manager
A RESOL ION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING A
PROPOSED FISCAL YEAR 1998-99 OPERATING BUDGET FOR THE
ELECTROW A VE CIRCULATOR SHUTTLE SERVICE, IN THE AMOUNT
OF $1,611,469; AUTHORIZING A NEW APPROPRIATION OF MIAMI
BEACH RESORT TAX FUNDS IN THE AMOUNT OF $438,000, PLUS
$12,000 IN CARRY-OVER FUNDS, TO COVER THE CITY'S 27.9% SHARE
OF THE 1998-99 FUNDING PACKET FOR OPERATIONS; WHICH
PACKET ALSO INCLUDES A NEW CONTRIBUTION OF $300,000 PLUS
$808,969 IN CARRY-OVER FUNDS FROM THE FLORIDA DEPARTMENT
OF TRANSPORTATION, AT 68.8%; A $12,500 GRANT FROM THE
INTERNATIONAL CITIES FOR LOCAL ENVIRONMENT AL
INITIATIVES, AND $40,000 IN PROJECTED ADVERTISING REVENUES,
WHICH JOINTLY ACCOUNT FOR THE REMAINING 3.3%; AND,
FURTHER APPROPRIATING ALL FUNDS, WHEN RECEIVED.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The ELECTROWA VE Circulator Shuttle Service has been an unquestionable success story. After
only 30 weeks of operation, or 7 1/2 months, the following is being reported:
o The 22-passenger buses have carried 883,203 passengers, an average of29,400 per week, or
over 4,200 riders per day. With a maximum of six vehicles on the road at any given time,
the service is already operating over capacity on Washington Avenue.
o The service has been warmly welcomed and is used by residents, visitors, and tourists alike,
and has attracted a noticeable number of park-and-riders, particularly on weekend/holiday
evenings and during local events.
o Not only has the ridership exceeded expectations, but its present operating budget will
AGENDA ITEM~
o C 00
DATE -I - 1- l-iL
feature a healthy cash carry-over, of approximately $820,000, that will be applied against FY
1998-99 expenses. Therefore, the expected FY 1998-99 City contribution is proposed to
be $438,000 in Resort Tax Funds, down from approximately $650,000 contributed last year.
The projected cash carry-over includes mostly State funds, which are being rededicated to
the ELECTROWA VE Service by the Florida Department of Transportation (FDOT).
<> The City's proposed $438,000 new contribution, plus $12,000 in carry-over funds, is
receiving a considerable return from FDOT which is investing the following funds toward
the FY 1998-99 ELECTROWA VE Project:
*
$1,108,969 in new and carry-over funds towards the proposed operating budget, as
addressed in the ANALYSIS section, below; and
*
$248,125 in Toll Revenue Credits as a "soft" match to the $992,500 in FTA Section
3 capital funds earmarked in the FY 1996-97 U.S. Transportation Appropriations
Budget for ELECTROWA VE capital purchases. FDOT's willingness to produce this
soft match has relieved the City from its obligation to produce a cash match to these
Federal funds. NOTE: This capital item requires no City contribution and
constitutes the next item on this City Commission Agenda.
<> The City is seeking County approval to charge a 25-cent fare for the ELECTROWA VE
Service. The hiring of a bonded company to handle the fare proceeds may cost $54,000/year
or more. This cost could be covered by a combination of the "contingency" and "other
operating" categories of the proposed FY 1998-99 operating budget. A fare cannot be
instituted immediately for the following reasons.
*
It requires the approval of enabling legislation to effect a change in the County Code,
which presently requires th~t other transit services in the Miami-Dade area charge the
same as MDTA does, at $1.25 regular, and $.60 per senior/student. Early
September 1998 is the deadline to receive agenda items for the November 3rd
County Commission meeting.
*
The City needs to resolve all security issues associated with fare collection, such as
the provision of a secure room/vault that is available 7 days a week to the bonded
company which would count, log, and bag the fare proceeds, prior to deposit in
a designated bank account. The Parking Department "secure room/vault" is closed
on weekends and holidays, when the ELECTROWA VE ridership is intense.
<> Based on present ridership counts, the implementation of a 25-cent fare could generate at
least $300,000 in gross revenues in 12 months. The City Administration and MBTMA do
not recommend a 50-cent charge, at least initially.
<> Federal transit rules require that farebox revenues be used to offset transit operating costs,
and prohibit their use to offset the required "local" match to Federal and/or State funds
that have been awarded to any given transit project.
ANAL YSIS
Following is a comparison between present and proposed ELECTROWA VE budgets and expenses:
Budget Categories
Capital Acquisitions
Red Top Charges
Fleet Maint. Charges
MBTMA Proj.Admin.
Marketing
Electricity (batteries)
Misc. Operating
Uniforms (drivers)
Communication (9 radios)
One Cell Telephone
Contingency
FY 1997-98
Inception
Budget
$ 78,750
991,510
477,419
95,714
119,509
16,000
62,278
3,880
-0-
-0-
142,418
FY 1997-98
Projected
Expenditures
(9 mos. service)
$
78,750
568,510 (9 mos.)
245,823
95,714
118,500
16,000 (7 mos.)
32,400
3,880
7,560 (6 mos.)
200
-0-
FY 1997-98
Projected
Carry-over
-0-
$ 423,000
231,596
-0-
1,009
-0-
29,878
-0-
-0-
-0-
142,418
FY 1998-99
Proposed
EW Budget
(12-mos.oper. )
-0- *
$ 774,000
478,000
95,700
80,000
50,000
35,769
6,000
22,000
-0-
70,000
FY 1997-98 Totals: $1,987,478 $1,167,337 $ 820,141
FY 1998-99 Proposed Operating Budget ......................................................... $1,611,469--
FY 1998-99 capital acquisitions would be made using exclusively Federal funds, pending City
Commission approval of the next Item on this City Commission Agenda-purchase of four
additional electric shuttle vehicles and equipment to be used as "rolling stock."
*
.... Note that the proposed FY 1998-99 EI:ECTROW A VE operating budget includes additional
operating costs at approximately $3,500 a month to cover added vehicle insurance coverage,
electricity, and radio monthly costs. In addition, its "misc. operating" and "contingency"
categories may be used to cover the costs of hiring a bonded company to handle fares.
As previously stated, the proposed $438,000 City Resort Tax new contribution toward the operating
budget is significantly reduced from the $1.8 million contributed within FY s 1996-97 and 1997-98,
for capital and operating expenditures. The proposed funding sources for the upcoming
ELECTROWA VE Operating Budget are as follows:
FDOT carry-over funds from FY s 1996-98 JP A * w/City
FY 1998-99 FDOT contribution
Estimated City carry over funds from 2-year lP AlFDOT
FY 1998-99 City Resort Tax match to State funds
Additional Resort Tax contribution to fulfill budget needs
Int. Cities for Local Environmental Initiatives grant
Projected on-board advertising revenues
Proposed FY 1998-99 funding total:
$ 808,969 68.8% FDOT
$ 300,000
$ 12,000
$ 300,000 27.9% City RT
$ 138,000
$ 12,500
$ 40.000 3.3% Misc.
$1,611,469
* Two- Y ear Joint Participation Agreement (JP A) between City and FDOT for ELECTROW AVE.
The presently projected cash carry-over of approximately $820,000 (mostly in FOOT funds) is due
to the following reasons:
1. The ELECTROWA VE Service has been in operation less than nine (9) months.
2. MBTMA's budget-conscious approach to program expenditures and route control has kept
costs down.
3. To date, City Fleet Maintenance has been unable to hire a full contingent of mechanics, as
budgeted, and has had to bypass required routine maintenance in favor of solving major
problems, only.
4. A slight overbudgeting in the first year of operations, due to the use of new technology.
5. Certain expenses began to be incurred only by March (when FPL connected the electric
meter) or April (monthly cost of on-board radios).
Looking into the future to FY 1999-2000, there may be NO carry-over funds from the FY 1998-99
Supplemental Joint Participation Agreement (JP A) to be executed in the near future by the City and
FDOT for the ELECTROWA VE Budget. However, we anticipate that other sources of operating
funds will come into play, above and beyond the traditional FDOT contribution/City Resort Tax
match, as follows:
* The ELECTROWAVEs share of the National Transit Data Fund, at approx. $50,000.
* A share of the new Transportation Block Grant Fund, approximately $30,000.
* A new Department of Energy grant, approximately $200,000.
* Farebox revenues of at least $150,000 (based on a minimum six-month fare collection).
* NOTE: potential, locally-created funding sources, such as increased revenues from
advertising, dedicated parking revenues, mitigation plan proceeds, transit assessment
districts, etc., can be used to offset the amount of Resort Tax to be contributed annually
by the City.
CONCLUSION
It is undeniable that public transit is essential if the City is to achieve the goals and meet the
challenges of a turn-of-the-Century Miami Beach. The Administration recognizes the merits of the
ELECTROWA VE Service, has effected a considerable reduction in its Resort Tax contribution to the
project, will strive to generate additional sources oflocal funding for future years, and recommends
approval of this Resolution.
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