2002-25012 Reso
RESOLUTION NO. 2002-25012
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING THE FISCAL YEAR 2002-03 OPERATING BUDGET FOR
THE ELECTROWAVE SHUTTLE SERVICE, IN THE AMOUNT OF $2,310,000; AND
APPROPRIATING A FUNDING PACKET WHICH INCLUDES $350,000 IN SERVICE
DEVELOPMENT PROGRAM FUNDS FROM THE FLORIDA DEPARTMENT OF
TRANSPORTATION (FOOT), FOR THE WASHINGTON ROUTE; $300,000 IN
CONCURRENCY MITIGATION FUNDS-SOUTH BEACH; $100,000 IN PROJECTED FARE
COLLECTION REVENUES; $20,000 IN PROJECTED ON-BOARD ADVERTISING
REVENUES; AND FURTHER INCLUDING $300,000 IN FEDERAL CONGESTION
MITIGATION AND AIR QUALITY (CMAQ) FUNDS PREVIOUSLY APPROPRIATED FOR
THE PURPOSE BY RESOLUTION NO. 2002-24923, DATED JULY 10, 2002; AND
$1,240,000 IN THE FY 2002-03 PARKING ENTERPRISE FUND BUDGET, SUBJECT TO
APPROVAL ON SEPTEMBER 26,2002.
WHEREAS, the Electrowave Shuttle Service to South Beach has been in operation since
January 1998, and has carried over 4.1 million passengers to date; and
WHEREAS, the Fiscal Year 2002-03 Operating Budget is proposed at $2.31 million (the
Budget); and
WHEREAS, the City is being asked to contribute $1.24 million in FY 2002-03 Parking Enterprise
Fund Budget, or 53.68% of the total Budget; these local funds also include the required matching
funds to the FDOT and FTA contributions to the operating budget; and
WHEREAS, the additional 46.32% will come from $350,000 in FOOT funds for the
Washington Route; $300,000 in Federal Congestion Mitigation and Air Quality (CMAQ) funds for
both routes; $300,000 in Concurrency Mitigation funds; $100,000 in projected fare collection
revenues; and $20,000 in projected on-board advertising revenues; and
WHEREAS, the above mentioned funds need to be appropriated for the Budget purposes.
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 adopt a Fiscal
Year 2002-03 Operating Budget for the Electrowave Shuttle Service, in the amount of $2,310,000;
and appropriate a funding packet which includes $350,000 in Service Development Program funds
from the Florida Department of Transportation (FOOT), for the Washington Route; $300,000 in
Concurrency Mitigation Program funds-South Beach; $100,000 in projected fare collection
revenues; $20,000 in projected on-board advertising revenues; and further including $300,000 in
Congestion Mitigation and Air Quality (CMAQ) funds previously appropriated for the purpose by
Resolution No. 2002-24923, dated July 10, 2002; and $1,240,000 in the FY 2002-03 Parking
Enterprise Fund budget, subject to approval on September 26, 2002.
PASSED AND APPROVED this the 26th
,2002.
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CITY CLERK
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. FORDECUTION
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A Resolution adopting a FY 2002-03 Electrowave Operating Budget, in the amount of $2,310,000;
appropriating a funding packet which includes $350,000 in FOOT Joint Participation Agreement (JPA)
funds, $300,000 in Concurrency Mitigation funds-South Beach, $100,000 in projected fare revenues, and
$20,000 in on-board advertisement revenues; and further including $300,000 in Congestion Mitigation Air
Quality (CMAQ) funds, and $1,240,000 in the FY 02/03 Parking Enterprise Fund budget, subject to
approval on September 26, 2002.
Issue:
Shall the City Commission adopt the FY 2002-03 Electrowave Operating Budget?
Item Summary/Recommendation:
On September 25, 2001, the Mayor and City Commission gave the City and MBTMA an opportunity for one
additional year of funding, either to bring the Electrowave Shuttle Service back to its original level of
effectiveness and success, or have the project terminated by September 30, 2002. MBTMA reports, and
the Administration confirms, that the goals and standards established by the City for the Service have been
met or exceed during the first six-month period (April 2002), and either maintained or improved upon in the
last six months (September 2002). The proposed FY 2002-03 Electrowave Operating Budget, in the
amount of $2,310,000, is $156,064 larger than last year's, mainly due to the addition of a 12th shuttle
vehicle (hybrid) to the existing fleet and service (approx. April 2003), plus Union and FTA-required cost of
living increases. The City remains the major funding partner in the Service, by providing 53.68% of the total
budget funds, utilizing Parking Enterprise funds. Oue to the fact that MBTMA did bring the service back into
full operation, and met or exceeded the established FY 2001-02 performance standards, the Administration
recommends approval of the FY 2002-03 Electrowave Operating Budget, at $2,310,000.
Advisory Board Recommendation:
IN/A
Financial Information:
Source of
Funds:
FY 2002-03 Parking Enterprise
Bud et
FOOT
CMAQ
158.6217. CMF-SB (already approprtd.)
Fare Revenue
Advertising. Revenue
Approved
1,240,000
D
Finance Oept.
350,000
300,000
300,000
100,000
20,000
2,310,000
City Clerk's Office Legislative Tracking:
I Amelia Johnson
Sign-Ofts:
Department Director
City Manager
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AGENDA ITEM
DATE
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'1-,26 -() 2..
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
CITY OF MIAMI BEACH
To:
From:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez \ rJ-#~
City Manager () tJ
Date: September 26, 2002
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, ADOPTING A FISCAL YEAR 2002-03 OPERATING
BUDGET FOR THE ELECTROWA VE SHUTTLE SERVICE, IN THE
AMOUNT OF $2,310,000; APPROPRIATING A FUNDING PACKET WHICH
INCLUDES $350,000 IN SERVICE DEVELOPMENT PROGRAM FUNDS
FROM THE FLORIDA DEPARTMENT OF TRANSPORTATION (FDOT),
FOR THE WASHINGTON ROUTE; $300,000 IN CONCURRENCY
MITIGATION FUNDS-SOUTH BEACH; $100,000 IN PROJECTED FARE
COLLECTION REVENUES; $20,000 IN PROJECTED ON-BOARD
ADVERTISING REVENUES; AND FURTHER INCLUDING A $300,000 IN
CONGESTION MITIGATION AND AIR QUALITY (CMAQ) FUNDS
PREVIOUSLY APPROPRIATED FOR THE PURPOSE BY RESOLUTION
NO. 2002-24923, DATED JULY 10, 2002; AND $1,240,000 IN THE FY
2002-03 PARKING ENTERPRISE FUND BUDGET, SUBJECT TO
APPROVAL ON SEPTEMBER 26, 2002.
ADMINISTRATION RECOMMENDATION
Subject:
Adopt the Resolution
ANALYSIS
Approximately one year ago, the Administration brought to the City Commission's attention
the fact that the Electrowave Shuttle Service (the Project) had deteriorated considerably
from March to September 2001, as a direct result of poor maintenance of buses and
batteries, and lack of an appropriate and effective administrative structure. As a result, the
City Commission set in motion several corrective actions, among them:
o That an Administration-proposed Immediate Action Plan for the Electrowave Shuttle
Service be implemented, in an attempt to correct the problems and bring the service
back to an optimum level, within a period of six months, beginning October 1, 2001.
o That the Electric Transit Vehicle Institute (ETVI) be hired to perform the expert
mechanical maintenance services needed by the electric shuttle vehicles and batteries,
replacing the City's Fleet Management Division.
Proposed FY 2002-03 EW Operating Budget
September 26, 2002
Page 2
o Completely outsource the general management for administration and operations of the
Project to the Miami Beach Transportation Management Association (MBTMA),
beginning October 1, 2001.
o Hold MBTMA 100% accountable and liable for the success of the project; and
o That MBTMA report back to the City Commission within a period of six months.
o Via Resolution No. 2001-24586, dated September 21, 2001, which adopted the FY
2001-02 Electrowave Operating Budget, the City and MBTMA were given the
opportunity for one additional year of funding, either to bring the shuttle service back
to its original level of effectiveness and success, or have the project terminated by
September 30,2002.
RESULTS: At a Commission Workshop for the Electrowave, held on April 4, 2002,
MBTMA made the required six-month presentation/report, based on the performance
standards established by the City, as part of the MBTMA contract. The following 6-month
and 12-month summary will fully describe the progress made by MBTMA and ETVI in
bringing the Electrowave service back to its original level of effectiveness and success:
Previous MBTMA MBTMA
CITY / MBTMA 04/04/02 09/25/02
Performance Standards FY 2000-01 6-Mos.Report 12-Mos.Est.
Goal Exceeded
Reduce tows to less than 5 per week 3455 tows/year 5 tows in 03/02 less than 1 tcmNleek
Improve shuttle availability to 75% Half of fleet Improved by 80% Goal Exceeded
of existing fleet (11 vehicles) unavailable One bus unavailable 11 vehs.avail.
Improve headways from previous 14-20 minutes 5-10 minutes Goal Exceeded
14-20 minutes to 10-12 minutes 5-10 minutes
Evaluate/adjust service hours to meet 1 Oam-4am Wknd Up to 1 :00 a.m.only Goal Met
ridership demands/efficiency of service 8am-2am Wkday (Continued process)
Improve communication between Minimum to no Fully accomplished Goal Met
operations and fleet maintenance communication
Conduct quarterly evaluations of Accomplished. Goal Met
transit operator & fleet maintenance Never done Quarterly reports
and meet w/City to review results submitted. Submitted
Develop & Implement marketing plan Under development Stage I implemented
Increase ridership by 35% by 9/30/02 32,000 in 09/01 46,450 in 03/02 46,999 in 08/02
45% increase Goal Exceeded
Proposed FY 2002-03 EW Operating Budget
September 26, 2002
Page 3
Based on the above report, the Administration recommends the continuation of the
Electrowave Shuttle Service, and the approval of both the proposed FY 2002-03 funding
sources and of a Project operating budget, as follows:
1. PRESENT AND PROPOSED FUNDING SOURCES
FY 2001-02
Funding
Sources
Proposed
FY 2002-03
Funding Sources
Parking Enterprise Funds - FY 02/03 Budget
Congestion Mitigation Air Quality (CMAQ) Program
FOOT Service Development Program/Collins Route.
FOOT Service Development Program/Washington Route
Concurrency Mitigation Funds-South Beach
Projected fare collection revenues
Projected on-board advertising revenues
$1,283,936
300,000
150,000
139,993
150,000
110,007 *
20,000
$2,153,936
$1,240,000
300,000
-0-
350,000
300,000
100,000
20.000
$2,310,000
* Farebox revenue this year will be approx. $80,000 due to impacts of weather and diminished tourism.
2. PRESENT AND PROPOSED OPERATING BUDGETS:
Expenditure Categories
FY 2001-02
Budget
Projected
FY 2001-02
Costs
Proposed
FY 2002-03
Budget
Red Top Transportation (transit operator contract)
ETVI (shuttle vehicle/battery maintenance contract)
MBTMA administrative costs
Insurance on shuttle vehicles (12 vehicles)
Miscellaneous operating costs
Information services (Marketing)
Electricity to charge batteries
Propane for AlC, and diesel fuel
Communications (shuttle radios)
Uniforms for shuttle drivers
Telephones
FY Budget Totals:
$1,038,992
688,844
144,250
91,350
80,000
30,000
35,000
33,000
5,000
6,000
1,500
$2,153,936
$1,035,000
670,000
144,250
87,000 (11vs.)
80,000
30,000
32,000
60,000
o
4,800
100
$2,140,150
$1,124,900 * 1
690,000 * 2
160,000 * 3
92,000 * 4
82,000 * 5
40,000 * 6
35,000
80,000 * 7
o * 8
6,000
100
$2,310,000
Asterisk ( * ) Items -Justifications for the budget line items which propose cost increases:
1* The Red Top Transportation, Inc. contract, at $1,124,900, includes the following:
o Union wages for drivers @ $8.40/hr., as required by FTA, plus cost of living
increases for dispatchers and supervisors.
o Bus service 365 days/year, 7:30 a.m. to 1 :30 a.m., 8 vehicle-service, 2 in rotation
service, 1 being maintained.
o Addition of a 12th bus (electric-hybrid) to route service, beginning April 2003.
Proposed FY 2002-03 EW Operating Budget
September 26, 2002
Page 4
2.* The Electric Transit Vehicle Institute (ETVI) contract for maintenance services to shuttle
vehicles, batteries and equipment, at $690,000, includes the following:
o One full-time maintenance manager
o Four (4) senior mechanics and 3 mechanic helpers (1 mechanic/1 helper per shift)
o One 40-hour clerk
o Maintenance schedules based on 4-day shifts /1 O-hour days
o Cost of living increases
o $35,000/year Insurance (garage keepers, general liability, umbrella policy, errors
and omissions).
o Upgrade old A1C lines/compressors in original buses (reduce propane consumption)
3.* MBTMA administrative costs, at $160,000, include the following:
o Cost of living salary increases for four (4) employees.
o Additional duties regarding FTA funds (preparation/filing of Section 15 Reports and
electronic filing of all applications for earmarked funds).
o Costs of hiring an independent auditor for the transferred EW Budget funds.
A subsequent Item on this City Commission Agenda includes a General Management
Agreement with MBTMA.
4.* Insurance on 12 Shuttle Vehicles, at $92,000. As approved by Resolution No. 2001-
24544, dated July 18, 2001, the City intends to purchase one electric/hybrid vehicle for
testing purposes of the Electrowave project, bringing the shuttle fleet to 12 vehicles.
5.* Miscellaneous Operatino Costs, at $82,000. This category includes several items:
o $30,000 agreement with the Parking Department/Loomis Fargo for the collection,
processing and depositing of transit fares generated by the route services;
o Debit-card reader maintenance and service; minor professional service contracts.
o County-required permits, fees and inspection services for 12 shuttle vehicles.
o Preparation of ridership surveys, market analysis and other services, as needed.
o City internal service costs (water and sewer service, property maintenance, etc.) to
be billed to MBTMA by the respective City divisions.
o Other miscellaneous unforeseen expenses.
6.* Marketino (Public Information), at $40,000, includes the following additional items:
o New informational signage for the shuttle stops.
o Develop w/merchants a Park & Shop program for Washington Ave / Lincoln Road.
o Focused marketing with hoteliers to increase the Collins Route ridership.
7.* Propane and diesel fuel, at $80,000, for the following reasons:
o Increased propane costs due to the fact that the entire shuttle fleet is back to full
operation.
o Diesel fuel is now needed for tow truck, forklift, and one electric-hybrid vehicle.
o The rate per gallon of propane has increased, and a surcharge is being added per
refill of the propane storage tank in Terminal Island.
Proposed FY 2002-03 EW Operating Budget
September 26, 2002
Page 5
8.* Shuttle Radios: The cost of shuttle radios has been included as part of the transit
operator contract (Red Top Transportation).
Since 1998, when the Electrowave Service began operations, the City has learned that
there is a very limited number of outside sources available to help fund transit operations,
and these sources are shrinking each year, due to competition from other Miami-Dade
communities which are also implementing their local shuttle services. In the future,
additional sources of recurring operating funds may become available to the City,
iflwhen the following happens:
CJ Miami-Dade voters approve a half-cent increase on the sales tax, in November 2002.
q The City will soon become a "designated recipient" of Federal Transit Administration
(FT A) funds. As a result of the new status, but beginning in FY 2004-05, two additional
sources of FTA operating funds will become available, potentially bringing $400,000 to
$500,000 in recurring funds to the Electrowave operating budget.
CJ At the same time, the CMAQ program funds may no longer be available to the City, due
to the fact that Miami-Dade County has attained Federal air quality standards.
Based on the above-mentioned facts, it is essential that the City accept and assume its
role as the maior contributor to the Electrowave operating budget, if the shuttle service is
to continue to operate and prosper into the future, while doing the following for the City:
CJ Helping reduce traffic impacts on the City's limited roadway network which, in places,
is already at capacity or beyond capacity;
CJ Being an essential component of a comprehensive parking and transportation system.
CJ Helping the City meet concurrency requirements and prevent a building moratorium,
due to the 'transit credits' received for providing a circulator/park-and-ride service.
Transit systems worldwide are not self-supporting. Excepting for the San Francisco
Trolley and the Tokyo Subway system, no other transit system worldwide is self-
supporting. Any and all unaffiliated local circulator services, such as the Electrowave, are
expensive to operate, since they do not possess the infrastructure and fleet size needed
to generate substantial recurring revenues, or the outside funding opportunities that full-
scale transit agencies command, due to the extent of the services provided. Therefore,
the Electrowave requires full commitment on the City's part for continued operations and
funding.
CONCLUSION: MBTMA and its sub-contractors did bring the Electrowave shuttle
vehicles, batteries, and route service back to the original level of efficiency and
effectiveness, within the six-month period established one year ago by the Mayor and City
Commission. Therefore, the Administration recommends approval of the FY 2002-03
Electrowave Operating Budget.
JMG/RM/FB/PW/JC/JJ/AJ
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