LTC 130-2018 Municipal Parking Transaction - Financial ServicesMIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC #
130-2018
LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members of he City Com ssion
FROM: Jimmy L. Morales, City Manager
DATE: March 8, 2018
i
SUBJECT: MUNICIPAL PARKING TRANS CTION — FINANCIAL SERVICES —
NORTH BEACH TOWN CENTER EVELOPMENT
The Parking Department issued an Invitation to Quote (ITQ) to seek financial
services to review the proposed transaction for disposition of City of Miami Beach
Municipal Parking Lot 80 (located on the SE corner of 71st Street and Byron
Avenue - Folio: 02-321 1-002-0950) and Lot 84 (Located at 6964 Harding Avenue
- Folio: 02-321 1-002-0910) in exchange for air rights on a separate lot, which are
to be conveyed to the City for the purpose of City's construction of a City garage
of up to 270 spaces.
The consultant selected to perform this analysis was Walker Consultants.
The consultant was instructed to prepare an analysis of whether the proposed
transaction will have a material adverse impact on the Net Revenues of the
Parking System.
Attached please find the completed report for your consideration.
If you should have any questions, please contact Saul Frances, Parking Director via
email or at extension 6483.
c: Kathie Brooks, Assistant City Manager
John Woodruff, Chief Financial Officer
Marcia Monserrat, Special Projects Coordinator
JLM/KGB/SF
f: \ping\$man\rar\soul\walker study 2018 Itc.docx
•WALKER
CONSULTANTS
December 29, 2017
Mr. Jimmy L. Morales, City Manager and
Mr. Saul Frances, Director
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: Municipal Parking Transaction — Financial Services
ITQ # 06 -30 -17 -PARKING -SF
Walker Project #15-2220.00
Dear Messrs. Morales and Frances:
4904 Eisenhower Boulevard, Suite 150
Tampa, FL 33634
813.888.5800
walkerconsultants.com
(Sent via e-mail: saulfrances@miamibeachfl.aov)
Walker is pleased to submit this assessment on the disposition of two municipal parking Tots located in North
Beach and the subsequent impact on the net income of the City Parking System. This assessment represents our
analysis and conclusions, and is intended to assist the City with various impacts associated with the transaction.
We thank you and appreciate the opportunity to be of service to the City of Miami Beach. Please do call or email
if there are any questions regarding our work.
Sincerely,
WALKER CONSULTANTS
Jim Corbett, CAPP
Consultant
JMC:Ier
BUILDING ENVELOPE, CONSULTING FORENSIC RESTORATION. PARKING DESIGN. PLANNING
111 I ui u I
Financial Analysis
Walker Project: 15-2220.00
BUILDING ENVELOPE
CONSULTING
FORENSIC RESTORATION
PARKING DESIGN
PLANNING
Municipal Parking Transaction
ITQ # 06 -30 -17 -Parking -SF
Miami Beach, Florida
December 29, 2017
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
WALKER
CONSULTANTS
jeWALKER
CONSULTANTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION 1
Proposed Term Sheet 2
Bond Resolution 3
NET INCOME 5
Operating Revenues 5
Operating Expenses 8
Net Income Summary 9
DISPOSITION IMPACT 10
LIST OF TABLES AND FIGURES
Exhibit 1: 71st Street Town Center Development Site with North Beach... 1
Exhibit 2: 71st Street Town Center Development — Parcel A and Parcel B 2
Exhibit 3: Parking System Long -Term Debt Summary by Year 3
Exhibit 4: Parking System Aggregate Maturities of Long -Term Debt 4
Exhibit 5: Five -Year Revenues Net of Sales Tax — Municipal Lots P80 and P84 5
Exhibit 6: Five -Year Parking Citation Revenues — Municipal Lots P80 and... 6
Exhibit 7: Five -Year Revenue Totals — Municipal Lots P80 and P84 7
Exhibit 8: Five -Year Operating Expense Totals — Municipal Lots P80 and P84 8
Exhibit 9: Five -Year Net Income - Municipal Lots P80 and P84... 9
Exhibit 10: Parking System Enterprise Fund — Fiscal Year End Summary... 10
WALKER CONSULTANTS 1 1
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
WALKER
CONSULTANTS
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
EXECUTIVE SUMMARY
The City of Miami Beach Parking Enterprise Fund generated $15,852,169 in operating income effective Fiscal
Year Ended, September 30, 2016. After depreciation, nonoperating revenues and expenses, and transfers out
were factored, the Fund showed a change in net position of $3.4 million'.
Parking System Enterprise Fund — Fiscal Year End Summary (September 30, 2016)
2016
Operating Revenues $51,499,302
Operating expenses, excluding depreciation $35,647,133
Operating income before depreciation $15,852,169
Depreciation ($5,973,576)
Nonoperating revenue $4,058,273
Nonoperating expenses ($1,361,533)
Capital contributions $0
Transfers out ($9,215,478)
Change in net position $3,359,855
Source: City of Miami Beach Financial Report Fiscal Year Ended September 30, 2016
The disposition of Municipal Lots P80 and P84 suggests a peak fiscal year (FY15) net income loss of $77,303.11,
representing a per space annual income loss of $931.36 for the combined 83 total spaces.
Five -Year Net Income - Municipal Lots P80 and P84 Combined
P80/84 FY17* FY16 FY15 FY14 FY13
Revenues
P80/84
Expenses
Transient $67,715.38 $70,136.60 $74,547.47 $64,484.54 $46,944.56
Monthly $20,802.84 $15,248.55 $22,542.04 $18,051.31 $13,650.00
Citation $7,988.00 $7,111.00 $8,031.00 $8,628.00 $8,577.00
Total $96,506.22 592,496.15 5105,120.51 591,163.85 $69,171.56
Utility $2,590.26 2,342.89 $2,545.40 $2,593.17 $2,266.75
EMS $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00
Warranty $1,700.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00
Collection $720.00 $720.00 $720.00 $720.00 $720.00
Sanitation $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00
Maintenance $452.00 $452.00 $452.00 $452.00 $452.00
Total $27,862.26 $27,614.89 $27,817.40 $27,865.17 $27,538.75
P80/84 Income $68,643.96 564,881.26 $77,303.11 $63,298.68 $41,632.81
Per Space $827.04 $781.70 $931.36 $762.63 5501.60
*Unaudited numbers subjected to adjustment
Source: Walker Consultants and City of Miami Beach Finance Department 2017
' City of Miami Beach FY16 CAFR, Page 33
WALKER CONSULTANTS I ii
•WALKER
CONSULTANTS
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
In accordance with the City of Miami Beach Parking Bond Resolution No. 2010-27491, Article VII - Particular
Covenants; Section 713 (b), the City may in any fiscal year sell, lease or otherwise dispose of assets forming a
part of the Parking System in excess of the amount set forth in clause (a) of this Section if, before any such
transfer, there is delivered to the City Manager a report of the Consulting Engineers or the Rate Consultant
demonstrating that the sale, lease or other disposition of the property will not have a material adverse impact
on the Net Revenues and stating his or her reasons therefor.
As demonstrated in the Five -Year Net Income summary, the disposition of Municipal Lots P80 and P84 provides
for an approximate peak fiscal year net income loss of $77,303 from the Parking Fund's operating income
statement. It is Walker's professional opinion that this estimated annual loss of $77,303 will not have a material
adverse impact on the Net Revenues of the Parking System. This opinion is further supported by the results of
the FY16 Fiscal Year End Summary where the Net Revenues of the Parking Enterprise Fund reveals a positive
change in net position, resulting in a dollar amount that is substantially more than this estimated loss of net
income. Subtracting the $77,303 net income loss from the FY16 Operating Income provides an adjusted
Operating Income of $15,774,866. This adjusted amount allows for the Parking Enterprise Fund to continue to
cover planned reductions to the fund balance to cover annual depreciation amounts, annual non-operating
expenses, debt service coverage, and annual transfers out, which includes payments to the General Fund.
To further support an opinion of the usefulness of the assets to be disposed and the uses to be made of any
proceeds of the transaction, Walker understands the terms of the proposed municipal transaction, detailed in
this assessment, provide for the offering of 270± new parking structure spaces (located in an adjacent North
Beach development site) in exchange for the disposition of the 83± spaces located in Municipal Lots P80 and
P84. Walker projects the potential for a positive net income impact if the 270± new parking spaces provide an
annual operating income in excess of $287 per space.
WALKER CONSULTANTS 1 III
0 1 Introduction
WALKER
CONSULTANTS
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
Introduction
The North Beach Town Center Development, LLC ("NBTCD") has expressed interest in developing a mixed-use
project and has approached the City of Miami Beach regarding the exchange of two city parking lots in North
Beach to facilitate the development of municipal parking and workforce housing. The proposed project includes
retail, office, residential and parking on two blocks between Byron and Harding Avenues. The terms of the
transaction require the City to convey its two parking lots to NBTCD and NBTCD to convey to the City a parking
structure with at least 270 spaces above the ground floor retail between Byron and Abbott Avenues. For a visual
representation of the City parking lots and NBTCD properties, please reference the following exhibit.
Exhibit 1: 7151 Street Town Center Development Site with North Beach City Parking Lots
City of
Miami Beach
Lot no
//.
North Beach
Town Center Development
ILItegeAr
•
FeM4St.:i 17 -
Source: Google Maps, Walker Consultants and the City of Miami Beach 2017
The City is requesting a review of the proposed transaction for the disposition of Municipal Parking Lot P80 with
30 spaces located on the SE corner of 71st Street and Byron Avenue (Folio: 02-3211-002-0950) and Municipal
Parking Lot P84 with 53 spaces located at 6964 Harding Avenue (Folio: 02-3211-002-0910).
1 1 Introduction
•WALKER
CONSULTANTS
PROPOSED TERM SHEET
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
The fee ownership on the property between Byron and Abbot Avenues will be divided as follows:
1. Parcel A, which will consist of ground floor retail use, upper floor commercial uses and parking on the
second floor.
2. Parcel B, which will consist of ground floor retail use, the parking garage access ramps and the parking
structure. The parking structure in Parcel B will contain at least 270 parking spaces and may contain
workforce housing on the top of parcel B at the option of the City.
Parcel A and B will be joined together via a Covenant in Lieu of Unity of Title ("CIL") and the City and NBTCD will
join in an Easement and Operating Agreement as required by the CIL. Parcel A will be owned entirely by NBTCD.
Parcel B will have ground floor retail owned by NBTCD and the City will own the parking structure ramp that
starts at the ground floor and the parking structure situated above the ground floor on Parcel B. The parking
structure ramp will also serve as access to NBTCD's parking structure located on Parcel A. NBTCD will pay its
proportionate share of maintaining the access ramp and any other commonly used facilities such as elevators
and stairways, etc. The Easement and Operating Agreement will identify the commonly used facilities and will
provide for easements and cost sharing.' For a visual representation of the relationship between Parcel A and
Parcel B, please reference the following exhibit.
Exhibit 2: 71st Street Town Center Development — Parcel A and Parcel B
Source: Google Maps, Walker Consultants and City of Miami Beach 71' Town Center Development Term Sheet
2 Proposed Term Sheet — 71St Street Town Center Development; City of Miami Beach
2 1 Introduction
-1111 WALKER
CONSULTANTS
BOND RESOLUTION
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
Under Article VII — Particular Covenants; Section 713. - Sale or Other Disposition of the Parking System; the City
shall not sell, lease or otherwise dispose of all or any part of the Parking System, except as provided in Section
709 and this Section.3
Specifically clause (b) states to the extent provided by law, the City may in any Fiscal Year sell, lease or otherwise
dispose of assets forming a part of the Parking System in excess of the amount set forth in clause (a) of this
Section if, before any such transfer, there is delivered to the City Manager a report of Consulting Engineers or
Rate Consultant demonstrating the sale, lease or other disposition of such property will not have a material
adverse impact on the Net Revenues and stating his reasons therefore. In determining whether to render such
report, the Consulting Engineers or Rate Consultant shall consider the usefulness of the assets to be disposed of
to the operations of the Parking System, the uses to be made of any proceeds of sale and the rental income to
be received with respect to any lease thereof.
In addition to the clauses in this Section, no sale, lease or any other disposition of assets of the Parking System
shall be consummated nor shall the proceeds of any such disposition be applied unless prior to such
consummation or application, there shall be delivered an opinion of Bond Counsel to the effect that such
disposition and the application of the proceeds as required herein will have no adverse impact on the exclusion
of interest on any of the Bonds or other System Debt from gross income for Federal income tax purposes. As
provided by the City of Miami Beach Finance Department, the following exhibit details a summary of the Parking
System long-term debt.
Exhibit 3: Parking System Long -Term Debt Summary by Year
2017 1,600,000 4,652,713 6,252,713
2018 1,670,000 4,579,713 6,249,713
2019 1,740,000 4,512,913 6,252,913
2020 1,805,000 4,444,113 6,249,113
2021 1,895,000 4,354,663 6,249,663
2022-2026 10,865,000 20,392,221 31,257,221
2027-2031 13,710,000 17,542,782 31,252,782
2032-2036 17,445,000 13,809,750 31,254,750
2037-2041 22,265,000 8,989,750 31,254,750
2042-2045 22,165,000 2,838,500 25,003,500
Source: City of Miami Beach Finance Department 2017-FY2016 CAFR
3 City of Miami Beach Resolution 2010-27491 Master Parking Bond Resolution
3 1 Introduction
•WALKER
CONSULTANTS
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
In addition to the summary provided in the previous exhibit, the following exhibit details the Parking System
aggregate maturities of long-term debt.
Exhibit 4: Parking System Aggregate Maturities of Long -Term Debt
ries 2010A Series 201
Interest Priv `
2017 1,525,000 402,300 - 1,317,563 75,000
2018 1,590,000 331,550 1,317,563 80,000
2019 1,660,000 267,950 - 1,317,563 80,000
2020 1,725,000 201,550 1,317,563 80,000
2021 1,810,000 115,300 1,317,563 85,000
2022 620,000 24,800 1,170,000 1,317,563 200,000
2023 960,000 1,270,763 1,110,000
2024 1,000,000 1,231,163 1,165,000
2025 1,045,000 1,188,663 1,220,000
2026 1,095,000 1,139,019 1,280,000
2027 1,145,000 1,088,375 1,345,000
2028 1,195,000 1,035,419 1,415,000
2029 1,250,000 980,150 1,485,000
2030 1,310,000 922,338 1,560,000
2031 1,370,000 861,750 1,635,000
2032 1,440,000 793,250 1,715,000
2033 1,510,000 721,250 1,805,000
2034 1,585,000 645,750 1,895,000
2035 1,665,000 566,500 1,990,000
2036 1,750,000 483,250 2,090,000
2037 1,835,000 395,750 2,195,000
2038 1,930,000 304,000 2,300,000
2039 2,025,000 207,500 2,415,000
2040 2,125,000 106,250 2,540,000
2041 4,900,000
2042 5,140,000
2043 5,400,000
2044 5,670,000
2045 5,955,000
8,930,000 1,343,450 27,405,000 21,846,518 58,825,000
2,932,850
2,930,600
2,927,400
2,925,000
2,921,800
2,919,250
2,911,250
2,855,750
2,797,500
2,736,500
2,672,500
2,605,250
2,534,500
2,460,250
2,382,250
2,300,500
2,214,750
2,124,500
2,029,750
1,930,250
1,825,750
1,716,000
1,601,000
1,480,250
1,353,250
1,108,250
851,250
581,250
297,750
62,927,150
1,600,000
1,670,000
1,740,000
1,805,000
1,895,000
1,990,000
2,070,000
2,165,000
2,265,000
2,375,000
2,490,000
2,610,000
2,735,000
2,870,000
3,005,000
3,155,000
3,315,000
3,480,000
3,655,000
3,840,000
4,030,000
4,230,000
4,440,000
4,665,000
4,900,000
5,140,000
5,400,000
5,670,000
5,955,000
95,160,000
4,652,713
4,579,713
4,512,913
4,444,113
4,354,663
4,261,613
4,182,013
4,086,913
3,986,163
3,875,519
3,760,875
3,640,669
3,514,650
3,382,588
3,244,000
3,093,750
2,936,000
2,770,250
2,596,250
2,413,500
2,221,500
2,020,000
1,808,500
1,586,500
1,353,250
1,108,250
851,250
581,250
297,750
86,117,118
Source: City of Miami Beach Finance Department 2017
The remaining sections of this analysis will detail the historical net income of Municipal Parking Lots 80 and 84
and the impact the disposition of these properties have on the Parking System Enterprise Fund.
4 1 Introduction
02 Net Income
•WALKER
CONSULTANTS
OPERATING REVENUES
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
NET INCOME
Historical net revenues for Municipal Lots P80 and P84 have primarily consisted of transient and monthly permit
revenues. To assist with our analysis, Walker requested a five-year history of parking revenues for these
locations. The most recent fiscal year (FY17) shows a revenue, net of sales tax, of $559.02 per space for Lot P80
and a revenue, net of sales tax, of $1,353.73 per space for Lot P84. The following exhibit details the historical
breakdown of transient and monthly revenues, net of sales tax for each lot.
Exhibit 5: Five -Year Revenues Net of Sales Tax — Municipal Lots P80 and P84
FY17*
Budget 1 Actual Revenue
Lot Total 1 Transient Monthly Total Per Space
P80 14,700.00 3,931.96 12,838.50 16,770.46 559.02
P84 70,900.00 63,783.42 7,964.34 71,747.76 1,353.73
*Unaudited numbers subject to adjustment
FY16
Budget 1 Actual Revenue
Lot Total 1 Transient Monthly Total Per Space
P80 22,900.00 6,407.38 10,231.87 16,639.25 554.64
P84 56,400.00 63,729.22 5,016.68 68,745.90 1,297.09
FY15
Budget
Lot Total
P80 24,600.00
P84 49,100.00
Actual Revenue
Transient Monthly Total Per Space
1,687.84 13,645.32 15,333.16 511.11
72,859.63 8,896.72 81,756.35 1,542.57
FY14
Budget 1 Actual Revenue
Lot Total 1 Transient Monthly Total Per Space
P80 17,700.00 8,702.75 12,668.07 21,370.82 712.36
P84 42,400.00 55,781.79 5,383.24 61,165.03 1,154.06
FY1.3
Budget
Lot Total
P80 20,500.00
P84 39,400.00
Actual Revenue
Transient Monthly Total Per Space
9,715.15 12,530.00 22,245.15 741.51
37,229.41 1,120.00 38,349.41 723.57
Source: City of Miami Beach Finance Department 2017
5 I Net Revenue
•WALKER
CONSULTANTS
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
In addition to the transient and monthly revenues, Walker also requested the historical citation revenue
amounts collected for each lot. Due to the procedure used by the Parking Administration to receive and record
parking citation revenues in conjunction with Miami -Dade County, citation totals could not be readily
segregated by Municipal Lots P80 and P84. To assist with this request from the Parking Administration, Walker
received an approximation of citation revenues for each lot based on the percentage of total parking meter
revenues collected by the Parking System. Assuming parking citation revenues collected are a direct correlation
of parking meter revenues generated by location, the information provided has been based upon a similar
percentage for all citation revenues. The following exhibit details this approximation.
Exhibit 6: Five -Year Parking Citation Revenues — Municipal Lots P80 and P84 (Approximation)
Annual Citation Revenue
Lot FY13 FY14 FY15 FY16 FY17
P84 $6,021.26 $6,056.54 $5,638.24 $4,922.19 $5,672.78
Per Space $113.61 $114.27 $106.38 $92.87 $107.03
Lot FY13 FY14 FY15 FY16 FY17
P80 $2,555.97 $2,570.95 $2,393.38 $2,189.48 $2,315.24
Per Space $85.20 $85.70 $79.78 $72.98 $77.17
Source: City of Miami Beach Parking Administration 2017
Upon review of the Parking Administration's parking space rental tracking system for the most recent fiscal
years, it was found that Municipal Lots P80 and P84 did not have any space rental revenue of record.
Historically, most of the space rental requests have come from areas south of North Beach, particularly areas
more suitable for South Beach demand.
With no other revenue categories available for review and consideration, the following exhibit provides a
comprehensive breakdown of all revenue categories associated with Municipal Lots P80 and P84.
6 1 Net Revenue
WALKER
CONSULTANTS
Exhibit 7: Five -Year Revenue Totals — Municipal Lots P80 and P84
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
FY17*
Budget ( Actual Revenue
Lot Total I Transient Monthly Citations Total Per Space
P80 $14,700.00 $3,931.96 $12,838.50 $2,315.00 $19,085.46 $636.18
P84 $70,900.00 $63,783.42 $7,964.34 $5,673.00 $77,420.76 $1,460.77
*Unaudited numbers subject to adjustment
FY16
Budget I Actual Revenue
Lot Total I Transient Monthly Citations Total Per Space
P80 $22,900.00 $6,407.38 $10,231.87 $2,189.00 $18,828.25 $627.61
P84 $56,400.00 $63,729.22 $5,016.68 $4,922.00 $73,667.90 $1,389.96
FY15
Budget I Actual Revenue
Lot Total I Transient Monthly Citations Total Per Space
P80 $24,600.00 $1,687.84 $13,645.32 $2,393.00 $17,726.16 $590.87
P84 $49,100.00 $72,859.63 $8,896.72 $5,638.00 $87,394.35 $1,648.95
FY14
Budget I Actual Revenue
Lot Total Transient Monthly Citations Total Per Space
P80 $17,700.00 $8,702.75 $12,668.07 $2,571.00 $23,941.82 $798.06
P84 $42,400.00 $55,781.79 $5,383.24 $6,057.00 $67,222.03 $1,268.34
FY13
Budget
Lot Total
P80 $20,500.00
P84 $39,400.00
Actual
Revenue
Transient Monthly Citations Total Per Space
$9,715.15 $12,530.00 $2,556.00 $24,801.15 $826.71
$37,229.41 $1,120.00 $6,021.00 $44,370.41 $837.18
Source: City of Miami Beach Finance Department 2017
7 j Net Revenue
•WALKER
CONSULTANTS
OPERATING EXPENSES
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
Operating expenses associated with Municipal Lots P80 and P84 consist of the following itemized costs:
1. Utility charges from Florida Power and Light (FPL) to provide nighttime lighting and electrical power for
the pay stations.
2. Pay station management software costs associated with the operation, communications and
management of data for each station and transaction.
3. Pay station warranty costs to maintain software and service repair needs.
4. Parking lot sanitation costs to ensure regular cleaning and trash removal requirements are met.
5. Pay station collection expenses related to the parking Administration's effort to collect and deposit
monies from parking payment transactions.
6. Parking lot sign maintenance expense to ensure signs are maintained and refreshed as needed.
The following exhibit provides a comprehensive breakdown of all operating expense categories4 associated with
Municipal Lots P80 and P84.
Exhibit 8: Five -Year Operating Expense Totals - Municipal Lots P80 and P84
Lot
P84
P80
Lot
P84
P80
Lot
P84
P80
Lot
P84
P80
Lot
P84
P80
Lot
P84
P80
tot
P84
Per Space
P80
Per Space
FY12
$1,674.87
$574.24
$1,200.00
$1,200.00
$850.00
$850.00
$360.00
$360.00
510,000.00
510,000.00
$226.00
$226.00
FY13 FY14 FY15 FY16
Annual FPL Expense
$1,816.98 $1,869.70 $1,779.41 $1,745.29
$449.77 $723.47 $765.99 $597.60
Annual EMS Pay Station Expense
$1,200.00 51,200.00 $1,200.00 $1,200.00
$1,200.00 $1,200.00 $1,200.00 $1,200.00
Annual Pay Station Warranty Expense
$850.00 5850.00 $850.001 $850.00
$850.00 $850.00 $850.001 5850.00
Annual Pay Station Collection Expense
$360.00 $360.00 $360.00 $360.00
$360.00 $360.00 $360.00 $360.00
Annual Parking Lot Sanitation Expense
$10,000.00 $10,000.00 $10,000.00 $10,000.00
$10,000.00 $10,000.00 510,000.00 $10,000.00
Annual Parking Sign Maintenance Expense
$226.00 $226.00 $226.00 5226.00
$226.00 5226.00 5226.00)
Totals
$14,505.70 $14,415.41 $14,381.29
$273.69 $271.99 $271.35
$13,359.47 $13,401.99 $13,233.60
$445.32 $446.73 $441.12
$14,310.87 $14,452.98
$270.02 $272.70
$13,210.24 $13,085.77
$440.34 $436.19
*Unaudited numbers subject to adjustment
FY17*
51,928.87
$661.39
$1,200.00
$1,200.00
$850.00
$850.00
$360.00
$360.00
$10,000.00
$lo,000.00
$226.00
$226.00
$14,564.87
$274.81
$13,297.39
$443.25
Source: City of Miami Beach Finance Department 2017
4 All operating expense categories are shown as budgeted amounts except for the FPL expense category, which is shown as an actual
amount.
8 1 Net Revenue
•WALKER
CONSULTANTS
NET INCOME SUMMARY
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
The following exhibit details the combined net income for Municipal Lots P80 and P84 as a factor of operating
revenues minus operating expenses, providing for a net income total and net income per space.
Exhibit 9: Five -Year Net Income - Municipal Lots P80 and P84 Combined
P80/84 FY17* FY16 FY15 FY14 FY13
Revenues
P80/84
Expenses
Transient $67,715.38 $70,136.60 $74,547.47 $64,484.54 $46,944.56
Monthly $20,802.84 $15,248.55 $22,542.04 $18,051.31 $13,650.00
Citation $7,988.00 $7,111.00 $8,031.00 $8,628.00 $8,577.00
Total $96,506.22 $92,496.15 $105,120.51 $91,163.85 $69,171.56
Utility $2,590.26 2,342.89 $2,545.40 $2,593.17 $2,266.75
EMS $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00
Warranty 51,700.00 $1,700.00 $1,700.00 51,700.00 $1,700.00
Collection $720.00 $720.00 $720.00 $720.00 $720.00
Sanitation $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00
Maintenance $452.00 $452.00 $452.00 $452.00 $452.00
Total $27,862.26 $27,614.89 $27,817.40 $27,865.17 $27,538.75
?80/84 Income $68,643.96 $64,881.26 $77,303.11 $63,298.68 541,632.81'.
Per Space $827.04 $781.70 $931.36 $762.63 $501.60-
*Unaudited numbers subjected to adjustment
Source: Walker Consultants and City of Miami Beach Finance Department 2017
As shown in the preceding exhibit, the combined net income for Municipal Lots P80 and P84 experienced a peak
income level of $77,303.11 in FY15, representing a per space income of $931.36 for the 83 total spaces. If the
lots are disposed through a property swap, all revenues and expenses become null, except for the $720 annual
collection costs. This operating expense item is the result of an indirect cost allocation from the Parking System,
representing the effort the Parking Administration assigns to the collection of revenues for these specific lots. It
is understood that the disposition of the lots will not reduce Parking System personnel counts.
9 1 Net Revenue
03 Disposition Impact
likWALKER
CONSULTANTS
FINANCIAL ANALYSIS
MUNICIPAL PARKING TRANSACTION
DISPOSITION IMPACT
Walker received a copy of the City of Miami Beach Financial Report for the Fiscal Year Ended September 30,
2016. The report was prepared by the City of Miami Beach Finance Department and included an Independent
Auditor's Report from Crowe Horwath, LLC, a section titled Management's Discussion and Analysis (Unaudited),
the 2016 Financial Statements, and a section titled Required Supplementary Information (Unaudited).
The following exhibit provides a summary of the revenues, expenses and changes in net position for the Parking
System Enterprise Fund as detailed in the Financial Reports.
Exhibit 10: Parking System Enterprise Fund — Fiscal Year End Summary (September 30, 2016)
2016
Operating Revenues $51,499,302
Operating expenses, excluding depreciation $35,647,133
Operating income before depreciation $15,852,169
Depreciation ($5,973,576)
Nonoperating revenue $4,058,273
Nonoperating expenses ($1,361,533)
Capital contributions $0
Transfers out ($9,215,478)
Change in net position $3,359,855
Source: City of Miami Beach Financial Report Fiscal Year Ended September 30, 2016
As demonstrated in Exhibit 9 (Five -Year Net Income), the disposition of Municipal Lots P80 and P84 provides for
an approximate peak fiscal year net income loss of $77,303 from the Parking Fund's operating income
statement. It is Walker's professional opinion that this estimated annual loss of $77,303 will not have a material
adverse impact on the Net Revenues of the Parking System. This opinion is further supported by the results of
the FY16 Fiscal Year End Summary where the Parking Enterprise Fund reveals a positive change in net position,
resulting in a dollar amount that is substantially more than this estimated loss of net income. Subtracting the
$77,303 net income loss from the FY16 Operating Income provides an adjusted Operating Income of
$15,774,866.
To further support an opinion of the usefulness of the assets to be disposed and the uses to be made of any
proceeds of the transaction, Walker understands the terms of the proposed municipal transaction, detailed in
this assessment, provide for the offering of 270± new parking structure spaces (located in an adjacent North
Beach development site) in exchange for the disposition of the 83± spaces located in Municipal Lots P80 and
P84. Walker projects the potential for a positive net income impact if the 270± new parking spaces provide an
annual operating income in excess of $287 per space.
5 City of Miami Beach FY16 CAFR, Page 33
10 1 Disposition Impact