LTC 116-2004 Presentation on maintenance funding made to joint GO Bond Oversight Committee and budget advisory committee
CITY OF MIAMI BEACH
Office of the City Manager
Letter to Commission No. 116-2004
m
To:
From:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez 0.. V"~
City Manager 0 0
PRESENTATION ON MAINTENANCE FUNDING MADE TO JOINT GENERAL
OBLIGATION BOND OVERSIGHT COMMITTEE AND BUDGET ADVISORY
COMMITTEE MEETING
Date: May 11, 2004
Subject:
On May 3,2004, the Administration made a presentation to a joint meeting of the General
Obligation Bond Oversight Committee and the Budget Advisory Committee. The Chair of
the Budget Advisory Committee, Deede Weithorn, had requested that the Administration
make a presentation regarding the City's plans to fund maintenance on new capital
projects. Ms. Weithorn's purpose was to identify the discussion of maintenance funding as
an issue that the City should be actively addressing as projects are being implemented as
opposed to after completion.
Several departments worked together in creating the presentation, which outlined the
various categories and amounts of infrastructure the City had in its inventory. The
presentation then outlined how much infrastructure would be added as a result of the
current Capital Improvement Program (CIP), such as another 19 miles of Stormwater
Collection pipes, almost 3,000 palms and 7,000 trees, and 22 miles of curbing. An outline
of the various maintenance needs, schedules, and existing costs was provided.
The Committees were told that while the City currently budgets approximately $14.6 million
for maintenance on an annual basis, more funding is needed to properly maintain all
infrastructure at an appropriate level of service. Rising costs due to such factors as union
contracts, personnel costs and the costs for contractual services lead to needing additional
funding to continue maintaining the infrastructure at the current level of service. The
Administration advised the Committees that the current maintenance performed on the
City's infrastructure was not sufficient, and should be increased, which would also lead to a
need for additional funding.
The Administration outlined some steps that are being taken to identify how much more
funding should be budgeted for maintenance, such as implementing a Pavement
Management System and a Work Order Management System. The City is also hiring a
consultant to study the City's buildings and structures, and their various components (such
as HVAC systems, elevators, roofs, etc.) to determine their baseline conditions. The
consultant will advise the City of any immediate maintenance needs, a schedule of
maintenance for each building and component, and recommended replacement schedules.
Letter to Commission
May 11, 2004
Re: PRESENTATION on Maintenance Funding made to Joint General Obligation Bond Oversight
Committee and Budget Advisory Committee Meeting
Page 2 of 2
As new projects are being implemented, such as the improvements included in the Right-
of-Way (ROW) Infrastructure Improvement Program, the projects are being designed with
maintenance needs, costs and schedules in mind. These efforts should allow the City to
determine more appropriate and realistic schedules and costs for maintenance in the
future.
Several mechanisms that had been suggested in the past for funding the additional
maintenance costs were identified. They included the "Millage for Maintenance" concept
presented during the Fiscal Year 2004 budget process that was not adopted, as well as a
referendum for dedicated maintenance funding that was presented to the voters in the mid-
1990s but voted down. The Administration pointed out that the Redevelopment Areas
(RDA) could now fund certain kinds of maintenance for structures within the RDA
boundaries. Additionally, the expiration ofthe South Pointe RDA in Fiscal Year 2006 would
generate a large infusion offunding into the City budget, part of which is being earmarked
for maintenance funding. However, the Administration had more work to do to determine
the necessary level of funding and what the right mechanisms to generate the funding
would be.
There was an active discussion by the Committee members regarding the presentation,
current maintenance levels of service, current funding for maintenance and the City's plans
for future funding and levels of service. Overall, it seemed that the Committees were
pleased with the City's efforts at identifying the appropriate levels of service and funding for
maintenance, both for current and future infrastructure.
A copy of the presentation is attached.
Attachme t
~Im
c: xecutive Staff
epartment Directors
F:ICAPI\$aIlIKRISTINITH Correspondence\JMG LTC re Maintenance Funding Presentation.doc
LTC NO. 116-2004
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