2004-25705 Reso
RESOLUTION NO. 2004-25705
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING
THE FISCAL YEAR (FY) 2004-05 OPERATING BUDGET FOR THE
LOCAL SHUTTLE SERVICE, PREVIOUSLY KNOWN AS
ELECTROWAVE, IN THE AMOUNT OF $2,058,935; AND
APPROPRIATING A FUNDING PACKET WHICH INCLUDES $500,000
IN PEOPLE'S TRANPORTATION PLAN FUNDS; $40,000 IN JOINT
PARTICIPATION AGREEMENT FUNDS FROM THE FLORIDA
DEPARTMENT OF TRANSPORTATION; $438,935 IN CONCURRENCY
MITIGATION/SOUTH BEACH FUNDS; $80,000 IN PROJECTED FARE
COLLECTION REVENUES; AND $1,000,000 IN FY 2004-05 PARKING
FUND BUDGET, WHICH IS BEING APPROPRIATED BY A SEPARATE
RESOLUTION.
WHEREAS, the Local Shuttle service to South Beach, previously known as
Electrowave, has been in operation since January 1998, and has carried over 5.4 million
passengers to date; and
WHEREAS, the Fiscal Year (FY) 2004-05 Operating Budget is proposed at
$2,058,935, which is $160,365 less than the previously adopted budget; and
WHEREAS, the City is being asked to contribute $1 million from the FY 2004-05
Parking Fund Budget, or $48,57% of the total Budget, which funds are being
appropriated by a separate Resolution; these local funds include the required local
match to the People's Transportation Plan (PTP) and Florida Department of
Transportation (FOOT) funds contribution to the shuttle operating budget; and
WHEREAS, the remaining 51.74% or the Operating Budget will come from
$500,000 in PTP funds; $40,000 in FOOT funds; $438,935 from Concurrency
Mitigation/South Beach funds; and $80,000 from projected fare collection revenues,
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 the Fiscal Year 2004-05 Operating Budget for
the Local Shuttle service, previously known as Electrowave, in the amount of
$2,058,935, and appropriate a funding packet which includes $500,000 in People's
Transportation Plan funds; $40,000 in Joint Participation Agreement funds from the
Florida Department of Transportation; $438,935 in Concurrency Mitigation/South Beach
funds; $80,000 in projected fare collection revenues; and $1,000,000 from the FY 2004-
05 Parking Fund Budget, which is being appropriated by separate Resolution,
PASSED AND ADOPTED this 28th
,2004.
A~~f(Yv~
CITY CLERK
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APPROVED AS TO
FORM & LANGUAGE
& FO EXECUTION
~~31>Y
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
A Resolution adopting the FY 2004-05 Local Shuttle (Electrowave) Operating Budget, in the amount of
$2,058,935.
Issue:
Shall the City Commission adopt the FY 2004-05 Local Shuttle Operating Budget?
Item Summary/Recommendation:
The Administration has been in discussions with Miami-Dade Transit (MDT) for several months regarding
potential opportunities to transfer The Local Shuttle service operations to the County. A"Final Draft" titled
"Analysis of Costs and Issues Associated with the Assumption of Miami Beach Local Transit Circulator"
dated September 9, 2004, prepared for MDT by the Center for Urban Transportation Research (CUTR),
estimates a total annual cost of $2,451,715 for MDT to assume the local shuttle service in FY 2004-05, as
compared to the City's proposed budget of $2,058,935. The Administration has requested to meet with
County officials to attempt to get a final answer as to whether or not the County is willing to assume the
responsibility for operating the local shuttle and explore other options that might be available to increase
operating efficiency, Even if an agreement is reached with the County, it would take several months to fully
transfer operations of the Local shuttle,
Pending a final outcome of our discussions with the County, we recommend approval of the FY 2004-05
Operating Budget in the amount of $2,058,935, to operate a system with (6) diesel buses and one (1)
electric bus at peak times, on the existing shuttle route, If no agreement is reached with the County, the
Administration will recommend an award for the purchase of diesel buses from the lowest and best bidder
from an existing bid solicitation, The Administration recommends budget approval and appropriation of the
funding sources listed below,
Advisory Board Recommendation:
I N/A
Financial Information:
Source of
Funds:
$1,000,000
500,000
40,000
438,935
80,000
$2,058,935
480,0050,000491 Parking Budget.
187,8000,312910 PTP funds
183,8000,334404 FDOT/JPA
158.8000,341226 Conc,Mitg/SoBe
Projected 04-05 fare collection revs,
islative Trackin
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AGENDA ITEM
DATE
Ri k
1-d.~-oC(
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www,miamibeachfl,gov
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez ~
City Manager --<-y L
Date: September 28, 2004
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH FLORIDA, APPROVING AND ADOPTING THE FISCAL
YEAR (FY) 2004-05 OPERATING BUDGET FOR THE LOCAL SHUTTLE
SERVICE, PREVIOUSLY KNOWN AS ELECTROWAVE, IN THE AMOUNT
OF $2,058,935; AND APPROPRIATING A FUNDING PACKET WHICH
INCLUDES $500,000 IN PEOPLE'S TRANSPORTATION PLAN FUNDS;
$40,000 IN JOINT PARTICIPATION AGREEMENT FUNDS FROM THE
FLORIDA DEPARTMENT OF TRANSPORTATION; $438,935 IN
CONCURRENCY MITIGATION FUNDS; $80,000 IN PROJECTED FARE
COLLECTION REVENUES; AND $1,000,000 FROM THE FY 2004-05
PARKING FUND BUDGET, WHICH IS BEING APPROPRIATED BY
SEPARATE RESOLUTION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
Pursuant to recommendations made in 2003 by the Center for Urban Transportation
Research (CUTR), the Commission directed the Administration to accomplish several
objectives regarding the City's Local Shuttle service, previously known as Electrowave.
These objectives included the following:
1. That the Miami Beach Transportation Management Association (MBTMA) begin an
advertising effort to increase shuttle ridership. Since then the following has been done:
o Pink transit information cylinders were installed at all bus stop locations
displaying the Washington Route service map, stop locations and their relation
to local destinations and attractions.
o New shuttle brochures were printed, distributed and promoted to the local hotels
and other gathering points for residents, tourist, and visitors.
o As a result, shuttle ridership has grown by 16.4% over last year's, from 645.836
in 2002-03 to 751,708 in 2003-04. This means an average 2,143 passengers
per day.
2. That the City/MBTMA hire a professional marketing firm to research and make
recommendations as to a new identity for the City's shuttle service.
The recommendations made by "re:group" for shuttle re-branding were submitted to the
Neighborhoods Committee on July 26, 2004, and adopted by City Commission on July
28, 2004. It included the following:
o A new brand identity (The Local) and logo;
o New brochure design with route map;
o A uniform exterior bus design incorporating the new name and logo;
o Design of new shuttle signage; and
o Web site home page design.
Scraping and painting of four (4) shuttle buses, and printing of new shuttle brochures
and signage to reflect the new identity are covered by funds provided for the purpose in
the FY 2003-04 shuttle budget.
3. That the City purchase diesel buses to ultimately convert the electric bus fleet into a
diesel fleet, utilizing existing Federal Transit Administration (FTA) Section 5309 funds.
Pending the final outcome of our discussions with the County, a contract award
recommendation will be placed on the next Commission Meeting agenda for
consideration.
o Invitation to Bid No. 21-03/04 for Six (6) Small Low Floor Transit (Diesel) Buses
was issued on February 13, 2004, with a budget not to exceed $1,629,444. Five
vendors responded, and an award is pending by the City Commission at a future
date.
o The six new buses will come equipped with automatic passenger counters
(APCs), voice enunciator system, and GPS tracking system;
o Also included in the bid amount are the central hardware and software program
associated with the APC system, which will be installed at dispatching.
4. That automatic passenger counting (APC) equipment be installed in the existing electric
buses. After the $30,000-plus central hardware and software for the APC system are in
place at the dispatching and MBTMA offices, as part of the diesel bus purchase, will we
be able to purchase and install counters in the existing electric buses. The estimated
cost of the APC equipment and installation is $14,850 per unit.
5. Request that Miami-Dade Transit (MDT) consider assuming full responsibility over the
City's Washington Route service; consider merging this route with MDT's Route W to
further enhance mobility options by providing a comprehensive transit service to the
entire South Beach community; and submit a proposal to the City for consideration and
possible action.
The Administration has met with the County/MDT administrative staff, respectively in
2002, 2003, and 2004, In July 2004, MDT hired the Center for Urban Transportation
Research (CUTR) to examine the issues involved and submit report/recommendations
to MDT.
The final CUTR draft report to MDT, titled "Analysis of Costs and Issues Associated
with the Assumption of Miami Beach Local Transit Circulator," dated September 9,
2004, estimated a total annual cost of $2,451,715 for MDT to assume the
Electrowave's Washington Route service in FY 2004-05, as compared to the City's
proposed budget of $2,058,935.
The Administration has requested to meet with County officials to attempt to get a final
answer as to whether or not the County is willing to assume the responsibility for
operating the local shuttle and to explore other options to improve systems efficiency.
Even if an agreement is reached with the County, it would take several months to fully
transfer operations of the local shuttle. If no agreement is reached with the County, the
Administration will recommend an award to the lowest and best bidderforthe purchase
of six (6) diesel buses funded by the Federal Transit Administration.
The proposed FY 2004-05 Budget supports a system operating six (6) diesel buses and
one (1) electric bus at peak times on the existing Washington Avenue route, therefore,
pending a final outcome of discussions with the County and in order to avoid service
interruption in South Beach, the Administration recommends approval ofthe FY 2004-
05 Operating Budget in the amount of $2,058,935 and the adoption of the following
funding sources:
PRESENT AND PROPOSED FUNDING SOURCES
FY 2003-04
Adopted
Fund Sources
Projected
FY 2003-04
Revenue
Proposed
FY 2004-05
Funding Sources
Parking Fund
County Transit Surtax Proceeds
FOOT JPA fund balancelWashington Route
Insurance Revenue (from one burned-down bus)
Concurrency Mitigation Funds-South Beach
Projected fare collection revenues
$1,100,000
400,000
230,000
84,200
443,800
78.000
$2,336,000
$1,000,000
500,000
230,000
84,200
443,800
80.000
$2,338,000
PRESENT AND PROPOSED OPERATING BUDGETS:
Expenditure Categories
FY 2003-04
Budget
Projected
FY 2003-04
Costs
$1,000,000
500,000
40,000
-0-
438,935
80.000
$2,058,935
Proposed
FY 2004-05
Budget
Transit Operator Contract
ATTI (Shuttle Vehicle/Battery Maintenance Contract)
MBTMA General Management Contract
Insurance on shuttle buses
Garage Keepers/Equipment Insurance
Professional Services (Miscellaneous)
Public Involvement (Marketing)
Propane for AlC, and Diesel Fuel
Electricity to Charge Batteries
Employee Park & Ride
Uniforms for Shuttle Drivers
Internal Services Charges for Water/Sewer
Telephones
Cost to scrape/repaint shuttle buses
$1,120,000
676,000
165,000
100,000
-0-
65,000
50,000
70,000
35,000
-0-
6,000
2,000
-0-
47.000
$2,336,000
$1,120,000
672,000
165,000
100,000
-0-
62,000
50,000
70,000
32,000
-0-
6,000
2,000
-0-
47.000
$2,326,000
$1,177,000 * 1
411,391 * 2
169,950 * 3
-0-
61,000 * 4
65,000 * 5
60,000 . 6
78,864
13,000
14,130*7
6,000
2,000
600
-0-
$2,058,935
Asterisk ( * ) Items - Justifications for the above-mentioned budget line items:
* 1. The proposed operating contract with First Transit, at $1,177,000, includes the
following items:
o Bus service 365 days, 7:30 a.m.-1 :30 a.m., 7 buses in active service with an
additional 3 in service rotation for preventative maintenance and battery change.
o Union wages for drivers (FT A requirement); and cost of living increase for
dispatchers and supervisors;
o Shuttle bus liability and physical damage insurance at $71,223 covering up to 12
buses, including to-be-purchased diesel buses. The City and MBTMA are additional
insured. In previous years, this insurance cost had been provided for under a
separate Insurance line item. However, the City moved it under the transit operator
(First Transit) contract because it could get better rates than last year's, due to the
volume discounts available to First Transit.
o Safety and customer courtesy training; and
o Communication, dispatching and tracking equipment.
* 2. Note that the Advance Transportation Technology Institute (ATTI) contract line item at
$411,391 for the maintenance services to shuttle vehicles, batteries and equipment has
gone down considerably (from $676,000 in 2003-04). This is due to the following factors:
o The $61 ,000 Garage Keepers/Equipment Insurance, previously included here, has
been moved to the Insurance line item of this budget;
o A decrease of approximately $173,609 in inventory and spare parts needed, for the
following reasons:
· A TTI has maintained the fleet at peak level of efficiency and effectiveness,
therefore lessening the vehicle/battery repair effort and decreasing the
inventory and spare parts needed to conduct such repairs;
· The five (5) electric buses to be removed from service will be stripped for
parts that will be kept as inventory. Per FT A rules, the City must operate the
four (4) newest electric buses for the remaining two fiscal years;
· No need to procure additional electric batteries, which have been purchased
under the 2003-04 A TTI budget; and
· The impending purchase of 6 diesel buses, under full warranty for one year.
o The A TTI contract includes 1 full time maintenance manager, 5 mechanics, 3
helpers, 1 clerk. Maintenance schedules are based on 4-day shifts/1 O-hour days. It
also includes monthly driver/mechanic training; preventative maintenance and repair
of the shuttle fleet, including tow truck and forklifts; supplies, plus exterior and
interior shuttle cleaning.
* 3. MBTMA's general management contract for operations and administration of the
shuttle project, at $169,950. A subsequent item on this City Commission Agenda includes
a professional services agreement with MBTMA. The contract includes a 3% cost of living
salary increase for 4 office employees.
* 4. Insurance, at $61,000. It includes Garage Liability/Keepers Maintenance Insurance
($38,000), and Equipment & Related Vehicle Service Insurance ($23,000), which have
been separated from the ATTlline item. The City and MBTMA are additional insured.
* 5. Professional Services, at $65,000. This category includes miscellaneous contracts
and services, as follows: A $25,000 agreement with the Parking Department for
processing and depositing of transit fare collections (these activities requiring bonded
employees; equipment to count, sort, and package coins; dedicated vault and safe; and
handling of bank process); contract with Loomis Fargo for pickup and transport offarebox
revenues to Parking Department; debit card reader maintenance and service; smaller
contracts for services; County-required annual permits, fees and inspection services for the
shuttle vehicles; and other miscellaneous unforeseen expenses. The costs associated with
the fare collection process were amply discussed with and approved by the City
Commission prior to the adoption of the 25-cent fare for the shuttle service.
* 6. Information Service (Marketing) at $60,000 to fund an intensified marketing program.
It includes the on-going updating/installation of new informational signage at each shuttle
stop and parking lot/garage; development/implementation of a Park-and-Shop program
with merchants along Washington Avenue and Lincoln Road, along with an elementary
school program and published advertising. It also includes the printing of re-branded
shuttle brochures and signage.
* 7. Employee Park & Ride, at $14,130, is a new budget line item made necessary by the
construction of a new water pump station at Terminal Island, which has eliminated a large
number of on-site parking spaces. It includes the shuttling of employees between Watson
Island and Terminal Island, parking fees at Watson Island, driver wages, and insurance
required to provide the service.
Funding Sources: Since 1998, when the shuttle service began operations, the City has
been aware of the limited number of outside sources available to help fund local transit
services, and the ever growing competition from other Miami-Dade municipalities which
have implemented their own local shuttle projects, based on the success of our local
circulator model.
The following remain our only sources of outside funding:
1. $40,000 in FDOT/JPA funds will be available to the shuttle service through June 30,
2005, the end of the State-established 3-year funding period.
2. The only new and recurring source is the voter-approved People's Transportation Plan
(PTP or surtax) funds. The Miami Beach share of these funds is approximately $2.5
million a year, of which $500,000 (or 20%) is required to be utilized for transit projects.
Per County Ordinance No. 02-116, these funds are to supplement, not replace, the
City's funding support to its own transit project.
Per the Center for Urban Transportation Research from the University of South Florida, the
Electrowave shuttle service remains the most successful transit circulation system among
dozens in South Florida. To date, the following information is pertinent to the
Electrowave's successful operations in FY 2003-04:
o The projected FY2003-04 ridership is 751 ,700. This means 105,872 more passengers
than the previous fiscal year (645,836), or a 16.4% increase;
o This 751 ,700 figure will surpass the 750,232 from FY 1999-2000, when the 25-cent fare
was implemented;
o The average daily ridership is 2,143 passengers.
o The fare collection in FY 2003-04 is projected at $80,000, in spite of the County-
implemented free fares for seniors (Golden Passport), disabled (STS Pass), and retired
and active military and their family members (Military Pass);
o The route service remains 100% operational; and
The Administration recommends approval of the Resolution.
JG/RM/FB/RH/ AJ
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