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Home My WebLink About2005-26008 Reso RESOLUTION NO. 2005-26008 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE ANNUAL FISCAL YEAR (FY) 2005/06 APPROPRIATIONS FOR THE CAPITAL RENEWAL AND REPLACEMENT FUND BUDGET, IN THE AMOUNT OF $2,529,563. WHEREAS, the Mayor and Commission adopted Resolution No. 2004-25697 on September 28, 2004, establishing a capital renewal and replacement reserve to provide a dedicated source of funding for capital renewal and replacement projects that extend the useful life of General Fund assets, including the initial annual transfer from the General Fund to the Capital Renewal and Replacement Fund, for Fiscal Year 2004/05, in the amount of $1 ,347,070; and WHEREAS, the Mayor and Commission adopted Resolution No. 2005-25832 on February 23, 2005, amending Resolution No. 2004-25697, to provide for more stringent criteria for allowable uses of the Fund; and WHEREAS, the City currently maintains a vast number and variety of buildings, structures and facilities, hundreds of acres of recreational and open space, significant public art works, and hundreds of miles of streets, sidewalks and alleys; and WHEREAS, as a result of the City's ongoing $400 million Capital Improvement Program, and the recently approved Miami-Dade County General Obligation Bond Program, there will be a significant additional increase in capital renewal and replacement needs; and WHEREAS, annual capital renewal and replacement needs compete for General Fund resources with other needs, such as public safety, with the result that capital renewal and replacement needs may be deferred; and WHEREAS, on September 8 2005, the Mayor and City Commission tentatively adopted the proposed millage rate of 7.481 mills, which included 0.182 mills dedicated for capital renewal and replacement; and WHEREAS, the City Manager's proposed operating Budget sets forth recommendation for FY 2005-06 Capital Replacement and Renewal Fund appropriation amounts for specific projects. NOW, tHEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby adopts the Fiscal Year 2005/06 Appropriation for the Capital Renewal and Replacement Fund Budget, in the amount of $2,529,563, as more specifically provided in Attachment "A" hereto. PASSED AND ADOPTED THIS 21st DAY 0 fiCtr f~ CITY CLERK Robert Parcher David Dermer APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 91/j7'os- Date CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY lD ..... Condensed Title: Resolution adopting the Fiscal Year (FY) 2005/06 budget for the Capital Renewal And Replacement Fund, in the amount of $2,529,563. Issue: Shall the Mayor and City Commission adopt the attached resolution which adopts the FY 2005/06 budget for the Capital Renewal And Replacement Fund? Item Summary/Recommendation: I Adopt the Resolution Advisory Board Recommendation: I Financial Information: Amount to be expended: Source of Amount Account Approved Funds: 1 [iJ~. $2,529,563 General Fund millage 0.182 2 3 4 Total Assistant City Manager City Manager AGENDA ITEM R7 () DATE 9-J/-()~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission DATE: September 21 , 2005 FROM: Jorge M. Gonzalez) . ~ City Manager 0 p/V 0 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE ANNUAL FISCAL YEAR (FY) 2005/06 APPROPRIATIONS FOR THE CAPITAL RENEWAL AND REPLACEMENT FUND BUDGET IN THE AMOUNT OF $2,529,563. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND Miami Beach has continued to expand its facilities and infrastructure in response to the desire of so many who wish to live, work, and play in our vibrant, tropical, and historic community. The City currently maintains a vast number and variety of buildings, structures and facilities, hundreds of acres of recreational and open space, significant publiC art pieces, and hundreds of miles of streets, sidewalks and alleys. However, existing funding levels do not provide for major capital renewal and replacement projects and these projects often are deferred many years beyond their useful life. Further, as a result of the current $400 million capital improvement program, in addition to approximately $100 million from Miami-Dade County's recently approved General Obligation Bond Program, there will be a significant increase in additional maintenance needs. Over the next couple of years, we will be bringing on line approximately 15 additional miles of sidewalks and 22 miles of curbing; 1,924 additional streetlights and 1,043 additional uplights (a 30% increase combined); new parks still to be designed (Flamingo, South Pointe, Collins, Altos Del Mar, the Garden Center, Fairway, Muss and Washington parks) - all of which will be competing with general fund services as well as with rising costs due to such factors as union contracts, personnel costs and the cost for contractual services. To ensure that renewal and replacement of general fund assets are funded and addressed when needed, the City has established a separate reserve with a dedicated source of funding. The FY 2004/05 adopted budget established this reserve to be used exclusivelv to provide for renewal and replacement of capital items related to our facilities and infrastructure over and above the routine maintenance already included in the budget. Project specific appropriations from the fund are reviewed and approved each year by the City Commission as part of the budget process, and are used exclusively for those capital expenditures that help to extend or replace the useful life of our facilities. Capital Renewal and Replacement Fund September 21 , 2005 Page 2 The funding of this restricted account is accomplished by adding all or a portion of the amount of the Debt Service Millage reduction to the General Operating Millage. In FY 2004/05 the dedicated millage for Renewal and Replacement was 0.126. In FY 2005/06 the reduction in debt service millage is 0.156 of which 0.056 was added for a cumulative Capital Renewal and Replacement millage in FY 2005/06 of 0.182 and with a net decrease to the total operating millage of 0.100 mills. As assessed values in the City continue to rise over the upcoming years, the cost of debt service on outstanding general obligation bonds will be spread over a larger value resulting in a decrease in debt service millage each year. If the City were to continue this process, thereby, adding the decrease in debt service millage each year to the general operating millage until the amount of the millage associated with maintenance reached 0.5 mills, it would generate (based on today's value of a mill) approximately $7.5 million for additional infrastructure maintenance each year. Once this level is reached, the total millage will continue to decrease providing room for future GO bond issuances should the Commission and the community wish to pursue future issues. ANAL YSIS The following chart illustrates the impact of the Capital Renewal and Replacement millage in FY 2005/06. II Dedicated Millage For Capital Renewal and Replacement" Tax Levv FY FY FY 2003/04 2004/05 2005/06 Incl(Dec) General Operating 7.299 7.299 7.299 0.000 Renewal & Replacement 0.000 0.126 0.182 0.056 Total Operating Millage 7.299 7.425 7.481 0.056 Debt Service 0.874 0.748 0.592 (0.156) TOTAL 8.173 8.173 8.073 (0.100) The FY 2004/05 adopted budget established this reserve with first year funding in the amount of $1.347 million. In FY 2005/06, the funding for the reserve is $2.53 million, an increase of approximately $1.2 million. The millage usage and project specific appropriations for the Capital Renewal and Replacement Fund are reviewed and approved each year by the City Commission as part of the budget process. The recommended project specific appropriations for FY 2005/06, as included in the Proposed Operating Budget for FY 2005/06, are provided in the attached resolution. ATTACHMENT A CITY OF MIAMI BEACH FY 2005/06 CAP IT AL RENEWAL AND REPLACEMENT FUND FY 2005/06 PROPOSED CAPITAL RENEWAL AND REPLACEMENT R&R PROJECT NAME / DESCRIPTION FUNDING POLICE STATION BUILDING Replace 6 Air Handlers $108,900 20 years old. Replacement due to end of useful life. Generator Motor Control Center Replacement 71,500 17 yrs old. Beyond useful life out of sequence. Police Station Community Room and South Stairwell Glass Block Replacement 467,500 Deterioration of the Police Station Glass Block, installed with construction in 1987, is causing water intrusion into the building's Community Room and stairwells and deterioration of the reinforcing steel. The replacement will improve weather-tight integrity of the building and conform to new impact resistant glass code requirements Replace Equipment at Police Gun Range 100,000 Beyond Useful Life TOTAL POLICE STATION BUILDING 747,900 HISTORIC CITY HALL BUILDING Replace 6 Air Handlers $108,900 20 years old. Replacement due to end of useful life. Historic City Hall Elevator (2) Renovation and Electrical Upgrade 165,000 Elevators and most of their mechanical operating equipment were built in 1927. TOTAL HISTORIC CITY HALL BUILDING 273,900 CITY HALL BUILDING Air Duct System Replacement and Installation of Filtration & Pre-cooling System 84,700 27 year old outside air duct system replacement and installation of filtration and pre-cooling system. Duct system is internally corroded Electrical Upgrades 73,150 Replace 27 year old of Transformers - Main Breakers Replacement per Fire Dept & NFPA 110 Generator need to be tested under load month. Replace Fire Pump Controller & Two Transformers - Fire Safety City Hall Main Elevator Renovation & Electrical Upgrade 88,000 The mechanical contact controller is no longer manufactured and replacement parts are hard to obtain The elevator is frequently out of service. The digital controller utilizes less electricity TOTAL CITY HALL BUILDING 245,850 777 17TH STREET BLDG Water & Sewer Pipe Replacement & Domestic Water Pump Upgrade 110,000 The domestic water system at the 777 Building is rusted, aged and deteriorating. The pumps must be replaced due to age and relocated where they will operate more efficiently. TOTAL 77717TH STREET BUILDING 110,000 CITY OF MIAMI BEACH FY 2005/06 CAPITAL RENEWAL AND REPLACEMENT FUND (CONTINUED) FY 2005/06 PROPOSED CAPITAL RENEWAL AND REPLACEMENT R&R PROJECT NAME / DESCRIPTION FUNDING SCOTT RAKOW YOUTH CENTER. (Part of the total Phase II CIP project) Elevator Replacement $93,000 Beyond Useful Life Water SealinglWeatherproofing 49,500 Need to prevent water damage to the building Air Handler & Cooling Tower 102,850 30 year old air handler # 2 replacement due to excessive corrosion Cooling Tower #2 is a Protec fiberglass tower with moderate ultraviolet degradation on outer shell. The tower support is dangerously corroded and one of the support legs is in danger of collapsing Air Handler #1 Replacement 77,000 30 year old air handler # 1 replacement due to excessive corrosion Fire Alarm System Replacement 25,000 Beyond Useful Life Swimming Pool Filtration System 150,000 Beyond Useful Life TOTAL SCOTT RAKOW YOUTH CENTER 497,350 VARIOUS BUILDINGS Boardwalk Light Replacement 321,733 Replace lights and Iightshields due to age, new state requirements and environmental impacts. 27th, 46th & 53rd Street Showers 55,000 Upgrade to ADA Standards Showers due to poor condition and proper ADA path-of travel Commission Chambers Upgrades Replace 10 year old electric door - weatherproof walls, incl. re-installation of carpeting on walls 29,150 21 st St. Recreation Center 28,000 Backflow Preventor & Fire Sprinkler (New Fire Code Requirement) TOTAL MISC. REQUESTS - VARIOUS BUILDINGS 433,883 CONTINGENCY 220,680 GRAND TOTAL $2,529,563