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RESOLUTION NO. 2006-26334
A RESOLUTION OF MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING THE ANNUAL FISCAL YEAR (FY) 2006/07
APPROPRIATIONS FOR THE CAPITAL RENEWAL AND REPLACEMENT FUND
BUDGET, IN THE AMOUNT OF $3,266,096.
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 offunding
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 FY 2004/05, in the amount of $1 ,347,070; the FY 2005/06 amount was $2.529,563; 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 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 Miami-Dade County General Obligation Bond Program, there has been 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 6, 2006, the Mayor and City Commission tentatively adopted the
proposed millage rate of 7.374 mills, which included 0.182 mills dedicated for capital renewal and
replacement; and
WHEREAS, the City Manager's proposed operating Budget sets forth the recommendation for
the FY 2006/07 Capital Renewal and Replacement 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 2006/07 Appropriation for the Capital Renewal and Replacement Fund Budget, in the amount of
$3,266,096, as more specifically provided in Attachment "A" hereto.
PASSED and ADOPTED this 21 st day of September 2006.
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ATTEST:
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Robert Parcher
Vice-Mayor Jerry Libbin
I"\rT n_ w _..) AS TO
FORM & LANGUAGE
& FOR EXECUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of The City of Miami Beach, Florida, adopting the Fiscal
Year (FY) 2006/07 budget for the Capital Renewal and Replacement Fund, in the amount of $3,266,096.
Ke Intended Outcome Su orted:
Ensure expenditure trends are sustainable over the long term
Improve the City's overall financial health and maintain overall bond rating
Ensure well-maintained facilities
Ensure well-maintained infrastructure
Issue:
Shall the Mayor and City Commission adopt the attached resolution which adopts the FY 2006/07 budget
for the Capital Renewal and Replacement Fund?
Item Summarv/Recommendation:
The Proposed FY 2006/07 General Fund Operating Budget includes 0.182 mills and provide $3,266,096
for Capital Renewal and Replacement needs. Adopt the Resolution.
Advisory Board Recommendation:
I
Financial Information:
Source of
Funds:
$3,266,096
General Fund millage of
0.182 dedicated for Capital
Renewal and Re lacement
em
OBPI
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
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MIAMI BEACH
AGENDA ITEM
DATE
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MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager / ~_~
September 21 , 2006 () ()
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING THE ANNUAL FISCAL YEAR (FY)
2006/07 APPROPRIATIONS FOR THE CAPITAL RENEWAL AND
REPLACEMENT FUND BUDGET IN THE AMOUNT OF $3,266,096.
TO:
DATE:
SUBJECT:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
Miami Beach has continued to expand its facilities and infrastructures 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 are
deferred many years beyond their useful life. Further, as a result of the ongoing $400 million
capital improvement program, in addition to approximately $100 million from Miami-Dade
County's General Obligation Bond Program, there has been a significant increase in
additional maintenance needs.
To ensure that renewal and replacement of general fund assets is 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 exclusively 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.
In FY 2004/05, the funding of this restricted account was accomplished by adding to the
General Operating Millage, all of the 0.126 mills Debt Service Millage reduction. In FY
2005/06, 0.056 mills of the total 0.156 mills reduction in debt service millage, was added for
a cumulative Capital Renewal and Replacement millage of 0.182 and a net decrease to the
total operating millage of 0.1 00 mills. The FY 2006/07 Budget proposes keeping the Capital
Renewal and Replacement millage constant at 0.182 mills but reducing the operating and
debt service millages for a total net reduction of 0.400 mills.
As assessed values in the City continue to rise over the upcoming years, the existing millage
will generate additional renewal and replacement funds. In addition, 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, and the potential to increase the General Fund
Renewal and Replacement millage further, if needed.
ANALYSIS
The following chart illustrates the impact of the Capital Renewal and Replacement millage in
FY 2006/07:
"Dedicated Millage for Capital Renewal and Replacement"
Tax Levy
FY FY FY FY Inc/(Dec)
2003/04 2004/05 2005/06 2006/07 From FY
2005/06
General Operating 7.299 7.299 7.299 7.192 (0.107)
Renewal & Replacement 0.000 0.126 0.182 0.182 0.000
Total Operating Millage 7.299 7.425 7.481 7.374 (0.107)
Debt Service 0.874 0.748 0.592 0.299 (0.293)
Total 8.173 8.173 8.073 7.673 (0.400)
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 was $2.53 million. FY
2006/07 proposed funding is $3,266,096, a cumulative increase of approximately $1.9
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 2006/07, as
included in the Proposed Operating Budget for FY 2006/07, are provided in the attached
resol ution.
CONCLUSION
The City Commission should adopt the attached Resolution which adopts the annual FY
2006/07 appropriations for the Capital Renewal and Replacement Fund Budget in the
amount of $3,266,096.
JMG:KGB:JC
Attachment A
CITY OF MIAMI BEACH
FY 2006/07 RENEWAL AND REPLACEMENT PROJECTS
Project
PROJECT NAME 1 DESCRIPTION Appropriation
POLICE STATION BUILDING
Backflow Preventor for Fire Sprinkler System 26,000
(new code requirement)
TOTAL POLICE STATION BUILDING $26,000
CITY HALL BUILDING
RestroomslCity Hall
1st, 3rd, 4th Floor Restroom Renewal to include:Retrofit of two single stall restrooms to
ADA Compliancy and Partition to ADA Compliancy and Partition Replacements and
Formica Countertop - Replacements in restrooms (delaminating) 27 yrs old 42,000
Floor Finishes: Carpet Aged and Deteriorated
Carpet Aged and deteriorated - 10 years old - needs replacement 147,805
Loading Dock Electric Roll-up Door Replacement and Doors and Hardware Lock
Replacement 34,100
Loading Dock Electric Roll-up Door Replacement - Doors are 27 yrs old and are
damaged and hard to operate; Mica from doors are delaminated or chipped and
hardware locks need to be working properly to meet Fire Code.
Water Riser Replacement 27,214
Replace 3 inch water riser which feed restrooms on 1 st, 2nd, 3rd & 4th Floors. The
galvanized pipe is over 25 yrs old and must be replaced to avoid water damage.
Roof Openings: Skylight Deteriorated and Leaking 35,562
TOTAL CITY HALL BUILDING $286,681
HISTORIC CITY HALL BUILDING
Elevator Renovation - Phase II 150,000
Carpet & Floor Tile Replacement 30,654
Common areas carpet & floor tiles are old, worn and need replacement.
Water Closet & Flush Valve Replacement 27,000
Water closets & flush valves need to be replaced with more efficient equipment to
insure water conversation and reduce maintenance problems.
TOTAL HISTORIC CITY HALL BUILDING $207,654
CITY OF MIAMI BEACH
FY 2006/07 RENEWAL AND REPLACEMENT PROJECTS (CONTINUED)
Project
PROJECT NAMEIDESCRIPTION Aoorooriation
777 17th STREET BLDG
Replacement of air handler, controls and duct system 558,000
Replacement of air handler, controls and duct system. Air handlers have outlived their
useful life. Duct system and outside air equipment are inadequate.
TOTAL 777 17TH STREET BUILDING $558,000
SCOTT RAKOW YOUTH CENTER
Ceiling, Lighting and Flooring 175,000
Renovate Toilets on 1st and 2nd Floors for ADA Compliancy 165,000
TOTAL SCOTT RAKOW YOUTH CENTER $340,000
NORMANDY SHORES CLUBHOUSE
Window Replacement 200,000
Existing windows are original from 1941 and are deteriorated due to age and termite
damage and do not meet current wind load code requirements
HV AC Replacement 1"50,000
Beyond useful life
'.
Electrical Wiring and Service Replacement 200,000
Existing outdated and needs to be brought into Code Compliance
New Ceiling, Flooring & Walls 2'50,000
Existing has severe water and termite damage
TOTAL NORMANDY SHORES CLUBHOUSE $800,000
CITY OF MIAMI BEACH
FY 2006/07 RENEWAL AND REPLACEMENT PROJECTS (CONTINUED)
PROJECT NAME I DESCRIPTION
VARIOUS BUILDINGS
Flamingo Park
Paint Pool & Replace fencing
Repair I Replace Water Playground surface
PAL Building
Replace Tile Flooring
Waterproof Building including patching and painting
Fire Stations 1 & 3
Replace Carpeting including Vinyl tile areas and cove base
Boardwalk Bench Replacement
Replace 33 Benches on the Boardwalk have deteriorated from heavy use and
environment. (@$800ea.)
Doors & Hardware
Mica from doors delaminating or chipped and hardware locks need to be working
properly to meet the Fire Code.
South Shore Community Center - Electrical Service & Distribution System
The electrical service and distribution equipment are aged beyond their useful life and in
critical condition. The service conduit and associated feeders are corroded and the
main switchboards have open wire troughs. Install a new metered main switchboard,
chiller switchboard and associated subpanels and feeders.
Replacement of Hurricane Shutters in City Hall and Police Building - Phase 1
Shutters cannot be repaired, are worn and are unsecurable. Dade County approved
shutters should be installed to replace 27 year old shutters.
TOTAL MISC. REQUESTS - VARIOUS BUILDINGS
CONTINGENCY (10%)
TOTAL RENEWAL AND REPLACEMENT FUNDING
Project
Appropriation
60,000
25,000
30,000
40,000
84,000
26,400
34,650
196,638
230,000
$726,688
321,073
$3,266,096