2008-26899 ResoRESOLUTION NO. 2008-26899
A RESOLUTION OF MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING THE ANNUAL FISCAL YEAR (FY) 2008/09
APPROPRIATION FOR THE CAPITAL RENEWAL AND REPLACEMENT FUND
BUDGET, IN THE AMOUNT OF $2,218,974.
WHEREAS, the Mayorand 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 FY 2004/05, in the amount of $1,347,070; the FY 2007/08 amount was $3,266,096; 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 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 8, 2008, the Mayor and City Commission tentatively adopted the
proposed millage rate of 5.6555 mills, which included 0.1083 mills dedicated for capital renewal and
replacement; and
WHEREAS, the City Manager's proposed operating Budget sets forth the recommendation for
the FY 2008/09 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 FY
2008/09 Appropriation for the Capital Renewal and Replacement Fund Budget, in the amount of
$2,218,974, as more specifically provided in Attachment "A" hereto.
PASSED and ADOPTED this 17th day of September. 2008.
ATTE T:
City Clerk
Robert Parcher
M yor
Matti Herrera Bower
APPROVED AS TO
FORM & LANGUAGE
& FOR CUTION
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COMMISSION ITEM SUMMARY
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A resolution of•the Mayor and City Commission of The City of Miami Beach, Florida, adopting the Fiscal
Year (FY) 2008/09 budget for the Capital Renewal and Replacement Fund in the amount of $2,218,974.
Cey Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating
Ensure well-maintained facilities
Ensure well-maintained infrastructure
Supporting Data (Surveys, Environmental Scan, etc.): The City's performance target for well-
maintained facilities is to have a Facility Condition Index of .15 or better, i.e. the value of deferred
maintenance for a facility should be equal to or less than .15 (or 15%) of the current replacement value of
the facility. Based on inspections of facility conditions, several City facilities do not currently meet this
target, most notably, Fire Stations 1 and 3.
Iccup~
Shall the Mayor and City Commission adopt the attached resolution which adopts the FY 2008/09 budget
for the Capital Renewal and Replacement Fund?
Item 5ummarylKecommenaaiion:
In FY 2004/05, the City established 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 and adopted stringent criteria for allowable uses of the Fund. These criteria require that the
Commission approve specific projects to be funded each year.
On September 8, 2008, the Mayor and City Commission tentatively adopted the proposed millage rate of
5.6555 mills, which included 0.1083 mills dedicated for capital renewal and replacement; and providing
$2,218,974 for Capital Renewal and Replacement needs.
Adopt the resolution specifying FY 2008/09 project appropriations for the General Fund Renewal and
Replacement.
Adviso Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 $2,218,974 General Fund millage of 0.1083 dedicated for Capital
Renewal and Re lacement
2
OBPI .Total:.`
Financial Impact Summary:
Clerk's Office Legislative
Sian-Offs:
I Department Director. I Assistant City Manager I .City Manager I
ACsEWQA ITEM ~~ Q
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager ~~
DATE: September 17, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING THE ANNUAL FISCAL YEAR (FY)
2008/09 APPROPRIATION FOR THE CAPITAL RENEWAL AND
REPLACEMENT FUND BUDGET IN THE AMOUNT OF $2,218,974.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
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 capital improvement
program, in addition to funding from Miami-Dade County's General Obligation Bond
Program, there has been a significant increase in additional maintenance needs.
In FY 2004/05 the City established a separate reserve with a dedicated source of funding to
be used exclusively for facility renewal and replacement of capital items. 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.
The dedicated millage for Renewal and Replacement established in FY 2004/05 was 0.126
mills. This millage increased to 0.182 in fiscal years 2005/06 and 2006/07 and decreased to
0.1382 mills in FY 2007/08. The FY 2008/09 Proposed Budget further reduces the millage
to 0.1083 to generate $2,218,974, which our calculations estimate will be adequate to fund
our capital renewal and replacement needs.
CONCLUSION
The City Commission should adopt the attached Resolution which adopts the annual FY
2008/09 appropriations for the Capital Renewal and Replacement Fund Budget in the
amount of $2,218,974.
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ATTACHMENT A
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CITY OF MIAMI BEACH
FY 2008109 RENEWAL AND REPLACEMENT PROJECTS
PROJECT NAME I DESCRIPTION
POLICE STATION BUILDING
Replace communications & security: fire alarm system 125,000
Replace two passenger elevators and lifts (Partially Funded FY 08 - Total 273,913
5499,719 less $225,806 previous funding)
Re Ip ace Police Parking Garage: fire alarms tys em & exit Signs 59,321
TOTAL POLICE STATION BUILDING 458,234
CITY HALL BUILDING
Replace Service Elevator: Total Project $201,484 Less Funded FY 06
$88,000 113,484
Re lace Halon System in Roof Radio Room 30,000
TOTAL CITY HALL BUILDING 143.484
777 17th STREET BUILDING
Re lace fire sprinklers 144,681
TOTAL 777 17TH STREET BUILDING 144,681
21st STREET COMMUNITY CENTER BUILDING
Replace clay roof tiles 75,000
1
TOTAL 21st STREET COMMUNITY CENTER BUILDING 75,000
FIRE STATION 1
Replace exterior windows 208,876
TOTAL FIRE STATION 1 208,876
FIRE STATION 3
Replace Exterior Windows 103,500
Replace roof 294.474
TOTAL FIRE STATION 3 397,974
SOUTH SHORE COMMUNITY CENTER
Replace lighting & branch circuitry, emergency lights & power system and
50,000
exit si ng_s
TOTAL SOUTH SHORE COMMUNITY CENTER 50,000
VARIOUS BUILDINGS
FLAMINGO POOL FACILITY
Pool Deck Reparr and Replacement -Assessment 30,000
NORTH SHORE OPEN SPACE PARK
Replace Pavilions in North Shore Open Space Park 150,000
VARIOUS
Install backflow preventors at various locations to comply with Code
35,000
TATUMIMUSS PARK BUILDINGS
Domestic water distribution upgrade 50,000
TOTAL MISC. REQUESTS_ -VARIOUS BUILDINGS 265,000
SUBTOTAL 1,743,249
CONTINGENCY
TOTAL 475J25I
2,218,974_