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R-00-0714
J-00-803 9/7/00�! RESOLUTION NO , v ® r� 14 A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO PREPARE AN AMENDMENT TO THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED; FOR CONSIDERATION AT AN ELECTION TO BE HELD ON NOVEMBER 7, 2000, PROPOSING, UPON APPROVAL OF THE ELECTORATE, TO AUTHORIZE THE CITY COMMISSION TO TRANSFER ASSETS OF THE DEPARTMENT OF OFF- STREET PARKING ("DOSP") TO THE CITY OF MIAMI ("CITY"), AND TO ALLOW FOR THE OPERATION, MANAGEMENT AND CONTROL OF "OFF-STREET PARKING FACILITIES OF THE CITY" BY THE CITY, DOSP,'OR A NON-GOVERNMENTAL ENTITY, AT THE DISCRETION OF THE CITY COMMISSION, DETERMINED BY WHICHEVER PROVIDES THE GREATEST EFFICIENCY AND FINANCIAL'RETURN TO THE CITY. WHEREAS, the City Commission of Miami has determined that it is in the best interest of the City of Miami that the City Commission be authorized to transfer the assets of the Department of Off -Street Parking ("DOSP") to the City of Miami, and to allow for the operation, management and control of "off-street parking facilities of the City" by the City, DOSP, or a non-governmental entity, at the discretion of the City Commission, determined by whichever provides the greatest efficiency and financial return to the City; and CITY COMMSSION, MEETING OF S E P - 7.2000 hesowtion No. WHEREAS, the City Commission, after careful consideration of this matter, deems it desirable and in the best interest of the general welfare of the City of Miami and its inhabitants to adopt this Resolution as hereinafter set forth; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Attorney is hereby directed to prepare an amendment to the Charter of the City of Miami, Florida, as,amended, for consideration at an election to be held on November 7, 2000, which, upon the approval of the electorate, authorizes the City Commission to transfer assets of the Department of Off -Street Parking ("DOSP") to the City of Miami ("City"), and to allow for the operation, management and control of "off-street parking facilities of the City" by the City, DOSP, or non-governmental entities, at the discretion of the Commission, determined by whichever provides the greatest efficiency and financial return to the City. Page 2 of 3 U60— Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.'/ PASSED AND ADOPTED this 7th day of. September -,,,1 2000. CITY CLE CORRECTNESS:t- MAYOR l/ If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 3 of 3 � 714 1 CITY OF MIAMI CITY ATTORNEY'S OFFICE MEMORANDUM TO: Mayor and Members of the City Commission FROM: Alejandro Vilarello, City Attorney6— DATE: August 31, 2000 RE: Special City Commission – September 7, 2000 Public Hearing for consideration of proposed Charter Amendments related to the restructure of the Department of Off -Street Parking and the Off -Street Parking Board (J -00 -799/J -00 -796/J -00 -797/J -00-795/J-00-661) Two of the attached resolutions have been drafted pursuant to discussion with the City Manager and from a review of the transcript of the City Commission meeting concerning members of the City Commission's preferences for possible alternative Charter questions related to the structure of the Department of Off -Street Parking ("DOSP")(J-00-799 and J-00-796). The resolutions contain "blanks" which will be clarified after City Commission discussion regarding the number of appointments intended to be made by the City and the effective date of the proposed change. If the Charter question restructuring the DOSP Board is approved to be on the ballot, the City Commission will be required to determine how the balance of appointments will be made and how many members the board will have overall. Also attached are the companion resolutions directing the City Attorney to prepare the legislation placing the question(s) on the ballot (J-00-797 and J-00-795). The Charter question which completely transfers the powers and duties of DOSP to the City was directed to be prepared by Resolution No. 00-710, adopted at the July 27, 2000 meeting, and the proposed resolution placing the question on the ballot is therefor included in this package for City Commission consideration (J-00-661). The questions have a 75 word limit and are set forth on the attached page. W475:BSS c: Carlos A. Gimenez, City Manager Walter J. Foeman, City Clerk Elvi Alonso, Agenda Coordinator 00- 714 PROPOSED CHARTER QUESTIONS RELATED TO THE RESTRUCTURE OF THE DEPARTMENT OF OFF-STREET PARKING AND THE OFF-STREET PARKING BOARD (1) CITY MANAGER DIRECTED QUESTION (J-00-796) [75 Words] "Shall the Miami City Charter be amended to provide, effective , 200_, for the transfer of all assets of the Department of Off -Street Parking (DOSP) to the City of Miami (City), and further amended to allow for the operation, management and control of "off-street parking facilities of the City" by the City, DOSP, or non -City entity, at the discretion of the City, determined by whichever provides the greatest efficiency and financial return to the City?" (2) CITY COMMISSION DIRECTED DRAFT QUESTION (J-00-799) [75 words] "Shall the Miami City Charter be amended to change, effective , 200_, the composition of the Department of Off -Street Parking (DOSP) Board from five members appointed by the Board itself, confirmed by the City Commission (Commission), to: the Mayor as Chairperson of the Board; members appointed by the Commission, and members appointed by those Board members who were Commission appointed; and further amended to change the terms of office of the Board members?" (3) QUESTION DIRECTED TO BE PREPARED PURSUANT TO RESOLUTION NO. 00-710 (J-00-661) [44 words] "Shall the Charter of the City of Miami be amended to delete Section 23 entitled "Department of Off -Street Parking; Off -Street Parking Board," and to transfer the powers, functions and duties of the Department of Off - Street Parking to the City of Miami, effective , 2007 08/24/00 THQ 16:11 FAX 72789,1 2 WILLIAM R. HOUGH& CO. William R. ough & U0 100 Second Avenue South, Suite 800 • St. Petersburg, FL 337014386, (727) 895-8880 • (800) 800-0061 Fax: (727) 895-8895 • • August 24, 2000 Mr. Arthur Noriega Executive Director Department of Off Street Parking 190 N. E. Yd Street Miami, Florida 33132 Dear Art: We have contacted the rating agencies and insurance company regarding the City of Miami's ("City") interest in gaining control of the Department of Off -Street Parking ("Department"). Pursuant to our conversation, it is our understanding that the City is considering either a cash defeasance of the Department's outstanding Series 1998 Bonds, the absorption of the Department by the City or a change in the composition of the Department's Board. As we discussed, a cash defeasance of the bonds would remove the covenants included in the existing bond documents. However, the absorption of the Department by the City or a change in the composition of the Department's Board would result in a review by the rating agencies to determine the financial impact on. the System. Such a review could potentially result in a change in the ratings for Bonds. The Series 1998 Bonds are rated A3 and A- by Moody's and Fitch, respectively, largely due to the positive historical financial operations of the Department and the fact that the Department is a semi -autonomous agency. Although it is difficult for the rating agencies to provide a prospective analysis regarding the effects of an absorption or a change in the composition of the Department's Board, Moody's has indicated that, based on informal discussions, the absorption of the Department by the City would likely cause the bonds to be reclassified as the City's debt, and would likely result in a change in the rating on the Departments Bonds to a rating that more closely reflects the rating of the City which is currently Bal; below investment grade. Moody's further indicated that a change in the composition of the Department's board would require a review of the impact on the System's reserves, flow of funds and capital plan before any determination on this debt's underlying rating. Fitch has indicated that should such a change occur, an analysis of the operations of the System, the Capital Plan and the flow of funds from the System to the City would be conducted to determine the impact on the bond rating. Should the Bonds be downgraded to the current rating of the City, both the Department and the City would realize an increase in the cost of capital for .future debt issuances. More severely, a downgrade of the Bonds may limit the Department and the City's access to capital. MEMBER: NASD/SIPC Investments Since 1962 Q 002 "� � 8 �• bA C.a of Kh t 1= ran • August 24, 2000 Page 2 Bond insurance companies are required to maintain a cash reserve based on the underlying rating of the bonds they insure. Therefore, MBIA has indicated that a ratings downgrade on the Series 1998 Bonds would result in an added expense to their company. MBIA has further indicated that a ratings downgrade on the Series 1998 Bonds as a result of actions taken by the City would prolong their unwillingness to provide bond insurance for any future City of Miami bonds. Should, you have any questions regarding the information contained in this letter, please feel free to call me. WILLIAM R. HOUGH & CO. • Richard Montalbano Senior Vice President Manager of Public Finance RM/ljb cc: Arthur Hertz Albert Manduca Submitted into the public record in tonneL7-00 with 'Item on Walter Foeman 00- 714 Mayor Carollo- Let's go to the other lesser controversial item. Commissioner Sanchez: That would be S-2 then. Mayor Carollo: That would be S-2. I'd like to make this as short as Possible because what I'd like to see is for the Manager — we have until the bt to give to the Clerk of the Courts and the Elections Supervisor any Charter amendments — and, again, I apologize for my voice — any Charter amendment that we want- to place on the ballot, November 7th. What I'd like to do is to meet on the first week of September so we can finalize that, and then anybody that wants to come and talk for, against, say anything, bring whatever, will have plenty of time to do it, but what I think that this body needs to decide is if it wants to give the instructions to the City Attorney to come back to discuss two possible Charter amendments. One is the one that I've discussed, you've been hearing. I think another possibility that has been discussed with me is one that will modify the present Off -Street Parking Authority and that is to change some of the Charter provisions that we have, along with making the board different than what is, where three of the members might be chosen from up here, new ones, and out of the members of the present board, they could decide by themselves which two would like to remain serving, but that's just another idea that I think some.— at least one or more members of the Commission wanted to discuss. My bottom line is that any which way it could be explained to me — I know that the City of Miami is not receiving millions of dollars more every year that we should be receiving from our parking, and I don't care which way- it's going to be done. The bottom line is that I want the City of Miami to be receiving what every other city, major city receives, a fair share of its parking revenues, and that's the bottom line to me. Vice. Chairman Gort: Mr. Mayor? Mayor Carollo: Yes. � �1 a tre 9tl;`�July 27, 2000 on a.✓tlk Birk Vice Chairman Gort: I would like to tell you, as past chairman of Off -Street Parking, the one thing that I'm proud of that organization. If you look at your top executives right now, they're the people that began way at the bottom of it and they've done a tremendous job. I think to make it — and we discussed this before — to make it a City department might not do our — what we're looking at. I think the idea of the board -- having members of the board set by us, I think that will be able to do it. In looking at the numbers, the most profitable in here, it shows the cost to Washington, DC was privatized and the relationship of the cost of expenses, thirty-two percent. Our cost revenue is forty-two percent. So, we're ten percent off in here. And the thing that I would like in the meantime is for — if you all had the chart here -- I think you all should look at the chart here. And you have, for example, Denver. The cost of the expense, per revenue, is only sixteen percent. Dallas is a lot higher, but Denver is fifteen percent and you have Chicago lower also, sixteen percent. You should look at some of those things and see what we can come up with, how we can improve this. The one thing I have always told everyone from way back is, we use the City's sidewalks; we've never been paid for that before, and we should be paid for that now. I believe — we have some very good staff, some very good professionals. We would like to see more revenue come into the City. Mayor Carollo: Well, what — and let me be very specific in this. What — it is my full intention — I don't care which of the two vehicles we end up using. I might favor one more than the other, however, but my intentions are to put this out to bid and privatize the Off -Street Parking Authority. As you all mentioned — and, Vice Chairman Gort, you pointed out Washington, DC. Well, Washington, DC was privatized. It's bringing in gross revenues of about twelve and a half million. And just to think, two and a half years ago or three years ago they were bringing only two and a half million. So, there is something to that effect. So, you see the difference by privatizing this. And I am sure you all have the top companies in the US that will be willing to come in and bid on this and guarantee us a set income above what we're getting now, and that would be, in my mind, very substantial. Commissioner Sanchez: Mr. Mayor? Submitted into the public Mayor Carollo: Yes. record i withconnection �th item on 7 Walter Foeman City Clerk 2 July 27, 2000 0— 714 • Commissioner Sanchez: If I may, Mr. Mayor. I think we have one responsibility up here, as elected officials for the City, is to look out for the City's best interest. I don't think anyone up here, including the people from Miami Off -Street Parking Authority, will dispute that the City could be getting much, much more than it could get out of that agency or department. There are a lot of questions to be asked that may have some concerns, whether we privatize it or not, which I am leaning toward, as long as we come with ways that it's done right and the scenarios that are put forth, and you have two that we could study, and we make this determination based on facts and we analyze it and we don't rush into things. Of course, there are a lot of questions that we could ask. One is, would it affect the bond ratings that they have, which is "A" plus right now, which I don't know whether they will or not? The other one would be, would you lose the ability to finance new parking projects, which are going on in the City and providing? And that's a concern also that we need to address. Also, would the parking rates go up, which 'was another concern that we need to address? And I think a lot of people are going to be asking those types of questions. Of course, I, myself, have been one that have always said that I'm willing to let the people decide on what affects them in their government, and I don't want this to sound like an anti -democratic issue. But without any doubt, I think that the — you taking the leadership in putting this forth is to say that the City could generate more money. You know, I've had people come tell me it's a brand new issue. This is not a brand new issue. This issue has come to light. For the last two years that I've been here, you've brought it up several times, saying that the City could generate more money. I am of full support that we could generate more money, but I think that what we need to do is find ways not to rush into this and see what we could — what scenario could be put forth. I know three that came out and I was taking notes on them. One is to bring back into the City and continue to have Off -Street operating. That's one. Putting it out for an RFP (Request for Proposal) for the private sector is another one. Of course, having the City run it, which I totally oppose — and I'm saying it right now. First, I don't think we have the resources. First. The impact that it will have on the City, on more salary increases for people coming in, falling onto the union status. It's not good for the City. But I'm going to sit back and see what this Commission wants to do and then, if it's to be put out for the voters — it went out in 1992 and in '97. It shall go out again and we will see. Vice Chairman Gort: Mr. Mayor, one of the things that we need to realize, whether we privatize or not — and this has'to be part of the RFP or RFQ — the Submitted Into the public record in connection with 3 July 27, 2000 item on Walter Foeman 00— 7 4 My Ciel 6 reason that Off -Street Parking was created because downtown Miami, when it was planning — when it was developed, it was developed without parking. So, most — I would say 90 percent of your retails do not have parking. We finally —.one of the biggest problems that we have in people coming to shop in downtown Miami is the lack of parking. So, we have to make sure we have established certain programs that benefit the merchants in the area, and that those programs maintain the visibility in there because that's going to be the life of the central business district. Commissioner Regalado: Mr. Mayor? Mayor Carollo: Yes. Commissioner Regalado: What — I think that I, at least, am lacking, is information to make a decision because I do have some documents from the Miami Parking System. I got this from the Manager, the comparison of major cities' systems to Miami. I'm told, for instance, that the Off -Street Parking Authority have bonds; that if we were to take over that department, those bonds will be coming to the City, and that would -mean that we have to sort of pay more because of our quality of bonds. Is that one of the issues involved here? So, there is no issue about bonds, at all? Mayor Carollo: Let me go over. that. Assistant City Manager Nachlinger feels that — from what he said to me — that those bonds do not have to be paid out. I don't know if that's the case or not. Commissioner Teele: What law school did he go to? Mayor Carollo: Well — hold on for a minute. That's based upon the — you've got the advantage over me today. I can't speak. But I'm not so sure that's the case, and there's a very simple solution to that. ,It's still not going to cost the City money. You put it out to bid — if you had to pay those bonds out, then whoever comes in the bidding process, they have to take that into the equation. They're going to pay it out. Therefore, we'll make less than they would have offered otherwise, but we're still going to make more than what we're making now. So, if you could proceed. Commissioner Regalado: That is why — Mr. Mayor, you said that you'll call a special meeting on September because I don't have that information, nor I was given any information by the .administration on this issue. Although, Submitted into the public record connection with 4 July 27, 2000 item tep on - od 00- 714 Walter Foeman City Cleric last week, we were told that it .was deferred to this week, so we — I, at least, didn't have any information. So, I don't know if this is — what we're talking here is to come back on September? That's all. Mayor Carollo: What I'm proposing is that we approve Resolution S-1, that is, asking the City Attorney to prepare an amendment to the Charter of the City of Miami, as explained here; to do away with the whole Department of Off -Street Parking, and bring it into the City so that we could privatize it. At the same time, in this resolution, I would like the City Attorney to draft another resolution, after the City Attorney can discuss it with different members , of the Commission to get their input, so that we could have two different possible Charter amendments, to choose one over the other. And what I am proposing on the second one is a hybrid that we will keep basically the engine of the Off -Street Parking Authority, but we will renovate the whole vehicle and give the engine a tune-up, where you can place in some additional members from this body and -keep two, possibly of the ones you have there. But before you finalize a second possibility for a Charter amendment, I would prefer for you to get some additional ' input from Commissioners on that. Commissioner Regalado:, Mr. Mayor? Mayor Carollo: Yes. Commissioner Regalado: I know that this is a priority and, I know that you've been working on this, apparently, several weeks with the administration, but I still don't understand why you want to bypass the Charter Review Committee. If we put this on the ballot in November, should we put other issues without the Charter Review Committee coming back to us? There are many important issues that we can even rush on the ballot in September. Mayor Carollo: Let me answer that question. This one is one that comes down to major dollars for the City that we're losing. Since 1997 - and you were here with me. So was Commissioner Gort — I had been talking about this. When I came back in `98, I was still talking about it. At least we got out of them a little over two million dollars ($2,000,000) a year that they didn't want to give us. And for the first time in the City's history, we were getting some actual dollars coming into our General Fund from Off -Street Parking. We have the potential of doubling — and I truly feel tripling — what Submitted into the public record/in connection vOth 5 July 27, 2000 item L __ on d Walter Foeman�; . City clerk 10 10 we are receiving_ now, and this means major dollars to all of our communities that can go right into the General Fund, that we don't have to take from taxes, from fees. These are dollars that rightly should have been coming to the City of Miami for years and haven't been; dollars that would help the communities of the City of Miami that needs this money. Commissioner Winton: Mr. Mayor? Mayor Carollo: Yes. Commissioner Winton: The argument that you make about the revenue side of this — and you probably read my comments in the newspaper, where I said, "I'm trying to come in." I am coming — walking in here with an open mind, and the dollars are — the potential dollars are very attractive and you hate to sit here in a position and make decisions that could prevent our City from putting those dollars, potentially, to better use. And I say potentially on purpose because I don't know yet — because I don't have enough information yet. I don't understand the repercussions of these kinds — of the kinds of decision I'm having to make here today, and that's part of the problem. It would have been a whole lot better — particularly since you've been working on this for so long -- if you could have brought this to us three months ago so that I would have had the time, the public would have had the time, we could have gotten the kind of input we need to deliberate this critically important decision about the future of our City in an open environment and have all the information out on the table, and then I feel I could make a good decision. I can't make these kinds of crucial decisions with this kind of limited information in this short time frame. This may be the smartest thing we've ever done. Mayor Carollo: Commissioner, let me be honest with you. Commissioner Winton: But I don't know. Mayor Carollo: If you can't make it between now and the first week of September, you're never going to make it. Commissioner Winton: Well, that's your opinion. Mayor Carollo: You've got that time. Submitted into the public record in connection with item on 6 July 27, 2000 Walter Foeman City Clerk 00- 1 4 • Commissioner Winton: I don't have time. When do we... Mayor Carollo: You'll have that time. Commissioner Winton: When do we have public input? Mayor Carollo: Well, I'm saying it to you. You have that time between now and the first week of September. Commissioner Winton: Well, I happen to be going on vacation for ten days, so... Mayor Carollo: Well, I'm not going on vacation. I'll be here. Commissioner Winton: Well, then, understand, I'm not going to support either of these proposals, given the time frame that we have. I think it's a terrible disservice to our community to be force-fed this information on very short notice, without the benefit of the kind of input that this community deserves to make this decision. Mayor Carollo: Commissioner, you ran as a reformer. For once, truly be a reformer. This is one of the biggest.... Commissioner Winton: I will reform based on information. Mayor Carollo: This is one of the biggest decisions that you can make to show that you're really going to be a reformer. Commissioner Winton: Well, I make decisions based... Mayor Carollo: Show me you're a real reformer. Commissioner Winton: ...on- all the information. I never make decisions on :half the information. Mayor Carollo: Well, see, the difference with me is that I'm going to make the decisions that I know are going to help the citizens of Miami. This Off - Street Parking Authority was created in the "Good Ole Boys" system. It's been run as a good ole boy system, where the City of Miami, if it would have had the income throughout the years that we should have been getting Submitted into the public 7 July 27, 2000 record in connection with item �_ on '&— -?-- c_c) ;> Walter Foeman Clerk 0 . 0 from the system, we would have had tens and tens of millions of dollars in reserves, throughout the years, of monies that we have not gotten. You know well because you're a businessman more than most anybody else on this dais — and, particularly, since you have garages, garages that you recently found out that you should have been making a lot more than you were making. You know more than anybody here that what I am presenting doesn't take too many brains to know that it is. going to bring major dollars to the City of Miami. How we go about it, you all could decide. But one way or another that change -is coming because, see, Commissioner, I am a true reformer. Commissioner Winton: Well, that's your opinion, and I'm entitled to mine. Vice Chairman Gort: Well, Mr. Manager... Commissioner Teele: Mr. Mayor? Mayor Carollo: Yes, sir. Vice Chairman Gort: The other thing I want you to look at when you're doing your analysis of the revenues and so on, the ticketing. How much revenues we get for ticketing for enforcement; who will be doing enforcement, and how much would it cost to do the enforcement and so on, OK? Commissioner Teele: And, frankly, gentlemen, I don't care what you all say. I'm taking a 20 -day vacation, so you all can take none, ten. I'm in this deal for twenty. So, I think we need to be careful here that this doesn't spin into a direction that only one person in the room is praying that it will, and I won't call names but he's got on a white shirt on the front row here, and I'm not talking about you, Al. We have, I think, an issue that is not what we're debating or discussing. As much as this may pain me in jest — because it doesn't pain me intellectually — we have a Mayor of a city that was elected as an Executive Mayor, and I have said every time matters like this come up, whether we talk about the Tallahassee lobbyists or the Washington lobbyists, certain matters that I think -- even though I don't feel that I've been treated with the amount of comportment of.courtesy that I would have wanted to be treated and, certainly, when I was chairman of the Commission, I'm not treated to the same level: I think we have to treat the Mayor with a certain level of deference. I think the Mayor has a proposal. I have been very Submitted into the public record in conneq don with 8 July 27, 2000 .item _'3 _ on Walter Foeman 714 City Clerk critical in the past that, candidly, this Mayor has not had a big legislative agenda or a major series of initiatives. In fairness to this Mayor and in fairness to you, Commissioner Winton — because you were not here the only significant proposal that I have seen the Mayor put in writing is the issue of reviewing the status of Off -Street Parking, which he did in September, in writing, as a part of the budget calamity or the budget crisis that we were confronted with. And I said then and there — if you go back, Mr. Clerk, and pull the record — and I'd like for this to be pulled so that Commissioner Winton can see what the discussion was and the debate. I said to the Mayor, for the record — you remember, there was some stuff about Law Enforcement Trust Funds? I mean, the Mayor made about five recommendations on the budget issue, three of whom, you know, quite candidly, were not budget issues, in my opinion. One of whom was illegal, relating to the Law — that we should take Law Enforcement. But the one thing that the Mayor brought .down that I said we should give deference to, and that I will lead the effort to give deference to is,- the Mayor's initiative relating to Off -Street Parking; that Off -Street Parking can generate more money. I think what the Mayor is asking us to do at this point is not to make a decision. I'm going to say it on the record and I'm going to say why because I've not said this to the Mayor, nor have I said this to Art Noriega or anyone. I will not support abolishing Off -Street Parking as an. option. That's just me, Arthur Teele. But I will vote right here and now to instruct the Manager to prepare a Charter amendment that, does that, because the Mayor's Office is entitled to the deference of having a resolution and having us to vote it up or down, if that's what he wants to propose as the Mayor. The Mayor is not one of five Commissioners. He's the Mayor of the city, the entire city, and each of us, on matters of procedure, should give the Mayor the deference of an opportunity to be heard and to be voted upon on certain matters. I will support giving the Attorney the _instructions to prepare the Charter and to have a meeting, but I'm saying right here — and it may not be politically kosher or the right way to do this, but I don't want anybody to think I'm playing games. I will not vote to abolish Off -Street Parking. Let me tell you why. Number one. The issues that Commissioner Sanchez has raised are valid. Number two. This City has not had, to date, the benefit of what every major city in the America must have and, that is, a Financial Advisor, a simple Financial Advisor. We've approved the contract. We've awarded the contract. We still don't have a Financial Advisor. Ninety percent of the discussion that I would like to have, with all due deference to Bob Nachlinger, who I think is an outstanding person -- and I don't care if he did go to Mail Order Law School, as he gives his legal opinions. I still Submitted into the public 9 July 27, 2000 record in connection with item — on Ct�7—a Walter Foeman � � 714 City Clerk 0 , 0 trust him totally as the Assistant Manager for Finance. ; But the fact of the .matter is, these are matters that relate strictly to bond counsels' decisions. Not even the City Attorney, I don't think, in fairness, is going to opine something like this without really doing the research. This is a matter that relates to bond counsel and it relates to the Financial Advisor. Number three. If we were to abolish Off -Street Parking, we've got to do something with the debt. I believe this would require approval of the Oversight Board. I don't think we can assume, we can refinance, we can make any kind of decision like this without seeking the approval of the Oversight Board. There is an outstanding debt of how much, eighteen million, ten million? Art, what is the outstanding debt, bond debt? Mr. Art Noriega (Executive Director, Department of Off -Street Parking): It's roughly fourteen million. Commissioner Teele: Fourteen million dollars ($14,000,000). And I don't think that we are being given — and Commission Winton makes the point,. there should be a whole series of memorandums going back and forth. But I think we know this, that the Mayor doesn't have a Finance Manager and a budget officer and all of that on his staff, He's relying on the same staff we're relying on and, in fairness, there has been a lot of transition over the last — in fact, the whole issue of lack of financial issues is a part of what the lawsuit is all about. So, we need to be fair on both sides of this thing. Let me tell you why I don't even like the terminology we're using. This, to me, should not be about privatizing because in abolishing the Off -Street Parking — the guy's gone. He's probably gone back up to Pembroke Pines now -- all of those employees become employees of who? The .City of Miami? And they become subject to who? What's that guy's name? Commissioner Sanchez: Charlie Cox. Vice Chairman Gort: Charlie Cox. Commissioner Teele: And Charlie should be right here right now because this is where, you know — this is Charlie's greatest moment that he's missing. Those people` all become employees of the City. And let me tell you something. It's much easier to "privatize" Off -Street Parking in the status that it's in now than to bring it in under the City. .There has to be studies relating to wages and salaries as it relates to, does a Secretary I at Off -Street Parking -make the same thing as a Secretary I at the City of Submitted into the public 10 July 27, 2000 record in connection with item _1 onq z7 ods Walter Foeman 14 City Clerk Miami? I guarantee you the Off Street Parking numbers are much, much lower. So, I'm — what I'm saying here is not to shoot this down, at all. I'm only saying, on the record, why I will not vote to abolish Off -Street Parking in this configuration. However, as to the second alternative that the Mayor is. asking — but I will vote to ask the Attorney to draft it up. As to the second alternative the Mayor has proffered, I strongly believe it has some merit. Now, I want to be on the record as saying this: I think, if we're going to pass this resolution, that each Commissioner should be authorized to give the Manager a variation — I mean, the Attorney a variation or an option of what it is, because I want to be very clear. I will support a mere change in the Board of Directors of Off -Street Parking, which requires a Charter change, whether we expand the board from* five to seven or we reconstitute the board. Here's where I am, Mr. Mayor and to the public. Number one. At least two of the current members must remain with terms of office of four . at least four years and at least six years. If we're going to do this, this has got to be thoughtfully done. There's got to be a transitionary, period. This cannot be a hostile take-over. It's got to be an unpleasant, perhaps, merger, but not a hostile take-over. Number two. I will not support this unless the Mayor is the chairman of the Off -Street Parking board. I believe that, if you really want to keep the focus on the kinds of changes that we're talking about, then let the Mayor be the Executive Mayor and let — you know, as opposed to bringing it over to .the Manager, let the Mayor be the executive Mayor of that and, therefore, you have that. And I think to the extent that if the Mayor can live with that, if — and the Commission make two appointments or the Mayor make an appointment and the Commission make appointment, initially, so you've got three new members. Now, if the Mayor, whoever he or she is, can't get the board to follow the direction that he would like to take, that's upon him or her, the Mayor's leadership style. But I think we can give the Mayor something to go out to the voters with that doesn't necessarily kill Off Street Parking or change it or raise a lot of these issues, but I think we can get a fair direction. I want to associate myself with the remarks that Mayor Carollo made and Willy Gort made, because I think we need to make sure that this does not become a personality issue between Commissioners and the Mayor or Off -Street Parking board and the Mayor and, specifically, Off -Street Parking staff and the Mayor and Commission. We need to discuss this on a. very high level, if possible. The one point that Commissioner Gort has just made: Off -Street Parking was set up for a different mission than what we have today. It was set up for the purpose of providing parking for the downtown area, primarily. It was set up — somebody said the "good ole boys." It was. It was the good ole boys, Submitted into the public record in connection with 11 July 27, 2000 item 143- on =7 a U Walter Foeman 7 1 4 City Clerk and I can assure you nobody frommy neighborhood was there. And it was set up of the purpose of providing cheap parking at the public's expense for downtown, which is a legitimate way a lot of cities ran. The fact of the matter is, the City Commission having approval over rates is the dumbest thing we could do. We should not want to have approval over rates. We should want the rates to be market rate driven today. We have a Metro Mover System. One of the reasons it doesn't work is that we do provide the cheapest parking. Fred Jones from Arbendale, Florida, who was chairman of the Transportation Committee for eight years in Tallahassee, even Fred Jones from Arbendale could figure out that Miami had too cheap a parking for the Metro Rail/Metro Mover System to ever work. And, so, what you have is a system that was set up for a different purpose. The Mayor's issue, which I agree with, is this: if we can get five to six million dollars out of Off -Street Parking revenues -- that's about a half a mill, is it not? About a half a mill. Mr. Carlos Gimenez (City Manager): Yes, sir. Commissioner Teele: And I'm telling you, we need to invest the time, between now and September, to see if we can squeeze out another half a mill of revenue. I don't think we should wait a year or two years or three years in terms of getting more revenue. Because I think the real issue here is not do you abolish this board or do you start rewriting the Charter. The question is, as far as I'm concerned, the second issue the Mayor has put on the table, a question of direction and governance. The public — the only person in the City of Miami that gets to run at large — there we go again — is the Mayor of the City of Miami, and I think that's a very good thing and I think that's for a reason and I think, for that reason, if anyone is going to chair.the Off - Street Parking board, it should be the Mayor. And whatever Mayor is in power or in office should have the flexibility of being an executive — a true executive Mayor and to provide policy direction and to be forced to, quite candidly, work with the board. And I've got to tell you something. You know, working with boards is not always easy, as the five of us — six of us see. So, that's going to be a challenge within itself. And for these reasons, Mr. Mayor, I'm pleased to support the initiatives of bringing — instructing the City Attorney to draft the resolutions as you have outlined. One relating to the abolishment and the second one with the option of other Commissioners being able to provide variations of a resolution that would, in effect, allow for a new governing structure of Off -Street Parking, and that would be the existing five members . I'm proposing that we keep at least Submitted into the public record in connection, with 12 July 27, 2000 item L on �d Walter Foeman �� City Clerk 00- two and bring in two new with the Mai yor or maybe expand it. Somebody may want to expand it to seven, keep three, and do something like that or maybe not even keep three, but whatever. I think the more board members we can keep, the more continuity, the more we don't get into this thing that we're making a rash decision, we're going to throw the baby out with the bath water, and we've got a whole series of horribles. I don't see how anyone could oppose, in a referendum, having a board that includes the Mayor, in which we don't radically cut out the Off -Street Parking. And just for the record, I think at least two-fifths or three -sevenths of the Off -Street Parking currently board should remain. I don't want to see a radical change and — I mean, that's what I would be prepared to move, Mr. Mayor, or Commissioner Winton, if you would agree to it. Because I do think that there's an opportunity for us, over the next thirty days, to let the Manager and the Attorney and, bond counsel and Financial Advisors to give us some good advice on this. I don't think this has a financial implication, at all. Vice Chairman Gort: If that's a motion, I'll second it. Commissioner Teele: But I'd like to know that Commissioner Winton would... Commissioner Winton: I think that the idea is a good idea. That does allow us to move through a process where you can — where the Mayor will have the responsibility to continue to study and make decisions that ultimately could get money in the City's coffers relatively quickly. And I, too, hated the idea of waiting another year for this option, but it doesn't — I'm a little more bothered — and I'm not — didn't come here to argue with the Mayor; didn't come here to be opposed to the Mayor, but if this has been an issue that the Mayor's understood backwards and forwards since September -- seems like that's what you just said — then it seems to me that it would have been incumbent upon the Mayor, in respecting my position, to bring me all of that information long before today and, so, then I wouldn't have to be opposed to anything. I could be sitting here voting yes to something instead of a compromise. So, Commissioner Teele, I'm in favor of your proposal. I don't understand, however, the point one, which is to have the City Attorney bring forward the language that will allow for the abolishment of the Off - Street Parking board. How does that fit in this — in my vote? Commissioner Teele: I will tell you very simply. I think, as a matter of deference to the Mayor, we should allow him the opportunity to convince us, Submitted into the public record in connection with Item A' on - ? — ° d Walter Foeman City Clerk 13 July 27, 2000 00- 714 as Commissioners, with a legal document, as to whether or not we should put it on the ballot or not. Commissioner Winton: OK. Commissioner Teele: I will... Commissioner Winton: So, I'm not making a decision to put anything on the ballot. I'm only making a decision to allow the language to come forward? Commissioner Teele: No, sir. Commissioner Winton: Fine. Then I will support it. Mr. Vilarello: Mr. Mayor? Commissioner Sanchez: And, if I may, Mr. Mayor. I think that, if we do something here, it — what we all want to accomplish, including what the Mayor wants to accomplish, to bring more revenue to this City, to provide additional stream of revenue to this City. Now, I could elaborate on several agencies that have gone -- what they call - you know, they put it out for RFP, the Prison did it with the thing — the catering — Corrections did it with the — and they were able to bid on it themselves, also, and they were given preference of certain points on it and they came back and there was a big savings to the County. If this .is -- whatever the wish of this Commission is and it's determined, after we come to an agreement or whatever is done here, that we want to put this out for an RFP, I think that Off -Street Parking should be a part of that RFP, and we should give them preference for the job — for the quality of work that they've done. Mayor Carollo: Absolutely. Absolutely. Commissioner Sanchez: Our concern here — and I could see it comes from the Mayor and the Commissioners — to try to bring more revenue into the City. And Commissioner Teele elaborated on something that's very important. Maybe half a mill. If the numbers — I have not seen the numbers, and I'm studying the numbers of all the cities. But it takes thirteen million dollars ($13,000,000) as one mill. If we could get half, which is six out of Submitted. into the public record I connection n with 14 _�----�� July 27, 2000 item on Walter Foeman City Clerk 00— 7 1 Off -Street Parking, you know, we will be able to reduce the millage by maybe point five... Commissioner Winton: We could bond a lot of infrastructure improvements that we're all struggling to get done, too. I mean — so, there's great reason for this... Commissioner Sanchez: We could do it — we could do a lot of things. Mayor Carollo: For those who are at home and don't get the benefit of seeing what is in front of us, throughout all of these last several discussions, what you have had here is maybe twenty-four or so people, half at least are City staff. This is what maybe some mean when they want input from the public. Limited public, the same public that has certain special interests but -- so that the public at home can understand, even more so, how I feel. If we're going to be talking about bringing the public to be involved and have public hearings, et cetera, this is an organization that meets at 7 am in the morning. It's not because they like to get up early because they know that the press will get up that early. This is an organization that uses our parking meters. It's our parking in the City of Miami, but we do not even have the right to audit this organization. We do not have the right to audit them. So, ladies and gentlemen at home, the silent majority of the City of Miami, this is your city and this Mayor is trying to bring in the revenues that you, the regular resident of Miami, need so that we could keep lowering the property taxes, we could keep lowering fees, and I think that that's the feelings that a majority of my colleagues here have in trying to work 'together to accomplish that. Unfortunately, sometimes things are not easy to accomplish in our city, the kind of things that are no-brainers in other cities. The bottom line is that I don't care which way we go about this out of the two potential ways that I described, as long as we are able to go forward in bringing this out to bid, and that's one of the areas that I want to have the time, during the next thirty or so days, to discuss with the City Attorney, the possibility of making that, if it's possible and legal, part of the second Charter amendment, that that would be a must from the board to privatize the Off -Street Parking Authority. Commissioner Sanchez: Mr. Mayor, if I could correct you on one thing. You said that the Mayor reduced taxes. I think the whole Commission has tried to. Submitted Into the public record in connection with item — on Walter Foeman City Clerk Submitted into the public iSrecord in connection With, July 27, 2000 item On - � .� �� Walter Foeman ;.n.,s City Clet r • -0t Mayor Carollo: I didn't say that. That's what I want to accomplish and we all have worked together towards that. Commissioner Sanchez: OK. Mayor .Carollo: It's my voice that... Commissioner Sanchez: Well, I think, it's my understanding, we would have to vote this separate motions on the resolution and then the creating of the governing body. No? Mayor Carollo: No, no. Mr. Alejandro Vilarello (City Attorney): The City Code requires the City Commission to direct the City Attorney to draft the language, the Charter amendment language. So, if you wish to consider what the Mayor has proposed, you need to pass that resolution. If you want to pass an item that modifies the membership of the board, as was discussed, that should be a separate resolution directing... Commissioner Sanchez: OK. There was a motion made by Commissioner Teele and seconded by Willy Gort. Mr. Vilarello: ...directing me to prepare the language that modifies the board membership, as was discussed. Mayor Carollo: You really could combine both, if you want. I don't think you need -- necessarily need to make them separate. Mr. Vilarello: I think the purpose of the provision of the Code is to have the City Commission give general direction to the City Attorney, so that it's drafted in a -- consistent with the wishes of the City Commission. So, I think this has to be separate resolutions. Mayor Carollo: OK. But you know that both are not going to go on the ballot. It's going to be one or the other. Mr. Vilarello: No. What I would do is prepare two questions for the City Commission to consider. I assume you're discussing a special Commission meeting some time — the first week in September. Submitted into the public record in connection with 16 item t_ onq—z.2.�_cvc/ Walter Foeman, 'y Clerk July 27, 2000 ®®` 7JL 1A Mayor Carollo: It has to be the first week of September. Vice Chairman Gort: My understanding is, your motion was to consider the both of them and to bring it back to both of us — the both, and that's why I second. Commissioner Teele: What the City Attorney is opining, that the motions need to be separate. I think that's what he's saying. But I want just to clarify. On the motion relating to the board, the governing board issue -- relating to the governing board issue of Off -Street Parking, there will be one resolution but several variations. In other words, each Commissioner will be in a position to amend it right then and there, so that you will — you were instructed to work with each Commissioner on variations of that. You can't make one resolution that's going to perhaps cover everything, but at least each one will have the opportunity to bring up the one that he likes. Somebody may want to have a seven -member board; others may want a five -member; some may want the Mayor to designate a chair, and I think that the Mayor should be the chair, something like that. And some — I'm sure Off -Street Parking would prefer that the Off -Street Parking board elect a chair. So, I mean, some Commissioner may want to advance that. So, I just think we ought to have the range of options here. And I would so move, as it relates to — in deference to the Mayor, so that the Mayor's issue, it can be voted upon -- that the City Attorney is instructed to prepare the resolution related to the abolishment of the Off -Street Parking, to be heard on a special Commission meeting on — what is it, Thursday, September 7th, at 2 pm? Mayor Carollo: That should be the last day that we could take because it's got to be in the next day, the 81h Commissioner Sanchez: How about the fifth, on a Tuesday? Mayor Carollo: Election Day. Commissioner Teele: That's Election Day and that's the day after a holiday. Wednesday, the 6th or... Mayor Carollo: The 6th would be good. Submitted into the public recordnc O�ection v Cj 17 July 27, 2000 item Walter Foeman City Cleric 00— 71,4 Commissioner Teele: What time is convenient? Why don't we do it at 2 o'clock, 2:30? Mayor Carollo: What's the will of the Commission, two? Commissioner Regalado: Two o'clock is fine with me. Commissioner Teele: Two o'clock? Commissioner Sanchez: Two o'clock is fine. Mayor Carollo: Two o'clock. Is there a motion to have a special Commission meeting for the purpose of discussing the item that we have been discussing here now? Commissioner Sanchez: So moved, Mayor. Mayor Carollo: At two pm, September the 6th. Moved. Second. All in favor signify by saying "aye." The Commission (Collectively): Aye. The following motion was introduced by Commissioner Sanchez, who moved its adoption: MOTION NO. 00-706 A MOTION TO SCHEDULE A SPECIAL COMMISSION, MEETING ON WEDNESDAY, SEPTEMBER 6, 2000, BEGINNING 2 P.M., TO CONSIDER PROPOSED CHARTER AMENDMENT Submitted into the public record in connection wih item ._on Walter Foeman City Clerk, 18 July 27, 2000 00- 714 0 • Upon being seconded by Commissioner Teele, the motion was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Arthur E. Teele, Jr. Commissioner Johnny L. Winton NAYS: None. ABSENT: None. Commissioner Regalado: We haven't voted on the other issue. Mayor Carollo: No. We're going back. Commissioner Regalado: Before — Mr. Mayor, if I can make a comment. From now until the special session, what kind of information are we .going to get? Because — and this is for the people sitting at home. The Mayor has said that he wants to bring new revenues, but the problem is that this Commission always gets blamed for the bad things and never gets praised for the good things. Mayor Carollo: That's why I'm bringing you good news. Commissioner Regalado: I mean — and that's the way it is and, you know, I think we have to accept that. But the problem is that we do not have the information that you have. You mentioned that you spoke to Bob Nachlinger. I never received anything from him or from the administration on this issue. The only — well, this paper, but just now. But what I'm saying is that it looks as if we, the City Commission, do not want to follow your lead because we don't like you, in terms of not doing this for you today, it looks that we don't want to bring new revenues. Come September, maybe — come October we are going to have in the agenda the lease of the Watson Island/Port of Miami deal, but we don't know anything about this. And then, if we don't vote or if we vote in a different way than what you want or the administration, then we're going to be blamed for not wanting to bring new revenues, and we do need some information about this issue. Submitted into the public i COOnect10 "th d 19 July 27, 2000 reCOrd on c� itema �a►ter Foeman 00— 714 City CleiK Mr. Carlos Gimenez (City Manager): Commissioner, it's our intent to have our Financial Advisors give you a detailed report of what they find in terms of comparing Off -Street Parking and the revenues that are generated for the ,City of Miami in comparison to other cities. It's also our intent to make sure that those other issues, as far as the bond rating and who has to pay the bonds, et cetera, what happens to the employees, that those issues are also laid out on the table so that you can make an informed decision as to which way you want to go. Commissioner Teele:.But I think the point that Commissioner Winton has made and Commissioner Regalado is making is that we need that .information now, not the day of or five days before the meeting. The sooner we can get that information, the better to consider it. Mr. Gimenez: Yes, sir. "As soon as the information becomes available, I'll commit to you that we will give you copies of whatever it is we have. Vice Chairman Gort: Commissioner Winton is going to be out of town on the — that we all selected. Commissioner Winton: On the fourth, fifth, and sixth. Vice Chairman Gort: Fourth, fifth, and sixth of September. So, you might want to make it on the eighth -- on the seventh. Mayor Carollo: Then I need a motion rescinding the previous motion so that we could have a new one then. Commissioner Winton makes a motion. Vice Chairman Gort: I move to reconsider the motion that we just passed. Commissioner Winton: Second. Mayor Carollo: It's been moved and seconded. Vice Chairman Gort: Make a motion that we change for Thursday the seventh. Commissioner Teele: All those in favor say "aye." Submitted into the public record 'in connection viah Item .1 on — —o 20 July 27, 2000 Walter Foeman City Clerk 0 The Commission (Collectively): Aye. The following motion was introduced by Vice Chairman Gort, who moved its adoption: MOTION NO. 00-707 A MOTION TO RECONSIDER PRIOR VOTE TAKEN ON MOTION NO. 00-706, WHICH HAD PREVIOUSLY SCHEDULED A SPECIAL COMMISSION MEETING ON SEPTEMBER 6, 2000, BEGINNING 2 P.M. TO CONSIDER PROPOSED CHARTER AMENDMENT RELATED TO OFF- STREET PARKING AUTHORITY. Upon being seconded by Commissioner Winton, the motion was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Arthur E. Teele, Jr. Commissioner Johnny L. Winton NAYS: None. ABSENT: None. Mayor Carollo: Thank you. Just trying to save my voice. Vice Chairman Gort: Well, I've got something in my throat too. OK. Mayor Carollo: Get it out. Get it out. Vice Chairman Gort: OK. So, we'll have it on the seventh at the same time, 2 o'clock? Commissioner Winton: Yes, that's fine. into the public Submitted, ' With record in connection - ,CJ V �-=r 21 July 27, 2000 item - --Y Walter Foeman City Clerk, 00— 4. L,J Vice Chairman Gort: I move that we have the special meeting on September the 7th at 2 o'clock. Second? Commissioner Winton: Second. Mayor Carollo: All in favor signify by saying "aye." The Commission (Collectively): Aye. The following resolution was introduced by Vice Chairman Gort, who moved its adoption: RESOLUTION NO. 00-708 A RESOLUTION OF THE MIAMI CITY COMMISSION SCHEDULING A SPECIAL CITY COMMISSION MEETING FOR SEPTEMBER 7, 2000, AT 2 P.M., FOR THE PURPOSE OF CONDUCTING A PUBLIC HEARING ON CHARTER QUESTIONS RELATED TO THE RESTRUCTURE OF THE DEPARTMENT OF OFF-STREET PARKING (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Commissioner Winton, the resolution was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Arthur E. Teele, Jr. Commissioner Johnny L. Winton NAYS: None. ABSENT: None. Submitted into the public record in co nnec�o� 22 July 27, 2000 item® !Vatter Foernan city Cleric 00- 14 Mayor Carollo: It passes. You need to break up the other two resolutions, if it's the will of the Commission. You all will have plenty of time to speak on the seventh. Ms. Georgina Pardo: Mr. Mayor, the only problem is, I've been here all day wanting to speak on the subject, and I have been — I'm sorry. My name is Georgina Pardo. I'm President of the Downtown Miami Partnership. And, basically, I've been involved with the parking issue for the last fifteen years: Mayor Carollo: Ma'am, if I can, I'm trying to get a vote. After we take the vote, if the Vice Chairman, that will keep chairing the meeting, would like to hear you or some of the other seven or eight people that are here, you know, I have no problem with. I'm just trying .to get this moved because my interest is to bring revenue to the City of Miami that hasn't been coming to US. Ms. Pardo: Well, you have been doing that... Mayor Carollo: So, I appreciate... Ms. Pardo: ...with the twenty percent surcharge that you put on the parking. Mayor Carollo: That's right. Ms. Pardo: But I will — I'll be very happy to come back on the seventh, along with other people, to address this issue, if you feel that today is not the appropriate time for the public to discuss this. Thank you. Mayor Carollo: Then on the seventh it will be. Thank you very much. I appreciate your patience. Commissioner Sanchez: Mr. Mayor, I just called my spouse and my vacation days were — I thought we were leaving on the twelfth. We're leaving on the fifth. So, I will not be here. I'll be out of town from the fifth through the twelfth. Mayor Carollo: OK. Commissioner Sanchez: So, I apologize for the inconvenience. Is. there any way that we could change that date? Submitted into the public record in conneStion with Item -- on v�lalter Foeman . City Clerk 23 July 27, 2000 00- 714 • LJ Mayor Carollo: It's whatever the Commission would like. Vice Chairman Gort: Is everybody here Friday, the first? Commissioner Sanchez: And I'm glad I called. Vice Chairman Gort: Is everybody here Friday, the first? Commissioner Sanchez: No. It's — no, no, no. What it's going to be? We're going to... Commissioner Winton: I leave on Friday, right? So, Thursday, the 31St, I'm still here. Mayor Carollo: Hey, guys, it's no problem. We could take it up next year again or, if not, the year after... Commissioner Sanchez: No, no, no. Mayor Carollo: ...or the year after. It's no problem. Whatever the Commission would like. Commissioner Sanchez: When is it scheduled for now, September... Mr. Vilarello: The seventh. Commissioner Sanchez: The seventh of September? Mr. Vilarello: Currently for the seventh at 2 o'clock. Commissioner Sanchez: All right. We'll leave it at that. Commissioner Winton: What did you say, Joe? Are you here on the 31St of August? Is everyone here on the 31 st of August? Commissioner Regalado: Yes. Commissioner Sanchez: September the seventh is fine with me. Submitted into the public record in connection vvitb July 27, 2000 item 4 on �' � a° 24 Walter Foeman 00— "714 City Clerk Commissioner Winton: Commissioner Teele? Commissioner Sanchez: No., September the seventh is fine with me. We'll leave it September the seventh. Commissioner Winton: You'll leave after... Commissioner Regalado: August 31St is fine with me. Mayor Carollo: While the Commissioners are looking for this, Mr. Manager, could you meet with my director of Inter -governmental Affairs tomorrow and go over with her the list that you'll be presenting for public records requests of the Off -Street Parking? That will include in that every employee or consultant, what they're making in saia ry, benefits, and a laundry list of other areas that I think the public also deserves to know. Mr. Gimenez: Yes, sir. Mayor Carollo: Thank you. Vice Chairman Gort: What are the other motions? Mayor Carollo: You can make one or two other motions or make none. Commissioner Regalado: To have the City Manager — I mean, the City Attorney draft the different — they cannot be two. They could be more than two, right? Vice Chairman Gort: You move it? Commissioner Regalado: I move it. Vice Chairman Gort: You make the motion directing — second? Mr. Vilarello: The motion is... Vice Chairman Gort: The motion is to come out with the other versions of the other... Mr. Vilarello: Modifying the membership of the board and... Submitted into the public record Jconnection With 25 July 27, 2000 item on Walter Foeman 0 714 City Cleric s Vice Chairman Gort: No. That:.. • Commissioner Sanchez: Modifying the governing of the board. OK. Mr. Vilarello: With alternatives that might be presented to me by Commissioners individually. Yes. Commissioner Sanchez: By the Commissioners. Yes. Vice Chairman Gort: Wasn't that passed already? Commissioner Winton: No. We never voted. Commissioner Teele: Call the question. Mayor Carollo: Call the question. Commissioner Sanchez: Call the question. The following motion was introduced by ' Commissioner Regalado, who moved its adoption: MOTION NO. 00-709 A MOTION INSTRUCTING THE CITY ATTORNEY TO CONSULT WITH EACH MEMBER OF THE CITY COMMISSION TO OBTAIN THEIR INPUT REGARDING MODIFICATION OF THE CURRENT COMPOSITION OF THE OFF-STREET PARKING AUTHORITY'S EXISTING GOVERNING BOARD STRUCTURE AND DRAFT SEVERAL VARIATIONS TO THE PROPOSED CHARTER AMENDMENT RESOLUTION, CONSISTENT WITH THE COMMISSIONERS' SUGGESTIONS, TO BE CONSIDERED BY THE COMMISSION AT ITS SPECIAL MEETING OF SEPTEMBER 7, 2000. Submitted into the public record in connection �o item -J-1 on `�- Walter Foeman 26 w.. city clerk July 27, 2000 Upon being seconded by Vice Chairman Gort, the motion was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Arthur E. Teele, Jr. Commissioner Johnny L. Winton NAYS: None. ABSENT: None. Mayor Carollo: OK. You could go ahead and chair. Go ahead. Vice Chairman Gort: What other motions to come? Any other motions? Commissioner Teele: Mr. Mayor, you want to just leave this abolishing alone? Mayor Carollo: I do not, Commissioner. If the Commission wants to vote it down... Commissioner Teele: I would move that the... Mayor Carollo: ... it is the right of it. Commissioner Teele: ...Attorney be instructed to draft a resolution related to Item S-1, which abolishes the Off -Street Parking. Vice Chairman Gort: There's a motion. Is there a second? There's a motion. Is there a second? Commissioner Sanchez: Second. Vice Chairman Gort: Discussion? Being none, all in favor state by saying «aye » Commissioner Winton: No. Submitted into the public 27. July 27, 2000 record in connection with item on — 7-06 Walter Foeman � ®_ 71 _....... _._._... _ CcW Ci _ Vice Chairman Gort: One nay. The following resolution was introduced by Commissioner Teele, who moved its adoption: RESOLUTION NO. 00-710 A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO PREPARE AN AMENDMENT TO THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, FOR CONSIDERATION AT AN ELECTION TO BE HELD ON 14OVEMBER 7, 2000, PROPOSING AN AMENDMENT TO DELETE, UPON THE APPROVAL OF THE ELECTORATE, SECTION 23 OF THE CITY CHARTER, TO EFFECTUATE THE TRANSFER OF ALL POWERS, FUNCTIONS, DUTIES AND OBLIGATIONS OF THE DEPARTMENT OF OFF- STREET PARKING TO THE CITY OF MIAMI, EFFECTIVE , 200_. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Commissioner Sanchez, the resolution was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Arthur E. Teele, Jr. NAYS: ABSENT: Submitted into the public record in connection with item on q 7 -00 Walter Foemari City Clerk Commissioner Johnny L. Winton None. 28 July 27, 2000 00- 714 Commissioner Teele: All right. Mayor Carollo: Thank you, Commissioners. Vice Chairman Gort: Any other motions? Commissioner Teele: Mr. Chairman? Vice Chairman Gort: Yes, sir. Commissioner Teele: Is the Budget Director here? Mr. Gimenez: Yes, sir. Vice Chairman Gort: Yes. Commissioner Teele: Could you refresh my recollection — what is our new Budget Director's... Mr. Gimenez: Ms. Linda Haskins. Commissioner Teele: Ms. Haskins, how much money are we showing carry forward at this point on the — for the FY 2001 budget from reserves? Ms. Linda Haskins (Budget Director): From reserves, the projection has been about sixteen point one million dollars ($16,100,000). There -- in total. There's four point nine million, which is called Operating Reserves. Commissioner Teele: Operating Reserves, yes. Ms. Haskins: One million of that. There are several components of that. Submitted into the public record in connec _®n with item on —co Walter Foeman City clerk 29 July 27, 2000 00- "11.74 Commissioner Teele: Now, are you aware, specifically, of the jackpot that the Oversight Board did to the City last year by ruling that reserves cannot be carried over into the new budget as a part of your revenue? Ms. Haskins: My understanding is that the Oversight Board wanted that four point nine million to be used to build our general reserve. Commissioner Teele: So, the point I want everybody to understand is, the budget should be constructed realistically under what the Oversight Board — there's no advantage, the way the Oversight Board has done this. I don't agree with it. I mean, it's not normally done that way, but -- in quote, "saving" money. So, there is right now a reserve of — an operational reserve of approximately four million dollars ($4,000,000) — four point nine million dollars ($4,900,000). Ms. Haskins: That's what's in the projection, and that is what we plan to do. Commissioner Teele: So, I would move that the Manager be authorized to expend up to blank dollars to support the efforts of the resolution relating to the FEC (Florida East Coast) investigation and the Bayfront Park Oversight Committee from the Operational Reserves. Mr. Manager, could you give us the dollar amount, please? Mr. Gimenez: Yes, sir. We requested two hundred thousand dollars ($200,000) that could be used... Commissioner Teele: Two hundred thousand dollars ($200,000). I would so move. Commissioner Winton: Perfect. Second. Commissioner Sanchez: Second. Vice Chairman Gort: Up to two hundred thousand. Commissioner Sanchez: Up to two hundred... Commissioner Teele: Up to two hundred thousand. Commissioner Winton: Right. Second. Submitted into the public 30 July 27, 2000 record in conne-lion with item on Walter Foeman 00— 714 ..�........,........�.._r,t,n..:......._ ......... _...... Clerk .. Commissioner Sanchez: Either use it or lose it. Commissioner Winton: Right, right, right. Vice Chairman Gort: Second. Now, you don't have to use it all. Commissioner Sanchez: No, we don't. Just what we need. Vice Chairman Gort: As a cap. OK. Any further discussion? Being none, all in favor state by saying "aye." The Commission (Collectively): Aye. The following resolution was introduced by Commissioner Teele, who moved its adoption: RESOLUTION NO. 00-711 PENDING LEGISLATION (Here follows body of resolution, omitted here and on file in the, Office of the City Clerk.) Upon being seconded by Commissioner Sanchez, the resolution was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Arthur E. Teele, Jr. Commissioner Johnny L. Winton NAYS: None. ABSENT: None. Commissioner Teele: I would also move that the Manager be authorized to select vendors or consultants that have already been competitively bid and awarded by the City and that he submit, for ratification, any consultant that Submitted into the public record in connection With 31 July 27, 2000 item ►9" on 7—U6 Walter Foeman rity Clerk 0®"` 714 v is utilized in this project, so that he doesn't have to wait – in other words, we. selected about ten architect engineers under the Public Works Miscellaneous Contract. They have contracts standing there waiting. So, in effect, he can select from any of those contractors and move forward on the FEC issue and on the Bayfront Trust issue, and submit those decisions for ratification by the board. I would so move. Commissioner Winton: Second. Vice Chairman Gort: Moved and second. Discussion? Being none, all in favor state by saying "aye." The Commission (Collectively): Aye The following motion was introduced by Commissioner Teele, who moved its adoption: MOTION NO. 00-712 A MOTION AUTHORIZING THE CITY MANAGER TO SELECT VENDORS OR CONSULTANTS THAT HAVE ALREADY COMPETITIVELY BIDED AND BEEN AWARDED CONTRACTS BY THE CITY; FURTHER DIRECTING THE MANAGER TO SUBMIT FOR RATIFICATION BY THE COMMISSION, ANY CONSULTANT THAT HAS BEEN PREVIOUSLY ENGAGED BY THE CITY, INVOLVING THE FEC (FLORIDA EAST COAST) AND BAYFRONT PARK MANAGEMENT TRUST PROJECTS. Submitted into the public record in connection with item LL— on Walter Foeman City Clerk 32 July 27, 2000 00— 71 Upon being seconded by Commissioner Winton, the motion was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Arthur E. Teele, Jr. Commissioner Johnny L. Winton NAYS: None. ABSENT: None. Vice Chairman Gort: Do I have a motion to adjourn? Commissioner Sanchez: Motion to adjourn. Vice Chairman Gort: Have a good one. The following motion was introduced by Commissioner Sanchez, who moved its adoption: MOTION NO. 00-713 A MOTION TO ADJOURN TODAY'S CITY COMMISSION MEETING. Upon being seconded by Commissioner Winton, the motion was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Arthur E. Teele, Jr. Commissioner Johnny L. Winton NAYS:. None. ABSENT: None. Submitted into the public record in connection with 33 July 27, 2000 item on 7, ?,a° Walter Foeman 00 �` w� 4 r;1: Clerk El THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION, THE MEETING WAS ADJOURNED AT 7:05 P.M. ATTEST: Walter J. Foeman CITY CLERK Sylvia Lowman ASSISTANT CITY CLERK (SEAL) Submitted into the public record in connec ion with item P- on 7 - o Walter Foeman City Clerk JOE CAROLLO -MAYOR 34 July 27, 2000 006 714 C F I D �' ff�,'d_` b'D�'G� Bell �.'�fi�'����'a"3E1' �,��,�J� la waoter Fulzmmtart �' city D E P A R T M E N T OF OFF - STREET I P A, R- K I N G COMPREHENSIVE ANNUAL ; FINANCIAL R-EPORT COMPONENT UNIT. OF THE CITY OF MIAMI MIAMI, FLORIDA FISCAL YEAR ENDED SEPTEMBER 30, 1999 00- 7,14 COMPREHENSIVE ANNUAL FINANCIAL REPORT COMPONENT UNIT OF THE CITY OF MIAMI MIAMI, FLORIDA FISCAL YEAR ENDED SEPTEMBER 30, 1999 1 PREPARED BY THE 1 D E P A R T M E N T H C 1 Submitted into thepublic record connection with item on a ? --O d Waiter Foeman City Clerk ALBERT M® MANDUCA, CPA CHIEF FINANCIAL OFFICER This Page Left Intentionally Blank - . is �o DEPARTMENT OF OFF-STREET PARKING . OF THE CITY OF MIAMI Component Unit Financial Report TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal Principal Officials Organization Chart Certificate of Achievement FINANCIAL SECTION Report of Independent Auditors Financial Statements Balance Sheets Statements of Revenue, Expenses and Changes in Retained Earnings Statements of Cash Flows Notes to Financial Statements Supplemental Schedules Schedule of Revenue and Expenses — Budget and Actual Schedule of Parking System Revenue Bonds, Series 1998 Debt Service Requirements STATISTICAL SECTION Historical Schedule of Revenue and Expenses Historical Schedule of Debt Service Coverage Total Number of Parking Spaces Parking Revenue Per Space Demographic Data Growth Factors I grgr r�bM/�ilte�d !"to the Ptabllc ROm �g G Walter F0eman Crty Clerk PAGE 1-11 12 13 14 15-16 17-18 19 20 21-41 42 43 1 Y r4 4k Yl MC �,%#k P 1' `'xvf 2 f°Yh k � YF G 3 49-50 4 51-52 DEPARTMENT OF OFF-STREET PARKING . OF THE CITY OF MIAMI Component Unit Financial Report TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal Principal Officials Organization Chart Certificate of Achievement FINANCIAL SECTION Report of Independent Auditors Financial Statements Balance Sheets Statements of Revenue, Expenses and Changes in Retained Earnings Statements of Cash Flows Notes to Financial Statements Supplemental Schedules Schedule of Revenue and Expenses — Budget and Actual Schedule of Parking System Revenue Bonds, Series 1998 Debt Service Requirements STATISTICAL SECTION Historical Schedule of Revenue and Expenses Historical Schedule of Debt Service Coverage Total Number of Parking Spaces Parking Revenue Per Space Demographic Data Growth Factors I grgr r�bM/�ilte�d !"to the Ptabllc ROm �g G Walter F0eman Crty Clerk PAGE 1-11 12 13 14 15-16 17-18 19 20 21-41 42 43 1 44-46 2 47-48 3 49-50 4 51-52 5-1 53-54 5-2 55 �� 714 o, This Page Left Intentionally Blank COMPREHENSIVE ANNUAL 1 FINANCIAL R E PORT COMPONENT UNIT OF THE CITY OF MIAMI MIAMI, FLORIDA INTRODUCTORY S E C T I O N 1 "We will meet the city's needs by working in partnership with and being responsive to, our internal and external customers and measurably improving performance and striving for 1 excellence in all aspects of business." 7 Submitted into tine public recor='nnecion with iteralon ^ I? -Go Waiter Foeman -City Clerk 1 ®®-- 714' DE OF P OFF R T - STREET M E :N T P a4 R F'I N G COMPREHENSIVE ANNUAL 1 FINANCIAL R E PORT COMPONENT UNIT OF THE CITY OF MIAMI MIAMI, FLORIDA INTRODUCTORY S E C T I O N 1 "We will meet the city's needs by working in partnership with and being responsive to, our internal and external customers and measurably improving performance and striving for 1 excellence in all aspects of business." 7 Submitted into tine public recor='nnecion with iteralon ^ I? -Go Waiter Foeman -City Clerk 1 ®®-- 714' March 24, 2000 Honorable Mayor and Members of the City of Miami Commission: ARTHUR NORIEGA, V Executive Directcr We are pleased to submit the Department of Off -Street Parking of the City of Miami (the "Department") Comprehensive Annual Financial Report for the fiscal year ("FY") ended September 30, 1999. This report has been prepared in accordance with guidelines set forth by the Government Finance Officers Association. The Department is responsible for the accuracy, completeness and fairness of the presented data, including disclosures. We believe the data presented is accurate and is set forth in a manner designed to represent fairly the financial position and results of operations of the Department. This report was prepared to enhance the financial reporting of the Department's operation. All disclosures necessary to enable the reader to gain the 1 maximum understanding of the financial activities of the Department have been included. The Comprehensive Annual Financial Report is presented in three sections: introductory, financial and statistical. The introductory section includes this transmittal letter, the Department's organizational chart and a list of principal officials. The financial section includes the component unit financial statements and schedules, as well as the independent auditors' report on the financial statements and schedules.. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis. REPORTING ENTITY AND ITS SERVICES 1 The Department, also known as the Miami Parking System, was created in 1955 by a Special Act of the Florida State Legislature. The Department's enabling legislation was incorporated into the City of Miami Charter in 1963. As a semiautonomous agency of the City of Miami, the Department receives no property tax support. During its 44 -year history, the Department has been supported solely by the revenue generated through its operation. The Department is governed by the five -member Off -Street Parking Board (the `Board"). The Board has the powers, duties and responsibilities customarily vested in the board of directors of a private corporation and exercises supervisory control over the operations of the off-street and on -street parking facilities of the City. The Miami City Commission retains the final authority for the approval of the Department's annual budget and rate structure, with the exception of leased and managed facilities, the confirmation of appointments to the Board and the issuance of parking revenue bonds. As a component unit of `the City of Miami, the financial. statements of the Department are incorporated as a proprietary fund into the City of Miami's Comprehensive Annual Financial Report. 1 As of September 30, 1999, the Department managed approximately 17,000 spaces, including four garages, 60 surface lots and over 6,300 on -street meters. The Department provides parking for about 7,000,000 vehicles annually. Submitted into the public record . in connection with item Walter Foeman 71 Department of Off Street Parking 190 N.E. Third ,Street • Miami, Florida Tltlj3,T,1-3T,-el: 305-373-6789 • Fax: 305-371-9431 r.. yny Submitted into the public =record in bonne ion with k: �' Honorable Mayor and Members - item on ! ` Walter Foeman of the City of Miami Commission City Clerk -� The Department operates facilities which it owns, as well as facilities owned by other governmental units, nonprofit entities and public/private sector joint ventures. Non -Department -owned facilities operated under management or lease agreements include: • City of Miami ' Orange Bowl Stadium — approximately 4,000 spaces • City of Miami NationsBank Tower (formerly CenTrust Tower -Knight Center) and Municipal Lot Nos. 1, 28, 57-60 and 67 (3,037 spaces) • Miami -Dade County ; L Municipal Lot Nos. 18, 22, 23, 26, 34, 44, 45, 46 and 48 (1,224 spaces) t • State of Florida Municipal Lot Nos. 6, 11-17, 29, 30, 32; 33, 36-39, 42, 49-56 (2,386 spaces) ` • Miami -Dade Community College Municipal Lot No. 9 (223 spaces) • Archdiocese of Miami Municipal Lot No. 41 (102 spaces) • Martin Luther King Economic Development Corporation and R.J. Properties Municipal Lot No. 7 (66 spaces) • Grovites United To Survive (G.U.T.S.) Municipal Lot No. 25 (35 spaces) • Federal Government Municipal Lot No. 10 (2 10 spaces) i In addition to on -street and off-street parking operations, the Department shares responsibility with the City of Miami Police Department for the ticketing and towing of illegally parked vehicles. TI e Department also shares responsibility. with Miami -Dade County for enforcement of parking regulations. Although. the'; Department participates in these enforcement and regulatory responsibilities, the Department receives riot parking fine revenue. All parking fine revenue generated within the City of Miami by the Department iso collected by the Miami -Dade County Clerk of the Circuit and County Courts, and is allocated to the City of Miami (66.67 percent) and Miami -Dade County (33.33 percent). During 1998-99, Department'traffic, management enforcement efforts generated approximately $1.5 million in parking fine revenue for the City of Miami and approximately $750,000 for Miami -Dade County. The Department manages, under a separate management agreement, the, operations of the Knight Center—, NationsBank Tower (formerly CenTrust Tower) Garage for the City. Under the terms of the agreement, the' Department receives a management fee based on a percentage of gross revenue for this garage, which isl recorded as revenue from management and administrative fees on the Department's financial statements. Because all ownership rights and ultimate financial responsibility for these operations are held by the City,I these operations are`excluded from the Department's reporting entity. 2 •� (Continued)+ .. Submitted into the public Honorable Mayor and Members record ec rdin oonection with oItem f the City of Miami Commission Walter Foeman City Clerk A unique nonparking-related responsibility of the Department is the management of the historic 1,710 -seat Gusman Center for the Performing Arts and the Olympia Office Building owned by the City of Miami. The Gusman Center and Olympia Building ("G&O") complex was donated to the City of Miami in 1975 by its benefactor, Maurice Gusman, with the stipulation that the facility be managed by the Department. The City of Miami traditionally has provided deficit funding, as necessary, to operate the facility. In 1994, the City of Miami selected a developer and entered into a lease agreement which provided for the redevelopment of the Olympia Building into 80 units of affordable housing. Construction of these units was completed January 1997. This lease provides a guaranteed income stream used to partially fund the complex. The operation of the ("G&O") complex is separately accounted for by the City of Miami under the title of the "G&O Special Revenue Fund," and are excluded from the Department's reporting'entity. 1 The Department sponsors a defined benefit plan in which all full-time Department employees participate. Disclosures regarding the pension plan's operations, as a single employer public employee retirement system, are presented in the notes to the financial statements in lieu of presentation on the face of the Department's financial statements as a fiduciary fund type so as not to distract from the reporting of the Department's primary operations. During the past several years, the Department of Off -Street Parking has experienced rapid change both in terms of operational responsibilities and its role in the community development process. The Department's traditional role of meeting the parking needs of the City of Miami has been expanded to include fostering an awareness of parking as an integral component of a balanced transportation system (public and vehicular) and the community development process. The Department's expanded role in community involvement is demonstrated in various parking -related projects geared at neighborhood beautification and economic development, as well as continued participation on civic and governmental committees. The Department's continued role in community involvement is demonstrated as follows: • During 1999, the Department continued its innovative employment program, SCOOP, short for the 1 Student Cashiers of Overtown Program. This program for Overtown youth, developed by the Overtown Advisory Board, the Department of Off -Street Parking and Miami -Dade County Public Schools, utilizes full-time high school students as part-time cashiers in the Department's parking lots servicing the Miami Arena. All of the students reside in the Miami Arena area, and are well paid, receive valuable work experience and can compete for scholarships for college. I The Department continues its participation in neighborhood advisory committees which provide a vehicle for citizen participation in the Department's decision-making process. • The Board and Department continue participating in civic and governmental committees to share resources and provide input on decisions which impact on the area's transportation needs and the City of Miami community development process. • The Board and staff continue to support the Friends of Gusman Center, a not-for-profit organization which provides a vehicle for private citizens and corporations to support the preservation and enhancement of Gusman Center for the Performing Arts. With the assistance .of the Board, the Friends of Gusman Center and the Department, the Florida Legislature awarded $210,000 in restoration grants to the theater for the 1996-97 fiscal year. 3 (Continued) 1 0 • Honorable Mayor and Members of the City of Miami Commission ECONOMIC AND INDUSTRY FACTORS L] Submfffed fnto the pulAa record I winection wl Item on 7 7- ulp Walter Foeman City Clerk The City of Miami encompasses 34.3 square miles of land and 19.5 square miles of water, and is the county seat of Miami -Dade County, which encompasses 2,000 square miles of Florida's southeastern region. Miami is situated at the mouth of the Miami River on the western shore of Biscayne Bay and is the main port of entry in Florida. Miami is the southernmost major city and seaport in the continental United States. The nearest foreign territory is the Bahamian Island of Bimini, 50 miles from the Miami coast. Miami has a subtropical - marine climate, characterized by long summers with abundant rainfall and mild, dry winters. The average temperature in the summer is 81.4 degrees Fahrenheit and 69.1 degrees Fahrenheit in the winter, with an average annual temperature of 75.3 degrees. The economic base of Greater Miami has diversified in recent years, shifting from a reliance on the tourism industry to a combination of manufacturing, service industries and international trade. The City of Miami has a resident population in excess of 365;000 and a work force within .the City in excess of 150,000. Total motor vehicle registrations within the City and Miami -Dade County, taken as a whole, exceed 2.3 million. The Department is charged with meeting the public parking needs within the City limits. The implementation of the Miami -Dade County Rapid Transit System (Metrorail) is one of . the most important developments affecting Miami -Dade County in general, and Downtown Miami in particular. The system, which became operational in 1985, passes through the western portion of Miami's Central Business District and has 21 stations.. The system became operational in 1985.. The Downtown Component of Metrorail is an extension of the Metrorail Transit System that distributes passengers throughout Miami's Central Business District. It consists of a two-way elevated rail line around the District's core. Construction was completed in 1995 on two spur lines now operational extending. north and south to the Omni and Bricke11 portions of the downtown area. The central core line became operational in 1986. Most public sector parking programs use parking revenue to fund their operating budgets. Within the United States, more than 71 percent of municipal parking operations derive their operating budgets from parking revenue. The Department also funds its operating budget, including debt service, from parking revenue. Revenue from parking ticket fines go to the general fund of the City of. Miami and Miami -Dade County governments. On -street meter revenue Garage revenue Lot revenue Penalties and fines Interest Management and administrative fees Parking taxes Other, including towing revenue Where the Monev Comes From 0.7% 1.2% Department 1.0% Industry (1) 1999 1998 1997 _ 1996 20.1% 25.7% 23.3% 22.3% 22.7% 35.2% 21.2% 21.2% 21.7% 22.3% 13.4% 44.8% 45.4% 45.4% 45.2% 14.0% -% -% -% -% 2.4% 6.3% 8.3% 8.6% 7.9% 0.7% 1.2% 1.2% 1.0% 0.8% -% -% -% 13.4% 0.8% 0.6% 1.0% 100%, 100% 100% 100% 7. 4 00- 714 (Continued) 0 I IJ 11111,11 0 0 t1! • Submitted into the public Honorable Mayor and Members record in conne tion with of the City of Miami Commission item -a— on Walter Foemart, City Cleric (1) Source: `Benchmarking The Parking Profession," published by the International Parking Institute (IPI), 1998. During FY 1998-99, the Department's parking enforcement efforts generated approximately $1.5 million in parking fine revenue for the City of Miami and in excess of $750,000 for Miami -Dade County. Such revenue is not included in the Department's financial statements. During the fiscal year 1997-98 the Department continued its conversion to electronic parking meters. An additional 1,500 meters were installed, bringing the total electronic meter inventory to approximately 3,500. In the United States and Canada, the average municipal operations include 12 surface lots and two garages. The Department's operation includes 60 surface lots and four garages. Within the United States, municipal parking operations average 9,500 spaces in the Northeast, 5,000 in the Southeast, 4,200 in the Midwest, and more than 11,000 on the West Coast. The average number of municipal on -street parking spaces ranged from 750 within cities with populations under 50,000 to more than 22,800 within cities with populations of over 1 million.. The Department manages over 6,300 on -street parking spaces within the City of Miami. The following is a summary of municipal on -street and off-street parking spaces with related population sizes: Total City size spaces 0 to 100,000 2,500 100,000 to 200,000 5,000 250,000 to 500,000 7,800 500,000 to 1 million 20,800 + 1 million 22,800 Department 16,806 L111", F1 (Continued) 00- 714 The following is a summary of municipal parking expenses nationwide compared to the Department: Where the Money Goes ' Department Industry (1) 1999 1998 1997 1996 Returned to government (2) 1.7% 22.8% -% -% -% Interest expense 19.2% 6.7% 12.0% 11.3% 12.2% Contract service, rentals . and assessments (3) 14.8% 19.1% 35.1% 27.4% 26.5% Utilities and insurance Maintenance and repairs 6.6% 21.9% . 6.4% 4.6% 7.1% . 5.5% 8.3% 6.9% .9.2% 7.3% Personnel 35.8% 40.4% 40.3% 46.1% 44.8% 100% 100% 100% 100% 100% L111", F1 (Continued) 00- 714 During 1994-1995, the Department wrote down a piece of surplus real property to market value. This R adjustment resulted in a loss for impairment of land value of $278,000. During 1995-1996, the Department sold a piece of surplus property for $1.3 million. During 1996-1997, the Department acquired two pieces of land for $4.748 million to be used for,'future parking facilities. During 1997-1998, the Department sold a piece of land to the federal government for approximately 52..0 million. (a) Interest expense includes amortization of bond discounts. (b) Nonoperating expenses include: Gains and losses on disposal of fixed assets in years 1995 to 1999; losses due to write-down in market value of land; gain and losses due to impairment of bond values in 1995; and valuation changes due to valuating investments at fair market value from 1997 to 1999. 6 (Continued) :a .714 { Submitted into the public Honorable Mayor Members 1 conn- 0 7�� � �� and item on item of the City of Miami Commission WcAter Foeman City Clerk (1) Source: "Benchmarking The Parking Profession," published by the International. Parking Institute. (2) From 1995 to 1999, the Department has contributed over $2.0 million annually in parking fine revenue to local government. In addition, starting in 1999, the Department transferred excess revenue, totally $2,281,520, to the City under -a five-year agreement. F (3) During 1998, the Department incurred a litigation expense of $1.05 million related to the settlement of a long-term lease and developmental agreement. FINANCIAL HIGHLIGHTS The following is a summary of financial highlights of the- Department for the fiscal years ended September 30, 1995 through 1999 (amounts in dollars, except debt service ratio): Fiscal years ended September 30, 1995 -1996 1997 1998 1999 Total revenue including interest S 10,318,912 11,157,040 11,494,233 11,735,126 11,525,272 Operating expenses before depreciation, and amortization (6,659,374) (7,087,871) (7,343,345) (8,441,288) .. (7,040,132) Depreciation and amortization (837,580) (827,006) (880,960) (1,022,359) (1,036,664) Interest expense(a) (1,023,468) (984,946) (937,682) (1;148,423) (666,087) Nonoperating income (expenses)(b) (26,262) 43,985 (50,045) 2,068,908 (678,953) Net income (loss) before extraordinary item S 1,772,228 2,301,202 2,282,241 3,191,964 2,103,436 - Debt service coverage'ratio (see Exhibit 2) 1.96 2.18 2.23 1.77 3.72 Property, plant and equipment, net 18,274,807 16,974,740 21,839,548 21,521,356 22,030,375 Long-term bonds payable, net 16,774,221 15,864,019 14,912,404 14,055,000 12,799,167 Amount available in restricted reserve accounts, net 2,721,073 8,840,120 9,437,354 10,880,783 10,161,040 Number of spaces (see Exhibit 3) 18,601 17,455 17,355 - 16,923 16,806 Average revenue per space (see Exhibit 4) 579:11 b25.06 642.59 677.36 684.12 During 1994-1995, the Department wrote down a piece of surplus real property to market value. This R adjustment resulted in a loss for impairment of land value of $278,000. During 1995-1996, the Department sold a piece of surplus property for $1.3 million. During 1996-1997, the Department acquired two pieces of land for $4.748 million to be used for,'future parking facilities. During 1997-1998, the Department sold a piece of land to the federal government for approximately 52..0 million. (a) Interest expense includes amortization of bond discounts. (b) Nonoperating expenses include: Gains and losses on disposal of fixed assets in years 1995 to 1999; losses due to write-down in market value of land; gain and losses due to impairment of bond values in 1995; and valuation changes due to valuating investments at fair market value from 1997 to 1999. 6 (Continued) :a .714 Honorable Mayor and Members of the City of Miami Commission During 1998-1999, the Department defeased its Series 1992 and 1993 Parking System Revenue Bonds. Concurrently, the Department issued approximately $13.5 million of Series 1998 Parking System Revenue Bonds. Effective with the 1998-1999 fiscal year, the Department signed a five-yearagreement with the City of Miami, whereby the Department agrees to transfer all its operating revenue in, excess of operating expenses, debt service payments, replacement and renewal capital requirements and working capital requirements to the City. The agreement specifies minimum excess revenue requirement that the Department has to meet on an annual basis. The Department's debt service coverage for each of the last five years has exceeded the requirements of the bond indentures. PROSPECTS FOR TAE FUTURE During FY 1999-2000, the goals of the Department are to continue to increase revenue, hold operating expense increases below the rate of increase in the consumer price index and put into operation one additional garage and parking lot. These goals will be achieved through the following: • Continued upgrading and retrofitting of the financial accountingsystem and financial reporting Y eP g software which will expedite financial report preparation, improve budgetary and expenditure controls and increase staff productivity. This will also include upgrading the computer hardware system which is required to facilitate the above goals. • Continuation of a facilities inspection and maintenance training program for facility managers to ensure standardization of routine maintenance and compliance with Department requirements. Continued maintenance of neighborhood, parking advisory committees to increase public participation and understanding of the Department's operations. • Continued replacement of mechanical meters to a fully electronic meters. This will enhance our revenue management capabilities while increasing revenue and reliability. • Continuation of employee training and development programs at all levels of the.. organization. The Board intends to ensure that the Department, continues to meet the City's public parking needs in a cost effective manner, while facing the challenge of increasing requests for Department -funded activities and joint venture projects with the private sector and other governmental units. The Department has also identified additional parking needs and opportunities for the future. The following is a partial list of potential projects to be undertaken during the next three years: Submitted into the Public record in connection with item - on Walter Foeman " City Clerk ;; (Continued) 11, Honorable Mayor and Members of the City of Miami Commission 5 X11 i Submitted into the public record ire . connection with item - 14�'f on — a u Walter Foeman City Clerk • Oak Street Parking Plaza: Construction of this 410 space parking garage and retail plaza has been going on for about a year. The facility is expected to open around June 2000 and should relieve the chronic parking shortage in the Coconut Grove area. Interest in leasing the retail space has been very strong. Riverside'Parking Lot: This 100 space parking lot is to be constructed adjacent to the City of Miami administration center. Construction is expected to commence in the first quarter of 2000. Watson Island Parking Lots: With the relocation of the Parrot Jungle 'to Watson Island, as well as the: development of a new state-of-the-art visitor's center, heliport and seaplane facility, the Department is negotiating to build two parking lots. The first will serve the Parrot Jungle and accommodate primarily buses, the second lot will provide additional public parking for all facilities. BUDGETARY CONTROLS The Board reviews and approves an. annual operational budget which includes the detail of anticipated revenue and expenses for each facility and specific areas of responsibility. Once approved by the Board, the. budget is submitted to the Miami City Commission for ratification through a public hearing. As part of the budget review process, two reports are submitted to the Board. These include: 1) a monthly and year-to-date statement of revenue and expenses designed to show actual financial performance vs. budget: and prior year's actual results, and 2) a five-year strategic plan which provides, among other things; estimates and projections of future capital projects, changes to operations and financial performance. Based on a review of these reports, the Board determines if the overall Department financial- performance justifies proceeding with capital projects in their established priority order. To ensure .that the financial stability of the Department is maintained throughout the implementation of the: capital program, the Board uses the above -budget review process in its capital implementation authorization process. In this process, financial resources available for the capital program and income availability for debt service are monitored on a regular basis. The expected revenue level must be achieve_ d before additional spending for new projects is authorized. ACCOUNTING SYSTEMS AND INTERNAL CONTROL The Department follows generally accepted accounting principles (GAAP) applicable to governmental units' Departmental accounting records are maintained on an accrual basis. The Department utilizes a custom-designed computerized garage revenue control system which significantly improves accuracy of daily audits of garage operations: The system, by the use of a bar-code reader„ automatically enters and records all ticket transaction. information into the computer to enhance the internal accounting controls of the Department. Management of the Department is. responsible for establishing and maintaining an internal control structure: designed to ensure that the assets of the Department are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally, accepted accounting principles. The internal 'control structure has been designed to provide reasonable, but not absolute, assurance regarding safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for , preparing financial statements and maintaining 8 (Continued) 00- 71 it l t Submitted into the public Honorable Mayor and Members record in connection with of the City of Miami Commission item P on 2— 2 —dd Walter Foeman City Clerk accountability. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and that the evaluation of costs and benefits requires estimates and judgment by management. All internal control evaluations occur within the above framework. DEBT ADNMNISTRATION The Bond Indenture requires the Department to establish parking rates that are adequate to, cover all operational costs and to maintain a 1.50 debt service coverage ratio. 1 In August 1986, Parking System Revenue Bonds Series 1986 ("Series 1986 Bonds") in the amount of $16,275,000 were sold to advance refund the Parking System Revenue Bond Series 1983 ("Series f 983 Bonds") having an outstanding balance of $13,545,000. At September 30, 1992, the Series 1986 Bonds. outstanding totaled $14,440,000. The Series 1986 Bonds are secured by a pledge of all Department revenue. In December 1986, Subordinated Parking System Revenue Bonds Series 1986 in the amount of $2 million were issued to purchase a parcel of land contiguous to an existing Department -owned garage for the purpose of future expansion. The Subordinated Parking System Revenue Bonds Series 1986 are secured by a pledge of system revenue on a basis subordinate to the Parking System Revenue Bonds Series 1986 -and a bank Letter of Credit. The lender has exercised his right to put the bonds to the Department on December 31, 1993. The bonds were paid using unrestricted funds of the Department. During 1989, the Department and the City of Miami entered into a participation agreement to draw up to $6.5 million in funding under the First Municipal Loan Council Pooled Loan Program sponsored by the Florida League of Cities for the proposed Coconut Grove Playhouse Garage project. The Pooled Loan Program was created using the proceeds of the Series 1985 First Municipal Loan Council Pooled Loan Program Revenue Bonds and is available to qualified county and municipal governments within the State of Florida. As of September 30, 1991, $1,065,000 had been drawn on the participation agreement. In April 1992, Parking System Revenue Bonds Series 1992A ("Series 1992A Bonds") in the amount of $4,725,000 were sold to advance refund the Subordinated Parking System Revenue Bonds Series 1990 ($3.5 million) and the Department's obligations under a Participation Agreement with the First Municipal Loan Council ($1.07 million). This advance refunding enabled the Department to establish fixed rates of interest on a long-term basis for these obligations. In March 1993, Parking System Revenue Bonds Series 1993A in the amount of $15,515,000 were issued to advance refund the Series 1986 Bonds. This advance refunding enabled the Department to take advantage of the current low interest rates with an estimated net present value savings in excess of approximately $1.2 million without an increase in the original maturity date. The total debt service savings will be $1.7 million. In 1998, the Department's bonds were rated A- and A3 by Standards and Poors Corporation and Moody's Investors Services. On November 23, 1998, the Department issued $13,490,000 of 1998 Series Parking System Revenue Refunding Bonds, with an average .interest rate of 4.68 percent. Approximately $2,400,000 of the proceeds, together with 57191000 of 1992 -Series debt reserve and sinking funds, were used to advance refund $2.92 million of outstanding 1992 Series parking revenue bonds with an average interest rate of 6.4 percent. These funds were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments of the 1992 Series bonds. As a result, the 1992 Series bonds will be considered to be defeased and the liability for these bonds will be removed from the financial statements. ® 9 (Continued) 00 714 Honorable Mayor and Nlembers of the City of Miami Commission Submitted into the public record 'n connection item on Walter Foeman City Clerk In addition, approximately $10,693,000 of the proceeds were used to establish a 1998 Project account to fund future capital projects. On November 23, 1998, the Department utilized $9,900,000 of unrestricted cash and $1,772,000 of 1993 Series debt reserve and sinking funds to defease $11,140,000 of outstanding 1993 Series bonds with an average interest rate of 5.25 percent. The funds used to defease the 1993 Series bonds have been deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on these bonds and, accordingly, said bonds are considered as defeased and all liabilities associated with said bonds will be removed from the financial statements. During FY 1998-99, all bond covenants related to debt service (such as ratios of net income to debt service and sinking- funds) were met or exceeded. Comparative information for previous years is presented in the statistical section of this report in Exhibit 2. CASH AIANAGEirIENT. In FY 1998-99, the total restricted and unrestricted investments earned . interest income of $722,517. Available unrestricted funds are invested in certificates of deposit, overnight repurchase agreements and the Local Government Surplus Funds Trust Fund administered by the State Board of Administration, instruments of the U.S. Government and an Investment Trust Fund. During 1998-99, unrestricted investment earned interest income of $282,943 .for an average yield of 5.11 percent. Available restricted funds were invested jh direct obligations of the U.S. Government, money market accounts and certificates of deposits. During FY 1998-99, restricted investments held for debt service earned interest income of $439,574, resulting in an average yield of 4.14 percent. In 1998, the Department adopted GASB 31, "Accounting and Financial Reporting for Certain Investments and- External Investment Pools." As . a result, the Department recorded revenue of $688,011 in -1998, representing the net increase in fair value of its investments. The Department .also restated the results for 1997 and recorded a loss of $84,210, representing the net decrease in fair value of the investments for that 'Year. RISK MANAGEMENT The Department has obtained conventional commercial insurance coverage against customary risks of losses. In addition, the Department manages risk through various employee education, inspection and prevention programs. INDEPENDENT AUDIT The Department's Bond Indenture and the Florida, Statutes require an annual independent audit. of the financial statements. This was accomplished in the current fiscal year by KPMG LLP ("KPMG"), independent certified public accountants, in association with the minority-owned accounting firms of Verdeia & Gravier and Sharpton, Brunson & Company, P.A. The independent auditors' report of KPMG is included in the financial,section of this report. 10 (Continued) 71 u • Honorable Mayor and Members of the City of Miami Commission CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting for the thirteenth consecutive year to the 1 Department for its component unit financial report for the fiscal year ended September 30, 1998. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Component Unit Financial Report whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Department believes that its current Component Unit Financial Report continues to conform to Certificate of Achievement Program requirements and it is being submitted to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS We would like to thank the members of the Off -Street Parking Board for guidance and support m the monitoring of the financial affairs of the Department in a progressive and responsible manner. Through the efforts of the Off -Street Parking Board, the City Commission, City of Miami department and agencies and the Department staff, the achievements described in this report have become a reality. We also wish to express our appreciation to the members of the Department staff who contribute specifically to the preparation of this report. Respectfully submitted, ZH. 1 Chairman of the Board 1 Arthur Noriega, V Executive Director Albert M. Manduca, CPA Chief Financial Officer Submitted into the public record in connection. W.1th item Pon,� Walter F0eman City Cl PRINCIPAL OFFICIALS City of Miami Commission -� Joe Carollo Tomas Regalado Mayor Vice Mayor , Wilfredo Gort Jose Sanchez ' Commissioner Commissioner Johnny Winton Arthur E. Teele, Jr. Commissioner Commissioner Donald Warshaw City Manager Off -Street Parkine Board of Directors Arthur H. -Hertz, Chairman Dr. Eduardo Padron Chief Executive Officer President Wo metco Enterprise, Inc. Miami -Dade Community College Michael Kosnitzky, Esquire Shalley A. Jones Partner Chairperson of Finance Committee Zack and Kosnitzky, P.A. Director South Florida Partnership Office Margarita Rohaidy Delgado Fannie Mae Owner 1000 Brickell Avenue,, S-600 MRD Consulting Miami, Florida 33131 { Director Emeritus Department of Off -Street Parking Executive Staff Arnold Rubin _ Arthur Noriega, V, Executive Director Director Emeritus, President Albert M. Manduca, CPA, Chief Financial Officer HUB Department Stores (Retired) Department Auditors Submitted into the public KPMG LLP -in association with record In connlh Verdeja & Gravier and item on=. Sharpton, Brunson & Company, P.A. Walter Foeman City Cledt . I 12 . �.. Department of Off -Street Parking Organization- Chart Miami City Commission City Off -Street Manager Parking Board Executive Director Director Acting Chief Director Director Director Administration Managing Merger Financial Planning & Operations Human and Director Community Officer Development Resources Enforcement Gasman Relations Center Submitted into the public record . in connec ion with Iters -44— on /alter Foeman 1 City Ciedlc 13 -� 714 Certificate of Achievement for Excellence In Financial Reporting Presented to Department of Off -Street Parking of the City of Miami, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30; 1998 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest Submitted into the public - standards in government accounting record in Connection with and financial reporting. item o; a Walter Fo( city President Executive Director 14 �'° 714 II' E Submitted into the public record in conne Item ction with . on —=J,U Walter Foeman City Clerk D E P A R T M E NC,vT OF OFF - STREET P A R K I N G COMPREHENSIVE ANNUAL FINANCIAL- REPORT COMPONENT UNIT OF ' THE CITY OF ' MIAMI MIAMI, FLORIDA F I N A N C I A L S E C T I O N !yy C a Y �- H Y r� This Page Left Intentionally Blank - - I I r. t� �i u r n D I1 1 11 E, n F, r Submitted into the public record in connecti�an item on with - -crx Walter FOeman City Clerk COMPREHENSIVE ANNUAL FINANCIAL REPORT COMPONENT UNIT OF THE CITY OF MIAMI MIAMI, FLORIDA F I N A N C I A L S T A T E M E N T S 0- 714 a` This Page Left Intentionally Blank i I� . 1 'I - 1 I1 1 ri 11 H I "I One Biscayne Tower Suite 2800 2 South Biscayne Boulevard Miami, FL 33131 Independent Auditors' Report Chairman and Members of the Off -Street Parking Board of the City of Miami, Florida: Telephone 305 358 2300 Fax 305 913 2692 We have audited the accompanying balance sheets of the Department of Off -Street Parking of the City of Miami, Florida (the "Department") as of September 30, 1999 and 1998, and the related statements of revenue, expenses and changes in retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the Department's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. . As discussed in note 1, the financial statements present only the Department and are not intended to present fairly the financial position of the City of Miami, Florida, and the results of its operations and cash flows of its proprietary fund types in conformity with generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Department at September 30, 1999 and 1998, and the results of its operations and its cash flows for the years then ended in conformitywith generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated December 10,1999, on our consideration of the Department's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Submitted into the Public record in connection with iteral on Walter Foeman City Clerk 15 .714 �.. ® South Florida Business Unit KPMG U.P. KPMGKPMG h, a U.S. limped "lisiry S0C'-tr5nlp, s Miami Fort Lauderdale West palm Beach, 'a member of KPMG Internabonai, a Sw+ss assacianon. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole: The supplemental schedules included in the financial section on pages 42 and 43 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole. We did not audit the data included in the introductory and statistical sections of the Department's comprehensive annual financial report, and accordingly, express no opinion thereon. December 10, 1999 1 1 1 1 1 1 1 1 16 I<', PMG LLP Submitted into the record in con Public Item �neciionon x Walter FoaMan City Clerk: �-- 7. z , t DEPARTMENT OF OFF-STREETYARKING OF THE CITY OF MIAMI, FLORIDA Balance Sheets September 30, 1999 and 1998 Assets 1999 1998 _ Current assets: Cash and cash equivalents (note'3) $ 3,677,275 1,476,862 Investments and accrued interest receivable (note 3) 1,513,163 3,738,782; Accounts receivable (note 4) Prepaid expenses and 117,172 224,007 other current assets 231,318 219,018_ Total current assets 5,538,928 5,658,669 Restricted assets: Cash and cash equivalents (notes 3 and 7) 10,105,486 2,324,310 Investments and accrued interest (notes 3 and 7) 55,554 9,556,453_ Total restricted assets 10,161,040 11,880,763 Property and equipment, net (note 6) 22,030,375 21,521,356_ ..� Other assets: Other receivables (note 4) 843,102 843,220 .Rental advances on leased lots (note 5) 264,717 281,796 Bond issuance costs Land held for resale 371,432 485,000 — 973,048 Total other' assets 1,964,369 2,097,946 Total assets $ 39,694,712 41,158,734_ See accompanying notes to financial statements. Submitted into the public record in connection with (Continued) item on Walter Foeman City Clerk 17 00,x,, %4 Liabilities and Fund Equity Current liabilities: Accounts payable and accrued liabilities Deposits Due to other governments Deferred revenue Total current liabilities Current liabilities payable from restricted assets: Current portion of bonds payable (notes 7 and 8) Interest payable Total current liabilities payable from restricted assets Long-term liabilities: Bonds payable, net of current portion (notes 7 and 8) Plus unamortized bond premium Total long-term liabilities Total liabilities Fund equity: Contributed capital (note 13) Retained earnings: Reserved for revenue bond retirement Reserved for replacement, renewal, and new projects Unreserved Total retained earnings Total fund equity Commitments and contingencies (note 11) - Total liabilities and fund equity 18 1999 1998 $ 2,281,305 2,519,538 56,565 51,441 1,178,989 1,017,840 h "• 252,813 3,819,755 3,841,632 Liabilities and Fund Equity Current liabilities: Accounts payable and accrued liabilities Deposits Due to other governments Deferred revenue Total current liabilities Current liabilities payable from restricted assets: Current portion of bonds payable (notes 7 and 8) Interest payable Total current liabilities payable from restricted assets Long-term liabilities: Bonds payable, net of current portion (notes 7 and 8) Plus unamortized bond premium Total long-term liabilities Total liabilities Fund equity: Contributed capital (note 13) Retained earnings: Reserved for revenue bond retirement Reserved for replacement, renewal, and new projects Unreserved Total retained earnings Total fund equity Commitments and contingencies (note 11) - Total liabilities and fund equity 18 1999 1998 $ 2,281,305 2,519,538 56,565 51,441 1,178,989 1,017,840 302,896 252,813 3,819,755 3,841,632 540,000 1,015,000 304,456 422,898 844,456 1,437,898 12,799,167 14,055,000 134,582 — 12,933,749 14,055,000 17,597,960 , 19,334,530 1,890,675 1,000,000 256,625 3;512,865 9,059,959 6,930,000 10,889,493 10,381,339 20,206,077 20,824,204 22,096,752 21,824,204 $ 39,694,712 41,158,734 Submitted into the record corl�aecrrc� Public iters Witt, " 7 -ov Walter Foeman City Cleric �� I A f''"7t� •"yip 1b�..'.-S1i 'vj' E R FN. DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA Statements of Revenue. Expenses and Changes in Retained Earnings Years ended September 30, 1999 and 1998 1999 1998 Operating revenue: Parking lots S 5,164,406 5,326,50;8 On -street facilities 2,960,154 2,734,309 Off-street facilities 2,447,764 2,486,221 Management and administrative fees (note 10) 139,153 138,771 Other 91,278 75,1&S 10,802,755 10,760,97:5 Operating expenses: Salaries, wages and fringe benefits (note 9) 4,032;282 3,865,112 " Repairs and maintenance 460,198 528,397 Security Utilities 411,747 438,164 Insurance 261,877 268,774 Property rentals and assessments (notes 5 and 6) 381,246 665,705 411,996 999,259 - Legal and professional 304,646 443,553 Printing and supplies 174,370 155,39fi Litigation (note 11) _ 1,050,000 Other . 348,061 280,637 7,040,132 8,44123r Operating income before depreciation and amortization 3,762,623 2,319,687' Depreciation and amortization 1,019,590 _1,005,285 Amortization of rental advances (note 5) 1 2,074 17,074 �{ Operating income 2,725,959 1,297,328_ Nonoperating revenue (expenses): Interest income: Current investments 282,943 789 239 Restricted investments 439,574 184,912 - Net increase (decrease) in fair value of investments – current (258,345) 483,544 Net increase (decrease) in fair value of investments – restricted (13,763) 204,467 Interest expense (666,203 423) (1,38 Gain on disposals ofproperty and ui ment note 14 � P ( ) 81,203 1,380,897 ,897 Other Other (note 14) (488,048) — Total nonoperating (expenses) revenue, net (622,523) 1,894,636_ Net income before operating transfers and before extraordinary items 2,103,436 3,191,964 Transfer to primary government (note I I (b)] (2,281,520) — Net (loss) income before extraordinary items (178,094) 3,191,964 Loss on early extinguishment of debt (note 8) (440,043) — Net (loss) income (618,127) 3,191,964 Retained earnings, beginning of year 20,824,204 17,632 240 Retained earnings, end of year S 20,206,077 20,824,204 Submitted into the public See accompanying notes to financial statements... record connection Vp item k Walter F®eman City Clerk,- lerk:19 19 00y 714 r C F" U, 1999 1998 Cash flows from operating activities: Operating income S 2,725,959 ;.a Adjustments to reconcile operating income to net cash (1,500,000) — provided by operating activities: h Depreciation and amortization 1,019,590 1,005,285 Amortization of rental advances 17,074 17,074 Change in assets and liabilities: DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA — Decrease (increase) in accounts receivable 117,548 Statements of Cash Flows Increase in prepaid expenses and other (446,382) — current assets Years ended September 30, 1999 and 1998 (2,248) C F" U, 1999 1998 Cash flows from operating activities: Operating income S 2,725,959 1,297,328 Adjustments to reconcile operating income to net cash (1,500,000) — provided by operating activities: Depreciation and amortization 1,019,590 1,005,285 Amortization of rental advances 17,074 17,074 Change in assets and liabilities: 12,916,188 — Decrease (increase) in accounts receivable 117,548 (167,783) Increase in prepaid expenses and other (446,382) — current assets (12,300) (2,248) (Increase) decrease in other receivables (118) 191,555 (Decrease) increase in accounts payable and (4,911,413) 273,837 accrued liabilities (238,233) 701,420 Increase in deposits 5,124. 1,890 Increase (decrease) in due to other governments 161,149 (5,276) Increase(decrease)in deferred revenue 50,083 (88,027) Total adjustments 1,119,917 1,653,890 Net cash provided by operating activities 3,845,876 2,951,218 Cash flows from investing activities: Interest received 794,471 927,535 Proceeds from sales and maturities of investments 34,291,101- 10,588,208 Purchase of investments (22,538,446) (12,415,615) Net cash provided by (used in) investing activities 12,547,126 (899,872) Cash flows from noncapital financing activities Operating transfer out (1,500,000) — Net cash used in noncapital financing activities (1,500,000) — Cash flows from capital and related financing activities: Payments for capital acquisitions (2,246,518) (1,373,976) Proceeds from sale of capital assets 504,879 2,070,671 Proceeds from issuing bonds 12,916,188 — Repayments on bonds (15,745,726) — Bond issuance and defeasance costs paid (446,382) — Interest paid on long-term debt (784,529) (422,858) Receipts of contributed capital . 890,675 — Net cash (used in) provided by financing activities (4,911,413) 273,837 Net increase in cash and cash equivalents 9,981,589 2,325,183 Cash and cash equivalents at beginning of year (including 52,324,310 and 5697,083 in restricted assets in 1999 and 1998, respectively) 3,801,172 1,475,989 Cash and cash equivalents at end of year (including $10,105,486 and 52,324,310 in restricted assets in 1999 and 1998, respectively) S 13,782,761 3,801,172 Supplemental schedule of noncash operating, investing, and financing activities: During fiscal 1999, the Department transferred title to property with a book value of 5300,000 as part of a settlement agreement related to the Coconut Grove Playhouse lawsuit The Department recorded a 5488,048 loss in value on property held for resale during fiscal 1999. The net change in the fair value of investments was a decrease of $272,108 in 1999 and an increase of 5688,01 I during 1998. SUk"itted int( See accompanying notes to financial statements. record in ( pthe �th� connewon ilii ' item � On } 20 Walter Foeman City Clea (1) 0 DEPARTMENT OF OFF-STREET PARKING OF THE CITY.OF MIAMI, FLORIDA Notes to Financial Statements. September 30, 1999 and 1998 Submitted into the public General record connection n with�� item on 9 (a) Description Walter Foeman City Cleric The Department of Off -Street Parking of the City of Miami (the "Department") was originally created in 1955 by a special act of the Florida State Legislature and subsequently incorporated; into the City of Miami, Florida's (the "City") Charter in 1968. The Department is an agency and instrumentality of the City, which owns and operates parking facilities within the City. The five -member Off -Street Parking Board (the "Board") exercises supervisory control over the operations of the Department. The City Commission (the "Commission") has reserved the right. to confirm new Board members; to establish and fix rates and charges for parking services, to approve the Department's operating budget and to authorize the issuance of'revenue bonds. All other duties have been vested in the Board. Therefore, the City is financially accountable and discretely presents the Department as a Proprietary Fund type in the City's comprehensive annual financial report. (b) Reporting Entity For financial reporting purposes, the Department includes those operations that are generally controlled by or dependent on the Department. Control by or dependence on the Department is determined on the basis of such factors as budget adoption, outstanding debt secured by revenue of the Department, obligation of the Department to finance any deficit that may occur or receipt of significant subsidies from the.Department. The Department manages, under separate management agreements, the operations of , the Downtown Government Center Garage and the James L. Knightllntemational Center Garage for the` City (see note 10). Under the terms of the agreements, the Department receives a management fee based on a percentage of gross revenue for each garage, which is recorded as revenue from management and administrative fees in the Department's financial statements. Because all ownership rights and ultimate financial responsibility for these operations are held by the City, these operations are excluded from the Department's reporting entity. In addition to the managed garage facilities, under City Ordinance No. 8435,the City authorized the Board to administer the operations of the Gusman Center for the Performing Arts and the Olympia Building properties owned by the City. Such operations are separately accounted for by the Board and reported by the City under the title of the "G&O Special Revenue Fund." No management fee is paid to the Department. All operating budgets of the G&O Special Revenue Fund must be approved by the Commission. In the ,event that operating revenue of the G&O Special Revenue Fund is not sufficient to cover its operating expenses, the Department or the City will fund the cash shortage. Cash needs funded by the Department are reimbursed by the City. The G&O Special Revenue Fund operations, are excluded from the Department's reporting entity. 21 .0 ®m �" 14I (Continued) Ff DEPARTMENT OF.OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 The Department is the sole sponsor of a defined -benefit pension plan that is mandatory for all full-time Department employees. Disclosures regarding the pension plan's operations as a single - employer public -employee retirement system are presented in note 9 in lieu of presentation on the face of the Department's financial statements as a fiduciary, fund type so as not to distract from the reporting of the Department's primary operations. (c) Basis of Presentation Based on the accounting and reporting standards set forth in Government Accounting Standards Board ("GASB") Statement No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other Government Entities that Use Proprietary Fund Accounting," the Department has opted to apply only the accounting and reporting pronouncements issued by the Financial Accounting Standards Board prior to November 30, 1989. (d) Budget Requirements Pursuant to the charter of the City, the Department, is required to prepare and submit an annual operating budget for approval by the City Commission at least one month before the end of the preceding fiscal year. The Department's budget is prepared on a basis consistent with generally accepted accounting principles based upon estimates of revenue and expenses for the upcoming fiscal year. The budget is presented to the.Board, which must approve the budget prior to its presentation to the City Commission. The level of budgetary control is on the overall Department level. No budget revisions were deemed necessary during fiscal 1999 and 1998. e (2) Summary of Significant Accounting Policies 1 The following is a summary of the Department's significant accounting policies: (a) Basis of Accounting The Department utilizes the accrual basis of accounting. Under the accrual basis, revenue is recorded when earned and expenses are recorded when obligations are incurred or when benefits are received. The measurement focus is on the flow of economic resources, whereby all assets and liabilities associated with its operations are included in the balance sheet. (b) Cash Equivalents For the purposes of the accompanying statements of cash flows, the Department considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Submitted into the record tonne Rtataiic iteM &�ron with -----On 22 welter F_© (Continued) City Clerk 00- 714 (d) DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 Submitted into the public With record in co one�ti on _610 item Walter Foeman Investments City ClerK The Department records investments with maturity dates of greater than one yeavat the time of purchase at fair value on the balance sheets. Fair value is defined by GASB Statement No. 31, as the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. All investment income, including .changes in the fair value of investments, are reported as revenue in the Statements of Revenues, Expenses, and Changes in Retained Earnings. Pension plan investments are discussed in note 9. Accounts Receivable The Department uses the specific identification method to establish any necessary allowance for doubtful accounts. (e) Restricted Assets and Reserved Fund Balance Assets required to be segregated by bond ordinance or contractual obligations are identified as restricted assets. Restricted assets, net of liabilities payable therefrom, are offset by reserves established by. a segregation of retained earnings. Restricted assets at September 30, 1998 represent moneys required to be restricted under the terms of City Ordinance No: 10115 (the `Bond Ordinance"), as supplemented and amended pursuant to City Ordinance No. 10941 related to the Series 1992A and 1993A Parking System Revenue Bonds. Restricted.assets at September 30, 1999, represent moneys required to be restricted under the terms of City Ordinance 11693, as amended by City Ordinance No. 11719, and as supplemented by City Resolution No. 98-814 related to the Series 1998 Parking System Revenue Refunding Bonds. (n Property and Depreciation Property is recorded at cost. Expenditures for minor renewals and betterments are expensed when incurred. Major renewals and betterments are capitalized as property acquisitions. Depreciation on property is provided using the straight-line method. Depreciable lives are as follows: Parking garages Leasehold improvements. Furniture and fixtures Equipment 40 years 5-20 years 5-10 years 3- 10. years When property is disposed of, the related cost and accumulated depreciation are removed from the accounts and gains or losses are reflectedin net income. 23� .. (Continued) n 11 11 r t 11 I'll v DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 Interest costs associated with Department borrowings (revenue bonds) used for construction projects are capitalized as a part of the assets being funded during the construction phase, net of related interest earned on unexpended portions of such borrowings. There were no capitalized interest costs in 1999 and 1998. (a) Premiums, Bond -Issuance Costs, and Deferred Losses Premiums and bond -issuance costs on the revenue bonds are amortized using the interest method and the straight-line method, respectively, over the maturity of the related issue. Deferred losses an advance refundings are amortized using the straight-line method over the remaining life of the refunded bonds. (h) Compensated Absences The Department accrues a liability for vacation pay and sick -leave pay as it is earned by its .employees up to the maximum allowed to be carried forward into the subsequent year. Since potentially all the accrued vacation pay and sick -leave pay may be used in the upcoming year, the accrual (totaling $511,610 and $541,475 at September 30, 1999 and 1998, respectively) is included in current accrued liabilities. (i) Use of Estimates Management of the Department has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from these estimates. (j) Deferred Revenue Deferred revenue consists primarily of parking fees received in advance from monthly customers. Amounts are to be recognized as revenue in subsequent periods as they are earned. (k) Reclassifications Certain amounts in the 1998 financial statements have been reclassified in order to conform with the 1999 presentation. Submitted into the Public record in connection v'vith item on-- -?_W Walter Foeman City Clerk 24 (Continued) U0 (a) Investments The Department's investments, both restricted and. unrestricted, include U.S. government direct obligations (treasury notes) and investments in -two pooled funds managed by a trustee. . Investments are categorized to give an indication,, of the level of risk assumed by the entity at i year-end.. The three categories of credit risk as defined by GASB Statement No. 3 are as follows: �. (i) Insured or registered, or securities held by the entity or its agent in the entity's name; (ii) Uninsured and unregistered, with securities. held by the counterparty's trust department -or a agent in the entity's name; and (iii) Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent, but not in the entity's name. All U.S. treasury securities held at September 30, 1999 and 1998, meet the criteria of category two, as they are unregistered and held by the counterparty financial institution's trust department in the Department's name. The Department's investment with the Florida State Board of Administration is not categorized under the provisions of GASB Statement No. 3 as it is not evidenced by securities that exist in physical or book -entry form. Submitted into the public record in cunnection with item on Walter Fdema ll14 25 0 (Continued) City cleat t DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, `FLORIDA Notes to Financial Statements -�i September 30, 1,999 and 1998 _a (3) Cash and Cash Equivalents, and Investments r At September 30, 1999 and 1998, the Department's cash and cash equivalents, and investments consisted of the following: 1999. 1998 U.S. government securities 'S 1,517,355 13,155,777 Repurchase agreements — 16,142 Total investments 1,517,355 13,171,919 i Cash management fund 10,105,486 2,324,310 Demand deposits Ar 2,942,477 778,271 Florida State Board of Administration _ 734,798 698,591 Accrued interest 51.,362 123,316 .Total cash and cash equivalents, and investments S' 15,351,478 17,096,407 " r� (a) Investments The Department's investments, both restricted and. unrestricted, include U.S. government direct obligations (treasury notes) and investments in -two pooled funds managed by a trustee. . Investments are categorized to give an indication,, of the level of risk assumed by the entity at i year-end.. The three categories of credit risk as defined by GASB Statement No. 3 are as follows: �. (i) Insured or registered, or securities held by the entity or its agent in the entity's name; (ii) Uninsured and unregistered, with securities. held by the counterparty's trust department -or a agent in the entity's name; and (iii) Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent, but not in the entity's name. All U.S. treasury securities held at September 30, 1999 and 1998, meet the criteria of category two, as they are unregistered and held by the counterparty financial institution's trust department in the Department's name. The Department's investment with the Florida State Board of Administration is not categorized under the provisions of GASB Statement No. 3 as it is not evidenced by securities that exist in physical or book -entry form. Submitted into the public record in cunnection with item on Walter Fdema ll14 25 0 (Continued) City cleat DEPARTMENT OF OFF-STREET PARKING . , OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 Under the terms of the Department's revolving repurchase agreement, overnight investments are collateralized by U.S. government securities held by the counterparty's trust division in the name of the counterparty. Accordingly, the revolving repurchase agreement, which totaled $-0- and $16,142 at September 30, 1999 and. 1998, respectively, is classified in credit -risk category three under GASB Statement No. 3. GASB Statement No. 31, "Accounting and Reporting for Certain Investments and for External Investment Pools," requires disclosure of investments at fair value and the recognition of unrealized'gaim and losses, if material, for investments held by the. Department. The Department's investments as of September 30, 1999, are summarized as follows (with an indication of risk related to each investment): Category Fair 1 2 -3 value U.S. government — — securities $ 1,517,355 1,517,355 Repurchase agreements - — — — Total $ — 1,517,355 — 1,517,355 The net decrease in the fair value of investments during 1999 was $272,108. This amount takes into account all changes in fair- value (including purchases and sales). that occurred during the year. The Department's investments as of September 30, 1998, are summarized as follows (together with an indication of risk related to each investment): Category Fair 1 2 3 value U.S. government securities $ — 13,155,777 — 13,155,777 Repurchase agreements 16,142 16,142 Total $ — 13,155,777 16,142 13,171,919 The net increase in the fair value of investments during 1998 was $688,011. This amount takes 1 into account all changes in fair value (including purchases and sales) that occurred during the year. Submitted Into the public record in connection watt, item jL-.� on �® Walter Foeman 26 city (Continued) �� ��I ZI �. t, DEPARTMENTOF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 (b) Cash Management Fund The Cash Management Fund consists of funds invested primarily in money market accounts. The use of these funds is restricted by the Series 1.998 bond ordinance for the purposes of making debt service payments and funding new construction projects. (c) Deposits As of September 30, 1999 and 1998, the book balance of demand. deposits was $2,942,477 and $778,271, respectively, while the balance reported by depository institutions was $171,684 and $185,009, respectively. The difference between the Department's carrying amount and the bank balance is due to deposits in transit, outstanding checks, .and amounts invested overnight under a revolving repurchase agreement with the Department's bank. In addition to coverage provided by the Federal Deposit Insurance Corporation (the "FDIC"), all of the Department's demand deposits are held in banking institutions which are approved by the Treasurer of the State of Florida to hold public funds. Under Florida Statutes Chapter 280, "Florida Security for Public Deposits Act," the State Treasurer requires all qualified public depositories to deposit with the Treasurer or another banking institution, eligible collateral equal to between 50 percent and. 125 percent of the average daily balance for each month of all public deposits in _ excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. government and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the 'depository's financial history and its compliance with Florida Statutes Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. (d) Florida State Board of Administration . The Department has invested in a pooled investment fund (Local Government Surplus Funds Trust Fund) maintained by the Florida State Board of Administration, which is available only to Florida county and local governments pursuant to Florida Statute 218.. The nature of investments is subject to approval of the Board; which reviews investment performance on a periodic basis. Submitted into the public recordconnection with item I® on !Walter Foeman City Clerk 27 6 (Continued) 17 .7 I� �I I 1 1 1 1 1 1 1 1 1 1 1 1 6 1 DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI; FLORIDA Notes to Financial Statements September 30, 1999 and 1998 Submitted into. the public record n connection with item on (4) Accounts and Other Receivables . Walter Foemen City Clerk Accounts receivable as of September 30, 1999 and 1998, consists of the following: 1999 Current: 1998 Trade accounts receivable, net of reserves $ 26,088 162,830 Due from the City of Miami 91,084 49,599 Due from other governmental entities and managed facilities — 11,578 Long-term: Due from G&O Special Revenue Fund 117,172 224,007 843,220 843,102 Total $ 960,392 1,067,109 The reserve for doubtful accounts as of September 30, 1999 and 1998, was $41,275 and $67,775, respectively. Approximately $650,000 of the September 30, 1999 amounts due from G&O Special Revenue Fund were paid subsequent to year-end. The remaining balance is to be funded by the City. (5) Rental Advances Funds expended by the Department to construct or improve certain parking facilities on property leased from outside parties are recorded as rent advances to the lessor. The following summarizes rental advances as of September 30, 1999 and 1998: 1999 1998 Miami Arena -area lots leased from City of Miami $ 743,416 743,416 Other lots 609,425 609,425 Total rental advances 1,352,841 1,352,841 Accumulated amortization (1,071,050) (1,053,971) Net rental advances 281,791 298,870 Current portion (17,074) (17,074) Rental advances, long-term portion $ 264,717 281,796 28 (Continued) 00- 714 t `i D EPARTMENT OF OFF-STREET PAItIQNG OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1,999 and 1998 Rental advances are amortized on a straight-line basis over the.term of each lease agreement. Suc rental advances are included as amortization expense of $17,074 in 1999 and 1998, pertaining to lots i the Miami Arena area. Net income generated by the parking facilities is -shared with the lessors under various revenu allocation provisions. Such allocations are included in property rentals and totaled $323,143 an $570,011 for 1999 and 1998, respectively. (6) Property and Equipment, Net The Department's property and equipment consists of the following as of September 30, 1999 an 1998: 1999 1998 Land $ 10,343,705 10,708,706 Buildings and structures 16,651,582 16,628,083 Leasehold improvements' 5,138,972 5,707,160 Furniture and fixtures 771,699 820,122 Equipment 5,137,459 5,365,460 38,043,417 39,229,531 Less accumulated depreciation and amortization (18,237,402) : (18,043,989) 19,806,015 '24 j 185,542 . Construction in progress 2,224,360, 335,814 $ 22,030,375 21,521,356 Submitted into the public record in connection with item _ on Walter Foeman City CJedc 29 (Continue( DEPARTMENT OF..OFF-STREE'I'_PARKING OF THE CITY OF MIAMI, FLORIDA - Notes to Financial Statements September 30, 1999 and 1998 The cost of property and equipment as of September 30, 1999 and 1998, is summarized by function as follows: (7) Long -Term Debt The City has authorized and issued revenue bonds on behalf of the Department. The principal and interest of the revenue bonds are payable solely from the revenue of the parking facilities and, accordingly, are included in the accounts of the Department. The Department's long-term debt activity during 1999 and 1998 is as follows (in thousands): Series Series Series 1993A 1902A 1998 Total Balance, September 30, 1998 $ 11,875 3,195 — 15,070 Additions of new debt - - — 13,490 13,490 Retirements and payments (11,875) (3,195) (15,070) Balance, September 30, 1999 $ — — 13,490 13,490 Bondsayable as of September 30 1999 also include an unamortize P ep d deferred loss on the advance refunding of the Series 1992A bonds of approximately $151,000. Subtllitted into the Public record in connection witil Lftern ort Walter Foden City Cleric 30 (Continued) 00- 714 1999 1998 Parking garages $ 20,089,473 20,065,973 Parking lots 5,138,972 5,772,160 Parking meters 2,769,765 3,063,216 Land held for future development 6,192,177 6,492,177 Office improvements 713,639 713,639 e$ Equipment and fixtures 3,139,391 3,122,366 38,043,417 39,229,531 (7) Long -Term Debt The City has authorized and issued revenue bonds on behalf of the Department. The principal and interest of the revenue bonds are payable solely from the revenue of the parking facilities and, accordingly, are included in the accounts of the Department. The Department's long-term debt activity during 1999 and 1998 is as follows (in thousands): Series Series Series 1993A 1902A 1998 Total Balance, September 30, 1998 $ 11,875 3,195 — 15,070 Additions of new debt - - — 13,490 13,490 Retirements and payments (11,875) (3,195) (15,070) Balance, September 30, 1999 $ — — 13,490 13,490 Bondsayable as of September 30 1999 also include an unamortize P ep d deferred loss on the advance refunding of the Series 1992A bonds of approximately $151,000. Subtllitted into the Public record in connection witil Lftern ort Walter Foden City Cleric 30 (Continued) 00- 714 DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MaAMII, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 The.following summarizes the debt service to maturity of outstanding debt as of September 30, 1999 (in thousands): October 1. Total 1999 $ 844 2000 1,172 2001 1,174 2002 1,175 2003 1,171 Thereafter 14,077 Total 19,613 Less: Long-term interest payable 5,819 Current portion of long-term debt 844 Unamortized deferred loss 151 Total long-term debt $ 12,799 Range of rates 3.75%-5.25% During fiscal 1999, the City issued the City of Miami, Flbrida Parking System Revenue Refunding Bonds, Series 1998 ("Series 1998 bonds"). The Series 1998 bonds were issued to (i) refund the City's outstanding Parking System Revenue Bonds Series 1992A which had an aggregate principal amount outstanding of $2,920,000; (ii) to finance the cost of acquisition, construction and installation of certain additions and improvements to the Parking System; (iii) to fund, together with any other legally available funds, the Series 1998 Reserve Account; (iv) to pay certain litigation settlement costs and. expenses related to the Coconut Grove Playhouse lawsuit; and (v) to pay the costs of issuance of the Series 1998 bonds. Simultaneously with the issuance of the Series 1998 bonds, the City applied other legal available funds to defease the $15,515,000 Parking System Revenue Bonds; Series 1993A, which had an outstanding aggregate principal amount of $11,135,000. The Series 1998 bonds are secured by a pledge of, and payable solely from net revenue of the Parking System, the right of the City to receive net revenue, and the money and investment obligations in tl:e funds and accounts established under the Ordinance and the income derived from such investment obligations and the investment of such money. The Series 1998 bonds are not subject to optional redemption prior to maturity. Submitted into the public record in connection with. . item - on Walter Foeman F_ " eFsso GJty Clerk 31 .r it (Continued) t • • DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 D The Series 1998 term bonds maturing on October 1, 2012, are subject to mandatory redemption prior to maturity, by operation of a sinking -fund account, at a redemption price equal to par plus interest accrued to the redemption date, on October 1, 2011, and on each October 1 thereafter, in the following principal amounts in the years specified: Principal Year amount 2011 $ 910,000 2012 960,000 The Series 1998 bonds maturing on October 1, 2015, are subject to mandatory redemption prior to maturity, by operation of a sinking -fund account, at a redemption price equal to par plus interest accrued to the redemption date, on October 1, 2014, and on each October 1 thereafter, in the following principal amounts in the years specified: Principal Year amount 2014 $ 1,060,000 2015 1,115,000 Under the terms of the Series 1998Bond Ordinance, the City and the Department are required, among other things, to establish rates and collect fees and charges which will be sufficient at all times to: (a) pay the costs of current expenses for the fiscal year, (b) create and maintain specified reserves for such purposes, and (c) maintain a debt -service coverage of at least 1.50 percent. The amounts on deposit in the various long-term debt related restricted -asset accounts plus accrued interest as of September 30, 1999 and 1998, are as follows: 1999 1998 Interest account $ 493,377 774,238 Principal account 551,351 910,037 Reserve account 56,353 2,266,488 Renewal, replacement and project accounts 9,059,959 7,930,000 Total $ 10,161,040 11,880,763 Submitted into the Public record 9 Ci�tttt�c:t?t6`) item � on /alter Foeman City Cie* 32 (Continued) r DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI1- `FLORIDA Notes to Financial Statements - September 30, 1999 and 1998 No Department assets are pledged to collateralize any of the outstanding debt. Under the terms of the Bond Ordinance, the Parking System Revenue Refunding Series 1998 bonds outstanding at ` September 30, 1999, do not constitute an obligation of the City or a pledge of the faith and credit of the City. i (8) Defeased Debt (a) Series 1992A Bonds On November 23, 1998, .the Department issued $13,490,000 of 1998 Series Parking System Revenue Refunding Bonds, with an average interest rate of 4.68 percent. Approximately $2,400,000 of the proceeds, together with $719,000 of 1992 Series debt reserve and sinking funds were used to advance refund $2.92 million of outstanding 1992 Series parking revenue bonds with an average interest rate of 6.4 percent. These funds were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments of the 1992 Series bonds until they are called on October 1, 2001. The advance refunding met the requirements of an in- substance defeasance and as such, the 1992 Series bonds have been removed from the financial statements. As a result of the advance refunding, the'Department reduced its total debt service requirements which resulted in an economic gain.(difference difference between the resent by approximately $260,000 hi h g ( P. value of the debt service payments on the old and new debt) of approximately $56,000. The advance refunding of the 1992 Series bonds resulted in a difference between the reacquisition price and the net carrying amount of $171,000. This difference is included as a reduction to bonds payable in the financial statements for fiscal year ended September 30, 1999, and is being amortized as interest expense through the year 2006 (remaining life of the 1992 Series bonds) using the straight-line method.- The unamortized balance is $150,833 at September 30, 1999. 1 (b) Series 1993A Bonds On November 23, 1998, the Department utilized $9,900,000 of unrestricted cash and $1,772,000 of 1993 Series debt reserve and sinking funds to defease $11;140,000 of outstanding 1993 Series bonds with an average interest rate of 5.25 percent. The difference between the net carrying balance of the Series 1993 bonds and the reacquisition price was approximately $440,000 and has been expensed during fiscal year ended September 30, 1999, as early extinguishment of debt. The funds used to defease the 1993 Series bonds have been deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on these bonds and, accordingly, said bonds are considered as defeased and-all liabilities associated with these bonds have been removed from the financial statements. Submitted into the public with record in o()nnet ti item— of WaltW FOA�X City Cly 33 (Continued) DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF NHANH, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 (9) Pension Plan The Department is the sponsor of a single -employer defined -benefit pension plan (the "Plan") which covers all of the Department's full-time employees, including employees within the facilities managed by the Department. The Plan issues a financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Department of Off -Street Parking of the City of Miami, Florida Retirement Plan, 190 Northeast Third Street, Miami, Florida 33132. e A Retirement Board (the "Board") controls and manages the operation and administration of the Plan. A financial institution serves as the Trustee of the Plan. The assets of the Plan are managed by a local financial institution which serves as Trustee and the Board which serves as an investment committee. eAt October 1,* 1998, the date of the latest actuarial valuation, a total of 98 active participants were enrolled in the Plan; there was one retired participant or beneficiary, and there were two terminated vested participants. The financial activity of the Plan is accounted for on the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to the Plan are recognized when due and the Department has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan.. Contributions to provide benefits under the Plan are made by the Department and the Plan's participants. Participants' contributions, as defined by the Plan, are 6.5 percent of base compensation. The Department's contribution is equal to the amount which, when added to the contributions of the participants, equals the cost of providing pension benefits. Administrative costs of the Plan are financed through investment Earnings. Upon retirement, the amount of monthly benefits under the Plan is determined as the average monthly compensation for the last two years of service multiplied by 3 percent for each of the first 10 years of service and by 2 percent for each year thereafter. Benefits are payable in the form of annuity contracts or a lump -sum payment. A terminated member receives at least an amount equal in value to his or her contribution plus interest. Submitted into the public record ii conne ,tion with Item on— 7= Walter Foeman City Clerk 34 (Continued) 0®- 714 i DEPARTMENT OF OFF-STREET PARNINd OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements' September 30, 1999 and 1998 Pursuant to Chapter 112, Part VII of the Florida Statutes, all retirement plans supported in whole or in part by public funds shall have regularly scheduled actuarial valuation reports prepared and certified by an enrolled actuary. Such reports shall be prepared at least every three years and shall be provided to the Florida Department of Administration, Division of Retirement. Any proposed changes in benefits or assumptions must be the subject of a statement of actuarial impact; which must also be submitted to the Division of Retirement. The Plan's net assets held in trust for pension benefits as of September 30, 1999 and 1998, are as follows: Assets: 1999 1993 Investments at fair value: Equity fund $ 3,967,444 3,659,521 Fixed income fund 2,334,169 2,452,868 Short-term cash investment fund 41,433 — Total investments 6,343,046 6,112,389 Other assets: . Employer contribution receivable 250,000 — Participant contributions receivable 9,372 13,263 Total assets 6,602,418 6,125,652 Liabilities: Due to trustee - 83,559 Accrued expenses 12,616 12,124 Due to other governments — 15,280 Total liabilities 12,616 110,963 Net assets available for plan benefits $ 6,589,802 6,014,689 Submitted into the public record in nt- onec with _item Walter Foeman City Clerk 35 • - � . 7.1 (Continued) DEPARTMENT OF OFF-STREET PARKING OF THE' CITY OF M AMI, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 Changes in the Plan's net assets are as follows: Additions: 1999 1998 Contributions: Employer $ 250,000 260,099 Employees 178,215 172,926 Net appreciation (depreciation) in fair value of investments 226,837 (53,327) Dividends and interest on investments 540,235 360,009 Total additions 1,195,287 739,707 Deductions: Benefits paid to participants 551,288 388,815 Administrative expenses 68,886 68,225 Total deductions 620,174 457,040 Net increase 575,113 282,667 Net assets held in trust for pension benefits, . beginning of year 6,014,689 5,732,022 Net asset held in trust for pension benefits, end of ® ® year $ 6,589,802 6,014,689 The following table provides information concerning funding policies: Valuation date October 1, 1998 Actuarial cost method Frozen entry age Amortization method Level dollar closed Remaining amortization period - Various; up to 10 years Actuarial asset valuation method Five-year moving average based on market value Actuarial assumptions: Assumed rate of return on investments 7.5% per annum, compounded annually Mortality basis .1983 Group Annuity Mortality table Employee turnover Tables based on current experience Salary.progression 5.5% increase per annum (without distinction between inflation and merit increases) . Retirement Retirement assumed to occur at the later of age 55 and after five years of service or Submitted into the public completion of 25 years of service record in connection with ROM � on 7 mac/ Walter Foeman 36 (Continued) d . City Clerk 00- 1 A DEPARTMENT OF OFF-STREET PARIMG OF THE CITY OF MIAMI, FLORIDA Notes to Financial Statements -, September 30, 1999 and 1998 7' I The Plan's funding policy provides for actuarially determined rates deemed sufficient to pay benefitsits due. The significant actuarial assumptions used to compute the actuarially determined contribution requirements are the same as those used to compute the pension -benefit obligation. The Plan's investments are valued at market value based upon quoted market prices in accordance wii:h GASB Statement No. 31. Investments in U.S. Treasury and federal agency securities are classified 11is category 2 credit risk in accordance with GASB Statement No. 3 since they are held by the Trustee , serving as the counter party, in the name of the Plan: i Investments that represent 5 percent or more of the Plan's net assets are identified below: { 1999 1998 Number Number of Fair of Fair shires value shares value Investments at fair value . as determined by quoted market price: SunTrust Corporate Equity Fund 6,830 S 1,765,983 7,024 $ 1,467,096 STI Classic Value Income Stock Fund 154,181 1,669,781 134,992 1,663,097 SunTrust Corporate Fixed _. Income Fund 2,529 11985,888 2,703 2,121,197 STT Limited Term Federal Mortgage Securities Fund .35,358 348,281 32;076 331,671 STI Classic International Equity Fund 40;836 531,679 44,184 529,328 Total investments S 6,301,612 S 6,112,389. The required employer contributions and percentage of amounts contributed for the six latest available years follows: Annual • Year ended required Percentage September 30, contribution contributed Submitted into the public 1994 $ 250,000 100% record connection connection with 1995 257,148 100% item r, on 22 6�j 1996 257,630 100% Walter Foeman 1997 222,407 100% City Clerk 1998 260,099. 100% 1999 244,910 100% a 37 �`�` ( (Continued) F" i All direct expenses of the managed garage are paid from the - operations of the facility. Neither the direct expenses nor the revenue of the managed garage are included in the statements of revenue, expenses and changes in retained earnings. Certain administrative costs of the Department are allocated to the managed garage and are similarly reimbursed and recognized as revenue of the Department and operating expenses of the managed garage, in addition to the management fees. A summary of revenue and operating expenses of the facility is as follows: Revenue Operating expenses: Salaries, wages and fringe benefits Other reimbursed expenses Operating income Submitted into the public record i Conne€;tion with item on��-7�i_ Falter Foeman; 38 Citi Clerk ` 1999 1998 S 2,009,917 2,066,437 1 (219,247) - (460,280) DEPARTMENT OF OFF-STREET PARKING S 1,343,709 1,388,899 OF THE CITY OF NE AMI,FLORIDA 1 Notes to Financial Statements September 30, 1999 and 1,998 The following schedule describes the funding progress for the Plan as of October 1,1998: Actuarial UAAL as a Actuarial accrued liability Unfunded percentage Actuarial value of (AAL) (frozen A.4L Funded Covered of covered valuation assets entry age) (UAAL) ratio payroll payroll date (a) (b) . (b -a) (a/b) (c) ((b-a)/c) 10/01/92 S 2,393,989 S 2,717,135 S 323,146 88.1% S 2,433,371 13.3% 10/01/93 2,920,256 3,232,688 312,432. 90.3% 2,412,821 12.9% 10/01/94 2,894,889 3,195,643 300,754 90.6% 2,460,973 12.2% 10/01/95 3,597,791 4,418,911. 821;120 81.4% 2,289,116 35.9% 10/01/96 4,422,667 5,190,692 768,025 85.2% 2,172,622 .35.4% 10/01/97 5,072,288 6,670,254 1,597,966 76.0% 2,099,781 76.1% 10/01/98 5,553,562. 7,027,471 1,473,909 79.0% 2,230,717 66.1% The increase in Unfunded AAL as of October 1, 1997, resulted primarily from a change to the mortality assumption. The mortality table was updated to the 1983. Group Annuity. Mortality Table. (10) Managed Garage Facilities The Department manages the operations of the James L. Knight/International Center Garage, a City - owned parking garage. F" i All direct expenses of the managed garage are paid from the - operations of the facility. Neither the direct expenses nor the revenue of the managed garage are included in the statements of revenue, expenses and changes in retained earnings. Certain administrative costs of the Department are allocated to the managed garage and are similarly reimbursed and recognized as revenue of the Department and operating expenses of the managed garage, in addition to the management fees. A summary of revenue and operating expenses of the facility is as follows: Revenue Operating expenses: Salaries, wages and fringe benefits Other reimbursed expenses Operating income Submitted into the public record i Conne€;tion with item on��-7�i_ Falter Foeman; 38 Citi Clerk ` 1999 1998 S 2,009,917 2,066,437 (205,928) (219,247) - (460,280) (458,291) . S 1,343,709 1,388,899 (Continued) 00- 714 h t DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA Notes ,to Financial Statements September 30, 1999 and 1998 In fiscal 1999 and 1998, the Department received approximately $50,078 and $52,151 in management fees and $53,075 and $50,620 in reimbursement of administration costs, respectively. (11) Commitments;'and Contingencies (a) Contingencies. Certain claims have been filed or are pending against the Department. It is management's opinion that all matters are without merit or are of such kind or involve such amounts, that such .matters would not have a material effect on the financial position of the Department if disposed of unfavorably. (b) Agreement with the City. Pursuant to an agreement between the Ci and .the Department, b'r h'the Department has agreed to transfer to the City, annually for a period of five years beginning during fiscal year ended 199"9, _ an amount equal to the Department's excess revenue after paying operating expenses, debt service payments, meeting all renewal and replacement capital requirements and setting aside reserves for the working capital needs of the Department as determined by, the Board. For fiscal years ended 1999 through 2003, the following are the minimum amounts,. which ttie Department is obligated to transfer to the City for each respective fiscal year: - - I Excess . Fiscal year revenue to be ended transferred 1999 $ 2,275,000 2000 2,317,000 . : 2001 2,410,000 2002 2,294,000. 2003 2,213,000 As of September 30, 1999, $1,500,000 was transferred to the City. The remaining $775,000 due has been accrued for within accounts payable and accrued liabilities and was paid subsequent t:o year-end. J Submitted into the- public record in conner ion with item on Walter Foemarl � City Clef% 39 .. (Continued) DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MMMT, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 (c) . Lawsuit with Coconut Grove Playhouse The Department has a ground -lease agreement with the State of Florida for a state-ownedarkin P g lot adjacent to the Coconut Grove Playhouse. The agreement, which has a term of 50 years with a renewal option of ,25 years, provided terms for the construction and operation of a parking - garage project that would be built on the state-owned property. In addition to the costs already incurred, upon the commencement of the project, $1 million would have been owed to the State of Florida as an inducement payment for entering into the lease agreement. Such fee was to be paid from the proceeds that were obtained in order to construct a parking facility. During fiscal 1999, the Department settled a lawsuit which stemmed from this, ground lease involving the Department, The State of Florida Department of State (the "Department of State") and the Coconut Grove Playhouse ("Playhouse") which contemplated the acquisition, construction and equipping of land and a parking facility in the Coconut Grove area (the "Facility"). Under the terms of the settlement offer, the Department paid $750,000 in cash and transferred property with a book value of $300,000 to the Department of State to resolve this matter. Under the provision of the settlement, the Department is no longer obligated to pay $1 million as inducement upon commencement'of the project. In addition, the Department also received the right to cancel its existing 50 -year, ground lease of the related Coconut Grove area parking lot upon 1.80 days written notice. The settlement amount of $1,050,000 had been fully accrued as of September 30, 1998. During 1999 and 1998, the Department paid rental fees of $200,000 per year in connection with this lease agreement. Future rentals are to be $200,000 per year, subject to annual inflationary adjustments. 1 (12) Risk Management The Department is exposed to various risks of losses related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. For the past several years, the Department has obtained coverage from commercial insurance companies and has effectively managed risk through various employee education and prevention programs. Insurance coverage has exceeded the amount of settlements, for the past three fiscal years. Submi- into record cor�oeChe public item tion with on /alter FoeMan X r . 40 City CirContinued) . l .0 '�11 � DEPARTMENT OF'OPF-STREET PARIING OP THE CITY OF MIAMI, FLORIDA Notes to Financial Statements September 30, 1999 and 1998 (13) Contributed Capital During 1999, the Department was the recipient of $890,675 from the Coconut Grove Improvement Trust Fund. The funds will be used to finance the construction of a parking facility. (14) Other Matters (d) Disposal of Property and Equipment During the fiscal year ended 1999, the Department sold certain equipment and recognized a net gain on the sales. of approximately. $8 1,000. During the fiscal year ended 1998,, the Department sold a piece of land, which had an approximate carrying value of $580,000, to the United States Federal Government. In connection with.this sale, the Department realized a net gain of approximately $1.3 million. (b) Write Down in Market Value of Land Held for Resale In fiscal 1999, the Department recognized .a loss of $488,048 pertaining to a decline in market value on land held for resale. (15) Financial Instruments with Off -Balance Sheet Risk The Department utilizes standby letters of credit to satisfy workers' compensation :insurance security deposit requirements. These letters of credit are irrevocable and have one-year renewable terms. Outstanding standby letters of credit as of September 30, 1.999 and 1998, were $20,571 and $61,229, respectively. The contract amounts of these letters of credit approximate their fair value. The Department utilizes the following stages of work to address Year 2000 issues:. ■ Awareness stage — Establishing a budgetand project plan for dealing with the Year 2000 issue. i . Assessment stage Identifying the systems and components for which Year 2000 compliance work is needed. ■ Remediation stage — Making changes to systems and equipment. Validation/Tesiing stage — Validating and testing the. changes that were made during the remediation stage.. Submitl'edInto the public record )!�conn tion with Item on � i -0/ 41 714 Walter Foeman O _F: City Clerk COMPREHENSIVE ANNUAL FINANCIAL REPORT COMPONENT' UNIT OF THE CITY OF MIAMI .MIAMI, FLORIDA SUPPLEMENTAL S C -H E D U L E S Su'mitted into the record in Public btem ®�� e�ion with Walter F City Cies 00- 714 t: G D'E N:.:T P A R T M E OF OFF - STREET P A R K I N G COMPREHENSIVE ANNUAL FINANCIAL REPORT COMPONENT' UNIT OF THE CITY OF MIAMI .MIAMI, FLORIDA SUPPLEMENTAL S C -H E D U L E S Su'mitted into the record in Public btem ®�� e�ion with Walter F City Cies 00- 714 en f This Page Left Intentionally Blank t a _ t 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA. "'... Schedule of Revenues and Expenses - Budget and Actual Year ended September 30, 1999 Operating revenue: Parking lot On -street facilities Off-street facilities Management and administrative fees Other Total Operating expenses: Salaries, wages and fringe benefits Maintenance, security and other Total Operating income before depreciation and amortization Depreciation and amortization Operating income Nonoperating revenue (expenses): Interest income Interest expense Net increase (decrease) in fair value Gain/loss on disposals of fixed assets Operating transfers to City Other Net (loss) income, before extraordinary item budgetary basis 42 40ned into the D �>�C6°i'� id A�bli� nneotion with j.. Walter " F®err►arl .. r City Clerk. Budget Actual variance, 1999 budgetary favorable budget basis (unfavorable) 5,166,110 5,164,406 (1,704) 2,806,000 2,960,154 154,154 5 2,503,850 2,447,764 (56,086) 138,.150 139,153 1,003 81,215 91,278 10,063 10,695,325 10,802,755 107,430 4,037,562 4,032,282 5,280 3,262,421 3,007,850 254,571 7,299,983 7,040,132 259,851 3,395,342 3,762,623 367,281 931,286 1,036,664 (105,378) 2,464,056 2,725,959 261,903 509,000 722,517 213,517 (785,000) (666,087) 118,913 — .(272,108) (272,108) — 81,203 81,203 (2,275,000) (2,281,520) - (6,520) — . (488,048) - (488,048) S (86,944) (178,084) (91,140) 40ned into the D �>�C6°i'� id A�bli� nneotion with j.. Walter " F®err►arl .. r City Clerk. Serial bond Term bond principal principal ` Total October 1, s requirements a DEPARTMENT OF OFF-STREET PARTING 1999 $ 540,000 — OF THE CITY OF MIAMI, FLORIDA 1,098,170 20010' Schedule of Parking System 587,313 1,172,313 Revenue Bonds, Series 1.998 610,000 — 563,913 Debt Service Requirements 2002 635,000 — Serial bond Term bond principal principal Interest Total October 1, requirements ' requirements requirements requirements 1999 $ 540,000 — 558,170 1,098,170 20010' 585,000 — 587,313 1,172,313 2001. 610,000 — 563,913 1,173,913 2002 635,000 — 539,512 1,174,512 2003 655,000 — 515,700 1,170;700 2004 685,000 — 490,155 1,175,155 2005 7101000 — 462,755 1,172,755 2006 740,000 — 433,645 1,173,645 2007 770,000 — 403,305 1,173,305 2008 800,000 — 370,965 1,170,965 2009 835,000 — 336,565 1,171,565 2010 875,000 — 299,825. 1,174,825 2011 — 910,000 260,450 1,170,450 2012 = 960,000 214,950 1,174,950 2013 1,005,000 - 166,950 1,171,950 2014 — 1,060,000 114,187 1,174,187 2015 — 1,115,000 58,537 1,173,537 Total $ 9,445,000 4,045,000 6,376,897 19,866,897 Submitted into the public rec®rd in conne do with Item .—� on �' /alter Foeman City Clerk 43 1 COMPREHENSIVE ANNUAL 1 FINANCIAL REPORT COMPONENT UNIT. OF THE CITY OF MIAMI MIAMI, FLORIDA STATISTICAL S E C T I O N Submitted into the public record in connection Wvith 'tern —1,3- on —7 -cam Walter Foeman City Clerk L 'This Page Left Intentionally :Blank - . .at z k i a. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 m � , DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA Historical Schedule of Revenue and Expenses Years ended September 30, Operating revenue: Parking lots On -street facilities Off-street facilities Management and administrative fees Other Total operating revenue Operating expenses: Salaries, wages and fringe benefits Repairs and maintenance Security Utilities Other Total operating expenses Operating income before depreciation and amortization Depreciation and amortization Operating income Nonoperating revenue (expenses): Interest income Net increase (decrease) in fair value of investment - current Net increase (decrease) in'fair value of investment -restricted ' Interest expense Other (1) Disposal of property and equipment Total nonoperating revenue (expenses) Net income before operating transfers and extraordinary items Operating transfers to City Net income (loss) before extraordinary items Loss on early extinguishment of debt Net income (loss) Capital outlay r 1990 1991 1992 - S 5,018,930 3,798,931 1 3,695,218 2,309,425 3,343,624 3,247,295 2,231,205 2,252,398 2,352,281 310,799 276,788 166,882 115,755 73,719 139,401 9,986,114 9,745,460 9,601,077 214,898 311,352 2,953,504 3,101,485 2,953,359 801,431 639,571 745,197 299,463 270,616 311,345 255,709 252,681 250,622 2.398,999 2,186,337 2,063,052 6,709,106 6,450,690 6323,575 3,277,008 3,294,770 3277,502 (1,819,837) (1,556,315) (1,323,413) 1,457,171 1,738,455 1,954,089 421,117 505,267 578,708 (1,687,366) (1,603,945) (1,488,093) - - (390,000) - - (82,212) (1,266,249) (1,098,678) (1,381,597 190,922 639,777 572,492 190,922 639,777 572,492 S 190,922 639,777 572,492 S 199,567 214,898 311,352 (1) Other nonoperating expenses in 1992 and 1999 related to a write down to market value of a surplus parcel of land. (2) Results for 1997 have been restated pursuant to the provisions of GASB 31. Submitted into the �� rd in - Public I c®nuc $;cn wit On 44 Walter FOeman City Clerk (Continued) • e This Page Left Intentionally Blank . a a .. o a Exhibit 1 S -MP #ted into the f�&8fd in COnne public ctiOn U�71 Walter FOem�r� City Clem 45 00- 714 1993 1994 1995 1996 1997 1998 1999 3,666,673 5,391,349 4,726,629 5,044,418 5,221,385 5,326,508 5,164,406 3,334,351 2,411,776 2,181,400 2,528,635 2,570,680 2,734,309 2,960,154 2,520,535 2,471,031 2,440,612 2,492,326 2,491,335 2,486,221 2,447,764 109,496 132,105 132,810 138,022 125,586 138,771 139,153 111,797 107,671 90,011 69,644 92,990 75,166 91,278 9,742,852 10,513,932 9,571,462 10,273,045 10,501,976 10,760,975 10,802,755' 3,462,828 3,688,359 3,493,736 3,614,052 • 3,820,188 3;865,112 4,032,282 804,523 795,821 715,870 593,298 571,628 '528,397 460,198 386,221 434,169 482,735 461,973 459,580 438,164 411,747 286,055 273,911 277,238 309,294 309,742 268,774 261,877 2,023,429 2,201,093 1,689,795 2,109,254 .2,182,167 3,340,841 1,874,028 6,963,056 7,393,353 6,659,374 7,087,871 7,343,305 8,441,288 7,040,132 2,779,796 3,120,579 2,912,088 3,185,174 3,158,671 2,319,687 3,762,628 (1,099,161) (1,098,015) (837,580) (827,000) (880,960) (1,022,359) (1,036,664) 1,680,635 2,022,564 2,074,508 2,358,174 2,277,711 1,297,328 2,725,959 768,034 - 546,792 - 747,450 - 883,995 992,257 974,151 722,517 - (307,970) 483,544 (258,345) 223,760. 204,467 (13,763) (1,378,74 7) (1,080,877 ) (1,023,468) (984,946) (937,682) (1,148,423) (666,087) - 46,000 (35,033)81,203 8,302 4,153 8,771 43,985 34,165 1,380,897 (488,048) (602,411) (483,932) (302,280) (56,966) 4,530 1,894,636 (622,523) 1,078,224 1,538,632 1,772,228 2,301,202 2,282,241 3,191,694 2,103,436 - - - - -. - (2,281,520) 1,078,224 1,538,632 1,772,228 2,301,202 2,282,241 3,191,694 (178,084) (1,536,138) - - - - - (440,043) (457,914) 1,538,632 1,772,228 21301,202 2,282,241 3,191,694 (618,127) 422,860 583,188 601,031 '500,703 5,758,369 1,373,976 2,213,875 S -MP #ted into the f�&8fd in COnne public ctiOn U�71 Walter FOem�r� City Clem 45 00- 714 • DEPARTMENT OF OFF-STREET PARKING OF' THE CITY OF MIAMI, FLORIDA Historical Schedule of Revenue and Expenses (Continued) a� OPERATING REVENUES & EXPENSES 2 t0 Exhibit I e Historical Schedule of Revenue and Expenses (Continued) a� OPERATING REVENUES & EXPENSES .OPERATING REVENUES BY TYPE 2 t0 i e - = i wfz a = e 1990 1991 1992 1993 1996•' 1995 19% 1997 1998 1999 YEARS ENDED SEPTEMBER 30 ®OPERATING REVENUES OPERATING EXPENSES .OPERATING REVENUES BY TYPE 4 DEPARTMENT OF OFF-STREET PARKING ; OF THE CITY OF MIAMI, FLORIDA Historical Schedule of Debt Service Coverage Years ended September 30, INCOME AVAILABLE FOR DEBT SERVICE -VS -DEBT SERVICE 1 0 1990 1991 1982 1993 1994 1999 1996 1987 1896 7889 YEARS ENDED SEPTEMBER 30 INCOME AVAILABLE " DEBT SERVICE (a) Operating income before depreciation and amortization plus interest income. (b) Represents the principal payment due on October 1 subsequent to the end of the fiscal year. (c) Interest on bonds plus principal. (d) Income available for debt service divided by debt service on bonds. Submitted into the Public (Continued) record in conneitem�c �jan� With on Walter Foeman 141 :., City Clerk 47 00— 714 1990 1991 1992 income available for debt service (a) S 3,698,125 3,800,037 3,856,210 Debt service: i Interest on bonds S 1,596,483 1,501,716 1,399,810 Amortization of bond issue cost 90,883 102,229 88,283 Total interest expense S 1,687,366 1,603,945 1,488,093 Principal (b) S 370,000 385,000 760,000 Debt service on bonds (c) S 1,966,483 1,886,716 2,159,810 Debt service coverate ratio (d) 1.88 2.01 1.79 INCOME AVAILABLE FOR DEBT SERVICE -VS -DEBT SERVICE 1 0 1990 1991 1982 1993 1994 1999 1996 1987 1896 7889 YEARS ENDED SEPTEMBER 30 INCOME AVAILABLE " DEBT SERVICE (a) Operating income before depreciation and amortization plus interest income. (b) Represents the principal payment due on October 1 subsequent to the end of the fiscal year. (c) Interest on bonds plus principal. (d) Income available for debt service divided by debt service on bonds. Submitted into the Public (Continued) record in conneitem�c �jan� With on Walter Foeman 141 :., City Clerk 47 00— 714 e This Page Left Intentionally Blank 0 Exhibit 2 1993 1994 1995 1996 1997 1998 1999 3,547,830 3,667,371 3,659,538 4,069,169 4,150,928 3,293,838 4,485,140 1,323,586 1,022,987 - 967,583 931,456 890,306 845,756 660,322 54,888 57,890 55,885 53,490 47,376 302,664 5,765 1,378,474 1,080,877 1,023,468 984,946 937,682 1,148,420 666,087 1,150,000 870,000 895,000 935,000 975,000 1,015,000 540,000 2,473,586 1,892,987 1,862,583 1,866,456 1,865,306 1,860,716 1,206,087 1.43 1.94 1.96 2.18 2.23 1.77 3.72 4 3.2 2.4 0 ra Q: 1.6 0.8 0 DEBT SERVICE COVERAGE RATIO Submitted into the public rec®rd in conne `tlr�r� �lrittl Item A' on--� Walter i'oeman CitY,Clerk,. �v YEARS ENDED SEPTEMBER 30 48®` 714 DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA Total Number of Parking Spaces 'Years ended September 30, Wr i sad y s i. Category 1990 1991 1992 DOSP parking garages 2,457 2,457 2,457 Managed parking garages (a) 3,750 3,750 2,550 Parking lots (b) 8,691 8,691 8,691 On -street parking meters 7,307 7,432 7,432 Total number of spaces 22,205 22,330 21,130 NUMBER OF SPACES 25 --- -- - 20 ul 15 Cn 'O W C M 90 U)t7 10 5 1990 1991 . 1992 1993 1994 1995 1996 1997 ' 1998 1999 YEARS ENDED SEPTEMBER 30 L® DOSP GARAGES MANAGED GARAGES LOTS ® ON -STREET METERS a (a) International Place - Knight Center Garage (1,450 spaces) opened in January 1983 and Government Center (1,100 spaces) opened in June 1983; Bayside Garage (1,200 spaces) opened in April 1987. The management of the Bayside Garage by the Department ceased in January 1992 and the management of the Government Center Garage by the Department ceased.in April 1996. (b) Miami Arena area lots (approximately 2,900 spaces) opened in October 1988. Approximately 2,680 spaces were managed in 1992. In August 1994, the Department ceased operating,approximately . 1,100 spaces in the Miami Arena area In October 1997,'the Department ceased operating special event Lot #24 with approximately 600 spaces. (c) During 1994, the Department carried out a full physical inventory of all its parking facilities. The updated numbers reflect changes due to conversion and redesign of facilities and loss of meters due to; street construction. Submitted into the public (Continued) record.' 'n connection with . item on Walter Foeman -V'Clerk 49 4 B 1 1 1 1 Exhibit 3 1993 1994(c) 1995 1996 1997 1998 1999 2,457 2,464 2,464 2,464 2,464 2,464 2,464 2,550 2,458 2,458 1,352 1,352 1,352 1,352 8,792 8,176 7,161 7,228 7,164 6,764 6,764 7,401 6,628 6,518 6,411 6,375 6,343 6,226 21,200 19,726 18,601 17,455 17,355 16,923 16,806 Subrnilled info the. rGcOpd Public PIS c0nne *i®n with 1'l) Walter Foernan CifY Clerk X99 i - ontinued) I t. DEPARTMENT OF OFF-STREET PARKING t OF THE CITY OF MIAMI, FLORIDA Parking Revenue Per Space Years ended September 30, Category 1990 1991 1992 _ ~� Parking revenue per space: DOSP parking garages (a) S 908.10 916.73 Parking lots (b) 577.48 437.11 957.38 425.18 *' On -street, parking meters 316.06 449.90 436.93 Average per space 517.99 505.65 500.26 e REVENUES PER SPACE - DOSP FACILITIES X99 i - ontinued) I Exhibit 4 1993 1994(c) 1995 1996 1997 1998 1999 1,025.85 1,602.85 990.51 1,011.50 1,011.09 1,007.02 993.41 417.05 659.41 660.05 697.90 728.84 787.48 763.51 450.53 363.88 334.67 394.42 403.24 431.08 475.45 510.54 594.98 579.11 625.06 642.59 677.36 684.12 SUbmittecl record into the Public rd item tine, x. on`�' Walter Foerneo CitY Cie* 52 Under 20 Years 20 to 64 Years 65 Years and Older Y t . DEPARTMENT OF OFF-STREET PARKING Percent OF THE CITY OF MIAMI, FLORIDA Percent Miami -Dade County, Florida Total Demographic Data 1980 444,256 Population: ESTIMATES OF POPULATION BY AGE 926,058 1980 to 2000 . 255,284 Under 20 Years 20 to 64 Years 65 Years and Older t . Year Number Percent Number Percent Number Percent Total 1980 444,256 27.3 926,058 57.0 255,284 15.7 1,625.598 1985 458,682 25.9 1,046,582 59.1 265,480 15.0 1.77 70.744 e 1990 522,690 27.0 1,143,598 59.0 .270,806 14.0 1,937.094 1995 606,480 28.9 1,232,910 58.7 260,610 12.4 2,100,000 2000 645,004 28.6 1,339,728 59.3 275,268 12.1 2,260,000 Source: Miami -Dade County Planning Department. ESTIMATED EMPLOYMENT IN NONAGRICULTURAL U TURAL ESTABLISHMENTS September September September 1994 Percent 1995. Percent 1996 Percent GOODS Producing Sector Contract construction 35,600 3.92 34,400 3.72 37,500 3.95 Manufacturing 79,600 8.78 80,100 8.67 75,500 7.95 Mining 400 0.04 400 0.04 300 0.03 Total goods - producing 115,600 12.74 114,900 12.43 113,300 11.93 Services Sector Transportation, communications' and utilities 74,400 8.20 76,600 8.29 80,800 8.51 Wholesale trade 74,000 8.16 74,700 8.08 77,800 8.19 . Retail trade 161,700 17.83 165,100 17.86 165,000 17.37 Finance, insurance and real estate 66,200 7.30 67,600 7.31 68,600 7.22 Services 284,100 31.32 292,600 31.65 311,000 32.75 Government 131,100 14.45 132,900 14.38 133,200 14.03 Total services 791,500 87.26 809,500 87.57 836,400 83.07 Total 907,100 100.00 924,400 100.00 949,700 100.00 Submitted into ' theR ublic record ip conne `.=orl with item on '?'cf-' Walter Foeman City Clerk (Continued) i 53 - 00tl714 Exhibit 5-1 DADE COUNTY POPULATION GROWTH 3000 -- 2500 2000 - -- oa M CO 1500 0.0 0� Q- 1000 -- 500 - 0 1950 1960 1970 1980 1990 2000 2010 September September September 1997 Percent 1998 Percent 1999 Percent 34,400 31.59 34;900 3.57 37,200 3.73 74,600 7.78 72,700 7.43 75,900 7.61 300 0.03 300 0.03 300 0.03 109,300 1i-39 107,900 11.03 113,400 11.37 83,800 8.74 85,600 8.75 9000 9.10 81,700 8.52 83,700 8.56 82,000 8.22 171,100 17.83 175,000 17-89 176,500 17.69 67,200 7.00 67,500 6.91 66;400 6.65 312,800 32.60 323,700 33.09 330,000 33.08 133,500 13.92 134,600 13.76 138,600 13.89 850,100 88.61 870,100 88.97 884,300 88.63 959,400 100.00 978,000 100.00 997,700 100.00 54 d ub"nitted into the items �� connerpi® Ac�b1iG "ecOon �=� Wit V, Walter Fae n- City.0/1"k 00- 714 Exhibit 5-2 DEPARTMENT OF OFF-STREET PARKING, OF THE CITY OF MIAMI, FLORIDA Miami -Dade County, Florida Demographic Data GROWTH FACTORS 'Unincorporatf:d . City of Miami and City of Miami net City of Miami Miami -Dade ` Miami- assessed v , 1 aloe of value of County value of Dade County motor taxable real property building permits building i.ts Year vehicle registration (OOOs) . building per�m (OOOS) p 1998 2,401,644, S 11,696,970 S 365,719 S 1,122,029 1997 2,421,725 11,349;393 339,897 969;286 1996 2,426,455 10,991,491 473,512 755,063 1995 2,204,356 y 10,489,820 �:, - 302,898 , • = 1,317,936 1994 2,274,404 10,227,247 351,654 987,370 1993 2,567,455 10,491,713 247' 931 830,934 1992 2,272,8,12 10,955,540 216,266 1,186,644 1991 1,978,169 10,792,152 208,914 543,877 1990 1,804,221 10,533,383' 237,039 954,962 1989 1,753,222 10,241,650 308,940., 2,120,152 Source: City of Miami and Miami -Dade County Planning, Building and Zoning Permits Departments. Miami -Dade County Property Appraiser's Office and Auto Tag Agency. Miami -Dade County CAFR., September 30, 1998. j submitted into the public recofd in connec j item_ on nth a : /alter Foeman s , , Ci . . ,. ty Clerk - I 55 00 p Department of Off -Street Parking Miami Parking Authority [A M : � RFD _ 9 ;111 [A ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® Myths & Facts: Regarding MPA's Financial Operations Submitted into the public 2 record in connection with item on Walter Foeman City Clerk Myths & Facts: (cont.) Regarding MPA Revenue to The City record in connection with 3 item on Walter Foeman City Clerk • ® ® M ® ® ® ® ® ® ® ® ® - ® MMM Myths & Facts: (cont.) The MPA is not Accountable to the City Submitted into the public 4 record in connection with item on Walter Foeman City Clerk i ® ® ® ® ® ® ® ® ® ® ® M ® ® ® ® ® iiii® Parking System Comparison record in connection with Submitted into the public 5 item on record in connection with Walter Foeman item Gita] Gleam Walter on _ 1Nalter Foeman C7 M iiiiii® ® ® ii® ® ® ® ® M iii® On -Street vs. Off -Street Parking Systems Factors to Consider record in connection vvith item_- on WWt,er Foemah E#ty G-ledt On -Street Meter Spaces Typical Expenses record in connection with item ® on Vvalter Foeman City ClerK, 0 M ® ® ® M ® ® ® ® ® ® ® ® M ® ® ® M Off -Street Parking Spaces Typical Expenses* intn #k- - "uvilu record in 8 connection with item on Walter Foeman City Clerk • M ® ® i® ® ® ® M ® ® ® M M ® M ® ® ® M Types of Parking Spaces Average Expense Per Parking Sp 0 Submitted into the public record in connection with item on -- ac e Walter Foeman City Cl, C C] Cities with On & Off -Street Parking Parking. System Expense Comparison =b,o ionto the public10Cit of Miami: Ma or Cit Parkin S stem Com arison Julycnnection with item on Walter Foeman City Cleik • Cities With Primarily On -Street Parking Miami Adjusted for On -Street Meters Only City of Miami: Major City Parking System Comparison, July 247Jt2'Q00J into the public 11 record in connection with item on VxWter Foeman 4(�itv Clefk 0- 11 = M M = ® = M M ® ® = ilii M ® M ® M Miami Parking Authority Parking Space & Facilities Breakdown Submitted into the public 12 record in connection with item ___on Walter Foeman City Clerk LI • = is = ® exit ii® ® = ® = ® ® ® = ® ® = M Miami Parking Authority FY 1999-2000: All Revenue & Expenses Submitted into the public 13 record in connection with item on Walter Foeman City Clerk • 0 Miami Parking Authority Total Revenue to City of Miami Submitted into the public 14 record in connection with item ® on Walter i=oeman City clerk • ® ® ® M ® ii® ii® = ® ii® = iii® ® = ® ® ® iii® M Miami Parking Authority Challenges to Increase Parking Revenue record in connection with 15 item on Walter Foemarn city cleA , • M M ® ® ® ® ® ® M ® iii® ® iiiii® A • . • 77-1 I\ 4n 1 r%Y' C9 �X T "DnY'�T1 Y1 !-V \ T T0+Ach-r" record in connection with 16 item on Walter Foeman City Clerk IM Miami P.A. vs Washington D.C. On -Street Parking System Comparison record in connection witty, 17 item on !Walter Foeman City Cied( LIA ii® ® ® ® M ® ® M ® ® ® ® ® ® M ® ® ® M Washington D.C. Story City Department 1996-1998 item on 18 !Walter Foeman 3 J_City Clerk • Washington D.C. Story Privatization 1998-2000 Submitted into the public 19 record in connection with item on Walter Foeman city clerk, 0