HomeMy WebLinkAboutMemos - Miami Parking AuthorityTo: Honorable Chaii nan and Members
Of The Off -Street Parking Board
'f 1
Date: July 19, 2011
From: Arthur Noriega, V Subject: FY 2012 Miami Parking
Chief Executive Off cer Authority Budget
Staff is requesting that the Board give its approval for the FY 2012 Miami Parking Authority
Operating Budget and related Board Resolution, which are attached hereafter.
MIAMI PARKING AUTHORITY
INTER -OFFICE MEMORANDUM
TO: Johnny Martinez
City Manager
City of Miami
FROM: Art Noriega
Chief Executiieicer
Miami Parking Authority
DATE: July 19, 2011
SUBJECT:Department of Off -
Street Parking
Budget Approval
FY 2011-12
Enclosed is the budget for the Department of Off -Street
Parking for the Fiscal Year 2011-12. This budget was
approved by the Off -Street Parking Board at its meeting of
July 19, 2011.
Please place approval of this budget by the City
Commission on the agenda for September 29, 2011.
I have also attached the original of a memorandum to the
Mayor and City Commissioners requesting their approval of
the budget and a draft of the Commission resolution.
Enclosures
cc: Marta Gomez -Chen
Maria Chiaro
Angela Smith
MIAMI PARKING AUTHORITY
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members DATE: July 19, 2011
of the City of Miami Commission
FROM: Art Noriega
Chief Executive 'Officer
Miami Parking Authority
SUBJECT:Department of Off -
Street Parking
Budget Approval
FY 2011-12
Enclosed is the budget for the Department of Off -Street
Parking for the Fiscal Year 2011-12. This budget was
approved by the Off -Street Parking Board at its meeting of
July 19, 2011.
We respectfully request your approval of this budget at your
meeting scheduled for September 29, 2011.
Enclosure
CC:
Marta Gomez -Chen
Maria Chiaro
Angela Smith
40 NW 3rd Street
Suite 1103
Miami, Florida 33128
Phone (305) 373-6789
Fax (305) 371-9451
www.miamiparking.com
September 29, 2011
Honorable Mayor. and Members of the City Commission:
Fiscal Year 2010-2011 has been a challenging and rewarding year for the Miami Parking
Authority (MPA). In light of the continued contraction of the economy, our agency has
been successful in retaining and, in some cases, minimally expanding our market share.
This effort was undertaken while continually working to improve customer satisfaction
and fulfill our mission to meet the City of Miami's parking needs.
Accomplishments During the Past Year
The Authority's accomplishments in fiscal year 2010-2011 are as follows:
Continued the implementation of the parking access revenue control system in
three facilities; Lot 18, Knight Center Garage and Oak Avenue Garage, in
addition to those that were completed last fiscal year. We also continue to expand
Pay -by -Phone services, having added an additional 16,000 users and continue to
replace single space meters with multi -space meters providing our customers
multiple payment platforms.
Entered into a long-term lease with Goodwill Industries of South Florida in which
they have agreed to occupy 26,000 sq.ft. of retail at our Allapattah Parking
Garage as well as having successfully secured tenants for all 27,000 sq.ft. of
office space located at the top floor of the Courthouse Center Garage.
Implemented an e-permitting system for monthly customers, which allows for the
processing of payments online, as well as streamlines the process by which
customers are validated as paying customers. An additional benefit of this system
is the significant reduction in costs associated with the physical mailing of decals
on a monthly basis.
Implemented an online application which allows customers to dispute citations
electronically, significantly reducing the time required to review these cases as
well as the number of phone calls generated by these cases.
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Landscape and Porter Services for all MPA facilities was outsourced in order to
reduce costs to the agency for an overall savings of 47%.
Renewed the management agreement with the Flagler Development Group
whereby the MPA continues to manage a total of 1,200 spaces in 4 centrally
located lots in the Central Business District.
Continue to successfully manage 8,000 parking spaces for the Public Health Trust
of Miami Dade County.
Maintain the relationship with the Adrienne Arsht Center for the Perfoioiing Arts
as its primary parking provider.
During the year ending September 30, 2011, the Authority estimates it will
contribute approximately $5,900,000 in excess revenues to the City of Miami.
Highlights of the 2010-11 Budget
Due to the success of the implementation of the parking access revenue control
systems, we continue to see a significant decrease in payroll.
The office space on the top floor of Courthouse Center is completely occupied
and the parking revenues continue to steadily increase.
Realized an increase in revenues of over $300,000 in special events throughout
the City of Miami.
Replacement of multi -space meters in Lot 19 with a model that allows electronic
rate changes eliminating the need to use personnel for events at those lots.
Expansion of the pay -by -phone program throughout the greater South Florida area
(specifically in South Miami and Coral Gables) has broadened the pool of
customers, which MPA is able to tap into across municipal lines.
Capital Spending
Currently in the process of retrofitting the lighting fixtures at Oak Avenue Garage and
Cultural Center Garage. This project promises a two and a half year return on investment
for energy savings of approximately $66,000 per year to the agency.
Centralization of MPA's facility operations at Courthouse Center allowing remote access
management, which will provide better service to its customers through a direct interface.
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FINANCIAL HIGHLIGHTS
Revenues
Total operating revenues are budgeted to be 25,040,466 which is $989,553 or 3.8% lower
than fiscal year 2010-2011 budget.
Garage revenues are expected to increase by $158,091 or 4.3%. The biggest factor
influencing next fiscal year's revenue projections in this category are a recognizing a full
year of operations for the Courthouse Center Garage.
Lot revenues are budgeted to decrease by $255,228 or 3.2%'due to the reduced amount of
construction parking in several of surface lot facilities.
On -Street revenues are budgeted to decrease by $803,616 or 5.8%. The two biggest
factors influencing next fiscal year's revenue projections in this category are the removal
of meters system wide and an over aggressive budget for the prior fiscal year.
Expenses
Operating expenses are projected to increase by $124,492 or 0.9% to $14,087,649. This
increase is largely attributable to the maintenance cost for the Authority's master meters
whose extended warranty recently expired.
Debt Service
Interest and principal payments are budgeted at $3,654,144 and $1,110,000 respectively.
Total debt service for the fiscal year is estimated at $4,764,144.
Net Revenue and Debt Service Coverage
The proposed budget for fiscal year 2011-12 will provide approximately $10,972,817 in
net revenue available for debt service resulting in a debt service coverage of 2.36, before
taking into consideration capitalized interest. After subtracting debt service and
expenditures for replacement and renewals, we are estimating an excess revenue
contribution to the City of Miami of $5,700,000.
SUMMARY
The results for the current year and the budget for fiscal year 2011-12 reflect the
continued growth and expansion for the Authority. Net Income for fiscal year 2011-12
after depreciation, amortization and finance charges is estimated at $3,774,338.
We are particularly pleased that we have been able to continue to provide the City with a
significant revenue stream for the eleventh consecutive year and at the same time
continue to address and meet the parking needs of our residents, commuters and visitors.
The total amount that the City will be receiving from Miami -Parking Authority for the
2010-11 fiscal year estimated at $9,710,000. This figure includes $5,900,000 in excess
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revenues from operations, S2,800,000 from parking citation revenue and $1,010,000 from
the operation of various City of Miami owned parking facilities.
I am also extremely appreciative of the efforts of the Authority's employees for their
dedication and hard work and for the Miami Parking Authority Board who have tirelessly
provided direction and set policy for this organization. Our Board's willingness to
sacrifice their valuable time is an outstanding statement to their dedication to public
service
2J
Arthur Noriega, V
Chief Executive Officer
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