HomeMy WebLinkAboutMemo - Miami Parking AuthorityMIAMI PARKING AUTHORITY
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members
of the City of Miami Commission
FROM: Art Noriega
Chief ExecutiVe 'Officer
Miami Parking Authority
DATE: June 6, 2012
SUBJECT:Department of Off -
Street Parking
Budget Approval
FY 2012-13
Enclosed is the budget for the Department of Off -Street
Parking for the Fiscal Year 2012-13. This budget was
approved by the Off -Street Parking Board at its meeting of
June 6, 2012.
We respectfully request your approval of this budget at your
meeting scheduled for September 13, 2012.
Enclosure
cc:
Marta Gomez -Chen
Maria Chiaro
Angela Smith
MIAMI PARKING AUTHORITY
INTER -OFFICE MEMORANDUM
TO: Johnny Martinez
City Manager
'City of Miami
7 r
FROM; Art Noriega" '',
Chief Executive, Officer
Miami Parking Authority
DATE: June 6, 2012
SUBJDCT:Department of Off-
Street Parking
Budget Approval
FY 2012-13
Enclosed is the budget for the Department Of Off -Street
Parking for the Fiscal Year 2012-13. This budget was
approved by the Off -Street Parking Board at its meeting of
June 6, 2012.
Please place approval of this budget by the City
Commission on the agenda for September 13, 2012.
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
40 NW 3rd Street
Suite 1103
Miami, Florida 33128
Phone (305) 373-6789
Fax (305) 371-9451
www.miamiparking.com
June 6, 2012
Honorable Mayor and Members of the City Commission:
Fiscal Year 2011-2012 has been a prosperous year for the Miami Parking Authority
(MPA). In light of the continued dismal economy, our agency has been successful in
maintaining 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 2011-2012 are as follows:
The Miami Parking Authority continued to provide parking management services
for the Public Health trust for their 7,000 parking spaces on the Jackson medical
campus. In this capacity, MPA has been able to steadily increase revenues while
consistently decreasing expenses. MPA was able to steward over $10 million in
revenue for the County's public hospital.
After 35 years of managing the Gusman Center, the Authority's board of directors
received a proposal from a local philanthropist and community leader to assume
management of the theater via an independent trust. After careful consideration
of the governing documents, the board determined that it was in the best interest
of all stakeholders to do so.
The Authority continued to automate several of its heavily utilized lots, including
Lot # 18, 33 and 41. This improvement to the way we do business has been
quickly adopted by customers who frequent our facilities as they now have a
number of ways to pay for parking. Automation has solidified cash controls and
increased operating efficiencies related to staffing and collections.
The Pay by Phone program continues to attract new users, as it affords them a
convenient method to pay for parking. This year, two of our neighboring cities,
South Miami and Coral Gables, also implemented the Pay by Phone option,
further simplifying the parking payment process in our region. Furthermore, we
have begun to use Pay by Phone as the method of payment for our monthly lot
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have begun to use Pay by Phone as the method of payment for our monthly lot
customers, creating further efficiencies for the agency as well as for our Customer
Service staff. As of March 2012, approximately 91,400 customers have
registered to participate in the program and approximately $2,432,000 in parking
revenue has been generated since its inception.
The Authority experienced rapid change in terms of operational responsibilities
and its role in the community development process. This past year, the Authority
expanded their traditional role of meeting the parking needs for the City of Miami
to include fostering awareness of parking as an integral component of a balanced
transportation system, both public and vehicular and the community development
process.
Furthering our commitment to balance the parking needs of the broad public,
MPA offers several programs targeted to specific user groups such as merchants
and residents. These programs provide customized benefits to both customer
segments while assuring the various parking needs of both are met.
MPA continues to manage a total of 1,200 spaces in 4 centrally located lots in the
Central Business District for the Flagler Development Group.
Maintain the relationship with the Adrienne Arsht Center for the Performing Arts
as its primary parking provider.
During the year ending September 30, 2012, the Authority estimates it will
contribute approximately $6,000,000 in excess revenues to the City of Miami.
Highlights of the 2012-13 Budget
Due to the success of the implementation of the parking access revenue control
systems, we continue to see a significant decrease in payroll.
Continue to joint -venture with both the public and private sectors to manage
several lots throughout the city for revenue -sharing opportunities.
Achieved a significant increase in revenues driven by the rental of lots for special
events, filming of movies and commercial shoots throughout the City of Miami.
Capital Spending
Prior to the end of this fiscal year, the project to modernize the older and most used
elevators in several of the MPA garages will take place. This will increase the life
expectancy and provide a better experience to the customers and residents that frequent
those facilities.
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Continue to invest in the centralization of MPA's facility operations at Courthouse Center
allowing remote access management of all the garages and several lots throughout the
city providing better service to our customers through a direct interface.
FINANCIAL HIGHLIGHTS
Revenues
Total operating revenues are budgeted to be $26,501,462 which is $1,460,996 or 5.83%
higher than fiscal year 2011-2012 budget.
Garage revenues are expected to increase by $234,765 or 6.13%. The biggest factor
influencing next fiscal year's revenue projections in this category is that we are
experiencing increased utilization in several facilities.
Lot revenues are budgeted to increase by $249,641 or 3.28% due to the increased
utilization we are experiencing in the Central Business District and Design District.
On -Street revenues are budgeted to increase by $974,300 or 7.44%. The two biggest
factors influencing next fiscal year's revenue projections in this category are new
businesses to highly frequented areas and the continuous replacement of single-space
meters to multi -space meters which offer the customer various payment methods to pay
for their parking.
Expenses
Operating expenses are projected to increase by $907,812 or 6.51% to $14,845,461. This
increase is largely attributable three factors 1) maintenance cost for the Authority's
master meters whose extended warranty recently expired, 2) revenue sharing agreements
with several significant revenue generating locations were been renegotiated with a larger
percentage of the income going to the property owner, and 3) bank charges are increasing
due larger utilization by our customers despite the Authority being able to successfully
negotiate lower processing charges with our credit processor.
Debt Service
Interest and principal payments are budgeted at $3,606,145 and $1,110,000 respectively.
Total debt service for the fiscal year is estimated at $4,716,145.
Net Revenue and Debt Service Coverage
The proposed budget for fiscal year 2012-13 will provide approximately $11,676,000 in
net revenue available for debt service resulting in a debt service coverage of 2.51, 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 $6,500,000.
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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
2011-12 fiscal year estimated at $9,810,000. This figure includes $6,000,000 in excess
revenues from operations, $2,800,000 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 has diligently
provided direction and set policy for this organization. Our Board's willingness to
sacrifice heir valuable time is an outstanding statement to their dedication to public
service.
Arthur ' oriega, V
Chief E cutive Officer
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