HomeMy WebLinkAboutMemos - 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: July 10, 2013
SUBJECT:Department of Off -
Street Parking
Budget Approval
FY 2013-14
Enclosed is the budget for the Department of Off -Street
Parking for the Fiscal Year 2013-14. This budget was
approved by the Off -Street Parking Board at its meeting of
July 10, 2013.
We respectfully request your approval of this budget at your
meeting scheduled for September 26, 2013.
Enclosure
cc:
Marta Gomez -Chen
Maria Chiaro
Angela Smith
MIAMI PARKING .-.IAUTHfQRITY
INTER-OFFIC8 MEMORANDUM.
TO: Johnny Martinez
City Manager
City of Miami
FROM: Art Noriega
Chief Executive Officer
Miami Parking Authority
DATE: July 10, 2013
SUBJECT:Department of Off -
Street Parking
Budget Approval
FY 2013-14
Enclosed is the budget for the Department of Off -Street
Parking for the Fiscal Year 2013-14. This budget was
approved by the Off -Street Parking Board at its meeting of
July 10, 2013.
Please place approval of this budget by the City
Commission on the agenda for September 26, 2013.
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
TO: Honorable Chairperson and Members of the Off -Street Parking Board
FROM: Arthur Noriega, V, Chief Executive Officer, Miami Parking Authority
SUBJECT: FY 2013 Miami Parking Authority Operating Budget
DATE: July 13, 2013
Staff is requesting that the Board give its approval for the FY 2014 Miami Parking
Authority Operating Budget and related Board Resolution which are attached hereafter.
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40 NW 3rd Street
Suite 1103
Miami, Florida 33128
Phone (305) 373-6789
Fax (305) 371-9451
www.miamiparking.com
Honorable Mayor and Members of the City Commission:
Fiscal Year 2012-13 has been a year of transition for many sectors but we are pleased to
state that during this same period, the Miami Parking Authority (MPA) has continued to
thrive. In light of the slow growth of the economy, our agency has continued to be
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
Accomplishments for the Authority during fiscal year 2012- 13 included the following:
Continue to manage the operations of the new Marlins Park parking facilities. We
continued our partnership with the residents of that area by offering a residential
parking program keeping residents from being displaced or inconvenienced during
events at the stadium.
Ability to monitor all automated facilities and on -street Pay. and Display machines from
one central location. Currently, the Command Center Staff provides a live response to
all inquiries received from customers; whether they are experiencing problems at a
machine or are in need of processing a disabled transaction. The creation of this center
has allowed for an increase in efficiencies to our operations as well as to an
improvement to the levels of customer service we offer.
The Pay -By -Phone program continues to attract new users, as it affords them a
convenient method to pay for parking. We have benefited from the implementation of
the Pay -By -Phone program in the neighboring cities of Coral Gables and South Miami.
Since its inception in the City of Miami in 2008, approximately 146,800 customers have
registered to participate in the program, which in turn has generated approximately
$3,739,400 in parking revenue.
Expanded our traditional role of meeting the parking needs for the City of Miami to
include partnering with Car2Go, a car sharing program which has been very successful
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since its launch. There are approximately 15,000 customers registered to use this
program since its inception in July 2012.
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 Performing Arts as its
primary parking provider.
During the year ending September 30, 2013, the Authority estimates it will contribute
approximately $6,500,000 in excess revenues to the City of Miami.
Highlights of the 2013-14 Budget
MPA continues to be a technology leader in the parking industry. We upgraded the
multi -space meters in Lot 19, Coconut Grove and FEC Lot A to a model that allows the
customer to pay for parking by entering their license tag, known as Pay by Plate. This
has significantly reduced the resell of the paper receipts by vagrants which in turn, has
increased our revenues in those lots. We plan to continue to expand this model
throughout the city during the upcoming year.
There continues to be a steady stream of businesses opening in the areas of Brickell,
Design District and Midtown along with a fast -changing Central Business District. This
positively affects the hours of operations and revenues being generated.
Expansion of the pay -by -phone program throughout our neighboring cities of Coral
Gables and South Miami has broadened the pool of customers, which MPA is able to tap
into across municipal lines. This continues to generate revenue for the agency while
providing a convenient way to pay for parking for our customers. MPA is committed to
the growth of this program which provides our customers with a convenient way to pay
for parking.
Capital Spending
Currently in the process of modernizing the elevators in several of the MPA facilities to
better serve our customers. This past year, we were able to modernize all elevators at
the Oak Avenue Garage and began to modernize the elevators in College Station
Garage. Due to its size and the cost associated with it, this project will be completed in
phases.
Complete the centralization of MPA's facility operations at Courthouse Center allowing
24/7 remote access management, which will provide better service to its customers
through a direct interface.
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Replace older pay and display machines with new pay by plate machines which we have
already begun to install in various areas of the City. These machines are equipped with
the latest technology used to pay for parking including a text reminder function allowing
the customer to increase their time remotely.
FINANCIAL HIGHLIGHTS
Revenues
Total operating revenues are budgeted to be $27,684,804 which is $1,183,342 or 4.47%
higher than fiscal year 2012-13 budget.
Garage revenues are expected to increase by $300,114 or 7.38%. The biggest factor
influencing next fiscal year's revenue projections in this category is due primarily to an
agreement with AT&T for use of the rooftop of Courthouse Center garage as a
transmission and reception site in downtown Miami.
Lot revenues are budgeted to increase by $155,778 or 1.98% due to the increased
utilization we are experiencing in the FEC Tots and in various lots throughout the city
being utilized by construction crews for a variety of development projects.
On -Street revenues are budgeted to increase by $703,500 or 5.00%. The biggest factors
influencing next fiscal year's revenue projections in this category are the addition of
new businesses in newly emerging areas, expansion of regulated parking spaces
throughout the city, completed construction projects that now return parking spaces to
our inventory and the continuous adoption of the pay by phone program.
Expenses
Operating expenses are projected to increase by $1,013,015 or 6.82% to $15,858,476.
This increase is largely attributable to three factors 1) maintenance cost of the
automated equipment in the Authority's facilities whose extended warranties are set to
expire, 2) revenue sharing agreements with several significant revenue generating
locations which have recently been renegotiated with a larger percentage of the income
going to the property owner, and 3) additional positions needed to effectively manage a
growing parking system in a vast changing City.
Debt Service
Interest and principal payments are budgeted at $3,553,382 and $1,210,000
respectively. Total debt service for the fiscal year is estimated at $4,763,382.
Net Revenue and Debt Service Coverage
The proposed budget for fiscal year 2013-14 will provide approximately $11,826,328 in
net revenue available for debt service resulting in debt service coverage of 2.76, before
taking into consideration capitalized interest. After subtracting debt service and
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expenditures for replacement and renewals, we are estimating an excess revenue
contribution to the City of Miami of $6,700,000.
SUMMARY
The results for the current year and the budget for fiscal year 2013-14 reflect the
continued growth and expansion for the Authority. Net Income for fiscal year 2013-14
after depreciation, amortization and finance charges is estimated at $4,769,086.
We are particularly pleased that we have been able to continue to provide the City with
a significant revenue stream for the twelth 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
2012-13 fiscal year is estimated at $,10,086,000. This figure includes $6,500,000 in
excess revenues from operations, $2,400,000 from parking citation revenue and
$1,186,000 from the operation of various City of Miami owned parking facilities.
In closing, I would like to take a moment to highlight the exemplary job done by MPA's
staff and Board. Both have demonstrated an extreme level of dedication and hard work
in order to insure the success of our Agency.
Since
rth``�.rie�`a,V
Chief cutive Officer
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