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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. '%Oc' FSC Mixed Sources Product pa, ham .11-manapal cs, ev<ocae2o, n�a o lass ram s-�+�� ca.m 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 Page 1 of 4 sij FSC Mixed Sources Prod. sae, from ree.unapeol md other contra. Names C. ro.Nc".oton, cuq O 19%fwc. Sttwuigp(mwp 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. Page 2 of 4 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 Page 3 of 4 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 Page 4 of 4