HomeMy WebLinkAboutBack-Up Documents40 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:
During Fiscal Year 2017-18, the Miami Parking Authority (MPA) continues to carry forth
its mission as a parking and revenue resource to the City of Miami. We have increased
our market share, while continually working to improve customer satisfaction and fulfill
our mission to meet the City's parking needs.
Accomplishments During the Past Year
Accomplishments for MPA during fiscal year 2017- 18 included the following:
The Pay -by -Phone program continues to be very successful. The MPA has continued to
educate the public about the program through various platforms, including social,
digital, broadcast and print media. Pay -by -Phone users in the City of Miami reached an
all-time high this fiscal year. The MPA has the highest percentage of users for a
municipal organization in the country. Its main draw is the convenience it affords users
when they need to pay for parking. As of September 2018, we will have approximately
502,140 new vehicles registered to participate in the program, which will generate
approximately $14.7 million in parking revenue. We have already surpassed our goal of
85 percent adoption for the fiscal year, reaching 88 percent in June.
The MPA continues to work on the implementation of a new enterprise resource
planning (ERP) system that will change the way we do business. The ERP system will
have an integrated e-commerce interface to increase the number of transactions and
functions which can be handled remotely. The integration of the two systems will
improve the customer's experience when placing an order, paying a bill, or creating an
account.
The Authority implemented a pilot project with in -ground sensor technology, aimed at
managing parking spaces more intelligently, while supporting the concept of more
sustainable, resilient and livable communities. This innovative program, the first one of
its class to be piloted in South Florida, is being tested in the Coconut Grove Business
Improvement District (BID).
As a low- scale, environmentally conscious, Coconut Grove -inspired design style, Grove
Bay will integrate parking with other transportation modalities and include ornamental
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and sustainable features, as well as glass and automated control systems. It will also
incorporate etched seaplanes on a metal mesh that will wrap the garage and add to the
historical significance of Pan American Drive and the old sea plane terminal.
The Agency has started an innovative plan to beautify the lots under the 1-395 overpass.
Given the incredible growth in the Midtown area, as well as the magnificent re-
development of the Design District, we see these lots as an opportunity not only to offer
much -needed parking for visitors and patrons, but also to serve as a symbolic bridge
connecting these two vital and vibrant areas within our City. The plans include
enhanced, increased and artistic lighting, which, when combined with graphics and
improved landscaping, will make this not only a bright, clean and safe place to park, but
also a destination unto itself.
The Authority's traditional role of meeting the parking needs of the City continues to
expand to include fostering an awareness of parking as an integral component of a
balanced urban transportation infrastructure network, both pedestrian and vehicular,
and the community development process.
The MPA's expanded role in community involvement is demonstrated in various
parking -related projects geared toward neighborhood beautification and economic
development, as well as continued participation in civic and governmental committees.
The Authority's involvement within the community is demonstrated as follows:
• The Board and Authority continue to participate in civic and governmental
committees to share resources and provide input on decisions which have an
impact on the area's transportation needs and the City community
development process. Specific to their role in community development, this
year the Authority has broadened and expanded its participation and
outreach, as it relates to the beautification of the city and the expansion of
art in public places. To that end, MPA participated in the Susan G. Komen
"Race for the Cure;" "Walk for the Animals" to benefit the Humane Society of
Greater Miami; the United Way of Miami Dade's main annual fundraising
event; Miami -Dade League of Cities' "Best Practices Conference;" Miami
Riverday; 2017 Park Your Art contest; Invest: Miami Panel on Public -Private
Partnerships; Invest Miami 2018: A Catalyst for Disruption; e-Merge
Americas Conference; continued ongoing 10-year partnership with Miami
Northwestern as part of the Executive Pass Program; Miami -Dade County
Parks and Marinas PayByPhone public outreach; and Customer Service Week
around Miami.
• The Authority has continued its public -information campaign in order to
update citizens about its role in parking management, any new programs
being offered as well as its support and financial contributions to the City. It
has been MPA's mission to ensure that it reaches out to all the communities
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which it serves. To this end, MPA collaborates with the English-, Spanish- and
Creole -language media.
• In -kind sponsorships, in the form of donated parking, were provided to
numerous organizations such as, the Miami Book Fair in Downtown Miami,
Coconut Grove Arts Festival, Sant La Annual Gala, "Innovate Miami: A
Catalyst for Disruption," Kiwanis of Little Havana Family and Fun Day, Holiday
Toy Drive Raffle to benefit the children in the shelter of the Lotus House, and
the Back -to -School Supply Drive spearheaded by various legal organizations
to benefit Big Brothers Big Sisters and Dade County Public Schools.
• The Authority continues its participation in neighborhood parking advisory
committees, which provides a platform for citizen input into the Authority's
decision -making process.
Our agency made significant improvements to our website and web -based applications.
This has led to an increased number of transactions and functions which can be handled
remotely and without the need for a visit to our offices. Expanding our virtual
transaction offerings will improve our customers' experience when having to place an
order, pay a bill or establish an account, among other things.
The MPA continues to successfully manage 7,000 parking spaces for the Public Health
Trust of Miami -Dade County as well as managing the parking operation for several
Miami -Dade County and City of Miami Parks.
The Authority continues to successfully maintain a relationship with the Adrienne Arsht
Center for the Performing Arts as its primary parking provider.
During the year ending September 30, 2018, the Authority estimates that it will
contribute approximately $7,200,000 in excess revenues to the City of Miami.
Highlights of the 2018-2019 Budget
The budget reflects an $10,023,286 increase in gross revenue due to a proposed system-
wide rate increase which shall become effective the second quarter of the fiscal year.
MPA has not affected a formal rate change since 2009 while the cost of running the
public parking system has continued to increase. The City's parking space inventory is
curtailed by the loss of spaces associated with the permanent meter removals due to
developments. To effectively manage the ever-increasing demand for public parking,
innovative parking enhancements need to be implemented. Establishing competitive
parking rates is a crucial element in achieving this goal.
As we continue to experience growth throughout our City, additional parking
enforcement officers are needed to increase compliance and provide effective and
efficient coverage. In order to accomplish this, MPA will increase its staff by adding 31
officers.
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We continue to expand the areas in which we offer Pay -by -Phone services and, in so
doing, have continued the process of eliminating single- and multi -space machines
throughout the City. The goal of the Authority is to have at least 90% of the on -street
transactions processed through Pay -By -Phone. The MPA will continue to pursue the
expansion of the Pay -By -Phone program throughout the metro area in order to broaden
the pool of customers that we are able to tap into. This will continue to generate
revenue for the Agency, while providing our customers added convenience when paying
for parking in the City of Miami.
The continued expansion of our current development cycle offers innumerable
opportunities for our Agency to play an active role in the steady growth of our city.
Examples of such opportunities are the role the Authority will play in the development
of the parking facilities at Grove Bay and the Coconut Grove Playhouse. Being active
participants in the planning and construction of these projects will help to ensure that
our customers will be able to easily access convenient and affordable parking, once they
reach their destination.
Capital Spending Plan Summary for FY 2018-2019
Another significant project that we will be undertaking this fiscal year is the
commencement of construction of the Grove Bay Garage. This project will add
additional parking inventory to the Grove area and will be an integral part of the
waterfront re -development being undertaken in that part of the City of Miami.
The Agency continues to improve the customer experience when processing a payment
at our facilities, This upcoming year, we will continue to upgrade the Parking Access
Revenue Control (PARC) equipment throughout our facilities. The goal of the new
equipment is to improve the productivity and efficiency in the way we manage our
parking operations. The new technology will also enable the integration with a variety
of industry -related products and solutions.
MPA will continue the effective maintenance routine on its parking structures, thus
avoiding costly repairs and restorations that can be disruptive to customers. Performing
routine structural repairs will help preserve asset value, functionality and public safety.
FINANCIAL HIGHLIGHTS
Revenues
Total operating revenues are budgeted to be $42,025,180 which is $10,023,286 or
31.32% higher than fiscal year 2017-18 budget.
Garage revenues are expected to increase by $584,513 or 11.79%. The biggest factor
influencing next fiscal year's revenue projections is the development being experienced
in downtown increasing the number of transient customers in the garages.
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Lot revenues are budgeted to increase by $1,113,239 or 12.91%, primarily due to
increased utilization being experienced at various lots throughout the City.
On -street revenues are budgeted to increase by $8,266,669 or 49.4%. The biggest
factor influencing next fiscal year's revenue projections in this category is the proposed
rate increase which shall go into effect the second quarter of the fiscal year. This
increase is offset by the removal of on -street parking spaces due to construction and
other projects throughout the City.
Expenses
Operating expenses are projected to increase by $1,584,815 or 9.01% to $19,180,276.
This is mainly attributable to the increase in Salaries and Benefits due to a 100%
increase in Parking Enforcement staff as well as annual adjustments, increased health
insurance costs and increased pension contributions.
Debt Service
Interest and principal payments are budgeted at $4,562,435 and $1,265,000
respectively. The total debt service for the fiscal year is estimated at $5,827,435.
Net Revenue and Debt Service Coverage
The proposed budget for fiscal year 2018-19 will provide approximately $22,854,904 in
net revenues available for debt service, resulting in a debt service coverage of 4.93,
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 $14,491,401.
SUMMARY
The results for the current year and the budget for fiscal year 2018-19 reflect the
continued growth and expansion of the Authority. Net Income for fiscal year 2018-19
after depreciation, amortization and finance charges is estimated at $352,000.
We are particularly pleased that we have been able to continue to provide the City with
a significant revenue stream for the seventeenth consecutive year, while steadily
addressing and meeting the parking needs of our residents, businesses, commuters and
visitors.
The total amount that the City will be receiving from Miami Parking Authority for the
2018-19 fiscal year is estimated at $20,160,401. This figure includes $14,491,401 in
excess revenues from operations, $4,200,000 from parking citation revenues and
$1,469,000 from the operation of various City of Miami -owned parking facilities.
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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 ensure the continuous success of our Agency.
Sincerrely,
/
Art k ur Noriega, V
Chief Executive Officer
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