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HomeMy WebLinkAboutMemos - Off-Street ParkingTO: Arthur Noriega, City Manager, City of Miami FROM: Alejandra Argudin, Chief Executive Officer, Miami Parking Authority SUBJECT: FY 2022 Miami Parking Authority Operating Budget DATE: June 30, 2021 Enclosed is the budget for the Department of Off -Street Parking for the Fiscal Year 2021-22. This budget was approved by the Off -Street Parking Board at its meeting of June 30, 2021. Please place approval of this budget by the City Commission on the agenda for September 13, 2021. 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. Enclosure cc: Marta Gomez -Chen Angela Smith 40 NW 3rd St, Suite 1103 Miami FL 33128 miamiparking.com T 305.373.6789 F 305.371.9451 TO: Honorable Mayor and Members of the City of Miami Commission FROM: Alejandra Argudin, Chief Executive Officer, Miami Parking Authority SUBJECT: FY 2022 Miami Parking Authority Operating Budget DATE: June 30, 2021 Enclosed is the budget for the Department of Off -Street Parking for the Fiscal Year 2021-22. This budget was approved by the Off -Street Parking Board at its meeting of June 30, 2021. We respectfully request your approval of this budget at your meeting scheduled for September 13, 2021. Enclosure cc: Marta Gomez -Chen Angela Smith 40 NW 3rd St, Suite 1103 Miami FL 33128 miamiparking.com T 305.373.6789 F 305.371.9451 Honorable Mayor and Members of the City Commission: During Fiscal Year 2020-21, the Miami Parking Authority (MPA) continued 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 MPA's accomplishments during fiscal year 2020-21 included the following: Development and Operations The Regatta Harbour Parking Garage was completed in August 2020. This four -level, mixed -use facility features 388 parking spaces, 104 surface parking spaces, and 33,476 square feet of retail establishments on the ground floor. Ornamental and sustainable features adorn the garage, retaining the character of the surrounding areas while minimizing the facility's carbon footprint. In recognition of its unique and aesthetically pleasing design, the project recently received the Excellence in Architectural Design Award presented by the International Parking and Mobility Institute. As we continue to research and implement modern curbside management technologies, we are piloting programs which include the use of artificial intelligence for mapping, sensors for management of loading zones, license plate recognition for occupancy and compliance statistics, a new parking enforcement software program, and migration of decals to electronic permits. MPA, in collaboration with Miami -Dade County and other urban mobility organizations, participated in the CoMotion Miami conference. The conference provided a good opportunity to showcase MPA's innovative initiatives, such as piloting curb technology and the potential for engaging with urban aerial mobility options in the future. MPA continues to expand its role beyond operational responsibilities to further participate in the community development process. The success of this initiative relies on expanding awareness of parking as an integral component of a balanced transportation infrastructure network. To this end, MPA has actively participated in facilitating expanded outdoor seating areas for restaurants using parking spaces in the public right of way. The MPA has and will continue to participate in special planning 40 NW 3rd St, Suite 1103 Miami FL 33128 miamiparking.com T 305.373.6789 F 305.371.9451 Page 1 of 6 exercises with the city of Miami and community stakeholders in efforts to adaptively reuse surface parking lots as public amenities, if, and as, necessary. These efforts contribute to neighborhood beautification, economic development, and engagement, as well as our steady participation in civic and governmental boards and committees. In July, MPA relaunched the PayByPhone program in Miami -Dade County parks and marinas by deploying its enforcement officers as community ambassadors to create awareness of the parking payment platform and serve as a resource on the use of the app. MPA proudly continues to successfully manage 7,000 parking spaces for the Public Health Trust of Miami -Dade County and the parking operation for several Miami -Dade County and city of Miami parks. MPA also continues its public -information campaign to update citizens about its role in parking management, any new programs being offered, and our support and financial contributions to the City. It has been MPA's mission to ensure that it reaches out to all the communities which it serves. Accordingly, MPA collaborates with the English-, Spanish-, and Creole -language media to communicate information to the public. Furthermore, MPA continues to participate in neighborhood parking advisory committees, together with various City agencies such as Omni CRA, Overtown CRA, Downtown Development Authority, Wynwood BID and Coconut Grove BID, which all provide input into MPA's decision -making process. COVID-19 Initiatives As demand for food pickup and delivery services as well as outdoor dining soared, MPA continued to expand the number of free, on -street parking spaces in high -demand and key commercial areas to assist local restaurants. This program applied to those establishments that offerd pickup and delivery services and outdoor dining. The intent of the outdoor dining spaces in the public right of way was to provide relief to the restaurants that needed additional seating due to the capacity limitations imposed by the restrictions during the pandemic. To date, MPA has set aside 148 parking spaces for restaurants and, as a result, has contributed approximately $1.5Mas in -kind parking to the community. Vacation Parking Program MPA launched a new campaign to offer short- and long-term parking for visitors to downtown Miami. The main objectives are to provide accessible parking to visitors while helping drive traffic to the garages in the central business district. The vacation parking program was kicked off with a digital marketing campaign in collaboration with the Greater Miami Convention and Visitor Bureau. With a rotation of images and Page 2 of 6 Yl i;.Grrii I'ariz ing ul11urily messages, the campaign aims to reach the visitor market as well as event and conference organizers. FreaflownParking at loanDepot Park K1PAhas partnered with Pay8vPhoneand the Marlins organization to manage a free - flow parking system at loanDepot park. Afirst for Miami and the nation, |manDepmtpark is the only venue in professional sports to adopt this free -flow method of parking across all its on -site parking facilities. Free -flow parking was implemented to improve urban mobility by increasing traffic flow, reducing congestion, minimizing carbon footprint, and enhancing fans' experience and functions by allowing attendees to enter the garage without a friction point - stopping for payment collection or scanning a pass. Vehicles drive straight to the garage or lot without stopping and proceed to a parking spot, subject toavailability. R0icrommobl|ity In October 3031, K8PA launched the Freebee circulator with limited capacity and service area due tothe COV|D pandemic. To promote the program, MPA created a grassroots campaign, called "Everybody Rides Freebee," featuring community leaders from various downtown organizations riding the circulator. To date, Fneebee has reported approximately 4,90Otrips and driven 12,200guests. Additionally, tofurther support the community, yNPAoffmred a 50 percent parking discount to patrons who parked in K4PA garages and hopped onthe Freobem. In acollaboration with K1PA, Revel launched the electric shared moped program in the city of Miami. Revel offers residents and visitors another micro -mobility option. The program has completed over 82,000 trips and approximately 300,000 miles. Additionally, we are collaborating with Swiftmile, Inc. to implement a program featuring charging stations for electric scooters and eBikes in strategically located facilities owned and/or operated by W1P/\. These services are intended for the general benefit and convenience of the public by providing facilities for orderly parking of shared nnicronlubiUtydevices. The program serves to support K4P/Ys responsibility to enforce parking standards for the shared micro -mobility program. Green Initiative MPA is closely collaborating with the city of Miami on a Greenhouse Gas Reduction Plan and Roadrnap to Carbon Neutrality by 3050. To achieve our nonnrnon goals, which include an expansion ofE\/ charging infrastructure, new sources of grant funding are being pursued. We are proud to continue to expand options for motorists choosing to drive and park - electric vehicles (EV). During 2020 and 2021, we have increased the installation of ChargePoint "Level 2" dual -port charging stations that are compatible with all EVs. To Page 3 of 6 �Jiun`i |`u,kin� date, the charging stations have been installed in seven garages, totaling 20 electric parking spaces. Highlights mfthe 2021-3022 Budget The budget reflects an increase of $9,432,291 in gross revenue. The K4PAiscreating a series of innovative parking enhancements that will benefit the community and respond tothe demands posed by continuous urban growth. Several highlights include a data driven curb management system and touch|ess parking technology inall parking facilities, among others. We continue to expand the areas in which xveoffer PavQvPhnneservices to maximize thetouch|ess experience that it continues to provide customers through the [oxid-19 pandemic. To address this situation further, K4PA has continued the process of eliminating multi -space machines throughout the city. The goal ofthe K4PAistohave ot least 95% of the on -street transactions processed through Pay8yPhone. K4PA will continue to pursue the expansion of the PoyBvPhone program to broaden the pool of customers that it is able tntap into. This will continue to generate revenue for K4PA, while providing customers added convenience when paying for parking in the city of The continued expansion of the current development cycle offers innumerable opportunities for N4PAto play an active role in the steady growth of the city. Examples of such opportunities are the role K4PA played in the development of the parking facilities at Regatta Harbour garage and Grand Station tower. Being active participants in the planning and construction of these types of projects will help to ensure that customers will be able to easily access safe and convenient parking, once they reach their destination. During the year ending September 30\ 3031, K4PA estimates that it will contribute approximately $8,000,000 in excess revenues to the City of Miami. Capital Spending Plan SumnrmarVfor IFY 2021-2022 In the aftermath of the COVID pandemic, MPA is carefully weighing opportunities ahead and resetting capital spending asofthe writing ofthis letter. While MPAisfocusing on path to recovery, it is also cognizant of the current need to meet its obligations and preserve cash flow. Unforeseen resources were deferred todeal with the pandennicto continue to serve the needs of the public, while supporting customers in time of unprecedented need. Page 4 of G N1iomi |`",kA"||/°, With the steady growth of the population in the urban areas, it is imperative that MPA continues to be at the crossroad of technological innovation to support mobility and a sustainable business core. To that end, the MPA will be implementing new technology to better serve our customers, while improving traffic flow in the most congested parts of the city. The technology will consist of in -ground sensors, license plate recognition cameras, and security cameras throughout the facilities. In essence, we foresee urban mobility to be an essential component of economic and social progress and a sustainable living environment for today as well as future generations. As part of our green initiative, the MPA will also replace a portion of its fleet to electric and hybrid vehicles. By this action, the Authority is taking a leap forward toward supporting a more sustainable city. MPA will continue the effective maintenance routine of 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 $45,674,914 which is $9,432,291 or 26.03% more than fiscal year 2020-21 budget. Garage revenues are expected to decrease by $408,639 or 9.24%. The main factor influencing next fiscal year's revenue projections is the post pandemic effects of Covid- 19. Many businesses will continue to operate from home or have a hybrid work -flow program where employees will only be required to go to the office several days a week. Lot revenues are budgeted to increase by $887,665 or 13.10%, The main factor for this increase is due to the continuous growth in the entertainment and restaurant/food industry. On -street revenues are budgeted to increase by $8,209,720 or 34.94%. We continue to see growth in the on -street parking inventory. The areas that have entertainment venues, restaurants, and retail continue to thrive. In this post -pandemic time, our citizens and many domestic tourists are getting out and enjoying all that our city has to offer. Expenses Operating expenses are projected to increase by $1,407,249 or 6.73% to $22,329,794. This is mainly attributable to the increase in bank fees, revenue share, salaries, and benefits. Page 5 of 6 �1 i t n i t I' u r kin 1 t i t l i i r i Debt Service Interest and principal payments are budgeted at $1,620,054 and $1,695,000, respectively. The total debt service for the fiscal year is estimated at $3,315,054. Net Revenue and Debt Service Coverage The proposed budget for fiscal year 2021-22 will provide approximately $19,445,120 in net revenues available for debt service. This will result in a debt service coverage of 5.86, 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 $10,000,000. SUMMARY The results for the current year and the budget for fiscal year 2021-22 reflect the continued growth and expansion of the MPA. Net Income for fiscal year 2021-22 after depreciation, amortization and finance charges is estimated at $17,985,066. Although we experienced significant revenue constraints due to the Covid-19 pandemic, we will continue to provide the city with a revenue stream for the nineteenth 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 the Miami Parking Authority for the 2021-22 fiscal year is estimated at $17,700,000. This figure includes $10,000,000 in excess revenues from operations, $6,500,000 from parking citation revenues and $1,200,000 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, responsiveness, and hard work to ensure the continuous success of the Miami Parking Authority. Sincerely, Alejandra Argudin Chief Executive Officer Page 6 of 6 M i a i I' <i r k i n ;; :1 i i 1 1 i u r i 1 y