HomeMy WebLinkAboutLetter - Dept. of Off-Street ParkingHonorable Mayor and Members of the City Commission
During Fiscal Year 2015-16, the Miami Parking Authority (MPA) continues to thrive. We
have increased our market share 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 MPA during fiscal year 2015-16 included the following:
The. Pay -By -Phone program continues to attract new users, as it affords them a
convenient method to pay for parking. We educated the public about the program
through various media streams including social media, radio and print media.
Additionally, we have rolled out a parking plan in several Miami -Dade County Parks where
PayByPhone was promoted as the main payment platform. Due to these initiatives and
to the convenience offered by the program, we achieved have a new milestone with 65%
of our transactions processed with this payment modality. Since the inception of this
program in the City of Miami in 2008, approximately 653,157 customers have registered
to participate in the program, which in turn has generated approximately $24,642,370 in
parking revenue.
Over the past several years, the Authority has experienced rapid change, both in terms of
operational responsibilities as well as in its role within the community development
process. The Authority's traditional role of meeting the parking needs of the City has been
expanded to include fostering an awareness of parking as an integral component of a
balanced transportation system, both public and vehicular, and the community
development process.
The Authority'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 on civic and governmental committees.
The Authority's involvement within the community is demonstrated as follows:
• The Board and Authority continue participating in civic and governmental
committees to share resources and provide input on decisions which impact
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on the area's transportation needs and the City community development
process. Specific to our role in community development, this year we have
expanded our participation and outreach as it relates to the beautification
of the city and the expansion of art in public places.
• The Authority has continued its public -information campaign in order to
update citizens about the Authority's role in parking management, any new
programs being offered as well as its support and financial contributions to
the City. It has been our mission to insure that we reach out to all the
communities which we serve and to this end we used media outlets in
English, Spanish and Creole.
• The Authority continues its participation in neighborhood parking advisory
committees which provides a platform for citizen participation in the
Authority's decision-making process.
The Authority has maintained and expanded its successful partnership with Zip Car. The
car -sharing service offered by Zip Car affords its members all the comforts and
conveniences of a larger vehicle without the hassles and costs. This program has been
such a success in the City of Miami that it continues to expand throughout our greater
Metro area.
MPA continues to successfully manage 7,000 parking spaces for the Public Health Trust
of Miami Dade County and has begun managing the parking operation for several Miami
Dade County Parks.
We continue 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, 2016, the Authority estimates it will contribute
approximately $7,200,000 in excess revenues to the City of Miami. Additionally, the
Authority will also be contributing an additional $1,300,000 to the City of Miami as a
consequence of the sale of the Oak Avenue Garage.
Highlights of the 2016-2017 Budget
We continue to expand the areas in which we offer Pay -by -Phone services and in so doing,
have continued the process of eliminating multi -space machines throughout the City.
The goal of the Authority is to have at least 75% of the on -street transactions processed
through pay -by -phone. We will continue to seek to expand the pay -by -phone program
throughout our 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.
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The continued expansion of our current development cycle offers innumerable
opportunities for our Agency to play an active role in the continued 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, the Coconut Grove Playhouse and Virginia Key. Being
active participants in the planning and construction of these projects will help to insure
that our customers will be able to easily access convenient and affordable parking once
they reach their destination.
In an effort to streamline processes and increase efficiency, our Agency will be improving
our website and its web based applications. The goal is to increase the 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, etc.
Capital Spending Plan Summary for FY 2016-2017
MPA is working on the implementation of a new ERP system that will change the way we
do business. It will help our employees be more productive while at the same time
increasing the value of the data we collect by providing all of the people in the
organization with access to critical business information and processes. The unified,
global solution will promote rapid adoption due to its simple to learn and use capabilities
and it will provide the agility needed to expand business opportunities, modify processes
and differentiate business.
Our agency will also be commencing several landmark projects in this coming fiscal year.
One of these will be our innovative plan to beautify the lots under the 1-395 overpass.
Given the incredible growth in the Midtown area as well as the magnificent
redevelopment 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. Our plans include improved,
increased and artistic light installations which when combined with graphics and
improved landscaping will make this not only a bright, clean and safe place to park, but
will be a destination unto itself.
Another significant project we will be undertaking this fiscal year will be the
commencement of construction of the Grove Bay Garage. This project which will add
additional parking inventory to the Grove area and will be integral part of the waterfront.
redevelopment being undertaken in that area of the City of Miami.
Additionally, we will continue to modernize the elevators in our parking facilities to
ensure that our customers have the best experience from the moment they arrive until
they depart. This project will help reduce maintenance and repair costs.
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FINANCIAL HIGHLIGHTS
Revenues
Total operating revenues are budgeted to be $31,116,339, which is $2,146,449 or 7.41%
higher than fiscal year 2015-16 budget.
Garage revenues are expected to increase by $586,241 or 12.07%. The biggest factor
influencing next fiscal year's revenue projections is the inclusion of Oak Avenue Garage
in this budget which was not contemplated in FY 15-16. We have also leased retail
spaces in several of our facilities along with continued increase of transient and monthly
parkers at Courthouse Center Garage and Cultural Center Garage which is attributed to
all the construction in the area.
Lot revenues are budgeted to increase by $336,983 or 4.77% primarily due to increased
utilization being experienced at various lots throughout the city which are being utilized
by construction crews for a variety of development projects.
On -Street revenues are budgeted to increase by $943,850 or 6.19%. The biggest factor
influencing next fiscal year's revenue projections in this category is the opening of new
businesses in the areas of Brickell, Design District, Midtown, and Central Business District
along with the rapidly -changing Wynwood District. This positively affects the hours of
operations and revenues being generated, as well as expanding our parking space
inventory. 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 $1,350,701 or 8.58% to $17,086,286.
This increase is mainly attributable to the following factors: 1) an increase in Salaries and
Benefits due annual adjustments, increased health insurance costs and increased pension
contributions, 2) increased bank charges due to the continued surge in utilization of pay
by phone technology by our customers as a preferred payment platform and, 3) increased
land rental fees which are directly tied to our revenue share agreements for the use of
FDOT lots. These increases, however, should be seen positively as it is one which is off-
set by growing revenues throughout our operation.
Debt Service
Interest and principal payments are budgeted at $3,397,352 and $1,505,000 respectively.
Total debt service for the fiscal year is estimated at $4,902,352.
Net Revenue and Debt Service Coverage
The proposed budget for fiscal year 2016-17 will provide approximately $14,040,053 in
net revenue available for debt service resulting in debt service coverage of 3.27, before
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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 $7,200,000.
SUMMARY
The results for the current year and the budget for fiscal year 2016-17 reflect the
continued growth and expansion for the Authority. Net Income for fiscal year 2016-17
after depreciation, amortization and finance charges is estimated at $11,229.
We are particularly pleased that we have been able to continue to provide the City with
a significant revenue stream for the fifteenth 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
2015-16 fiscal year is estimated at $12,700,000. This figure includes $8,500,000 in excess
revenues from operations, $2,800,000 from parking citation revenue and $1,400,000
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.
Sincere ,
.',
Arthur Noriega, V
Chief Executive Officer
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