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HomeMy WebLinkAbout2006-3538 Ordinance " ORDINANCE NO. 2006-3538 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING APPENDIX A OF THE CITY CODE, ENTITLED "FEE SCHEDULE," BY AMENDING THE FEE SCHEDULES FOR SECTION 110-166 ENTITLED "SCHEDULE OF WATER RATES AND TAPPING CHARGES" BY AMENDING SUBSECTIONS (a) AND (b) THEREOF AND BY AMENDING THE FEE SCHEDULES FOR SECTION 110-168 ENTITLED "SANITARY SEWER CHARGE," OF DIVISION 2, ENTITLED "RATES, FEES, AND CHARGES," OF ARTICLE IV ENTITLED, "FEES, CHARGES, RATES AND BILLING PROCEDURE," OF CHAPTER 110 ENTITLED "UTILITIES," IN ORDER TO INCREASE THE MINIMUM MONTHLY SERVICE CHARGE IMPOSED BY THE CITY; ADJUSTING THE SCHEDULE OF RATES FOR THE MINIMUM MONTHLY WATER SERVICE CHARGE; AND INCREASING THE SANITARY SEWER SERVICE CHARGE IMPOSED BY THE CITY; PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners for Miami-Dade County adopted wastewater and water rate adjustments for the fiscal year 2005/2006 which will have an impact on the rates charged by the City in fiscal year 2006/2007; and WHEREAS, the schedule of rate increases provided herein provides for the increase in wholesale rates to be charged to the City by the County and the payment of principal and interest for the Series 2000 Water and Sewer Revenue Bonds and the 2006 Gulf Breeze loan; and WHEREAS, the rate increase provided herein includes the increase adopted by the Miami-Dade Board of County Commissioners for water and wastewater; and WHEREAS, the rate increases provided herein also include payment of the County's Department of Environmental Resources Management fee. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows: SECTION 1: That Appendix A to Article IV, Division 2, of Chapter 110 of the Miami Beach City Code is hereby amended as follows: APPENDIX A - FEE SCHEDULE * * * Section this Code Description Amount * * * Chapter 110. Utilities * * * Article IV, Fees, Charges, Rates and Billing Procedure Division 2. Rates, Fees and Charges 110-166 (a) Minimum service charge Section this Code 11O-166(b) Size of Meter Gallons of Water Per month %" I" 1.5" 2" 3" 4" 6" 8" 5.000 7.000 1 1.000 1 7.000 40.000 80.000 120.000 200.000 * * * * * * Minimum Monthlv Service Charge (effective for billinf!s on or after October 1,2006) 13.95 19.53 30.69 47.43 111.60 223.20 334.80 558.00 Description Water in excess of subsection 11O-166(a), shall be as follows: $2.21 per 1,000 gallons, effective with billings on or after October 1, 2000; $2.26 per 1,000 gallons, effective with billings on or after October 1, 2001; $2.31 per 1,000 gallons, effective with billings on or after October 1, 2002; $2.44 per 1,000 gallons, effective with billings on or after October 1, 2003; $2.49 per 1,000 gallons, effective with billings on or after October 1, 2004; aHd $2.54 per 1,000 gallons, effective with billings on or after October 1, 2005";"~ and $2.79 per 1.000 gallons effective with billings on or after October 1.2006. 2 * * * Section this Code llO-168(a) Sanitary sewer service charge, shall be as follows: $3.73 per 1,000 gallons, effective with billings on or after October 1, 2000; $3.81 per 1,000 gallons, effective with billings on or after October 1, 2001; $3.90 per 1,000 gallons, effective with billings on or after October 1, 2002; $4.03 per 1,000 gallons, effective with billings on or after October 1, 2003; $4.12 per 1,000 gallons, effective with billings on or after October 1, 2004; ami $4.21 per 1,000 gallons, effective with billings on or after October 1, 2005-;-; and $4.25 per 1,000 gallons, effective with billings on or after October 1.2006. SECTION 2. CODIFICATION It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this ordinance shall become and be made part of the Code of the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section", "article" or other appropriate word. SECTION 3. REPEALER All ordinances or parts of ordinances in conflict herewith are and the same are hereby repealed. SECTION 4. SEVERABILITY If any section, subsection, sentence, clause, phrase or portion of this Ordinance is, for any reason, held invalid or unconstitutional, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity or constitutional, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity or constitutionality of the remaining portions of this Ordinance. 3 SECTION 5. EFFECTIVE DATE This Ordinance shall take effect on the 15t day of October , 2006. PASSED and ADOPTED this 11 th ATTEST: '1~rp~ . CITY CLERK Robert Parcher T:\AGENDA \2006\sep0606\Regular\Rate Ordinance 1 stRdg .doc day of October ,2006 David Dermer APPROVED AS TO FORM & LANGUAGE & FO ECUTION JQ LID I~ ate 4 Condensed Title: An ordinance amending the City of Miami Beach City Code Chapter 110, entitled "Utilities" amending Article IV, entitled "Fees, Charges, Rates, and Billing Procedures Division 2. Rates, Fees and Charges" to increase the water supply service charge imposed by the City; adjusting the schedule of rates for minimum monthly water service charge imposed by the City; increasing the sanitary sewer service charge imposed by the city; providing for codification, repealer, severability and an effective date. Ke Intended Outcome Su orted: Ensure well maintained infrastructure. Issue: Shall the City amend the City Code increasing the water and sewer rates? Item Summary/Recommendation: Late in 2005 Miami-Dade County proposed a water and sewer rate increase totaling $5.2 Million for the City of Miami Beach. With the support of the City Commission, City Staff objected to the rate increase worked with Miami-Dade County to seek an improved method of determining cost and rate structures. As a result of our objection and review, the County provided an amended rate increase which raised the wholesale water rate from $0.85 per thousand gallons to $1.10 per thousand gallons. The annual cost increase cost to the city is an estimated $1,795,100. The County raised the average wholesale wastewater treatment rate from $1.70 per thousand gallons to $1.74 per thousand gallons, or approximately 2.4 percent. The annual increased cost to the City for wastewater treatment is estimated to be $712,969 or a total combined increase of $2.5 million. The City will absorb the increase of water and sewer rates for FY2005/2006. The rate increase estimated to be $2,508,069 will be absorbed by the General Fund over a period of two years. The FY2005/2006 water and sewer rate increases will not be passed on to Miami Beach residents. The City Commission, at its September 6,2007 meeting, opposed the approval of FY2006/07 water and sewer rates proposed by Miami-Dade County. At the request of the City Commission, Commissioner Bower attended the Miami-Dade Board of County Commissioners meeting of September 7,2006 to express the City's concerns about the not fully justified rate increases for FY 2005/06 and FY 2006/07. The Administration is re-submitting the ordinance, for second reading, increasing City of Miami Beach water and sewer rates by 4.75% to allow passing through the increase in Miami-Dade County wholesale water and sewer rates that was implemented by the County in FY 2005/06. Should the City Commission approve the rate ordinance on second reading on October 11, it would provide sufficient time to implement the rate increase effective for the entire Fiscal Year. In the event the ordinance is not approved by the City Commission, for every month of delay, the impact to the City would be approximately $200,000. Administration recommends adoptinq the Ordinance amendment. Advisory Board Recommendation: I N/A Financial Information: Source of Amount Account Approved Funds: 1 $ 712,969.00 425 8000 343510 Sewer D 2 $1,795,100.00 425 8000 343310 Water 3 4 OBPI Total $2,508,069.00 Ci Clerk's Office Le islative Trackin : Bob Halfhill, Public Works Department X6833 Si n-Offs: Department Di ctor City Manager ~ r MIAMIBEACH AGENDA ITEM DATE ~S-8 IO-r/-tJb lD MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager ~..~ October 11, 2006 () SECOND READING AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING APPENDIX A OF THE CITY CODE, ENTITLED "FEE SCHEDULE," BY AMENDING THE FEE SCHEDULES FOR SECTION 110-166 ENTITLED "SCHEDULE OF WATER RATES AND TAPPING CHARGES" BY AMENDING SUBSECTIONS (a) AND (b) THEREOF AND BY AMENDING THE FEE SCHEDULES FOR SECTION 110-168 ENTITLED "SANITARY SEWER CHARGE," OF DIVISION 2, ENTITLED "RATES, FEES, AND CHARGES," OF ARTICLE IV ENTITLED, "FEES, CHARGES, RATES AND BILLING PROCEDURE," OF CHAPTER 110 ENTITLED "UTILITIES," IN ORDER' TO INCREASE THE MINIMUM MONTHLY SERVICE CHARGE IMPOSED BY THE CITY; ADJUSTING THE SCHEDULE OF RATES FOR THE MINIMUM MONTHLY WATER SERVICE CHARGE; AND INCREASING THE SANITARY SEWER SERVICE CHARGE IMPOSED BY THE CITY; PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. FROM: DATE: SUBJECT: ADMINISTRATION RECOMMENDATION Approve the Ordinance on the Second Reading Public Hearing. ANALYSIS The rates for water supply and sanitary sewer services consist of a pass-through of the wholesale rate the City pays to the Miami-Dade Water and Sewer Department (WASD) for the purchase of potable water and treatment of sewage; debt service for the Series 2000 Water and Sewer Revenue bonds and the 2006 Gulf Breeze loan; operating and maintenance costs for the water and sewer utility; and a 7.5% fee paid to the Miami-Dade County Environmental Resource Management Department (DERM). On August 23, 2005, two weeks before the City's first budget hearing for fiscal year 2005/06, the City Administration received notice from Miami-Dade County of a proposed increase to the wholesale water and sewer rates charged to municipalities. As such the City had very little time to fully evaluate the proposed rate increases, and impact of approximately $5.2 million to the City of Miami Beach. Staff, with the support of the City Commission, objected to the rate as being unsupported. Through meetings with Miami-Dade County Water and Sewer Department (WASD) the rate increases were reduced to a revised estimated amount of $2,508,069, a reduction of approximately fifty percent (50%) The lower rate increase for fiscal year October 2005-September 2006 and deferred payment plan through September 2007 were approved by the Miami-Dade County BCC on March 21 , 2006 with the understanding that final rates for FY2005/06 and FY2006/07 and projected future rates would be determined by an independent rate consultant. The rate increase raised the wholesale water rate from $0.85 per thousand gallons to $1.10 per thousand gallons. This reflects an increase in the wholesale water rate of $0.25 per thousand gallons. The annual cost increase to the City for wholesale water is an estimated $1,795,100. The rate increase raised the average wholesale wastewater treatment rate from $1.70 per thousand gallons to $1.74 per thousand gallons. This reflects an increase to the average wholesale rate of $0.04 per thousand gallons. The annual cost increase to the City for wastewater treatment is an estimated $712,969. The City will absorb the increase of water and sewer rates for FY2005/06. The rate increase estimated to be $2,508,069 will be absorbed by the General Fund over a period of two years. The FY2005/06 water and sewer rate increases will not be passed on to Miami Beach residents. On July 5, 2006, WASD provided the results of an independent consultant reviewing additional wholesale water and sewer rate adjustments. The consultant has recommended no additional adjustments of wholesale water and sewer rates for FY2006/07. The County Administration has recommended to the Miami-Dade Board of County Commissioners that the FY2006/07 rates remain the same as the rates for FY2005/06. Had the City not been involved with the process, it can be expected that the County would have further increased rates in fiscal year 2006/07 by CPI, as originally proposed. The FY2006/07 water and sewer rate increases are proposed to be charged to Miami Beach customers effective October 1,2006. The combined water and sewer $0.29 cents pass-through will add an additional $3.17, or about 4.75%, per month to a typical Miami Beach family residential bill. The City Commission, at its September 6, 2006, meeting opposed the approval of FY2006/07 water and sewer rates proposed by Miami-Dade County. At the request of the City Commission, Commissioner Bower attended the Miami-Dade Board of County Commissioners meeting of September 7, 2006 to express the City's concerns about the not fully justified rate increases for FY 2005/06 and FY 2006/07. Commissioner Bower on behalf of City of Miami Beach Commission also requested that Miami-Dade Board of County Commissioners, just as they did in September 2005, re- instate FY 2004/05 rate levels until a proper justification is provided to the municipalities. She also requested that if the Miami-Dade Board of County Commissioners decides to approve the ordinance maintaining the rates for FY 2006/07 at FY 2005/06 levels that Miami-Dade County Administration send a senior representative to the City of Miami Beach Commission meeting on September 21, 2006 to explain the water and wastewater rate increases and to show how wholesale revenues received from municipalities are spent by Miami-Dade County Water and Sewer Department. A letter was also sent from the City to the County requesting that a representative attend the City of Miami Beach Commission meeting on September21 , 2006 for the same purpose. Miami-Dade Assistant County Manager Roger Carlton attended the Commission meeting on September 21, 2006 and presented an overview of the County's process that led to the increase in water and sewer wholesale rates in FY05/06. Further, he presented the ongoing issues that would likely lead the County to consider and/or recommend further rate increases in the future to meet the operating and capital construction needs of the County. He promised to maintain the dialogue that was critical to addressing the poor communication that characterized the beginning of the County rate-setting process. 2 The Administration is re-submitting the ordinance, for second reading, increasing City of Miami Beach water and sewer rates by 4.75% to allow passing through the increase in Miami-Dade County wholesale water and sewer rates that was implemented by the County in FY 2005/06. Should the City Commission approve the rate ordinance on second reading on October 11 , it would provide sufficient time to implement the rate increase effective for the entire Fiscal Year. · In the event the ordinance is not approved by the City Commission, for every month of delay, the impact to the City would be approximately $200,000 for a cumulative impact of $2.5 million for the entire year. CONCLUSION The City's Water and Sewer Enterprise Funds do not have the capacity to support the $2.5 million FY2006/07 water and sewer rate increases. 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