2009-3652 OrdinanceORDINANCE NO. 2009-3652
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF
THE MIAMI BEACH CITY CODE, ENTITLED "UTILITIES"; AMENDING
ARTICLE III THEREOF, ENTITLED "STORMWATER UTILITY,"
AMENDING SECTION 110-109 THEREOF ENTITLED "STORMWATER
UTILITY FEES," BY AMENDING APPENDIX A THERETO ENTITLED
"FEE SCHEDULE," TO INCREASE THE STORMWATER UTILITY
SERVICE CHARGE IMPOSED BY THE CITY AS OF OCTOBER 1,
2009; PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY,
AND AN EFFECTIVE DATE.
WHEREAS, the City owns and operates a Stormwater Utility System ("System"), which
is currently funded by a stormwater utility service charge; and
WHEREAS, a Capital Improvement Program (the "Program") has been developed to
implement stormwater improvements for the System; and
WHEREAS, it is necessary to finance the Program through the issuance of
Stormwater Revenue Bonds; and
WHEREAS, in 2000, the Series 2000 Stormwater Revenue Bonds were issued to
continue the improvement of the System; and
WHEREAS, the schedule of rate increases proposed herein will provide sufficient
revenues for the payment of principal and interest on the proposed Stormwater Revenue Bonds;
and
WHEREAS, the rate increases proposed herein include funding for additional costs for
operation and maintenance of the System; and
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 Section 110-109 (c) of Article III of Chapter 110 of the Miami
Beach City Code is hereby amended as follows:
APPENDIX A
FEE SCHEDULE
Chapter 110. Utilities
Article 111. Stormwater Utility
110-109(c) Stormwater utility service charge effective with billings on or after the following
dates shall be as follows;
October 1, 2000 $3.25
October 1, 2001 $4.00
October 1, 2002 $5.50
October 1, 2003 $5.80
October 1, 2004 $5.80
October 1, 2005 $5.80
October 1, 2008 $7.42
October 1.2009 $9.06
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
re-lettered 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.
SECTION 5. EFFECTIVE DATE
This Ordinance shall take effect on the 1St day of October, 2009.
PASSED and ADOPTED this 24th day of September , 2009
ATTEST:
~ ~L
ROBERT PARCHER, CITY CLERK
MATTI ERR A BOWER
MAYOR
~e ~~1~'~
ae ~~ Cl.~~+~i'+!
1
T:WGENDA\2009\September 10\Regular\FY10 Stormwater Rate Ordinance1stRdg.doc ,- ~ ~ ~ Oq
f ~ c3
COMMISSION ITEM SUMMARY
~_~r_~__r T•al
VUIIGCII,cu 1 nlc.
An Ordinance of the Mayor and City Commission of the City of Miami Beach, Florida Amending Chapter 110 of The
Miami Beach City Code, Entitled "Utilities;" Amending Article III, Thereof Entitled "Stormwater Utility;" Amending
Section 110-109 Thereof Entitled "Stormwater Utility Fees," By Amending Appendix A Thereto Entitled "Fee
Schedule" To Increase the Stormwater Utility Service Charge Imposed by the City as of October 1, 2009; Providing
for Codification, Re Baler, Severabili ,and an Effective Date.
Ke Intended Outcome Su orted:
Ensure well maintained infrastructure.
Supporting Data (Surveys, Environmental Scan, etc.): Consistent with prior surveys, the 2009 community
survey, storm drainage was identified as areas for improvement, although improved from prior surveys. More than half
of residential and business res ondents rated storm drains a as fair or oor.
Issue:
Shall the Mayor and City Commission approve the amendment to the Ordinance on first reading and schedule a
ccnnnri rc~rlinn nuhlic haarinn~
Item Summa /Recommendation:
At the September 17, 2008 Budget Hearing, the City Commission approved a rate increase for stormwater. This rate
increase was necessary for the issuance of future storm bonds to fund projected additional stormwater construction
improvement costs in not-yet-started neighborhood projects in the estimated amount of $94.5 million. The City
Commission approved increase for FY2008/09 was $1.62 per month for a residential customer, taking the rate from
$5.80 to $7.42 per month.
In FY2009/10, the Administration is proposing an increase in stormwater fees from $7.42 to $9.06 for a residential
customer. The increase of $1.64 or 22 percent over FY 2008/09 rates is necessary to be able to provide bond
coverage to issue the first series of additional bonds. The Ordinance amendment only includes a rate increase proposal
for FY 2009/10. It is important to note that the component of the rate increase related to the first bond sale that had
been anticipated last year for FY 2009/10 was $2.01, compared to the $1.64 increase we are recommending.
The Finance and Citywide Projects Committee (FCW PC) met on September 3, 2009 to review the proposed Ordinance
amendment, but elected to refer the item to the full Commission for its consideration.
The Ordinance amendment was approved on first reading at the City Commission Budget Hearing of September 10,
2009.
THE ADMINISTRATION RECOMMENDS APPROVING THE AMENDMENT TO THE ORDINANCE.
Adviso Board Recommendation:
N/A
Financial intorm ation:
Source of Amount Account Approved
Fun ~ $2,008,751 427-8000-343710 Stormwater
2
O I Total $2,008,751
crtv erk's Office Legislat ive Tracking:
Keith Wilder ext 6192
C in n _(lffc • ~~
De artmen Director As Cit Mana er Cit M r
FHB .r~' PD TH JMG
T:WGENDA\2009\Se a 24\Regular\FY10 Stormwater Rate Ordinance SUMM.doc
1 AGENQA ITEM ~SG
n DATE Q~2.~~g
m- MIAMIBEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager ~ SECOND READING
DATE: September 24, 2009 PUBLIC HEARING
SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF THE MIAMI
BEACH CITY CODE, ENTITLED "UTILITIES;" AMENDING ARTICLE III
THEREOF, ENTITLED "STORMWATER UTILITY;" AMENDING SECTION
110-109 THEREOF ENTITLED "STORMWATER UTILITY FEES," BY
AMENDING APPENDIX A THERETO ENTITLED "FEE SCHEDULE," TO
INCREASE THE STORMWATER UTILITY SERVICE CHARGE IMPOSED BY
THE CITY AS OF OCTOBER 1, 2009; PROVIDING FOR CODIFICATION,
REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The Administration recommends approving the Ordinance amendment on second reading public
hearing setting the stormwater rate for FY 2009/10.
BACKGROUND
At the Special Finance and Citywide Projects Committee (FCWPC) meeting of June 30, 2008, a
summary of future stormwater bond funding needs for the Neighborhoods Right-of-Way projects
were presented. At that meeting, the additional stormwater funding need of $94.6 million was
identified, based on anticipated scope of work requirements for future stormwater construction
across the not-yet-started neighborhood projects. The Committee also requested that the rate be
spread over two years.
At the Commission Budget hearing on September 8, 2008, the Administration recommended a
proposed rate for FY 2008/09 for stormwater of $9.45 per month. However, the Administration took
a further look at the phasing of the projects, with the goal of reducing the impact of the initial rate
increases. As part of this review, the 10% operating expense contingency was reduced to 5%,
earnings in excess of $1 million were carried forward as revenues in the subsequent year, the
issuance of the first series of bonds was moved from October 2009 to mid 2010 and the second
series of bonds to 2012. As a result of these modifications, the revised stormwater rate was lowered
for FY 2008/09 to $7.42 per ERU.
At the September 17, 2008 Budget Hearing, the City Commission approved a rate increase for
stormwater. This rate increase was necessary to have the capacity to issue $39.1 million in
stormwater bonds in mid FY 2009/10. The approved rate increase was $1.62 per month, taking the
rate from $5.80 to $7.42 per month.
September 24, 2009 City Commission Memo
FY10 Stormwater Rate Ordinance MEMO
Page 2 of 3
Rate requirements for Additional Stormwater Bonds
The City hired a rate consultant in 2008 to calculate the potential future rates. The rate calculation
had to consider debt service coverage requirements under two conditions. The first condition,
termed the additional bonds test, required that net revenues available for debt service be no less
than 110 percent of the maximum annual debt service of the outstanding plus prospective debt to be
issued, for at least 12 months prior to the issuance of additional bonds. The second condition, which
must be fulfilled annually, irrespective as to whether issuance of any prospective debt is
contemplated, is termed the rate covenant. Net revenues available for debt service in each fiscal
year must not be less than 110 percent of the principal and interest requirements for such fiscal year
to meet the rate covenant. In addition to meeting the two debt service coverage conditions, annual
revenues must be sufficient to meet other revenue requirements without resulting in a cash flow
deficit. Using information provided by the City and its Financial Advisor, the rate consultant
completed a series of pro formas that provide rate increases required to cover debt repayment of a
future stormwater bond.
The Administration has identified a future stormwater debt of $94.6 million required to fund
components of the City's Capital Improvement Program, including recently identified hot spot areas
where flooding is a major concern. Flooding for purposes of the Stormwater Improvement Program
is meant to be for those areas in which private property is negatively affected by stormwater levels or
when a roadway is not safely passable by virtue of stormwater elevations exceeding the 5 year
event on the road surface for longer than acceptable durations. Those areas that are subject to
nuisance flooding, where temporary accumulations ofstormwater on aright-of-way are experienced
and vehicular movement is not hindered would generally not be considered as part of this program.
Nuisance flooding is permitted under the County's stormwater storage criteria up to a 5 year storm
event, allowing rainfall water runoff to accumulate up to the crown of the road and up to 15 feet from
private properties. These stormwater infrastructure improvements like the water and sewer
upgrades are an integral part of the G.O. Bond neighborhood projects.
The Stormwater Enterprise fund is anticipated to need the capacity to issuetax-exempt debt by mid
2009/10 to cover the construction costs of stormwater improvement projects in the amount of $39.1
million, plus any costs, if required, to refund the line of credit. The second issue of $55.5 million
could be issued in 2012, as the funding is needed to support the last group of stormwater
improvement projects. The size of the second bond issue will be better determined after hydraulic
modeling of the existing system is completed for the Flamingo and West Avenue neighborhoods.
In order to be able to provide coverage to issue the first series of additional bonds, the
Administration proposes a monthly stormwater rate of $9.06 represents an increase for a residential
customer of $1.64 per month or 22% above the FY 2008/09 rate of $7.42 per month.
FY 2008/09
Rate FY 2009/10
Pro osed Rate Difference From
FY2008/09 Rate
% Chan e
Stormwater $7.42 $9.06 $1.64 22%
The recommended rate is conservative in the area of needed bond coverage based on the
information developed to date. The Administration will continue to work on the bond debt needs and
anticipates having more information before it is necessary to actually issue the bonds. If less
financing is required and the market substantially improves it may be possible to reduce the rates at
that point.
September 24, 2009 City Commission Memo
FY10 Stormwater Rate Ordinance MEMO
Page3of3
The table below projects increases from FY 2011 through FY2013/14 primarily due to the second
debt issuance; however, the Ordinance amendment only includes a rate increase proposal for FY
2009/10. As with this year, we will refine these on an annual basis.
Stormwater
Pro osed Fees Current
Rate FY2011
FY2012
FY2013
FY2014 Cumulative
Increase
Monthl Char e $ 7.42 10.33 $ 12.39 $ 12.76 $ 13.02 $ 5.60
Fee Increase 14% 20% 3% 2.0% 75%
Monthl Increase $ 1.27 $ 2.06 $ 0.37 $ 0.26 $ 5.60
The Finance and Citywide Projects Committee (FCWPC) met on September 3, 2009 to review
the proposed Ordinance amendment, but elected to refer the item to the full Commission for its
consideration.
The Ordinance amendment was approved on first reading at the City Commission Budget Hearing
of September 10, 2009. The Ordinance amendment only includes a rate increase proposal for FY
2009/10. It is important to note that the component of the rate increase related to the first bond sale
that had been anticipated last year for FY 2009/10 was $2.01, compared to the $1.64 increase we
are recommending.
CONCLUSION:
The Administration recommends approving the Ordinance amendment on second reading and
setting the stormwater rate for FY2009/10.
JMG/TH/FHB
T:\AGENDA\2009\September 24\Regular1FY10 Stormwater Rate Ordinance MEMO.doc
SUNDAY, SEPTEMBER 13, 2009 121M8
~n
CITY Of MIAMI BE~-CH_ ~ ~ ~ -~_'
NOTICE OF ~PUBL~IC HE~-F~ING~ -
NOTICE.IS HEREBY given that second readings and public. hearings will beheld by the Mayor and City Corn-xiission of the City of
Miami Beach, Florida, in the Commission CharPbers,-3rd floor, City Hall, 1700 Convention Center Dfire, Miami Beach, Florida, on
Thursday, September 24, 2009, to consider the following: - ~ ;
5:05-p.m. _ _ 4 ~ - : _
An Ordinance Amending Miami Beach City Code Chapter 2, Article Vlt, Entitled "Standards OfConduct' ; Amending.Section 2.482,
Entitled "Registration"; Amending Section 2-482(A)And 2-482(F~ Thereof„To~R@spectively Increase The "Per Issue".And Annual
.Lobbyist Registration Fees; And Also Amending Appendix "A" Thereto, entitled "Fee Schedule." e
Inquiries maybe directed to the City Clerk's Office at (305) 673-7411.
5:05 p.m. _ `
An` Ordinance Amending Arficle XI, Entitled "Dangerous Intersection Safety," Of Chapter 106, Entitled "Traffic And Vehicles," Of The
Miami Beach City bode, By Amending Section 106 - 490, Entitled "Penalties" To Amend-The Fines For Violations. _
Inquiries may be directed to the City Manager's Office at (305) 673-701'0.- =
6x05 p.rti; ., _ _. :;
An'Ordinanee Amending The Code Of The City Of Miami Beach, By Amending Chapter 406, Entitled-"'Traffic I`Cr~d Vehicles," By
' ArneFldingArticle ll, Entitled "Metered Parking,." By Amending Division 1, Entitled "Generally," By Amending Section 1D6-55;:1=ntitled
"Parking-Rates, Fees, And Penalties;" By. Amending Parking Meter~Rates North Of 23rd Street. - ~ '
Inquiries may. t?e •directed to the Parking Department at,(305) 673-7275..
5:05 p.m.
~An Qrdmance Amending Chapter 110 Of The -Miami Beach City Code, Entitled "Utilities;" Amending. Article 111 Theredf, Entitled -~
`Stormwater Utility," Amending Section 110-109 Thereof Entitled "Stormwater Utility Fees," By Amendmg.Appsndix AThereto
Entitled"`Fee Schedule," To Increase The Stormwater Utility Service Charge Impo§ed By The City As~Of pctober`i,'2009. '`
Inquiries may. be directed to the Public Works Department at'(305) 573-7080. ~ -
5:05-p.m. .. ~ +. ~ ;<n > - _:
An ordinance Amending Chapter 110 Of The Miami Beach City~Code Entitled "Utilities," ~Amentiing Ar`ticle``IV Entitled "Fees, `.
Charges,`Rates And Billing Procedure Thereof;" Amending Division 2 Thereof, Entitled'"Rates, Fees;;~nd Oharges;"'By Amending ;
Section 1 t 0-168'(C) Thereof, Entitled `Sanitary SewerBervice Charge;" To~Provide Addrtional`Sanitary=Sewer.Service Charge-Feed;
And:Also.Amending Appendix A To Chapter 11'0; Entitled "Fee Schedule" To li1"cYa®ase=TheYVater Rate~And'Sar%it~Or'SeVverServ"ite
Charges.lmPosed.By The City Pursuant To Sections 110-i~if (A) And (B), 110-168.(AJ,=And P:i!!ouiding ~uhPnetering F9e In SeCEion
110-1:70(A);:Amending Section 110-170 To Be Entitled "Submeteripg" To Create Rrovisio[~s For Subr~aeters. •
.Inquiries-may be:directed tothe Public WorksDepartrnent~at (305) 673-708Q.
5:05 p.m. _. .- . ~ _, ~_
An Oedinance Amending Chapter 86;Of The Miami Beach .City Code Entitled ,"Sales," By Amending .Article 111 Thereof, Entitled
"Nonprofit Vending And Distribution;'.(3yAmendIng Division 2, Entitled "Permit," By Amending Sectioh:86-174,'Erttitled'"Processing
Fee," To Add A'$50.00 Permit Application. Fee. -
Inquiries may be directed to the. Finance Department at (305) 673-7466.. ~-
5;06 p.m. '
An Ordinance Amending Chapter 102 Of The. City Code, Entitled "Taxation." By Amending Division~V Therein, -Entitled "Local ~
susihess Tax," Amending Section 102-379 Therein, Entitled "Schedule Of Taxes"; Said Amendment Providing For A $45:00 Business
Tax Receipt Application fee. , '
Inquiries may be directed to the Finance Department at (305) 673-7466. ~ -
INTERESTED. PARTIES are invited to appear at this meeting, or be represented by an agent, or to.~sxpress heir .veers do<writing
addressed to the City Commission, c/o the City Clerk, 1700 Convention Center Drive, 1st Floor, C1ty~HaU,_f)Aiami .Beach,.Florida
33139.'Copies of these ordinances are available for public inspection. during°norrnal business hours in the City Clerk's Office,
1700 Conventiorri~enter Drive, 1st Floor, Gity Hall, and' Miami Beach, Florida 33439fihis° meeting maybe :continusd•and.andec such
circumstances additional legal notice would not be provided. - ,
Robert E: Parchsr,~City Clerk
Cityof Miami Beaeh ,
Pursuant to Section 286.0105, Fla. Slat., the City hereby advises the public that: if a person decides to appBal any decision made by
the City Commission with respect to any matter considered:at its meeting or its hearing;'ssWCh~person must•ert~Ce that awerbatirti _
record of the proceedings is made, which record includes the testimony and-evidence upon.which the:appeal is to be-based:"This
notice does not constitute consent by the City for the introduction or admission of otherwise inadmissible°or;irrelevant evidence,
rror does rt authorize challenges or appeals not otherwise allowed by law. .
To request this material in accessible format, sign language interpreters, information on access for pBrSmns~wlth disabiPties,>ara~ll
or any accommodation to review any~document or participate in any city-apertsored proceeding, phase contact (305) 604-24
(voies~, (305)678-7218(TT1~ five days in advance'to inttiate your request.:TTY users may-also call 711 (Ftorida~Retay S~ervic9).
Ad