LTC 256-2010 CIP Savingsm MIAMIBEACH
OFFICE OF THE CITY MANAGER
LTC NO. 256-2010
LETTER TO COMMISSION
TO: Mayor Matti H. Bower and Members of the City Commission ~;
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FROM: Jorge M. Gonzalez, City Manager ~ °`
DATE:' September 24, 2010 ~~~ '~ ~~~°
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SUBJECT: CIP Savings `~' ~~ i
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Planning for capital improvements is an ongoing process; as .needs change withinthe qty,
capital programs and priorities must be adjusted. The Capital Improvement Plan' ("CIP")
serves as the primary planning tool for systematically identifying, prioritizing and assigning
funds to critical City capital development, improvements and associated needs. The City's
annual capital budget represents the. first year of that Capital Improvement Plan.
The City's Capital Improvement Plan encompasses a planning horizon of five (5) years and
outlines anticipated annual capital budget needs on a year by year basis during this five (5)
year planning horizon. The adopted FY 2009/10 Capital Budget identified $168,754,362 in
capital needs. '
A component of the Neighborhood Improvement Program is to enhance drainage
infrastructure in various neighborhoods throughout the City of Miami Beach. In order to
'perform drainage infrastructure improvements, capital projects need to be designed and
permitted by the local, state and federal regulatory agencies. These regulatory agency
reviews require permit application review fees as well as permit issuance or permit fees.
The latter are typically identified as the agency is nearing completion of its review and are
requested to be paid prior to permit issuance.
The City is currently actively permitting various projects on a parallel path. Some of these
neighborhood improvement projects are approaching the final stages of the permitting phase
and will require the payment of permit fees. These fees are based upon the value of
proposed storm water infrastructure construction costs as follows:
Table 1
M-DDERM Storm Water Permit Fee Requirements
Estimated Cost of Construction. Permit Fee
$0-$1,000 $330
$1,001-$50,000 $355 plus $55 per $1,000 of estimated cost
in excess of $1,000 °-
Over $50,000 $2,500 plus $35 per $1,000 of estimated
cost in excess. of $50,000
Letter to Commission
"September 24, 2010
Page 2 of 2
The Office of Capital Improvement Projects researched the permit fee requirement in further
detail and identified that the County has the ability to waive the permit fees as per Miami-
Dade County Ordinance 24-48.8 which states:
"The Department may waive fhe permit fee for all work covered under this article and
performed by a federal, State, municipal or other local governmental agency, whether this
work is performed by employees of said agency or by a private firm or corporation under
contract with. the agency."
A request was made on August 9, 2010 (Attachment A) to waive the fee for the Bayshore
Bid Package 8A -Central Bayshore project. This request was not responded to by the
County and the Office of Capital Improvement projects requested a meeting with the
appropriate County .personnel to discuss the City's request.
County officials advised that they will not waive the fee but also recognized that the County
fee requirement for large scale infrastructure projects such as those to be undertaken by the
City of Miami Beach are prohibitive. Therefore, the County was amenable to stipulating a
maximum .permit fee of $28,750 per project as delineated in their electronic correspondence
dated August 17, 2010 (Attachment B).
The efforts of the Ofifice of Capital Improvement Projects yielded the program a
savings approximating $425,000, as follows:
Table 2
M-DDERM Storm Water Permit Fee Savings
M-DDERM Final M-DDERM .Realized
Project Permit Fee Permit Fee Savings
Bayshore BP8A -Central Bayshore $184,252 $28,750 $155,502
Bayshore BP8B-Lower North Bay Rd $59,029 $28,750 $30,279
Bayshore BP8C -Lake Pancoast $29,369 $28,750 $61.9
Bayshore BPBD -Sunset Islands 3 & 4 $87,810 $28,750 $59,060
Bayshore BP8E -Sunset Islands 1 & 2 $57,442 $28,750 $28,692
La Gorce Bid Packages $109,949 ~ $28,750- $81,199
Flamingo Lummis Bid Package 10F $53,250 $28,750 $24,500
Venetian Islands Bid Package 13C $70,588 $28,750 $41,838
Totals $651,689 $230,000 $421,689
The Administration will continue to look for opportunities to decrease our capital costs as we
move projects forward and will consider other approaches to project implementation in an effort to
increase project accountability while decreasing expenditures.
Attachment A -City of Miami Beach Correspondence dated August 9, 2010
Attachment B -Electronic Correspondence from M-DERM dated August 17, 2010
JMG/JGG/COC
F:\cmgr\$ALL\LTC 2010\LTC - Stormwater Permitting Fees Savings 09 24 10.doc
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
OFFICE OF CAPITAL IMPROVEMENT PROJECTS
Tel: 305.673.7071, Fax: 305.673.7073
August 9, 2010
Mr. Matthew Davis
Chief
Department of Environmental
Resources Management
701 NW 1St Court, 6th Floor
Miami, FI. 33136
Dear Mr. Davis:
City of Miami Beach
Right-of-Way Infrastructure
Improvement Program
Bayshore BP 8A -Central
DERM #0000-CLII-PER-0007
Waiver of DERM Class II Permit Fees
Please accept this correspondence as the City's request to the Miami-Dade Department of
Environmental Resources Management (DERM) to waive the permit fee for the referenced
Class II permit as per Miami-Dade County Ordinance Section 24-48.8.
Thank you for your assistance and cooperation concerning this matter
questions please do not hesitate to contact this office.
Sincerely
Charles Carreno,
Director
cc
J. Gomez
G. Escalante
J. Cano
C. Fossler
Job File `
Should you have any
A TT~1 ~°~1~~1oT7°~I
from: Hall, Marie (DERM) [mailto:HaIIM@miamidade.gov]
Sent: Tuesday, August 17; 2010 5:23 PM
To: Fossler, Charles
Subject: RE: Bayshore Neighborhood A permit # 2010-CLII-PER-0007; Neighborhood B permit
# 2010-CLII-PER-0006; La Gorce BP 5 permit # 2009-CLII-PER-00051
Charles,
am confirming as of August_ 10,2010 DERM has capped the class II permit fee for the above
.. reference projects at $28,750.00 per project as we discussed.
Marie K. Hall
Engineer II
Water Control Section -Natural Resources Regulation and Restoration Division
Miami-Dade County Department of
. Environmental Resources Management
701 NW 1 Ct -- Suite 600
Miami, Florida 33136
Phone: 305-372-6438 -Fax: 305-372-6489
hallm(a~miamidade.gov
www.miamidade.gov
From: Fossler, Charles. [mailto;CharlesFossler@miamibeachfl.gov]
Sent: Tuesday, August 17, 2010 5:10 PM
To: Hall, Marie (DERM)
Cc: Dixon, Carla; Cano, Jorge .
Subject: Bayshore Neighborhood A permit # 2010-CLII-PER-0007; .Neighborhood B permit #
2010-CLII-PER-0006; La Gorce BP 5 permit # 2009-CLII-PER-00051
Marie,
We are going to commission for funding for the DERM permits for the CL it `permits for the above
projects. Please confirm that DERM is cappirig the permit fees for these projects at $ 28,750.00
per project as we discussed.
Thanks,
MIAMI~EACH
Charles Fossler
Senior Capital Projects Coordinator
CAPITAL IMPROVEMENTS:PROJECTS OFFICE
` 1700 Convention Center Drive, Miami Beach, FL 33139
Tel.: 305.673.7000 ext. 6431
Fax: 305.673,7073, Efax: 786.394.4586
Cell: 786 412-3105
www.miamibeachfl.gov
We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic
community.
ATTACHMENT B