98-3136 ORD
ORDINANCE NO. 98-3136
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
SUPPL Y SERVICE CHARGE IMPOSED BY THE CITY
FROM ONE DOLLAR AND EIGHTY CENTS ($1.80) PER
THOUSAND GALLONS, TO TWO DOLLARS AND SIXTEEN
CENTS ($2.16) PER THOUSAND GALLONS; ADJUSTING
THE SCHEDULE OF RATES FOR THE MINIMUM
MONTHL Y WATER SERVICE CHARGE; AND INCREASING
THE SANITARY SEWER SERVICE CHARGE IMPOSED BY
THE CITY FROM THREE DOLLARS AND FORTY THREE
CENTS ($3.43) PER THOUSAND GALLONS, TO THREE
DOLLARS AND SIXTY FIVE CENTS ($3.65) PER
THOUSAND GALLONS; PROVIDING FOR A REPEALER,
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, the City has implemented a Water and Sanitary Sewer System Improvement
Program (Program), which is funded by Water and Sewer Revenue Bonds; and
WHEREAS, the rate increase provided herein includes payment for the Series 1995 Water
and Sewer Revenue Bonds and debt service reserve for future bonds to continue the Program; and
WHEREAS, the rate increase provided herein includes funding for additional costs for
operation and maintenance of the City's water and sanitary sewer systems; and
WHEREAS, the rate increase provided herein also includes payment of the Department of
Environmental Resources Management fee.
NOW, THEREFORE, BE IT ORDAINED BY THE MA YOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA as follows:
SECTION 1:
Section
this Code
Description
Amount
Article IV, Fees, Charges, Rates and Billing Procedure
Division 2. Rates. Fees and Charges
11 0-166( a) Minimum Service Charge:
Size of Gallons of Minimum
Service Water per Monthly
Pipe Month Service Charge
3/4" 5,000 $9:00 10.80
1" 7,000 H:6B 15.12
1 Yz" 11,000 +9:8B 23.76
2" 17,000 *6B 36.72
3" 40,000 tt5B 86.40
4" 80,000 144.50 172.80
6" 120,000 216.00 259.20
8" 200,000 360.00 432.00
110-166(b) Water in excess of subsection 110-166(a), per 1,000 gallons. . . . . +:-89 2.16
110-168(a) Sanitary sewer service charge, per 1,000 gallons ..............3-:43- 3.65
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby
repealed.
SECTION 3. 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 constitutionality
of the remaining portions of this Ordinance.
SECTION 4. EFFECTIVE DATE.
This Ordinance shall take effect on the ~ day of
10 days after its adoption.
October
, 1998, which is
PASSED and ADOPTED THIS
23rd
day of
September
, 1998.
1I1lr
Mayor
ATTEST:
_~6 ?ctl~
City Clerk
1st reading 9/9/98
2nd reading 9/23/98
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
1J( jff!aJi.::- f;)( /1{
e:f}' Attorney , Dafe
Letters or numbers that are stricken through are deletions from existing ordinance.
Letters or numbers that are underlined are additions to existing ordinance.
F:\ WORK\$ALL\KASL YN\BUDGETlSWR-ORD. 98A
ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
~ITY OF MIAMI BEACH
-CO
COMMISSION MEMORANDUM NO. ~ 3~ - J 0
TO:
Mayor Neisen O. Kasdin and
Members of the City Co mission
DATE: September 23,1998
FROM:
Sergio Rodriguez
City Manager
",
SUBJECT:
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 FROM ONE
DOLLAR AND EIGHTY CENTS ($1.80) PER THOUSAND GALLONS TO
TWO DOLLARS AND SIXTEEN CENTS ($2.16) PER THOUSAND
GALLONS AND ADJUST THE SCHEDULE OF RATES FOR THE
MINIMUM MONTHLY WATER SERVICE CHARGE; AND TO INCREASE
THE SANITARY SEWER SERVICE CHARGE IMPOSED BY THE CITY
FROM THREE DOLLARS AND FORTY THREE CENTS ($3.43) PER
THOUSAND GALLONS TO THREE DOLLARS AND SIXTY FIVE CENTS
($3.65) PER THOUSAND GALLONS; PROVIDING FOR A REPEALER,
SEVERABILITY AND AN EFFECTIVE DATE
ADMINISTRA TION RECOMMENDATION
Adopt the Ordinance.
BACKGROUND
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 (W ASD) for the purchase of
potable water and treatment of sewage; debt service for the Series 1995 water and sewer revenue
bonds and future bonds; operating and maintenance costs for the water and sewer utility; and a 7.5
percent fee paid to the Miami-Dade County Environmental Resource Management Department
(DERM). The monthly minimum service charge for water is based on the meter size and
corresponding gallons previously established by Code and will increase to reflect the proposed rate.
This item was presented at the September 3, 1998 meeting of the Finance and Citywide Projects
Committee. The Ordinance was adopted on first reading by the City Commission on September 9,
1998.
AN AL YSIS
On May 17, 1995, the City Commission adopted Resolution 95-21585 authorizing the issuance of
the Series 1995, Water and Sewer Revenue Bonds. In accordance with Article V, Section 501 of the
Bond Resolution, entitled Rate Covenant, the City agreed to charge rates for the use of the water and
AGENDA ITEM
R5E-
q -J3-9 g
DATE
Commission Memorandum - September 23, 1998
Ordinance - Sanitary Sewer/Water Supply Service Charges
Page 2
sewer system, and to periodically adjust rates as necessary, so that the net revenues of the fund for
each fiscal year would be sufficient to provide for 110 percent of the annual principal and interest
requirements of the outstanding bonds (Debt Coverage).
In support of the bond issue, the City commissioned a Water and Sewer Rates Feasibility Study
which projected rates for water and sewer for the fiscal years ending September 30, 1996 through
2000. In accordance with this study, the projected rates to be charged in fiscal 1998/99 are $2.16
for water and $4.72 for sewer.
There was an operating loss (operating revenues less operating expenses) in the Water and Sewer
Enterprise Fund for the year ended September 30, 1997 of approximately $1.6 million. This means
that revenues from rates, charges, transfers and interest, which produced $33.9 million
approximately, were not sufficient to cover the system's operating costs and the interest portion of
annual debt service of approximately $35.5 million.
The proposed rates for water and sewer services are to support the FY 1998/99 operating budget for
the Water and Sewer Enterprise Fund which was tentatively adopted by the City Commission on
September 10, 1998.
The proposed water supply rate to be charged by the City for fiscal year 1998/99 is $2.16 per
thousand gallons. The proposed rate of$2.16 is an increase of$0.36 over the current rate of$1.80
and is the recommended rate contained in the rate study prepared to support the bond issue. The
components of the water supply charge are: $0.77 for the purchase of water from WASD; $0.14
DERM fee; $0.27 for debt service for bonds; and $0.98 for operating and maintaining the system.
The increase in the average monthly customer bill, based on the proposed rate is $2.70.
The operating budget for the Water Division includes continuation ofthe Lead Services Replacement
Program, as mandated by the Environmental Protection Agency (EP A).
The proposed sewer rate to be charged by the City for fiscal year 1998/99 is $3.65 per thousand
gallons. The proposed rate of $3.65 is an increase of $0.22 over the current rate of $3.43 and is
$1. 07 or 23 percent below the recommended rate of $4.72 contained in the rate study prepared to
support the bond issue. The components of this charge are: $1.66 for sewage treatment; $0.26
DERM fee; $0.57 for debt service for bonds; and $1.16 for operating and maintaining the system.
The increase in the average monthly customer bill, based on the proposed rate is $1.65.
The City's Sanitary Sewer Infiltration and Inflow Mitigation Program continues and current flows
indicate a reduction of 4 to 5 million gallons per day of infiltration. This program is necessary to
comply with the Miami-Dade County Ordinance No. 96-166, adopted as a result ofa consent decree
by the EP A, which requires volume sewer customers to evaluate their sanitary sewer systems and
implement improvements to reduce infiltration and inflow.
CONCLUSION
The City Commission should adopt the attached ordinance in order to increase the water supply and
sanitary se'f'er service charges which are necessary to support the water and sanitary sewer system.
SR/CMC/JA--lP;;DW /KM
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