2002-24761 Reso
RESOLUTION NO. 2002-24761
A RESOLUTION OF THE MAYOR AND CITY COMMISSlpN
OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING
THE ADMINISTRATION AND CITY ATTORNEY'S OFFICE
TO PROCEED WITH THE CREATION OF SPECIAL
ASSESSMENT AREAS, ALSO KNOWN AS SPECIAL
ASSESSMENT DISTRICTS, PURSUANT TO THE
PROVISIONS PROVIDED IN CHAPTER 170 OF THE
FLORIDA STATUTES, FOR THE PURPOSE OF. FUNDING
THE RELOCATION OF OVERHEAD UTILITY LINES
UNDERGROUND, ON EITHER A PORTION OR ALL OF
HIBISCUS ISLAND AND PALM ISLAND AND SUNSET
ISLAND 3 AND SUNSET ISLAND 4, RESPECTIVELY,
PURSUANT TO THE WRITTEN REQUEST OF THE
PROPERTY OWNERS OF THOSE ISLANDS; AND
AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE,
TO MAKE ALL NECESSARY PREPARATIONS TO
IMPLEMENT THIS INTENT.
WHEREAS, in areas of the City, utility lines for services such as telephone,
electricity and cable television exist overhead; and
WHEREAS, certain residential neighborhoods in the City have requested the
relocation of overhead utility lines underground; and
WHEREAS, the City recognizes that such relocations are generally considered an
improvement, which are unique to these certain neighborhoods; and
WHEREAS, the City supports neighborhood initiatives to relocate utilities
underground, but cannot provide direct funding or resources to any such individual effort
not enjoyed or pursued by the City as a whole; and
WHEREAS, the City recognizes its inimitable ability to assist with said initiatives and
to provide a collection mechanism, such as those used with special assessment areas or
districts created pursuant to Chapter 170 of the Florida Statutes, at the request of
individual neighborhoods; and
WHEREAS, the City has received such requests from the Hibiscus Island and Palm
Island and Sunset Islands 3 and 4 neighborhoods, respectively, in the form of petitions, to
consider the establishment of these special assessment areas, also known as special
assessment districts, to provide financing for the relocation of overhead utilities
underground; and
WHEREAS, on January 30, 2002, the Mayor and City Commission referred said
petitions to the Finance and Citywide Projects Committee for consideration; and
WHEREAS, on February 19, 2002, the Finance and Citywide Projects Committee
considered said petitions and recommended that the City Commission declare its intent to
proceed with the creation of the applicable special assessment areas, or districts, pursuant
to Chapter 170, Florida Statutes for the Hibiscus Island and Palm Island and Sunset
Islands 3 and 4 neighborhoods, respectively; and
WHEREAS, the Mayor and City Commission are satisfied that sufficient public
interest is served by the creation of said special assessment areas or districts.
NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and the City
Commission authorize the Administration and City Attorney's Office to proceed with the
creation of special assessment areas, also known as special assessment districts,
pursuant to the provisions provided in Chapter 170 of the Florida Statutes, for the purpose
of funding the relocation of the overhead utility lines underground, on either a portion or all
of Hibiscus Island and Palm Island and Sunset Island 3 and Sunset Island 4, respectively,
pursuant to the written request of the property owners of those islands; and authorize the
City Manager, or designee, to make all necessary preparations to implement this intent.
PASSED AND ADOPTED this 20th day of February 2002.
ATTEST:
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CITY CLERK
APPRCNED M10
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.. FOR EXECUTION
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CI1Y OF MIAMI BEACH
CONMISSION ITEM SUMMARY
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Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, declaring its intent to
create Special Assessment Areas, for the purposes of funding the relocation of overhead utility lines
underground, on either all or a portion of Hibiscus Island, Palm Island, Sunset Island 3 and Sunset Island 4,
and to make all necessary preparations to implement this intent, including, but not limited to, the preparation
of a Preliminary Assessment Roll.
Issue:
Shall the City declare its intent to create Special Assessment Districts for the purposes of funding the
relocation of overhead utility lines underground on either all or a portion of Hibiscus Island, Palm Island,
Sunset Island 3 and Sunset Island 4 and authorize the Administration to make all necessary preparations to
implement this intent.
Item Summary/Recommendation:
The Administration has received written requests from residents in the Hibiscus Island, Palm Island, Sunset
Island 3 and Sunset Island 4 neighborhoods, in the form of petitions, to consider the establishment of Special
Assessment Districts to provide financing for the relocation of overhead utilities underground. On January
30, 2002, the Mayor and City Commission referred these petitions to the Finance and Citywide Projects
Committee for consideration. On February 19, 2002, the Finance and Citywide Projects Committee will
discuss the petitions, the process involved and project details. It is expected that a recommendation will be
made to the City Commission to declare its intent to create the applicable Special Assessment Areas or
Districts, for the Hibiscus Island, Palm Island, and Sunset Islands 3 and 4 neighborhoods.
The Special Assessment District process can range from six months to twelve months and involves a series
of public hearings, public advertisements, and first class direct mailings to affected property owners.
Advisory Board Recommendation:
On February 19, 2002, the Finance and Citywide Projects Committee will discuss the petitions, the process
involved and project details. It is expected that a recommendation will be made to the City Commission to
declare its intent to create the applicable Special Assessment Areas or Districts, for the Hibiscus Island,
Palm Island, and Sunset Islands 3 and 4 neighborhoods.
I
Financiallnfonnation:
Amount to be expended:
D
Finance Dept.
Source of
Funds:
AGENDA ITEM -1?1 t+
DATE 2 -;2.0""OZ
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Date: February 20, 2002
Jorge M. GOnZale~ ~
City Manager () 0
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION
AND CITY ATTORNEY'S OFFICE TO PROCEED WITH THE CREATION
OF SPECIAL ASSESSMENT AREAS, ALSO KNOWN AS SPECIAL
ASSESSMENT DISTRICTS, PURSUANT TO THE PROVISIONS
PROVIDED IN CHAPTER 170 OF THE FLORIDA STATUTES, FOR THE
PURPOSE OF FUNDING THE RELOCATION OF OVERHEAD UTILITY
LINES UNDERGROUND, ON EITHER A PORTION OR ALL OF HIBISCUS
ISLAND AND PALM ISLAND AND SUNSET ISLAND 3 AND SUNSET
ISLAND 4, RESPECTIVELY, PURSUANT TO THE WRITTEN REQUEST
OF THE PROPERTY OWNERS OF THOSE ISLANDS; AND
AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO MAKE ALL
NECESSARY PREPARATIONS TO IMPLEMENT THIS INTENT
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
"
ANALYSIS
The Administration has received written requests from residents in the Hibiscus Island,
Palm Island, Sunset Island 3 and Sunset Island 4 neighborhoods, in the form of petitions,
to consider the establishment of Special Assessment Areas, also known as Districts, to
provide financing for the relocation of overhead utilities underground.
On January 30, 2002, the Mayor and City Commission referred these petitions to the
Finance and Citywide Projects Committee for consideration. On February 19, 2002, the
Finance and Citywide Projects Committee will consider the petitions, the assessment
process and project history. It is expected, that a verbal recommendation will be made to
the City Commission by the Finance Committee to declare its intent to create the applicable
Special Assessment Areas or Districts, for the Hibiscus Island, Palm Island, and Sunset
Islands 3 and 4 neighborhoods.
City Commission Memorandum
February 20, 2002
Special Assessment District
Page 2
Special Assessment Districts are funding mechanisms that provide for benefited property
owners to make direct payment in support of associated neighborhood-specific capital
improvements, such as the current requests to assist with the relocation of utility feeder
systems underground. Since the costs for such relocation can exceed $1,000,000, many
neighborhoods may request the City to utilize this method. Additionally the City may choose
to place the collection of the Special Assessment on the individual property owner's County
ad valorem tax bill. However, the cost of service hook-ups from the feeder system to
individual properties are additional and solely the responsibility of each property owner.
Typically individual homeowners cannot be compelled to "hook-up" to the new underground
system. This means that while the "feeder" system poles and components may be disposed
ofthrough the underQrounding effort, some poles may remain if some property owners elect
to maintain above ground service hook-ups.
The Special Assessment District process can range from six months to twelve months and
involves a series of public hearings, public advertisements, and first class direct mailings to
affected property owners. It is expected that the cost of preparing the required
advertisements, first class mailings, legal documents, etc. will be born by the Special
Assessment District, unless these costs are covered by the neighborhood in advance.
Given the nature of the documents and process involved, the neighborhoods are advised to
hire an attorney experienced with this process to represent its interests. Each
neighborhood will have unique characteristics that will need to be incorporated into official
documents.
If the City Commission adopts the accompanying resolution of intent, each neighborhood
must, as a first step, prepare a Preliminary Assessment Roll. This will be done with the
assistance ofthe City. This roll must be publicly advertised in accordance with FS 170.07. If
the City Commission finds that the Preliminary Assessment Roll is properly prepared and
that a public purpose is gained by its adoption, then the Commission will adopt the roll after
a public hearing. Upon adoption, each assessment district must finalize cost estimates, its
assessment role, and its financial documents.
After completing the public advertising requirements pursuant to FS 170.07, the City
Commission must approve the Final Assessment Roll. Upon approval, the Special
Assessment District is created. At this same time, the City Commission will also approve
any related financial documents.
It is anticipated and recommended that the City will submit the assessment documentation
to the Miami-Dade Property Appraiser to add the collection of the assessment to the tax roll.
This is a public process outlined in FS 197.3632. This collection mechanism is important to
the financing institutions and adds security for the City. Consideration of this collection
process will be coordinated with the Special Assessment District process, but it should be
realized that these are two distinct and separate processes.
City Commission Memorandum
February 20, 2002
Special Assessment District
Page 3
Concurrent with the creation of the Special Assessment District but prior to the creation of
the Final Assessment Roll, the neighborhood must also work closely with Florida Power and
Ught (FPL) Bell South and Charter cable to determine what the costs will be for the
undergrounding effort. First, the neighborhood requests that FPL identifies all existing
utilities since these are usually mounted on FPL utility poles. Once identified, each utility
company must agree to relocate their lines underground.
The neighborhood must then work with FPL to develop engineering design documents.
FPL charges for the design effort upfront, including requiring a nonrefundable engineering
deposit as set forth in Florida Administrative Code 25-6.115. Depending on the number of
residences participating, this deposit can range from approximately $2,500 to $15,000. The
process can take anywhere from 6 to 12 months, depending on the size and complexity of
the project. The cost of design is expected to be paid by the appropriate homeowners
group, who can be credited for the expense from project financing if the project proceeds to
construction.
Once a design is complete the City will contract with FPL and other utilities as needed to
complete construction. This construction is coordinated with any work being undertaken
through the City CIP program.
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