Ordinance 99-3208 ORDINANCE NO. 99-3208
AN ORDINANCE OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, AMENDING MIAMI BEACH CITY CODE
CHAPTER 90,ENTITLED"SOLID WASTE"BY AMENDING
SECTION 133 ENTITLED"SINGLE UTILITY BILLING",BY
EXCLUDING RESIDENTIAL COOPERATIVE APARTMENT
UNITS FROM THE DEFINITION OF COMMERCIAL UNITS
SUBJECT TO THE SANITATION COMMERCIAL IMPACT
FEE, RETROACTIVE TO SEPTEMBER 19, 1998;
PROVIDING FOR CODIFICATION AND SEVERABILITY;
REPEALING ALL ORDINANCES IN CONFLICT
THEREWITH; AND PROVIDING AN EFFECTIVE DATE.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA:
SECTION 1. AMENDMENT OF CHAPTER 90 ENTITLED "SOLID WASTE"
That Section 90-133 of the Code of the City of Miami Beach is hereby amended to read as follows:
SECTION 90-133. SINGLE UTILITY BILLING
***
The City Finance Director may direct the Utility Billing Division to issue one itemized water and
sewer bill, where practicable, for all water meters billed to a given Owner or consumer on a given
parcel of property or properties. In addition, she may direct, where practicable, that the appropriate
charges for Garbage and Waste Fees be included on any bill rendered for water and sewer charges.
A Sanitation Commercial Impact Fee shall be charged monthly on each commercial business account
and included on any bill rendered for water and sewer charges. This fee would be based on each
commercial business' Equivalent Commercial Unit (ECU), as shown on the fee schedule, set forth
below. The terms"Commercial Business Account"and"Commercial Units"shall exclude from their
definitions residential town house and duplex units, -ate condominium units and residential
cooperative apartment units.
Number of Equivalent Monthly
Commercial Units (ECU) Charge
From 0 to 25 $16
From 26 to 50 $24
From 51 to 75 $30
From 76 to 100 $40
From 101 and above $50
The combined bills are subject to all provisions as set forth in Chapters 90 and 110 of this Code.
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 in conflict herewith be and the same are hereby repealed.
SECTION 4 SEVERABILITY
If any section, sentence, clause or phrase of this Ordinance is held to be invalid or unconstitutional
by any court or competent jurisdiction, then said holding shall in no way affect the validity of the
remaining portion of this Ordinance.
SECTION 9. EFFECTIVE DATE
This Ordinance shall take effect ten (10) days after its adoption on the 2nd day of
October , 1999 and shall be retroactive in effect to September 19, 1998.
PASSED and ADOPTED this 22nd day of September , 1999.
ATTEST:
'AA MAYOR
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CITY CLERK
APPROVED AS TO
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& FOR EXECUTION
F:\ATTO\DUBM\ORDINANC\SANITATI.FEE
1st reading 7/21/99
2nd reading 9/22/99 /I 4 /, •(/� (/99
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH,FLORIDA 33139
http:\\ci.m iami-beach.fi.us
COMMISSION MEMORANDUM NO. b34.' / /
TO: Mayor Neisen O. Kasdin and DATE: September 22, 1999
Members of the City C mission
FROM: Sergio Rodriguez
City Manager J
SUBJECT: SECOND '/ !PING - AN ORDINANCE OF THE MAYOR AND CITY
COMMIS ION OF THE CITY OF MIAMI BEACH,FLORIDA,AMENDING
MIAMI BEACH CITY CODE CHAPTER 90,ENTITLED "SOLID WASTE"
BY AMENDING SECTION 133 ENTITLED "SINGLE UTILITY BILLING",
BY EXCLUDING RESIDENTIAL CO-OP UNITS FROM THE DEFINITION
OF COMMERCIAL UNITS SUBJECT TO THE SANITATION
COMMERCIAL IMPACT FEE; PROVIDING FOR CODIFICATION AND
SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT
THEREWITH; AND PROVIDING AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Reject the Ordinance.
BACKGROUND
This Ordinance was approved on first reading at the July 21, 1999 City Commission Meeting and
a public hearing was scheduled for September 1,4, 1999.
The Sanitation Department has a FY 98/99 budget of $4.7 million dollars and operates as an
Enterprise Fund. It has had an accumulated deficit of over$600,000 through FY 97/98.
In an effort to reduce this deficit, the Sanitation Department proposed several fee increases which
the City Commission did not support. In 1998, a Sanitation Impact Fee for commercial properties
(a flat fee of$12 per month per commercial establishment)was rejected by the Finance and Citywide
Projects Committee as being too broad and unreasonable. Even though the Finance and Citywide
Projects Committee rejected the fee, it recognized that a Sanitation Commercial Impact Fee would
help offset the enormous costs associated with the removal and disposal of garbage/debris generated
by establishments serviced by private waste haulers.
Agenda Item 6 L.
Date ci-oZ a -9 9
240
At the May 28, 1998,Finance and Citywide Projects Committee meeting,the Sanitation Department
presented a number of proposals for review and consideration. At this meeting, the Sanitation
Department was instructed to resubmit the one proposal that would be most reasonable and equitable
for those establishments serviced by private haulers,while providing an adequate amount of revenue
to correct the deficit and improve the level of service for the cleanliness of our City.
The Sanitation Department returned to the Finance and Citywide Projects Committee on July 6,
1998, seeking approval of a Sanitation Commercial Impact Fee based on Equivalent Commercial
Units (ECU's). The Committee members discussed the benefits of imposing the fee so that the
individual small business owners(0-25 ECU's)would not bear the brunt of the impact fee ($16 per
month), and the larger establishments(101-up ECU's)would share in the expense($50 per month).
Examples of costs to different sized businesses and condominiums were given and photos showing
the conditions of streets surrounding establishments serviced by private waste haulers were .
submitted to substantiate the need for the Sanitation Impact Fee. The Committee approved the
impact fee and directed that it be brought to the City Commission for adoption.
The Sanitation Commercial Impact Fee,Ordinance No.98-3135,was adopted on September 9, 1998.
It was estimated that the passage of this ordinance would generate approximately$941,328 annually
in additional funds to offset the cost of Sanitation services and help decrease the amount of the
deficit under which the Sanitation Department operates. The recalculation of the Impact Fee for this
ordinance revealed that the fees generated by the approved Sanitation Impact Fee is $873,360.
On March 17, 1999, Ordinance No. 99-3177 was adopted excluding residential townhouses,
duplexes and condominium units. The adoption of this ordinance would result in an estimated
annual revenue loss of$180,216. Subsequently,the Sanitation Department presented to the Finance
&Citywide Projects Committee several options for additional revenue to offset the revenue lost due
to the exemptions.
A request was presented at the May 12, 1999 Commission Meeting to extend the exemption from
the fee to residential Co-op units.
ANALYSIS
The purpose of the Sanitation Commercial Impact Fee is to provide additional revenue to the
Sanitation Department to provide adequate levels of service without operating at a deficit.
Twenty-Five percent of the City's Sanitation Departmental budget is generated by residential solid
waste collection(Onyx) ($1,032,194). Locations serviced by private waste haulers (four franchises)
account for$176,837 in revenue to the Sanitation Enterprise Fund.
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Residential Solid Waste (Onyx)
City of Miami Beach residential solid waste is collected by Onyx Florida, LLC through a service
agreement pursuant to RFP No. 53-97/99. The residents of Miami Beach served by Onyx Florida,
LLC are invoiced monthly by the City's Utility Billing section of the Finance Department as shown
on the following scale:
Single Family & Townhouses $27.11/monthly $325.32/annually
Multi-Family $22.41/monthly (per unit) $268.92/annually (per unit)
(8 units or less)
Onyx Florida,LLC invoices the City of Miami Beach for collection services pursuant to their service
agreement on a monthly basis as follows:
Single Family & Townhouses $11.61/monthly $139.32/annually
Multi-Family $10.44/monthly (per unit) $125.28/annually (per unit)
(8 units or less)
The following chart shows a breakdown of the City's fees versus its collections:
Annual Single- Annual Multi- Total Annual
Family Family (8 units
or less)
# of Units 5293 1107
Residential Collection Fees $1,721,919 $ 297,694 $2,019,613
Recycling Grant Allocation* $ 53,584 $ 10,975 $ 64,559
Less: $ City pays for
Recycling Fees $ 145,452 $ 30,420 $ 175,872
Less: $ City pays to Onyx $ 737,421 $ 138,685 $ 876,106
Balance credited to $ 892,630 $ 139,564 $1,032,194
Sanitation's Operating
Budget
(*This amount varies annually and continually decreases,therefore the net amount credited to the
Sanitation Operating Budget will also decrease.)
City residents on City waste service (serviced by Onyx Fl., LLC) contribute approximately
$1,032,194 annually to the Sanitation Enterprise Fund,which is used to pay for street cleaning City-
wide.
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Private Waste Haulers (Franchisees)
All locations on Miami Beach serviced by private waste haulers contribute to the Sanitation
Department's annual operational budget via their payments to the haulers. Each of the four private
haulers on Miami Beach have signed a franchise agreement with the City which states that the hauler
must pay to the City twelve percent of what they collect from their Miami Beach customers monthly.
This twelve percent is reported and paid to the City in the form of franchise fees on a monthly basis.
While the City receives twelve percent,only two percent is credited to the Sanitation Enterprise fund
for use in its annual operational budget. The following chart shows the breakdown in revenue
received annually:
Private Hauler ''Annual Annual 10% to Annual 2% to
Contribution General Fund Sanitation
12% to City
Browning-Ferris $ 261,660 $ 218,050 $ 43,610
Industries
Davis Sanitation $ 62,832 $ 52,360 $ 10,472
Imperial Sanitation $ 15,576 $ 12,980 $ 2,596
Service
Waste Management $ 720,954 $ 600,795 $ 120,159
Total Revenue $1,061,022 $ 884,185 $ 176,837
(Franchise Fee)
Accounts serviced by private waste haulers are contributing approximately$884,185 annually to the
General Fund and $176,837 annually to the Sanitation Department's annual operating budget for
street cleaning.
Summary
Adoption of this Ordinance, exempting the thirty-seven (37) Co-op accounts, will decrease the
amount of revenue the Sanitation Department will receive in its operational budget by approximately
$8,280 annually. The accounts serviced by private waste haulers will make a lower contribution to
the City. This amount is not comparable, on a per unit basis, to the amount paid by City residential
accounts. The following chart shows this comparison:
Type of Account Number of Annual Contribution Annual Contribution to
Units to City's Revenues City's Revenue Per Unit
City Residential 6,400 $1,032,194 $ 161.28
Accounts
Private Hauler 49,662 $1,061,022 $ 21.36
Accounts
Furthermore, the accounts serviced by private waste haulers are in areas that have a tremendous
243
amount of daily maintenance that must be performed. With an increasing number of visitors
(tourists and locals), and daily media attention, it is in the City's best interest that all areas are kept
clean. All accounts,whether serviced by the City or a private waste hauler, should contribute to the
Sanitation Department's budget as the entire community utilizes solid waste services.
The Administration recommends that co-ops not be exempted as part of the Sanitation Impact Fee.
Removing co-ops from the Impact Fee would further reduce the revenue by approximately $8,280,
expanding the existing deficit. Though co-op units are minimally impacted by the current Impact
Fee,they contribute to the City's waste hauling demands. They should financially participate in the
Sanitation Department's funding, along with single family homeowners who are funding a
disproportionate share of this needed City service. It should be noted that members of the Budget
Advisory Committee,at their meeting on August 10, 1999, unanimously approved urging the City
Commission to retain the Sanitation Impact fees for co-ops and re-instate the fees for condos.
If this Ordinance is approved, without increasing other funding sources, it would further add to
Sanitation Enterprise Fund deficit and would necessitate a reduction in services and the elimination
of personnel within the Sanitation Department. Clearly,greater levels of staffing are sought to meet
the demands of our increasingly busy City and the reduction of existing staff is not recommended.
CONCLUSION
Reject the Ordinance.
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