Loading...
Ordinance 98-3136 • 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 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; ADJUSTING THE SCHEDULE OF RATES FOR THE MINIMUM MONTHLY 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 MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA as follows: SECTION 1: Section Description Amount this Code Article IV, Fees, Charges, Rates and Billing Procedure Division 2. Rates, Fees and Charges 110-166(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 12.60 15.12 1'/2" 11,000 19.80 23.76 • 2" 17,000 30.60 36.72 3" 40,000 72.50 86.40 4" 80,000 14439 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 -I-843 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 All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed.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 3rd day of October , 1998, which is 10 days after its adoption. PASSED and ADOPTED THIS 23rd day of September , 1998. Mayor ATTEST: APPROVED AS TO FORM & LANGUAGE 2OrLIAA1 Gtit-dak & FOR EXECUTION City Clerk 1st reading 9/9/98 4/(0(94/ 6/1i 2nd reading 9/23/98 City Attorney Date 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\KASLYN\BUDGET\SWR-ORD.98A 3ITY OF MIAMI BEACH ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 �i COMMISSION MEMORANDUM NO. I TO: Mayor Neisen O.Kasdin and DATE: September 23, 1998 Members of the City Co mission FROM: Sergio Rodriguez A City Manager A 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 ADMINISTRATION 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 (WASD) 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. ANALYSIS 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 ' l 5 E- . DATE q "D3-9 3 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 of the Lead Services Replacement Program, as mandated by the Environmental Protection Agency(EPA). 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 of a consent decree by the EPA, 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 sewer service charges which are necessary to support the water and sanitary sewer system. SR/CMC/J P/PDW/KM F'.\WORK\$ALL\KASL G DA TEORD.98 attachment T . z a► vi O ii9t U N N t-.'2 3 O " c) en cd 0 cd M Qa A"' .. •'-' — it O N �'' U 69 Cd rte. 00 ••-•� -O � U CO E Q.- : c° = ° �o Q C '; ..s 0 "C cn cn00 . bb N Z O j ; � E 'C 4-1 N., W Saq , , vto N c7 •> wc. b • QU cd OG.1v) U ° on " aW U U a ., ca cu cb.0 O ? +,Jvr-, cd O •—, v ; 0 d W bA bA N 1:1 Q U 5 Q '�C �+ O 'C3 U 'C O H vi y Gu CI, .� � ay 1) . N O O Mc) N ." > •t: ) C...) ,-5, E-+ C7 � Ucns.sE"'lVD