Resolution 2021-31590 RESOLUTION NO. 2021-31590
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, URGING THE FLORIDA
LEGISLATURE TO ENACT HOUSE BILL 387, AMENDING THE
"PROPERTY ASSESSED CLEAN ENERGY" ("PACE") PROGRAM TO
ASSIST PROPERTY OWNERS WITH A FINANCING OPTION UNDER
THE PACE PROGRAM FOR FLOOD MITIGATION AND RESILIENCY
IMPROVEMENTS.
WHEREAS, in 2010, the Florida Legislature adopted provisions in Section 163.08 of the
Florida Statutes that allow local governments to create Property Assessed Clean Energy ("PACE")
programs for residents and businesses that provide financing for energy conservation and efficiency
(e.g., energy-efficient heating, cooling, or ventilation systems), renewable energy (e.g., solar panels),
wind resistance (e.g., impact resistant windows), and other improvements that are not inconsistent
with State law; and
WHEREAS, through the existing PACE program, the State, residents, and businesses are
able to reduce their carbon footprint and energy costs, and local economies are benefitted by the
stimulation of construction and contractor jobs; and
WHEREAS, on January 22, 2021, House Bill 327 ("HB 327") has been filed for consideration
during the Florida Legislature's 2021 session by House Representative Randy Fine; and
WHEREAS, the proposed bill amendments to Section 163.08 Fla. Stat. include the following:
revising legislative intent regarding the types of improvements that qualify for specified financing
under the PACE Program, specifies that a property owner may apply to a PACE program for certain
new important purposes such as flood and water damage mitigation and resiliency improvements, and
provides that costs incurred by the PACE program may be collected as a non-ad valorem
assessment; and
WHEREAS, Miami Beach is a low-lying area, facing flood risk from high tides, storms,
hurricanes, and sea level rise, with 93% of all buildings classified in the FEMA Special Flood Hazard
Area; and
WHEREAS, 64% of all existing buildings in the City were built prior to the first Flood Insurance
Rate Maps ("FIRM") that have progressively required higher elevation building to reduce flood risk;
and
WHEREAS, of the 53 miles of seawalls in Miami Beach, built to protect areas of human
habitation along the coast against tides, waves, and sea level rise, only five miles are publicly owned,
meaning that most of the responsibility for replacing seawalls in disrepair and low elevation, falls on
the private homeowner and additional financing mechanisms are needed; and
WHEREAS, on June 8, 2016, the Mayor and City Commission of the City of Miami Beach
passed and adopted Resolutions No. 2016-29450 and No. 2016-29451, which created a PACE
program and authorized the City to enter into agreements with the Green Corridor Clean Energy
Property Assessed District, and the Florida PACE Funding Agency to implement the program; and
WHEREAS, on July 24, 2020, the Mayor and City Commission passed Resolution No. 2020-
31315 adopting the Unified Regional Sea Level Rise Projection ā 2019 update of the Southeast
Florida Regional Climate Compact, which projects sea level rise impacts of 10 to 17 inches by 2040
and 21 to 54 inches by 2070 creating greater risk of flooding damages to residents; and
WHEREAS, on January 13, 2021, the Mayor and City Commission adopted Ordinance No.
2021-4393 that codifies minimum seawall elevation and establishes overtopping as a trigger for
seawalls upgrades; and
WHEREAS, in addition, the City of Miami Beach, along with Miami-Dade County and Miami, is
implementing Resilient305, a shared strategy to address resilience challenges prioritized through
intergovernmental and community collaboration; and
WHEREAS, resilient housing and financing are key priorities within the strategy, and
expanding the PACE program by enacting HB 387 would benefit property owners that need funding to
prevent and minimize flood damage; and
WHEREAS, while the City Commission has adopted numerous resilient standards for new
construction, the existing building stock including historic districts can greatly benefit from PACE as an
alternative financing mechanism for flood mitigation and resiliency improvements; and
WHEREAS, the State of Florida should expand the PACE program to assist property owners
with raising and reinforcing sea walls and other infrastructure, and improvements that mitigate flood
risk, which may include raising a structure above base flood elevation, repairing or building seawalls,
using flood damage resistant materials and making improvements to mechanical or electrical
systems.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby urge the
Florida Legislature to enact House Bill 387, amending the "Property Assessed Clean Energy"
("PACE") Program to assist property owners with a financing option under the PACE Program for
flood mitigation and resiliency improvements.
PASSED AND ADOPTED this /0 day of February
ATTEST Mayor Dan Gelber
Rafael . Granado, City lerk "E;q
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(Sponsored by Commissioner Mark Samuelian) j i#n
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APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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City Attorney cl Date
Resolutions -C7 W
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Raul J.Aguila, Interim City Manager
DATE: February 10, 2021
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, URGING THE FLORIDA LEGISLATURE TO
ENACT HOUSE BILL 387, AMENDING THE "PROPERTY ASSESSED
CLEAN ENERGY" ("PACE") PROGRAM TO ASSIST PROPERTY OWNERS
WITH A FINANCING OPTION UNDER THE PACE PROGRAM FOR FLOOD
MITIGATION AND RESILIENCY IMPROVEMENTS.
RECOMMENDATION
The Administration recommends the adoption of the Resolution.
BACKGROUND/HISTORY
In 2010, the Florida Legislature adopted provisions in Section 163.08 of the Florida Statutes
that allow local governments to create Property Assessed Clean Energy("PACE") programs for
residents and businesses that provide financing for energy conservation and efficiency (e.g.,
energy-efficient heating, cooling, or ventilation systems), renewable energy (e.g., solar panels),
wind resistance (e.g., impact resistant windows), and other improvements that are consistent
with State law. PACE is a financing platform which eliminates the barrier of high upfront costs by
allowing property owners to pay off these improvements through an assessment on their
property tax bill.
The City of Miami Beach participates in the PACE program, allowing property owners to access
PACE financing and the savings from reduced energy use. Through the existing PACE
program, the State, residents, and businesses are able to reduce their carbon footprint and
energy costs, and local economies are benefitted by the stimulation of construction and
contractor jobs. While PACE can be a beneficial financing option, the current program does not
allow improvements that reduce flood risk.
Expanding PACE is also a priority of the City's unique partnership with Miami-Dade County and
the City of Miami. Resilient305, the shared strategy to address resilience challenges prioritized
through intergovernmental and community collaboration, contains actions for resilient housing
and funding.
ANALYSIS
The combination of the City of Miami Beach's low geographic elevation with projections for sea
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level rise underscore the vulnerability of our valuable housing stock, much of which was built
prior to the first Flood Insurance Rate Maps (FIRMS) and accompanying regulations that over
time have progressively required higher elevation of the first finished floor of buildings. The City
Commission has adopted numerous resilience standards for new construction, however the
existing older building stock, including historic districts, can greatly benefit from PACE as an
alternative financing mechanism for flood mitigation and resiliency improvements.
The City faces flood risk from high tides, storms, hurricanes, and sea level rise, with 93% of all
buildings located in the FEMA Special Flood Hazard Area. This risk is expected to increase
over time due to sea level rise and the severity of storms. On July 24, 2020, the Mayor and City
Commission passed Resolution No. 2020-31315 adopting the Unified Regional Sea Level
Rise Projection -- 2019 update of the Southeast Florida Regional Climate Compact, which
projects sea level rise impacts of 10 to 17 inches by 2040, and 21 to 54 inches by 2070.
Investment in resilience makes economic sense as well, with multiple studies demonstrating
strong benefits. The City's commitment to activities that help reduce flood risk have resulted in
improved FEMA Community Rating System (CRS) results, resulting in 25% flood insurance
premium insurance savings for the community, approximately $8.2 million annually. The
Southeast Florida Regional Climate Change Compact, along with local business and nonprofit
communities, partnered with the Urban Land Institute (ULI) to comprehensively assess the
economic impact of investment in resilience in southeast Florida. The study found that climate
adaptation measures are predicted to offer a significant return on investment, protecting
communities, jobs, and properties. Lack of adaptation investment and infrastructure now will
have major consequences for the future economic well-being of the region. According to the
study, building-specific adaptations have 5:1 return. In a different methodology, Miami Beach's
Business Case Analysis of the Stomiwater Program, presented to City Commission on January
27, 2020, highlighted that every dollar invested by private property owners would return nearly
$3 in benefits in the pilot study area.
SUPPORTING SURVEY DATA
From the overall community perspective, the 2019 Community Satisfaction Survey shows that
43% of residents are satisfied, 33% neutral, and 24% dissatisfied with their buildings'flood risk
protections. In addition, "efforts to manage stormwater drainage and flooding" was ranked in the top
3 priorities for the City.
CONCLUSION
The City of Miami Beach supports the enactment of House Bill 327 filed for consideration
during the Florida Legislature's 2021 session, which expands the PACE program to assist
property owners with raising and reinforcing sea walls and other infrastructure, and
improvements that mitigate flood risk, which may include raising a structure above base flood
elevation, repairing or building seawalls, using flood damage resistant materials and making
improvements to mechanical or electrical systems. Additionally, expanding PACE to assist
property owners with retrofitting their property to protect it from flooding is included in the City's
State Legislative Priorities.
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O.
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to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Strategic Connection
Environment & Infrastructure - Reduce risk from storms, high tides, groundwater, and sea level
rise.
Legislative Tracking
Office of the City Manager
Sponsor
Commissioner Mark Samuelian & Co-sponsored by Commissioner Micky Steinberg
ATTACHMENTS:
Description
ā Resolution
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