2008-3614 OrdinanceORDINANCE NO. 2008-3614
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF
THE MIAMI BEACH CITY CODE ENTITLED "UTILITIES," AMENDING
ARTICLE IV, ENTITLED "FEES, CHARGES, RATES AND BILLING
PROCEDURE THEREOF;" AMENDING DIVISION 2 THEREOF,
ENTITLED "RATES, FEES AND CHARGES;" AMENDING SECTION
110-168 (b) THEREOF, ENTITLED "SANITARY SEWER SERVICE
CHARGE," TO PROVIDE ADDITIONAL WATER METER FEES; AND
ALSO AMENDING APPENDIX A, (ENTITLED "FEE SCHEDULE") TO
INCREASE THE SANITARY SEWER SERVICE CHARGE IMPOSED BY
THE CITY, PURSUANT TO SECTIONS 110-166 (a) AND (b), AND 110-
168 (b); PROVIDING FOR CODIFICATION, REPEALER,
SEVERABILITY, AND AN EFFECTIVE DATE.
WHEREAS, the City implemented a Water and Sewer System Improvement Program
(Program), which is funded by Water and Sewer Revenue Bonds: and
WHEREAS, in 1995, the first series of Water and Sewer Revenue Bonds were issued
to construct Phase I improvements for the Program; and
WHEREAS, in 2000, the Series 2000 Water and Sewer Revenue Bonds were issued
to continue the Program; and
WHEREAS, the rate increases proposed herein are for the payment of the phased in
debt instruments to continue improvements to the water and sewer infrastructure; and
WHEREAS, the rate increases provided herein include the increases for water supply
imposed by Miami-Dade County; and
WHEREAS, with ongoing drought restrictions, the City anticipates a continuation of its
decrease in water consumption and its corresponding decrease in water and sewer revenues;
and
WHEREAS, existing fees are being revised to reflect operational expenses for water
main tapping services; and
WHEREAS, the existing fee for sewer service disconnect is being increased to reflect
actual costs being incurred by the City.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
SECTION 1.
That Chapter 110, Article IV, Division 2, Section 110-168 (b) of the Miami Beach City
Code is hereby amended as follows:
Chapter 110.
Utilities
Article IV, Fees, Charges, Rates and Billing Procedure
Division 2. Rates, Fees and Charges
Sec. 110-168. Sanitary Sewer Charge..
The /~~~c /~,y~er m•+~i filo /heftuoQ,~ rl n~~her 1 ~nr! Con~omhor 4!1 .,f conh ~io.+r\ .+n
T~GO~TtG1TT CTtTGGTI~LVVG
f
f
. For the purpose of irrigation, the customer may
apply for an irrigation meter. Sanitary sewer charges wilt be not applied to consumption metered
through irrigation meters.
SECTION 2.
That Appendix A to Section 110, entitled "Fee Schedule," of the Miami Beach City
Code is hereby amended as follows:
Appendix A
Fee Schedule
110-166(a) Minimum service charge:
Size of Gallons of Minimum Monthly Service Charge
Meter Water (effective for billings on or after October 1, 2000)
per Month
3/4" 5,000 $11.05
1" 7,000 15.47
1.5" 11,000 24.31
2" 17,000 37.57
3" 40,000 88.40
4" 80,000 176.80
6" 120,000 265.20
8" 200,000 442.00
Size of Gallons of Minimum Monthly Service Charge
Meter Water (effective for billings on or after October 1, 2001)
per Month
3/4" 5,000 $11.30
1 " 7,000 15.82
1.5" 11,000 24.86
2" 17,000 38.42
3" 40,000 90.40
4" 80,000 180.80
6" 120,000 271.20
8" 200,000 452.00
Size of Gallons of
Water Minimum Monthly Service Charge
Meter
per Month (effective for billings on or after October 1, 2002)
3/4" 5,000 $11.55
1" 7,000 16.17
1.5" 11,000 25.41
2" 17,000 39.27
3" 40,000 92.40
4" 80, 000 184.80
6" 120,000 277.20
8" 200,000 462.00
Size of Gallons of Minimum Monthly Service Charge
Meter Water (effective for billings on or after October 1, 2003)
per Month
3/4" 5,000 $11.88
1 " 7,000 16.60
1.5" 11,000 26.04
2" 17,000 40.20
3" 40,000 94.48
4" 80,000 188.88
6" 120,000 283.28
8" 200,000 472.08
Size of Gallons of Minimum Monthly Service Charge
Meter Water (effective for billings on or after October 1, 2004)
per Month
3/<" 5, 000 $12.13
1 " 7, 000 16.95
1.5" 11,000 26.59
2" 17,000 41.05
3" 40,000 96.48
4" 80,000 192.88
6" 120, 000 289.28
8" 200,000 482.08
Size of Gallons of
Water Minimum Monthly Service Charge
Meter
per Month (effective for billings on or after October 1, 2005)
3/4" 5,000 $12.38
1 " 7, 000 17.30
1.5" 11,000 27.14
2" 17,000 41.90
3" 40,000 98.48
4" 80, 000 196.88
6" 120,000 295.28
8" 200, 000 492.08
Size of Gallons of Minimum Monthly Service Charge
Meter Water (effective for billings on or after October 1, 2006)
per Month
3/4" 5,000 $13.95
1" 7,000 19.53
1.5" 11,000 30.69
2" 17,000 47.43
3" 40,000 111.60
4" 80,000 223.20
6" 120,000 334.80
8" 200,000 558.00
Size of Gallons of Minimum Monthly Service Charge
Meter Water (effective for billings on or after October 1, 2007)
per Month
3/4" 5, 000 $16.15
1 " 7, 000 22.61
1.5" 11,000 35.53
2" 17,000 54.91
3" 40,000 129.20
4" 80,000 258.40
6" 120,000 387.60
8" 200,000 646.00
Size of Gallons of Minimum Monthly Service Charge
Meter Water (effective for billings on or after October 1, 2008)
per Month
3/4" 5, 000 19.40
1 " 7, 000 27.16
1.5" 11,000 42.68
2" 17,000 65.96
3" 40,000 155.20
4" 80,000 310.40
6" 120, 000 465.60
8" 200, 000 776.00
Description Amount
Section
this Code
Water in excess of subsection 110-166(a), shall be as follows: $2.21
per 1,000 gallons, effective with billings on or after October 1, 2000;
$2.26 per 1,000 gallons, effective with billings on or after October 1,
2001; $2.31 per 1,000 gallons, effective with billings on or after
October 1, 2002; $2.44 per 1,000 gallons, effective with billings on or
110-166(b) after October 1, 2003; $2.49 per 1,000 gallons, effective with billings
on or after October 1, 2004; and $2.54 per 1,000 gallons, effective
with billings on or after October 1, 2005; and $2.79 per 1,000 gallons,
effective with billings on or after October 1, 2006; and $3.23 per 1,000
gallons, effective with billings on or after October 1, 2007; and 3.88
per 1,000 gallons, effective with billings on or after October 1, 2008.
110-168(a) Sanitary sewer service charge, shall be as follows: $3.73 per 1,000
gallons, effective with billings on or after October 1, 2000; $3.81 per
1,000 gallons, effective with billings on or after October 1, 2001; $3.90
per 1,000 gallons, effective with billings on or after October 1, 2002;
$4.03 per 1,000 gallons, effective with billings on or after October 1,
2003; $4.12 per 1,000 gallons, effective with billings on or after
October 1, 2004; and $4.21 per 1,000 gallons, effective with billings on
or after October 1, 2005; and $4.25 per 1,000 gallons, effective with
billings on or after October 1, 2006; and $4.93 per 1,000 gallons,
effective with billings on or after October 1, 2007; and $5.62 per 1,000
aallons, effective with billings on or after October 1, 2008.
110-166(d) Tapping fee, per size of tap in inches
3/4" 489 4,726
1" 699 4,665
1.5" 849 5,106
2" ~~99 5,116
3" '~,'-9 5,627
4" 4~9 6,189
6" X89 6,808
0
SECTION 3. 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
re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section",
"article" or other appropriate word.
SECTION 4. REPEALER
All ordinances or parts of ordinances in conflict herewith are and the same are hereby
repealed.
SECTION 5. 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 constitutional, 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 6. EFFECTIVE DATE
This Ordinance shall take effect on the 1St day of October, 2008.
PASSED and ADOPTED this 17th day of September , 2008
ATTEST:
M YO
k Matti Herrera Bower
CITY CLERK APPROVED AS TO
Robert Parcher FORM & LANGUAGE
T:IAGENDA\20081September 17\FY09 Water and Sewer Rate Ordinance2ndRdg.doc
& F CUTION
f ~ ~ tz Ofd
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COMMISSION ITEM SUMMARY
Condensed Title:
An Ordinance Amending Chapter 110 of the Miami Beach City Code entitled "Utilities," amending Article IV, entitled
"Fees, Charges, Rates and Billing Procedure Thereof," Amending Division 2 Thereof Entitled "Rates, Fees and
Charges;" Deleting Section 110-168 (b) entitled "Sanitary Sewer Charge," To Provide Additional Water Meter Fees;
and also amending Appendix A, (Entitled "Fee Schedule,"); Providing for Codification, Severability, and an Effective
Key Intended Outcome Supported:
Ensure well maintained infrastructure.
Supporting Data (Surveys, Environmental Scan, etc.): In the 2007 Community Satisfaction Survey, 84% of
residents and 86% of businesses rated the recently completed capital projects as excellent or good.
Issue:
Shall the Ma or and Cit Commission a rove the amendment to the Ordinance on second readin ublic hearin ?
item Summaryircecommenaation:
SECOND READING PUBLIC HEARING
The Ordinance amendment was approved on first reading at the Commission Budget Hearing of September 8, 2008.
The City's utility rates are structured to collect the necessary revenues to meet operating and maintenance costs of the
water and sewer infrastructure, to cover debt service for water and sewer bonds; to maintain adequate operating fund
reserves, and to pay the County for wholesale water purchased, the treatment of the City's sewage and other fees.
In regards to water consumption, our projections are that water consumption levels would continue to be somewhat
below budgeted amounts and prior year levels, yet these decreases will be offset by decreased system water losses and
operational savings. The first component of the water and sewer rates is the Miami-Dade Water and Sewer Department
(WASD) pass through rate. WASD proposed water rate for FY2008/09 is $1.4649, an increase of $0.3649 or 33.17%
above the current rate of $1.10. WASD proposed sewer rate is $1.6869, a decrease of $0.0481, or 2.77% below the
current rate of $1.7350. The second component of the proposed water and sewer rates is the need for future City
revenue bond requirements to finance improvements to the City's aged water and sewer infrastructure, the majority of
which has been in place for over 50 years. At the September 8, 2008 Budget Hearing, the Administration recommended
a combined increase of water and sewer rates for 2008/09 of $2.13 per 1,000 gallons.
At the direction of the Commission, the Administration further evaluated the phasing of the financing of the bonds in
order to reduce the initial proposed rate increase. As part of this review, the 10% operating expense contingency was
reduced to 5%, earnings in excess of $1 million were carried forward as revenues in the subsequent year, the sewer
WASD true-up credit of $1.66 million was used to reduce operating expenses for FY2008/09, and the issuance of the
first series of bonds was moved from October 2009 to mid 2010 and the second series of bonds to 2012. As a result of
these modifications, the revised combined water and sewer rates were lowered; however, the water and sewer rates for
2008/09 and 2009/10 will have to be set in order to be able to issue the first series of bonds on or about April 2010.
The revised combined water and sewer rate increase for FY2008/09 is $1.34 per 1,000 gallons. Of this amount, $0.32 or
24% is the County increase. The combined water and sewer increase for FY 2009/10 is submitted under a separate
Ordinance amendment.
After reviewing our existing fees, it was determined that the tapping fee should be revised to reflect the actual
operational expense for tapping work. The other ordinance change proposes the elimination of the sanitary sewer
rebate. The rebate program entitles customers who use their domestic water service for irrigation to sign an affidavit,
upon which they would be entitled to a 'credit' of six (6) per cent of the total amount of sanitary sewer service charges
paid by the customer during the preceding year. Most water and sewer municipal service providers allow installation of a
separate irrigation meter to account for the water consumed for irrigation purposes. The City has already in place an
irrigation meter program. A more sound business practice is to use actual meter readings rather than an affidavit, which
is difficult to verify and poses an administrative burden.
The Administration recommends approving the amendment to the Ordinance on second read
Adviso Board Recommendation:
N/A
Financial Information:
Source Amount Account Approved
Fund 1 $3,149,041 425-8000-343310 Water
2 $2,056,203 425-8000-343510 Sewer
Total $5,205,244
Cit Clerk's Office Le islative Trackin
Keith Wilder, ext 6192
Si n-Offs:
De artrnent Director Assistan Mana er Cit M er
FHB JMG
T:WGENDA\2008\September 17\FY09 Water and Sewer Rate Ordina oc
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~~ U
AGENQA ITEM ~/
DATE
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager ~,~ SECOND READING
DATE: September 17, 2008 PUBLIC HEARING
SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF THE MIAMI BEACH
CITY CODE ENTITLED "UTILITIES," AMENDING ARTICLE IV, ENTITLED
"FEES, CHARGES, RATES AND BILLING PROCEDURE THEREOF;"
AMENDING DIVISION 2, ENTITLED "RATES, FEES AND CHARGES," BY
DELETING SECTION 110-168 (b) THEREOF, ENTITLED "SANITARY SEWER
SERVICE CHARGE," TO PROVIDE ADDITIONAL WATER METER FEES; AND
ALSO AMENDING APPENDIX A TO SECTION 110-166, (ENTITLED "FEE
SCHEDULE,") TO INCREASE THE SANITARY SEWER SERVICE CHARGE
IMPOSED BY THE CITY PURSUANT TO SECTIONS 110-166 (a) AND (b), AND
110-168 (a); PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY,
AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The Administration recommends approving the Ordinance amendment on second reading public
hearing setting water and sewer rates for FY 2008/09.
ANALYSIS
The Ordinance amendment was approved on first reading on the city Commission Budget Hearing
of September 8, 2008. The City's utility rates for water and sanitary sewer services are structured to
collect the necessary revenues amounts to meet annual operating and maintenance costs of the
water and sanitary sewer infrastructure, to cover debt service for water and sewer bonds; to
maintain adequate operating fund reserves and to pay Miami-Dade County for wholesale water
purchased, the treatment of the City's sewage and other fees. Increasing the water and sanitary
sewer rates in the amounts levied by the County and to pay all other costs listed above will keep the
City water and sewer funds balanced.
In general, the rates for water supply and sanitary sewer services consist of apass-through of the
wholesale rate the City pays to Miami-Dade County for the purchase of potable water and treatment
of sewage; debt service for the Series 2000 Water and Sewer Revenue Bonds and the 2006 Gulf
Breeze Loan (which financed some water and sewer projects); operating and maintenance costs for
the water and sewer utility; and a 7.5°/a fee of previous year total revenue paid to the Miami-Dade
County Environmental Resource Management Department (DERM).
On August 21, 2008, at the Finance and Citywide Projects Committee (FCWP) meeting, the
Administration provided an update of Fiscal Year (FY) 2007/08 water consumption trends and
discussed proposed FY2008/09 water and sewer rates.
Commission Memo
September 17, 2008
Water and Sewer Rate Ordinance Memo
Page 2 of 5
In regard to water consumption, our projections are that water consumption levels would continue to
be somewhat below budgeted amounts and prior year levels, yet these decreases will be offset by
decreased system water losses and operational savings. It is expected that SFWMD will continue
the same level of irrigation restrictions long-term; therefore, we are using current fiscal year's water
consumption levels to forecast future fiscal year revenues which reflects the current decreased
consumption of water.
In regard to FY 2008/09 water and sewer rates, the Administration presented a rate increase
proposal to cover the County rate increase and the need for additional water and sewer bonds which
would have resulted in a water and sewer bill increase to an average residential customer of $32.45
per month based on 11,000 gallons consumption per month. The FCWP expressed concern
regarding the amount of the proposed increase and directed staff to evaluate a phased rate
increase for the future based on a more detailed analysis of the timing of the capital projects.
A discussion of the County and the City components of the proposed rate increases is provided
below.
FY2008/09 Miami Dade County Wholesale Water and Sewer Rates
The Miami-Dade Water and Sewer Department (WASD) had informed all wholesale customers of
rate changes proposed for FY2008/09. The proposed water rate would be $1.4649, an increase of
$0.3649 or 33.17% above the current rate of $1.10. The total cost of the proposed FY2008/09 water
rate increase to Miami Beach, even with the decreased consumption, is approximately $1.8 million.
While the City has concerns with the County's cost allocation methodology, to date the County's
position is that their methodology is sound. The Manager's proposed budget of August 6, 2008
includes the increase in the City water fees in order to pass through the wholesale rate increase
proposed by the County. All other operational expenditures increases related to Cost of Living
Adjustment to salaries, increased costs of health insurance and pension, and increases in other
operating costs have been absorbed without fee increases, including a $474,088 true-up for
FY2006/07 water cost for the County
WASD has also notified wholesale customers that the proposed sewer rate will be $1.6869, a
decrease of $0.0481, or 2.77% below the current rate of $1.7350. WASD has determined that the
City is entitled to a credit of $1,660,338 for FY2006/07 sewage treatment charges. The Manager's
proposed budget as distributed August 21, 2008 did not recommend a decrease in City's fees
despite the $.048 decrease in the wholesale rate from the County as this somewhat mitigates
additional rate increases needed in both water and sewer funds for coverage requirements related
to the sale of additional bonds. The proposed wholesale water and sewer rates are subject to
approval by the Board of County Commissioners at their second Public Budget Hearing, scheduled
for Thursday, September 18, 2008.
Rate Requirements for Additional Bonds
The second component of the proposed water and sewer rates is the need for future water and
sewer revenue to finance the replacement of the City's aged water and sewer infrastructure, the
majority of which has been in place for over 50 years.
At the Special Finance and Citywide Projects Committee meeting of June 30, 2008, a summary of
future water and sewer bond funding needs for the Neighborhoods Right-of-Way projects was
presented. At this meeting, the additional water and sewer funding need of $50 million and $21
million respectively for CIP managed projects was presented. An additional $8.9 million was
identified for Public Works managed projects.
Commission Memo
September 17, 2008
Water and Sewer Rate Ordinance Memo
Page 3 of 5
Subsequent to the meeting Public Works and CIP staffworked togetherto betterdefine the scope of
work requirements for water line replacements in future neighborhood projects and sewer
improvements. In the case of the water main replacements, part of the objective is to identify water
main sections in good condition, whose replacement could be deferred to at least 15 years in to the
future. As part of this review, the City hired an engineering consultant to perform an updated
hydraulic modeling of the City's water system; in addition, the consultant conducted soil resistivity
tests to determine areas where the soil conditions would be a cause of pipe corrosion concern.
Based upon the consultant's study, water main sections located in areas where soil conditions were
considered corrosive were further investigated. To this end, Public Works staff took "coupons,"
cutting actual sections of pipe to visually examine levels of possible tuberculation, a condition that:
(a) reduces the pipe's carrying capacity; (b) also causes loss of pressure; and, (c) can impact water
quality.
Using the engineering consultant's report and the results of the pipe coupons, City staff developed
several tiers of potential funding level requirements based on water main construction opportunities
and more recent costs estimates forfuture neighborhood projects. Using the information provided by
the City and its Financial Advisor, the City's rate consultant completed a series of pro forma
analyses that provide rate increase ranges for the different tiers that differentiate capital needs from
a more to less conservative perspective
In calculating the future rates, the City's consultant had to consider debt service coverage
requirements which must be met for two conditions. The first condition, termed the additional
bonds test, and requires that net revenues available for debt service must be not less than 110
percent of the maximum annual debt service of the outstanding plus prospective debt to be issued,
for at least 12 months prior to the issuance of additional bonds. The second condition, which must
be fulfilled annually, irrespective as to whether issuance of any prospective debt is contemplated, is
termed the rate covenant. Net revenues available for debt service in each fiscal year must be not
less than 110 percent of the principal and interest requirements for such fiscal year to meet the rate
covenant. In addition to meeting the two debt service coverage conditions, annual revenues must be
sufficient to meet other revenue requirements without resulting in a cash flow deficit.
At the FCWP meeting of August 21, 2008, the Administration recommended the rate increase
proposal of $1.37 per 1,000 gallons of water and $1.58 per 1,000 gallons of sewer; for a combined
total of $2.95 per 1,000 gallons based on the unfunded future water bond requirement of $45.4
million and the future sewer bond of $4.9 million (including separate financing for the construction of
the South Pointe Booster pump station). These increases were necessary to cover the pass-through
County increase of $0.3649 per 1,000 gallons of water (partially offset by a decrease of $0.0481 per
1,000 gallons of sewer) in addition to the future water and sewer bond debt. The FCWP requested
that the water and sewer rates not be increased all at once, but a phased rate increase approach be
developed and brought back to the Commission at the Budget Hearing on September 8, 2008.
To create a phased rate increase, the Administration has reviewed ways to spread out the tax-
exempt bond issuance for the remaining water and sewer funded projects. As explained at the
August 21, 2008 FCWP meeting, the proposed approach will be to seek a line of credit for water
and sewer funded projects, which will allow the City to have the necessary funding capacity to enter
into new projects while allowing the City more time to both build the necessary capacity to issue
additional tax-exempt bonds through rate increases and also spend down the current fully
committed but unspent bond proceeds. While the General Fund will obtain the line of credit, the
Water and Sewer Enterprise fund will pay for the origination and carrying costs as well as for any
payments required by draws against the lines. Following a thorough review of the expected timing
Commission Memo
September 17, 2008
Water and Sewer Rate Ordinance Memo
Page 4 of 5
of funding needs for remaining water and sewer projects, we could issue bonds in two series. The
Water and Sewer Enterprise fund is expected to have the capacity to issue tax-exempt debt by
October 2009, therefore, it could sell the first series of bonds to cover projects in the amount of
$22.3 million plus any costs required to refund the line of credit. The second issue of $28 million
could be issued in either October 2010 or 2011, as the funding is needed.
At the Commission Budget hearing on September 8, 2008, the Administration recommended a
proposed rate for FY2008/09 for water of $4.13/ 1,000 gallons and $6.16/ 1,000 gallons for sewer,
which resulted in a combined rate increase on $2.13/ 1,000 gallons. The impact of the combined
water and sewer rate increases would be $23.43/ month for a typical user of 11,000 gallons per
month. However, at the direction of the Commission, the Administration was directed to take a
further look at the phasing of the projects, with the goal of reducing the impact of the initial rate
increases. As part of this review, the 10% operating expense contingency was reduced to 5%,
earnings in excess of $1 million were carried forward as revenues in the subsequent year, the sewer
WASD true-up credit of $1.66 million was used to reduce operating expenses for FY2008/09, and
the issuance of the first series of bonds was moved from October 2009 to mid 2010 and the second
series of bonds to 2012 As a result of these modifications, the revised combined water and sewer
rates were lowered; however, the water and sewer rates for 2008/09 and 2009/10 will have to be set
in order to be able to issue the first series of bonds on or about April 2010.
As shown in the table below by delaying the financing of the future water and sewer bond as
recommended by the Commission, the combined water and sewer for FY2008/09 rates were
reduced by $0.79 from the rate presented at the September 8, 2008 Commission Budget Hearing.
The revised combined water and sewer rate increase for FY2008/09 is $1.34 per 1,000 gallons. Of
this amount, $0.32 or 24% is the County increase. For the average 11,000 gallons per month
customer, the combined water and sewer rates result in a monthly increase of $14.74 in FY2008/09,
a reduction of $8.69 from the previously proposed $23.43 monthly increase. For the minimum usage
customer (5,000 gallons or less per month), the combined monthly impact would be a total of $6.70.
FY 2008/09 Proposed
Fee as of 9/8/2008 FY 2008/09 Pro osed Fee -Revised
Fee Difference Difference
(per thousand FY 2007/08 Proposed From FY Proposed From FY Difference
allons Fee Rate 2007/08 Rate 2007/08 from 9/8/08
Water $3.23 $4.13 $0.90 $3.88 $0.65 $0.25
Sewer $4.93 $6.16 $1.23 $5.62 $0.69 $0.54
Combined Fee $8.16 $10.29 $2.13 $9.50 $1.34 $0.79
Monthly Impact to
11,000 gallon
Customer $113.19 $23.43 $104.50 $14.74 $8.69
Monthly Impact to
5,000 gallon
Customer `''' $51.45 $10.65 $47.50 $6.70 $3.95
The proposed Ordinance amendment includes only a rate increase proposals for FY 2008/09; the
rate increase for FY 2009/10 is submitted under a separate Ordinance amendment. The additional
years shown in the table are for illustration purposes only.
Commission Memo
September 17, 2008
Water and Sewer Rate Ordinance Memo
Paae 5 of 5
Per 1,000 Cumulative
Gallons Current Rate FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Increase
Water $3.23 $3.88 $4.19 $4.31 $4.44 $4.57 $4.62 $1.39
Increase 20% 8% 3% 3% 3% 1 % 43%
Sewer $4.93 $5.62 $6.13 $6.25 $6.31 $6.31 $6.31 $1.38
Increase 14.00% 9.00% 2.00% 1.00% 0.00% 0.00% 27.99%
Per 1,000
gallons $1.34 $0.82 $0.24 $0.19 $0.13 $0.05 $2.77
Water and For Average
Residential
Sewer Usage
combined 11,000 gallons $14.74 $9.02 $2.64 $2.09 $1.43 $0.55 $30.47
Monthly Minimum
Increase Usage
Customer
5,000 gallons $6.70 $4.10 $1.20 $0.95 $0.65 $0.25 $13.85
The recommended rate is conservative in the area of needed bond coverage based on the
information developed to date. The Administration will continue to work on the bond debt needs and
anticipates having more information before it is necessary to actually issue the bonds. It may be
possible to reduce the rates at that point. The Administration is not recommending the elimination of
volume allowance in monthly minimums at this time, given the need to further evaluate the impact of
the proposed changes.
Between first reading and second reading, the Administration evaluated an alternative that would
eliminate the monthly minimum volume allowance. The preliminary conclusions of the analysis
completed to date by the City's rate consultant are that this alternative will result in a higher monthly
increase in water rates and would make the water revenue stream less stable. The Administration
will continue to evaluate this alternative or other restructuring options.
Fee Changes
After reviewing our existing fees, it was determined that the tapping fee should be revised to reflect
the actual operational expense for tapping fees. Tapping is a significant operational expense, and a
periodic review of the cost of making taps to our water and sewer system is appropriate and ensures
that we are recovering the city's costs. The other ordinance change is the elimination of the sanitary
sewer rebate. The rebate program entitles customers who use their domestic water service for
irrigation to sign an affidavit, upon which they would be entitled to a `credit' of six (6) per cent of the
total amount of sanitary sewer service charges paid by the customer during the preceding year.
This type of rebate is not provided by other municipal water and sewer service providers and poses
an administrative burden. Further, a more sound business practice is to use actual meter readings
rather than an affidavit which is difficult to verify. Most water and sewer providers allow the
installation of a separate irrigation meter to account for the water consumed for irrigation purposes.
The customer will not pay sewer fees water for the water accounted for by the irrigation meter. The
City has already in place an irrigation meter program.
CONCLUSION:
The Administration recommends approving the Ordinance amendment on first reading and
scheduling a second reading public hearing setting water and sewer rates for FY 2008/09.
JMG/RCM/FHB
T:\AGENDA\2008\September 17\FY09 Water and Sewer Rate Ordinance MEMO.doc
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/~~i`I A/V~ I B~EAC H
C[TY'OF MIAMi~~'lCAH;;
NOTICE OF ~~PUHLIC HEARINGS
NOTICE tS HEREBY given that•a second reading and public hearings will be held by the Mayor and City Commission of the City of Miami I
Beach, Florida, in the Commission Chambers, 3rd floor, City Hall,'17D0 Convention Center Urive, Miami Beach, `Florida, on:lNednesday,
September 17, 2008, to consider the tollowing: _ -
b:05 p.m. .:. .
Ordinance Amending Ordinance No. 1335, The Classified Employees' •Leave Ordiriartce;"QBy~+cn!rending The Rrovisions~.OfSectionB.For Use
Of Sick Leave.
Inquiriesmeybe.directed to the Human Resources Department at (305) 673-7520. - _
Ordinance Amending The Code Of The City O( Miami Beach, By Amending Chapter 'ID6, Entitled "Traffic ~And•Vehieies,"~By Amending
Article Il, Entitled "Metered Parking," By Amending Division 1, Entitled "Generally,"'By;Amending Section 106;55, Errtftled'"Parkin~g:Rate$,
Fees, And Penalties;" By Amendlgg Parking Meter Rates And Time. Limits; Regulations Concerning Meteretl `Parking '.Space" Rentals; -.+
Temporary Residential Guest.Parking Placard Permits; And Providing Minor Amendments For Consistency:INtthin Section 1'06=55:As'To
Parking Department Operating Procedures AndModernizing Parking Regulation Terminology By Amending Division.2;Eritttled""Reaidetitial ,
Parking Pernlts" By Amending Section 106-79 Entttled "issuance Oi Permits; -Placement Of Signs" By Amending The Provisions'For
ResitlentiaPParking'Permits.
Inquiries may be dhected to theParkirYg Department at (305) 673-7275.
-5:OS p.m.
An Ordinance Amending Chapter 110 Of The~Miami.Beach•Ctty Code Entttled""UtifttieS'"=Amending Article IV, Entitled "Fees, Charges, Rates
And Billing"Procedure Thereof," Amending Division 2, Entitled "Rates, Faes Arid~harge~.°••~By~Deieting Section 110-166'(8) Thereof, Entitled
"Sanitary-Sewer Service Charge," To Provide Addttional Water Meter.Fees; And Also Amending Appendix A To Section 11 D-166, (Entitled "Fee
Schedule,") To Increase The Sanitary Sewer ServiceCharge~lmposed By The Ctty Pursuant:To Sections 110-166 (A) And (B), And 1'10.988 (A).
Inquiries may be•diredted to the Public Works Department•at {305) 673=708D.
Ara~lxtiriance•A•rnending Chapter 110 Of The RAiami Beach:Ctty Code, Entitled "UtilRies"°By Amending Article III Thereob6.ntitled'"Stornwater
. .coon 110-1 D9 ThereoF Entitled "Stortnwater lJNiityFees," By Amendmg A. FPendix AThereof To Increase The Stonnwater
Utlitt~f' afsrrn3pdfa~'Se
Ufility~9ei•~e~Gl,ep0e~l-~Posed syThe Ctty.,. - .
-.Irrquines'maybe r3iractad to.the Public WQtks Department at )305) 673-7080, , ~ '~
..,,
-~Rn Otdinance+i4men~iigg.:~The Mlemf;.Beach City .~ea~By.+Amend'mg lrhapter 9U,'~Entitled KSolid Waste "jBtewc~igB~Aptiote+L3~E~(aJd~~
"'rlrraren~BJ .agyu4rnentil~g~ection>90=2 ~Etrtttlecl:De'Firiitlotas °~y;A~mending [~itll~ioeis+Oclnc6rning Wash -^~- .u4~eGiit~,l~g4~ie;s
:~ E~Itiea'Pnv~tealNaollactors70orttractor~ 'By'•X.urtendrrag°~iivtsidn 2, Entitledi "Licenae~nd Permtt,~~~s
:.W
~10~2~d-';~83 ~,g0--+@95;in•~IaYti~'Protsisions ~teBatdirlg Licenses, Permits, Indemnification, And Insuranee~otalnd9pan'E"fe
By,~m®~atliflg'piifi~Ion'3 "E,~titled "Frarichiae''rb[~hcie.IH Byeending Sections 9D-221, 80-222, 9D-223,'•4:80 225,'•80-22$°80x;
"~:~Sp; ,9rad390-~33 Bye,Aai9igg'F[apdhise~~ee~rowsions 'Rr~iWding Provisions For •Recycling And WeSte Cobtraators •aVlth •Regarii sTo
~Ftart~fise~Faes Account rrdanon,'Mocitlily"Rel~,~reYFtarai~ling Of Compleirrts, Regulations For Sero~dirig:Ducttpstersr ~~P~e~:
~fxd6;'Eaatbgge?FacglGes Th>eleiYtion.Of Franchise Ntlaste'Cont~acturs, The Renewal.Of Waste Corrtractors''f'ranchisa~ftpreemecrt°ContFSets,
._ -- --.~._.S.,Y._~_.to" ..u.,., e~..:t:~:eme:~.,naHnn'r.1r Frnnrhict~s-x~V.~i9'ddir7aP, New Sel3tloFi~f3z231-7o%PrOVlde ReCyt7lhdg
:ntitled ~Roltoff/Waste CoOtam
'And Fees, Providing Penalties
,olution ~ffter October 1 „2P108,
TYWII ~x.u M11 wu 5•~ ~ _.. .-
GM~gtradtetrs th~ibp~i~cls~lr!"•By'hentitr(Q~edt+ort';~0~307 .WRh'Regard To The Expiration ~ Jxerraes = RB
gp~8'ID~Tg',9~oEth#R.~ge~ibtloas~,pplrc:able'fntllrig~a~te Contractors
~„- c r,ry ire. „p,,{ .rIV t ',` . '`
ila4r~ales~raayattre~c~drxottae~deli~ivo~s~bePgrttt~ar~mo5r~s73-Toes -_:.
INTERF_STED'PaRT1ES are invited:to'sppear.at.this•meeting or berrepreserrted,by•an agent, or to express thetrauiews in„y¢{itlgg'aCldressed `
to the.CNy Commission, c/o.the City Gierk, 1.7.00 Convention OBnter Drive, 1st Floor, Ctty:Mall, Miami.Beach ~Flonda`33'1'85's~DPies'of ~:
these ordinances era avatlabie for,public inspection during,norn~lbusiness hours in the CityfiJlerk's Office, 51T110tCorw.erition'CenteF°.Dnve, .;
1st Floor, CRy Hall, and-Miami Beach,.Florida33139. This meeting?may be continued and under such circutststances~aiitlRionahlQgal:notitle
would not~be provided.
°~?Robert E.'Parcher, City .Clerk
' Ctty of.Miami Beach
.: I
Pursuant to Section 286.D105, FIa..Stat., the City hereby advises;the public that: ff a person `decides to appeal any decision made by the
Cfty Commission wtth respect td any matter considered et its rie9ting or its hearing, such person muss ensure that a verbatim record of
the proceedings is made, which record includes the testimony acid evidence upon which the appeal is'to be based. This notice does not
constitute consent .by the City .for the introduction .or admissionoi othervvise inadmissible or irrelevant evidence, nor does it.authonze
challenges or appeals not otherwise allowed by law. '
To request this material in accessible format, sign language interpreters, information on access for persons with •disatiilities,;•and/or
any accommotlation to review. any document or participate in5any city-sponsored .proceeding, please comact (305) 604-2489 (voice),
(305)673-7218(T-fly five days in advance to initiate yourrequest TT" users may also call 711 (Florida Relay Sernce).
,Ad #506
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