2012-27866 Reso RESOLUTION NO. 2012-27866
A RESOLUTION OF THE MAYOR AND CITY COMMISSION APPROVING
AND AUTHORZING THE CITY MANAGER TO EXECUTE A MEMORANDUM
OF UNDERSTANDING BETWEEN THE CITY AND SUNSET ISLANDS III & IV
PROPERTY OWNERS, INC. MEMORIALIZING CERTAIN ADDITIONAL
TIMEFRAMES AND TERMS AND CONDITIONS, AS AGREED TO BETWEEN
THE PARTIES, AND PERTAINING TO THE CREATION AND
ESTABLISHMENT BY THE CITY OF THE PROPOSED SUNSET ISLANDS 3 S
4 SPECIAL ASSESSMENT DISTRICT FOR UNDERGROUNDING UTILITIES.
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 its innate ability to assist with said initiatives and to
provide a collection mechanism, such as those used with special assessment districts created
pursuant to Chapter 170, Florida Statutes, at the request of individual neighborhoods; and
WHEREAS, pursuant to Resolution No. 2002-24761, adopted on February 20, 2002, the
City Administration has been working with the Sunset Islands 3 and 4 Property Owners
Association (HOA) toward the creation of a special assessment district to fund the conversion of
overhead utilities to underground on said Islands (the Project); and
WHEREAS, the HOA has been working with the Administration on its proposed
undergrounding district, and has reached the point where the initial Resolution establishing its
district will likely be presented to the City Commission sometime in late Summer or early Fall
2012; and
WHEREAS, at its regular meeting on February 8, 2012, the Mayor and City Commission
approved Resolution No. 2012-27842 (the Resolution), approving and allowing the HOA to
proceed with the "election" requirement imposed by the City Commission, which requires that,
as a condition precedent to its final establishment of the proposed special assessment district,
at least sixty percent (60%) of the benefitted property owners within such district vote in favor of
its creation/establishment by the City and of the levy of a special assessment to fund the costs
of the contemplated undergrounding project; and
WHEREAS, the Resolution also adopted guidelines and procedures for the aforestated
election, which will be a mail ballot election (the Election); and
WHEREAS, the HOA has been working with representatives of the City Attorney and
City Clerk's Offices, who are preparing the ballot question and instructions and, accordingly, has
approved the attached sample ballot question and instructions, both of which are attached, in
substantial form, as Exhibit "A" hereto; and
WHEREAS, in addition to re-affirming certain benchmarks and timelines pertaining to
the Election, the City and the HOA also wish to confirm, in this MOU, other terms agreed to
between the City and the HOA with respect to the creation and establishment of the proposed
Sunset Islands 3 & 4 Special Assessment District for Undergrounding Utilities (the District).
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 approve and authorize the City Manager to execute a Memorandum of
Understanding between the City and Sunset Islands III & IV Property Owners, Inc.
memorializing certain additional timeframes and terms and conditions, as agreed to between the
parties, and pertaining to the creation and establishment by the City of the proposed Sunset
Islands 3 &4 Special Assessment District for undergrounding utilities. ��""
PASSED AND ADOPTED this A4 day of rnG1-C vl , 2012
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FAATTO\AGUR\RESOS-ORD\Sunset Islands 3 and 4 MOU Reso(3-13-12).doc &F . ECU
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Approving And Authorizing The City Manager To Execute A
Memorandum Of Understanding Between The City And Sunset Islands III & IV Property Owners, Inc.,
Memorializing Certain Additional Timeframes And Terms And Conditions, As Agreed To Between The Parties,
And Pertaining To The Proposed Creation And Establishment By The City Of The Proposed Sunset Islands 3 &
4 Special Assessment District For Under grounding Utilities.
Key Intended Outcome Supported:
Issue:
Item Summa /Recommendation:
Pursuant to Resolution No. 2002-24761, adopted on February 20, 2002, the City Administration has been
working with the Sunset Islands III and IV Property Owners Association (HOA) toward the creation of a special
assessment district to fund the conversion of overhead utilities to underground on said Islands.
During the past year, the HOA has been working with the Administration on its proposed undergrounding
district, and it expects that the initial resolution establishing the special assessment district will likely be taken to
the City Commission for approval sometime in late Summer or early Fall 2012.
On February 8, 2012, the Mayor and City Commission approved Resolution No. 2012-27842, approving and
allowing the HOA to proceed with the election requirement imposed by the City Commission, which requires
that, as a condition precedent to its final establishment of the proposed special assessment district, at least
sixty percent (60%) of the benefitted property owners within such district vote in favor of its
creation/establishment by the City, and of the levy of a special assessment to fund the costs of the
contemplated undergrounding project. The Resolution also adopted guidelines and procedures for the election,
which will be a mail ballot election.
To re-affirm certain benchmarks and timelines pertaining to the election, and other terms agreed to between the
City and the HOA with respect to the creation and establishment of the proposed Sunset Islands 3 & 4 Special
Assessment District for Undergrounding Utilities, the City and the HOA agreed to execute a Memorandum of
Understanding (MOU) (Attachment A), containing the following elements:
1. Election Timeframe; 2. Additional Conditions, a)Costs, b)Funding;
3. Traffic Circle and Sidewalk 4. Construction Timeframe
The Administration recommends adopting the Resolution.
Advisory Board Recommendation:
Financial Information:
Amount Account
Source of I
Funds: 2
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Fred Beckmann, Public Works Director. Ext: 6012
Sign-Offs:
Department Director Assistant C na er City ger
FB B JMG �
TAAGENDA1201 213-21-1 21Sunset Islands 3&4. SUMMARY.doc
AGENDA ITEM
I MIAMBEACH DATE
IM MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,
www.miamibeachfi.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera-Bower and Members of the Cit Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: March 21, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY AND SUNSET ISLANDS III&IV PROPERTY
OWNERS,INC.,MEMORIALIZING CERTAIN ADDITIONAL TIMEFRAMES AND TERMS
AND CONDITIONS,AS AGREED TO BETWEEN THE PARTIES,AND PERTAINING TO
THE PROPOSED CREATION AND ESTABLISHMENT BY THE CITY OF THE
PROPOSED SUNSET ISLANDS 3 & 4 SPECIAL ASSESSMENT DISTRICT FOR
UNDERGROUNDING UTILITIES.
ADMINISTRATION RECOMMENDATION
The Administration recommends adopting the Resolution.
BACKGROUND
Pursuant to Resolution No. 2002-24761, adopted on February 20,2002,the City Administration has
been working with the Sunset Islands III & IV Property Owners Association (HOA) toward the
creation of a special assessment district to fund the conversion of overhead utilities to underground
on said Islands.
During the past year, the HOA has been working with the Administration on its proposed
undergrounding district, and it expects that the initial resolution establishing its special assessment
district will likely be taken to the City Commission for approval sometime in late Summer or early Fall
2012.
On February 8, 2012, the Mayor and City Commission approved Resolution No. 2012-27842,
approving and allowing the HOA to proceed with the election requirement imposed by the City
Commission,which requires that, as a condition precedent to its final establishment of the proposed
special assessment district, at least sixty percent (60%) of the benefitted property owners within
such district vote in favor of its creation/establishment by the City, and of the levy of a special
assessment to fund the costs of the contemplated undergrounding project. The Resolution also
adopted guidelines and procedures for the election, which will be a mail ballot election.
City Commission Memorandum—Sunset Islands III & IV
March 21, 2012
Page 2 of 3
To re-affirm certain benchmarks and timelines pertaining to the election, and other terms agreed to
between the City and the HOA with respect to the creation and establishment of the proposed
Sunset Islands 3&4 Special Assessment District for Undergrounding Utilities,the City and the HOA
agreed to execute a Memorandum of Understanding (MOU)(Attachment A),containing the following
elements:
1. Election Timeframe
The City and HOA shall use their respective good faith, commercially reasonable efforts to
hold the election sometime in April 2012 (Election Date). For purposes of this MOU, the
term"hold the election"shall refer to the date that the Official Ballots(as that term is defined
in Attachment "A" of the Resolution) are mailed out by the City, through its City Clerk's
Office, to the benefitted property owners within the District. Notwithstanding the preceding,
the April 2012 Election Date is contingent upon and subject to the City's prior timely receipt
of the final binding estimates from the utilities (FPL, AT&T, and Atlantic Broadband) and,
based on such costs, the calculation, by the City's Finance Department, of the amounts of
the individual assessments for each property owner (both if paid up front, in full, or in
installments over the agreed upon period of ten (10) years, if the property owner elects to
finance).
2. Additional Condition
A. Costs.
In order to minimize costs to the HOA, the Election will be prepared and conducted
by the City, "in-house," through its City Attorney and City Clerk's Offices. The City
will be responsible for the costs associated with printing and copying the sufficient
number of Official Ballots (currently estimated at 118) and the three(3) envelopes
accompanying each Ballot The HOA will provide to the City, and be responsible for
any costs associated with: (i)the"Certified List"of benefitted property owners within
the District (containing the names and addresses of the property owners to whom
the City shall mail the Official Ballots to); (ii) the mailing labels for each address on
the Certified List; and (iii) the costs of all postage associated with mailing out the
Official Ballots to the benefitted property owners, via First Class U.S. Mail.
B. Funding.
1. The City agrees to fund the following District costs internal to the City; which costs
will not be included as part of the total Project cost for purposes of calculating the
special assessments: the FPL-CIP Liaison, the CIP Management Fee, annual
administration fees, and the internal costs of conducting the Election (except, as to
the latter, costs associated with preparing the Certified List, mailing labels, and
postage costs, all of which will be the responsibility of the HOA).
2. The HOA will be responsible for any and all District third party costs;which costs will
be included as part of the total Project costs for purposes of calculating the special
assessments. Financing costs (interest, issuance, tax collector, debt service
reserve, and other third party and related borrowing costs)will be assessed to those
property owners who do not pay the assessment up front, in full, and who elect to
use the City financing option to pay for their portion in installments.
City Commission Memorandum—Sunset Islands III & IV
March 21, 2012
Page 3 of 3
3. Traffic Circle and Sidewalk.
Following approval of this MOU and execution by the parties hereto, the City's Capital
Improvements Projects Office(CIP)will develop and provide the HOA with a preliminary cost
estimate for(i) a traffic circle, to be located as one comes over the Sunset Island IV bridge,
from the mainland side onto Sunset Island IV; and (ii) the extension of the sidewalk
connecting the Sunset Islands III & IV bridges along Sunset Drive.
4. Construction Timeframe
The City shall use good faith, reasonably commercial efforts to: (i) meet the CIP timeframe
for the Project, which is currently estimated for commencement of construction in late 2012
or early 2013; (ii) expedite the preparation of the necessary resolutions, notices, and other
work product that the City needs to prepare for the City Commission's consideration relative
to creating and establishing the District(and including,without limitation, presenting options
for financing the Project costs); (iii) expedite all City issued permits for the Project; and,
provided the District is created and established; (iv) diligently and continuously prosecute
construction of the Project. Upon completion of the Project, in the event that benefitted
properties within the district have not connected their individual residences to the Project
(the"resident hook-ups"),the City will reasonably assist the HOA with such lawful actions, as
the City Commission may deem necessary, to facilitate the completion of all resident hook-
ups with the District.
Notwithstanding the preceding, or any other term or condition of this MOU,the City and HOA
hereby agree and acknowledge that the City shall have no liability whatsoever to the HOA,or
to third parties, for any claims, causes of action, costs, expenses, liabilities, or damages,
whether direct or indirect, arising out of or in connection with any act or failure to act, or any
error or omission, of the City, including without limitation,those arising from its performance
or non-performance of any good faith, reasonably commercial effort contemplated by the
City under this Section 5.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the Resolution and
authorize the City Manager to execute the Memorandum of Understanding.
DRB/FHB//JRG
TAAGENDA\2012\3-21-12\Sunset Islands III &IV