2014-3894 Ordinance ORDINANCE NO. 2014-3894
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 III THEREOF, ENTITLED
"STORMWATER UTILITY," AMENDING SECTION 110-109
THEREOF ENTITLED "STORMWATER UTILITY FEES," BY
AMENDING APPENDIX A THERETO ENTITLED "FEE
SCHEDULE," TO INCREASE THE STORMWATER UTILITY
SERVICE CHARGE IMPOSED BY THE CITY AS OF OCTOBER
1, 2014; PROVIDING FOR CODIFICATION, REPEALER,
SEVERABILITY, AND AN EFFECTIVE DATE.
WHEREAS, the City owns and operates a Stormwater Utility System ("System"), which
is currently funded by a stormwater utility service charge; and
WHEREAS, a Capital Improvement Program (the "Program") has been developed to
implement stormwater improvements for the System; and
WHEREAS, it is necessary to finance the Program through the issuance of
Stormwater Revenue Bonds; and
WHEREAS, the schedule of rate increases proposed herein will provide sufficient
revenues for the payment of principal and interest on the proposed Stormwater Revenue Bonds;
and
WHEREAS, the rate increases proposed herein include funding for additional costs for
operation and maintenance of the System.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
SECTION 1: That Appendix A to Section 110-109 (c) of Article III of Chapter 110 of the Miami
Beach City Code is hereby amended as follows:
APPENDIX A
FEE SCHEDULE
Section Description Amount
this Code
110-109(c) Stormwater utility service charge effective with billings on
or after the following dates shall be as follows:
October 1, 2009 $ 9.06
October 1, 2014 $16.67
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
re-lettered 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 of ordinances in conflict herewith are and the same are hereby
repealed.
SECTION 4. 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 5. EFFECTIVE DATE
This Ordinance shall take effect on the 1St day of October, 2014.
PASSED and ADOPTED this M day of SP -e r, 2014 r
ATTEST:
PHILIP LEVIN , I�If R
RAFAEL E. GRANAD ' .4, ,
� APPROVED AS TO
T:IAGENDA120141Ju1y 2 4u atrF �trkiinance1stRdg.doc FORM & LANGUAGE
��� t EXECUTION
e I -�� _7 & FO
; •' 4
�Z� ''�
�\ •A a,,�,
City Attorney Date
Z=i
COMMISSION ITEM SUMMARY
Condensed Title:
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 III, Thereof Entitled "Stormwater Utility;"Amending Section
110-109 Thereof Entitled "Stormwater Utility Fees," By Amending Appendix A Thereto Entitled "Fee Schedule" To
Increase the Stormwater Utility Service Charge Imposed by the City as of October 1, 2014; Providing for Codification,
Repealer, Severabilit , and an Effective Date.
Key Intended Outcome Supported:
Ensure reliable Stormwater Management and resiliency against flooding by implementing select short and long-term
solutions including addressing sea-level rise. .
Supporting Data (Surveys, Environmental Scan, etc.): Consistent with prior surveys,the 2014 community survey
identified storm drainage as areas for improvement. 75% of residential respondents and 69% of business respondents
rated storm drainage as fair or poor.
Issue:
Shall the Mayor and City Commission approve the amendment to the Ordinance on second reading public hearing?
Item Summary/Recommendation:
SECOND READING-PUBLIC HEARING
On June 9, 2010, the City authorized development of a Citywide Comprehensive Stormwater Management Master Plan
(SWMMP) which was adopted on November 14, 2012 to evaluate and update its Stormwater management practices,
infrastructure, funding and regulatory policies. The SWMMP was intended to be a guide for improving the City's
Stormwater management system performance for the next 20 years, with considerations to potential sea level rise over
this time period.
On February 12, 2014, the City of Miami Beach Commission approved the recommendation of the Flooding Mitigation
Committee to amend the City's Stormwater Management Master Plan by modifying the design criteria to meet the
continuing flooding conditions in the City.
At the March 4, 2014 meeting of the Mayor's Blue Ribbon Panel on Flooding and Sea Rise and the March 26, 2014
meeting of the Flooding Mitigation Committee, Patricia Walker, Chief Financial Officer, discussed the necessity and
process to raise Stormwater fees to cover the cost of financing the enhancements to the Stormwater System. ,
At the Commission meeting of April 23, 2014, the Mayor and City Commission approved Resolution 2014-28580
accepting the recommendations of the Mayor's Blue Ribbon Panel on Flooding and Sea Rise to design and implement
the upgrade of the City's storm drainage system to meet the new design criteria set by the City Commission with a
potential estimated cost of$300 million and with a target completion timeframe between 3 to 5 years.
In order to be able to provide coverage to issue the first series of additional bonds,the Administration proposes a monthly
Stormwater rate of $16.67 per Equivalent Residential Unit ("ERU") which represents an increase for a residential
customer of$7.61 per month or 84%above the FY 2013/14 rate of$9.06 per month.
The Finance and Citywide Projects Committee (FCWPC) met on May 20, 2014 to review the proposed Ordinance
amendment, but elected to refer the item to the full Commission for its consideration.
On July 23, 2014 the City Commission approved the Ordinance on First Reading and set a Second Reading Public
Hearing for September 10, 2014. Commissioner Steinberg asked that the City's Ombudsman Barbara Hawayek reach
out to condominium associations to explain the impact of the Stormwater rate increase.
THE ADMINISTRATION RECOMMENDS APPROVING THE AMENDMENT TO THE ORDINANCE.
Advisory Board Recommendation:
F Finance and Citywide Projects Committee, Mayor's Blue Ribbon Panel on Flooding and Sea Rise, Flooding
mitigation Committee.
Financial Information:
Source of Amount Account Approved
Funds: I
2
OBPI Total
City Clerk's Office Legislative Tracking:
Georgina Echert, ext 6479
Sign-Offs:
De m n Directo A sistant City Manager City Ma er
I 4L
TAAGENDA\2014\S6ptem er 10\Regular\FY1 TStormwater Rate 0 inance SUMM 2reading.doc
AGENDA ITEM
MIA/\AIBEACH DATE q 0'L
IM MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of the Ci Commission
FROM: Jimmy L. Morales, City Manage SECOND READING
PUBLIC HEARING
DATE: September 10, 2014
SUBJECT: AN ORDINANCE OF THE MA OR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF THE
MIAMI BEACH CITY CODE, ENTITLED "UTILITIES;" AMENDING
ARTICLE III THEREOF, ENTITLED "STORMWATER UTILITY;"
AMENDING SECTION 110-109 THEREOF ENTITLED "STORMWATER
UTILITY FEES," BY AMENDING APPENDIX A THERETO ENTITLED
"FEE SCHEDULE," TO INCREASE THE STORMWATER UTILITY
SERVICE CHARGE IMPOSED BY THE CITY AS OF OCTOBER 1, 2014;
PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND
AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The Administration recommends approving the City Commission adopt the Ordinance.
BACKGROUND
On June 9, 2010, the City authorized- development of a Citywide Comprehensive
Stormwater Management Master Plan (SWMMP) which was adopted on November 14,
2012 to evaluate and update its Stormwater management practices, infrastructure,
funding and regulatory policies. The SWMMP was intended to be a guide for improving
the City's Stormwater management system performance for the next 20 years, with
considerations to potential sea level rise over this time period.
On February 12, 2014, the City of Miami Beach Commission approved the
recommendation of the Flooding Mitigation Committee to amend the City's Stormwater
Management Master Plan by modifying the design criteria to meet the continuing
flooding conditions in the City. The sea level design criteria was changed to reflect
seasonal high tides and this will require all drainage outfalls to be pumped and the
discontinuance of the existing injection wells. The SWMMP provided a preliminary
schedule of prioritized capital improvements based on earlier criteria but does not
include the improvements associated with the revised criteria.
September 10, 2014 City Commission Memo
FY15 Stormwater Rate Ordinance MEMO
Page 2 of 4
At the March 4, 2014 meeting of the Mayor's Blue Ribbon Panel on Flooding and Sea
Rise and the March 26, 2014 meeting of the Flooding Mitigation Committee, Patricia
Walker, Chief Financial Officer, discussed the necessity and process to raise
Stormwater fees to cover the cost of financing the enhancements to the Stormwater
System.
At the Commission meeting of April 23, 2014, the Mayor and City Commission approved
Resolution 2014-28580 accepting the recommendations of the Mayor's Blue Ribbon
Panel on Flooding and Sea Rise to design and implement the upgrade of the City's
storm drainage system to meet the new design criteria set by the City Commission with
a potential estimated cost of $300 million and with a target completion timeframe
between 3 to 5 years. The estimate includes the Stormwater portion of future
neighborhood projects, the retrofit of some previously constructed neighborhood
Stormwater systems, and miscellaneous Stormwater upgrades that have been identified
by the Public Works Department. The upgrades include the installation of 35 large and
30 small pump stations and the conversion of 21 injection pumps.
At the Special Finance and Citywide Projects Committee (FCWPC) meeting of May 20,
2014 the Administration presented the funding strategy for this program recommending
issuing three separate $100 million Stormwater bonds. The first issue would be in FY
14-15 and other issues would follow as funding was needed. The need for future bond
issues may be reduced by the establishment of Stormwater impact fees, the removal of
certain restrictions on capital funds currently held by the City and any grant funds for
which the City may be eligible. The FCWPC elected to refer the item to the full
Commission for its consideration.
On July 23, 2014 the City Commission approved the Ordinance on First Reading and
set a Second Reading Public Reading for September 10, 2014. The item was presented
by Eric Carpenter, Public Works Director and Patricia Walker, Chief Financial Officer.
Commissioner Steinberg asked that the City's Ombudsman Barbara Hawayek reach out
to condominium associations to explain the impact of the Stormwater rate increase.
Rate requirements for Additional Stormwater Bonds
To determine the rates necessary to support the issuance of the first $100 million of
Stormwater Revenue Bonds, the Administration completed a series of pro-formas to
calculate the rate increases required to cover debt repayment of future Stormwater
bonds.
The calculation considered debt service coverage based on two requirements of the
existing Stormwater Revenue Bond Resolution.
The first requirement, termed the additional bonds test, requires that net revenues
available for debt service be no less than 110 percent of the maximum annual debt
service of the outstanding plus prospective debt to be issued, for at least 12 consecutive
months of the 18 months prior to the issuance of additional bonds or, if prior to the
issuance of the proposed additional bonds, the rates are increased, then such rates
may be used to project the Net Revenues as though they were in place during the
September 10, 2014 City Commission Memo
FY15 Stormwater Rate Ordinance MEMO
Page 3 of 4
period.
The second requirement, which must be fulfilled annually, regardless of any prospective
debt issue, is termed the rate covenant. Net revenues available for debt service in
each fiscal year must not be 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 requirements, annual revenues must be sufficient to meet
other operating and maintenance expenditure requirements without resulting in a cash
flow deficit.
The Stormwater Enterprise fund is anticipated to need the capacity to issue tax-exempt
debt in the amount of $100 million, plus issuance costs, by early FY 2014/15 to cover
the costs of Stormwater improvement projects which will include any amounts
committed from the line of credit. The second issue of $100 million could be issued in
FY 2016/17 and the third issue of $100 million could be issued in FY 2018/19, as the
funding is needed to support the Stormwater improvement projects.
In order to be able to provide coverage to issue the first series of additional bonds, the
Administration proposes a monthly stormwater rate of $16.67 per Equivalent Residential
Unit ("ERU") which represents an increase for a residential customer of $7.61 per month
or 84% above the FY 2013/14 rate of $9.06 per month.
FY
FY 2014/15 Difference
2013/14 Proposed from FY
Rate Rate 2009/10 % Change
Stormwater $9.06 J $16.67 J $7.61 84%
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
capital needs and anticipates having more information before it is necessary to actually
issue the bonds.
The table below projects increases from FY 2014/15 through FY 2018/19 including ,
increases for the second and third debt issuances, if needed; however, this Ordinance
amendment only includes a rate increase proposal for FY 2014/15. As with this year,
we will refine these on an annual basis.
Stormwater Current FY FY FY FY FY
Proposed Fees Rate 2014/15 2015/16 2016/17 2017/18 2018/19
Monthly Char e $ 9.06 16.67 16.67 $ 23.01 $ 23.01 $ 27.38
% Fee Increase 84% 0% 38% 0% 19%
Monthly Increase 1 $ 7.61 1 $ - $ 6.34 $ - $ 4.37
September 10, 2014 City Commission Memo
FY15 Stormwater Rate Ordinance MEMO
Page 4 of 4
CONCLUSION:
The Administration recommends approving the Ordinance amendment.
JLM/PDW/GE
T:\AGENDA\2014Wugust 1\Regular\FY1 5 Stormwater Rate Ordinance MEMO.doc
Wi
Z i C N aj "O O m- -Vj O O N C C C LT C O c C N m T Y L
Mj o m > ccF- 0 F- co0 om a) 0 cQ o o >
F.� c oO m ro 0 E-ov 0) N�'c- c j 3 roa y.N c0 i6 o E U cu
> .N m c c.y c'3 o c m-° - 1 m 2 E'LL aQ ce'E > -0 m >m
c >•> iL E Z 7-0 ED m e m _ E m U c m ; m
v. o N > H ° N 7 °� o-o m e O E o c a`)L co m U E
o. Uo 0 -Eo�Q� a) NUoaQ w o cn V co 0) oU (n a� a °�
o c w E O Q N E C m-0 o Z m o c c m m
O C c ], -p N O m m in C Q N C v•p d 0 - —t r- p O N N C O
Q E �pp-2'v cao o Mo r-=cu�t c •°_'U c E o 3 o c "-0 3 a `°«
In: 7-° N N m a) U >« U c m W C 7(� N Y > m m_� O (.9
V
�! S �dc LL L)ca)cm° c°n2-o o' am) LU c ?: m c m.0 ca w
co Q m m c'T' rnUmp rn m a°2� p o'= c o U U E m m a)
QI U `9 0 ° ro `�°c•�� v 9 E a ra a E o �°o �.N' E ro
}( _ c > m m a m N O En L U O N m F- T C..) -0 m m a) U
¢' o° p > a) o oO�o' E a� ao o E o� m > !E m a o ao '°o
Lam. m m LL a. c o c E Q c o a) ° a
N -d 21'(n O� m' O cIl N Q 0)-o�^ U.m 7N Cm Tp O cmj a1 CO C>`CL i m C O)m 7 U L-• m N m r C 4)N U) 3 O�r (.5
m _d.0 L\') d p,m C (V
co
c.>- -or--a L m : L co mtT
°v v m F-C� ui E.N c C a) -p m E m c y o �' c ro m
EN U c w Ll O m c—c6 (Y NO Ll``) N y 'U O .� m o N N N N 0 L-.-C a
° ao Tc _gLc.c� a cw 6 ED in0 LLCim ° c ECG a) 3 3 m o
(� (n U Ln Q U 'U U t c.c f/1 d Q O O)6 LL Q CL.N E+T' C 0 0 0 C
w C c m y p a Q Q m m-O E >,.> C O C 0) CO U V U N O O cn Z' g �m cQ c� mQ �� yOF- E � cQ oro YMo Em � ro
N ma � o Q-EQS E C m `O (D a: q) a)aa))w EY > > E'er U c c E c a-) °n
E m ;E- : ca O�y,o ~LL E-p TC QU a y'o m ` 0) o-0 E _
E Q tr p y m F-c`o m 0 m'aa 6 o Q D o)a m ac � 7 4) U 5 U E
U N LL ' O 7 3 N m Q a V 7 a U O Iz °c =F- c N — U O L C _o.N U U
N (n-0 E - -0 N C C U C U
'q Y o c 40 aoi'>'� COQ co ao)-0Q� we ?m ( U) ; c Ei-° m m_ m �
H♦ T ° a)c a c U c o Z p a N a) > cn
c m T om N m o m oQ c� c.o do G a) Cl CO c.cc c 3 m T
> > a c o m o LL c C_ m m o Q is m N U) N N CO �.o m co
m a) CM c� 3CMCUmm 'Fu-o � � 3o Tro mo pL7 E= `oo
7 Lr a 'c m m m Q 2 c m m m E a m 7 C c m CD y N �m
j S O -O N U m > a) N L m O -°Q m �.'C. U O O E V ° m O U Co a) m C m
® LL Q o) to o[� a) -cow C 4)=c o pU in m c CO N E oc)E m E me co °-
dJ y N c M a c«O ri E o c CM a 'o.- co y O m o 3 C E o N ti
i c m Q c_ �._ c mZ'c vi a? a)� a c.c7 N m m
1 1 om0 in m °- ac°i >'�co C7 o ca cO U Y m y Q) - m -U U a ca y o U m
LU W c .N a >M 0- (Z)) c o a-= c m LLB o C E o N-'o'u - 7 c N-
'E m > y 15 -F- 7 ch = m a o W > a Q 3 c) m U m
m LTE °Cr oa, NQo a) EaQa) > m Zco N dz m0� m.c� LU
W Em ao o'C` oto`° cd ° oo a)� E(na co °oo ? u7, CO 70 °m
N Q 0-O m._O co_y L E Q d c LT E C ami H _ c" o a'o Cl m co N T
i N C y-o Q m U C V)F- 'C c C U.N Q a (O W O m N C m L m ° E
Cj v N O. c' _ m p c E m :o c-. ; m y S LO LL r m c
m aN) o NCO=Ncm ° � C °-moo =om � a`)ccoo > N E > acc °L - ao
�� V a N�--_ ~LL O m m a l3 C o t m m U Lag x 7 m N 3 N
d m O E U w m LL cp U 'O m c- m O
a m a a v aci umi~ 4N) c Q.a c ci E cm Q 3 c c C) a) p p m o y7
C 3 L y y c U a E cu u c C �'•a m C m Q c C E y Q O ao N -O 7 U m'O N f
°- U aN) —°_ -C inaQ m mQ Q) ma T° v o E U 2c o_m.c � E.N CD
N D 0)U L CO .!�U 7 U m °. 01,-.N CO O C Cn C C m m C C.Ln U O
j E m pQ U S °c) Q o.o> y'w Qz C a Es Q c N E aci'� c`°n N EO an d
® E Y c 0)0 -0 0 in roc E' a) U v o o Q F- m morn E o cmo > m m c 0.0 cc® (� N E LL C L m U-0=.N (� O CO m C Z`'C Q N cmn O Q c N LL C y.° a"O C
T-6 c O) Q E O L U-a a.S a7 w m •- ? m 0 T )ch N a) m m m o m y o'-
W T� (D mQa oQ cH°? c iii UQQ c c _ m Co LT7�� aci cab o N E - o cv
m m U C
♦q 0 m V Q m°m N CO 3 Q-NO QE w O p O-O -Ep E D C LL• C N L 'N p m-C y L_ E C,j
cc° o c mO 3�c`n)cn> 0)o m m aa'�¢ Q a) oH-mc mm`s o ac) oi8 cr o Sm
i a U a a) p C m cm E-o.-.� -o c .> r ca v N m � o �
T� rc mo'c a>iUr.NmLL� c XQ N- a) m c °-'� T co C ) a)-r- E p ° c N0
I ® 2 N U E o o.� LL c> rn U E CU -0 ai p o ° c W-o m c% E (n7�_ m o'� m o.N din
0 m Q LL Q C U o N i6 C' U m W U m m U E. N T Y U.N
i m L ^ m' - m L m N ° co N > c •o t m -° E m m E m 0 N E a c
Z La
CU u D~cn.��c o: Ua a) 2W o y U�� aai cc6 p a m `� g
Tm
0o cnEm cco
O co rn L y L LT - N U w m O Y U >
o 0i c=cno m c r�c Q~�c� UcLl cc ALL ULL� �i�c � c °)a) c c� E am
CD •, g Z co c F- o o p 0)M Q y L.c3 m'E io U L m c m m m c)' > a`) o m e
> d E _�,�'-Upa•N~ -0 am)QF`-�-6 c=iO am) °—) vii y N �rz
Lm., a) �M E m m �
m U m >, O m ` m s a) > m m c N U m E m W e °'� O �O ° N N L N c
3 O ¢ 3 c E m E a m y v �' ` N E _`o c m
U) >,aa))m M =c a c0ac �m 2 U 0 -2 m a m m= �aa) m m e co LL U 3 m m(n
c c U m I c w m . U L m m L CU a o co y N y °
m e o E 0 ) o > C 0 N mC Q.°- c cmi L c Co Q m a�i L FLm ro moo m y ami c ch cc) o E c
O m Q C F-4) m-p a) F- L L« a M _ m
L3 >a.c F- mLr) `°Vic° O Z p m c¢ cm �L V Q� F-a� F-. pm Co c o c
c m- °LO >.c c m o m C c 0 m Q N O > 0 ° °) E m._a m 7 m
Ej ° ON c U CD S a) E- m yQ -2cD m Nu- 0 c)� °� F- U E o E o in EU v
O 7 co 6) m E^ m y C C F`- a) r U N m cm m C
CL-0 -p O
0) 0_O d U N co a= O Q U m N ro N a) 2.0 -O LL to O« N Lmn:3 0