2016-4039 Ordinance •
ORDINANCE NO. 2016-4039
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER
110 OF THE CODE OF THE CITY OF MIAMI BEACH ENTITLED
"UTILITIES," ARTICLE IV, ENTITLED "FEES, CHARGES,
RATES AND BILLING PROCEDURE," AT SECTION 110-166,
ENTITLED "SCHEDULE OF WATER RATES AND TAPPING
CHARGES;" AT SECTION 110-168, ENTITLED "SANITARY
SEWER SERVICE CHARGE" ARE TO BE AMENDED; AND
CREATING SECTION 110-171, ENTITLED "RATE INDEXING,"
IN ORDER TO ADJUST AND MODIFY HOW WATER AND
SANITARY SEWER RATES ARE CALCULATED AND
APPLIED; AND ALSO AMENDING APPENDIX A TO
CHAPTER110, ENTITLED "FEE SCHEDULE" TO INCREASE
AND RESTRUCTURE THE WATER RATES AND SANITARY
SEWER SERVICE CHARGES IMPOSED BY THE CITY
PURSUANT TO SECTIONS 110-166, 110-168, AND 110-171;
PROVIDING FOR CODIFICATION; REPEALER;
SEVERABILITY; AND AN EFFECTIVE DATE.
WHEREAS, Chapter 110, of the Code of the City of Miami Beach, entitled "Utilities,"
establishes the City's potable water rates and how to calculate the rate and apply the rate to all
water users and the sanitary sewer rates and how to calculate the rate and apply the rate to all
sanitary sewer users; and
WHEREAS, the City's utility rates for water and sanitary sewer services are structured to
collect the necessary revenues to meet annual operating and maintenance costs of the water
and sanitary sewer infrastructure, to cover debt service for water and sewer bonds, to fund
capital improvements to the City's utility system infrastructure, maintain adequate operating fund
and capital reserves, and to pay Miami-Dade County Water and Sewer Department (WASD) for
wholesale water purchased and for the treatment of the collected City sewage; and
WHEREAS, WASD has historically raised the rates for wholesale water and sanitary
sewer to recover its cost of providing service and it is anticipated by WASD that it will continue
to raise the rates for service due operating expenditures and debt service increases and the
need to fund future capital improvements; and
WHEREAS, the City adopted Resolution No. 95-21585, as amended and supplemented
from time to time, which authorized the issuance of utility revenue bonds to finance capital
improvements to the utility system (herein after"System")which included a requirement that the
revenues of the System shall at all times meet the rate covenant requirements as delineated in
such resolution for the protection of the bondholders; and
WHEREAS, in addition to the above WASD rate increase, the City Commission directed
that the City review its utility rates and method of calculating the fees under Chapter 110; and
WHEREAS, the City retained the firm of Public Resources Management Group, Inc.
(PRMG) to assist in determination of revised water and sanitary sewer rates in order to meet the
projected expenditure and funding needs of the City's utility system as identified in the Fiscal
Year 2016/2017 budget; and
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WHEREAS, PRMG recommended revised rates and rate policies to be more consistent
with industry norms in the application of rates; promote water conservation and the most
efficient use of potable water; initiate a rate structure that over time will more adequately recover
the cost of service and promote the overall sustainability of the utility system; provide the ability
to adjust rates due to changes in the cost of wholesale water and wastewater service as
provided by WASD; and provide the ability to index the rates for inflation and other expenses to
provide utility operating margins to fund capital improvements and the repayment of debt issued
by the City in support of the funding of capital improvements; and
WHEREAS, in order to properly fund the City's water and sewer program, and to
implement the PRMG rate structure findings, so that the city can not only take into account the
actual WASD rate increases, but, also the other PRMG recommendations due to continued
inflation on the cost of providing water and sanitary sewer by the City, the City seeks to amend
Chapter 110, to codify and pass through to the residents the WASD rate increases; to index
rates annually to pass through to the residents increases in costs due to inflation on the cost of
operations and maintenance; and to incorporate an adjustment for operating expenses would
serve to keep the rate stabilization fund healthy and user fees consistent with the cost of
providing service; and
WHEREAS, during the August 29, 2014 meeting of the Finance and Citywide Projects
Committee (FCWPC), the Committee recommended approval of the pass through of the
respective water and sewer rate increases, as well as establishing a policy of automatically
implementing the percentage increases of water and sewer rates that are enacted by Miami-
Dade WASD to the entire fund without further Commission action; and
WHEREAS, the Committee also directed the Administration to follow up with all
appropriate administrative actions to assure that fees are commensurate with the cost of service
provided to the Satellite Cities; and
WHEREAS, the amendments set forth below are necessary to accomplish the above
objectives.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. Chapter 110 of the Miami Beach City Code entitled "Utilities," Article IV, entitled
"Fees, charges, rates and billing procedure," at section 110-166, entitled "Schedule of water
rates and tapping charges;" Section 110-168, entitled "Sanitary sewer service charge," and
Section 110-171, entitled "Rate indexing" are hereby amended as follows:
* * *
Chapter 110— UTILITIES
* * *
DIVISION 2. - RATES, FEES AND CHARGES
* * *
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Sec. 110-166. - Schedule of monthly water user rates and tapping charges.
(a) There is hereby imposed, upon all premises within the city connected to or using the
facilities of the city's potable water system, a monthly water user rate. Eve
service shall have premise connected to or using the facilities of the city's potable water
system shall be billed monthly user rates consisting of: i) a base facility charge which serves
as the monthly minimum service charge on each service installed, varying with and based
upon the size of the service pipe required and meter installed in accordance with the rules of
the public works department; ii) a water consumption charge; and iii) a purchased water
pass-through adiustment rate to recover the cost of purchased wholesale water as billed
.
enacted by the Miami-Dade Water and Sewer Department (WASD). This minimum The
monthly water user rates charged for service shall be in accordance with the consumer
applicability provisions and the corresponding schedule set forth in Appendix A,in--appendix
A and shall entitle the consumer to have supplied through the meter the number of gallons
of water set forth in appendix Aas may be adiusted from time to time based on the
provisions of the section. There shall not be a rental charge on meters.
The monthly water user rates shall be charged to each individually metered water consumer
each month in accordance with the following applicability provisions:
(1) Individual Metered Residential Service — applicable to all consumers that
represent service to a residential dwelling unit that is individually metered for
potable water service that is not classified as irrigation service.
(2) Master Metered Multifamily Residential Service - applicable to all consumers
that represent service to a residential dwelling units that is master-metered (more
than one residential dwelling unit being served by the water meter measuring
service to the premise) which would include, but not be limited to, condominiums,
apartments, and duplexes, that are not classified as irrigation service.
(3) Non-residential Service — Applicable to all water customers that are not
classified as individually metered residential service, master-metered residential
service, or irrigation service which primarily represents service to commercial
customers public authorities, and institutional customers.
(4) Residential Irrigation Service — Applicable to all residential dwelling units that
are individually metered for domestic water use (reference Sec. 110-166 (a)(i)) and
which have a separate meter for irrigation service or other similar water use.
(5) Master Metered Multifamily Residential Irrigation Service — applicable to all
master metered residential customers that are individually metered for domestic
use (reference Sec. 110-166 (a)(ii)) and which have a separate meter for irrigation
service or other similar water use.
(6) Non-residential Irrigation Service — applicable to all customers classified as
non-residential that are individually metered for domestic use (reference Sec. 110-
166 (a)(ii)) and which have a separate meter for irrigation service or other similar
water use.
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(b)To the extent practical, all water delivered to a consumer shall be metered and shall be
billed the water consumption charge and the purchased water pass-through charge, which
rate shall be prorated for each 100 gallons in the event of increments of less than 1,000
gallons for all consumers of water. With respect to the billing for water use, the water
consumption rates and the purchased water pass-through rate as defined in this section
may be added together for rate application or billing purposes on a consumers bill.
(c) Pass-Through of Purchased Wholesale Water Charges. The Purchased Water Pass-through
Rate, which is applied to all water consumers being billed for potable water service, shall be
increased or decreased by the city by applying a pass-through adjustment factor for any
change in the average annual rates charged to the city for wholesale potable water
purchased from WASD (the "Water Pass-Through Adjustment") to the Purchased Water
Pass-through Rate charged by the city.
(1) Adjustment Schedule. The implementation of the adjustment to the Purchased
Water Pass-Through Rate for any month that a change in wholesale potable water
rates by WASD is effectuated ("Water Cost Recovery") shall occur without a public
hearing. Water Cost Recovery shall be employed each time that WASD adjusts the
average annual wholesale potable water rates that are billed to the city. Any
adjustment to the Purchased Water Pass-Through Rate based on the determination of
the change in wholesale rates shall be implemented in the month immediately following
the determination of the Purchased Water Pass-Through Adjustment. The Purchased
Water Pass-Through Rate as shown on Appendix A and as may be further adjusted
automatically in the future by the implementation of the provisions of this section and
which are then in effect shall be increased or decreased by the city by applying a
Purchased Water Pass-through Adjustment established in accordance with this
subsection to the then effective Purchased Water Pass-Through Rate prior to such
application. Nothing herein shall preclude the city from making additional changes to
the monthly water user rates for service.
(2) Applicability of Purchased Water Rates. The Purchased Water Pass-Through Rate
shall be in addition to any water consumption rates for all retail and wholesale
customers that are billed for potable water service by the city. The following are the
customers that shall be subject to the application of the Purchased Water Pass-through
Rate and shall be subject to the pass-through for changes in the cost of purchased
water from WASD (the "Applicable Customers"):
(i) The retail water customer classes that are billed the water consumption
charge referenced in this section.
(ii) All separate utilities or local governments that may receive wholesale potable
water service provided by the city currently or in the future which is not
considered as retail customers.
(3) Calculation of Purchased Water Pass-Through Adjustment. The Purchased Water
Pass-Through Adjustment shall be calculated using the following formula:
PWPTA = ((IWWC— PWWC)* (1 / (1- (DF+T+O)) )
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Where:
PWPTA = The Purchased Water Pass-Through Adjustment to be used for
Water Cost Recovery to determine the monetary adjustment in the
Purchased Water Pass-through Rate to be applied the Applicable
Customers. The PWPTA represents the respective dollar increase or
decrease to account for changes in wholesale potable water rates
charged by WASD to the city that is added or subtracted,
respectively to the Purchased Water Pass-Through Rate.
IWWC = The increased annual average wholesale or purchased water rate
charged by WASD expressed on a dollar per 1,000 gallons basis that
became effective for the month immediately after the PWWC.
PWWC = The prior annual average wholesale or purchased water rate charged
by WASD expressed on a dollar per 1,000 gallons basis immediately
prior to the billing of the adjusted wholesale or purchased water rate
defined as the IWWC.
DF = The fee paid to the Department of Environmental Resources
Management (DERM) which is based on a percent of rate revenues
billed by the city.
T = Any and all taxes or tax equivalents that may be paid by the water
system that is based on revenues billed by the city, including any
payment in lieu of tax imposed by the city on its water system.
0 = Any and all charges that may be paid by the city on behalf of the
water system that is based on revenues billed by the city, including
any funding of renewals and replacement fund deposits that is
determined as a percent of revenues billed.
(4) Determination of Purchased Water Pass-Through Rate. The Purchased Water
Pass-Through Rate shall be determined based on the addition or subtraction of the
Purchased Water Pass-Through Adjustment to the rates in effect immediately
preceding such adjustment and shall be rounded to the nearest cent. The Purchased
Water Pass-Through Adjustment application shall be based on the following formula:
APWTR = PWPTR + PWPTA
Where:
APWTR = The Adjusted Purchased Water Pass-Through Rate that is to be
placed in effect after the application of the Purchased Water Pass-Through
Adjustment to all Applicable Customers billed for potable water service.
PWPTR = The Purchased Water Pass-Through Rate in effect immediately prior
to the application of the PWPTA.
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PWPTA = The Purchased Water Pass-Through Adjustment as determined as a
result of a change in wholesale water rates as billed by WASD.
(5) An example of the calculation of the determination of the Purchased Water Pass-
Through Adjustment and the corresponding change to the Purchased Water Pass-
Through Rate is illustrated in the following table:
Line Formula
No. Reference Amount
Prior Wholesale Purchased Water Rate ($/1,000 gallons) 1 PWWC $1.7350
Increased Wholesale Purchased Water Rate($/1,000 gallons) 2 IWWC $1.7700
Percent Change in Wholesale Purchased Water Rate 3=(2-1)/1 2.02%
Adjustments
Department of Environmental Resources Management 4 DF 8.00%
Taxes and Tax Equivalents 5 T 0.00%
Other Adjustments 6 0 0.00%
Adjustment Factor= 1/(1-(D+T+O)) =1/0.92 7 1.08696
Purchased Water Pass-Through Percent Adjustment 8=(3"7) 2.20%
Prior Purchased Water Pass-Throu.h Rate './1 000 •allons 9 PWPTR $1.93
Purchased Water Pass-Through Adjustment 10=9*8 PWPTA $0.02
Adjusted Purchased Water Pass-Through Rate ($/1,000 11=9+10 APWTR $1.95
gallons)
(d) Pass-Through Adjustment Charges. The Applicable Rates as shown on Appendix A and as
may be further adjusted automatically in the future by the implementation of the provisions
of this section and which are then in effect shall be increased or decreased by the city by
applying a pass-through adjustment factor established in accordance with this subsection
(the "Pass-Through Factor") to the then effective Applicable Rates for increases or
decreases in the Applicable Costs. All Applicable Rates so adjusted (the "Pass-Through
Rates") shall be charged by the city's water system.
(1) Adjustment Schedule. The implementation of Pass-Through Rates for any month
associated with a change in Applicable Costs ("Cost Recovery") shall be placed into
effect automatically and shall occur without a public hearing. Nothing herein shall
preclude the city from making additional changes to the monthly water user rates for
service.
(2) Applicable Rates. The water base facility, water consumption charges, and
Purchased Water Pass-through Rate referenced in subsection 110-166(a) shall be
subject to Cost Recovery.
(3) .A pplicable Costs. Only the following cost categories qualify as Applicable Costs for
Cost Recovery:
(i) All increases or decreases in the percentage charge of the Department of
Environmental Resources Management.
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(ii) All increases or decreases in the application of any tax or tax equivalents,
including any payment in lieu of tax imposed by the city on its water system.
(iii) All other cost increases incurred by the water system as a result of any
regulatory changes or requirements imposed by any regulatory agency
having jurisdiction over the utility system operations (a "Regulator")
(4) Calculation of Pass-Through Factor. The Pass-Through Factor shall be calculated
using the following formula:
PTF = ARR/ ER
Where:
PTF = The Pass-Through Factor used for Cost Recovery to determine
the monetary adjustment in the Applicable Rates. The PTF represents the
estimated annual increase in the Applicable Costs, expressed as a percentage of
the most recent historical revenues derived from the Applicable Rates for the most
recently completed fiscal year.
ARR = Additional Required Revenue equal to the estimated annual
change in the Applicable Costs that will affect the overall cost of providing water
system services as determined by the city.
ER = The total actual revenues earned by the Enterprise System from
the Applicable Rates for the potable water system as reported in the city for the
most recently completed fiscal year.
(5) Determination of Pass-Through Rates. The Pass-Through Rates shall be
determined based on the Pass-Through Factor applied uniformly to the Applicable
Rates in effect and shall be rounded to the nearest cent. The Pass-through
application shall be based on the following formula:
PTR = (AR)(1 + PTF)
Where:
PTR = The Pass-Through Rates that are to be placed in effect for the
current fiscal year through application of the Pass-Through Factor.
AR = The Applicable Rates in effect immediately prior to the application
of the Pass-Through Factor.
PTF = The Pass-Through Factor as determined by the city to recover the
net change in Applicable Costs.
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(e) On all water supply service, each month shall be a complete period in itself, and no excess
consumption of water during one month shall be charged against the minimum service
charge or be added to the consumption of any other month.
(1) Exception. The provisions contained in this subsection (e) shall not apply to an
owner or consumer of a single-family home that participates in the "budget billing"
process of the utility billing system. The "budget billing" process allows owners or
consumers to pay the same monthly amount for water and sewer consumption
based on the average of the previous annual consumption history. If the variance in
actual consumption becomes more than 50 percent of the annual consumption
average, the budgeted amount would be recalculated or the budget billing would
cease and regular billing would commence. To be eligible to use this "budget billing"
feature, the owner and/or consumer would have to submit an application to the
finance department for budget billing. After the approval of the finance department,
the budget billing would commence and would only cease upon written request by
the owner or consumer or the failure to pay the budget amount when the payment is
due.
(f) A monthly base facility charge as shown on Appendix A shall be billed to all privately owned
fire-protection systems and equipment connected to the city water system in accordance
with the size of the service line connecting the private system to the city's system. All costs
of providing fire sprinkler service, including the service lateral, meter vault and detector
check meter shall be the applicant's responsibility. If any consumer shall connect any
appurtenance other than sprinkler heads to a fire service line, that consumer shall pay all
connection-related charges set out in this section and the monthly water service charges
identified in this section regarding service to customers delineated under the general service
designation.
(g) Upon the application of the owner or consumer for water service on the premises to which
there has not been made any previous service for water, the tapping charges as specified in
appendix A shall be made to cover the cost of the tap and the installation of the service to
the property line of the lot to be supplied with water service.
(he) Every owner or consumer making an application for water service shall be required to
make a deposit with the public works department called a guarantee of payment deposit.
The amount of such deposit shall be according to the size of the service, as specified in
appendix A. If the owner or consumer making such deposit wishes the service to be
discontinued, the guarantee of payment deposit shall be refunded less outstanding charges
for water, sewer, stormwater or garbage and waste. If at any time the total service charges
for a given account exceed the amount of the deposit, the city reserves the right to demand
an additional deposit up to four times the amount of any previous monthly bill on that
service.
(if) A request by the owner or consumer to have the water meter re-read for validation of the
correctness of a meter reading will result in a fee in accordance with the schedule set forth
in appendix A. This fee will be charged only if the re-read validates the accuracy of the
reading in question.
Qg)A request by the owner or consumer to have a special water meter read at a time other than
a normally scheduled read date as set by the utility will result in a fee in accordance with the
schedule set forth in appendix A.
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(kh) Meter/meter equipment and City of Miami Beach utility property servicing a premises
found damaged, destroyed or missing will be charged to the owner or consumer in
accordance with the schedule set forth in appendix A.
(I+) A request by the owner or consumer to have a field visit by a technician. This fee will be
charged only if the technician finds that the problem/issue is not that of the utility.
Sec. 110-168. — Schedule of monthly Ssanitary sewer user rates. service charge.
(a) There is hereby imposed, upon all premises within the city connected to or using the
facilities of the city's sanitary sewer system, a monthly sanitary sewer service charge user
rate. --- - - - - - - - - - - -- - • - --
which charge shall be prorated for each 100 gallons of increments of less than 1,000
amount of such sanitary sewer service charge shall be shown as a separate item on such
water bills and shall be paid by the owner, tenant or occupant in possession of such
premises at the same time and in the same manner as is provided in this article for the
- - •- -- - - - - !-__ ' ' - 0 - -- ---
applied to consumption metered through irrigation meters. Every premise connected to or
using the facilities of the city's sanitary sewer system shall be billed monthly user rates
consisting of:
(1) a base facility charge which serves as the monthly minimum service charge on
each service installed, varying with and based upon the size of the meter installed
in accordance with the rules of the public works department;
(2) a sanitary sewer consumption charge; and
(3) purchased sanitary sewer pass-through adjustment rate to recover the cost of
purchased wastewater treatment and disposal services as billed by WASD.
The monthly sewer user rates charged for service shall be in accordance with the consumer
applicability provisions and the corresponding schedule set in Appendix A as may be
adjusted from time to time based on the provisions of the section.
(b) The billed sewer consumption shall be based on the metered water delivered to the
consumer for which the monthly water user rates apply. The provisions of this section shall
not be applicable to any water sold and delivered through separate meters measuring water
delivered and consumed solely for swimming pools, lawn sprinkler systems, cooling towers
or other purposes not requiring the use of sanitary sewer system facilities of the city. The
system facilities of the city.
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The monthly sanitary sewer user rates shall be charged to each consumer each month in
accordance with the following applicability provisions;
(1) Individual Metered Residential Service — Applicable to all consumers that
represent service to a residential dwelling unit that is individually metered for water
service.
(2) Master-metered Multifamily Residential Service — Applicable to all sewer
consumers that represent service to a residential dwelling units that is master-
metered (more than one residential dwelling unit being served by the water meter
measuring service to the premise) which would include, but not be limited to,
condominiums, apartments, and duplexes.
(3) Non-residential Service — Applicable to all sewer customers that are not
classified as individually metered residential service or master-metered residential
service which primarily represents service to commercial, public authorities, and
institutional customers.
(b) To the extent practical, all sanitary sewer service provided to a consumer shall be based on
the metered water delivered to the premise, exclusive of water-only service which is
separately metered by the city, and shall be billed the sewer consumption charge and the
purchased sanitary sewer pass-through charge, which rate shall be prorated for each 100
gallons in the event of increments of less than 1,000 gallons for all consumers being billed
for sanitary sewer service. With respect to the billing for sanitary sewer use, the sewer
consumption rates and the purchased sanitary sewer pass-through rate as defined in this
section may be added together for rate application or billing purposes on a consumers bill.
(c)Pass-Through of Purchased Wholesale Sanitary Sewer Charges. The Purchased Sanitary
Sewer Pass-through Rate, which is applied to all sanitary sewer consumers being billed for
sewer service, shall be increased or decreased by the city by applying a pass-through
adjustment factor for any change in the rates charged to the city for wholesale wastewater
treatment and disposal services purchased from WASD (the "Sanitary Sewer Pass-Through
Adjustment") to the Purchased Sewer Pass-through Rate charged by the city.
(1) Adjustment Schedule. The implementation of the adjustment to the Purchased
Sanitary Sewer Pass-Through Rate for any month that a change in wholesale
sanitary sewer rates by WASD is effectuated ("Sewer Cost Recovery") shall occur
without a public hearing. Sewer Cost Recovery shall be employed each time that
WASD adjusts the average annual wholesale sanitary sewer rates that are billed to
the city. Any adjustment to the Purchased Sanitary Sewer Pass-Through Rate
based on the determination of the change in wholesale rates shall be implemented
in the month immediately following the determination of the Purchased Sanitary
Sewer Pass-Through Adjustment. The Purchased Sanitary Sewer Pass-Through
Rate as shown on Appendix A and as may be further adjusted automatically in the
future by the implementation of the provisions of this section and which are then in
effect shall be increased or decreased by the city by applying a Purchased
Sanitary Sewer Pass-through Adjustment established in accordance with this
subsection to the then effective Purchased Sanitary Sewer Pass-Through Rate
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prior to such application. Nothing herein shall preclude the city from making
additional changes to the monthly sanitary sewer user rates for service.
(2) Applicability of Purchased Sanitary Sewer Rates. The Purchased Sanitary
Sewer Pass-Through Rate shall be in addition to any sewer consumption rates for
all retail and wholesale customers that are billed for wastewater treatment and
disposal services by the city. The following are the customers that shall be subject
to the application of the Purchased Sanitary Sewer Pass-through Rate and shall be
subject to the pass-through for changes in the cost of purchased wastewater
treatment and disposal services from WASD (the "Applicable Customers"):
(i) The retail water customer classes that are billed the sewer consumption
charge referenced in this section.
(ii)All separate utilities or local governments that may receive wholesale
sewer service provided by the city currently or in the future which is not
considered as retail customers.
f3) Calculation of Purchased Sanitary Sewer Pass-Through Adjustment. T he
Purchased Sanitary Sewer Pass-Through Adjustment shall be calculated using the
following formula:
PSPTA = ((IWWC— PWWC) * (1 / (1- (DF+T+O)) )
Where:
PSPTA = The Purchased Sanitary Sewer Pass-Through Adjustment to be
used for Sewer Cost Recovery to determine the monetary
adjustment in the Purchased Sanitary Sewer Pass-through Rate
to be applied the Applicable Customers. The PSPTA represents
the respective dollar increase or decrease to account for changes
in average annual wholesale wastewater rates charged by WASD
to the city that is added or subtracted, respectively to the
Purchased Sanitary Sewer Pass-Through Rate.
IWSC = The increased average annual wholesale or purchased sanitary
sewer rate charged by WASD expressed on a dollar per 1,000
gallons basis that became effective for the month immediately
after the PWSC.
PWSC = The prior average annual wholesale or purchased sanitary sewer
rate charged by WASD expressed on a dollar per 1,000 gallons
basis immediately prior to th e billing of the adjusted wholesale or
purchased sewer rate by WASD.
DF = The fee paid to the Department of Environmental Resources
Management (DERM) which is based_on a percent of rate
revenues billed by the city.
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T = Any and all taxes or tax equivalents that may be paid by the sewer
system that is based on revenues billed by the city, including any
payment in lieu of tax imposed by the city on its sanitary sewer
system.
0 = Any and all charges that may be paid by the city on behalf of the
sanitary sewer system that is based on revenues billed by the city,
including any funding of renewals and replacement fund deposits
that is determined as a percent of revenues billed.
(4) Determination of Purchased Sanitary Sewer Pass-Through Rate. The
Purchased Sanitary Sewer Pass-Through Rate shall be determined based on the
addition or subtraction of the Purchased Sanitary Sewer Pass-Through Adjustment
to the rates in effect immediately preceding such adjustment and shall be rounded
to the nearest cent. The Purchased Sanitary Sewer Pass-Through Adjustment
application shall be based on the following formula:
APSTR = PSTR + PSPTA
Where:
APSTR = The Adjusted Purchased Sanitary Sewer Pass-Through Rate that
is to be placed in effect after the application of the Purchased
Sewer Pass-Through Adjustment to all Applicable Customers
billed for wastewater service.
PSTR = The Purchased Sanitary Sewer Pass-Through Rate in effect
immediately prior to the application of the PSPTA.
PSPTA = The Purchased Sanitary Sewer Pass-Through Adjustment as
determined as a result of a change in wholesale wastewater rates
as billed by WASD.
(5) An example of the calculation of the determination of the Purchased Sanitary
Sewer Pass-Through Adjustment and the corresponding change to the Purchased
Sanitary Sewer Pass-Through Rate is illustrated in the following table:
Page 12
Line Formula
No. Reference Amount
Prior Wholesale Purchased Sanitary Sewer
Rate './1 000 •allons 1 PWSC '.2.7879
Increased Wholesale Purchased Sanitary Sewer
Rate '.11 000 •allons 2 IWSC '.2.9477
Percent Change in Wholesale Purchased Sanitary Sewer
Rate 3=(2-1)/1 5.73%
Adjustments
De•artment of Environmental Resources Mana•ement 4 DF 8.00%
Taxes and Tax Equivalents 5 T 0.00%
Other Adjustments 6 0 0.00%
Adjustment Factor = 1/(1-(D+T+O)) =1/0.92 7 1.08696
Purchased Sewer Pass-Throu•h Percent Ad'ustment 8=(3*7) 6.22%
Prior Purchased Sanitary Sewer Pass-Through
Rate '41 000 •allons 9 PSTR '.3.50
Purchased Sanita Sewer Pass-Throu•h Ad'ustment 10=9*8 PS PTA $0.22
Adjusted Purchased Sanitary Sewer Pass-Through
Rate '41 000 •allons 11=9+10 APSTR '.3.72
(d) Pass-Through Adjustment Charges. The Applicable Rates as shown in Appendix A and as
may be further adjusted automatically in the future by implementation of the provisions of
this section and which are then in effect shall be increased or decreased by the city by
applying a pass-through adjustment factor established in accordance with this subsection
(the "Pass-Through Factor") to the Applicable Rates for increases or decreases in the
Applicable Costs. All Applicable Rates so adjusted (the "Pass-Through Rates") shall be
charged by the city's sanitary sewer system.
(1) Adjustment Schedule. The implementation of Pass-Through Rates for any
month associated with a change in Applicable Costs ("Cost Recovery") shall be
placed into effect automatically and shall occur without a public hearing. Nothing
herein shall preclude the city from making additional changes to the monthly
sanitary sewer user rates for service.
(2) Applicable Rates. The sewer base facility, sewer consumption charges, and
Purchased Sewer Pass-through Rate referenced in subsection 110-167(a) shall be
subject to Cost Recovery.
(3) Applicable Costs. Only the following cost categories qualify as Applicable Costs
for Cost Recovery:
(i) All increases or decreases in the percentage charge of the Department
of Environmental Resources Management.
Page 13
(ii) All increases or decreases in the application of any tax or tax
equivalents, including any payment in lieu of tax imposed by the city on its
sanitary sewer system.
(iii) All other cost increases incurred by the sanitary sewer system as a
result of any regulatory changes or requirements imposed by any regulatory
agency having jurisdiction over the utility system operations (a "Regulator").
(4) Calculation of Pass-Through Factor. The Pass-Through Factor shall be
calculated using the following formula:
PTF = ARR/ ER
Where:
PTF = The Pass-Through Factor used for Cost Recovery to determine
the monetary adjustment in the Applicable Rates. The PTF
represents the estimated annual increase in the Applicable Costs,
expressed as a percentage of the most recent historical revenues
derived from the Applicable Rates for the most recently completed
fiscal year.
ARR = Additional Required Revenue equal to the estimated annual
change in the Applicable Costs that will affect the overall cost of
providing sanitary sewer system services as determined by the
city.
ER = The total actual revenues earned by the Enterprise System from
the Applicable Rates for the sanitary sewer system as reported in
the city for the most recently completed fiscal year.
(5) Determination of Pass-Through Rates. The Pass-Through Rates shall be
determined based on the Pass-Through Factor applied uniformly to the Applicable
Rates in effect and shall be rounded to the nearest cent. The Pass-through
application shall be based on the following formula:
PTR = (AR)(1 + PTF)
Where:
PTR = The Pass-Through Rates that are to be placed in effect for the
current fiscal year through application of the Pass-Through Factor.
AR = The Applicable Rates in effect immediately prior to the application
of the Pass-Through Factor.
PTF = The Pass-Through Factor as determined by the city to recover the
net change in Applicable Costs.
* * *
Page 14
Sec. 110-171 Rate Indexing.
(a) Except as otherwise provided in this subsection, the monthly user rates established in
subsections 110-167(a) for the water system and 110-168(a) for the sanitary sewer system
(collectively, the "Applicable Rates") as shown on Attachment A and as may be further
adjusted automatically in the future by implementation of the provisions of this section and
which are then in effect shall be increased by the City each year by applying the price index
factor established for that year in accordance with this subsection (the "Price Index Factor")
to the then Applicable Rates to offset the effects of inflation on the cost of operating and
maintaining the system. The Rate Index shall never be less than 0.0%. All Applicable Rates
so adjusted (the "Indexed Rates") shall be implemented by the City.
(1) Adjustment Schedule. Each implementation of Indexed Rates ("Rate
Indexing") shall be placed into effect automatically and shall occur without a public
hearing. Rate Indexing shall not be employed more than once in any fiscal year.
Any Indexed Rates based on the operating and maintenance expenses for the
most recently completed fiscal year shall be implemented as of October 1st of the
subsequent fiscal year. Nothing herein shall preclude the City from making
additional changes to the water or wastewater rates for service.
(2) Applicable Rates. The water base facility charge and water consumption
charges referenced in subsections 110-167(a) for the water system and sanitary
sewer base facility charge and sanitary sewer consumption charges referenced in
subsections 110-168(a) for the sanitary sewer system shall be subject to Rate
Indexing. The purchased water pass-through rate and the purchased sanitary
sewer pass-through rates as referenced in the respective subsections shall not be
subject to Rate Indexing.
(3) Calculation of Price Index Factor. The Price Index Factor shall be determined
based on the actual reported financial results as contained in the annual
comprehensive annual financial report and the records for the most recently
completed fiscal year preceding the determination of the Rate Index (the
"Calculation Period"). By way of example, the Rate Index to be applied on October
1, 2017 would be based on the actual financial results for the twelve months ended
September 30, 2016. The Price Index Factor shall be calculated using the
following formula:
PIF = ((OP - (PWE + PSE + PT)1*EPI)/ HER - PTR)/ * (1 /(1- (DF+T+O)))1
Where:
PIF = The Price Index Factor used for Rate Indexing to determine the monetary
adjustment in the Applicable Rates. The PIF represents the estimated
increase in operation and maintenance expenses during the Calculation
Period that is subject to inflation, expressed as a percentage of Applicable
Rates revenues earned during the Calculation Period. The amount of the
Rate Index increase is a component of any additional revenue required by
the Utility System to ensure compliance with the Bond Covenants and fiscal
requirements of the utility system (the "Additional Required Revenue").
Page 15
OP = The total expenses, paid or accrued, for the operations, maintenance, and
repair of the water and wastewater systems as reported in the
comprehensive annual financial report and other financial records for the
city for the Calculation Period after excluding: (a) allowances for
depreciation and amortization expense; and (b) capitalized salaries and
other overhead related to the city's Capital Improvement Program (CIP).
Such total expenses as adjusted for the stated exclusions are hereinafter
referred to as the "Operating Expenses".
PWE = That component of the Operating Expenses (OP) that represent the cost of
purchased water service from WASD for the Calculation Period, adjusted to
include the fee paid to the Department of Environmental Resources
Management (DERM) which is based on a percent of rate revenues billed
by the city for this component of expense.
PSE = That component of the Operating Expenses (OP) that represent the cost of
purchased sanitary sewer service from WASD for the Calculation Period,
adjusted to include the fee paid to the Department of Environmental
Resources Management (DERM) which is based on a percent of rate
revenues billed by the city for this component of expense.
PT = The sum of all other components of the Operating Expenses (OP) for the
Calculation Period for which increases in those components may be
recovered separately as a pass-through adjustment pursuant to
subsections 110-167(d) for the water system and 110-168(a) for the
wastewater system.
EPI = The Consumer Price Index—All Urban Consumers, Miami-Fort Lauderdale,
as published by Bureau of Labor Statistics (the "Effective Price Index") as
reported for the month of April of the current year compared to the index
reported for the immediately preceding month of April. By way of example,
the Effective Price Index published by Bureau of Labor Statistics — All
Urban Consumers, Miami-Fort Lauderdale, as of April 2015 was 245.195
and as of April 2016 was 248.741 or a change of 1.446% which shall be
applied to the applicable Operating Expenses reported for Fiscal Year
2015.
ER = The total actual revenues earned by the Utility System from the Applicable
Rates as reported in the comprehensive annual financial reports and other
financial records for the Calculation Period.
PTR = The total actual revenues earned by the Utility System during the
Calculation Period from the application of i) the Purchased-Water Pass-
Through Rate; ii) the Purchased-Wastewater Pass-Through Rate; and iii)
any other expense that was categorized as a pass-through expense and
separately evaluated.
(4) Price Index calculation example.
(i) An example of the calculation of the Price Index Factor based on
reported Fiscal Year 2015 information is illustrated in the following table:
Page 16
Line Formula
No. Reference Amount
Total Operating Expenses 1 OP $56,906,238
Less:
Purchased Water Expenses 2 PWPTR $14,258,442
Purchased Wastewater Expenses 3 PSPTR 20,865,353
Other Pass-throu•h Ex•enses 4 PT 0
Adjusted Operating Expenses 5=1-2-3-4 '.21 782 443
Effective Price Index EPI
April 2015 CPI Index 6 245.195
April 2016 CPI Index 7 248.741
Change in CPI Index 8=7-6 3.546
Annual Percent Change 9=8/6 1.44%
Additional Required Revenue (Numerator) 10=5*9 $313,667
Actual Applicable Rate Revenues Earned 11 ER $73,291,986
Less: PTR
Purchased-Water Pass-Through Rate Revenue 12 '.15 498 307
Purchased-Sanitary Sewer Pass-Through Rate
Revenue 13 22 679 732
Applicable-Rate Revenue (Denominator) 14=11-12-13 $35,113,974
Price Index Factor before Adjustments 15=10/14 0.89%
Adjustments:
Department of Environmental Resources 16 DF 8.00%
Management
Taxes and Tax Equivalents 17 T 0.00%
Other Adjustments 18 0 0.00%
Adjustment Factor= 1/(1-(D+T+O)) =1/0.92 19 1.08696
Price Index Adjustment 20=15*19 PIF 0.97%
(ii) Determination of Indexed Rates. The Indexed Rates shall be
determined based on the Price Index Factor applied uniformly to the
Applicable Rates in effect and shall be rounded to the nearest cent. The
determination shall be based on the following formula:
IR = (AR)(1 + PIF)
Where:
Page 17
IR = The Indexed Applicable Rates that are to be placed in effect for
the current fiscal year through application of the Price Index
Factor.
AR = The Applicable Rates in effect immediately prior to the application
of the Price Index Factor.
PIF = The Price Index Factor determined for the Calculation Period.
SECTION 2. That Chapter 110, "UTILITIES," Article IV "Fees, charges, rates and billing
procedures," at APPENDIX A is hereby amended as follows:
APPENDIX A
FEE SCHEDULE
* * *
Article IV. Fees, Charges, Rates and
Billing Procedures
Division 2. Rates, Fees and Charges
110-166(a) Minimum service charge:
441,14161-144
Gallons of Monthly
Size-ef Service Charge
Watec
Meter (effective for
billings on _r n tec
October 1, 2000)
a 54900 $1-1415
000 15. 17
44/212 111,000 21.31
17,000 37.57
3E 4 000 88-40
4" 80,000 176.80
Page 18
Minimum
Monthly
Sipe-ef W Service Charge
ater
Meter (effective for
October 1, 2001)
9 "
5,000 $ 0
7,G00 15.82
441,2 11,000 2486
17,000 38A2
3"
21-07400 9940
4"
80,000 0
6" 0,009 271.20
6" 200,000 452.00
M4414141-61414
Monthly
Size-of Gallons of Servi
earge
Water
Meter # (effective for
October 1, 2002)
5,000 $4-1.55
4'• 7,000 16.17
14,2 11,000 25.11
17,000 39: 7
3" 40,009 92.10
80,900 181.80
Page 19
6" 120,000 277.20
82 200,000 462,00
Win}
Gal-lens-of Monthly
Size-ef Service Chargo
Meter (efen or
Meter billings on or after
October 1, 2003
,000 $11.88
4" 000 46.60
4442 4-1,000 26.01
17,000 400
3" 497000 94.48
4 80,000 488.88
6" 430,000 288,28
200-,-000 472.08
um
Galleas-of y
ref Servise-Ghafge
Water
Meter b {effective for
billings on or after
October 1, 2004)
-' 5,000 $42,-1-3
7-7000 16.95
Page 20
4 11,000 269
2-' 17,000 41.05
32 49,900 96-48
4" 80,000 192.88
62 420,000 289.28
200,000 482,08
TT
MinimTQs um
TVTTTTTTTT
Menthly
Gallons of
Size Service Charge
ater
Meter b (effective for
1
October 1, 2005)
5,090 $42.38
4-' 7,000 47.30
444E 11,000 27.11
2" 17,000 4 1.90
3-'
40490 98
4" 80,000 4968
62 420,080 29528
200,000 492.08
Win}
ref Monthly
Water
Meter Service Charge
per-Month (effective for
billings on or after
Page 21
October 1, 2006)
3 ,0n
4"
77000 19.53
4442 11,000 30.69
22 47,000 '17.43
3" 40,900 111.60
4" 80,000 223.20
6" 420,000 334.80
82 200,000 558.00
Me Rthly
Gallons of
Size-ef Service Chargc
Watec
Meter b (effective for
billings on or after
October 1, 2007)
5,000 $ 5
4"
7,090 22.61
4,052 41,000 35,53
17,000 54.91
32 40,000 429,20
42 80,000 258.40
62 420,000 33 0
8" 200,000 646.00
Size-of Gallons-ef ` r
Page 22
Meter Water y
per-Month Service Charge
(effective for
billings on or after
October 1, 2008)
9 n
640-0 $4-9-40
2716
tzY 4100 42,6.8
17,000 65796
3" 4070.00 155.20
42 80000 310.40
62 1-20;000 465:-60
82 300,000 776.00
Service Charge
Size-of Gallons-af-Water
Meter per-Month
(effective for
M
billings on or after
October 1, 2009)
s 5, 00 $21.80
7,080 30.52
11,000 '17.96
2" 1-77000 74.12
32 40000 174.40
42 807900 34830
62 420,000 523.20
Page 23
62 200,000 X00
m
Monthly
Gallons of
Sipe-of Service Charge
Water
Meter (effective for
billings on or after
October 1, 201'l)
5,000 $ 5
•
4•' 7-7009 31.01
4 41-7000 X18.73
22 17,000 75.31
3" � 407000 177.20
4" 80,099 35440
62 4207000 53440
6" 200,000 486,00
Section
this Description Amount
Code
Water in excess of subsection 110 166(a), shall bo
• ... . -. • •
..•
1,000 gallons, effective with billings on or after
October 1, 2001; $2.31 per 1,000 gallons, effcctivo
110 _ _ .. „ e-
166(b) 1,000 gallons, effective with billings on or after
with billings on or after October 1, 2001; and $2.51
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;
Page 24
$3.23 per 1,000 gallons, effective with billings on
or after October 1, 2007; $3.88 per 1,000 gallons,
cffcctivc with billings on or after October 1, 2008;
--- .
on or after October 1, 2009; and $4A3 per 1,000
gallons, effective with billings on or after October
1, 2014; and $4.61 per 1,000 gallons, effective
with billings on or after October 1, 2015.
110-166(a)(1) Individual Metered Residential Service
Base Facilit Char•e •er meter size Rate
3/4-inch
1-inch 8.16
1-1/2-inch 8.96
2-inch 9.76
3-inch 10.24
4-inch 11.80
Water Consumption Charge (per 1,000 gallons)
0 to 8,000 Gallons $0.90
8,001 to 16,000 Gallons 2.48
16.001 to 24,000 Gallons 3.69
Above 24 000 Gallons 5.04
Purchased Water Pass-Through Rate (per 1,000 gallons)
All Water Use $1.93
_110-166(a)(2) Master-Metered Multifamily Residential Service
Base Facility Charge (per meter size) Rate
3/4-inch '.7.82
1-inch 16.88
1-1/2-inch 32.20
_ 2-inch 50.43
3-inch 97.39
4-inch 151.24
6-inch 302.99
8-inch 478.48
10-inch 686.84
12-inch 1 269.69
Water Consumption Charge (per 1,000 gallons) f*1
Block 1 '.1.58
Block 2 2.70
Block 3 3.60
Page 25
- Purchased Water Pass-Through Rate (per 1,000 gallons)_ _
All Water Use $1.93
(*1 Usage blocks by meter size:
Block 1 Block 2 Block 3
Size of Meter (gallons) (gallons) jgallons)
3/4-Inch 0 to 16,000 16,001 to 32,000 Over 32.000
1-Inch 0 to 40,000 40,001 to 80,000 Over 80.000
1.5-Inch 0 to 80.000 80,001 to 160,000 Over 160,000
2-Inch 0 to 128,000 128,001 to 256,000 Over 256,000
3-Inch 0 to 256,000 256,001 to 512,000 Over 512,000
4-Inch 0 to 400,000 400,001 to 800,000 Over 800.000
6-Inch 0 to 800,000 800,001 to 1,600,000 Over 1,600,000
8-Inch 0 to 1,280,000 1,280,001 to 2,560,000 Over 2,560,000
10-Inch 0 to 1,840,000 1,840,001 to 3,680,000 Over 3,680,000
12-Inch 0 to 3,440,000 3,440,001 to 6,880,000 Over 6,880,000
110-166(a)(3) Non-Residential Service
Base Facilit Char•e •er meter size Rate
3/4-inch
1-inch 16.88
1-1/2-inch 32.20
2-inch 50.43
3-inch 97.39
4-inch 151.24
6-inch 302.99
8-inch 478.48
10-inch 686.84
12-inch 1 269.69
Water Consumption Charge (per 1,000 gallons) f*
Block 1 $1.58
Block 2 2.70
Block 3 3.60
Purchased Water Pass-Through Rate (per 1,000 gallons)
All Water Use $1.93
[*1 Usage blocks by meter size:
Block 1 Block 2 Block 3
Size of Meter (gallons) (gallons) jgallons)
3/4-Inch 0 to 16.000 16,001 to 32,000 Over 32.000
1-Inch 0 to 40,000 40,001 to 80,000 Over 80,000
1.5-Inch 0 to 80.000 80,001 to 160,000 Over 160,000
2-Inch 0 to 128,000 128,001 to 256,000 Over 256,000
3-Inch 0 to 256.000 256,001 to 512,000 Over 512,000
4-Inch 0 to 400,000 400,001 to 800,000 Over 800,000
6-Inch 0 to 800,000 800,001 to 1,600,000 Over 1,600,000
8-Inch 0 to 1,280,000 1,280,001 to 2,560,000 Over 2,560,000
10-Inch 0 to 1,840,000 1,840,001 to 3,680,000 Over 3,680,000
12-Inch 0 to 3,440,000 3,440,001 to 6,880,000 Over 6,880,000
Page 26
110-166(a)(4) Individual Metered Residential Irrigation Service
Base Facilit Char.e •er meter size Rate
3/4-inch $7.82
1-inch 8.16
1-1/2-inch 8.96
2-inch 9.76
3-inch 10.24
4-inch 11.80
Water C onsumptionCharge •er 1,000 •allonsi
0 to 16,000 Gallons $2.47
Above 16,000 Gallons 5.04
Purchased Water Pass-Through Rate (per 1,000 gallons)
All Water Use $1.93
110-166(a)(5) Master-Metered Multifamily Residential Irrigation Service
Base Facilit Char.e per meter size Rate
3/4-inch '.7.82
1-inch 16.88
1-1/2-inch 32.20
2-inch 50.43
3-inch 97.39
4-inch 151.24
6-inch 302.99
8-inch 478.48
10-inch 686.84
12-inch 1,269.69
_ Water Consumption Charge (per 1,000 gallons) f*
Block 1 '.2.47
Block 2 5.04
Purchased Water Pass-Throu•h Rate per 1 000 •allons
All Water Use $1.93
1.*1 Usage blocks by meter size:
Block 1 Block 2
Size of Meter (gallons) (gallons)
3/4-Inch 0 to 32.000 Over 32,000
1-Inch 0 to 80,000 Over 80,000
1.5-Inch 0 to 160,000 Over 160,000
2-Inch 0 to 256.000 Over 256,000
3-Inch 0 to 512,000 Over 512,000
4-Inch 0 to 800,000 Over 800,000
6-Inch 0 to 1,600,000 Over 1,600,000
8-Inch 0 to 2,560,000 Over 2,560,000
10-Inch 0 to 3,680,000 Over 3,680,000
Page 27
12-Inch 0 to 6,880,000 Over 6,880,000
110-166(a)(6) Non-Residential Irrigation Service
Base Facilit Charge (per meter size) Rate
3/4-inch
1-inch 16.88
1-1/2-inch 32.20
2-inch 50.43
3-inch 97.39
4-inch 151.24
6-inch 302.99
8-inch 478.48
10-inch 686.84
12-inch 1,269.69
Water Consumption Charge (per 1,000 gallons) F*1
Block 1 '.2.47
Block 2 5.04
_ Purchased Water Pass-Through Rate (per 1,000 gallons)
All Water Use $1.93
f*1 Usage blocks by meter size:
Block 1 Block 2
Size of Meter (gallons) jeallons)
3/4-Inch 0 to 32,000 Over 32,000
1-Inch 0 to 80,000 Over 80,000
1.5-Inch 0 to 160,000 Over 160,000
2-Inch 0 to 256,000 Over 256,000
3-Inch 0 to 512,000 Over 512,000
4-Inch 0 to 800,000 Over 800,000
6-Inch 0 to 1,600,000 Over 1,600,000
8-Inch 0 to 2,560,000 Over 2,560,000
10-Inch 0 to 3,680,000 Over 3,680,000
12-Inch 0 to 6,880,000 Over 6,880,000
110-166 Fire s•rinkler s stem Rate
Base Facility Charge (per meter size)
2-inch $9.34
3-inch 17.18
4-inch 26.00
6-inch 50.50
8-inch 79.90
10-inch 114.20
110-166(g) Tapping fee, per size of tap in inches: Rate
3/-inch 4,726.00
1-inch 4,665.00
Page 28
11/2 -inch 5,106.00
2-inch 5,116.00
3-inch 5,627.00
4-inch 6,189.00
16-inch 6.808.00
110-166(h) Guarantee of payment deposit, per
service in inches:
3/ 40.00
1 50.00
1'/2 60.00
2 100.00
3 500.00
4 600.00
6 1,000.00
8 1,500.00
110-166(i) Re-read fee (Charged if meter found 25.00
to be working properly)
110-166(j) Special read fee 25.00
Servicing a meter found damaged,
destroyed or missing will require
110-166() actual replacement cost plus all Actual costs
costs associated with replacement
of meter
110-166`) Field visit fee:
Normal business hours 25.00
After normal business hours 50.00
Page 29
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
.I I . . .
or after October 1, 2002; $4.03 per 1,000
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
110168(a) 1, 2005; and $4.25 per 1,000 gallons,
effective with billings on or after October
1, 2006;$4.93 per 1,000 gallons, effective
with billings on or after October 1, 2007;
$5.62 per 1,000 gallons, effective with
billings on or after October 1, 2008; and
$6.04 per 1,000 gallons, effective with
billings on or after October 1, 2009; and
$6.34 per 1,000 gallons, effective with
billings on or after October 1, 2013; and
$7.55 per 1,000 gallons, effective with
billing on or after October 1, 2014; and
$8.23 per 1,000 gallons effective with
billing on or after October 1, 2015
110-168(a)(1) Individual Metered Residential Service
Base Facility Charge fall meter sizes) Rate
All Meter Sizes
Sewer Consumption Charge (per 1,000 gallons)
All Gallons (based on metered water consumption)
$4.26
Purchased Sanitary Sewer Pass-Through Rate (per 1,000
gallons)
All Gallons (based on metered water consumption) $4.76
110-168(a)(2) Master-Metered Multifamily Residential Service
Base Facility Charge (per meter size) Rate
3/4-inch
1-inch 18.88
1-1/2-inch 36.25
2-inch 57.10
Page 30
3-inch 112.70
4-inch 175.25
6-inch 349.00
8-inch 557.50
10-inch 800.75
12-inch 1,495.75
Sewer Consumption Charge (per 1,000 gallons)
All Gallons (based on metered water consumption)
$4.26
Purchased Sanitary Sewer Pass-Through Rate (per 1,000
gallons)
All Gallons based on metered water consumption '.4.76
110-168(a)(3) Non-Residential Service
Base Facilit Char•e •er meter size Rate
3/4-inch
1-inch 18.88
1-1/2-inch 36.25
2-inch
3-inch
4-inch 175.25
6-inch 349.00
8-inch 557.50
10-inch 800.75
12-inch 1,495.75
Sewer Consumption Charge (p er 1,000 gallons)
p 4
All Gallons (based on metered water consumption)
$4.26
Purchased Sanitary Sewer Pass-Through Rate (per 1,000
gallons)
All Gallons (based on metered water consumption) $4.76
* * *
SECTION 3. REPEALER
All ordinances or parts of ordinances and all section and parts of sections in conflict
herewith be and the same are hereby repealed.
SECTION 4. CODIFICATION
It is the intention of the City Commission, 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 as
Page 31
amended; that the sections of this ordinance may be renumbered or relettered to accomplish
such intention; and that the word "ordinance" may be changed to "section" or other appropriate
word.
SECTION 5. SEVERABILITY
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 6. EFFECTIVE DATE
This Ordinance shall take effect ten days following adoption.
PASSED and ADOPTED this a?7 day of 5epie rn ber , 2016.
'
Mayor Philip Levi,e {
ATTEST: /
/
APPROVED AS TO
. Ii Ca FORM & LANGUAGE
City Cler Rafael Gran do &FO EX CUTION
LILA\L
Or A
Underline denotes new langua•;-���`"'71%o� C�tyAtto - Dote■
denotes delet=����� ae ��I1h/
i. :: /.. °1:01°.- \
t* .:INCORP ORATED:
�°1'TCH 2�'9
NI
Page 32
Ordinances - R5 I
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 27, 2016 .
5:10 p.m. Second Reading Public Hearing
SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF THE CODE OF THE
CITY OF MIAMI BEACH ENTITLED "UTILITIES," ARTICLE IV, ENTITLED "FEES,
CHARGES, RATES AND BILLING PROCEDURE," AT SECTION 110-166,
ENTITLED "SCHEDULE OF WATER RATES AND TAPPING CHARGES;" AT
SECTION 110-168, ENTITLED "SANITARY SEWER SERVICE CHARGE" ARE
TO BE AMENDED; AND CREATING SECTION 110-171, ENTITLED "RATE
INDEXING," IN ORDER TO ADJUST AND MODIFY HOW WATER AND SANITARY
SEWER RATES ARE CALCULATED AND APPLIED; AND ALSO AMENDING
APPENDIX A TO CHAPTER 110, ENTITLED "FEE SCHEDULE" TO INCREASE
AND RESTRUCTURE THE WATER RATES AND SANITARY SEWER SERVICE
CHARGES IMPOSED BY THE CITY PURSUANT TO SECTIONS 110-166, 110-
168, AND 110-171; PROVIDING FOR CODIFICATION; REPEALER;
SEVERABILITY;AND AN EFFECTIVE DATE.
RECOMMENDATION
The Administration recommends the City Commission adopt such rates to enable collecting revenues
sufficient to cover the cost of operating, maintaining, repairing and financing the water and sewer
enterprise funds. The Miami-Dade Water and Sewer Department (WASD) proposed a sewer rate
increase to all wholesale customers of$.1598 for sewer per 1000 gallons effective October 1, 2016.
In order to further the City goal of sustainability, the Administration is recommending that we transition
to a conservation rate structure consistent with the guidance and recommendations of the South
Florida Water Management District and approving the Ordinance on Second Reading Public Hearing.
ANALYSIS
The City's utility rates for water and sanitary sewer services are structured to collect the
necessary revenues to meet annual operating and maintenance costs of the 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.
In general, the rates for water supply and sanitary sewer services are based on full cost
recovery principles and consist of:
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• Pass-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 Water and Sewer Revenue Bonds;
• Operating and maintenance costs for the water and sewer utility; 8 % fee of previous year
total revenue paid to the Miami-Dade County Environmental Resource Management Department
(DERM).
Public Resources Management Group, Inc. ("PRMG") was asked to evaluate the current rate
structure and propose alternative (redesigned) rates as necessary to recover the costs of
providing service given the target monthly user rate revenues for the Fiscal Year 2016/17 for
consideration by the City Commission which will incentivize conservation of valuable water
resources, meet industry standards regarding cost recovery/rate application to its customers,
and maintain rate reasonableness among customers.
The Miami-Dade Water and Sewer Department has informed all wholesale customers that the
proposed water rate for FY2016/17 will remain unchanged. WASD has also notified wholesale
customers that their proposed sewer rate will be $2.9477, an increase of $0.1598 above the
current rate of $2.7879 per 1000 gallons. The cost of the proposed FY2016/17 sewer rate
increase to Miami Beach is approximately $2,926,000. The proposed WASD wholesale water
and sewer rates are subject to approval by the Board of County Commissioners at their Public
Budget Hearings, scheduled for September 8 and September 22, 2016.
Based on their review of the City's existing rates and projected rate revenues, billing statistics
and operating costs, and understanding the City desire to enact a conservation rate, the
recommended rate structure adjustments are listed below:
A) Implementation of water and wastewater monthly base facility charges for the residential
class.
B) Implementation of water and wastewater monthly base facility charges for the general
services class (commercial, master-metered residential, government, etc.) that increase based
on meter size to recognize the diverse capacity (demand) characteristics among such
customers which is consistent with utility rate structure norms and structures recommended by
the Florida Public Service Commission(FPSC).
C) Removal of the minimum water flow in the water minimum service charges to promote
conservation and provide a pricing structure where water consumption charges are based solely
on the amount of water a consumer uses:
D) Implementation of tiered water rates to incentivize water conservation to those customers
with discretionary water use (i.e., individually metered residential and irrigation customers); and
E) Provide a cost recovery mechanism to promote long-term rate sustainability by the
implementation of a purchased water and wastewater pass-through and price index rate
adjustment.
Water Revenue Review and Recommendation
All operational expenditure increases related to the proposed cost of living adjustment to
salaries, increased costs of health insurance and pension, and increases in other operating
costs can be absorbed without the requirement to increase the water rate. PRMG is proposing
to modify the monthly billing to consist of: i) a base facility charge which serves as the monthly
minimum service charge on each service installed, based upon the size of the meter installed in
accordance with the standards of the Public Works Department; ii) a water consumption charge;
and iii) a purchased water pass-through adjustment rate to recover the cost of purchased water
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as billed by the Miami-Dade Water and Sewer Department (WASD). The monthly water user
rates charged for service have been proposed and may be adjusted from time to time.
PRMG also recommends that a monthly base facility charge be billed to all privately-owned fire
protection systems and equipment connected to the city water system based on the size of the
service line connecting the private system to the City's system. These systems provide fire
protection and are not metered. The recommended monthly base facility charges are as
follows:
Proposed Fire Protection Fees By Meter Size
Base Facility Charge (per meter size) Rate
2-inch $9.34
3-inch 17.18
4-inch 26.00
6-inch 50.50
8-inch 79.90
10-inch 114.20
The derivation of these charges are based on the methodology utilized by the Florida Public
Service Commission (the "FPSC") in the regulation of private utilities that is often applied by
public utilities in the State of Florida. In accordance with Section 25-30.465 of the Florida
Administrative Code:
25-30.465 Private Fire Protection Rates.
The rate for private fire protection service shall be a charge based on the size of the
connection rather than the number of fixtures connected. The rate shall be one-twelfth the
current base facility charge of the utility's meter sizes, unless otherwise supported by the
utility.
Sewer Revenue Review and Recommendation
A significant portion of the sewer rate revenue requirement consists of the WASD charges for
sewer treatment which has increased by six percent or approximately$3 million and DERM fees
of approximately $400,000. The debt service is also proposed to increase by $2.5 million.
Similar to the water rate, the revenue requirements will be met utilizing a base facility charge
which will serve as the monthly minimum service charge, a consumption charge, and WASD
pass through charges.
Based on the rate determination methodology established, PRMG also recommends the City
should increase the wastewater wholesale rates charged to the Village of Bal Harbour, the Town
of Bay Harbor Islands, and the Town of Surfside (collectively, the "Satellite Cities") from
$3.1050 to $3.2705 per 1,000 gallons of service effective October 1, 2016.
Typical Proposed Rate Comparison
3/4"-Meter Residential Customer-Domestic
Fiscal Year Fiscal Year
2016 2017 Difference
Water Rates
Minimum Service Charge/Base Facility Charge$22.15 $7.82
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Consumption Charge per 1,000 Gallons
0 to 4,000 Gallons $0.00 $0.63 [1]
4,001 to 5,000 Gallons 0.00 1.42 [1]
5,001 to 8,000 Gallons 4.61 1.42 [1]
8,001 to 16,000 Gallons 4.61 2.21 [1]
16,001 to 24,000 Gallons 4.61. 2.99 [1]
Over 24,000 Gallons 4.61 3.78 [1]
Purchased Water Pass-Through Rate per 1,000
Gallons (All Usage) $1.93 [1]
Wastewater Rates
Base Facility Charge N/A $8.45
Consumption Charge per 1,000 Gallons (All
Flow)
All Flow per 1,000 Gallons $8.23 $4.26 [2]
Purchased Sewer Pass-Through Rate per N/A $4.76 [2]
1,000 Gallons (All Flow)
Bill Comparison
Monthly Cost to 10,000 Gallon Customer
Water $45.20 $39.74 ($5.46)
Wastewater 82.30 98.65 16.35
Combined $127.50 $138.39 $10.89
Monthly Cost to 5,000 Gallon Customer
Water $22.15 $21.41 ($0.74)
Wastewater 41.15 53.55 12.40
Combined $63.30 $74.96 $11.66
Footnotes:
[1]The water consumption charge per 1,000 gallons and purchased water pass-
through rate per 1,000 gallons are additive
[2]The wastewater consumption charge per 1,000 gallons and purchased sewer pass-
through rate per 1,000 gallons are additive
CONCLUSION
The Administration recommends approving the Ordinance on Second Reading Public Hearing.
KEY INTENDED OUTCOMES SUPPORTED
Ensure Expenditure Trends Are Sustainable Over The Long Term
Legislative Tracking
Public Works
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Sponsor
Commissioner Ricky Arriola
ATTACHMENTS:
Description
o Ordinance
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