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Ordinance 95-2991 ORDINANCE NO. 95-2991 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING MIAMI BEACH CITY CODE CHAPTER 45, ENTITLED, "WATER" BY AMENDING SECTION 45-20.2, ENTITLED "SANITARY SEWER SERVICE CHARGE", TO INCREASE THE SANITARY SEWER SERVICE CHARGE IMPOSED BY THE CITY UPON ALL PREMISES CONNECTED TO OR USING THE CITY'S SANITARY SEWER SYSTEM, FROM TWO DOLLARS AND FOURTEEN CENTS PER THOUSAND GALLONS TO TWO DOLLARS AND SEVENTY-FOUR CENTS PER THOUSAND GALLONS, EFFECTIVE JUNE 1, 1995; AND BY ADDITION OF SECTION 45-20.3, ENTITLED "SEWER IMPACT FEE" PROVIDING FOR A ONE- TIME FEE FOR CONNECTION TO THE CITY'S SEWER SYSTEM; PROVIDING FOR REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, the Miami Dade Water and Sewer Authority will be increasing the wholesale water and sewer rates for the fiscal year, beginning October 1, 1995; and WHEREAS, it is necessary to pass these rate increases on to the consumers; and WHEREAS, the increase provided herein is also necessary to properly fund the water and sewer revenue bonds soon to be issued which will fund needed major renovations to the City's water and sewer system. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1: That Section 45-20.2 of Miami Beach City Code Chapter 45, entitled "Water", is hereby amended to read as follows: Sec. 45-20.2. Sanitary sewer service charge. 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. Such sanitary sewer service charge shall be in an amount equal to two dollars and fourteen seventy-four cents per thousand gallons of water delivered to the consumer as shown by the water bills rendered in accordance with this Chapter. The sanitary sewer service charge shall be applied to all accounts based upon billings rendered meterrerathrrgs on or after October 3, 1994 June 1. 1995. The 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 chapter for the payment of water bills. The sanitary sewer service charge imposed hereby shall become effective upon the expiration of thirty days' written notice thereof to each and every owner affected thereby as provided herein. Provided, however, that the customer may file (between October 1, and September 30, of each year) an affidavit on the form prescribed by the City, stating that water was used regularly for sprinkling or for other purposes that did not enter the system during the preceding fiscal year October 1, through September 30). Upon verification by a representative of the City, the customer shall receive a credit equal to six percent of the total amount of sanitary sewer service charges paid by the customer during the preceding year. Further provided, that 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 or other purposes not requiring the use of sanitary sewer system facilities of the City. SECTION 2: That Miami Beach City Code, Chapter 45, entitled "Water," is hereby amended by addition of Section 45-20.3 to read as follows: Sec. 45-20.3. Sewer impact fee. (a) There is hereby imposed. upon all new connections to the sewer system. a one-time sewer impact fee. Such sewer impact fee shall be based on the size of water meter serving such premises as set forth in the following table: Meter Size (Inches) Sewer Impact Fee 5/8 $ 235 3/4 3550 1 1-1/2 1.175 2 1.880 3.760 4 5.875 11.750 8 18.800 Premises served by meters larger than 8 inches shall have sewer impact fees based on relative meter capacities. No sewer impact fees shall be charged for water meters used strictly for irrigation or other purpose which does not generate wastewater returned to the sanitary sewer system. (b) The sewer impact fee shall be due and payable at the time of issuance of the initial building permit for the premises. (c) All sewer impact fees collected shall be deposited into the City's Sewer Impact Fee Subaccount within the Water and Sewer Impact Fee Account. The moneys on deposit in the Sewer Impact Fee Subaccount, together with investment earnings thereon, shall be used by the City only in accordance with the provisions of applicable law. SECTION 3. REPEALER. All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 4. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect on the 27th .y of May , 1995. PASSED and ADOPTED this 17th day of May, 1995 ir MAYOR ATTEST: CITY CLERK 1st reading 5/3/95 2nd reading 5/17/95 FORM APPROVED Legal Dept. By Sc� Date 4- CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. (2;•• i -`1 3 May 17, 1995 To: Mayor Seymour Gelber and Members of the City Commission From: Roger M. Canto t4 City Manager Subject: Water and Sewer Renovation Project and Rate Increase Administrative Recommendation The Administration recommends that the Mayor and City Commission hold a public hearing and adopt this ordinance on second reading. Description of the System The City of Miami Beach owns, operates and maintains the potable water system which serves the residents of the City. The water system in the City of Miami Beach consists of 157 miles of water mains ranging from 6 inches in diameter to 36 inches in diameter. Over 50% of these lines have been in service for over 40 years. The system contains five water booster pump stations with a sixth station planned for Terminal Island and four welded steel ground storage tanks. The system contains 958 fire hydrants, 622 fire lines and has over 23,000 valves of various sizes. These are 11,415 service connections which are all metered. Because the City is located on a barrier island surrounded by salt water, it was not AGENDA ITEM R' -D DATE 5 -I '1 -95 practicable or economical for the City to develop its own water supply system. The least costly and highest quality water in the area comes from the Biscayne Aquifer located on the mainland from wells owned and operated by the Dade County Water and Sewer Department. The water service to the City comes from four large diameter pipes located on each of the causeways. Each of the pipes are metered and the City is billed for the water passing through the four pipes at wholesale rates. The City also owns, maintains and operates the sewer collection system in the City. The system consists of 152 miles of lines, including gravity sewers and pressurized force mains. In addition there are 23 wastewater pump stations. The sewer system is connected to the Central District wastewater treatment plant located on Virginia Key by way of a subaqueous 54 inch force main under Government Cut. The flow from this line is metered and is the basis for the charge to the City from Dade county for sewer treatment. Description of the Project The City's consultants, Camp Dresser & McKee, have examined the water system and recommend five categories of improvements for the system. These five categories are: (1) upgrading of the five existing water booster pump stations and the construction of a sixth water booster pump station on the Terminal Island; (2) rehabilitation or replacement of the four water ground storage tanks; (3)miscellaneous water mains replacements and extensions; (4)replacement of approximately 82,600 feet of undersized galvanized iron water pipe; and (5) cleaning and cement lining a conservatively estimated length of 335,000 of unlined 6 and 8 inch cast iron pipe. (1) Two of the water booster pump stations are designed to transfer water from the four ground storage facilities at 25th Street and 75th Street. The other three existing booster stations on Belle Isle, 41st Street and Normandy Isle are designed to transfer water from the supply lines on the Venetian Causeway, Julia Tuttle Causeway and the 79th Street Causeway into the supply network. The addition of the sixth booster pump station (currently under design) on Terminal Island will provide the 15 pumps in these stations with a theoretical capacity which is well above the maximum high range day demand of 46 million gallons per day even with the capacity reserve for fire suppression of 6,000 gallons per minute. (2) Two of the ground storage water tanks are located at the 25th Street Public Works Yard and the other two tanks are located at the 75th Street booster pump station. The two tanks at the 75th Street location have a capacity of 4.6 million gallons each and are 40 and 45 years old. The two tanks at the 25th Street location have capacities of 3.2 and 4.6 million gallons and were in existence prior to 1947, each with an estimated age of over 50 years. All of these tanks with a total capacity of 17 million gallons are of welded steel and would require approximately$700,000 each to sandblast and repaint due to the fact that the existing paint is lead based and is now considered a hazardous waste.New prestressed concrete water storage tanks which require lower maintenance costs can be built for slightly more than the cost of repairing the existing the over 40 year old tanks currently in service. The proposed project will replace all four of these tanks. (3) The project will replace all of the undersized 6 inch water mains south of 5th Street, extend the 8 inch water main to the Sunset Islands, replace the main at Normandy Drive and Bay Drive, install new interconnects on the 24 inch main in Dickens and Bryon Avenues, replace the main in Island Avenue on Belle Isle, extend the main in Bay Road, extend the main in Drexel Avenue and extend the water mains in the Lincoln Road area. These projects are necessary to insure water quality, pressure and fire flow. (4) This portion of the project will replace the estimated 82,600 feet of galvanized iron water mains that were installed in the 1950's and 1960's with ductile iron lined water pipe which is the state of the art for Miami Beach conditions. This project will be spread over a five year period in approximately equal amounts in order to minimize the amount of ditching that will be required in any one area in any one year. (5) The project will clean and cement line approximately 335,000 feet of unlined cast iron and ductile iron pipe. This project can be accomplished without major excavation and will be accomplished without any major disruption in traffic flow. In addition to restoring a free flow through these pipes, this project will also repair any line breaks that are causing potable water to leak from the system. The estimates of lost potable water due to leaks is 9 percent of the total water purchased which is approximately$750,000 in lost revenue at current rates. The improvements recommended for the sewer system are to improve the sewer pump stations and to improve the gravity collection system to reduce infiltration (leakage from ground water) into the system. The improvements to the pump stations are mainly to raise the electrical equipment above the 100 year flood level in stainless steel cases. In a few of the stations this will require the construction of new buildings to house the electrical transformers or emergency generators. These buildings are being designed by Benard Zyscovish in order to insure compatibility with the surrounding neighborhoods. The improvements to the gravity sewers are being prioritized to the areas with the most infiltration into the sewer system. As all of the ground water that enters the sewer system costs the City and its residents for its treatment, those areas that have been identified as having the greatest amount of infiltration will be repaired first. It is anticipated that after the first two years of this program, the amount of infiltration will be reduced from 8 million gallons per day to 3 million gallons per day. The estimates are that this first phase will reduce the operational cost of the sewer system by $2 million annually by reducing the amount sent to Dade County for treatment with the further elimination estimated to reduce an additional $1 million annually when the repair program is completed. The City of Miami Beach will issue water and sewer revenue bonds to undertake renovation of this scale. The consulting engineers for the City has estimated that the entire project will cost $95 million which will be accomplished over 5 years. This project will upgrade the sewer pump stations, clean and reline the water supply pipe network citywide and repair the sewer system to stop infiltration into the system. The repairs will have the effect of reducing the operating costs of the system. The actual amount of these savings are difficult to accurately project at this time; however, the cost savings may exceed $3 million annually at the completion of the project. These savings will come in the form of reduced payments to Miami-Dade Water and Sewer Department from whom we purchase water and pay to treat our sewerage. Project Costs Effect on Water and Sewer Rates The rate adjustment that is proposed will have an overall effect of adjusting rates 15 percent effective June 1, 1995.. Included in that adjustment is the projected 20%rate increase that Dade County is anticipated to enact effective October 1, 1995. Approximately 60%of the operational expenses of the Water and Sewer system is the payment to Miami-Dade WASD which translates their 20%rate increase into a 12%passthrough adjustment to our customers if implemented on October 1, 1995. By instituting this rate adjustment at this time, the amount of this passthrough adjustment can be reduced to 9%. To properly fund the capital projects enumerated above a 6% adjustment with an effective 9%rate adjustment coming from Dade County is necessary. The Administration proposes that the City only adjust rates annually and we do not intend to come back to the Commission in October, 1995 for an additional rate increase unless Dade County imposes an additional surcharge for landfill closure costs as has been discussed previously in relation to the Ojus settlement. The City's consultants have also reviewed the metered water and sewer rates in the system and recommended a rate adjustment to provide for the debt service costs for the first phase of this project estimated to begin this summer. This rate adjustment also provides for the anticipated rate adjustment that will be enacted by Dade County with an effective date of October 1, 1995. By implementing this rate adjustment at this time, the City will be able to mitigate the amount of the rate adjustment and not have to propose another adjustment until 1996. Water and Sewer Impact Fees Another aspect of this proposed rate ordinance is the imposition of water and sewer impact fees on new development. The fees will help to mitigate the cost of the increased capacity in the City's systems because of the new development. Funds received from these impact fees can only be spent to improve the capacity of the systems and are anticipated to total approximately $100,000 annually. The impact fee reflects an assessment of$155 for water and $235 for sewer for a single family home and extends upward based on meter size to a maximum of$12,400 for water and $18,800 for sewer for an 8 inch meter. Water Conservation and Public Information A key ingredient of this program is public awareness of the need to repair the water and sewer systems and the potential for conservation reducing the financial impact. AdvoKatz has been retained as a subconsultant to Camp Dresser & McKee to handle this important element of the project. Average Customer Bill The average residential customer in the City consumes 15,000 gallons of water monthly. The monthly bill that the customer currently receives and the monthly bill that will be rendered at the new rates are presented below: ti Current Rate New Rate Percent Adjustment Water Charge $19.65 $21.00 6.8% Sewer Charge 33.45 41.10 22.8% Sanitation Charge 27.11 27.11 - Storm Water 2,50 2.50 - Total Monthly Bill $ 82.71 $91.71 11.8% As can be seen by this analysis,the average monthly customer bill will be adjusted by $8.00 per month. With the cost reductions anticipated from the project, the City will probably seek to reduce the anticipated rate adjustments in the future as additional capital needs are meet. The City's rate adjustments will be minimized as the improvements go on line but the previously announced average 15%rate adjustments over the next five by Dade County will have to be passed on to our customers. Conclusion The City of Miami Beach has allowed its water and sewer system to deteriorate for many years. In order to provide adequate water service, continue providing adequate fire protection and eliminate infiltration into the sewer system this project must be implemented. These repairs are extensive but will only cost more if put off further. The City is making these repairs with a cost/benefit analysis in mind. The projects and proposed financing have been extensively studied by the City's consultants Camp Dresser & McKee, Kimley Horn and Rachlin Cohen and Holtz as well as the Finance/Capital Improvements Committee. The City will first correct those problems that save as much as possible so that the total project will be done with the least financial impact to our customers. For these reasons we recommend approval of the project and the rate adjustment required to fund the revenue bonds. 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I I I Cl) I iI I to C I II O 0 CO to d- Cl) N v- 0 CITY OF MIAMI BEACH, FLORIDA PROBLEMS FACING OUR 70+ YEAR OLD, CLOGGED, ERODED WATER & SEWER SYSTEMS Threat No water for weeks if pumps fail during hurricane Threat Inadequate fire-flowwater pressure Threat Raw sewage backup in streets from overburdened system Threat Water storage tank failures causing citywide rationing Threat Fines for noncompliance with federal mandates PLUS WASTEFUL WASTE!!! Nearly $3 million a year down the drain because clean rain and groundwater leak into sewage system ASSURING THE WATER SUPPLY: OUR HIGHEST PRIORITY WATER MAINS • More than half the pipes in Miami Beach's fresh water delivery system are 40 years or older -- and some are more than 70 years old! • Certain areas of the city are served by the original 6-inch (undersized) mains installed in the Fisher-Collins era. • Because those water mains are too small for today's demands, it is difficult to maintain water pressure in many areas. The 6-inch pipe will be replaced relieving the water pressure problem and assuring adequate fire flow. • Most of the city's 40 year old water mains are made of unlined cast iron pipe and have developed heavy coatings of mineral deposits which: • reduce the capacity of the pipe affecting fire flow • can cause discoloration of the water • may cause bacterial contamination • have contributed to pipe wall corrosion leaving them vulnerable to rupture at any time. • Wherever feasible, mineral buildups will be purged and pipes will be re-lined with cement. • As much as possible of the pipe relining will be done without major trenching or disruption to traffic. • New mains will be installed where pipes are found to be too corroded to be cleaned and re-lined. STRENGTHENING WATER BOOSTER PUMPS • All water pump motors and controls are presently below the ground and vulnerable to flooding. • New electrical systems, high efficiency motors and emergency generators will be installed to assure the system continues to operate under virtually every circumstance. • The electrical equipment, pump controls and emergency generators will be located in above ground buildings. • A new pump station will be built to assure fire flow pressure in the South Pointe area. NEW WATER STORAGE TANKS • The city's four 50-year-old water tanks are deteriorating and one is on the brink of failure. • Failure of one tank would create a citywide demand control problem, possibly restricting water usage to hotels, businesses, homes. • Each of the antiquated welded steel tanks will be replaced with a pre-stressed concrete structure. 2 REDUCING WASTEFUL SEWAGE TREATMENT: STOP POURING MONEY DOWN THE DRAIN • Nearly 170 miles of sanitary sewer (wastewater) pipes transport sewage from all parts of Miami Beach to the county wastewater treatment plant on Virginia Key. • Most of Miami Beach's sewers are over 50 years old, and because of the high water table, most are below water level. • Our system is so old and fragile that sewers have deteriorated in many places, allowing rainfall and groundwater to flood into the sewage system. This is known as inflow/infiltration. (See diagram.) • Those leaks add nearly 8 million gallons a day to our wastewater system increasing its volume by almost one-third: WE ARE PAYING NEARLY $3 MILLION A YEAR TO TREAT ABOUT 8 MILLION GALLONS A DAY OF RAINWATER OR GROUNDWATER AS SEWAGE! • When groundwater seeps into the sewer system, it carries dirt along with it which builds up in the pipes. Enough buildup and we have blockage which can force raw sewage into our streets. • Consultants have used two methods to identify the worst areas of infiltration/inflow. • Smoke testing -- They set off smoke devices in various parts of the sanitary sewer system. If smoke rises from storm drains, there is strong evidence of improper cross connections that need to be closed. • Visual examination -- They drive video cameras into the sanitary sewer system to observe water leaking into the pipes from cracks or outworn joints. • Only the most cost effective repairs will be done on the system to remedy about 75% of the problem. • Lots of repairs can be done by relining existing pipes without digging them up. • Reducing infiltration/inflow will also put Miami Beach in compliance with federal guidelines and help the city avoid EPA penalties. • Repairs considered to be the highest priority and costing about$25 million will be funded by the Series 1995 revenue bond issue. The bonds will be financed through modest increases in the city's water and sewer rates. SAFEGUARDING OUR SEWAGE SYSTEM: FORTIFYING THE PUMPS • At many of the city's wastewater pump stations, motors, electrical equipment and generators are antiquated and need to be replaced. • Many of the pump stations have electrical equipment including emergency generators below the surface and unprotected from flooding in severe weather or hurricanes. • New pumps, high efficiency motors, electrical systems and emergency generators need to be installed at the city's major wastewater pump stations. • At several pump stations, new electrical equipment will be installed above ground and housed in stainless steel cabinets wherever possible. These stations will also have new landscaping. • At the largest pumping stations, electrical equipment and generators will be housed in new buildings to be designed by architect Bernard Zyscovich and his firm, known for work in Miami Beach. These structures will conform with the city's design guidelines and complement their neighborhoods. • Telemetry systems will also be installed to monitor pumps and alert authorities in the event of an emergency. • The improvements to these major wastewater pump stations will cost about $12 million and will be funded by the Series 1995 bond issue. 3 THE MOST FREQUENTLY ASKED QUESTIONS ABOUT NEW WATER AND SEWER RATES • What's wrong with Miami Beach's water & sewer systems? Parts of our city's 70 year old water and sewer systems are severely clogged and eroded. Your health isn't endangered at this moment, but electrical components, piping segments and storage tanks could fail at any time leaving areas of the city without service for weeks or longer. Right now we are pouring nearly $3 million a year down the drain because relatively clean rain and groundwater infiltrate our sewage system. This increases the volume we send to Metro-Dade for treatment by close to a third. As a result, we are paying Dade County to treat clean water! Other serious deficiencies include the risk of inadequate fire flow water pressure, raw sewage backups in our streets and water storage tank failures that would cause citywide rationing. On top of that, we face the threat of fines for non-compliance with federal mandates. • What will be fixed? There are three kinds of pipe systems under our streets and they're all in need of major renovations or replacement • Sanitary sewer (wastewater) pipes will be replaced or repaired, new pumps, motors, electrical systems and generators will be installed • Fresh water mains will be enlarged where necessary for fire flow, pipes will be replaced or repaired, water tanks will be replaced and pumps fortified with new motors and generators • Stormwater system pipes are also in need of repairs, drainage basins need to be added so the city is in compliance with federal standards for pollution control. Wastewater and fresh water system improvements are the first priority. Stormwater system improvements are slated for later phases. • Can't we wait a little longer or do a little less so our rates won't be increased so much? The threats to our water and sewer systems are real and getting worse. With an out of sight, out of mind attitude, neglect has put us in this predicament. Engineering experts make it clear: fixing parts of the systems after failures will be much more expensive than getting to them before they fail or burst! Hurricane Andrew sounded a very clear wake up call to Miami Beach. Our city has taken a hard look at what it will take to get Miami Beach in shape. In addition, priorities have been set in order to spread the costs over several years rather than doing it all at once. It's a no frills program that has to be done to keep essential services functioning. 4 MOST FREQUENTLY ASKED QUESTIONS ABOUT NEW WATER AND SEWER RATES, continued • Will the street near my home or business be torn up. and will I be without water for a time? Technology makes it possible to do some repairs to water and sewer lines without tearing up the street. Whenever possible water mains and sewer pipes will be cleaned and relined but in many places pipes will have to be replaced. Engineers estimate traffic disruptions at any given location will be over within a week. Once in a while, a small area may be without water for only an hour or two. Every effort will be made to give advance notice for traffic or water disruptions. Project coordinators will work to avoid major disruptions during large events such as the Boat Show. Every effort will be made to avoid scheduling major work near tourist destinations during the height of the season. Undoubtedly, each of us will be inconvenienced at one time or another but coordinators will work to keep that to a minimum. • Why aren't we having a referendum on this? These improvements are being financed by revenue bonds backed by the water and sewer user fees we pay the city. Only general obligation bonds backed by special assessments require referendums. Raising user fees is not the sort of thing our city commissioners take lightly. They've studied the consultants' reports from top to bottom and discussed the major points at several committee meetings. They've mounted an ongoing initiative to find outside funding sources to lower the impact on Miami Beach property owners. In then end, they've done what we elected them to do... they've made the tough decisions. • How will we pay for all this? The city will issue revenue bonds backed by increased water and sewer charges. The total bill (including waste and stormwater charges) for a typical home that consumes about 15,000 gallons of water a month will go from $82.71 to $91.71, an increase of $9 or about 11%. • Can Metro-Dade County impose additional water and sewer rate increases on Miami Beach property owners? Historically, the rates our city pays Metro-Dade to buy water and process sewage have gone up nearly every year for the past 10 years. Two-thirds of the rate just approved by our city commission will cover pass throughs from Metro-Dade. • When will the rate increase be reflected in our bills? Probably by June, 1995. 5 I-- 0 0 W O . -• a �, In Z - O I in ' 11. • - s - W • ' s I 1< 110;!' J L i Z , 0 .,;(.\ / . \ Z / , s • ceW O /// • - F— • ' NW ` z Q �' 3 s W •f _ W r J k'' j ! _ -s f Q Z Z Z U Z • , • Or1.I N F- H W ' •I : - ZN CC etU • ' CO U sr f • .1* 4 C W Z • I.1.1 ' f_ 1 i ! ' W W E CO _ / (X Z Z W v. W O C J = Q d' R. r. {f - 3 W W • z 3 O C - - U LN Ce Z O W J Ce Q -) U O W W C Z O a d W Q � II II a a H m W cc in 0- i _ 3 Z Z W W d W I— i Jpp - V U O U OD> CC W a CC U (i>LI ce U U U I--0 w J O ee a 1.1... 4 Z Z m, i t t $ . o W "' N N M 3 o 1 i111 ' , Q' c W O `a LU 1 . W CaI W ®1. Cl) Otig LU Q ate) a I ` CI g'cill i ti 8 1 CI Iris il 1 • H i!il -4 7.-. - IS =.1. 1 2 - i; iiis :.',' s tt City of Miami Beach, Florida TECHNICAL SUMMARY 1995 WATER AND SEWER IMPROVEMENTS DESCRIPTION OF THE SYSTEMS The City of Miami Beach owns, operates and maintains the potable water system which serves the residents of the City. The water system in the City of Miami Beach consists of 157 miles of water mains ranging from 6 inches in diameter to 36 inches in diameter. Over 50% of these lines have been in service for over 40 years. The system contains five water booster pump stations with a sixth station planned for Terminal Island and four welded steel ground storage tanks. The system contains 958 fire hydrants, 622 fire lines and has over 23,000 valves of various sizes. There are 11,415 service connections which are all metered. Because the City is located on a barrier island surrounded by salt water, it was not practicable or economical for the City to develop its own water supply system. The least costly and highest quality water in the area comes from the Biscayne Aquifer located on the mainland from wells owned and operated by the Dade County Water and Sewer Department (WASAD). The water service to the City comes from four large diameter pipes located on each of the causeways. Each of the pipes is metered and the City is billed for the water passing through the four pipes at wholesale rates. The City also owns, maintains and operates the sewer collection system in the City. The system consists of 152 miles of lines, including gravity sewers and pressurized force mains. In addition there are 23 wastewater pump stations. The sewer system is connected to the Central District wastewater treatment plan located on Virginia Key by way of a subaqueous 54 inch force main under Government Cut. The flow from this line is metered and is the basis for the charge to the City from Dade County for sewer treatment. DESCRIPTION OF THE PROJECTS Fresh Water System The City's consultants, Camp Dresser & McKee, have examined the water system and recommend five categories of improvements for the system. These five categories are: 1) Water booster pumps - upgrading of the five existing water booster pump stations and the construction of a sixth water booster pump station on the Terminal Island 2) Water tanks - rehabilitation or replacement of the four water ground storage tanks 3) Water mains - miscellaneous replacements and extensions 4) Water pipe replacement - of approximately 15 miles of undersized galvanized iron water pipe 5)Water pipe cleaning and cement lining- improvements to a conservatively estimated length of 63 miles of unlined 6 and 8 inch cast iron pipe. 1 1) Water booster pumps Two of the water booster pump stations are designed to transfer water from the four ground storage facilities at 25th Street and 75th Street. The other three existing booster stations on Belle Isle, 41st Street and Normandy Isle are designed to transfer water from the supply lines on the Venetian Causeway, Julia Tuttle Causeway and the 79th Street Causeway into the supply network. The addition of the sixth booster pump station (currently under design) on Terminal Island will provide the 15 pumps in these stations with a theoretical capacity which is well above the maximum high range day demand of 46 million gallons per day even with the capacity reserve for fire suppression of 6,000 gallons per minute. 2) Water tanks Two of the ground storage water tanks are located at the 25th Street Public Works Yard and the other two tanks are located at the 75th Street booster pump station. The two tanks at the 75th Street location have a capacity of 4.6 million gallons each and are 40 and 45 years old. The two tanks at the 25th Street location have capacities of 3.2 and 4.6 million gallons and were in existence prior to 1947, each with an estimated age of over 50 years. All of these tanks with a total capacity of 17 million gallons are of welded steel and would require approximately $700,000 each to sandblast and repaint due to the fact that the existing paint is lead based and sandblast residue would be considered a hazardous waste. New prestressed concrete water storage tanks which require lower maintenance costs can be built for slightly more than the cost of repairing the existing over 40 year old tanks currently in service. The proposed project will replace all four of these tanks. 3) Water mains The project will replace all of the undersized 6 inch water mains south of 5th Street, extend the 8 inch water main to the Sunset Islands, replace the main at Normandy Drive and Bay Drive, install new interconnects on the 24 inch main in Dickens and Byron Avenues, replace the main in Island Avenue on Belle Isle, extend the main in Bay Road, extend the main in Drexel Avenue and extend the water mains in the Lincoln Road area. These projects are necessary to insure water quality, pressure and fire flow. 4) Water pipe cleaning and cement lining This portion of the project will replace the estimated 15 miles of galvanized iron water mains that were installed in the 1950s and 1960s with ductile iron lined water pipe which is the state of the art for Miami Beach conditions. This project will be spread over a five year period in approximately equal amounts in order to minimize the amount of ditching that will be required in any one area in any one year. 5) Water pipe cleaning The project will clean and cement line approximately 63 miles of unlined cast iron and ductile iron pipe. This project can be accomplished without major excavation and will be accomplished without any major disruption in traffic flow. In addition to restoring a free flow through these pipes, this project will also repair any line breaks that are causing potable water to leak from the system. The estimates of lost potable water due to leaks is 9 percent of the total water purchased which is approximately $750,000 in lost revenue at current rates. 2 Sewer (Wastewater) System The improvements recommended for the sewer system are to improve the sewer pump stations and to improve the gravity collection system to reduce infiltration (leakage from groundwater) into the system. The improvements to the pump stations are mainly to raise the electrical equipment above the 100 year flood level in stainless steel cases. In a few of the stations this will require the construction of new buildings to house the electrical transformers or emergency generators. These buildings are being designed by Bernard Zyscovich in order to insure compatibility with the surrounding neighborhoods. The improvements to the gravity sewers are being prioritized to the areas with the most infiltration into the sewer system. As all of the groundwater that enters the sewer system costs the City and its residents for its treatment, those areas that have been identified as having the greatest amount of infiltration will be repaired first. It is anticipated that after the first two years of this program, the amount of infiltration will be reduced from 8 million gallons per day to 3 million gallons per day. The estimates are that this first phase will reduce the operational cost of the sewer system by $2 million annually by reducing the amount sent to Dade County for treatment with the further elimination estimated to reduce an additional $1 million annually when the repair program is completed. PAYING FOR THE PROJECTS The City of Miami Beach is issuing water and sewer revenue bonds to undertake renovation of this scale. The consulting engineers for the City have estimated that the entire project will cost$95 million which will be accomplished over 5 years. The project will upgrade the sewer pump stations, clean and reline the water supply network citywide and repair the sewer system to stop infiltration into the system. The repairs will have the effect of reducing the operating costs of the system. The actual amount of these savings is difficult to accurately project at this time; however, the cost savings may exceed $3 million annually at the completion of the project. These savings will come in the form of reduced payments to WASAD for purchasing water and treatment of our sewerage. Project Costs Effect on Water and Sewer Rates The rate adjustment that is proposed will have an overall effect of adjusting rates 16% effective June 1, 1995. Included in that adjustment is the projected 20% rate increase that Dade County is anticipated to enact effective October 1, 1995. Approximately 62%of the operational expenses of the water and sewer system is the payment to WASAD which translates their 20% rate increase into a 12% passthrough adjustment to our customers if implemented on October 1, 1995. By instituting this rate adjustment at this time, the amount of this passthrough adjustment can be reduced to 9%. To properly fund the capital projects enumerated above a 6% adjustment with an effective 9% rate adjustment coming from Dade County is necessary. The Administration proposes that the City only adjust rates annually and the City does not intend to come back to the Commission in October, 1995 for an additional rate increase unless Dade County imposes an additional surcharge for landfill closure costs as has been discussed previously in relation to the Ojus settlement. The City's consultants have also reviewed the metered water and sewer rates in the system and recommended a rate adjustment to provide for the debt service costs for the first phase of this project estimated to begin this summer. This rate adjustment also provides for the anticipated rate adjustment that will be enacted by Dade County with an effective date of October 1, 1995. By implementing this rate adjustment at this time the City will be able to mitigate the amount of the rate adjustment and not have to propose another adjustment until 1996. 3 Water and Sewer Impact Fees Another aspect of this proposed rate ordinance is the imposition of water and sewer impact fees on new development. The fees will help to mitigate the cost of the increased capacity in the City's systems because of the new development. Funds received from these impact fees can only be spent to improve the capacity of the systems and are anticipated to total approximately $100,000 annually. The impact fee reflects an assessment of $155 for water and $235 for sewer for a single family home and extends upward based on meter size to a maximum of $12,400 for water and $18,800 for sewer for an 8 inch meter. Water Conservation and Public Information A key ingredient of this program is public awareness of the need to repair the water and sewer systems and the potential for conservation to reduce the financial impact. Advokatz, Inc. has been retained as a subconsultant to Camp Dresser & McKee to handle this important element of the project. Average Customer Bill The average residential customer in the City consumes 15,000 gallons of water monthly. The monthly bill that the customer currently receives and the monthly bill that will be rendered at the new rates are presented below: AVERAGE MONTHLY WATER AND SEWER CHARGES Current Rate New Rate Percent Adjustment Water Charge $19.65 $21.00 6.8% Sewer Charge 33.45 41.10 22.8% Total W&S only 53.10 62.10 16.9% TOTAL MONTHLY CHARGES ON AVERAGE MIAMI BEACH UTILITY BILL Current Rate New Rate Percent Adjustment Total W&S 53.10 62.10 16.9% Waste 27.11 27.11 Unchanged Storm water 2.50 2.50 Unchanged TOTAL MONTHLY $82.71 $91.71 10.8% Conclusion The City of Miami Beach has allowed its water and sewer system to deteriorate for many years. In order to provide adequate water service, continue providing adequate fire protection and eliminate infiltration into the sewer system these projects must be implemented. These repairs are extensive but will only cost more if put off further. The City is making these repairs with a cost/benefit analysis in mind. The projects and proposed financing have been extensively studied by the City's consultants Camp Dresser & McKee, Kimley-Horn and Rachlin Cohen & Holtz, as well as the Finance/Capital Improvements Committee. The City will first correct those problems that save as much as possible so that all the projects will be completed with the least financial impact to our customers. For these reasons we recommend approval of the projects and the rate adjustment required to fund the revenue bonds. 4 CITY OF MIAMI BEACH, FLORIDA HIGHEST PRIORITY FOR IMPROVEMENTS: AREAS OF WORST DETERIORATION OF CITY WATER AND WASTEWATER SYSTEM w a - �� 1W. IO a - Ili II — - —•.0 MP= 110).1 my.=1.ifirigm, •IP t-- -- — Air ®1 -*poo'11111 l lulus \P tIII• NORTH SHORE STREETSCAPE �. ..Lc.r"'. IMPROVEMENT PROJECTS • (WATER AND WASTEWATER '�`•a'` -��" IMPROVEMENTS) ." REPLACEMENT OF GALVANIZED • T1 IRON WATER MAINS DURING 5 a� YEAR C.I.P. PROGRAM - WTTH /.7" .."' • FIRST 2 YEARS PARI OF SERIES A BOND ISSUE 419k � I '- .4/-.4if jJ ' *'j Al ;h.1A i/ 1i! pusIIII —,..j,) .� �7' 0 1,750 R 3.500 ft .00C_�* SCALE: 1 ,n. = 3.500 ft. ti ill 1 <����/ ISA IA I ) t 1 1 J..... ��r_ _ __ ___gi 3';' pi ,..,,t44-' . :RRR , JJ % /0t1,- lit VENETIAN CAUSEWAY IMPROVEMENTS . _ /`�`,- (WATER AND WASTEWATER) i ' .� 0 fif/ SEI / / /,�W / LINCOLN ROAD MALL PROJECT —�./!�, /!`, r a�C�+ WATER AND WASTEWATER IMPROVEMENTS) �1.. 41 ?Aw'►. \ t!•/ii}I if A! r � '-' Si1111li,I INV 1 :1 r GI II IIIII G7i111111 P r. Nut at no i`+, .ew 'a 1111111 lu��li J "m "! wArFa IMPROVEMENTS .m II G ..; ,_B FIRST 2 YEARS OF 5 YEAR C.I.P. --711111 UI IIi1'11 °,��eay,` HU il 11111T,L f WATER IAIPROVEllEN1S e u •• 1111/111/t LAST 3 YEARS OF 5 YEAR C.I.P. I .. 0oWmmm44 ® WASTEWATER IMPROVFMFNTS 110.111 111Ceu / FIRST 2 YEARS OF 5 YEAR C.I.P. ` 1 /11111/ 11'llp , 1 1u�000CCCEII.'?I .II[EII 1'ETor::/ MOPwad/1/70C0•00/10,000,0061A.1.0/1/70C0•00/10,000,0061A.1.01/1/70C0•00/10,000,0061A.1.01001• .1..•.w•Rx D.•40.1/COgra ■....• //V 0 S.Yw..AM•00OR PAP STATOR II Il Il//p/ • 00.131 PUP lox R. .'a,. ..a"...' 111111=Ill •• 1,670•0011KM.ano �•.�+ n tJlll,i - ioR ealc•um soar=n..Mr. &,71 Rea 5web ou..► Q MHC Arm cvo4T-w.0 TOR.•+a \I 1•40u0.00,O".0. 0 S'AFAR C:, ..Da.-•Rrl.MLS*2'TAILS.Mr K \ ra � z.1000 ,.. • CITY OF MIAMI BEACH, FLORIDA HIGHEST PRIORITY FOR IMPROVEMENTS: AREAS OF WORST DETERIORATION OF CITY SANITARY SEWER LINES ..m • - _� ./ • _,�. -- 1,114.1.:01 l 13.1"11 r -w i r I I r 1 r _._ I r ,=,.. 1 r r 112,111 i_f i ORM AV/ I(1 Oa. 0 1.750 R. 3.500 ft. 7.000 ft. I. Lin P. r SCALE 1 = 3.500 ft. I r �\ 1 / I 1 I - = 1,000,000.P.D.—1,300,000G.P.O. IMO P.0 - = 750,000 G.P.D.-999,999 G.P.D. 1 I I 500.000 G.P.D.—749,999 G.P.D. \ \ — � - I = 250.000 G.P.D.—499,999 G.P.D. � I A . = 100,000 G.P.0—249.999 G.P.D. r 1 - 30.000 G.P.D.—99.999 G.P.O. 3 CITY OF MIAMI BEACH, FLORIDA HIGHEST PRIORITY FOR IMPROVEMENTS: AREAS OF WORST DETERIORATION . OF CITY STORMWATER SYSTEM IAl. i : u; __ � .� ` - Alit flt: ' IJ1 MI - fl a®m11 %��f �`'r AILO-11111.- �� NORTH SHORE STREETSCAPE I:: STORMWATER IMPROVEMENTS � 11 LI i �� Illj 1f I VI , !I.��S�'ti '4i, )i/ ii:iii:11 1 / •� L/111414 -mow .R 1617d:ill.. }1 "... ti R�i 1� ,Liav .4„,"_..__,_,t...,PAA-,' _ co't a. I: II Ai Da. -:� - PE3m . Ig. ., ei� ,--- t -4 "Ili 11 Lill ttl 'lll. l 0 660ft 1/t,,de •/2 mole F w.... 1 SCALE. 1 '.n. = t!a r 1e Niiiil, :. f • fl '..".....,......,.....,..„.„.....„..: -- .-114.411:F;thc, ' ,- / e BASIN IDENTIFICATION \���fqqi��E9;;• 1111 BASINS INCLUDED IN THE FIRST 2 YEARS OF 5 YEAR C.I.P. \ ® BASINS INCLUDED IN THE LAST 3 YEARS OF 5 YEAR C.I.P. 4 • • t N . 1-r1 O . T - N . I . v N L I a) -1' - t') +j co, QJ a 0.0 L-0 bD • UO •r-1 , a b U zal w a) J 0 E V C77� U R1 .H H .Q' O H .)-ii U • v a) X) +-1 G v �+ --1 b 4J 0 •-I •r G ni a) cn 4