Ordinance 2000-3261 ORDINANCE NO. 2000-3261
AN ORDINANCE OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,
AMENDING CHAPTER 110 OF THE CITY OF MIAMI
BEACH CITY CODE ENTITLED "UTILITIES," AMENDING
ARTICLE IV, ENTITLED "FEES, CHARGES, RATES, AND
BILLING PROCEDURES DIVISION 2. RATES, FEES AND
CHARGES," TO INCREASE THE WATER SUPPLY
SERVICE CHARGE IMPOSED BY THE CITY; ADJUSTING
THE SCHEDULE OF RATES FOR THE MINIMUM
MONTHLY WATER SERVICE CHARGE;AND INCREASING
THE SANITARY SEWER SERVICE CHARGE IMPOSED BY
THE CITY;PROVIDING FOR CODIFICATION, REPEALER,
SEVERABILITY,AND AN EFFECTIVE DATE.
WHEREAS, the City has implemented a Water and Sanitary Sewer System Improvement
Program (Program), which is funded by Water and Sewer Revenue Bonds; and
WHEREAS, in 1995, the first series of Water and Sewer Revenue Bonds was issued to
construct Phase I improvements for the Program; and
WHEREAS, a second series of Water and Sewer Revenue Bond (i.e. Series 2000 Water and
Sewer Revenue Bonds) is required in order to continue the Program; and
WHEREAS, the schedule of rate increases provided herein provides for payment of
principal and interest for the Series 1995 Water and Sewer Revenue Bonds and Series 2000 Water
and Sewer Revenue Bonds; and
WHEREAS, the rate increases provided herein include funding for additional costs for
operation and maintenance of the City's water and sanitary sewer systems; and
WHEREAS,the rate increases provided herein also include payment of the Department of
Environmental Resources Management fee.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA as follows:
SECTION 1: That Article IV of Chapter 110 of the Miami Beach City Code is hereby amended as
follows:
Section Description Amount
this Code
Article IV, Fees, Charges, Rates and Billing Procedure
Division 2. Rates, Fees and Charges
110-166(a) Minimum Service Charge:
Size of Gallons of Minimum
Service Water per Monthly
Pipe Month Service Charge
Meter
Effective for billings on or
After October 1, 2000
3/4" 5,000 $10.80 11.05
1" 7,000 15.12 15.47
11/2" 11,000 23.76 24.31
2" 17,000 36.72 37.57
3" 40,000 86.10 88.40
4" 80,000 172.80 176.80
6" 120,000 259.20 265.20
8" 200,000 432,00 442.00
Size of Gallons of Minimum
Meter Water per Monthly
Month Service Charge
Effective for billings on
or After October 1,
2001
3/4" 5,000 $11.30
1" 7,000 15.82
11/2" 11,000 24.86
2 17,000 38.42
3 40,000 90.40
4 80,000 180.80
6 120,000 271.20
8 200,000 = 452.00
Size of Gallons of Minimum
Meter Water per Monthly
Month Service Charge
Effective for billings
on or After October 1,
2002
3/4" 5,000 $11.55
1" 7,000 16.17
11/2" 11,000 25.41
2" 17,000 39.27
3" 40,000 92.40
4" 80,000 184.80
6" 120,000 277.20
8" 200,000 462.00
Size of Gallons Minimum
Meter of Water Monthly
Service Charge
Month Effective for billings on
or After October 1,
2003
3/4" 5,000 $11.80
1" 7,000 16.52
11/2" 11,000 25.96
2" 17,000 40.12
3" 40,000 94.40
4" 80,000 188.80
6" 120,000 283.20
8" 200,000 472.00
Size of Gallons Minimum
Meter of Water Monthly
Service Charge
Month Effective for billings
on or After October 1,
2004
3/4" 5,000 $12.05
1" 7,000 16.87
11/2" 11,000 26.51
2" 17,000 40.97
3" 40,000 96.40
4" 80,000 192.80
6" 120,000 289.20
8" 200,000 482.00
Size of Gallons of Minimum
Meter Water per Monthly
Month Service Charge
Effective for billings
on or After October 1,
2005
3/4" 5,000 $12.30
1" 7,000 17.22
11/2" 11,000 27.06
2" 17,000 41.82
3" 40,000 98.40
4" 80,000 196.80
6" 120,000 295.20
8" 200,000 492.00
110-166(b) Water in excess of subsection 110-166(a), per 1,000 gallons shall be 2.16 as follows:
$2.21 per 1,000 gallons, effective with billings on or after October 1, 2000; $2.26 per 1,000 gallons,
effective with billings on or after October 1, 2001; $2.31 per 1,000 gallons, effective with billings
on or after October 1, 2002; $2.36 per 1,000 gallons, effective with billings on or after October 1,
2003; $2.41 per 1,000 gallons, effective with billings on or after October 1, 2004; and $2.46 per
1,000 gallons, effective with billings on or after October 1, 2005.
110-168(a) Sanitary sewer service charge, per 1,000 gallons shall be$3.65 as
follows: $3.73 per 1,000 gallons, effective with billings on or after October 1, 2000; $3.81 per 1,000
gallons, effective with billings on or after October 1, 2001; $3.90 per 1,000 gallons, effective with
billings on or after October 1, 2002; $3.99 per 1,000 gallons, effective with billings on or after
October 1, 2003; $4.08 per 1,000 gallons, effective with billings on or after October 1, 2004; and
$4.17 per 1,000 gallons, effective with billings on or after October 1, 2005.
SECTION 2. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby
ordained that the provisions of this ordinance shall become and be made part of the Code of the City
of Miami Beach, Florida. The sections of this ordinance may be renumbered or relettered to
accomplish such intention, and the word"ordinance"may be changed to"section", "article," or other
appropriate word.
SECTION 3. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby
repealed.
SECTION 4. SEVERABILITY.
If any section, subsection, sentence, clause, phrase or portion of this Ordinance is, for any
reason, held invalid or unconstitutional, such portion shall be deemed a separate, distinct
and independent provision and such holding shall not affect the validity or constitutionality
of the remaining portions of this Ordinance.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect on the 5th day of August , 2000, which is
10 days after its adoption.
PASSED and ADOPTED this 26th day of July , 2000.
Mayor
ATTEST:
KIVA— eV'
City Clerk
1st reading 7/12/00
2nd reading 7/26/00
Letters or numbers that are stricken through are deletions from existing ordinance.
Letters or numbers that are underlined are additions to existing ordinance.
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APPROVED AS TO
FORM& LANGUAGE
& FOR EXECUTION
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CITY OF MIAMI BEACH
1700 CONVENTION CENTER DRIVE,MIAMI BEACH FL 33139-1824
http:\\ci.miami-beach.fl.us
COMMISSION MEMORANDUM NO.C,(2-41) 0
TO: Mayor Neisen O. Kasdin and DATE: July 26, 2000
Members of the City Commission
FROM: Lawrence A. evyGik.-treit
City Mana'f
'
SUBJECT: AN ORDINANCE AMENDING THE CITY OF MIAMI BEACH CITY CODE
CHAPTER 110, ENTITLED "UTILITIES," AMENDING ARTICLE IV,
ENTITLED "FEES, CHARGES, RATES, AND BILLING PROCEDURES
DIVISION 2. RATES, FEES AND CHARGES," TO INCREASE THE WATER
SUPPLY SERVICE CHARGE IMPOSED BY THE CITY; ADJUSTING THE
SCHEDULE OF RATES FOR THE MINIMUM MONTHLY WATER SERVICE
CHARGE; AND INCREASING THE SANITARY SEWER SERVICE CHARGE
IMPOSED BY THE CITY; PROVIDING FOR A REPEALER, SEVERABILITY
AND AN EFFECTIVE DATE.
• ADMINISTRATION RECOMMENDATION
Adopt the Ordinance.
ANALYSIS
The rates for water supply and sanitary sewer §ervices consist of a pass-through of the wholesale rate the
City pays to the Miami-Dade Water and Sewer Department (WASD) for the purchase of potable water
and treatment of sewage; debt service for the Series 1995 Water and Sewer Revenue Bonds and the
proposed Series 2000 Water and Sewer Revenue Bonds; operating and maintenance costs for the water
and sewer utility; and a 7.5 percent fee paid to the Miami-Dade County Environmental Resource
Management Department (DERM). The monthly minimum service charge for water is based on the meter
size and corresponding gallons previously established by Code and will increase to reflect the proposed
rate.
In 1995, the City issued $59 million of Water and Sewer Revenue Bonds to fund Phase I of the Water and
Sewer System Improvements Program. This phase is now substantially complete and the second phase of
work is ready to begin.
AGENDA ITEM K_SC
DATE
In conjunction with this Rate Ordinance, a Bond Resolution for the proposed $55 million Series 2000
Water and Sewer Revenue Bond is being presented to the City Commission. As with the Series 1995
Bonds, the City will, in accordance with the Bond Resolution Rate Covenant, agree to charge rates for the
use of the water and sewer system, and to periodically adjust rates as necessary, so that the net revenues of
the fund for each Fiscal Year will be sufficient to provide for at least 110 percent of the principal and
interest requirements for each year that the bonds are outstanding (Debt Coverage).
The Water and Sewer Revenue Bonds are one funding component of the City's Capital Improvement
Program. These infrastructure improvements are an integral part of the G.O. Bond
neighborhood/streetscape improvements.
The water and sewer improvements program was presented at the G.O. Bond district and neighborhood
meetings and was also presented to the G.O. Bond Oversight Committee. A tabloid, describing the
program and funding was also distributed throughout the community. Additionally, a summary of the
proposed rates will be included in the customer utility bills during the summer.
This item was presented at the July 6, 2000 meeting of the Finance and Citywide Projects Committee. The
Committee approved the item and recommended referral to the City Commission. On July 12, 2000, this
ordinance was adopted on first reading.
In support of the next bond issue, a Water and Sewer Rates Feasibility Study has been prepared which
projects rates for water and sewer for the fiscal years ending September 30, 2001 through 2006. Based on
this study, the minimum rates proposed for this period are as follows:
Per 1,000 Current FY 2001 FY 2002 FY,2003 FY 2004 FY 2005 FY 2006 Cumulative
Gallons Rate Increase
Water $2.16 $2.21 $2.26 $2.31 $2.36 $2.41 $2.46 $0.30
%Increase 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 14.3%
Sewer $3.65 $3.73 $3.81 $3.90 $3.99 $4.08 $4.17 $0.52
%Increase 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 14.3%
Water and Sewer
combined Monthly
Increase
per 1,000 gallons $0.13 $0.13 $0.14 $0.14 $0.14 $0.14 $0.82
for Average Residential $1.43 $1.43 $1.54 $1.54 $1.54 $1.54 $9.02
Usage
The amount of funding to be provided for improvements to the water system is $35,050,000. Estimated
revenues generated from the 2.25 percent increase in the water rates over the 6-year period are
$8,960,000. The estimated cost increases for the Water Division include $9,060,000 for debt service for
the Series 2000 bonds, and $7,930,000 in increased operating expenses over this 6-year period.
The amount of funding to be provided for improvements to the sanitary sewer system is $19,580,000.
Estimated revenues generated from the 2.25 percent increase in the sewer rates over the 6-year period are
$13,300,000. The estimated cost increases for the Sewer Division include $5,190,000 for debt service for
the Series 2000 bonds, and $12,230,000 in increased operating expenses over this 6-year period.
The proposed rate increases are presented for the 6-year period so that the community is aware of the
planned incremental increases for this period. The attached ordinance provides for adoption of the
incremental annual water supply and sewer service rates for the period beginning October 1, 2000 through
September 30, 2006.
The City's Sanitary Sewer Infiltration and Inflow Mitigation Program will continue following the issuance
of the 2000 series bonds. Based on the improvements made to date, current flows indicate a reduction of 4
to 5 million gallons per day of infiltration. This program is necessary to comply with the Miami-Dade
County Ordinance No. 96-166, adopted as a result of a consent decree by the EPA, which requires volume
sewer customers to evaluate their sanitary sewer systems and implement improvements to reduce
infiltration and inflow.
Subsequent amendments to the ordinance may be required to implement any rate changes for the WASD
pass-through charge. So far, discussions with WASD indicate that there are no current plans to increase
the volume customer rates for either the purchase of water or treatment of sewage during the period.
Further rate changes may also be necessary to fund unanticipated or extraordinary operating costs,
maintenance costs, or significant changes in consumption such as unforeseen emergency repairs to the
system for which funding may not be available from the Water and Sewer Enterprise Fund operating fund
balance.
CONCLUSION
The City Commission should adopt the ordinance so that the improvements to the water and sewer system
may continue in coordination with the G.O. Bond neighborhood enhancements.
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