LTC 472-2018 Fire Sprinkler System Base Facility ChargesMJAMIBEACH
OFFICE OF THE CITY MANAGER
LTC# LETTER TO COMMISSION
472-2018
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager ~..{6c()Z..M.
DATE: August 29, 2018
SUBJECT: Fire Sprinkler System Base Facility Charges
Fiscal Year (FY) 2017 Ordinance Revision
During the FY 2017 budget process, the City of Miami Beach amended Appendix A to Chapter 110,
Section 166 of the City Code, entitled "Fee Schedule," to increase and restructure the water rates and
sanitary sewer service charges imposed by the city. Amongst these changes was the creation of a new
monthly Fire Sprinkler System fee imposed to structures with fire sprinkler lines (fee schedule is listed
below), such as apartment buildings, condominiums, commercial locations, hotels, and other large
dwellings. Although this fee was approved by the City Commission in FY 2017, the fee was not
implemented pending completetion of a citywide fire sprinkler system inventory for billing purposes.
FIRE SPRINKLER SYSTEM FEES
11 0-166(f) Fire Sprinkler System 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
This new fee was approved after the City retained the firm of Public Resources Management Group,
Inc. to assist in the 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 FY 2017 budget.
Among these projected funding needs was included a requirement that the revenues of the Utility
System shall at all times meet the rate covenant requirements, as delineated in the City's debt service
obligations, for outstanding Water and Sewer Bonds.
The City will be charging the Fire Sprinkler System monthly charge to all privately owned fire protection
systems connected to the City's Water System. Fire protection systems are individual customer
specific connections and are charged based on the size of the service line connecting the private
system to the City's Water System.
Completion of Citywide Fire Sprinkler System Inventory
The City has now completed the arduous task of physically visiting and inspecting every apartment
building, condominium, commercial location, hotel, and other large dwellings which may contain a fire
sprinkler system.
The City anticipates mailing out the first billing for Fire Sprinkler System Fees, commencing with
October 1st, 2018 billings. The City will be advising utility accounts of the impending increase via
postcards mailed out to all affected accounts.
Projected monthly revenues are $35,281, equating to projected annual revenues of $423,376.
Projected Monthly Revenues
~ Condominium Apartment Commercial Hotel Additional Total
Meter Size Rate Revenues Revenues Revenues Revenues Revenues Revenues
2 $9 34 $ 65 38 $ 112 08 $ 7 4 72 $ 18 68 $ 9 34 $ 280 20
3 $17.18 103.08 309.24 223.34 17.18 17.18 670.02
4 $26.00 4,602.00 1,586.00 5,928.00 2,600.00 156.00 14,872.00
6 $50.50 5,959.00 454.50 5,353.00 1,010.00 50.50 12,827.00
8 $79.90 2,237.20 159.80 2,237.20 1,118.60 79.90 5,832.70
10 $114.20 342.60 -342.60 -114.20 799.40
$ 13 309 26 $ 2,621.62 $14158.86 $4 764.46 $ 427.12 $ 35 281 32
For any inquiries pertaining to Fire Sprinkler System Fees, please feel free to contact Public Works
Director Roy Coley for clarification of the fee or Chief Financial Officer John Woodruff for billing
inquiries.
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