Loading...
Resolution 2020-31211 RESOLUTION NO, 2020-31211 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS FEBRUARY 28, 2020 MEETING, TO ACCEPT THE FIVE-YEAR CRITICAL NEEDS CAPITAL PLAN FOR THE CITY'S WATER AND WASTEWATER SYSTEM, TO APPROVE THE USE OF THE $24 MILLION AVAILABLE FROM BOND PROCEEDS, AND TO COMMENCE A RATE STUDY OF THE WATER AND WASTEWATER UTILITY TO DETERMINE FINANCIAL CAPACITY FOR THE WATER AND WASTEWATER WORK ASSOCIATED WITH THE JACOBS ENGINEERING NEIGHBORHOOD PRIORITIZATION AND THE REMAINING $61 MILLION DOLLARS OF CRITICAL NEEDS. WHEREAS, public infrastructure serves as the backbone of a well-run municipality, and typically, as infrastructure ages and the needs of a growing city expand, existing infrastructure requires rehabilitation and upgrades; and WHEREAS, the failure to reinvest in utility infrastructure has resulted in neighboring communities having had numerous water main breaks and sewerage spills resulting in one community being fined $1.8 million by state regulators; and WHEREAS, recognizing the increasing need to strategically invest in the water and sewer utility, the Public Works Department tasked Hazen and Sawyer with developing a Water and Sewer Master Plan that prioritizes projects over 25 years; and WHEREAS, at its October 23, 2019 Sustainability and Resiliency Committee ("SRC") meeting, Public Works staff presented to the Committee a progress update on the Water and Sewer Master Plan (the "Master Plan"); and WHEREAS, the staff stated it has reviewed the Master Plan and was ready for the Finance and Economic Resiliency Committee ("FERC") (formerly the Finance and Citywide Projects Committee) to review and to further discuss a financing plan; and WHEREAS, the SRC Committee made a motion to refer the Master Plan to the FERC to identify funding sources; and WHEREAS, the Master Plan reflects the utility's needs as defined by the Water and Sewer Master Plans and internal renewal and replacement plans; and WHEREAS, the plan accounts for an investment of $122.3 million, of which approximately $37.5 million is already funded; and WHEREAS, an additional $24 million of unencumbered water and sewer bond funds have been identified — if these funds were appropriated toward the proposed five- year critical needs capital plan, there would remain a funding gap of approximately $61 million; and WHEREAS, when planning the sequencing of projects, staff often takes into account work within the projects' proximity and, when beneficial, projects are grouped into larger neighborhood jobs; and WHEREAS, approximately $37 million of the overall $122.3 million plan have been identified as independent projects -- independent projects generally include aerial pipe crossings, subaqueous pipelines, or other work that lies outside neighborhood boundaries; and WHEREAS, thus, some projects within the Water and Sewer Critical Needs Five Year Capital Plan may fall within the boundaries of possible neighborhood jobs; and WHEREAS, however, due to the criticality of these projects, the Administration may proceed with their design and/or construction prior to the start of a neighborhood job; and WHEREAS, it is important to note that this plan only includes the critical needs defined in the Master Plan and does not encompass general water and sewer work, which may occur as part of the City's neighborhood jobs; and WHEREAS, the cost and scope of water and sewer work within neighborhood jobs will be quantified upon completion of the Jacobs Engineering Neighborhood Priority List; and WHEREAS, in order to facilitate further discussion, the Water and Sewer Five Year Priority Lists were presented to the FERC at its February 28, 2020 meeting, and within the lists, a column identified which projects are independent from larger neighborhood jobs; and WHEREAS, the estimates presented were for planning and budgeting purposes; the actual costs will be determined when the projects are fully designed and bid; and WHEREAS, FERC made a motion to proceed to the City Commission to seek acceptance of the five-year critical needs capital plan for the City's water and wastewater system, and approval of the $24 million available from bond proceeds subject to a future appropriation; and WHEREAS, additionally, FERC recommended commencing a rate study of the water and wastewater utility to determine financial capacity for the water and wastewater work associated with the Jacobs Engineering neighborhood prioritization and the remaining $61 million dollars of critical needs. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the Finance and Economic Resiliency Committee at its February 28, 2020 meeting, to accept the five-year critical needs capital plan for the City's water and wastewater system, to approve the use of the $24 million available from bond proceeds, and to commence a rate study of the water and wastewater utility to determine financial capacity for the water and wastewater work associated with the Jacobs Engineering Neighborhood Prioritization and the remaining $61 million dollars of critical needs. PASSED and ADOPTED this /1 day of ROCA. , 2020. I42-z11--,___ DAN GELBER, MAYOR ATTk-S-TV - "all RA AEL E. G A iou 0, CITY CLERK ,,c.,,,j:rs '-` I dCORP)ORATED,' l l l l f l ; <: APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION .: 4, --- City Attor Date Resolutions -C7 V MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: March 18, 2020 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS FEBRUARY 28, 2020 MEETING, TO ACCEPT THE FIVE-YEAR CRITICAL NEEDS CAPITAL PLAN FOR THE CITY'S WATER AND WASTEWATER SYSTEM, APPROVE THE USE OF THE $24 MILLION AVAILABLE FROM BOND PROCEEDS; AND TO COMMENCE A RATE STUDY OF THE WATER AND WASTEWATER UTILITY TO DETERMINE FINANCIAL CAPACITY FOR THE WATER AND WASTEWATER WORK ASSOCIATED WITH THE JACOBS ENGINEERING NEIGHBORHOOD PRIORITIZATION AND THE REMAINING $61 MILLION DOLLARS OF CRITICAL NEEDS. RECOMMENDATION The Administration recommends acceptance of the five-year critical needs capital plan for the City's water and wastewater system, and approval of the $24 Million available from bond proceeds, subject to a future appropriation. Additionally, the Administration recommends commencing a rate study of the water and wastewater utility to determine financial capacity for the water and wastewater work associated with the Jacobs Engineering neighborhood prioritization and the remaining $61 Million dollars of critical needs. BACKGROUND/HISTORY Public infrastructure serves as the backbone of a well-run municipality. Typically, as infrastructure ages and the needs of a growing city expand, existing infrastructure requires rehabilitation and upgrades. Such is the case with the City's water and sewer utility. Recognizing the increasing need to strategically invest in the water and sewer utility, the Public Works Department tasked Hazen and Sawyer with developing a Water and Sewer Master Plan that prioritizes projects over 25 years. At its October 23, 2019 Sustainability and Resiliency Committee (SRC) meeting, Public Works staff provided the members of the Committee a progress update on the Water and Sewer Master Plan. The Administration stated it has reviewed the plan and was ready for the Finance and Economic Resiliency Committee (FERC) (formerly the Finance and Citywide Projects Page 545 of 1097 Committee)for review and to further discuss a financing plan. The SRC Committee made a motion to refer the Water and Sewer System Master Plan to the FERC to identify funding sources. ANALYSIS The proposed five year critical needs capital plan for the City's water and wastewater system is summarized below Capital Project PROJECT TITLE FY20 Est.Cost FY21 Est.Cost FY22 Est.Cost FY23 Est.Cost FY24 Est.Cost Total Water&Wastewater Mains and Rehab $ 16,093,000 $ 10,277,855 $ 14,214,469, $ 15,441,872 $ 15,268,653 $ 71,295,848 Water Pump Station Improvements I $ 5,592,900 I $ 4,710,396 l $ 10,303,296 Wastewater Stations Rehab. $ 11,103,400 $ 5,209,019' $ 16,312,419 Valve Assessment&Replacement Program $ 900,000 $ 927,000 $ 954,810 $ 2,781,810 Sewer Pump Station Odor Control $ 850,600 1 $ 850,600 SCADA Sc PLC(W&S only) $ 1,625,250 $ 1,625,250 Wastewater Manhole Rehab. $ 1,500,000 $ 1,545,000 i$ 1,591,350 i$ 1,639,091 $ 1,688,263 $ 7,963,704 Water Meter Replacement $ 11,104,893 $ 11,104,893 TOTAL $ 122,237,819 This plan reflects the utility's needs as defined by the Water and Sewer Master Plans and internal renewal and replacement plans. As seen above, the plan accounts for an investment of $122.3 Million, of which approximately $37.5 Million is funded. An additional $24 Million of unencumbered water and sewer bond funds have been identified. If these funds were appropriated toward the proposed five year critical needs capital plan, there would remain a funding gap of approximately$61 Million. When planning the sequencing of projects, staff often takes into account work within the projects' proximity and, when beneficial, projects are grouped into larger neighborhood jobs. Approximately$37 Million of the overall $122.3 Million plan have been identified as independent projects. Independent projects generally include aerial pipe crossings, subaqueous pipelines, or other work that lies outside neighborhood boundaries. Thus, some projects within the Water and Sewer Critical Needs Five Year Capital Plan may fall within the boundaries of possible neighborhood jobs. However, due to the criticality of these projects, the Administration may proceed with their design and/or construction prior to the start of a neighborhood job. It is important to note that this plan only includes the critical needs defined in the Water and Sewer Master Plans and does not encompass general water and sewer work, which may occur as' part of the City's neighborhood jobs. The cost and scope of water and sewer work within neighborhood jobs will be quantified upon completion of the Jacobs Engineering Neighborhood Priority List. Page 546 of 1097 In order to facilitate further discussion, the Water and Sewer Five Year Priority Lists are attached herein. Within the lists, a column identifies which projects are independent from larger neighborhood jobs. The estimates presented herein are for planning and budgeting purposes;the actual costs will be determined when the projects are fully designed and bid. Regionally there is a growing need to reinvest in utility infrastructure. The failure to reinvest in utility infrastructure has resulted in neighboring communities having had numerous water main breaks and sewerage spills resulting in one community being fined $1.8 million by state regulators. These projects are needed to reduce the risk of similar events happening in the City of Miami Beach. At its February 28, 2020 meeting, the Finance and Economic Resiliency Committee made a motion to proceed to the full Commission to seek acceptance of the five-year critical needs capital plan for the City's water and wastewater system, and approval of the $24 Million available from bond proceeds subject to a future appropriation.Additionally, the Committee recommended commencing a rate study of the water and wastewater utility to determine financial capacity for the water and wastewater work associated with the Jacobs Engineering neighborhood prioritization and the remaining $61 Million dollars of critical needs. CONCLUSION The Administration recommends accepting the recommendation and adoption of the Resolution. Applicable Area Citywide Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? Yes No Legislative Tracking Public Works ATTACHMENTS: Description LI Water and Sewer System priority lists Page 547 of 1097 Water System Critical Needs Priority List • Independent Project Name Project Location Begin Date Total 1 W-2 Booster Station Piping Rehabilitation ✓ 75th Street and Dickens Ave 2020 $ 1.200,000.00 j Replacement of WMaerial crossings Venetian Isles ✓ Venetian Isles 2020 $ 4,420,000.00 i Rehabilitation of WM aerial crossings on MacArthur ✓ MacArthur Bridge 2020 $ 2,271,478.00j Water Main PoF/CoF Priority 1 30-inch FM Alton Rd and 41st St.,others.TBD 2020 $25,127,797.70; • 10th Street between Lenox Ave and Washington Fire Flow Project 1 Ave. 2020 $ 520,000.00 Fire Flow Project 3 Meridian Ave and 13th Street 2020 $ 250,000.00 Fire Flow Project5 Locations vary 2020 $ 150,000.00 I Meter Replacement ✓ City Wide 2020 $11,104,893.40• Valve Assessment and Replacement Program City Wide 2020 $ 1.081.815.00 i Water SCADA ✓ City Wide 2020 _$ 406,312.50I Fire Flow Project 7 Locations vary. 2021 5 72,100.00 Fire Flow Project 13 _ Michigan and 7th Ave 2021 $ 484,100.00 Fire Flow Project 16 Alton Rd.and Michigan Ave 2021 $ 638,600.00 Fire Flow Project 17 ✓ .Terminal Island 2021 5 175,100.00! Construction of New Booster Station _ North Beach 2021 5 5,592,900.00 Aerial Crossing Water Main Replacement I 41st Street between Meridian Ave and Chase Ave 2021 $ 72,100.001 I Aerial Crossing Water Main Replacement 41st Street between Pine Tree Dr and Indian Creek 2021 $ 206,000.00 Aerial Crossing Water Main Replacement ✓ 71st Street and Bonita Dr. 2021. $ 185,400.00' Water Main on MacArthur Causeway ✓ MacArthur Causeway 2022 5 4,105,683.00 Belle Isle Booster Station Rehabilitation ✓ Belle Isle • 2022 $ 4,710,396.00 Fire Flow Project 2 West Ave and Flamingo 2022 5 456,187.00 Fire Flow Project 4 Euclid and 14th PI 2022 $ 169,744.00 Fire Flow Project 15 Euclid and 14th Street 2022 $ 307,661.00 Fire Flow Project6 Collins Park 2023 $ 98,345.43 Fire Flow Project8 Meridian and 15th Street 2023 $ 131,127.24 Fire Flow Project 10 20th Street and Collins Ave 2023 $ 87,418.16' Fire Flow Project 11 18th Street and Collins Ave 2023 5 109,272.70 Fire Flow Project 12 Collins and 17th Street 2024 $ 87,418.16• Fire Flow Project 9 N.Bay Rd between 41st and 43rd St 2024 $ 821,621.43 I Fire Flow Project 14 North Beach,Varies 2024 $ 855,386.70` Total Water $65,898,857.41 • Sewer System Critical Needs Priority List Independent Project Name Project Location Begin Date Total Gravity Main Replacement-Priority 1 Basin 18(La Gorce Island),others TBD 2020 $ 4,916,259.76 Gravity Mains I/I Reduction-Priority 1(a) 04(Hibiscus),05(Palm),02(Star),others TBD 2020 $ 2,256,357.00 Venetian Way aerial crossing replacement in kind ✓ Venetian Causeway 2020 $ 770,000.00 (Valve assessment and replacement City Wide 2020 $ 1,699,995.00 `Pump Station No.2force main replacement ✓ Star Island to 10th Street and West Ave. 2020 $ 2,550,000.00 Force Mains POF/CoF Priority 1 Terminal to Star Island,Normandy Isles,other TBD 2020 $ 9,813,027.17 'Pump Station No.18 force main replacement La Gorce Island 2020 $ •550,000.00 :Odor Control System ✓ Varies 2020 $ 850,600.00 SewerSCADA ✓ City Wide 2020 $ 1,218,937.50 Manhole inspection and rehabilitation City Wide 2020 i$ 7,963,703.72 Pump Station 6,7 and 8 rerouting Belle Isle 2021 $ 1,194,800.00 Aerial crossing Pine Tree Drive 51st Street to 47th St. ✓ PIne Tree Drive 2021 $ 700,400.00 Pump Station No.28 Rehabilitation 28th Street and Pine Tree 2021 $11,103,400.00 Pump Station No.1 Rehabilitation 11th Street 2022 $ 3,140,264.00 Pump Station No.30,well lining,and electrical upgrades ✓ Terminal Island 2022 $ 2,068,755.00 Pump Station No.4force main replacement . Between Palm and Hibiscus Island 2022 $ 477,405.00 !Pump Stations No.5 force main replacement Palm Island 2022 5 413,751.00 Pump Station No.14 force main replacement Sunset Island 3 2022 5 901,765.00 Pump Station No.23 force main replacement 75th Street and Dickens Ave 2022 $ 53,045.00 Pump Station No.27 force main replacement Collins Ave and 52nd Street 2022 5 53,045.00 Gravity Mains I/I Reduction-Priority 1(b) Basin 23,other TBD 1 2023 $ 3,643,452.32 !Total Sewer I $56,338,962.47 • Page 548 of 1097