Resolution 2024-33320 RESOLUTION NO. 2024-33320
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 SEPTEMBER
20, 2024 MEETING, DIRECTING THE ADMINISTRATION TO: (1) ENGAGE A
THIRD-PARTY CONSULTANT TO RUN AN ANALYSIS OF THE SUNSET
HARBOUR PUMP STATION TO DETERMINE THE SCOPE AND COST OF ANY
REQUIRED CAPITAL IMPROVEMENTS AND (2) WORK WITH THE CITY
ATTORNEY TO NEGOTIATE THE TRANSFER OF THE SUNSET HARBOUR
PUMP STATION TO THE CITY'S CONTROL, WITH THE SUBSEQUENT COST
SHARED BETWEEN THE CITY AND THE SUNSET HARBOR COMMUNITY.
WHEREAS, On April 3, 2024, at the request of Commissioner David Suarez, the Mayor and
City Commission ("City Commission"), approved a referral to the Finance and Economic Resiliency
Committee ("FERC"), Item C4L, to discuss the possibility of having the City assume control and
management of the Sunset Harbour Pump Station; and
WHEREAS, the Sunset Harbour North Tower, Sunset Harbour South Tower, Townhomes in
Sunset Harbour, and Yacht Club (collectively, the "Properties") within the Sunset Harbour
neighborhood are all serviced by one (1) sanitary sewer Pump Station. The Developer(s) of these
properties decided to install a private Pump Station rather than provide the required upgrades to the
public infrastructure in this neighborhood in order to service these buildings; and
WHEREAS, the Pump Station, which provides critical waste infrastructure for the Properties,
is presently privately owned, operated, and maintained by the associations that represent the
Properties. However, due to recurring issues surrounding the permitting, operation and maintenance
of the Pump Station, the associations requested that the City take over the management
responsibilities of the Pump Station, in exchange for a financial compensation to the City; and
WHEREAS, as part of the discussion, sponsoring Commissioner Suarez requested that City
staff provide an assessment, recommendations, concerns, and the financial impact to the City for
potentially taking on this initiative; and
WHEREAS, the Public Works Department completed its assessment and presented its
results at the June 28, 2024 FERC meeting, listed below:
• This particular Pump Station has been undergoing upgrades which as of yet, have not been
completed. It is recommended that the upgrades be completed and approved before
completing any transfer of ownership. It is also recommended that a third-party consultant
evaluate the existing conditions,these proposed/ongoing improvements, as well as additional
requirements for public utility Pump Stations—which are more stringent than those for private
Pump Stations; and provide recommendation for any applicable additional improvements
needed and their cost.
• The transfer will also require regulatory approval.
• Since the Pump Station is on private property, the City would require legal instruments, non-
revocable permanent easements or deeding of title to the land occupied by the station and
the associated piping so that Public Works can operate and maintain the assets.
• There are numerous private pumps station throughout the City, including at the New World
Symphony, Loews and Fontainebleau hotels, as well as other locations. Should the City
decide to take over the Sunset Harbour Pump Station, similar requests from other properties
owners may potentially follow.
• The estimated cost for bringing the Sunset Harbour Pump Station up to standards including
design, construction, legal costs, permitting, operation and maintenance will be estimated by
a third-party consultant. The annual Operations and Maintenance (O&M)costs for the City to
maintain the station was estimated by Public Works to be approximately $60,000; and
WHEREAS, due to the reasons mentioned above, the Administration recommended against
the ownership of the Pump Station by the City; and
WHEREAS, at the June 28, 2024 FERC meeting, a motion was made to continue the
discussion to the next meeting and to have the Administration conduct a search of documents
pertaining to development orders and/or any other relevant documentation related to the Sunset
Harbour Pump Station, and bring it back for discussion; and
WHEREAS, on September 20, 2024, FERC members were presented a signed and sealed
set of as-built plans on record, dated 08/21/95, which showed two buildings (The Sunset Harbour
North Tower and Sunset Harbour South Tower) located on Purdy Avenue, as being connected; and
WHEREAS, two additional towers (Proposed Townhouse 1 and Proposed Townhouse 2),
located on 20th Street, were proposed to be connected on a future date; and
WHEREAS, the additional two townhouses, once built, would have had required an
additional plans submittal for review and approval by the City and Miami-Dade County Department
of Environmental Resource Management, to ensure the station had adequate capacity; and
WHEREAS, discussions followed by the Sunset Harbour Community ("SHC")
representatives and City staff, with the SHC continuing to voice its concerns about feared
consequences from not having the City take over the Sunset Harbour Pump Station they currently
manage, including public and environmental concerns should the Pump Station overflow into the
Biscayne Bay; and
WHEREAS, Public Works stated that by accepting management responsibilities of the Pump
Station, the City would be taking over the financial responsibility of having to hire a consultant to run
an analysis of the Pump Station, to ensure that the design for the system is sound, and that the
pumps in place are those that match the required operating point that was intended for the
system; and
WHEREAS, additionally, the City would be creating a precedent for future requests to take
over other existing private Pump Stations; and
WHEREAS, FERC members recognized that while this would be creating a precedent for
future pump station acquisitions by the City, this was a singular case where an entire neighborhood
of over 2,000 residents is involved; and
WHEREAS, also, there was absence of evidence demonstrating that a maintenance
agreement was ever agreed to or executed. Discussions continued about the City taking over the
operational side of the Pump Station; and
WHEREAS, the City requested that SHC provide the City financial documentation and costs
for operating the Pump Station; and
WHEREAS, after the City has engaged the consultant for design and cost estimates, the
Administration will review the SHC operating costs, and negotiate sharing ongoing operating costs;
and
WHEREAS, the discussion concluded with a motion from FERC members to move the item
to the City Commission, with a favorable recommendation to: (1) engage a third-party consultant, to
run an analysis of the Sunset Harbour Pump Station to determine any required capital improvements
scope and cost, and (2)work with the City Attorney to negotiate the transfer of the Sunset Harbour
Pump Station to the City's control, with sharing of cost between the parties to be determined after
the City has engaged the consultant to determine the costs.
NOW, THEREFORE, BE IT DULY 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 September 20, 2024
meeting, and direct the Administration to: (1) engage a third-party consultant, to run an analysis of
the Sunset Harbour Pump Station to determine the scope and cost of any required capital
improvements, and (2) work with the City Attorney to negotiate the transfer of the Sunset Harbour
Pump Station to the City's control,with the subsequent costs shared between the City and the Sunset
Harbor Community. / /
PASSED AND ADOPTED this 30 day of OG1er 2024.
_,___yitet:r„4„..t._
Steven Meiner, Mayor
ATTEST:
NOV 0 5 2024 APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Rafael E. Granado, City Clerk • .,
=.o •s','- /O/2:Z/24,2¢.
City ey .DoT Date
iINCORP ORATED!
Sponsored by Commissioner David Suarez
Co-Sponsored by Commissioner Joseph Magazine
Resolutions - C7 Q
MIAMI BEACH
v
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: October 30, 2024
TITLE: 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 SEPTEMBER 20,
2024 MEETING, DIRECTING THE ADMINISTRATION TO: (1) ENGAGE A THIRD-
PARTY CONSULTANT TO RUN AN ANALYSIS OF THE SUNSET HARBOUR
PUMP STATION TO DETERMINE THE SCOPE AND COST OF ANY REQUIRED
CAPITAL IMPROVEMENTS AND (2) WORK WITH THE CITY ATTORNEY TO
NEGOTIATE THE TRANSFER OF THE SUNSET HARBOUR PUMP STATION TO
THE CITY'S CONTROL, WITH THE SUBSEQUENT COST SHARED BETWEEN
THE CITY AND THE SUNSET HARBOR COMMUNITY.
BACKGROUND/HISTORY
On April 3, 2024, at the request of Commissioner David Suarez, the Mayor and City Commission
(City Commission); .approved a referral to the Finance and. Economic Resiliency Committee
(FERC), Item C4L, to discuss the possibility of having the City assume control and management
of the Sunset Harbour Pump Station.
The Sunset Harbour North Tower, Sunset Harbour South Tower,Townhomes in Sunset Harbour,
and Yacht Club (collectively, the "Properties") within the Sunset Harbour neighborhood are all
serviced by one (1) sanitary sewer Pump Station. The Developer(s) of these properties decided
to install a private Pump Station rather than provide the required upgrades to the public
infrastructure in this neighborhood in order to service these buildings.
The Pump Station, which provides critical waste infrastructure for the properties, is presently
privately owned, operated, and maintained by the associations that represent these properties.
However, due to recurring issues surrounding the permitting, operation, and maintenance of the
Pump Station, the associations requested that the City take over the management responsibilities
of the Pump Station, in exchange for financial compensation to the City. •
Sponsoring Commissioner Sugrez gs part of the discussion, requested(that ity staff provide an
assessment, recommendations, concerns, and the financial-impact to,.the City for potentially
taking on this initiative.
ANALYSIS
The Public Works Department completed its assessment and presented its results at the June
28, 2024 FERC meeting, listed below:
• This particular Pump Station has been undergoing upgrades which as of yet, have not
been completed. It is recommended that the upgrades be completed and approved before
completing any transfer of ownership. It is also recommended that a third-party consultant
evaluate the existing conditions, these proposed/ongoing improvements, as well as
additional requirements for public utility Pump Stations—which are more stringent than
Page 635 of 2497
those for private Pump Stations; and provide recommendation for any applicable
additional improvements needed and their cost.
• Theiransfer will also require regulatory approval.
• Since the Pump Station is on private property, the City would require legal instruments,
non-revocable permanent easements or deeding of title to the land occupied by the station
and the associated piping so that Public Works can operate and maintain the assets.
• There are numerous private pumps station throughout the City, including at the New World
Symphony, the Loews and Fontainebleau hotels, as well as other locations. Should the
City decide to take over the Sunset Harbour Pump Station, similar requests from other
properties owners may potentially follow.
• The estimated cost for bringing the Sunset Harbour Pump Station up to standards
including design, construction, legal costs, permitting, operation and maintenance will be
estimated by a third-party consultant. The annual Operations and Maintenance (O&M)
costs for the City to maintain the station was estimated by Public Works to be
approximately $60,000.
Due to the reasons mentioned above,the Administration recommended against the City assuming
ownership of the Pump Station. At the June 28, 2024 FERC meeting, a motion was made to
continue the discussion to the next meeting and to have the Administration conduct a search of
documents pertaining to development orders and/or any other relevant documentation related to
the Sunset Harbour Pump Station, and bring it back for discussion.
On September 20, 2024, FERC members were presented a signed and sealed set of as-built
plans on record, dated 08/21/95, which showed two buildings (The Sunset Harbour North Tower
and Sunset Harbour South Tower)located on Purdy Avenue, as being connected. Two additional
towers (Proposed Townhouse 1 and Proposed Townhouse 2), located on 20th Street, were
• proposed to be connected at a future date. The additional two townhouses, once built, would
-have required that additional plans be submitted for review and approval by the City and Miami-
Dade County Department of Environmental Resource Management, to ensure that the station
had adequate capacity.
Discussions followed by the Sunset Harbour Community (SHC) representatives and City staff.
The SHC continued voicing their concerns about feared consequences from not having the City
take over the Sunset Harbour Pump Station they currently manage, including public and
environmental issues should the Pump Station overflow into the Biscayne Bay.
Public Works stated that by accepting management responsibilities of the Pump Station, the City
would be taking over the,financial responsibility of having to hire a consultant to run an analysis
of the Pump Station to ensure that the design for the system is sound, and that the pumps
currently in place are at the required operating point that was intended for the system.
Additionally, the City would be creating a precedence for future requests to take over other
existing private Pump Stations.
FERC members Sagreed that while pis would be creating pre edence, this was a singular case
0.
where an entire neighborhood of over 2,000 residents are impacted. Also, there was an absence
of documents proving a maintenance agreement was in place or formally executed. Discussions
continued with regard to the City taking over the operational side of the Pump Station. -It was
requested that the SHC provide the City with financial documentation and all associated costs for
operating the Pump Station. After the City has engaged the consultant for design and cost
estimates, the Administration will review the SHC operating costs and negotiate the sharing of
the ongoing operating costs.
The discussion concluded with a motion from FERC members to move the item to the City
Commission, with a favorable recommendation to: (1) engage a third-party consultant, to run an
Page 636 of 2497
analysis of the Sunset Harbour Pump Station to determine any required capital improvements
scope and cost, and (2)work with the City Attorney to negotiate the transfer of the Sunset Harbour
Pump Station to the City's control, with sharing of cast between the parties after tile City has
engaged with the consultant to determine the costs.
FISCAL IMPACT STATEMENT
The consulting costs are still under evaluation. However, a budget of one hundred thousand
dollars ($100,000) has been allocated for engineering consulting services within the sewer
professional services budget. Should the consultant fees exceed this allocated amount, Public
Works will facilitate a budget transfer from the contingency account to the professional services
account to secure the necessary funds.
CONCLUSION
The Administration recommends accepting the recommendation of the Finance and Economic
Resiliency Committee at its September 20, 2024 meeting, to: (1)engage a third-party consultant,
to run an analysis of the Sunset Harbour Pump Station to determine any required capital
improvements scope and cost, and (2)work with the City attorney to negotiate the transfer of the
Sunset Harbour Pump Station to the City's control, with sharing of cost between the parties after
the City has engaged the consultant to determine the costs.
Applicable Area
South Beach
Is this a "Residents Right to Know" items Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Project?
Yes No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s)and principal(s):
Department
Public Works
Sponsor(s)
Commissioner David Suarez
f ( f
Condensed Title
Accept Recom/Negotiate to Assume Control/Manage Sunset Harbour Pump Station. (Suarez)
PW
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