R5M-Amend Chapter 110 Increase Stormwater Utility Service ChargeCOMMISSION ITEM SUMMARY
Condensed Title:
An Ordinance of the Mayor and City Commission of the City of Miami Beach, Florida Amending Chapter 110 of
The Miami Beach City Code, Entitled "Utilities;" Amending Article lll, Thereof Entitled "Stormwater Utility;"
Amending Section 1 10-109 Thereof Entitled "Stormwater Utility Fees," By Amending Appendix A Thereto Entitled
"Fee Schedule" To lncrease the Stormwater Utility Service Charge lmposed by the City as of October I , 2014;
Providinq for Severabilitv, and an Effective Date.
Ensure well maintained infrastructure
Supporting Data (Surveys, Environmental Scan, etc.): Consistent with prior surveys, the 2009 community
survey, storm drainage was identified as areas for improvement, although improved from prior surveys. More
than half of residential and business rated storm drainaqe as fair or
lssue:
Shall the Mayor and City Commission approve the amendment to the Ordinance on first reading and schedule
a second
Item Summary/Recommendation :
On June 9, 2010, the City authorized development of a Citywide Comprehensive Stormwater Management Master
Plan (SWMMP) which was adopted on November 14,2012 to evaluate and update its Stormwater management
practices, infrastructure, funding and regulatory policies. The SWMMP was intended to be a guide for improving
the City's Stormwater management system performance for the next 20 years, with considerations to potential sea
level rise over this time period.
On February 12, 2014, the City of Miami Beach Commission approved the recommendation of the Flooding
Mitigation Committee to amend the City's Stormwater Management Master Plan by modifying the design criteria to
meet the continuing flooding conditions in the City.
At the March 4,2014 meeting of the Mayor's Blue Ribbon Panel on Flooding and Sea Rise and the March 26,2014
meeting of the Flooding Mitigation Committee, Patricia Walker, Chief Financial Officer, discussed the necessity and
process to raise Stormwater fees to cover the cost of financing the enhancements to the Stormwater System.
At the Commission meeting of April 23,2014, the Mayor and City Commission approved Resolution 2014-28580
accepting the recommendations of the Mayor's Blue Ribbon Panel on Flooding and Sea Rise to design and
implement the upgrade of the City's storm drainage system to meet the new design criteria set by the City
Commission with a potential estimated cost of $300 million and with a target completion timeframe between 3 to 5
years.
ln order to be able to provide coverage to issue the first series of additional bonds, the Administration proposes a
monthly Stormwater rate of $16.67 per Equivalent Residential Unit ("ERU) which represents an increase for a
residential customer of $7.61 per month or 84o/o above the FY 2013114 rate of $9.06 per month.
The Finance and Citywide Projects Committee (FCWPC) met on May 20, 2014 to review the proposed Ordinance
amendment, but elected to refer the item to the full Commission for its consideration.
THE ADMINISTRATION RECOMMENDS APPROVING THE AMENDMENT TO THE ORDINANGE.
Source of
Funds:
Amount Account Approved
1
2
OBPI Total
Finance and Citywide Projects Committee, Mayor's Blue Ribbon Panel on Flooding and Sea Rise, Flooding
Financial I nformation :
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AGENDA ITEIH
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g MIAMIBEACH
City of Miomi Beoch, 1200 Convention Cenler Drive, Miomi Beoch, Florido 33I 39, www.miqmibeochfl.gov
COMMISSION MEMORANDUM
Mayor Philip Levine and
Jimmy L. Morales, City Manager
July 23,2014
AN ORDINANGE OF THE MA'AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 110 OF THE MIAMI
BEACH CITY CODE, ENTITLED "UTILITIES;" AMENDING ARTICLE lll
THEREOF, ENTITLED "STORMWATER UTILITY;" AMENDING SECTION
110.109 THEREOF ENTITLED "STORMWATER UTILITY FEES,'' BY
AMENDING APPENDIX A THERETO ENTITLED ..FEE SCHEDULE,'' TO
INCREASE THE STORMWATER UTILITY SERVICE CHARGE IMPOSED BY
THE CITY AS OF OCTOBER 1,2014; PROVIDING FOR CODIFICATION,
REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE.
ADMI NISTRATION RECOMMEN DATION
The Administration recommends approving the Ordinance amendment on first reading and
scheduling a second reading public hearing.
BACKGROUND
On June 9, 2010, the City authorized development of a Citywide Comprehensive
Stormwater Management Master Plan (SWMMP) which was adopted on November 14,
2012 to evaluate and update its Stormwater management practices, infrastructure, funding
and regulatory policies. The SWMMP was intended to be a guide for improving the City's
Stormwater management system performance for the next 20 years, with considerations to
potential sea level rise over this time period.
On February 12, 2014, the City of Miami Beach Commission approved the
recommendation of the Flooding Mitigation Committee to amend the City's Stormwater
Management Master Plan by modifying the design criteria to meet the continuing flooding
conditions in the City. The sea level design criteria was changed to reflect seasonal high
tides and this will require alldrainage outfalls to be pumped and the discontinuance of the
existing injection wells. The SWMMP provided a preliminary schedule of prioritized capital
improvements based on earlier criteria but does not include the improvements associated
with the revised criteria.
TO:
FROM:
DATE:
SUBJECT:
FIRST READING
676
July 23, 2014 City Commission Memo
FY15 Stormwater Rate Ordinance MEMO
Page 2 of 3
Atthe March 4,2014 meeting of the Mayor's Blue Ribbon Panelon Flooding and Sea Rise
and the March 26,2014 meeting of the Flooding Mitigation Committee, Patricia Walker,
Chief Financial Officer, discussed the necessity and process to raise Stormwater fees to
cover the cost of financing the enhancements to the Stormwater System.
At the Commission meeting of April 23,2014, the Mayor and City Commission approved
Resolution 2014-28580 accepting the recommendations of the Mayor's Blue Ribbon Panel
on Flooding and Sea Rise to design and implement the upgrade of the City's storm
drainage system to meet the new design criteria set by the City Commission with a
potential estimated cost of $300 million and with a target completion timeframe between 3
to 5 years. The estimate includes the Stormwater portion of future neighborhood projects,
the retrofit of some previously constructed neighborhood Stormwater systems, and
miscellaneous Stormwater upgrades that have been identified by the Public Works
Department. The upgrades include the installation of 35 large and 30 small pump stations
and the conversion of 21 injection pumps.
At the Special Finance and Citywide Projects Committee (FCWPC) meeting of May 20,
2014 the Administration presented the funding strategy for this program recommending
issuing three separate $100 million Stormwater bonds. The first issue would be in FY 14-15
and other issues would follow as funding was needed. The need for future bond issues
may be reduced by the establishment of Stormwater impact fees, the removal of certain
restrictions on capital funds currently held by the City and any grant funds for which the
City may be eligible. The FCWPC elected to refer the item to the full Commission for its
consideration.
Rate requirements for Additional Stormwater Bonds
To determine the rates necessary to support the issuance of the first $100 million of
Stormwater Revenue Bonds, the Administration completed a series of pro-formas to
calculate the rate increases required to cover debt repayment of future Stormwater bonds.
The calculation considered debt service coverage based on two requirements of the
existing Stormwater Revenue Bond Resolution.
The first requirement, termed the additional bonds test, requires that net revenues
available for debt service be no less than 1 10 percent of the maximum annual debt service
of the outstanding plus prospective debt to be issued, for at least 12 consecutive months of
the 18 months priorto the issuance of additional bonds or, if priorto the issuance of the
proposed additional bonds, the rates are increased, then such rates may be used to project
the Net Revenues as though they were in place during the period.
The second requirement, which must be fulfilled annually, regardless of any prospective
debt issue, is termed the rate covenant, Net revenues available for debt service in each
fiscalyear must not be less than 110 percent of the principal and interest requirements for
such fiscal year to meet the rate covenant. ln addition to meeting the two debt service
coverage requirements, annual revenues must be sufficient to meet other operating and
maintenance expenditure requirements without resulting in a cash flow deficit.
677
July 23, 2014 City Commission Memo
FY1 5 Stormwater Rate Ordinance MEMO
Page 3 of 3
The Stormwater Enterprise fund is anticipated to need the capacity to issue tax-exempt
debt in the amount of $100 million, plus issuance costs, by early FY 2014115 to cover the
costs of Stormwater improvement projects which will include any amounts committed from
the line of credit. The second issue of $100 million could be issued in FY 2016117 and the
third issue of $100 million could be issued in FY 2018119, as the funding is needed to
support the Stormwater improvement projects.
ln order to be able to provide coverage to issue the first series of additional bonds, the
Administration proposes a monthly stormwater rate of $16.67 per Equivalent Residential
Unit ("ERU") which represents an increase for a residential customer of $7.61 per month or
84o/o above the FY 2013114 rate of $9.06 per month.
FY
2013t14
Rate
FY
2014t15
Proposed
Rate
Difference
from FY
2009t10 % Change
Stormwater $e.06 $16.67 $7.61 84%
The recommended rate is conservative in the area of needed bond coverage based on the
information developed to date. The Administration will continue to work on the capital
needs and anticipates having more information before it is necessary to actually issue the
bonds.
The table below projects increases from FY 2014115 through FY 2018/19 including
increases for the second and third debt issuances, if needed; however, this Ordinance
amendment only includes a rate increase proposalfor FY 2014115. As with this year, we
will refine these on an annual basis.
Stormwater
Prooosed Fees
Current
Rate
FY
2014t15
FY
2015t16
FY
2016t17
FY
2017118
FY
2018t19
Monthlv Charoe $ 9.06 16.67 16.67 $ 23.01 $ 23.01 $ 27.38
o/o Fee lncrease 84o/o 0o/o 38o/o lYo 19o/o
Monthly lncrease $ 7.61 $ 6.34 $ 4.37
CONCLUSION:
The Administration recommends approving the Ordinance amendment on first reading and
scheduling a second reading public hearing.
JLM/PDWGE
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678
ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER
1 10 OF THE MIAMI BEACH CITY CODE, ENTITLED
"UTILITIES"; AMENDING ARTICLE Il! THEREOF, ENTITLED,'STORMWATER UTILITY,'' AMENDING SECTION 110.109
THEREOF ENTITLED "STORMWATER UTILITY FEES," BY
AMENDING APPENDIX A THERETO ENTITLED "FEE
SCHEDULE," TO INCREASE THE STORMWATER UTILITY
SERVICE CHARGE IMPOSED BY THE CITY AS OF OCTOBER
1, 2014; PROVIDING FOR CODIFICATION, REPEALER,
SEVERABILITY, AND AN EFFECTIVE DATE.
WHEREAS, the City owns and operates a Stormwater Utility System ("System"), which
is currently funded by a stormwater utility service charge; and
WHEREAS, a Capital lmprovement Program (the "Program") has been developed to
implement stormwater improvements for the System; and
WHEREAS, it is necessary to finance the Program through the issuance of
Stormwater Revenue Bonds; and
WHEREAS, the schedule of rate increases proposed her.ein will provide sufficient
revenues for the payment of principal and interest on the proposed Stormwater Revenue Bonds;
and
WHEREAS, the rate increases proposed herein include funding for additional costs for
operation and maintenance of the System.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
SECTION 1: That Appendix A to Section 1 10-109 (c) of Article lll of Chapter 1 10 of the Miami
Beach City Code is hereby amended as follows:
APPENDIX A
FEE SCHEDULE
***
679
Secfion
this Code
Description
***
Amount
$ 9.06
$16.67
110-109(c) Stormwater utility service charge effective with billings on
or after the following dates shall be as follows:
October 1, 2009
October 1.2014
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
re-lettered 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 are and the same are hereby
repealed.
SECTION 4. SEVERABILITY
lf 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 constitutional, 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 1't day of October,2014.
PASSED and ADOPTED this day of
ATTEST:
2014
PHILTP LEVINE, MAYOR
RAFAEL E. GRANADO, CITY CLERK
APPROVED AS TO
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