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HomeMy WebLinkAboutResolution 2025-33965RESOLUTION NO. 2025-33965 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING AS COMPLETE THE IMPROVEMENTS CONSTRUCTED PURSUANT TO THAT CERTAIN SPECIAL ASSESSMENT DISTRICT KNOWN AS THE "THE SUNSET ISLANDS 3 & 4 UTILITY IMPROVEMENT DISTRICT," PURSUANT TO SECTION 170.09, FLORIDA STATUTES. WHEREAS, on February 20, 2002, the City Commission adopted Resolution No. 2002- 24761, authorizing the City Administration and City Attorney's Office to proceed with the creation of a special assessment district, pursuant to Chapter 170, Florida Statutes, for the purpose of funding the undergrounding of overhead utility lines on Sunset Islands 3 & 4 (the "District"); and WHEREAS, on February 8, 2012, the City Commission adopted Resolution No. 2012- 27842, which, among other things, approved and allowed the Sunset Islands 3 & 4 Homeowners Association ("HOA') to proceed with the election requirement imposed by the City Commission in or about 2002, which requires that, as a condition precedent to the final establishment of the District, at least sixty percent (60%) of the benefitted property owners within the District vote in favor of its establishment and the levying of special assessments to fund the costs of the undergrounding of overhead utilities; and WHEREAS, in 2012, eighty-one percent (81%) of the homeowners on Sunset Islands 3 & 4 voted in favor of funding the undergrounding of overhead utilities through the creation, by the City Commission, of the District. Chapter 170, Florida Statutes, authorizes the City to create a special assessment district to fund the undergrounding of electrical, Florida Power and Light (FPL), telephone, AT&T (ATT), and cable television, Atlantic Broadband (ABB), services, pursuant to voluntary agreements with the utilities; and WHEREAS, the City provided advanced funding for the undergrounding work and executed agreements with each utility company based on each company's binding estimate. The City is to be reimbursed through the levying and collection of special assessments from the District; and WHEREAS, on September 10, 2014, the Mayor and City Commission adopted Resolution No. 2014-28749, pursuant to Request for Proposals No 2014-051- SR, authorizing the Mayor and City Clerk to execute an agreement with Ric -Man International, Inc., for the Neighborhood No. 8: Sunset Islands 3 & 4 Right -of -Way Infrastructure Improvements Project, the scope of work included right-of-way improvements, as well as the installation of conduits and related components for the future undergrounding of franchise utilities; and WHEREAS, on October 14, 2015, the City Commission adopted Resolution No. 2015- 29180, creating, pursuant to Chapter 170, Florida Statutes, a special assessment district to be known as the Sunset Islands 3 & 4 Utility Improvement District, for a term of ten (10) years, to fund the undergrounding of utilities on Sunset Islands 3 & 4, at an estimated cost of $ 2,412,398. The Resolution also provided for (1) the levy and collection of special assessments to fund the improvements; (2) the manner in which such special assessments shall be made; (3) when such special assessments shall be made; (4) designating the lands upon which the special assessments shall be levied; (5) for publication of this Resolution; and (6) authorizing related actions; and WHEREAS, the City executed agreements with each of the three utility companies, FPL, ATT and ABB (now serviced by Breezeline), the undergrounding of the overhead utility lines by the respective utility companies commenced after the completion of the neighborhood improvement project; and WHEREAS, in September of 2025, the undergrounding and relocation project of electrical, telephone, and cable television utilities within the District was completed and, pursuant to Section 170.09, Florida Statutes, the Mayor and City Commission must accept the project as complete, by Resolution, in order to begin collection of the aforementioned special assessment; and WHEREAS, this action formally completes the project, the improvements are in place, and the aboveground utilities and poles have been removed; and WHEREAS, the City obtained a bank loan to fund this project, no general fund revenues or reserves were used for this project. When the City Commission adopted the Resolution to create the District, the Administration began to secure financing for the project; and WHEREAS, funding allocated pursuant to this assessment has been fully expended and the collection of the assessment fees is now required to meet the associated debt service obligations; and WHEREAS, upon approval by City Commission of this Resolution confirming project completion, the City may proceed with the levy and collection of assessments, from property owners within the District, in the amount of $2,412,398. 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 as complete the improvements constructed pursuant to that certain special assessment district known as the 'the Sunset Islands 3 & 4 Utility Improvement District," pursuant to Section 170.09, Florida Statutes. PASSED and ADOPTED this /% day of DeuW f ✓ , 2025.( ATTEST: nGr 2 2 2025 Rafael E. Granado, City Clerk Steven Meiner, Mayor APPROVED AS TO FORM AND LANGUAGE & FOR -EXECUTION City Attorney �k o zz 2DZSy Date Resolutions - C7 B MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: December 17, 2025 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING AS COMPLETE THE IMPROVEMENTS CONSTRUCTED PURSUANT TO THAT CERTAIN SPECIAL ASSESSMENT DISTRICT KNOWN AS THE 'THE SUNSET ISLANDS 3 & 4 UTILITY IMPROVEMENT DISTRICT," PURSUANT TO SECTION 170.09, FLORIDA STATUTES. The Administration recommends that the Mayor and City Commission (City Commission) adopt the Resolution. BACKGROUND/HISTORY On February 20, 2002, the City Commission adopted Resolution No. 2002-24761, authorizing the City Administration and City Attorney' s Office to proceed with the creation of a special assessment district (Exhibit A), pursuant to Chapter 170, Florida Statutes, for the purpose of funding the undergrounding of overhead utility lines on Sunset Islands 3 & 4 (the "District"). On February 8, 2012, the City Commission adopted Resolution No. 2012-27842, which, among other things, approved and allowed the Sunset Islands 3 & 4 Homeowners Association ("HOA") to proceed with the election requirement imposed by the City Commission in or about 2002, which requires that, as a condition precedent to the final establishment of the District, at least sixty percent (60%) of the benefitted property owners within the District vote in favor of its establishment and the levying of special assessments to fund the costs of the undergrounding of overhead utilities. In 2012, eighty-one percent (81 %) of the homeowners on Sunset Islands 3 & 4 voted in favor of funding the undergrounding of overhead utilities through the creation, by the City Commission, of the District. Chapter 170, Florida Statutes, authorizes the City to create a special assessment district to fund the undergrounding of electrical, Florida Power and Light (FPL), telephone, AT&T (ATT), and cable television, Atlantic Broadband (ABB), services, pursuant to voluntary agreements with the utilities. The City provided advanced funding for the undergrounding work and executed agreements with each utility company based on each company's binding estimate. The City is to be reimbursed through the levying and collection of special assessments from the District. On September 10, 2014, the Mayor and City Commission adopted Resolution No. 2014-28749, pursuant to Request for Proposals No 2014-051- SR, authorizing the Mayor and City Clerk to execute an agreement with Ric -Man International, Inc., for the Neighborhood No. 8: Sunset Islands 3 & 4 Right -of -Way Infrastructure Improvements Project. The scope of work included right- of-way improvements, as well as the installation of conduits and related components for the future undergrounding of franchise utilities. 835 of 3458 ANALYSIS On October 14, 2015, the City Commission adopted Resolution No. 2015-29180, creating, pursuant to Chapter 170, Florida Statutes, a special assessment district to be known as the Sunset Islands 3 & 4 Utility Improvement District, for a term of ten ( 10) years, to fund the undergrounding of utilities on Sunset Islands 3 & 4, at an estimated cost of $ 2,412,398. The Resolution also provided for (1) the levy and collection of special assessments to fund the improvements; (2) the manner in which such special assessments shall be made; (3) when such special assessments shall be made; (4) designating the lands upon which the special assessments shall be levied; (5) for publication of this Resolution; and (5) authorizing related actions. The City executed agreements with each of the three utility companies, FPL, ATT and ASS (now serviced by Breezeline). The undergrounding of the overhead utility lines by the respective utility companies commenced after the completion of the neighborhood improvement project. In September of 2025, the undergrounding and relocation project of electrical, telephone, and cable television within the District was completed. Pursuant to section 170.09 Florida Statute, the Mayor and City Commission must accept the project as complete, by Resolution, in order to begin collection of the aforementioned special assessment. This action formally completes the project. The improvements are in place and the aboveground utilities and poles have been removed. The cost of the undergrounding project is based on the binding estimates provided by the respective utility companies (FPL, ATT, and ABS) to the City. The total cost associated with the undergrounding of the franchise utilities includes the amounts set forth in the binding estimates, costs for the City's contractor to install the infrastructure conduits and related components, project management fees, financing costs, and the City's administrative fees which total $2,412,398. The City obtained a bank loan to fund this project. No general fund revenues or reserves were used for this project. When the City Commission adopted the Resolution to create the District, the Administration began to secure financing for the project. Funding allocated pursuant to this assessment has been fully expended and the collection of the assessment fees is now required to meet the associated debt service obligations. FISCAL IMPACT STATEMENT Upon approval by City Commission of this resolution confirming project completion, the City may proceed with the levy and collection of assessments, from property owners within the District, in the amount of $2,412,398. Does this Ordinance reauire a Business Impact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: hftps:llwww.miamibeachfi.gov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION N/A 836 of 3458 CONCLUSION The Administration recommends that the City Commission adopt the Resolution. Applicable Area Middle Beach Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? Yes No Was this Aaenda Item initially requested by a lobbyist which, as defined in Code Sec. 2481, includes a principal enaaaed in lobbying? No If so, specify the name of lobbyist(s) and principal(s): Department Capital Improvement Projects Sponsorial Co-sponsor(s) Condensed Title Accept Improvements, Sunset Islands 3 & 4 Utility Improvement District. CIP Previous Action (For City Clerk Use Only) 837 of 3458 EXHIBIT A RESOLUTION NO. 2002-24761 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION AND CITY ATTORNEY'S OFFICE TO PROCEED WITH THE CREATION OF SPECIAL ASSESSMENT AREAS, ALSO KNOWN AS SPECIAL ASSESSMENT DISTRICTS, PURSUANT TO THE PROVISIONS PROVIDED IN CHAPTER 170 OF THE FLORIDA STATUTES, FOR THE PURPOSE OF FUNDING THE RELOCATION OF OVERHEAD UTILITY LINES UNDERGROUND, ON EITHER A PORTION OR ALL OF HIBISCUS ISLAND AND PALM ISLAND AND SUNSET ISLAND 3 AND SUNSET ISLAND 4, RESPECTIVELY, PURSUANT TO THE WRITTEN REQUEST OF THE PROPERTY OWNERS OF THOSE ISLANDS; AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO MAKE ALL NECESSARY PREPARATIONS TO IMPLEMENT THIS INTENT. WHEREAS, in areas of the City, utility lines for services such as telephone, electricity and cable television exist overhead; and WHEREAS, certain residential neighborhoods in the City have requested the relocation of overhead utility lines underground; and WHEREAS, the City recognizes that such relocations are generally considered an improvement, which are unique to these certain neighborhoods; and WHEREAS, the City supports neighborhood initiatives to relocate utilities underground, but cannot provide direct funding or resources to any such individual effort not enjoyed or pursued by the City as a whole; and WHEREAS, the City recognizes its inimitable ability to assist with said initiatives and to provide a collection mechanism, such as those used with special assessment areas or districts created pursuant to Chapter 170 of the Florida Statutes, at the request of individual neighborhoods; and WHEREAS, the City has received such requests from the Hibiscus Island and Palm Island and Sunset Islands 3 and 4 neighborhoods, respectively, in the form of petitions, to consider the establishment of these special assessment areas, also known as special assessment districts, to provide financing for the relocation of overhead utilities underground; and _838 of 3458_ --_ EXHIBIT A WHEREAS, on January 30, 2002, the Mayor and City Commission referred said petitions to the Finance and Citywide Projects Committee for consideration; and WHEREAS, on February 19, 2002, the Finance and Citywide Projects Committee considered said petitions and recommended that the City Commission declare its intent to proceed with the creation of the applicable special assessment areas, or districts, pursuant to Chapter 170, Florida Statutes for the Hibiscus Island and Palm Island and Sunset Islands 3 and 4 neighborhoods, respectively; and WHEREAS, the Mayor and City Commission are satisfied that sufficient public interest is served by the creation of said special assessment areas or districts. NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and the City Commission authorize the Administration and City Attorney's Office to proceed with the creation of special assessment areas, also known as special assessment districts, pursuant to the provisions provided in Chapter 170 of the Florida Statutes, forthe purpose of funding the relocation of the overhead utility lines underground, on either a portion or all of Hibiscus Island and Palm Island and Sunset Island 3 and Sunset Island 4, respectively, pursuant to the written request of the property owners of those islands; and authorize the City Manager, or designee, to make all necessary preparations to implement this intent. PASSED AND ADOPTED this 20th day of February 2002. ATTEST: CITY CLERK OR l 1�.1� • i 839 of 3458 EXHIBIT A CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY ' Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, declaring its intent to create Special Assessment Areas, for the purposes of funding the relocation of overhead utifity lines underground, on either all or a portion of Hibiscus Island, Palm Island, Sunset Island 3 and Sunset Island 4, and to make all necessary preparations to implement this intent, including, but not limited to, the preparation of a Preliminary Assessment Roll. Issue: Shall the City declare its intent to create Special Assessment Districts for the purposes of funding the relocation of overhead utility lines underground on either all or a portion of Hibiscus Island, Palm Island, Sunset Island 3 and Sunset Island 4 and authorize the Administration to make all necessary preparations to Implement this intent. Island 3 and Sunset Island 4 neighborhoods, in the form of petitions, to considerthe establishment of Special Assessment Districts to provide financing for the relocation of overhead utilities underground. On January 30, 2002, the Mayor and City Commission referred these petitions to the Finance and Citywide Projects Committee for consideration. On February 19, 2002, the Finance and Citywide Projects Committee will discuss the petitions, the process involved and project details. It is expected that a recommendation will be made to the City Commission to declare its intent to create the applicable Special Assessment Areas or Districts, for the Hibiscus Island, Palm Island, and Sunset Islands 3 and 4 neighborhoods. The Special Assessment District process can range from six months to twelve months and involves a series of public hearings, public advertisements, and first dam direct mailings to affected property owners. Advisory Bond Recommendation: On February 19, 2002, the Finance and Citywide Projects Committee will discuss the petitions, the process involved and project details. It is expected that a recommendation will be made to the City Commission to declare its intent to create the applicable Special Assessment Areas or Districts, for the Hibiscus Island, Palm Island, and Sunset Islands 3 and 4 neighborhoods. Seems of Funds: F7 Finance Dept sign -Offs: Dep Director Assistant nager City Mssreger AGENDA ITEM RJ fT DATE 2 EXHIBIT A CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 COMMISSION MEMORANDUM To: Mayor David Dermer and Date: February 20. 2002 Members of the City Commission From: Jorge M. GonzaleD U City Manager Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION AND CITY ATTORNEY'S OFFICE TO PROCEED WITH THE CREATION OF SPECIAL ASSESSMENT AREAS, ALSO KNOWN AS SPECIAL ASSESSMENT DISTRICTS, PURSUANT TO THE PROVISIONS PROVIDED IN CHAPTER 170 OF THE FLORIDA STATUTES, FOR THE PURPOSE OF FUNDING THE RELOCATION OF OVERHEAD UTILITY LINES UNDERGROUND, ON EITHER A PORTION OR ALL OF HIBISCUS ISLAND AND PALM ISLAND AND SUNSET ISLAND 3 AND SUNSET ISLAND 4, RESPECTIVELY, PURSUANT TO THE WRITTEN REQUEST OF THE PROPERTY OWNERS OF THOSE ISLANDS; AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO MAKE ALL NECESSARY PREPARATIONS TO IMPLEMENT THIS INTENT ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The Administration has received written requests from residents in the Hibiscus Island, Palm Island, Sunset Island 3 and Sunset Island 4 neighborhoods, in the form of petitions, to consider the establishment of Special Assessment Areas, also known as Districts, to provide financing for the relocation of overhead utilities underground. On January 30, 2002, the Mayor and City Commission referred these petitions to the Finance and Citywide Projects Committee for consideration. On February 19, 2002, the Finance and Citywide Projects Committee will consider the petitions, the assessment process and project history. It is expected, that a verbal recommendation will be made to the City Commission by the Finance Committee to declare its intent to create the applicable Special Assessment Areas or Districts, for the Hibiscus Island, Palm Island, and Sunset Islands 3 and 4 neighborhoods. EXHIBIT A CRY Commiss1W Memomndum February 20, 2002 Special Assessment District Page 2 Special Assessment Districts are funding mechanisms that provide for benefited property owners to make direct payment in support of associated neighborhood -specific capital improvements, such as the current requests to assist with the relocation of utility feeder systems underground. Since the costs for such relocation can exceed $1,000,000, many neighborhoods may request the City to utilize this method. Additionally the City may choose to place the collection of the Special Assessment on the individual property owners County ad valorem tax bill. However, the cost of service hook-ups from the feeder system to individual properties are additional and solely the responsibility of each property owner. Typically individual homeowners cannot be compelled to "hook-up" to the new underground system. This means that while the"feeder'systempoles and components maybe disposed of through the undergrounding effort, some poles may remain if some property owners elect to maintain above ground service hook-ups. The Special Assessment District process can range from six months to twelve months and involves a series of public hearings, public advertisements, and first class direct mailings to affected property owners. It is expected that the cost of preparing the required advertisements, first class mailings, legal documents, etc. will be bom by the Special Assessment District, unless these costs are covered by the neighborhood in advance. Given the nature of the documents and process involved, the neighborhoods are advised to hire an attorney experienced with this process to represent its interests. Each neighborhood will have unique characteristics that will need to be incorporated into official documents. If the City Commission adopts the accompanying resolution of intent, each neighborhood must, as a first step, prepare a Preliminary Assessment Roll. This will be done with the assistance of the City. This roll must be publicly advertised in accordance with FS 170.07. If the City Commission finds that the Preliminary Assessment Roll is property prepared and that a public purpose is gained by its adoption, then the Commission will adopt the roll after a public hearing. Upon adoption, each assessment district must finalize cost estimates, its assessment role, and its financial documents. After completing the public advertising requirements pursuant to FS 170.07, the City Commission must approve the Final Assessment Roll. Upon approval, the Special Assessment District is created. At this same time, the City Commission will also approve any related financial documents. It is anticipated and recommended that the City will submit the assessment documentation to the Miami -Dade Property Appraiser to add the collection of the assessment to the tax roll. This is a public process outlined in FS 197.3632. This collection mechanism is important to the financing institutions and adds security for the City. Consideration of this collection process will be coordinated with the Special Assessment District process, but it should be realized that these are two distinct and separate processes. - --- R42-e€ 3458 - EXHIBIT A City Commission Memorandum February 20, 2002 Special Assessment Disinct Page 3 Concurrent with the creation of the Special Assessment District but prior to the creation of the Final Assessment Roll, the neighborhood must also work closely with Florida Power and Light (FPL) Bell South and Charter cable to determine what the costs will be for the undergrounding effort. First, the neighborhood requests that FPL identifies all existing utilities since these are usually mounted on FPL utility poles. Once identified, each utility company must agree to relocate their lines underground. The neighborhood must then work with FPL to develop engineering design documents. FPL charges for the design effort upfront, including requiring a nonrefundable engineering deposit as set forth in Florida Administrative Code 25-6.115. Depending on the number of residences participating, this deposit can range from approximately $2,500 to $15,000. The process can take anywhere from 6 to 12 months, depending on the size and complexity of the project. The cost of design is expected to be paid by the appropriate homeowners group, who can be credited forthe expense from project financing if the project proceeds to construction. Once a design is complete the City will contract with FPL and other utilities as needed to complete construction. This construction is coordinated with any work being undertaken through the City CIP program. JMG:RM:TH:sek T:WGENDAWOZFEBXGZCONSENn &H, SUNSET 3AND A UNDERGROUNDING MEMO.DOC