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HomeMy WebLinkAboutResolution 2025-33967RESOLUTION NO. 202533967 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ENDORSING THE CREATION BY MIAMI-DADE COUNTY OF A SPECIAL TAXING DISTRICT FOR THE WEST SIDE OF PALM ISLAND FOR THE UNDERGROUNDING OF OVERHEAD FRANCHISE UTILITIES (AT&T AND BREEZELINE), SUBJECT TO AND CONTINGENT UPON COMPLIANCE WITH AND SATISFACTION OF THE REQUIREMENTS FOR THE CREATION OF SPECIAL TAXING DISTRICTS, AS SET FORTH IN CHAPTER 18 OF THE MIAMI-DADE COUNTY CODE. WHEREAS, in early 2025, the Palm -Hibiscus Islands Homeowners Association ("HOA") approached Miami -Dade County ("County") to request the creation of a special taxing district to fund the undergrounding of overhead franchise utilities (AT&T and Breezeline) on the west side of Palm Island (the "Project") (altogether, the "District'); and WHEREAS, Florida Power & Light ("FPL") is expected to provide underground residential electrical service on the west side of Palm Island at no cost to homeowners within the next few years under its Storm Secure Underground Program ("SSUP"); accordingly, the District will not be used to fund the underground conversion of overhead electric utilities; and WHEREAS, the Bond Administration Division of the County Finance Department has advised the City that the Project capital is not sufficient to be covered by bonds secured by the County, and recommended that a project of this size would instead benefit from a different financing mechanism such as a construction loan from a bank to the City or other financing to be secured by the City and repaid by affected property owners through special assessments: and WHEREAS, the proposed District will be created by the County, while the City will be responsible for advancing the funding, collecting the special assessments, and overseeing the completion of the Project; and WHEREAS, Section 18-2 of the Miami -Dade County Code provides, in pertinent part, that no special taxing district created pursuant to Chapter 18 "shall be comprised solely of a municipality or embrace all or part of a municipality without the approval of the governing body of such municipality"; and WHEREAS, the prior approval of the Mayor and City Commission is required before the County will formally consider the creation of the District; and WHEREAS, the HOA has requested that the City provide the requisite approval by adopting this Resolution; and WHEREAS, upon the Countys successful creation of the District, the City and the County would need to enter into an interlocal agreement providing for the County to transfer control of the District to the City, and requiring the City to secure financing for upfront costs and manage the construction of the Project; and WHEREAS, in addition to the proposed Resolution, the County Code requires that either the County Mayor or 50 percent of the property owners within the proposed District sign a petition requesting the establishment of the special taxing district; and WHEREAS, upon receipt of such petition, the County Clerk shall transmit a copy to the County Mayor, who shall examine the petition and file a written report with the Clerk; and WHEREAS, if the County Mayor finds that the petition meets the requirements of Chapter 18, the County Mayor shall conduct a cost and feasibility study and prepare a report that meets the specific requirements set forth in Section 18-3(c) of the County Code; and WHEREAS, once the report is finalized, the County Clerk shall set a public hearing for the Board of County Commissioners to hear testimony, consider any objections, and determine whether to grant the petition to create the District; and WHEREAS, following the public hearing, if the Board of County Commissioners decides to grant the petition, it shall adopt an ordinance establishing the District; and WHEREAS, the City will finance the upfront costs associated with the Project and levy and collect the special assessments; and WHEREAS, it is anticipated that the City will manage the construction of these improvements; and WHEREAS, the total cost of the Project will be based on binding cost estimates from the franchise utilities, County fees associated with the District and the Project, the City's financing costs and administrative fees, as well as construction administration 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 endorse, as required pursuant to section 18-2 of the Miami -Dade County Code, the creation by Miami -Dade County of a Special Taxing District for the west side of Palm Island for the undergrounding of overhead franchise utilities (AT&T and Breezeline), subject to and contingent upon compliance with and satisfaction of the requirements for the creation of Special Taxing Districts, as set forth in Chapter 18 of the Miami -Dade County Code. PASSED and ADOPTED this /7 day of OeKA'+Aer , 2025. <�s N -Steven Meiner, Mayor ATTEST DEC 2 Z 2025 Rafael E. Granado, City Clerk APPROVED AS TO FORM AND LANGUAGE & FOR EXECUTION �2P2S City Qk Date Resolutions - C7 D 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, ENDORSING THE CREATION BY MIAMI-DADE COUNTY OF A SPECIAL TAXING DISTRICT FOR PALM ISLAND (WEST) FOR THE UNDERGROUNDING OF OVERHEAD FRANCHISE UTILITIES (AT&T AND BREEZELINE), SUBJECT TO AND CONTINGENT UPON COMPLIANCE WITH AND SATISFACTION OF THE REQUIREMENTS FOR THE CREATION OF SPECIAL TAXING DISTRICTS, AS SET FORTH IN CHAPTER 18 OF THE MIAMI- DADE COUNTY CODE. RECOMMENDATION The Administration recommends that the Mayor and City Commission (City Commission) adopt the Resolution. On May 13, 2009, the City Commission adopted Resolution No. 2009-27065, approving the creation of special taxing districts for Palm and Hibiscus Islands. The Resolution required further action by the property owners in order to finalize the special taxing district, including the requirement that 50%of the property owners within the proposed district sign a petition requesting the creation of the special taxing district. This requirement was unsuccessful for the west half of Palm Island and the special taxing district for undergrounding utilities in that area was never created. On November 9, 2016, the City Commission adopted Resolution No. 2016-29643, approving the creation of special taxing districts for Palm Island. The Resolution again required further action by the property owners in order to finalize the special taxing district, including the requirement that 50% of the property owners within the proposed district sign a petition requesting the creation of the special taxing district. Again, this requirement was unsuccessful for the west half of Palm Island and the special taxing district for the undergrounding of utilities in that area was never created. In early 2025, the Palm -Hibiscus Islands Homeowners Association (HOA) approached Miami - Dade County (County) for the creation of a special taxing district for the funding necessary to underground overhead franchise utilities (AT&T and Breezeline) on the west side of Palm Island (the 'District"). Overhead utility lines on the east side of Palm Island have already been undergrounded. In contrast to the previous occasions, FPL is being excluded from the undergrounding since they are expected to provide underground residential electrical service at no cost to homeowners within the next couple of years under their Storm Secure Underground Program (SSUP). On June 27, 2025, the County confirmed that the Bond Administration of the County Finance Department stated that the required funding was not sufficient to be covered by bonds secured by Miami -Dade County. They recommended that a project of this size would benefit from a 853 of 3458 financing mechanism where the City would get a construction loan from a bank or provide internal financing. ANALYSIS As the County will not fund the improvements, the County would establish the special taxing district, while the City of Miami Beach would be responsible for advancing the funding and collecting the assessments. Additionally, the City would oversee the successful completion of the undergrounding project. Section 18-2 of the Miami -Dade County Code provides that no special taxing district created pursuant to Chapter 18 "shall be comprised solely of a municipality or embrace all or part of a municipality without the approval of the governing body of such municipality." As such, the prior approval of the City Commission is required before the County may create the requested special taxing district. In addition to the Resolution, pursuant to Chapter 18 of the County Code, the Miami -Dade County Code requires that either the County Mayor or 50 percent of the property owners within the proposed District sign a petition requesting the establishment of the special taxing district. Upon receipt of such petition, the County Clerk shall transmit a copy to the County Mayor, who shall examine the petition and file a written report with the Clerk. If the County Mayor finds that the petition meets the requirements of Chapter 18, the County Mayor shall conduct a cost and feasibility study and prepare a report that meets the specific requirements set forth in Section 18- 3(c) of the County Code. Once the report is finalized, the County Clerk shall set a public hearing for the Board of County Commissioners to hear testimony, consider any objections, and determine whether to grant the petition to create the districts. Following the public hearing, if the Miami -Dade County Board of County Commissioners decides to grant the petition, it shall adopt an ordinance establishing the District. Upon the County's successful establishment of the District, the City and Miami Dade County will need to enter into an interlocal agreement. Under this agreement, the City will finance the improvements, manage construction, and levy and collect the special assessments from the. residents in the District. The total cost of the project will include the cost of the work as detailed in the franchise utilities binding estimates, Miami -Dade County fees, the City's financing and administrative fees and construction administration costs. FISCAL IMPACT STATEMENT The City of Miami Beach will fund the Project costs of the project and levy and collect the special assessments from the residents in the District. The total cost of the Project will include the cost of the work as detailed in the franchise utilities binding estimates, Miami -Dade County fees, the City's financing and administrative fees and construction administration costs. Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: hftps://www.miamibeachfl.nov/city-halllcityclerkimeeting•notices/ FINANCIAL INFORMATION 854 of 3458 CONCLUSION The Administration recommends that the City Commission adopt the Resolution. Applicable Area South Beach Is this a 'Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-177 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 lobbyina? No If so, specify the name of lobbyist(s) and principal(s): Department Capital Improvement Projects Sponsor(s) Co-sponsors) Condensed Title Special Taxing District, Palm Island Undergrounding of Utilities (AT&T/Breezeline). CIP Previous Action (For City Clerk Use Onlyl 855 of 3458