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HomeMy WebLinkAboutM-87-1056NTER-CFF1C' .•IEM0RAN0UM i Honorable Mayor and Members November 10, 1987 of the City Commission City Commission Meeting November 10, 1987 Luoia :`Dou erty Agenda Items #18. e58, #58 City Attorney #67-71, #94 (2) The following information and material should be considered by you in your deliberations at today's Meeting: agenda Item #16 (J-87-998) [City's lease of space at Coconut Grove Bank] The distributed resolution incorrectly reflects the City's exercise of a two-year renewal option on 2.383 sq. ft. of space in the Coconut Grove Bank Building. The attached proposed resolution reflects t1ae City's exercise of a one-year renewal option for this space and provides for payment of $4,750 by way of reimbursement for renovations completed in 1984 at the City's request. The attached resolution and cover memorandum should be substituted in your Packet. NOTE: At the time the Consent Agenda is voted upon, if this Item (416) is not removed from the Consent Agenda and considered separately. there should be an announcement made by the Mayor that Item #16 is being voted upon "as modified". AQenda Item #56 (J-87-1022) [Citywide Demolition Substandard Buildings] There was clarifying language added in the body of this first reading ordinance to reflect the use of the increased appropriations ($242,315) to implement the City's demolition Program. Agenda Item #58 (J-87-965) (Updating of City's Code Enforcement Board Ordinance] The distributed ordinance which updates City Code provisions to conform with recent legislative changes did not eliminate the Code provision requiring that a landowner be notified of any violation occurring on the premises. Since the state law does not require such notice and since the City only notifies the owner where a lien is sought to be imposed, we have changed "shall" to "may" in the vto od 9 7-� 56 9 7-1056 Ne"gable Mayor a" -A Members November 10, 1987 �.of the City Commission Page 2 sentence appearing at the top of Page 7 of this Ordinance. Agenda Stems #67-71 (J-87-1024, J-87-1025, J-87-1026, J-87-1027, J-87-1028) [Approving in principle, UDAG Applications] Descriptive language has been added in footnote form to the body of these five resolutions to mirror the language already set forth in the titles. Agenda Item #94 (J-87-1041) [Discussion of Stormwater Management] In the event you approve the user -fee concept and wish to expedite implementation of the City's Program, we have prepared the attached resolution for substitution in your Packet. As distributed, the resolution did not allocate funding for the consultant's contract; the attached resolution allocates an amount not to exceed $50,000 from the 1984 Storm Sewer General Obligation Bond Funds, Project No. 352250 Citywide Storm Drainage Master Plan. LAD:RFC:bss:M463 cc: Cesar H. Odio, City Manager Natty Hirai, City Clerk Ron E. Williams► Director, General Services Administration Department Att: Albert Armada, Property and Lease Manager Frank Castenada. Director, Department of Community Development Edith Fuentes. Director, Department of Building and Zoning Donald W. Cather, Director, Department of Public Works R7-1056 R7-1056 r 94 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO Honorable Mayor and Members of the City Commission FROM Cesar H. Odi City Manager RECOMMENDATION: DATE: NOV 41987 FILE: SUBJECT Discussion and Resolution for a Stormwater Utility Program for the City of Miami REFERENCES: ENCLOSURES. It is respectfully recommended that review of the attached documents and members adopt a Resolution approving Utility User -Fee Program and direct with the program implementation. BACKGROUND: the City Commission upon discussion with City staff the concept of a Stormwater the City Manager to proceed The Department of Public Works recommends that the City Commission approve the concept of a citywide Stormwater Utility User -Fee Program and give direction as to its preference for the various funding scenarios presented for discussion. Earlier this year the City directed its consultant for the Storm Drainage Master Plan to prepare a feasibility study for the establishment of a Stormwater Utility Program to fund its storm drainage improvement needs estimated at $267,000,000. The study is nearing completion and several issues pertinent to the success or failure of the program are beginning to com= into focus requiring further discussion and direction by the City Commission. These issues are listed as follows: 1. SOURCE OF REVENUE It is recommended that the source of revenue for the program be in the form of user fees with costs allocated according to the amount of stormwater runoff potential from developed private property. The fee shall be based upon the hard surface (impervious) area of each parcel as a measure of the parcel's stormwater contribution. This method is a fair and equitable way to establish stormwater user fees and has been used successfully in other cities throughout Florida and the United States. 97-1056 FP 2. VARIOUS RATE STRUCTURES The base unit which has been identified for determining the stormwater utility charges is the Single Family Equivalent Unit (SFEU). It is defined as the average impervious area of all improvements on a single family parcel. In the City of Miami, the SFEU was calculated to be 2,147 square feet. Three alternative rate structures were then analyzed: 1) the Single Family Equivalent Unit Alternative; 2) the Dwelling Unit Alternative; and 3) the Graduated Residential Scale Alternative. The Single Fami ly Equivalent Unit Alternative divides customers into two classes: singe amily residences and non - single family residences. All single family residences are assessed one (1) SFEU/month. Non -single family residence assessments are determined by dividing the total impervious area of the.parcel by the area of a SFEU. A commercial property with 6,441 square feet of impervious surface would be charged 3 SFEUs per month (6,441 sq ft/2,147 sq ft/SFEU = 3 SFEU). Using this procedure, the stormwater utility is estimated to have a base of 129,721 SFEUs. The Dwelling Unit Alternative groups customers into two classes as well: residential and non-residential. All residential customers are assessed one (1) SFEU for each dwelling unit on the parcel. For example, a single family residence would be assessed one (1) SFEU per month and a quadruplex apartment complex four (4) SFEUs per month. Non- residential parcels would be assessed according to their impervious area as described in the Single Family Equivalent Unit Alternative. This procedure results in an estimated utility base of 185,237 SFEUs. ' The last alternative, the Graduated Residential Scale recognizes that not all residential property has the same impact on the stormwater management system. The average living area of residential customers of similar types -are calculated. Living area is defined as the floor area of a dwelling unit plus its share of impervious extra features. The unit charged under the Dwelling Unit Alternative is then adjusted by the ratio of the average living area of the residential class and the SFEU. The three classes identified are single family residences, mobile homes and multifamily/condominiums. The ratios are 1.0, 0.44 and 0.62, respectively. The same quadruplex mentioned above would be assessed 2.5 SFEUs (4 dwelling units x 1 SFEU/Dwelling Unit x 0.62 - 2.5 SFEUs ). Non-residential parcels would again be assessed according to their impervious area. The estimated revenue base for the utility using the procedure is 151,078 SFEUs. The following table summarizes the revenue base of each of three alternatives presented. - 2 - R1 97-105►6 il� . i illllllll COMPARISON OF REVENUE BASE THREE UTILITY ASSESSMENT ALTERNATIVES ' CITY OF MIAMI LAND USE NUMBER TOTAL CATEGORY OF PARCELS IMPER. AREA SFEU Single Family 36,768 78,922,842 36,768 Mobile Home 9 735,462 343 Multifamily/Condo 34,926 68,948,213 32,122 Commercial 5,621 84,208,114 39,230 Indi:strial 1,456 21,708,882 10,114 Institutional 704 10,8512693 5,056 City 198 7,304,310 3,403 County 213 4,561,420 2,125 Other Gov 20 1,2002807 559 Developed Vacant 6 5,142 2 Total 79,921 2780446,885 129,721 W DWELLING GRADUATED G.R.S. UNIT RES. SCALE RATT" 36,768 36,768 1.00 772 343 0.44 87,208 53,478 0.62 39,230 392230 1.00 10,114 10,114 1.00 5,056 5,056 1.00 3,403 3,403 1.00 2,125 2,125 1.00 559 559 1.00 2 2 1.00 185,237 151,078 3. POTENTIAL REVENUE SCENARIOS To illustrate the economic potential of a stormwater utility program, three scenarios have been presented. The results of these analyses are presented in the following table. As can be seen, the Dwelling Unit Scenario results in the lowest monthly fee to the utility customer. In this case, a $4,000,000 per year debt payment could be used to fund a four year, $29,000,000 capital improvement program. Since bonding institutions require a track record of at least two years, the City's current capital improvement program which is funded through a general obligation bond would be ending at about the same time the stormwater utility could be el i gi bl e to sell its own bonds. It is important to note that the current bond program would continue to be funded by ad valorem taxes and not the stormwater utility. 4. COORDINATION WITH MI AIII -LADE WATER AND SEWER AUTHORITY It is recommended that utility fees be collected by the Miami -Dade Water and Sewer Authority Department and reimbursed to the City Treasury Division. The fee amount would appear as a line item on the water and sewer bill and would be included in the total cost of the bill. The Authority has completed a study of its cost to provide this service tentatively estimated at $1.59 per bill per quarterly invoice. City staff, however, has not had an opportunity to review the facts supporting this charge for billing. Nonetheless, with approximately 314,000 bills sent annually, the total estimated cost for billing and administration by the Authority would be $500,000. 5. IMPLEMENTATION The installation of the stormwater utility into the existing utility system involves a rumber of tasks. The most time consuming is the matching of utility accounts with each parcel so that the proper number of SFEUs can be assigned to each account. The initial estimate is that there will be in the neighborhood of 79,900 utility bills which need to be distributed (i.e., one bill for each parcel). The final task is the actual modification of'the computerized billing system to include the stormwater utility bill. The total cost of the implementation phase is estimated at $50,000 for consulting services plus additional charges in services to be shared between City and Authority staff for integration of the stormwater utility into the Miami -Dade Water and Sewer Authority billing system. The Department of Public Works recommends adoption of the attached Resolution approving the concept of a Stormwater Utility User -Fee Program and directing the City Manager to proceed with the program implementation. - 3 - Ll R7-105b UTILITY EXPENSES Operation/Naint. Administration Capital Imp. REVENUES Utility Fees Ad Valorem Taxes SURPLUS REVENUE N REVENUE PROJECTIONS EXPANDED CAPITAL IMPROVEMENTS SCENARIO 1 SINGLE FAMILY UNIT (3.00/gPEU%Mo..) $1,500,000 $ 500,000 $4,000,000 $4,669.950 $1,500,000 $ 169,950 SCENARIO 2 DWELLING UNIT ($2.11 SF U Mo.) $1,500,000 $ 500,000 $4,000,000 $4,690,200 $1,500,000 $ 190,200 SCENARIO 3 GRADUATED RESIDENTIAL SCALE 2.5 S E No. $1,500,000 $ 500,000 $4,000,000 $4,695,500 $1,500,000 $ 195,500 l