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