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RESOLUTION 110. 83-6851
A RESOLUTION STRONGLY OPPOSING THE
STATED INTFNT OF THE BOARD OF THE
METROPOLITAN DADE COUNTY COV14ISSIOIIERS
TO ABOLISH THE MIAMI-DADS 1%ATER AND
SEWER AUTHORITY ATID CREATING A WATER
AND ' T.WER DEPARTMENT OF DADS: COUNTY;
AND AUTHORIZING AND DIRECTING THE
CITY MANAGER AND THE CITY ATTORNEY
TO TAKE WHATEVER ACTION MAY BE NECESSARY
IN PROTECTING TFE INTERESTS OF THE CITY
OF MIAMI I"ICLUDING, BUT NOT LIMITED TO,
LHE FILING OF A LAWSUIT, IF NECESSARY
PRIOR TO THE I -TEXT MrETIIIG OF THE CITY
COMMISSION, TO PREVENT ANY ACTION THAT MAY
BE .ADVERSE TO THE CITY OF RESULTING
FROM THE ABOLISHING OF THE MIAMI-DADE
WATER AND SEWER AUTHORITY.
WHEREAS, the Board of Dade County Commissioners has passed
an ordinance abolishing the Miami -Dade 4'ater & Sewer Authority
on first reading; and
WHEREAS, the Board of Dade County Commissioners will ap-
parently vote on said ordinance for final adoption on Tuesday,
September 6, 1983; and
W`HERrAS, the Board of Dade County Commissioners at its
July 21, 1983, meeting attempted to remove every appointed member
of the Miami-Dad.e Water & Seder Authority from office for hiring
a special counsel to determine the Authority's legal position; and
WHEREAS, at 9.00 a.m. on July 28, 1983, the Board of Dade
County Commissioners met in special session and again discussed
the removal of the Water & Sewer Authority members from office; and
WHEREAS, the City of Miami contributed property and assets
amounting to a value in excess of one-half billion dollars to
create the Miami -Dade [rater & Sewer Authority; and
WHEREAS, in a tripartite agreement in 1975 with Dade County
and the Miami -Dade Water & Sewer Authority, the City of Miami
agreed to the establishment of an independent, autonomous Miami -
Dade 1•.Tater & Sewer Authority; and
WHEREAS, said agreement provides for approximately 2,200
acres of contributed property to revert to the City of Miami
under certain circumstances in the event the Water & Sewer Authority
is abolished; and
CITY C014MISSION
MEETING OF
JUL 28 1983
RESOLUTIUN No.
REMARK~
4 q
1JHEREAS, that property has substantially appreciated in
value; and
WHEREAS, said agreement provided for the City of Miami
sewer customers to receive a reduced sewer rate in consideration
of City taxpayers' continuing to repav a sixteen million dollar
($16,000,000) Virginia l:ey sewage disposal plant City bond issue;
and
WHEREAS, the abrogation of the 1975 tripartite agreement by
Dade County could increase the sewer bills of City of Miami
customers by almost ten percent (10%) without relieving the
Miami taxpayers from the repayment of the secaer plant general
obligation bonds; and
[WHEREAS, City of Miami and Dade County water and sever
customers enjoy low water rates because of the efficient opera-
tion of the present autonomous Water & Sewer Authority; and
WHEREAS, the voters of Dade County approved a 1972 amend-
ment to the Dade County charter creating the Miami -Dade Water
& Sewer Authority; and
WHEREAS, the City of Miami wishes to protect the interests
of the citizens of Miami under the terms and conditions of the
1975 tripartite agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE. COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The City Commission hereby strongly opposes the
proposed abolishment of the Miami -Dade Water & Sewer Authority
and strongly opposes the creation of a Metropolitan Dade County
?dater & Sewer Department for the purpose of replacing the Miami -
Dade Water & Sewer Authority and hereby finds that legal actions
may be necessary to protect the City of Miami's contributed
assets and other interests in the Miami -Dade Water & Sewer Authority.
Section 2. The City Manager and the City Attorney are hereby
authorized and directed to take necessary actions to protect the
interests of the City of Miami including, but not limited to, the
filing of a lawsuit, if necessary prior to the next meeting of the
City Commission, to assure continuation of the present Water &
Sewer Authority until such time as Metropolitan Dade County makes
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clear its intentions and seeks advice and approval of the City
of Miami City Commission prior to taking any actions that would
tend to impair the obligations of the contract entered into by
Metropolitan Dade Countv, the City of Miami, and the Miami -Dade
Water & Sewer Authority as principal participants and executors
of said contract.
PASSED AND ADOPTED this 28th day of July , 1983.
Maurice A. Ferre
MAURICE A. FERRE, MAYOR
ATTEST:
�LPHj(/G.
ONGIE, CITY CLEW__
PREPARED AND APPROVED BY:
RO ERT F. CLARK, DEPUTY CITY ATTORNEY
APPROVED AS TO FORM A21D CORRECTNESS:
17.
GARCIA-PEDROSA, CITY
3 -
CITY OF MIAM . FLORIDA
INTEROFFICE MEMORANDUM
Howard V. Gary
City Manager
C'lark Me` rill
Assistant to the City Manager for
Intergovernmental Affairs/Cable
VA
July 26, 1983
Dade County Ordinance to
Abolish the Miami -Dade
Water & Sewer Authority
Resolution
"It is recommended that the attached Resolution
strongly opposing the stated intent of the
Board of Metropolitan Dade County Commissioners
to abolish the Miami -Dade Water & Sewer
Authority, and authorizing and directing the
City Manager and the City Attorney to take the
necessary actions to protect the interests of
the City of Miami including filing of a lawsuit,
if necessary, be presented to the City Commission
for their approval".
On July 19, 1983, the Board of Metropolitan Dade County Commissioners
passed the attached ordinance on first reading, abolishing the Miami -
Dade Water & Sewer Authority. On July 21, 1983, the County Commission
attempted to remove every appointed member of the Dade Water & Sewer
Authority from office because they had hired a special counsel to give
an opinion on the legal position of the Authority relating to the
County's attempt to abolish the Miami -Dade Water & Sewer Authority. At
9:00 a.m. on Thursday, July 28, 1983, the Dade County Commission will
meet in special session to again attempt to remove the Water & Sewer
Authority members from office. -
It is very clear that the Board of Metropolitan Dade County Commissioners
intends to abolish the Miami -Dade Water & Sewer Authority. This action
triggers certain legal positions of the 1975 tripartite agreement agreed
to by the City of Miami, Metropolitan Dade County and the Miami -Dade
Water & Sewer Authority. Specifically, approximately 2,200 acres of
property previously donated to the Water & Sewer Authority under the
tripartite agreement will automatically revert to the City of Miami upon
the abolishment of the Miami -Dade Water & Sewer Authority. This land
is valued in the millions of dollars and includes approximately 10 acres
of land in Coconut Grove where the main business officesof the Miami -
Dade Water & Sewer Authority are now located.
In 1975 the City of Miami in good faith entered into the tripartite
agreement whereby the City of Miami contributed almost one-half billion
in assets in order to establish a county -wide autonomous water and sewer
authority. That agreement also provided for the sewer customers of
the City of Miami to receive a lower sewer rate in consideration of
the Miami taxpayers continuing to repay the 1953 $16 million City of
Miami sewage disposal bonds of which approximately $4.5 million in
principal and interest is still outstanding. It is uncertain at this
83-683►
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City Manager
July 26, 1983
time whether the actions of the Dade County Commission will cause
Miami sewer customers rates to increase by 10% if the contractual
relationship that was entered into in 1975 ceases to exist. It is
clear, however, that the Miami taxpayers will continue to be obli-
gated to pay the sewage disposal bonds of approximately $4.5 million
outstanding.
Also of great concern is the payment of a City claim for approximately
$1.4 million for sewer maintenance costs paid by the City but which
are the obligation of the Miami -Dade Water & Sewer Authority under the
tripartite agreement.
When the City of Miami entered into the tripartite agreement, it agreed
to a provision that now prohibits any payments into the City or the
County's General Fund, thereby making the Water & Sewer Authority a
truly non-profit institution. Recently, Dade County has been attempting
although unsuccessfully, to extract funds from the Water & Sewer
Authority to which it is not entitled. As a County department such
payments into the County fund may be impossible to prevent. Dade
County is seeking additional funds to cover rather large county budget
deficits. If revenues from the Miami -Dade Water & Sewer Authority
are transferred to the Dade County General Fund, it would require con-
tributions from the City of Miami's water and sewer customers and
very possibly result in the increase of water and sewer rates county-
wide. Miami sacrificed that funding resource in order to establish
and autonomous water and sewer authority. It would be ironic to find
that Miami's sacrifice amounted to Dade County's revenue resource at
the expense of the water and sewer customers.
There are other issues where the City of Miami seeks the cooperation
of the Miami -Dade Water & Sewer Authority in the continuing development
of the City of Miami's sewer system and the resolution of problems
that were created by the operation of the sewer plant on Virginia Key.
Miami -Dade Water & Sewer Authority is operating efficiently and
effectively and within the law. The water and sewer rates within the
City of Miami are low compared to other urban centers both in the State
of Florida and the country. Any changes to the present structure of
the Miami -Dade Water & Sewer Authority could very well signal an in-
crease in water and sewer rates and a possible reduction in the
quality of services. The creation of a Metropolitan Dade County Water
& Sewer Department offers no additional benefits to this community.
This is a very serious issue that needs to be addressed by the City
Commission prior to the time that Dade County takesaction that is
adverse to the citizens of the City of Miami.
CM/mmm
83-68S4
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1.
2.
3.
MIAMI-DADE WATER & SEWER AUTHORITY
METRO COMMISSION ABOLISHMENT
FACT SHEET SUMMARY
Creation of Water & Sewer Authority approved by voters October 3,
1972.
For: 55,454 76.39%
Against: 17,132 23.61%
Dade County created Miami -Dade Water & Sewer Authority by
Ordinance 72-94.
1975 Tripartite Agreement
a) City contributes approximately $� billion in land and assets.
b) 2,200 acres of City land reverts if Authority is abolished.
c) Miami sewer customers get reduced rates.
d) Miami taxpayers pay sewage disposal bonds ($16,000,000-
$4,500,000 outstanding debt service obligation) through
1990.
e) Miami is required to deed water & sewer property to the authority.
f) Water & Sewer Authority agrees to collect Miami's 10% Public
Service Tax (approximately $850,000 per year).
g) The Authority agrees to abide by Miami's ordinances applying
to the installation of water and sewer facilities inside the
City.
h) The Authority agrees to maintain Miami Storm Sewer Pump Stations
under a separate agreement.
i) The Authority agrees to operate the Virginia Key Sewage Disposal
Plant so that Miami would have reasonable use of adjacent
property which agreement shall run in favor of the City.
j) The Authority only agreed to be governed by the personnel
rules, procedures, pay plan and other Dade County policies
relating to employees.
k) Dade County provides special and general obligation bonds
amounting to $82,500,000 plus State and Federal grants,
assessments and customer contributions to the Authority.
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1) Miami agrees within 5 years to forego payments required and/or
provided by Water Revenue Bond issue of 1940.
m) Authority agrees that property contributed by the City shall
automatically revert to the City when determined to be surplus.
n) Miami retains fee title to the Miami Springs Golf Course.
o) Miami agrees to turn over to the Authority its sanitary sewer
collection system.
p) The Authority agrees to pay all expenditures required to
maintain Miami's sanitary sewer collection system.
q) The Authority is required to use all water and sewer revenues
exclusively for rendering water and sewer services to the
public and for no other purpose.
r) The Dade County Finance Director is not required to keep any
records relating to budgets, funds and accounts of the
Authority.
s) The City agreed to sell 60 acres on Virginia Key to the
Authority for $5,300,000 for expansion of the sewage treatment
plant.
t) The Authority expressed its intent to act in the City's
interest towards providing water and sewer service to meet
the City's requirements.
u) The Authority covenants to do all things necessary to preserve
and keep in full force and effect, its existence and rights and
properties.
4. July 5, 1983, Dade County passes on second reading, an ordinance to
require the Water & Sewer Authority to use the County Attorney
for all legal purposes - becomes effective October 1, 1983.
5. July 19, 1983, Dade County Commission passes on first reading, an
ordinance abolishing the Water & Sewer Authority.
6. July 21, 1983, Dade County Commission attempts to remove all
members of the Water & Sewer Authority for hiring a special
counsel to make a legal opinion on the Authority's legal status.
Requires at least 7 votes to approve. Motion to review in 6 days.
7. July 28, 1983, 9:00 a.m. - Dade County Commission to meet in
special session to discuss and vote on removal of all Water &
Sewer Authority members.
8. September 6, 1983, Dade County Commission meets to pass on second
and final reading, an ordinance to abolish the Miami -Dade Water & Sewer
Authority.
83--685,
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M6MORAMDYM
Agenda Item No. 4 (b)
we Hon. Mayor and Members a&" July 19, 1903
Board of County Commissioners.....,
Ordinance relating to the Miami -Dade
Water and Sewer Authority
woo. Robert A. Ginsburg
County Attorney
The attached ordinance relating to the Miami -Dade Water
and Sewer Authority was prepared and placed on the agenda at
the request of the Internal Support Services Committee.
Robert Ginsburg
7' County ttorney
RAG/MAG/rk
Attachment
FOR:
Beverly Phillips
Clara Oesterle
James Redford
Ruth Shack
Barry Schreiber
Jorges Valdez
AGAINST:
None
83-685-
Agenda Item No. 4 (b)
7,- 19r'83
ORDINANCE NO.
ORDINANCE REPEALING ARTICLE i, CHAPTER 32A OF
THE CODE OF METROPOLITAN DADE COUNTY RELATING
TO THE MIAMI-DADE WATER AND SEWER AUTHORITY;
ENACTING ARTICLE XXXVII AND ARTICLE XXXVIII OF
CHAPTER 2 OF THE CODE OF METROPOLITAN DADE
COUNTY ESTABLISHING A COUNTY DEPARTMENT TO BE
KNOWN AS THE MIAMI-DADE WATER AND SEWER AUTHORITY
DEPARTMENT; ESTABLISHING A WATER AND SEWER
ADVISORY BOARD: PROVIDING DUTIES, FUNCTIONS,
AND POWERS; PROVIDING FOR IMPOSITION OF
MORATORIUM ON EXECUTION OF WATER SUPPLY
CONTRACTS: PROVIDING SEVERABILITY, INCLUSION
IN CODE AND EFFECTIVE DATE
WHEREAS, the electorate of Dade County enacted Section 4.08 (B)
of the Charter of Metropolitan Dade Cc.-inty which authorized the
Board of County Commissioners ..o_ by ordinance for an
agency, county -wide in scope, witn the authority and power to
acquire, construct and operate a water and sewer system within
the incorporated and unincorporated areas of Dade County; and
WHEREAS, the Board of County Commissioners, pursuant to
the authorization of the electorate, has from time to time
enacted and amended various ordinances relating to the Miami -Dade
Water and Sewer Authority to effectuate the operation of a
county -wide water and sewer system; and
WHL'REAS, in 1975 the City of Miami, the County and the
Miami -Dade Water and Sewer Authority entered into a tripartite
agreement relating to the operation of a county -wide water and
sewer system; and
WHEREAS, said agreement contemplated the possibility that
with the passage of time the Authority would be restructured
by County ordinance to better implement and effectuate the
purposes of Section 4.08(B) of the Charter and provide the
residents of Dade County with the efficient delivery of water
and sewer services; and
WHEREAS, subsequent to the enactment of that agreement the
Authority has substantially completed the acquisition and merger
of all private water and sewer companies within Dade County into
a county -wide water and sewer system; and
s3-s85.
Agenda Item No. 4 (b)
Paae No. 2
WHEREAS, this Board finds and determi.nes that the best way
to improve the operation of the county -wide water and sewer system
and provide the best water and sewer service to the residents of
Dade County is to restructure the countywide water and sewer
system.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF DADE COUNTY, FLORIDA:
Section 1. The foregoing recitations are hereby
incorporated herein as a portion of this ordinance.
Section 2. Article I, Chapter 32A of the Code of
Metropolitan Dade County is hereby repealed in its entirety.
Section 3. Article XXXVII of Chapter 2 of the Code of
Metropolitan Dade County is hereby enacted as follows:
ARTICLE XXXVII. MIAMI-DADE WATER AND SEWER
AUTHORITY DEPARTMENT AND
ADVISORY BOARD.
Sec. 2-340. Declaration of legislative intent.
The board of county commissioners hereby declares
it to be the policy of Metropolitan Dade County to
establish, own and operate a county -wide sanitary
sewage collection and disposal system and water
supply, treatment and distribution system. The board
finds that in order to best administer a county -wide
water and sewer service within the incorporated and
unincorporated areas of Dade County with the ability
effectively to provide for water and sewer services
in conjunction with the growth and expansion needs of
Dade County, it is necessary that the administration
and policies of said agency be closely coordinated
with the overall county plans and programs for growth
and development. It is the further intent of this
board that the most effective method of implementing
the foregoing policies and considerations is by creating
a county -wide water and sewer department to be administered
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Page No. 3
under policy determinations of the board of
county commissioners and the supervision of the
county manager through a director of the water and
sewer department acting with the advice and assistance
of a water and sewer advisc•ry board.
Sec. 2-341. Establishing department; director;
organization and employees.
There is hereby created and established a county
department to be known as the Miami -Dade Water and
Sewer Authority Department (hereinafter called
"department"). The department shall be an agency
county -wide in scope and authority, with the power to
acquire, construct and operate water and sewer systems
within the incorporated and the unincorporated areas
of Dade County and shall have the responsibility to
develop and operate a county -wide water and sewer
system for the purpose of providing potable water,
sewage collection and disposal and water pollution
abatement to the citizens of Dade County. The director
of the department shall be appointed by the county
manager subject to the approval of the board of county
commissioners and shall serve at the will of the
county manager. The organization and operating
procedures of the department shall be prescribed
by administrative orders and regulations of the
manager. The manager shall appoint such employees
as may be necessary to operate the department. The
salaries and compensation of all personnel shall be
determined by the county commission upon recommendation
of the manager.
Sec. 2-342. Water and sewer advisory board.
There is hereby created and established in Dade
County, an advisory board to be known as the
Metropolitan Dade County Water and Sewer Advisory
Board.
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83-6851
Agenda Item No. 4 (b)
Page No. 4
Sec. 2-343. Membership.
The water and sewer advisory board shall consist of
nine (9) members, each of whom shall be an individual
of outstanding reputation, integrity, responsibility
and business ability; provided, however, that no person
who is an officer or employee of any water or sewer
system or company operating within Dade County, shall
be eligible for membership. The members of said board
shall be appointed and serve in accordance with the
provisions of Sections 2-11.38, 2-11.38.1, 2-11.38.2,
and 2-11.39 inclusive of the Code of Metropolitan Dade
County.
Sec. 2-344. Duties and functions.
The water and sewer advisory board shall have the
following duties, functions and responsiblities:
a) To serve in an advisory capacity to the county
commission and the department with respect to
matters relating to long-range planning of a
county -wide water and sewer system.
b) To make a continuing study of the county's
needs for water and sewer services.
c) To formulate plans and programs for the
implementation of necessary activities to
effectuate its recommendations.
d) To devise methods by which the existing
water and sewer service may be improved to
more fully provide service to the general public.
e) To perform and carry out such duties and functions
of an advisory nature as may be assigned by the
board of county commissioners.
s
Agenda Item No.4 (b)
Page No. 5
Sec. 2-345. Transfer of obligations.
Immediately upon the effective date of this ordinance,
Dade County, by and through its board of county
commissioners, shall serve as the legally and validly
organized successor to the Miami -Dade Water and Sewer
Authority and shall assume all of the rights, obligations,
properties, and duties of the Miami -Dade Water and Sewer
Authority.
Section 4. The provisions of Article II, Chapter 32A of
the Code of Metropolitan Dade County (SS32A-21 through 32A-32
inclusive) shall be transferred for purposes of codification and
shall be renumbered as follows:
ARTICLE XXXVIII. IMPOSITION OF MORATORIUM
ON EXECUTION OF WATER SUPPLY
CONTRACTS.
Current Section No. New Section No.
32A-21 2-350
32A-22 2-351
32A-23 2-352
32A-24 2-353
32A-25 2-354
32A-26 2-355
32A-27 2-356
32A-28 2-357
32A-29 2-358
32A-30 2-359
32A-31 2-360
32A-32 2-361
Section 5. If any section, subsection, sentence, clause
or provision of this ordinance is held invalid, the remainder of
this ordinance shall not be affected thereby.
G
83-68-91
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Agenda Item No. 4 (b)
Page No. 6
Section 6. It is the intention of the Board of County
Commissioners, and it is hereby ordained that the provisions of
this ordinance shall become and be made a part of the Code of
Metropolitan Dade County, Florida; and that the sections of this
ordinance may be renumbered or relettered to accomplish such
intention, and the word "ordinance" may be changed to "section",
"article", or other appropriate word.
Section 7. The provisions of this ordinance shall become
effective October 1, 1983.
PASSED AND ADOPTED:
Approved by County Attorney as to
form and legal sufficiency. R (
Prepared by: t�%%
83-685+