| | | | | | | |  | Resolutions - C7 C
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Alina T. Hudak, City Manager | | | DATE: | June 22, 2022 | | | |
| | SUBJECT: | A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING RESOLUTION NO. 2019-30910, WHICH AUTHORIZED THE CITY MANAGER TO USE GENERAL FUND CONTINGENCY, IN THE TOTAL NOT TO EXCEED AMOUNT OF $100,000 PER YEAR (CITY FUNDING), TO ADVANCE FUNDING FOR NEIGHBORHOODS AND/OR NEIGHBORHOOD ASSOCIATIONS REQUESTING BINDING COST ESTIMATES FROM FLORIDA POWER & LIGHT (FPL) FOR THE COST OF UNDERGROUNDING UTILITIES (SUBJECT TO REIMBURSEMENT FROM SPECIAL ASSESSMENT PROCEEDS IF A SPECIAL ASSESSMENT DISTRICT IS SUBSEQUENTLY CREATED); SAID AMENDMENT CLARIFYING (1) THAT THE CITY FUNDING MAY BE USED IN CONNECTION WITH A NEIGHBORHOOD'S REQUEST FOR A COST ESTIMATE RELATING TO THE UNDERGROUNDING OF ANY PUBLIC UTILITY, NOT JUST FPL, AND (2) THAT THE CITY FUNDING MAY BE USED, AT THE CITY'S DISCRETION, TO RETAIN COST ESTIMATES FROM A THIRD PARTY CONSULTANT, INSTEAD OF FPL OR OTHER PUBLIC UTILITY PROVIDER, IN ORDER TO INCLUDE OTHER UNDERGROUNDING COSTS, NOT TYPICALLY COVERED BY THE PUBLIC UTILITY PROVIDERS, SUCH AS, WITHOUT LIMITATION, THE COST ASSOCIATED WITH THE RESTORATION OF THE PUBLIC RIGHT-OF-WAY FOLLOWING COMPLETION OF THE UNDERGROUNDING WORK BY THE PUBLIC UTILITY PROVIDER. |
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| | | | | | | | RECOMMENDATION
| | The Administration recommends approving the Resolution. |
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| | | | | | | | BACKGROUND/HISTORY
| At its January 28, 2019 meeting, the Neighborhoods/Community Affairs Committee (NCAC) reviewed and discussed the results of a tabulation from petition mailings in the North Bay Road and Alton Road neighborhood, which resulted in 60.74% final votes in favor of creating a taxing district. Based on these results, the Committee made a motion to proceed with the next steps for creating a district and obtaining the binding estimates for the undergrounding of the existing overhead utilities.
In order for FPL to proceed with a detailed and "binding" estimate for a conversion project, FPL requires a non-refundable engineering deposit of approximately $12,000 prior to beginning the estimating process, as set forth in the Florida Administrative Code 25-6.115. Should a neighborhood decide to proceed with the work contained in the estimate, the amount of the deposit is then applied towards the estimate amount owed to FPL for the conversion. The "binding" estimate is valid for 180 days from the date the "binding" estimate is provided.
Historically, the neighborhoods requesting the undergrounding conversion have been responsible for paying these and all fees associated with the undergrounding.
At its June 28 2019 meeting, the Finance and Citywide Projects Committee (FCWPC) members made a favorable motion to fund initial utility undergrounding fees from General Fund Contingencies and to grant the City Manager authority to approve funding up to $100,000 per year.
At its July 17, 2019 meeting, the City Commission adopted Resolution 2019-30910, accepting the recommendation of the FCWPC, and authorizing the City Manager to use General Fund Contingency, in the total amount not to exceed $100,000 per year (City funding), to advance funding for neighborhoods and/or neighborhood associations requesting binding cost estimate from Florida Power & Light (FPL) for the cost of undergrounding utilities; provided, however, that such City funding shall be subject to reimbursement from special assessment proceeds, if a special assessment district for utility undergrounding is subsequently created for the neighborhood.
To date, the City has not received any requests for undergrounding by any neighborhood association. The City Administration wishes to amend Resolution No. 2019-30910 (attached); said amendment clarifying (1) that the City funding may be used in connection with a neighborhood’s request for a cost estimate relating to the undergrounding of any public utility, not just FPL, and (2) that the City Funding may be used, at the City’s discretion, to retain cost estimates from a third party consultant, instead of FPL or other public utility provider, in order to include other undergrounding costs, not typically covered by the public utility providers, such as, without limitation, the cost associated with the restoration of the public right-of-ways following completion of the undergrounding work by the public utility provider. Currently the CIP Department is negotiating with a consultant to provide cost estimates for undergrounding at West Palm Island and the Venetian Islands as described in more detail below. The CIP Department would like to fund these efforts from the $100,000 proceeds approved by Commission on July 17, 2019.
CAPITAL IMPROVEMENT PROJECTS UNDERGROUNDING
West Palm Island
In 2016, the Palm-Hibiscus-Star Islands Homeowners Association ("HOA'') approached the City of Miami Beach regarding the creation of a special taxing district to fund the undergrounding of overhead utilities on West Palm Island (the "District"). Specifically, the HOA seeks to relocate\underground the following overhead utilities: electric (FPL), telephone (AT&T), and cable television (Atlantic Broadband).
On November 9, 2016 the City Commission adopted Resolution No. 2016-29643, endorsing, as required pursuant to Section 18-2 of the Miami-Dade County Code, the creation by Miami Dade County of Special Taxing District for Palm Island for the undergrounding of overhead franchise utilities, 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.
The City has been working with all franchise utilities in the development of their designs and ultimately the development of a comprehensive undergrounding cost estimate.
Venetian Islands
On February 13, 2008, Commission passed Resolution 2008-26770 , authorizing the City Administration and City Attorney’s Office to proceed with the creation of Special Assessment Districts for Di Lido Island and San Marino Island for the purpose of funding the relocation of overhead utility lines underground, pursuant to the written request of the property owners of those islands.
On July 13, 2016, the City Commission adopted Resolution 2016-29498, endorsing, as required pursuant to Section 18-2 of the Miami-Dade County Code, the creation by Miami-Dade County of Special Taxing Districts for Di Lido Island and San Marino Island, respectively, for the undergrounding of overhead utilities, 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.
In 2019, the Venetian Islands Homeowner’s Association advised the City that their constituents have decided for the City to create the special assessment district rather than proceeding with Miami-Dade County. The City has been working with all franchise utilities to prepare a comprehensive undergrounding cost estimate.
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| | | | | | | | SUPPORTING SURVEY DATA
| | Results from the 2019 Resident Survey regarding Satisfaction with Perceptions of the City show that 47% of residents rated City efforts to plan for growth as very satisfied/satisfied. |
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| | | | | | | | FINANCIAL INFORMATION
| | Not applicable. |
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| | | | | | | | CONCLUSION
| | It is recommended that the City Commission approve amending Resolution No. 2019-30910 to clarify (1) that the City Funding may be used in connection with a neighborhood’s request for a cost estimate relating to the undergrounding of any public utility, not just FPL, and (2) that the City Funding may be used, at the City’s discretion, to retain cost estimates from a third party consultant, instead of FPL or other public utility provider, in order to include other undergrounding costs, not typically covered by the public utility providers, such as, without limitation, the cost associated with the restoration of the public right-of-way following completion of the undergrounding work by the public utility provider. |
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| | | | | | | | Applicable Area
| | South Beach |
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| | | | | | | | | Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? | | Does this item utilize G.O. Bond Funds? | | | Yes | | No | |
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| | | | | | | | Strategic Connection
| | Non-Applicable |
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| | | | | | | | Legislative Tracking
Capital Improvement Projects |
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| | | | | | | | Sponsor
Sponsored by Commissioner Alex Fernandez |
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