Item Coversheet

Resolutions - R7  J




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:July  25, 2018
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, DIRECTING THE CITY ADMINISTRATION TO IDENTIFY GREEN AND BLUE INFRASTRUCTURE TECHNOLOGIES, STORMWATER STRATEGIES AND OTHER INNOVATIVE WATER SOLUTIONS, THAT CAN UTILIZE THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) GUIDELINES FOR FUNDING; AND DIRECTING THE CITY MANAGER TO GO OUT INTO THE MARKETPLACE FOR FUNDING SOURCES, INCLUDING, BUT NOT LIMITED TO, SEEKING MUNICIPAL BOND PROCEEDS TO PAY FOR CONSUMER REBATES, INSTALLATIONS AND OTHER DISTRIBUTED INFRASTRUCTURE INITIATIVES; AND DIRECTING THE ADMINISTRATION TO WORK WITH THE CITY'S EXTERNAL AUDITOR, FINANCIAL ADVISOR, AND BOND COUNSEL TO ENSURE COMPLIANCE WITH THE CITY'S BOND RESOLUTIONS AND ACCOUNTING STANDARDS.


ANALYSIS

Cities and town account for 80 percent of the spending in the US on drinking water, stormwater and wastewater nationwide, and Federal and State public support for these services has deteriorated over the years. Traditional/conventional municipal stormwater services require the capture, treatment and management of water on a large scale basis. There are new green and blue decentralized infrastructure innovations that allow for the distribution over many parcels of land, to perform portions of the traditional municipal stormwater functions as well as conventional stormwater infrastructure programs.

The new green and blue infrastructure innovations are often less expensive than conventional infrastructure and more compatible with maintaining environmental health. The Harvard University Graduate School of Design, in its 2017 research report titled “South Florida and Sea Level: The Case of Miami Beach,” recommended that the City of Miami Beach should expand flood mitigation projects from single-purpose engineering solutions to multi-functional green infrastructure.

The Urban Land Institute’s (ULI) Miami Beach Stormwater Management and Climate Adaptation Advisory Services Panel recommended that the City implement City-Wide Blue-Green Infrastructure. The ULI Panel indicates that the implementation of blue-green infrastructure will absorb pollutants, increase flexibility, and offer co-benefits beyond stormwater management. Seattle, Philadelphia, Los Angeles, Milwaukee and the Las Vegas areas are all experimenting successfully with distributed water strategies in various ways.

WaterNow Alliance, in partnership with the National League of Cities Institute, has been working with a team of bond lawyers and municipal finance experts to make it easier for cities and towns to pay for green and distributed infrastructure water programs in the same way that they pay for conventional water infrastructure through debt financing.

The Governmental Accounting Standards Board (GASB) has issued authoritative guidance relating to utility spending on distributed water programs. This guidance has opened the way for local governments to access capital markets and invest in consumer rebates and other distributed water programs for the green and blue infrastructure. Bond counsel and tax bond counsel have advised that depending on the proposed project descriptions, each of the City’s stormwater projects depends on a variety of methodologies to manage water. Street pavement, curbs and gutter, valley gutters, sidewalks, and increased elevation are used to control the flow of water into the City’s dedicated collection and conveyance system. The landscaped areas are actual greenways made up of trees, grasses, and other vegetation used to slow the flow and reduce the amount of stormwater runoff by allowing for infiltration, and to naturally reduce the pollutants in the runoff. Therefore each of these items is a component of the stormwater management system and should be considered connected to the stormwater utility and could possibly be financed with bonds under the resolution.

Other projects, like rebates, may require an amendment to the City’s bond resolutions and accounting standards, or other actions that would require direction from the City’s external auditor, financial advisor, and bond counsel.


CONCLUSION

The Administration is directed to identify new efficient green and blue distributed infrastructure innovations and technologies, stormwater strategies and other innovative water solution, that can utilize the GASB guidance and allow the City to go out into the marketplace for municipal bond proceeds to pay for the improvements, including providing consumer rebates, direct installations and other distributed infrastructure initiatives, and the Administration is directed to work with the City’s external auditor, financial advisor, and bond counsel to ensure compliance with the City’s bond resolution and accounting standards.
Legislative Tracking
Public Works
Sponsor
Commissioner John Elizabeth Aleman

ATTACHMENTS:
Description
Water Leader Guide
GASB Impl Guide Excerpt
Revised Resolution - Supplemental