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Home My WebLink About2012-136-1731 - Stormwater Billing Agreement 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 City of Miami Gardens Agenda Cover Memo Council Meeting Date: September 12, 2012 Item Type: Resolution Ordinance Other X Fiscal Impact: Yes No Ordinance Reading: 1 st Reading 2 nd Reading X Public Hearing: Yes No Yes No Funding Source: Stormwater Fund Advertising Requirement: Yes No X Contract/P.O. Required: Yes No RFP/RFQ/Bid #:X Strategic Plan Related Yes No Strategic Plan Priority Area: Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) X Sponsor Name Dr. Danny O. Crew, City Manager Department: Public Works Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AND ATTEST RESPECTIVELY, THAT CERTAIN REVISED AGREEMENT FOR THE BILLING OF STORMWATER CHARGES BETWEEN MIAMI ‐DADE COUNTY AND THE CITY OF MIAMI GARDENS FLORIDA, A COPY OF WHICH IS ATTACHED HERETO AS EXHIBIT “A”; PROV IDING FOR INSTRUCTIONS TO THE CITY CLERK; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE. Staff Summary: Background March 14, 2012, City Council passed Resolution #2012 ‐48 ‐1643 in which the City executed an interlocal agreement with Miami Dade County to collect the City’s stormwater utility user fees and maintain records (to justify charges, expenses, and costs) for a fee of $0.81 per bill. ITEM K-17) CONSENT AGENDA RESOLUTION Stormwater Billing Agreement 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 With the collection of the fees, the County will also deduct two Stormwater Utility Debt Service bonds (1999 and 2004) for stormwater drainage improvements. Per year cost of the bonds is $672,555, which expires in 2029. Current Situation After the passing on Resolution #2012 ‐48 ‐1643 by City Council in March 14, 2012, Miami Dade County requested changes to the interlocal agreement. These changes include (underlined below): Section 2: In the event the CITY revises its schedule of rates, the CITY shall deliver to the COUNTY, its revisions of such schedule of rates by furnishing to the Department’s Assistant Director of Finance a certified copy of the ordinance or other action of the CITY promulgating said revised schedule of rates a minimum of thirty (30) calendar days in advance of the effective date of the revised rates. Until the COUNTY is so furnished with a revised schedule, the COUNTY shall act upon the prior delivered schedule. The stormwater utility service charge shall be prorated in accordance with the revised schedule of rates. No security deposits shall be collected by the COUNTY nor shall delinquent penalty charges be imposed by the COUNTY on the stormwater utility charge. Section 4: The COUNTY agrees to observe the same diligence, policy and procedure in the billing and collection of stormwater utility service accounts as is used by the COUNTY in billing and collecting its water and/or sewer service accounts, except that the COUNTY shall not terminate water and/or sewer service for non ‐payment of stormwater utility service charges, except when account balances exceed an amount to be determined by the Department. Additionally, the COUNTY will not institute or maintain suits at law for collection of stormwater utility service charges. The COUNTY may provide water and/or sewer service to customers irrespective of said customer’s failure to pay the applicable stormwater utility charge. The COUNTY will not be responsible for billing of accounts that are inactive. Upon the CITY’s request, the COUNTY will provide the CITY with a report of inactive accounts to allow the CITY to bill the customer directly when the COUNTY is not collecting the fee. The COUNTY will not file any liens on property for the collection of the stormwater utility charges. Legal actions for non ‐payment of stormwater utility charges shall be the sole responsibility of the CITY. City staff has reviewed the revised language. Proposed Action: It is recommended that the City Council approve the proposed resolution supporting the addition of new language in Sections #2 and #4 of the existing interlocal agreement with Miami Dade County for the collection of stormwater utility fees. Attachments: Attachment #1: 2012 Resolution# 2012 ‐48 ‐1643 Attachment #2: County Revised Billing Agreement Stormwater Billin g Agreement City of Miami Gardens 04/25/2012 09/12/2012 1 AGREEMENT FOR THE BILLING OF STORMWATER CHARGES BETWEEN MIAMI -DADE COUNTY AND CITY OF MIAMI GARDENS THIS AGREEMENT, entered into this ____ day of ________, 20 12 , by and between the CITY OF MIAMI GARDENS, FLORIDA, a municipal corporation of the Sta te of Florida (the “CITY”), and MIAMI -DADE COUNTY, a political subdivision of the State of Florida (the "COUNTY"). W I T N E S S E T H: WHEREAS, the COUNTY, through its Miami -Dade Water and Sewer Department (the "Department"), operates the water and sew er utility systems within the CITY; and WHEREAS, effective March 1, 2007, the CITY has been exclusively responsible for operat ing and maintain ing the stormwater utility system within the CITY boundaries ; and WHEREAS, on March 27, 200 7 , the COUNTY and th e CITY entered into an agreement providing for the billing of stormwater charges by the COUNTY on the CITY ’s behalf and has been administering, billing and collecting a stormwater utility service charge simultaneously with the issuance of the COUNTY’s bill s for water and /or sewer service, and WHEREAS, the CITY desires the COUNTY to continue to administer, bill and collect the stormwater utility charge on behalf of the CITY ; and WHEREAS, the COUNTY has agreed to continue to administer, bill and collect t he stormwater utility service charges on behalf of the CITY ; and WHEREAS, the COUNTY needs to retain, from the stormwater utility service charges it collects for the CITY, on a monthly basis, the CITY’s pro -rata share of debt service on the Stormwater Ut ility Revenue Bonds, Series 1999 and Series 2004 (the “Stormwater Bonds”) outstanding on the Exemption Date of the City from the Miami -Dade County Stormwater Utility; NOW, THEREFORE, in consideration of mutual advantages, it is agreed: Section 1. The CI TY , jointly with the COUNTY, will designate and cause to be identified from time to time the water and /or sewer service accounts of the Department which thereafter, under the rules and regulations of the CITY , shall be billed for stormwater utility service charges. The CITY shall designate the rate classifications applicable thereto in writing in a format acceptable to the COUNTY. The COUNTY shall act thereon until such designations and classifications are changed in writing by the CITY . The CITY underst ands and accepts that the COUNTY shall consider the person or persons whose names appear on the COUNTY's water and /or sewer service account as the person or persons responsible for the stormwater utility service charges at the location involved. Stormwater Billin g Agreement City of Miami Gardens 04/25/2012 09/12/2012 2 Section 2 . In the event the CITY revises its schedule of rates, the CITY shall deliver to the COUNTY, its revisions of such schedule of rates by furnishing to the Department’s Assistant Director of Finance a certified copy of the ordinance or other action of the CI TY promulgating said revised schedule of rates a minimum of thirty (30) calendar days in advance of the effective date of the revised rates . Until the COUNTY is so furnished with a revised schedule, the COUNTY shall act upon the prior delivered schedule. The stormwater utility service charge shall be prorated in accordance with the revised schedule of rates. No security deposits shall be collected by the COUNTY nor shall delinquent penalty charges be imposed by the COUNTY on the stormwater utility charge. Section 3. The COUNTY agrees, through its regular and periodic billing procedures, to cause to be billed and collected from each water and sewer customer under said accounts, as an added and designated separate item on the bill, the stormwater utility service charge, according to the schedule of rates established by the CITY for such customer. During the term of this Agreement, this shall be the exclusive method for billing stormwater utility service charges by the County; no separate bills shall be is sued, except for those bills that may be generated by the CITY . The CITY authorizes and empowers the COUNTY to render such billing for the CITY 's account , and on the payment thereof , to give receipt and acquittance to the CITY , either by endorsement of pa yment upon such billings or by separate receipt. Upon the initial billing by the COUNTY to each user of stormwater utility service and , at any time during the term of this A greement, as deemed necessary by the COUNTY or the CITY , the CITY shall , at its so le cost and expense , and independent of this Agreement, advise such stormwater utility user of the method and arrangement between the CITY and the COUNTY for the billing and collection of said charge s by the COUNTY for and on behalf of the CITY as the CITY 's agent. Furthermore, the CITY shall notify its stormwater utility users of future rate increases. The COUNTY shall not be responsible for notifying new owners, occupants or tenants that there is a stormwater utility service charge. Section 4. The COUN TY agrees to observe the same diligence, policy and procedure in the billing and collection of stormwater utility service accounts as is used by the COUNTY in billing and collecting its water and/or sewer service accounts, except that the COUNTY shall not terminate water and/or sewer service for non -payment of stormwater utility service charges, except when account balances exceed an amount to be determined by the Department . Additionally, the COUNTY will not institute or maintain suits at law for collecti on of stormwater utility service charges. The COUNTY may provide water and /or sewer service to customers irrespective of said customer’s failure to pay the applicable stormwater utility charge. The COUNTY will not be responsible for billing of accounts th at are inactive. Upon the CITY’s request, the COUNTY will provide the CITY with a report of inactive accounts to allow the CITY to bill the customer directly when the COUNTY is not collecting the fee. The COUNTY will not file any liens on property for th e collection of the stormwater utility charges. Legal actions for non -payment of stormwater utility charges shall be the sole responsibility of the CITY . Section 5. The COUNTY will keep correct and proper books of accounts, showing monthly gross billing s of stormwater utility service charges, and shall provide to the CITY a monthly statement in writing, showing the net amount owed the CITY by the COUNTY for the month covered by such statement. The COUNTY shall provide this statement and the remittance d ue the CITY within sixty (60) days of the end of each monthly period. Based on such statement, the COUNTY shall make payment to the CITY of the amount due, less the COUNTY's compensation for the billing and collection of said charges and less any other pa yments or deductions as hereinafter specifically pr ovided in Sections 6, 9 and 10 of this Agreement. Stormwater Billin g Agreement City of Miami Gardens 04/25/2012 09/12/2012 3 The CITY agrees that the COUNTY shall remit monthly payments based on the collection of stormwater utility service charges, when the COUNTY’s billings sy stem is capable of this method of remittance on all accounts . Section 6 . Adjustments for uncollected stormwater billings shall be made on a regular basis, at least annually or when write -offs occur , as a deduction provided in Section 5. Section 7 . Upon written request from the CITY , the COUNTY shall make available for inspection or audit by the CITY and its representatives at any reasonable time all of its records pertaining to the COUNTY's actions under this Agreement as agent for the CITY an d shall also furnish to the CITY such information concerning the administration of this Agreement as the CITY may reasonably request, including information as to delinquent stormwater utility charges and accounts not currently being billed. Should the CITY , in any audit of the COUNTY’s records, find a discrepancy between the amount of funds remitted to the CITY and the actual billing and collection by the COUNTY, the COUNTY shall within 30 days of receipt of written notification from the CITY , remit to the CITY the sums owed upon the COUNTY’s agreement with the audit findings . Section 8 . Both the CITY and the COUNTY recognize that in the billing and collection of stormwater utility service charges involving thousands of custome rs, numerous situation s arise that require discretion. The CITY agrees that the COUNTY may use its best judgment in such instances. The COUNTY's method or manner of handling such situations shall not be considered negligence under , or independent of , the terms and conditions o f this Agreement n or shall it constitu t e a breach of this Agreement, and the COUNTY shall not be liable or responsible to the CITY for any loss in stormwater utility service charge revenues by reason of the COUNTY's discretionary handling of such situation s. Specifically, the COUNTY shall have the right to remove or adjust the stormwater utility service charge from a customer’s bill if the customer provides proof acceptable to the COUNTY that he or she was not the owner, occupant or tenant of the property on the date that the stormwater utility service charge was applied. However, the COUNTY shall advise the CITY of all adjustments to the CITY accounts as part of the monthly statements provided pursuant to Section 5. Except as otherwise specified in this S ection , any adjustments to accounts assessed a stormwater utility service charge shall be initiated solely by the CITY and provided to the COUNTY in writing. Section 9 . The CITY agrees to pay to the COUNTY , and the COUNTY shall receive from the CITY , by means of deduction from payments for monthly billings, compensation determined as follows: A. For the period from the effective date of this A greement, until the A greement is modified pursuant to Section 11 herein after, a charge in the amount of eighty -one cents ($0.8 1 ) per bill for all accounts to be charged the CITY ’s stormwater utility service charge; and B. For all costs and expenses incurred and paid by the COUNTY during the preceding month in defending legal actions brought against the COUNTY by any per son, firm or corporation, excluding the CITY , involving billing or collection of stormwater utility service charges on behalf of the CITY , or involving the COUNTY's administration of the terms and conditions of this Agreement. The COUNTY shall notify the CITY in writing of any legal claims filed against the COUNTY pertaining to the COUNTY’s billing and collection of the CITY ’s stormwater fees within thirty (30) w orking days of receipt of any claim. The Stormwater Billin g Agreement City of Miami Gardens 04/25/2012 09/12/2012 4 CITY shall have the option to defend the COUNTY on an y such claims and settle or compromise the same , unless such a claim involves employee dishonesty or theft , in which case, the COUNTY will defend said claim . Section 10 . The CITY agrees to pay to the COUNTY , and the COUNTY shall receive from the CITY , by means of deduction from payments for monthly billings of stormwater utility service charges collected by the COUNTY for the CITY , the CITY ’s pro -rata share of debt service on : (i) the Stormwater Bonds until they are paid in full or provision made for thei r payment pursuant to Article IX of Ordinance No. 98 -187, enacted by the Board of County Commissions on December 15, 1998 in accordance with the debt service schedule set forth in Exhibit “A ” to this Agreement , and (ii) any obligations associated with cost -sharing Stormwater Management Projects that may include, but not be limited to, canal dredging, canal maintenance and drainage projects that may be agreed to subsequent to the date of this Agreement for which payment will be based on a mutually agreed fra ction. For any payments pursuant to (ii) above , the COUNTY, through its Department of Permitting, Environment and Regulatory Affairs (PERA) with a copy to be sent to the Miami -Dade Water and Sewer D epartment, will inform the CITY thirty (30) calendar days prior to the beginning of each Fiscal Year, of the amount of s tormwater utility service charges the County will retain each month in addition to those retained pursuant to Exhibit “A ” to this Agreement . Upon written agreement by both the CITY and the COU NTY , this Agreement may be modified to include any additional CITY share of debt service due to future CITY annexations. Section 1 1 . The COUNTY reserves the right to review and revise the c harges provided for in Section 9 (A ) hereinabove , and the CITY ag rees to be bound thereby, provided the COUNTY provides ninety (90) days notice to the CITY of said proposed revised charges . Section 1 2 . All telephone calls and correspondence from customers regarding the stormwater utility shall be the responsibility o f the CITY . The COUNTY shall cause the telephone number for the CITY , as provided by the CITY , to be printed on the COUNTY's regular bill stock. Se ction 13 . The CITY agrees that the COUNTY shall not be held liable for a ny damage, delay or other loss tha t the CITY may experience as a result of the COUNTY’s practices in administering this Agreement, unless such loss arises solely as a result of negligence by the COUNTY, its employees or agents. Section 1 4 . It is understood and agreed between the CITY and the COUNTY that the COUNTY's obligation is limited to billing and collection of stormwater utility service charges as specifically provided for in this Agreement. Section 15 . The CITY shall not allow or permit construction or installation of any con nectio ns of stormwater mains that allow stormwater to enter the COUNTY's sanitary sewer system. The CITY agrees to use its best efforts to detect and lawfully disconnect all stormwater connections to the COUNTY's sanitary sewer system within the CITY 's jurisdic tion and submit , within ninety (90) days of the execution of this Agreement , a timetable for the elimination of such stormwater connections , which is reasonably acceptable to the COUNTY. Section 16 . This Agreement shall be binding upon the respective succ essors and assigns of both the CITY and the COUNTY. Section 17 . All references to the CITY under this Agreement that require direction to the COUNTY shall mean the CITY Manager or his designee. Whenever written notice to the CITY is required, it shall be sent by Certified Mail, Return Receipt Requested, to : Stormwater Billin g Agreement City of Miami Gardens 04/25/2012 09/12/2012 5 CITY of Miami Gardens 1515 N.W. 167th Street Miami Gardens, Florida, 200 (Attention: City Manager) Whenever written notice to the COUNTY is required , it shall be sent by Certified M ail, Return Rec eipt Requested to : Miami -Dade County Miami -Dade Water and Sewer Department 3071 S. W. 38 th Avenue Miami, Florida 33146 (Attent ion: Assistant Director -Finance) Section 18 . This Agreement shall remain in full force and effect for a period of ten (1 0) years after its date of execution. This Agreement may be extended for an additional ten (10) year period by written request from the City Manager to the Department’s Director and mutual agreement by the Department, without which it shall terminate. Not withstanding the above provisions, this Agreement shall terminate and be cancelled without further writings between the CITY and the COUNTY upon either party providing six (6) months notice in writing to the other party so advising the other party. Notwit hstanding the provisions of this paragraph, should the COUNTY fail to timely bill the CITY ’S customers in accordance with the agreed -upon billing cycles and rates or fail to remit payment to the CITY consistent with the tim eframes specified in Section 5 , t he CITY may terminate this Agreement on thirty (30) days written notice to the COUNTY. Notwithstanding the above, this Agreement may not be terminated at any time without a COUNTY -approved alternate method of payment by the CITY to the COUNTY of the CITY ’s outstanding debt service obligation for the Stormwater Bonds. (The rest of this page is intentionally left blank) Stormwater Billin g Agreement City of Miami Gardens 04/25/2012 09/12/2012 6 IN WITNESS WHEREOF, the parties hereto have executed these presents as of the day and year first above written. MIAMI -DADE COUNTY ATTEST: BY :________________________ BY:__________________________ Clerk County Mayor ATTEST: CITY OF MIAMI GARDENS BY:__________________________ BY: ________________________ CITY Clerk Mayor Approved as to form and legal Approved as to form and legal sufficiency: sufficiency: _________________________ _____________________________ Assistant County Attorney Attorney for C ity of Miami Gardens