C7D - Endorse Palm Island Utility Ug

Resolutions - C7 D

C7 D A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ENDORSING THE CREATION BY MIAMI-DADE COUNTY OF A SPECIAL TAXING DISTRICT FOR PALM ISLAND (WEST) FOR THE UNDERGROUNDING OF OVERHEAD FRANCHISE UTILITIES (AT&T AND BREEZELINE), 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. Applicable Area:

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends that the Mayor and City Commission (City Commission) adopt the Resolution.

BACKGROUND/HISTORY

On May 13, 2009, the City Commission adopted Resolution No. 2009-27065, approving the creation of special taxing districts for Palm and Hibiscus Islands. The Resolution required further action by the property owners in order to finalize the special taxing district, including the requirement that 50% of the property owners within the proposed district sign a petition requesting the creation of the special taxing district. This requirement was unsuccessful for the west half of Palm Island and the special taxing district for undergrounding utilities in that area was never created.

On November 9, 2016, the City Commission adopted Resolution No. 2016-29643, approving the creation of special taxing districts for Palm Island. The Resolution again required further action by the property owners in order to finalize the special taxing district, including the requirement that 50% of the property owners within the proposed district sign a petition requesting the creation of the special taxing district. Again, this requirement was unsuccessful for the west half of Palm Island and the special taxing district for the undergrounding of utilities in that area was never created.

In early 2025, the Palm-Hibiscus Islands Homeowners Association (HOA) approached Miami- Dade County (County) for the creation of a special taxing district for the funding necessary to underground overhead franchise utilities (AT&T and Breezeline) on the west side of Palm Island (the "District"). Overhead utility lines on the east side of Palm Island have already been undergrounded. In contrast to the previous occasions, FPL is being excluded from the undergrounding since they are expected to provide underground residential electrical service at no cost to homeowners within the next couple of years under their Storm Secure Underground Program (SSUP).

On June 27, 2025, the County confirmed that the Bond Administration of the County Finance Department stated that the required funding was not sufficient to be covered by bonds secured by Miami-Dade County. They recommended that a project of this size would benefit from a

financing mechanism where the City would get a construction loan from a bank or provide internal financing.

ANALYSIS

As the County will not fund the improvements, the County would establish the special taxing district, while the City of Miami Beach would be responsible for advancing the funding and collecting the assessments. Additionally, the City would oversee the successful completion of the undergrounding project.

Section 18-2 of the Miami-Dade County Code provides that no special taxing district created pursuant to Chapter 18 "shall be comprised solely of a municipality or embrace all or part of a municipality without the approval of the governing body of such municipality." As such, the prior approval of the City Commission is required before the County may create the requested special taxing district.

In addition to the Resolution, pursuant to Chapter 18 of the County Code, the Miami-Dade County Code requires that either the County Mayor or 50 percent of the property owners within the proposed District sign a petition requesting the establishment of the special taxing district. Upon receipt of such petition, the County Clerk shall transmit a copy to the County Mayor, who shall examine the petition and file a written report with the Clerk. If the County Mayor finds that the petition meets the requirements of Chapter 18, the County Mayor shall conduct a cost and feasibility study and prepare a report that meets the specific requirements set forth in Section 18- 3(c) of the County Code. Once the report is finalized, the County Clerk shall set a public hearing for the Board of County Commissioners to hear testimony, consider any objections, and determine whether to grant the petition to create the districts. Following the public hearing, if the Miami-Dade County Board of County Commissioners decides to grant the petition, it shall adopt an ordinance establishing the District.

Upon the County's successful establishment of the District, the City and Miami Dade County will need to enter into an interlocal agreement. Under this agreement, the City will finance the improvements, manage construction, and levy and collect the special assessments from the residents in the District. The total cost of the project will include the cost of the work as detailed in the franchise utilities binding estimates, Miami-Dade County fees, the City's financing and administrative fees and construction administration costs.

FISCAL IMPACT STATEMENT

The City of Miami Beach will fund the Project costs of the project and levy and collect the special assessments from the residents in the District. The total cost of the Project will include the cost of the work as detailed in the franchise utilities binding estimates, Miami-Dade County fees, the City's financing and administrative fees and construction administration costs.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

The Administration recommends that the City Commission adopt the Resolution.

Applicable Area

South Beach

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Capital Improvement Projects

Sponsor(s)

Co-sponsor(s)

Condensed Title

Special Taxing District, Palm Island Undergrounding of Utilities (AT&T/Breezeline). CIP