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Res No 022-21-15642RESOLUTION NO.022-21-15642 A Resolution of the Mayor and City Commissioners of the City of South Miami urging the Florida Legislature to expand the qualifying improvements that may be financed through property assessed clean energy programs to include conversion from septic tanks to sewer systems and other sewage treatment improvements; preliminarily identifying this issue as a state legislative priority for the 2021 session. WHEREAS, the City of South Miami, as one of the municipalities of Miami -Dade County, is particularly vulnerable to sea -level rise and the associated risks due to the County's low elevation and proximity to the coast; and WHEREAS, over the years, the City of South Miami ("City") City Commission has worked to bring the issues of climate change and sea -level rise to the forefront of discussion and action in the local community; and WHEREAS, for example, the City of South Miami is a member of the Green Corridor Property Assessment Clean Energy District (the "District"), which is currently authorized to operate its PACE Program within the City's jurisdiction; and WHEREAS, the Florida Green Finance Authority, the Florida Resiliency and Energy District, the Florida PACE Funding Agency, and the Green Corridor Property Assessment Clean Energy (PACE) District are four separate legal entities and units of local government within the State of Florida which were established by separate interlocal agreements for the express purpose of providing PACE Programs in scalable and uniform platforms to facilitate the financing of Qualifying Improvements throughout Florida; and WHEREAS, Section 163.08, Florida Statutes (the "Supplemental Act"), authorizes counties, municipalities and certain separate local government entities to establish and administer financing programs, commonly known as Property Assessed Clean Energy (PACE) Programs ("PACE Programs"), in order to provide the up -front financing for energy conservation and efficiency, renewable energy, and wind resistance improvements ("Qualifying Improvements"), and repay such funding through voluntary special assessments, sometimes referred to as non -ad valorem assessments, levied upon the improved property pursuant to financing agreements between the property owner and the local government; and WHEREAS, while section 163.08, Florida Statutes is a good start, it provides that only certain kinds of improvements can qualify for PACE financing in Florida, and these qualifying improvements currently include energy conservation and efficiency improvements, renewable energy improvements, and wind resistance improvements; and WHEREAS, sewage treatment improvements, such as the conversion of properties from septic tanks to sewer systems, are not eligible for PACE financing because they are not listed as qualifying improvements in Section 163.08; and Page 1 of 4 Res. No. 022-21-15642 WHEREAS, within Miami -Dade County, numerous properties are served by septic tanks and are not connected to the County's sanitary sewer system; and WHEREAS, Miami -Dade County released a report, Septic Systems Vulnerable to Sea Level Rise, that with over 100,000 properties using septic tanks, Miami -Dade County has a significant threat on its hands; and WHEREAS, the report further estimated that within the next 25 years, the County can expect the number of residential systems that may be periodically compromised during storms or wet years to significantly increase from approximately 56% today (58,349 parcels) to more than 64% by 2040 (67,234 parcels) and concluded that by 2040, many areas within Miami -Dade County will experience groundwater levels within half a foot of the surface for more than 25% of the year, compromising the ability of septic systems to function properly; and WHEREAS, onsite septic systems, used to handle wastewater located in low-lying areas, face particular challenges, as septic system drainfields must be above the groundwater table and remain unsaturated to function effectively. Compromised septic systems have both public and environmental health risks, including potential contamination of potable water; and WHEREAS, section 163.08 should be amended to expand the list of qualifying improvements to include sewage treatment improvements, including the replacement of an onsite sewage treatment and disposal system with an advanced onsite sewage treatment system, as well as the replacement of an onsite sewage treatment and disposal system with a central sewage system, together with the associated fees or charges to connect to said sewage system; and WHEREAS, adding these sewage treatment improvements to the PACE list of qualifying improvements would provide additional options for property owners to finance such sewage treatment improvements, and the availability of PACE financing may help some property owners who are unable to access other financing; and WHEREAS, facilitating such sewage treatment improvements through PACE financing may increase the number of property owners who make such improvements to their property, and the corresponding reduction in older septic tank systems may result in significant benefits to water quality, particularly in Biscayne Bay; and WHEREAS, on January 22, 2021, House Bill 387: Property Assessed Clean Energy Program ("HB 387") has been filed for consideration during the Florida Legislature's 2021 session; and WHEREAS, the proposed bill amendments to Section 163.08 Fla. Stat. include the following revisions: revise the legislative intent regarding the types of improvements that qualify for specified financing under the PACE Program; specify that a property owner may apply to a PACE program for certain new important purposes such as flood and water damage mitigation and resiliency improvements; and provide that costs incurred by the PACE program may be 1 https://www.miamidade.gov/green/library/vulnerability-septic-systems-sea-level-rise.pdf Page 2 of 4 Res. No. 022-21-15642 collected as a non -ad valorem assessment; and WHEREAS, the City Commission finds that the adoption of this Resolution is in the best interest and welfare of the residents of the City. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY IISSIONERS OF THE CITY OF SOUTH MIAMI, FLORIDA: Section 1. The foregoing recitals are hereby ratified and confirmed as being true and they are incorporated into this resolution by reference as if set forth in full herein. Section 2. The Mayor and City Commissioners of the City of South Miami hereby urge the Florida Legislature to expand the qualifying improvements that may be financed through PACE programs to include sewage treatment improvements, including the replacement of an onsite sewage treatment and disposal system with an advanced onsite sewage treatment system, as well as the replacement of an onsite sewage treatment and disposal system with a central sewage system, together with the associated fees or charges to connect to said sewage system. Furthermore, the City Commission urges the Florida Legislature to preliminarily identify this item as a state legislative priority for the 2021 session. Section 3. Authorization. The City Manager is hereby authorized to direct the City's state lobbyists to advocate for the legislation described in Section 2 above. Section 4. Transmission. The City Clerk is hereby directed to transmit a copy of this Resolution to the Governor, the Senate President, the House Speaker, and the Chair and Members of the Miami -Dade State Legislative Delegation. Section 5. Corrections. Conforming language or technical scrivener -type corrections may be made by the City Attorney for any conforming amendments to be incorporated into the final resolution for signature. Section 6. Severability. If any section clause, sentence, or phrase of this resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding will not affect the validity of the remaining portions of this resolution. Section 7. Effective Date. This resolution will become effective immediately upon adoption. PASSED AND ADOPTED this 2nd day of March, 2021. ATTEST: APPR9VED: - �i C CITY LL E "MAYOR. Page 3 of 4 Res. No. 022-21-15642 READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY AND EXEC, THE 7 C ATTORNEY COMMISSION VOTE: 4-0 Mayor Philips: Yea Commissioner Harris: Yea Commissioner Liebman: Yea Commissioner Gil: Yea Page 4 of 4 Agenda Item No:4. City Commission Agenda Item Report Meeting Date: March 2, 2021 Submitted by: Thomas Pepe Submitting Department: City Attorney Item Type: Resolution Agenda Section: Subject: A Resolution of the Mayor and City Commissioners of the City of South Miami urging the Florida Legislature to expand the qualifying improvements that may be financed through property assessed clean energy programs to include conversion from septic tanks to sewer systems and other sewage treatment improvements; preliminarily identifying this issue as a state legislative priority for the 2021 session. 3/5 (Mayor Philips) Suggested Action: Attachments: Reso_re_HB_387_and_SB_1208sp.doc