File Number: 093216
|Clerk's Official Copy
|File Number: 093216
|File Type: Resolution
|Status: Adopted as amended
|Control: Board of County Commissioners
|Requester: Office of Capital Improvements
|Final Action: 3/17/2009
|Sunset Provision: No
|OCI - Amended item to include the updated IO to Legistar No. 082605
|Board of County Commissioners
|Adopted as amended
|County Attorney Robert Cuevas read the foregoing proposed resolution into the record. Commissioner Rolle expressed his gratitude to staff for their efforts in developing this process and requested that surplus funds, generated from interest earned on the Building Better Communities General Obligation Bonds (GOB) be utilized in the event of a funding shortfall. Commissioner Heyman was concerned over additional costs to the County in the event all bonds were not sold to fund projects for which money had been committed. She also expressed concern that projects might be delayed or shifted while pending funding from the next bond sale, and noted the project should remain in the pipeline until funding was available. County Manager Burgess noted projects had been advanced in the past, with an understanding that the bond sale was imminent. He pointed out that the GOB debt was the most secure debt any local government could have; however, he emphasized the importance of knowing that the scheduled sale was imminent before advancing or shifting projects. County Manager Burgess explained that, with this $350 million bond issue, the County sold $146 million dollars in the first sale, and another $203 million later. He noted the costs would potentially increase if funding for projects pending an upcoming bond sale were delayed. It was moved by Commissioner Gimenez that this resolution be amended to include language providing that that a two-thirds vote of Commission members present be required to override the Citizen’s Advisory Committee’s (CAC) recommendations and that a simple majority vote of Commission members present be required to approve the CAC’s recommendations. This motion was seconded by Commissioner Jordan, followed by discussion. Discussion ensued among Board members regarding a previous amendment made by the July 8th Governmental Operations and Environment Committee providing that “…The waiver provision was amended to read “a majority of Board members present” instead of “two thirds of the members in office…” and whether it was necessary to incorporate both amendments into this resolution. Commissioner Gimenez stated he believed the amendment he proposed was a compromise solution requiring only a simple majority to approve the CAC’s recommendations; however, a two-thirds vote would be required to override any issues the CAC voted against. Responding to Assistant County Attorney Geri Bonzon-Keenan’s request for clarification on the voting requirement, Commissioner Gimenez noted two-thirds of members present, rather than of the membership, would be required to override the CAC’s recommendations against issues. Ms. Bonzon-Keenan expressed a need for clarification on which of the related items (9A1, 9A1 Supplement, 9A1 Supplement 2) the Board wished to amend. County Manager Burgess indicated that the vote was to amend Item 9A1, as amended by Item 9A1 Supplement 2. There being no further questions or comments, by motion duly made, seconded, and carried by a unanimous vote, the Board adopted the foregoing resolution as amended to incorporate the language from Agenda Item 9A1 Supplement No. 2, and to provide that a 2/3 vote, of Commission members present, be required to override the Citizens’ Advisory Committee’s (CAC) recommendation(s), and a simple majority vote of Commission members present be required to approve the CAC’s recommendation(s).
RESOLUTION RESCINDING RESOLUTION NO. R-1208-06; APPROVING IMPLEMENTING ORDER 3-47 TO PROVIDE A PROCESS FOR ALLOCATION OF BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND PROGRAM SURPLUS FUNDS, PREMIUM FUNDS AND UNSPENT BOND PROCEEDS; AND AUTHORIZING THE COUNTY MAYOR OR DESIGNEE TO EXERCISE ANY AND RIGHTS CONFERRED IN IMPLEMENTING ORDER
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum and implementing order, copies of which are incorporated herein by reference,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. The foregoing recital is incorporated in this resolution and is approved.
Section 2. Resolution No. R-1208-06 is hereby rescinded.
Section 3. This Board approves Implementing Order 3-47: Process for Allocation of Surplus and Other Funds from Building Better Communities General Obligation Bond Program and authorizes the County Mayor or designee to exercise any and all rights conferred therein.
To: Honorable Chairman Dennis C. Moss
and Members, Board of County Commissioners
From: George M. Burgess
Subject: Building Better Communities (BBC) General Obligation Bond (GOB) Program -
Adoption of Implementing Order Relating to the Use of Surplus Funds,
Premium Funds and Unspent Bond Proceeds
This item, listed as Agenda Item No. 2N on the July 8, 2008 Governmental Operations and Environment Committee (GOE) agenda, was amended by the Committee as follows:
� Replace all references to �County Manager� with �Mayor or his/her designee.�
� Section A(6) of the original Implementing Order provided that the �County Manager shall approve the use of BBC-GOB Funds to accelerate Projects without approval by the Board.� The GOE Committee amended such section to provide that the Mayor or his/her designee shall submit a resolution to the Board recommending the acceleration and deceleration of funding for Projects from available BBC-GOB Funds as often as necessary. The amendment also requires the Mayor or his designee to advise the Commissioner of the district in which the affected projects are located before submitting a resolution to the Board.
� In order to expedite Board consideration of recommendations to accelerate and decelerate funding for projects, the GOE Committee directed the County Attorneys� Office to prepare an amendment to the Board�s Rules of Procedure to waive the requirements of committee review and the 4-day rule for such items. This ordinance was adopted by the Board on December 2, 2008 via Ordinance 08-137.
� Section C(E)(7) was added to include an evaluation factor of environmental impact to be applied when the need for BBC GOB funds exceed available funds.
� Section F was amended to be consistent with the change to A(6) by providing that acceleration and deceleration of projects by reported as often as necessary rather than quarterly.
� The waiver provision was amended to read �a majority of Board members present� instead of �two thirds of the members in office.�
� A sunset provision of one-year from the date of the next bond issuance was added to the Implementing Order.
It is recommended that the Board of County Commissioners (Board) adopt the attached resolution approving an Implementing Order (IO) placing into effect an administrative process for the use of Building Better Communities General Obligation Bond (BBC-GOB) Program Surplus Funds, Premium Funds and Unspent Bond Proceeds (�BBC-GOB Funds�), as defined in the attached IO. It is further recommended that the Board rescind Resolution No. R-1208-06, approved by the Board on October 10, 2006, which granted the County Manager the authority to accelerate projects with Unspent Bond Proceeds because this resolution accomplishes the same and more.
This item impacts funds generated from the sale of BBC bonds for the expected 15 � 18 year life of the program.
Fiscal Impact/Funding Source
There is no fiscal impact from the implementation of this recommendation. The funding source is BBC-GOB Funds.
The responsible party for monitoring BBC-GOB funds is the Office of Capital Improvements (OCI).
Delegation of Authority
There is no delegation of the Board�s authority as this item calls for recommendations to accelerate and decelerate funding for projects be submitted directly to the Board, without prior Committee review and waiving the 4-day rule.
Pursuant to Resolution No. R-67-08 approved by the Board at the January 10, 2008 meeting, the accompanying IO recommends an administrative process for the allocation of BBC-GOB Funds.
The BBC program is a $2.9 billion, multi-year capital improvement program funded by the periodic issuance of general obligation bonds. BBC-GOB Funds may be generated as part of the program. While it is difficult to predict how much Surplus and Premium Funds may be available at any given time, these funds are not expected to yield significant dollars relative to the magnitude of the bond program.
The Office of Capital Improvements manages the BBC Bond Program. A primary responsibility of administering the program is to apply bond proceeds to Projects that are ready to move forward. On October 10, 2006, via Resolution No. R-1208-06, the Board authorized the County Manager, with certain limitations, to allocate Series 2005 bond proceeds from Projects that were not moving as quickly as expected to fund Projects that were ready to start. Recommendations to accelerate and decelerate funding for projects will be submitted directly to the Board, without prior Committee review and waiving the 4-day rule. For the purposes of this memorandum, the definition of �Projects�, �New Projects�, �Surplus Funds�, �Premium Funds�, Unspent Bond Proceeds� and �BBC-GOB Funds� shall be as stated in the accompanying IO.
We recommend the use of BBC-GOB Funds be subject to the limitations and processes outlined in this proposed IO. The underlying premise of the IO is that BBC-GOB Funds will be used primarily to fund Budget Shortfall in Projects, subject to Board approval, and to accelerate Projects, through the process described in the IO. BBC-GOB Funds may also be used to retire debt, subject to Board approval. The IO ensures public input by requiring that recommendations on the use of BBC-GOB Funds be submitted to the Citizens� Advisory Committee (CAC) in accordance with CAC Ordinance No. 05-70. Absent a waiver of the application of the IO by an affirmative vote of a majority of Board members present, no New Projects shall be funded with Surplus Funds until all Projects have been completed or until all the necessary funding for completion of all Projects has been identified to the satisfaction of the Board. The status of Surplus and Premium Funds will be detailed in the BBC/GOB Quarterly reports to the Board. This Implementing Order contains a one-year sunset provision.
This recommendation was presented to the Building Better Communities Citizens� Advisory Committee at their meeting of May 1, 2008. The CAC voted in favor of moving the item forward to the Board for consideration.
Assistant County Manager
I.O. No.: 3-47
PROCESS FOR ALLOCATION OF SURPLUS AND OTHER FUNDS FROM BUILDING BETTER COMMUNITIES-GENERAL OBLIGATION BOND (BBC-GOB) PROGRAM
Section 5.02 of the Miami-Dade County Home Rule Amendment and Charter.
Resolution No. R-67-08, approved by the Board of County Commissioners (the �Board� or �BCC�) on January 10, 2008, directed the Mayor or his/her designee to recommend a process to allocate surplus, premium, and other bond funds received from the sale of Building Better Communities General Obligation Bonds (�BBC-GOB�). This resolution also directed the Mayor or his/her designee to submit quarterly reports to the Board regarding such premium, interest earnings and surplus bond funds.
By the Board�s approval of this IO, the Board acknowledges that: 1) the implementation of BBC-GOB projects is of paramount importance to the community�s economy and quality of life, 2) the priority of the Board is to create a process that will accomplish the will of the voters by ensuring the timely completion of the projects and serve the County as a whole and 3) it is in the County�s best interest to advance the BBC-GOB program as quickly as possible and minimize the risk of arbitrage by applying bond proceeds to those projects that are ready to move forward.
The BBC-GOB Program is a multi-year capital improvement program which will generate $2.9 billion to fund more than 360 capital improvement projects at thousands of sites throughout the County over the next 15 to 18 years. Funding for these projects is secured through the periodic sale of general obligation bonds on an as-needed basis. This program is being administered by the Miami-Dade Office of Capital Improvements (OCI). The following is the procedure for the allocation of the aforementioned BBC-GOB Program funds:
A. Building Better Communities � General Obligation Bond Funds (�BBC-GOB Funds�)
1) Surplus Funds mean: Net Interest Income and Unused Proceeds;
2) Net Interest Income means: interest earnings on unspent bond proceeds that accrue from the time bonds are sold to the time the bond proceeds are spent, less administrative expenses and any arbitrage liability set-asides;
3) Premium Funds mean: the amount by which the price paid for a bond exceeds the bond face value.
4) Unspent Bond Proceeds mean: bond proceeds available because funded Projects for which the bond proceeds were allocated are not ready to move forward.
5) Unused Proceeds mean: bond proceeds or allocation not used because a project is completed for less than the authorized allocation or from the deletion or �significant modification� of a project by the Board.
The sources of funds described in 1-5 above shall be collectively referred to as �BBC-GOB Funds�. (See Attachment 1, a matrix explaining these sources of funds.)
B. Other Definitions -
1) Acceleration means: the addition of a new project to the list of projects approved by the Board for funding from a specific bond sale. All accelerations shall require Board approval.
2) Budget Shortfall means: An estimated or actual deficiency in the funds required to complete a Project. The deficiency may be caused by a variety of reasons including, but not limited to, an underestimation in the original cost estimate, an increase in scope, unforeseen conditions, steep escalation in cost of materials or services or other increase in costs during project implementation.
3) Cash Flow Revision means: a revision to the cash-flow of a Project approved by the Board for funding from a particular bond sale, provided such Cash-Flow Revision does not increase the total allocation approved by the voters for that Project. Any such increase shall be approved by the Board. The subtotal of a bond question to be funded from a particular bond sale may be increased or decreased as a result of a Cash-Flow Revision The Mayor or his/her designee is authorized to approve Project Cash-Flow Revisions which will be reported to the Board quarterly. In the event that a Project is expected to be de-funded or delayed as a result of a Project Cash-Flow Revision, prior Board approval is required before a Cash-Flow Revision is implemented.
4) New Project means: a project not included in Appendix A to the Authorizing Resolutions as of the effective date of this IO.
5) Projects mean: unless otherwise noted, �Projects� refers to projects identified as of the effective date of this IO in Appendix A to Resolution Nos. R-912-04, R-913-04, R-914-04, R-915-04, R-916-04, R-917-04, R-917-04 and R-919-04 (the �Authorizing Resolutions�), as each may be amended from time to time by the Board after a public hearing, respectively. Once a new project is approved for BBC-GOB funding as provided in this IO, this definition shall be deemed to include such new project.
USE OF FUNDS
A. Premium Funds � Premium Funds are part of the total $2.9 billion authorized proceeds. They do not represent �new� funds to the bond program. Therefore, Premium Funds shall only be used to accelerate Projects and not to fund Budget Shortfalls in Projects, retire debt or fund New Projects.
B. Unspent Bond Proceeds - Unspent Bond Proceeds shall be used to accelerate Projects as set forth in this IO.
C. Surplus Funds - Surplus Funds may be used to accelerate Projects, fund Budget Shortfalls, fund New Projects but only after all Projects have been completed or when all the necessary funding for completion of all Projects has been identified to the satisfaction of the Board and retire bond debt, subject to BCC approval, as set forth in this IO.
A. Accelerating Projects using BBC-GOB Funds
1) OCI shall work with stakeholders when a Project has been identified that was not included in the list of Board approved projects for a particular bond sale but are ready to move forward.
2) No Project will be de-funded or delayed as a result of an acceleration of another Project, if such Project is ready to proceed.
3) All accelerations shall require Board approval.
4) In the event that there are multiple Projects ready to proceed that exceed the available BBC-GOB Funds, OCI shall apply the evaluation factors included in Section E below.
5) The use of Surplus Funds to accelerate Projects shall be presented to the BBC/GOB Citizens� Advisory Committee (the �CAC�) so it may advise the Mayor or his/her designee regarding such use of Surplus Funds as provided in Ordinance No. 05-70. If the CAC recommends the use of Surplus Funds for acceleration, such acceleration shall be approved by a majority vote of the Board members present. However, if the CAC does not recommend the use of Surplus Funds for acceleration, a two-thirds (2/3) vote of the Board members present shall be required to approve use of Surplus Funds to acceleration the Project(s).
6) The status of Net Interest Income and Premium Funds shall be reported to the BCC as part of each BBC/GOB Quarterly Report.
7) Project Cash Flow revisions will be done administratively. (see definition)
B. Funding Budget Shortfalls in Projects using Surplus Funds
1) Throughout the year OCI may become aware of Budget Shortfalls in Projects.
2) OCI will work with stakeholders of the Projects and the Office of Strategic and Business Management (OSBM) to determine if the application of Surplus Funds, complemented by other available non-bond related funds, as necessary, may be used to eliminate the Budget Shortfall.
3) OCI shall prepare recommendations to the Mayor or his/her designee on the application of Surplus Funds and other non-bond related funds to cover Budget Shortfalls in Projects.
4) In the event the need for Surplus Funds to cover Budget Shortfalls for multiple Projects exceeds the available funds, OCI shall apply the evaluation factors included in Section E below. The application of the evaluation factors shall be explained in the Mayor�s or his/her designee�s recommendation to the BCC on the use of Surplus Funds.
5) The Mayor�s or his/her designee�s recommendation regarding which Projects will use Surplus Funds to cover Budget Shortfalls shall be presented to the CAC so it may advise the Board regarding such use of Surplus Funds as provided in Ordinance No. 05-70. The advice of the CAC shall be included in the agenda item submitted to the BCC. In accordance with the Ordinance, all requests for the use of Surplus Funds shall be presented to the CAC prior to committee and BCC consideration.
6) The Mayor or his/her designee shall make recommendations to the BCC on the use of Surplus Funds for Budget Shortfalls on a case-by-case basis.
7) If the CAC recommends the use of Surplus Funds to cover Budget Shortfalls, such use shall be approved by a majority vote of the Board members present. However, if the CAC does not recommend approval of such use, a two-thirds (2/3) vote of the Board members present shall be required to approve use of Surplus Funds to cover Budget Shortfalls.
C. Adding New Projects to the program using Surplus Funds
1) Prior to adding a New Project to be funded using Surplus Funds in accordance with the process set forth in the Authorizing Resolutions, the Board shall consider the following factors:
a) All Projects have been completed or all the necessary funding for all Projects has been identified to the satisfaction of the Board.
b) The New Project is within the general scope of one of the eight voter-approved bond questions as determined by the County Attorney�s Office.
c) The New Project is ready to proceed. Project readiness is established when a stakeholder has demonstrated that the New Project scope is completely defined, all the necessary remaining resources are in place or can be obtained and the project delivery system will start within the next 270 days or less.
d) The New Project shall be fully supported with adequate operational funds as demonstrated by the proposed stakeholder through the use of a business plan, pro forma and/or other supporting documentation as the County�s professional staff may reasonably require.
2) The Mayor�s or his/her designee�s recommendation regarding the application of Surplus Funds to fund a New Project shall be presented to the CAC so it may advise the Board regarding such use of Surplus Funds as provided in Ordinance No. 05-70. The advice of the CAC shall be included in the agenda item submitted to the BCC. In accordance with the Ordinance, all requests for the use of Surplus Funds shall be presented to the CAC prior to committee and BCC consideration. If the CAC recommends the use of Surplus Funds to fund a New Project, such use shall be approved by a majority vote of the Board members present. However, if the CAC does not recommend such use, a two-thirds (2/3) vote of the Board members present shall be required to approve the use of Surplus Funds to fund a New Project.
3) The status of Surplus Funds and Premium Funds and the addition of any New Project shall be reported to the BCC as part of each BBC/GOB Quarterly Report.
D. Retiring bond debt using Surplus Funds
In the event no uses of Surplus Funds are identified, the Board, by the affirmative vote of a majority of those members present, may authorize the Mayor or his/her designee to apply Surplus Funds and/or Unused Proceeds to retire bond debt. If the CAC recommends the use of Surplus Funds and/or Unused Proceeds to retire bond debt, such use shall be approved by a majority vote of the Board members present. However, if the CAC does not recommend such use, a two-thirds (2/3) vote of the Board members present shall be required to approve use of Surplus Funds and/or Unused Proceeds to retire bond debt.
E. Evaluation factors to apply when the need for BBC-GOB Funds exceed available funds
The following evaluation factors shall be applied whenever the need for BBC-GOB Funds exceeds the available funds for the purpose listed above.
1) Does the Project or New Project have a positive impact on crime in the project area? (in accordance with Resolution No. R-67-08)
2) Does the Project or New Project have a positive impact on the poverty in the project area? (in accordance with Resolution No. R-67-08)
3) Does the Project or New Project have positive impact on the safety of a particular facility or area?
4) Does the Project or New Project have a positive impact on the housing needs in the project area?
5) Does the Project or New Project spur economic development in the project area?
6) Does the Project or New Project have a positive impact on the healthcare of the population of Miami-Dade County?
7) Does the Project or New Project have a positive impact on the environment of the County?
F. Reporting �
1) The status of surplus and premium and unspent proceeds will be reported to the BCC as part of each BBC/GOB Quarterly Report.
2) Acceleration of approved projects will be recommended to the BCC by resolution as often as necessary.
If the CAC recommends waiver of the provisions of this implementing order, such provisions may be waived by an affirmative vote of a majority of the Board members present; provided, however, if the CAC does not recommend waiver of the provisions of this implementing order, a two-thirds (2/3) vote of the Board members present shall be required to waive the provisions of this implementing order.
This Implementing Order shall sunset one year from the date of issuance of the next series of BBC/GOB bonds scheduled to be issued by the end of calendar year 2008 unless extended by the BCC.
This Implementing Order is hereby submitted to the Board of County Commissioners of Miami-Dade County, Florida.
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