Legislative Matter

Miami-Dade Legislative Item
File Number: 111583

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Clerk's Official Copy

File Number: 111583

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-871-11

Control: County Commission

File Name: INTERLOCAL AGREMENT RELATED TO A CRA (AGENCY)

Introduced: 7/26/2011

Requester: NONE

Cost:

Final Action: 10/4/2011

Agenda Date: 10/4/2011

Agenda Item Number: 11A2

Notes:

Title:

RESOLUTION ESTABLISHING POLICY REQUIRING THAT EVERY NEW OR AMENDED INTERLOCAL AGREEMENT RELATED TO A COMMUNITY REDEVELOPMENT AGENCY (AGENCY) PROVIDE FOR A COUNTY COMMISSIONER TO SERVE AS A COMMISSIONER ON THE CRA BOARD AND FOR COUNTY COMMISSION APPROVAL OF EACH AGENCY’S BUDGET AS A PREREQUISITE TO THE AGENCY BORROWING MONEY, ADVANCING FUNDS OR INCURRING INDEBTEDNESS PROPOSED TO BE REPAID FROM OR SECURED BY THE CRA’S TAX INCREMENT FINANCING FUNDS

Indexes:

COMMUNITY REDEVELOPMENT AGENCY

Sponsors:	Lynda Bell, Prime Sponsor
	Audrey M. Edmonson, Co-Sponsor
	Sally A. Heyman, Co-Sponsor

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

Board of County Commissioners	10/4/2011	11A2	Adopted				P
REPORT:	Hearing no objections or comments, the Board members proceeded to vote on the foregoing proposed resolution.

Internal Mgmt. & Fiscal Responsibility Committee	9/13/2011	2Q	Forwarded with a favorable recommendation				P
REPORT:	Assistant County Attorney Jess McCarty read the foregoing proposed resolution into the record. Chairwoman Bell relinquished the Chair to Vice-Chairman Bovo. Commissioner Bell clarified that this proposal applied to any new or renegotiated Community Redevelopment Agency (CRA) contract. She noted it also provided that a County Commissioner would serve on the CRA Board to ensure transparency and accountability over the use of taxpayer’s money. It was moved by Commissioner Bell that the foregoing proposed resolution be forwarded to the Board of County Commissioners with a favorable recommendation. This motion was seconded by Commissioner Edmonson. Commissioner Edmonson asked the County Attorney to explain the difference between the proposed resolution and Resolution R-1382-09. Assistant County Attorney Terrence Smith explained that this proposed resolution reinforced the provisions of Resolution R-1382-09, which states that a County Commissioner would serve on the CRA Board, as specifically noted in the fourth Whereas Clause on handwritten page 4 and in Section 2 on handwritten page 5. He noted this item also included the requirement for CRAs to obtain the County Commission’s approval before incurring debt. Commissioner Edmonson questioned the status of all the other Interlocal Agreements with CRAs as requested along with Resolution No. R-1382-09. She also questioned the requirement that a County Commissioner served on a CRA Board. Assistant County Attorney Smith noted members of the Administration would address compliance issues related to this resolution. He also noted that the NW 7th Avenue Corridor CRA was the only CRA with an Interlocal Agreement which required that a County Commissioner served on the CRA Board. Commissioner Edmonson questioned whether the Interlocal Agreement with the City of Miami to negotiate parcels within a CRA would require opening that agreement. Mr. George Fernandez, Office of Management and Budget, said he did not believe that negotiations over the parcels would open the Interlocal Agreement. He noted that the County had not renegotiated any other CRA agreements, and negotiations with the newly appointed 79th Street CRA Board would include all proposed provisions. Commissioners Edmonson and Heyman asked to be listed as co-sponsors to the foregoing proposed resolution. Commissioner Jordan noted she believed a commissioner should have the option to appoint a representative, rather than to require that a commissioner serve on the CRA Board. Commissioner Edmonson noted Resolution R-1382-09 provides that a commissioner or his/her designee would serve on the CRA Board, and a similar provision was contained within this proposed resolution. Assistant County Attorney Smith responded that he believed Resolution R-1382-09 stated that the respective District Commissioner would serve on the CRA Board. Commissioner Bell noted she would accept an amendment if the resolution did not contain a provision for the appointment of a designee. Commissioner Jordan questioned whether the CRA needed County Commission approval to obligate funds, borrow money or incur debt after the agency’s budget was adopted. In response to Commissioner Jordan, Assistant County Attorney Smith noted pursuant to the Interlocal Agreement, CRAs were required to submit a line item budget to the County Commission for approval before incurring debt. Ms. Jennifer Moon, Budget Director, Office of Management and Budget, noted the proposed resolution would remove the loophole pertaining to the review of Interlocal Agreements. She said that under this proposal, CRAs would need County Commission approval before issuing debt or spending funds. Commissioner Jordan noted she recalled that Florida City was the only CRA required to obtain budget approval from the County Commission at a previous meeting and others were not. Ms. Moon responded that the Florida City CRA was the only CRA obtaining budget approval at that meeting, although other CRAs had this requirement. She said the policy was inconsistent, and from that day forward, all Interlocal Agreements contained language requiring budget approval by the County Commission before spending funds. Ms. Moon explained that all CRAs were also required to obtain Commission approval before issuing debt, in addition to obtaining budget approval. Commissioner Edmonson confirmed that a County Commissioner could designate another Commissioner to serve on the CRA instead of the District Commissioner. Commissioner Jordan questioned whether the proposed resolution could be amended to designate another community development representative from within the respective Commission District. Commissioner Bell noted a community representative would continue to provide oversight over the CRA. She accepted Commissioner Jordan’s friendly amendment to designate a representative from within the respective Commission District. Hearing no further comments or questions, the Committee voted to forward the proposed resolution with a favorable recommendation to the County Commission with Committee amendment(s) to provide that the District Commissioner could designate a community representative to serve on the CRA Board, as recommended by Commissioner Jordan. Assistant County Attorney Smith requested that this resolution be reconsidered. He explained that an amendment to the State Statute required that a representative of the taxing authority serve on the CRA Board, and noted a representative of a taxing authority was someone affiliated with the County such as a County Commissioner or his/her designee rather than a community representative. Commissioner Bell noted that the County Commissioner would be ultimately responsible as the designee. Commissioner Edmonson noted she was previously informed that the representative needed to be selected from within the governing board and could not be appointed. Assistant County Attorney Smith proceeded to read the provision from the State Statutes; as provided in the Interlocal Agreement between the governing body that created the agency and one or more taxing authorities as follows: “…one or more members of the Board of Commissioners of the Agency may be representatives of a taxing authority including members of the taxing authorities’ governing body, whose membership on the Board of Commissioners of the Agency would be considered an additional duty of the Office as a member of the taxing authorities’ governing body.” It was then moved by Commissioner Bell that the Committee reconsider the previous motion. This motion was seconded by Commissioner Edmonson, and upon being put to a vote, passed by a vote of 5-0, (Commissioner Suarez was absent). Following the discussion, it was moved by Commissioner Bell that the Committee forward the foregoing proposed resolution to the Board of County Commissioners with a favorable recommendation. This motion was seconded by Commissioner Edmonson. Hearing no further questions or comments, the Committee proceeded to vote on the foregoing proposed resolution as presented.

County Attorney	7/27/2011		Assigned	Terrence A. Smith

County Attorney	7/27/2011		Referred	Internal Mgmt. & Fiscal Responsibility Committee	9/13/2011

Legislative Text

TITLE
RESOLUTION ESTABLISHING POLICY REQUIRING THAT EVERY NEW OR AMENDED INTERLOCAL AGREEMENT RELATED TO A COMMUNITY REDEVELOPMENT AGENCY (AGENCY) PROVIDE FOR A COUNTY COMMISSIONER TO SERVE AS A COMMISSIONER ON THE CRA BOARD AND FOR COUNTY COMMISSION APPROVAL OF EACH AGENCY�S BUDGET AS A PREREQUISITE TO THE AGENCY BORROWING MONEY, ADVANCING FUNDS OR INCURRING INDEBTEDNESS PROPOSED TO BE REPAID FROM OR SECURED BY THE CRA�S TAX INCREMENT FINANCING FUNDS

BODY

WHEREAS, the State of Florida Legislature enacted the Community Redevelopment Act of 1969, which is presently codified in the Florida Statutes as Part III of Chapter 163, Sections 163.330 through 163.450, as amended, (the �Act�); and
WHEREAS, all powers arising through the Act are conferred upon counties with home rule charters; and
WHEREAS, all powers arising through the Act are conferred by the Act upon counties with home rule charters and authorizes said counties to delegate certain of such powers to a community redevelopment agencies (�Agency�); and
WHEREAS, the purpose of the Act is to provide a mechanism for counties and municipalities to eliminate slum and blighted areas through the creation of Agencies; and
WHEREAS, the County has traditionally delegated certain of its powers to Agencies through Interlocal Cooperation Agreements (�Interlocal�); and

WHEREAS, for those Agencies which the County has delegated its powers, this Board has in the past expressed concerns related among other matters to certain activities of the Agencies, their uses of tax increments funds, the untimely submission of budgets for approval by this Board after the Agency has borrowed money, advanced funds and incurred indebtedness, and the lack of County representation on these Agencies; and
WHEREAS, the Board recognizes that following the creation of the Agency, approval of the Redevelopment Plan, and execution of the Interlocal, the County has limited authority related to the uses of tax increment funds by and activities of the Agency; and
WHEREAS, the Board desires to establish a policy that protects the interest of the County related to Agencies; and
WHEREAS, this Board desires to establish a policy that requires that prior to this Board�s approval of any new Interlocal or amendment to an existing Interlocal with an Agency, and if applicable a municipality or other taxing authority, the Mayor or Mayor�s designee shall negotiate the inclusion in said Interlocal a provision that will permit at least one commissioner of this Board to serve as a commissioner of said Agency consistent with this Board�s resolution, Resolution No. R-1382-09; and
WHEREAS, this Board further desires to establish a policy that requires that prior to this Board�s approval of every new Interlocal or amendment to an existing Interlocal with an Agency, and if applicable a municipality or other taxing authority, the Mayor or the Mayor�s designee shall negotiate the inclusion in said Interlocal a provision that will require the Agency to submit timely budgets to the County for approval prior to borrowing money, advancing funds or incurring indebtedness proposed to be repaid from or secured by the Agency�s tax increment financing funds,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. The matters contained in the foregoing recitals are incorporated in this resolution by reference.
Section 2. The Board establishes a policy requiring prior to the Board�s approval of every new Interlocal or amendment to an existing Interlocal with an Agency, and if applicable a municipality or other taxing authority, that the Mayor or the Mayor�s designee shall negotiate with said Agency to include a provision in the Interlocal that permits at least one County Commissioner to serve as a commissioner of the Agency as required by Resolution No. R-1382-09.
Section 3. The Board establishes a policy requiring prior to the Board�s approval of every new Interlocal or amendment to an existing Interlocal with an Agency, and if applicable a municipality or other taxing authority, that the Mayor or the Mayor�s designee shall negotiate with said Agency, and if applicable, a municipality or other taxing authority to include a provision in the Interlocal that requires the Agency to submit timely budgets for approval by this Board prior to the Agency borrowing money, advancing funds or incurring indebtedness proposed to be repaid from or secured by the Agency�s tax increment financing funds.