Miami-Dade Legislative Item
File Number: 120858
   Clerk's Official Copy   

File Number: 120858 File Type: Resolution Status: Adopted
Version: 0 Reference: R-311-12 Control: County Commission
File Name: INTERLOCAL AGREEMENT BETWEEN MDC AND CITY OF DORAL Introduced: 4/24/2012
Requester: Citizens' Independent Transportation Trust Cost: Final Action: 4/3/2012
Agenda Date: 4/3/2012 Agenda Item Number: 10A1
Notes: THIS IS FINAL VERSION AS ADOPTED. ALSO SEE 120452. amended version to 120452 Title: RESOLUTION BY THE BOARD OF COUNTY COMMISSIONERS APPROVING A SETTLEMENT OF LITIGATION AND AN INTERLOCAL AGREEMENT BETWEEN MIAMI-DADE COUNTY AND THE CITY OF DORAL IN ORDER THAT THE CITY OF DORAL MAY RECEIVE ITS PRO-RATA SHARE OF SURTAX REVENUE FOR FISCAL YEARS 2010-2011 AND 2011-2012 OUT OF THE COUNTY’S 80% SHARE OF THE CHARTER COUNTY TRANSPORTATION SALES SURTAX FUNDS; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE THE AGREEMENT ON BEHALF OF THE COUNTY AND TO EXERCISE ANY AND ALL RIGHTS CONTAINED THEREIN [SEE ORIGINAL ITEM UNDER FILE NO. 120452]
Indexes: INTERLOCAL AGREEMENT
Sponsors: Jose "Pepe" Diaz, Prime 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

County Attorney 5/11/2012 Assigned Bruce Libhaber

County Mayor 4/24/2012 Assigned County Attorney 4/3/2012
REPORT: CITT (amended version to 120452) - Bruce Libhaber assisted - Comm. Diaz Sponsor

County Mayor 4/24/2012 Assigned Alina Tejeda-Hudak 4/24/2012

Board of County Commissioners 4/3/2012 10A1 AMENDED Adopted as amended P
REPORT: Mayor Juan Carlos Diaz, City of Doral, expressed his appreciation to Commissioner Diaz for sponsoring this proposed resolution and to the County Commission for their consideration. He noted he was available along with members of the City Administration to address any specific questions. Commissioner Sosa noted the settlement was for a two year period; however, she was subsequently informed that the City of Doral and the Town of Cutler Bay would receive payments over three years due to the “me too” clause, creating a greater fiscal impact to the County. Ms. Jennifer Moon, Director, Management and Budget Department responded that Commissioner Sosa was correct; however, reserves were established in the FY 2011-12 budgets for the Peoples Transportation Plan (PTP) Fund allowing payments to those municipalities in the current fiscal year. In response to Commissioner Sosa’s question whether any of the cities were incorporated after November 2002, Ms. Moon responded that all three cities incorporated after the PTP was created. Commissioner Sosa noted concern about the 80/20 split; the impact of the “me too” clause; and the 2-year negotiated period for one municipality versus 3-years with the other two municipalities. She asked Ms. Moon to provide her with the percentage of PTP funds allocated to the three municipal governments (City of Miami Gardens, City of Doral and Town of Cutler Bay) that incorporated after the PTP began in November 2002; and whether this allocation would be included in the formula used to recover PTP funding. Ms. Moon noted projects were completed in each of the three municipalities which were included in the 80 percent. She said the result of this negotiation was to receive money prospectively rather than to recover all funds as per the original request. Ms. Moon explained that all municipal Interlocal agreements expired July 2012 and needed to be re-negotiated. Commissioner Sosa said the use of the half-penny Charter County Sales Surtax was manipulated after the original public referendum and suggested the surtax be voted upon once again to determine whether it should continue or be eliminated. Commissioner Heyman noted that all Interlocal agreements needed to be re-negotiated. She said that members of the County Commission fought hard to get funds from the Unincorporated Municipal Service Area percentage rather than from the municipalities for new incorporations. Commissioner Heyman noted answers on financial issues should be addressed including the impact of the “me to” clause upon other cities. Vice-Chairwoman Edmonson proceeded to place the foregoing proposed resolution on hold until later in today’s (4/03) meeting to accommodate an 11:00 a.m. time certain item. The meeting reconvened at 2:55 p.m. Commissioner Heyman noted concern whether there was sufficient money in the budget to cover an existing “me too” clause that would shift a portion of the County’s 80 percent share of Personal Transportation Plan (PTP) Surtax revenue to newly created municipalities. Ms. Jennifer Moon, Director, Management and Budget Department responded that sufficient funds were reserved in the FY 2011-12 budgets and that this transfer of funds would not affect the County’s service levels or its debt service payments. She noted that the funds would cover duration of the current Interlocal agreements and new agreements needed to be negotiated and be effective by July 2012. Ms. Moon clarified that sufficient funds were reserved to cover costs associated with the City of Doral (Doral), the City of Miami Gardens (Miami Gardens), and the Town of Cutler Bay (Cutler Bay) “me too” clause obligations. Ms. Moon noted an amendment needed to be read into the record. Assistant County Attorney Bruce Libhaber read an amendment to the foregoing proposed resolution into the record. Commissioner Heyman asked for confirmation for the record whether sufficient funds had been budgeted to include the anticipated “me too” clause financial obligations for each of the three municipalities previously mentioned to which Ms. Moon confirmed that that there would be no additional budgetary impact to the taxpayers and that payments would be made exclusively from reserves. Commissioner Heyman noted that Miami Gardens received a portion of the Surtax revenue; however, they had pending claims against the County. She noted concern about the Interlocal agreements in the event that Miami Gardens prevailed in receiving more money. Assistant County Attorney Libhaber responded that the proposed resolution was a separate agreement which applied exclusively to Doral. He explained that the “me too” clause for Cutler Bay would apply as a consequence of approving this agreement. He further explained that neither this agreement nor the Cutler Bay agreement provided any funds for Miami Gardens. Assistant County Attorney Libhaber noted that Cutler Bay had reached an agreement with Miami Gardens which would be presented to the County Commission. Commissioner Sosa inquired whether it was advantageous to present a complete package to the County Commission taking into consideration the $10.1 million settlement with Miami Gardens and whether sufficient funds were allocated for all three municipalities in the PTP reserve. Ms. Moon responded that reserves for all three municipalities existed. Commissioner Moss questioned the amount of annual Surtax revenue that would be transferred to the three municipalities from the County’s 80 percent share. Ms. Moon responded that the FY 2011-12 transfers to the three municipalities was $6 million and the PTP projected budget was $150 million for that period. She noted the FY 2012-13 projections were approximately $175 million. Commissioner Moss inquired about the method used to determine the amount of Surtax revenue each municipality would receive annually. Ms. Moon responded that the revenue was calculated based upon the number of people in each municipality in the same manner as calculated for the municipalities who received allocations from the 20 percent share; however, the allocation was now to be taken from the County’s 80 percent share. Commissioner Moss expressed concern about the financial impact to the County by providing funds to newly incorporated municipalities out of the County’s 80 percent share, noting those funds were designated to support regional transportation needs. Ms. Moon responded that the foregoing proposed resolution would settle a legal issue between the municipalities and the County and was not making changes to the County Code in relation to the distribution of funds. She noted Administration and the Citizens’ Independent Transportation Trust was developing recommendations for the expenditure and distribution of transportation funding, taking into consideration the impact of these funds on future incorporations and annexations. Commissioner Moss clarified and Ms. Moon confirmed that the proposed resolution would temporarily settle a situation pending a policy discussion about how to proceed. Commissioner Monestime noted he believed that all municipalities irregardless of the number of municipalities involved needed to share the 20 percent of Surtax funds allocated to municipalities and the remaining 80 percent was to be used by the County for regional transportation needs. Ms. Moon explained that different interpretations existed about the implementation of the Surtax allocation, particularly as it related to State law. She noted the unincorporated area was never considered part of the 20 percent allocated to municipal projects; therefore, it was understood that all of the unincorporated area projects would be absorbed by the 80 percent County allocation. Ms. Moon said that many projects in the unincorporated area were not being completed in order to support the regional transit system. She noted that funding issues for the three municipalities and for future municipal incorporations need to be addressed, as well as the impact on other revenues remaining in the unincorporated area and the County. Commissioner Monestime inquired whether the municipalities could deplete the County’s 80 percent share. Ms. Moon responded that the majority of the County’s 80 percent share would be depleted if 40 percent of the County’s population remained in the unincorporated area and all newly incorporated areas drew funding from the County’s share. Commissioner Monestime noted he understood that all municipalities shared the 20 percent and that each municipality would receive a smaller portion of that share as new municipalities were created. Assistant County Attorney Libhaber explained that the original ordinance described the 80/20 split as noted by Commissioner Monestime; however, the 20 percent share was to be divided amongst municipalities that incorporated as of November 5, 2002. He said municipalities incorporating after this date had the right to negotiate with the County Manager for its proportion of the pro rata share. Assistant County Attorney Libhaber noted the funding for any municipality that incorporated after November 5, 2002 would come from a source other than the 20 percent share and that Miami Gardens, Cutler Bay and Doral incorporated after this date. Assistant County Attorney Libhaber noted that a State statue was subsequently adopted which had been reasonable interpreted that funding could come from the 20 percent share; however, the County ordinance must be revised to be consistent with State statute. He proceeded to explain that the foregoing proposed resolution authorized funding for Doral through the summer of 2012 at which time the County Commission needed to adopt a long term policy for the distribution of funds. Vice-Chairwoman Edmonson said she shared Commissioner Moss’ concerns, noting the difficulty of traveling across the County without a county-wide transportation system. She said the future impact and repercussion of this concern needed to be fully vetted before it was considered by the County Commission. Commissioner Jordan asked and Ms. Moon clarified that a city of Unincorporated Municipal Service Area (UMSA) did not exist. Commissioner Jordan noted that unincorporated Miami-Dade County was supported by the 80 percent share and that future incorporations would present ramifications to transportation projects as well as to the Building Better Communities Governmental Obligation Bonds and other projects. She said the moratorium was proposed in order to review issues before any decisions were made; however, it appeared this was not happening. Commissioner Jordan noted Miami Gardens and any other newly formed municipality should receive their fair share. She said she did not believe any municipality would willingly give up their share of the 20 percent allocation to a newly formed municipality. Commissioner Jordan asked Assistant County Attorney Libhaber to prepare an amendment to the existing County ordinance relating to the distribution of Transportation Surtax funding between the County and municipalities consistent with the State statute in order to enable newly incorporated municipalities to be funded from the 20% previously designated for municipalities. Hearing no further questions or comments, the Commission proceeded to vote on the foregoing proposed resolution as amended. The foregoing proposed resolution was adopted as amended to replace on typed page 1A under the Section entitled Fiscal Impact/Funding Source as follows: “Approximately $2.154 million” with “Approximately $2.507 million” and “…an additional $1.331 million” with “…approximately $1.294 million”.

Legislative Text


TITLE
RESOLUTION BY THE BOARD OF COUNTY COMMISSIONERS APPROVING A SETTLEMENT OF LITIGATION AND AN INTERLOCAL AGREEMENT BETWEEN MIAMI-DADE COUNTY AND THE CITY OF DORAL IN ORDER THAT THE CITY OF DORAL MAY RECEIVE ITS PRO-RATA SHARE OF SURTAX REVENUE FOR FISCAL YEARS 2010-2011 AND 2011-2012 OUT OF THE COUNTY’S 80% SHARE OF THE CHARTER COUNTY TRANSPORTATION SALES SURTAX FUNDS; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE THE AGREEMENT ON BEHALF OF THE COUNTY AND TO EXERCISE ANY AND ALL RIGHTS CONTAINED THEREIN

BODY
WHEREAS, On November 5, 2002, the voters of Miami-Dade County adopted Ordinance No. 02-116 levying and imposing a one half of one percent Charter County Transit System Surtax (Surtax) pursuant to the authority of Sec. 212.055 (1) Fla. Stats. (2002); and

WHEREAS, twenty (20) percent of Surtax proceeds shall be distributed annually to only those municipalities existing as of November 5, 2002, and the County and the City of Doral (City), which was incorporated after said date, desire to resolve its pending litigation and execute an interlocal agreement (ILA) in order for the City to receive its pro-rata share of Surtax revenue out of the County’s 80 percent share of the Surtax, and

WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board approves this settlement of litigation and an Interlocal Agreement between Miami-Dade County and the City of Doral in order that the City of Doral may receive its pro-rata share of surtax revenue for fiscal years 2010-2011 and 2011-2012 out of the County’s 80% share of the Charter County Transportation Sales Surtax Funds; and authorizing the County Mayor or County Mayor’s designee to execute the agreement on behalf of the County and to exercise any and all rights contained therein.

HEADER
Date:

To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners

From: Robert A. Cuevas
County Attorney

Carlos A. Gimenez
Mayor

Subject: Interlocal Agreement between Miami Dade County and the City of Doral

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board of County Commissioners (BCC) approve the attached Interlocal Agreement between Miami-Dade County and the City of Doral as part of the settlement of litigation. The proposed Interlocal Agreement will allow the City of Doral to receive its pro-rata share of Surtax revenue out of the County’s 80 percent share of the Charter County Transportation Sales Surtax funds (Surtax).

Scope
This proposed Interlocal Agreement will provide Surtax funds to the City of Doral, located within Commission District 12.

Fiscal Impact/Funding Source
Approximately $2.507 million of Surtax funds will be available to the City of Doral for eligible expenses. In addition, approval of this agreement will result in an additional $1.294 million of surtax funds going to the Town of Cutler Bay, consistent with the “me too” clause included in the Interlocal Agreement with the Town of Cutler Bay adopted by the BCC on February 7, 2012. This funding will come from the County’s share of the revenues. In an abundance of caution, and because actual Surtax revenues have exceeded the budget for the past two years, we have held in reserve the revenue we assumed was at risk of being distributed to the new municipalities. Therefore, these transfers can be made without impairing any currently scheduled projects.

Track Record/Monitor
The Interlocal Agreement will be monitored by the Office of the Citizens’ Independent Transportation Trust (CITT). The CITT was created to monitor the implementation of the Peoples Transportation Plan and to oversee the expenditure of the Surtax.

MANAGER'S BACKGROUND
Background
On November 5, 2002, the voters of Miami-Dade County adopted County Ordinance No. 02-116 levying and imposing a one half of one percent Charter County Transit Sales Surtax (Surtax). As part of the Ordinance, 20 percent of the Surtax proceeds shall be distributed annually to those cities existing as of November 5, 2002. The remaining 80 percent is retained by the County to support regional transportation needs.

At the time of the adoption of the Surtax there were 31 eligible municipalities. Subsequently, three new municipalities have incorporated (Miami Gardens, Doral and Cutler Bay). At the May 3, 2011 Board of County Commissioners meeting (Board), the Board approved a motion made by Chairman Martinez to “execute agreements with the three municipalities created since the implementation of the PTP surtax providing funding consistent with the municipal distribution with said funding coming from the County’s 80 percent; to provide that these agreements be contingent upon the three applicable municipalities agreeing to a voluntary dismissal of any claims it may have as well as an executed release; to direct the County Administration to bring the appropriate amendments to the County Code necessary to ensure that successor interlocal agreements with all municipalities contain provisions to protect the funding for regional transportation services in the event of future incorporations; and to provide for the consideration of other amendments to municipal MOE requirements.”

After negotiations with Miami-Dade County, the City of Doral has agreed to enter into an Interlocal Agreement with Miami-Dade County in order to receive its pro-rata share of Surtax revenue out of the County’s share of the Charter County Transportation Sales Surtax funds. This Interlocal Agreement will provide the City of Doral with surtax funding from the County’s 80% share for the fiscal years of 2010-2011 and 2011-2012. The City of Doral has agreed to dismiss its lawsuit with prejudice upon approval of this agreement and distribution of the surtax funds.

Miami Gardens has not dismissed pending claims. We continue to negotiate with Miami Gardens and will present any resulting agreement to the Board for consideration. The agreement negotiated with Doral, includes a clause similar to the clause in the Cutler Bay Interlocal, that ensures that Doral will be subject to the same terms as Miami Gardens, should those negotiations result in better conditions.



__________________________
Alina T. Hudak
Deputy Mayor/County Manager



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