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RESOLUTION APPROVING AMENDMENTS TO ADMINISTRATIVE RULES GOVERNING THE BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND PROGRAM WITH RESPECT TO DISBURSEMENTS TO MUNICIPALITIES [SEE ORIGINAL ITEM UNDER FILE NO. 062642]

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by this reference,NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board hereby approves the amendments to the Administrative Rules governing the Building Better Communities General Obligation Bond program approved by this Board pursuant to Resolution No. R.-595-05, which amended and restated Administrative Rules are in substantially the form attached to the accompanying memorandum as Attachment 1.

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Date:

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

From: George M. Burgess
County Manager

Subject: Resolution Authorizing the County Manager to Amend the Administrative Rules for the Building Better Communities (BBC) Bond Program with respect to Municipal Disbursements

OTHER
This item was deferred, at the Assistant County Manager�s request, at the INLUC Meeting of September 25th, 2006 in order to formalize the safeguards related to the advance disbursement of funds to municipalities into the item.

STAFF RECOMMENDATION
It is recommended that the Board of County Commissioners (Board) adopt the attached resolution revising the Administrative Rules governing the Building Better Communities (BBC) General Obligation Bond Program to amend the method of disbursement of Bond fund allocations to municipalities to allow payment of up to 90% of the agreement amount given certain conditions.

MANAGER'S BACKGROUND
On May 17, 2005 the Board approved Resolution No. R-595-05 establishing the Administrative Rules for the BBC Program. The Administrative Rules currently require that,following the execution of an interlocal agreement, in general, payments shall be made to recipients on a reimbursement basis. However, the Administrative Rules also allow advance payment of up to 25% of the value of the funding allocation for a municipal project. The change requested will allow for the disbursement to municipalities of up to ninety percent (90%) of their Building Better Communities project allocation assuming that satisfactory progress has been accomplished. The remaining ten-percent (10%) of the bond fund allocation will be retained in order to assure that the intended scope of the project is implemented and that the municipality is in compliance with the County�s Administrative rules. A request for advance payment can be initiated by either the recipient or by the County.
It is important to note that this change will not cause an automatic lump-sum transfer of 90% of the fund allocation in any case. I want to assure the Board that safeguards will be instituted to ensure proper management of advanced funding. Prior to making any advance payments, County staff will evaluate each project�s performance and determine, on a case-by-case basis, that satisfactory progress has been accomplished. There will be no transfers in advance of such evaluations. Evaluations will be conducted by Miami-Dade�s Office of Capital Improvements (OCI). Specific guidelines to be followed in making these evaluations and disbursements are included in the revised Administrative Rules included as Attachment 1.
OCI will make a recommendation to the County Manager and he, or his designee, shall be required to approve each disbursement under this provision. Furthermore, if the County Manager concludes that a municipality that has benefited from this provision has not complied with the BBC Administrative Rules or has otherwise not made satisfactory progress, the County may withhold sufficient funds due the municipality from other sources, such as PTP funds, until such time as the County Manager feels the County�s interests are protected. The Board will be informed of each disbursement under this provision.
As you are aware, as part of the BBC Bond Program, the County is subject to arbitrage penalties for any funds not spent within three years after each respective bond sale. In order to avoid arbitrage penalties, it is in the County�s best interest to implement projects and expend bond proceeds as quickly as possible. This recommended change to the Bond Program will greatly assist in reducing the risk of arbitrage penalties in the future and reduce administrative expenses related to multiple municipal interlocal agreements.