2010-27472 Reso C7G3RESOLUTION NO.I 2010-27472
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, INITIATING
CONFLICT RESOLUTION PROCEDURES PROVIDED BY
SECTION 164.1052 OF THE FLORIDA STATUTES PRIOR TO
INITIATING LITIGATION AGAINST MIAMI-DADE COUNTY
WITH REGARD TO MIAMI-DADE COUNTY'S "HOLD-
HARMLESS OPTION" PROPOSAL TO PROVIDE CITIES
INCORPORATED AFTER 2002 WITH THEIR SHARE OF THE
PEOPLE'S TRANSPORTATION PLAN SURTAX REVENUES
FROM THE PRE-EXISTING CITIES' 20% SHARE OF THE
SURTAX, CONTRARY TO MIAMI-DADE COUNTY
ORDINANCE N0.02-116.
WHEREAS, in 2002, Miami-Dade County voters approved the People's
Transportation Plan ("PTP") and ahalf-cent sales tax surtax to be used for the
enhancement of transit and transportation in Miami-Dade County; and
WHEREAS, because previous efforts to implement such a tax had been
defeated by the voters, then-Mayor Alex Penelas worked in good faith with municipal
leaders to develop arevenue-sharing concept that could be supported by the existing
cities in Miami-Dade County; and
WHEREAS, without support from the municipal leadership in Miami-Dade
County, the ballot question most likely would have failed; and
WHEREAS, the agreed-upon proposal provided that 20% of the' revenue
generated by the half-cent sales tax would be distributed to the City of Miami Beach and
the other cities in existence at the time the tax was approved; and
WHEREAS, on July 9, 2002, the Miami-Dade County Board of County
Commissioners (BCC) adopted Ordinance No. 02-116, which expressly states that 20%
of the proceeds must be distributed solely among the existing cities; and
WHEREAS, Ordinance No. 02-116 specifically states that newly incorporated
municipalities will have the right to negotiate with the County for their pro rata share of
the sales surtax from the County's 80% portion, and that providing funding to new cities
would not affect the 20% share provided to municipalities that existed at the time the
question was approved by the voters; and
WHEREAS, since 2002, three incorporations have been permitted in Miami-
Dade County: Miami Gardens, Doral, and Cutler Bay; and
WHEREAS, municipalities currently receiving the surtax have consistently
expressed support for these three new cities to receive funding as provided for by
Miami-Dade County in Ordinance No. 02-116; and
WHEREAS, House Bill 1205 was approved during the 2009 Florida legislative
session, requiring Miami-Dade County to renegotiate the interlocal agreements for
distribution of the surtax proceeds every five years to include any new municipalities;
and
WHEREAS, House Bill 1205 does not specify how the surtax revenues for new
municipalities are to be funded; and
WHEREAS, a working group was convened earlier this year by Miami-Dade
County with representatives of municipalities and the County to discuss this issue, which
group met on at least three occasions and discussed options proffered by the County;
and
WHEREAS.. the working group did not agree on a solution, only that further
discussion should continue; and
WHEREAS, on July 19, 2010, County Manager George Burgess issued a
memorandum to the Board of County Commissioners (BCC) informing the BCC that he
had directed staff to prepare legislation for their consideration that "embraces ahold-
harmless model" (the "hold-harmless option"); and
WHEREAS, the hold-harmless option proposes to provide PTP revenues to the
new cities with the growth in PTP revenue that is expected in the coming years as the
economy recovers; and
WHEREAS, the 5-year impact to the City of Miami Beach is estimated by the
Citizen's Independent Transportation Trust to be between $800,000 and $1.1 million
under the hold-harmless option; and
WHEREAS,. on July 29, 2010, the Citizen's Independent Transportation Trust
("CITY') approved two resolutions, the first supporting an amendment .to. Ordinance No.
02-116 to provide for the funding of new municipalities through the implementation of the
hold-harmless option and the easing of the municipal maintenance of effort requirement,
and second urging the BCC to fund the new municipalities from a county source other
than the 20% municipal share until new funding sources are identified or Ordinance No.
02-116 is amended; and
WHEREAS, on August 24, 2010, the City Commissions of the cities of Coral
Gables and Hialeah approved resolutions to initiate a conflict resolution procedure
against Miami-Dade County pursuant to Section 164.1052 of the Florida Statutes
regarding this "hold-harmless option"; and
WHEREAS, the Mayor and City Commission of the City of Miami Beach support
a plan whereby the new cities of Miami Gardens, Doral, and Cutler Bay are provided
their rightful share of PTP surtax funding as provided in Miami-Dade County Ordinance
No. 02-116;
WHEREAS, Miami-Dade County has proposed the implementation of the "hold-
harmless option", which the City of Miami Beach strongly opposes and, therefore the
City of Miami Beach has a conflict with Miami-Dade County that necessitates the
initiation of conflict resolution procedures under Section 164.1052 of the Florida
Statutes.
2
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that ~ conflict resolution
procedures provided by Section 164.1052 of the Florida Statutes, are hereby initiated
against Miami-Dade County due to the conflict created by the County's proposal of the
"hold-harmless option" with regard to the distribution of the People's Transportation Plan
surtax revenues.
PASSED AND ADOPTED this ~~day of~p~ 2010.
ATTEST:
~-C~
CITY CLERK ~ AYO
T:WGENDA\2010\September 15\ConsentlPTP Reso 3.docx
APPROVED AS TO
FORM & ANGUAGE
', 8 FOR E TIOM
q ~4 to
ORNEY ~ D TE
3
COMMISSION ITEM SUMMARY
Condensed Title:
1. A Resolution expressing support for Miami Gardens, Doral, and Cutler Bay, urging Miami-Dade County to fund
these three cities from the County's 80% share of People's Transportation Plan surtax funding.
2. A Resolution urging the Board of County Commissioners to reject the County Managers "hold-harmless" option
for funding the new cities from the existing cities 20% share.
3. A Resolution formally initiating conflict resolution procedures pursuant to Chapter 164 should the County adopt
the "hold-harmless" o lion.
Ke Intended Outcome Su orted:
Enhance Mobility Throughout the City
Supporting Data (Surveys, Environmental Scan, etc.): Transportation remains one of the most significant
reas to address from the survey results (often mentioned as a key quality of life issue). 24% of residents
ated traffic flow as excellent or good, and 37% as poor. 35% of residents rated the availability of pedestrian
ils and bic cle aths/lanes as excellent or ood, and 30% as or.
Issue•
Shall the City support funding for Miami Gardens, Doral, and Cutler Bay from the County's 80% share of PTP
Funds; and, oppose the County Manager's proposal to amend the PTP Ordinance; and, initiate conflict resolution
procedures with Miami-Dade County regarding this issue?
Item
The County Manager has proposed to the County Commission an amendment of the Ordinance to split 20% of
the PTP revenue known as the "municipal share" among three "new cities" as well as an increased number of
cities. In addition to forcing cities to share a smaller pool while the County receives a greater share with fewer
residents, this proposal has not received support from the municipalities that would be impacted. The legislation
approving the PTP sets forth the- manner by which new municipalities can receive PTP funds (through the
County's 80% share), and the City maintains that this remains the appropriate mechanism, consistent with the
promises made to municipalities in 2002 to obtain their support for the PTP.
The PTP, as approved by the voters and adopted via Ordinance No. 02-116 sets forth the mechanism by which
municipalities -those existing at the time of passage of the tax and those created after passage -will receive
PTP funds.
The Administration recommends that the Mayor and City Commission adopt the attached Resolutions, expressing
support of the three new cities of Miami Gardens, Dorm and Cutler Bay and urging Miami-Dade County to fund
these three new cities from the County's 80% share, as agreed to by Miami-Dade County and as currently
required by Ordinance No. 02-116, and further express opposition to the "hold-harmless" option proposed by the
County Manager, and authorize the initiation of conflict resolution procedures provided by Chapter 164, Florida
Statutes, should the Board of County Commissioners adopt on first reading, an ordinance implementing the "hold-
harmless" option.
Board Recommendation:
Financial Information:
Source of Amount Account
Funds: ~
N/A 2
3
OBPI Total
Financial Impact Summary: Preliminary estimates are that the county's proposal could cost the
Cit between $800,000 and $1.1 million in trans ortation fundin over afive- ear eriod.
City Clerk's Office
Sign-Offs•
Department Director Assis nt City Manager 'ty Manager
KC JMG
~- u
l 1/ 1 I ~! Y 1(6 EAC H A~ DA ITEM G ~~
SATE
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachH.gov
MEMO #
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commis ' n
FROM: Jorge M. Gonzalez, City Manager
DATE: September 15, 2010
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, URGING THE MIAMI-DADE BOARD OF
COUNTY "COMMISSIONERS TO REJECT THE COUNTY MANAGER'S
PROPOSAL TO FUND THE PEOPLE'S TRANSPORTATION PLAN SURTAX
TO CITIES INCORPORATED AFTER 2002 FROM THE GROWTH OF THE
EXISTING CITIES' 20% SHARE, ALSO KNOWN AS THE "HOLD-
HARMLESS OPTION" AND URGING THE MIAMI-DADE BOARD OF
COUNTY COMMISSIONERS TO DIRECT THE COUNTY ADMINISTRATION
TO PREPARE A PLAN TO FUND THE NEWLY INCORPORATED CITIES
FROM THE COUNTY'S 80% SHARE, AS AGREED TO IN MIAMI-DADE
COUNTY ORDINANCE N0.02-116.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, EXPRESSING SUPPORT FOR THE CITIES
OF MIAMI GARDENS, DORAL, AND CUTLER BAY, AND URGING THE
MIAMI-DADE COUNTY BOARD OF COUNTY COMMISSIONERS TO
PROVIDE THESE THREE CITIES WITH THEIR RIGHTFUL SHARE OF
PEOPLE'S TRANSPORTATION PLAN SURTAX FUNDING FROM THE
COUNTY'S 80% SHARE OF THE SURTAX, AS ORIGINALLY NEGOTIATED
IN GOOD FAITH AND AGREED TO BY MIAMI-DADE COUNTY IN 2002,
AND AS CURRENTLY REQUIRED BY MIAMI-DADE COUNTY ORDINANCE
NO. 02-116.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, INITIATING CONFLICT RESOLUTION PROCEDURES
PROVIDED BY SECTION 164.1052 OF THE FLORIDA STATUTES, PRIOR
TO INITIATING LITIGATION AGAINST MIAMI-DADE COUNTY WITH
REGARD TO MIAMI-DADE COUNTY'S ADOPTION ON FIRST READING, OF
AN ORDINANCE IMPLEMENTING THE "HOLD-HARMLESS OPTION" TO
PROVIDE CITIES INCORPORATED AFTER 2002 THEIR SHARE OF THE
PEOPLE'S TRANSPORTATION PLAN SURTAX FROM THE PRE-EXISTING
CITIES 20% SHARE OF THE SURTAX.
ADMINISTRATION RECOMMENDATION
Adopt the Resolutions.
Commission Memorandum
September 15, 2010
People's Transportation Plan -Proposed Changes
BACKGROUND
In 2002, Miami-Dade County voters approved the PTP and ahalf-cent sales tax surtax
to be used for the enhancement of transit and transportation in Miami-Dade County.
Previous efforts to implement such a tax had been defeated by the voters, and then-
Mayor Alex Penelas worked in good faith with municipal leaders to develop arevenue-
sharing concept that could be supported by the cities in Miami-Dade County. It is
common knowledge that, without support from the municipal leadership in Miami-Dade
County, the ballot question most likely would have failed. The agreed-upon proposal
provided that 20% of the revenue generated by the half penny sales tax would be
distributed to the cities in existence at the time the tax was approved.
On July 9, 2002, the Board of County Commissioners (BCC) adopted Ordinance 02-116,
which expressly states that 20% of the proceeds must be distributed solely among the
existing cities. The Ordinance specifically states that newly incorporated municipalities
will have the right to negotiate with the County for their pro rata share of the sales surtax
from the County's 80% portion, and that providing funding to new cities would not affect
the 20% share provided to municipalities that existed at the time the question was
approved by the voters. The record from that meeting of the BCC is clear: it was the
intent of the Board that new cities be funded from the County's 80% share of Surtax
funds since, in addition to countywide projects and services, that share also funds
projects in the unincorporated areas. Clarification on this issue was provided prior to
ordinance approval.
According to the Citizen's Independent Transportation Trust (CITY), Surtax proceeds for
Fiscal Year 2010 are $169.7 million, with a 20% municipal allocation of $33.94 million.
Miami Beach's share of this amount is $2,656,451. This funding has been used to fund
an array of projects to enhance transportation in our City, including funding for our South
Beach Local. As you may know, Miami Beach is a heavy transit user, and the city',S
voting precincts in 2002 reflected wide support for the Surtax. Since 2002, three
incorporations have been permitted in Miami-Dade County: Miami Gardens, Doral, and
Cutler Bay. These three cities, understandably, are anxious to claim their fair share of
the half penny tax, which totals $5.377 million combined for these three cities.
Municipalities currently receiving the surtax have consistently expressed support for
these three cities to receive funding as provided for by the County's own legislation.
Further, there has been concern with efforts that appear to attempt to create a rift
between cities on this issue.
In response to Miami-Dade County's failure to enter into interlocal agreements to provide
funding to new municipalities, as required by the PTP Ordinance, House Bill 1205 was
approved during the 2009 legislative session, requiring the County to renegotiate the
interlocal agreements for distribution of the Surtax proceeds every five years to include
any new municipalities. House Bill 1205 does not specify whether or not new
municipalities- should be funded from the 20% share; it is silent on the issue. For the
most part this legislation essentially required the County to do what the PTP ordinance
already required. However, the County is interpreting this legislation differently.
In response to continuing concerns, a working group was convened earlier this year by
Miami-Dade County with representatives of municipalities and the County to discuss this
issue. This group met on at least three occasions and discussed options proffered by the
County. There was no agreement by the cities on any one option proffered, only that
Commission Memorandum
September 75, 2010
People's Transportation Plan -Proposed Changes
further discussion should continue.
CURRENT PROPOSAL
On July 19, 2010, County Manager George Burgess issued a memorandum to the Board
of County Commissioners (BCC) informing the Board that he had directed staff to
prepare legislation for their consideration that "embraces ahold-harmless model." This
memo also states that the hold-harmless solution is likely to emerge as the only one that
has reasonable consensus both within County government and among the
municipalities. The County Manager's impression that this solution will have reasonable
municipal consensus is incorrect, as demonstrated by the letters (attached) in opposition
to the hold-harmless plan from the cities of Miami, Hialeah and Coral Gables, as well as
the attached letter from Mayor Bower.
In summary, the hold-harmless plan would fund the new cities with the growth in PTP
revenue that is expected in the coming years as the economy recovers. If that growth is
not sufficient in the early years to fully fund the new municipalities, the difference would
come entirely out of the County's share. After that point, all municipalities would begin
receiving funding from the new growth, but at a reduced share due to the inclusion of the
new cities. Although a moratorium on incorporations is currently in effect in Miami-Dade
County, the plan does not address how to address more cities should incorporations
begin again.
The name "hold-harmless plan" is misleading, since it only means that revenues to each
city will not go down. However, the 5-year impact to the City of Miami Beach could be
between $800,000 and $1.1 million from lost opportunity to access growth in revenue.
This is a very initial estimate; the Administration has initially reviewed the estimates
provided by the CITT, but is conducting a more thorough analysis.
Although the County Manager's memorandum alleges that the hold-harmless plan has
municipal consensus (which to our knowledge it does not), it also presents one final
option to the BCC, which is to exercise the BCC's power to reduce the 20 percent
municipal share effective upon the expiration of the existing interlocal agreements in
2012, and provide funding from the 20% municipal share to new municipalities.
On July 29, 2010, the CITT approved two resolutions (attached). The first expresses
support of an amendment to Ordinance 02-116 to provide for the funding of new
municipalities through the implementation of the hold-harmless option and the easing of
the municipal maintenance of effort requirement. The second urges the BCC to fund the
new municipalities from a county source other than the 20% municipal share until new
funding sources are identified or Ordinance 02-116 is amended. These CITT resolutions
are recommendations to the BCC.
On August 24, 2010, the City Commissions of the cities of Coral Gables and Hialeah
approved resolutions to initiate the conflict resolution procedure against Miami-Dade
County regarding this issue.
TIMELINE
Amendments to Ordinance 02-116 requires a 2/3 majority and must go through a
number of steps. The First Reading of the ordinance at the BCC implementing the hold-
harmless proposal can be scheduled for as early as September 10, consistent with a
Commission Memorandum
September 15, 2010
People's Transportation Plan -Proposed Changes
tentative timeline presented by the CITT. If approved, the proposal would be scheduled
for Public Hearing before the BCC's Transit, Infrastructure and Roads Committee with a
Second and Final Reading before the BCC thereafter.
CONCLUSION
The County Manager's proposal seeks to split 20% of the PTP revenue among an
increased number of cities which will be forced to share a smaller pool, while the County
will receive a greater share with fewer residents. This will be especially true if more
areas incorporate. The legislation approving the PTP sets forth the manner by which
new municipalities can receive PTP funds (through the County's 80% share), and the
City maintains that this remains the appropriate mechanism, consistent with the
promises made to municipalities in 2002 to obtain support for the PTP.
Subsequent correspondence between the County Mayor and attorneys for the three
newer municipalities indicates that the proposal is likely to move forward and references
the lack of formal action by the other municipalities.
The Administration recommends that the Mayor and City Commission adopt the
attached Resolutions, expressing support of the three new cities of Miami Gardens,
Doral and Cutler Bay and urging Miami-Dade County to fund these three new cities from
the County's 80% share, as agreed to by Miami-Dade County and as currently required
by Ordinance No. 02-116, and further express opposition to the "hold-harmless" option
proposed by the County Manager, and authorize the initiation of .conflict resolution
procedures provided by Chapter 164, Florida Statutes, should the Board of County
Commissioners adopt on first reading, an ordinance implementing the "hold-harmless"
option.
JMG/HF/kc
T:WGENDA12010\September 15\Consent\PTP Memo.docx