Title
MOTION TO ADOPT PROPOSED RESOLUTION NO. 2025-R-29.
PROPOSED RESOLUTION NO. 2025-R-29 IS A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF PEMBROKE PINES, FLORIDA, APPROVING THE THIRD AMENDMENT TO THE ILA IN SUBSTANTIAL FORM AND AUTHORIZING THE EXECUTION OF THE THIRD AMENDMENT AND RESTATEMENT OF THE TRANSPORTATION SYSTEM SURTAX INTERLOCAL AGREEMENT WITH THE BROWARD COUNTY BOARD OF COUNTY COMMISSIONERS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. On June 5, 2018, the Broward County Board of County Commissioners (County) enacted Ordinance No. 2018-29, the Broward County Transportation Surtax Ordinance and voted to place a proposed surtax levy of one percent (1%) on the November 6, 2018, ballot. On August 21, 2018, the County approved a Transportation System Surtax Interlocal Agreement (Agreement) governing the distribution of transportation surtax proceeds and established a framework for prioritizing municipal projects. The Agreement created a minimum annual revenue guarantee for municipal projects of 10% minus the amount directly paid for Community Bus Service. The Agreement also defined eligible municipal project categories and identified the Broward Metropolitan Planning Organization(MPO) as the entity responsible for prioritizing municipal projects contained in the Plan. The prioritization of the Municipal projects would be based upon a project’s ability to alleviate traffic congestion and promote connectivity.
2. The City of Pembroke Pines City Commission approved the original Agreement on September 17, 2018. The Agreement became effective, as it was approved by 29 of 31 municipalities in 2018, with an additional municipality, Parkland, approving it in 2019.
3. On November 6, 2018, Broward County voters approved the Transportation Surtax. Collections of the Transportation Surtax began in January 2019. Broward County began receiving proceeds of the tax in March 2019.
4. Many of the projects originally submitted by Municipalities did not specifically promote connectivity or alleviate traffic congestion, but rather provided Rehabilitation and Maintenance of existing facilities. These projects may not rank well with other roadway projects and, as a result, may not receive funding. To address this concern and better-define the process of funding projects, the County approved a First Amendment to the Agreement (First Amendment) on June 11, 2019. The First Amendment shifted Rehabilitation and Maintenance projects from the MPO’s prioritization responsibility to that of Broward County in order to allow these projects to be evaluated separately and receive funding earlier in the Transportation Surtax Program.
5. Municipalities and the MPO considered the Second Amendment to and Restatement of the Transportation System Surtax Interlocal Agreement since it affected the timing of the MPO’s prioritization process as well as individual project funding agreements. The Second Amendment was approved by the City on February 17, 2021, and become effective after being signed by the County on March 19, 2021. The Municipalities who signed represent more than 50% of the County’s total population.
6. Based on lengthy collaboration and negotiation between representatives of Broward County and the Broward County City Managers’ Association (BCCMA), as representatives of the municipalities that are parties to the current Transportation System Surtax Interlocal Agreement, a new amended and restated Transportation System Surtax Interlocal Agreement (Transportation Surtax ILA) has been drafted for the Commission’s consideration (Exhibit 1). The Parties have negotiated general terms and conditions for a proposed third amendment to and restatement of the Transportation System Surtax Interlocal Agreement (“Transportation Surtax ILA”). The Motion presents the Transportation Surtax ILA to the City Commission for approval. The third amendment was approved in substantial form by the County Commission on June 10, 2025.
7. To become effective, the commissions/councils of municipalities with at least 50% of the County’s total population must approve the Transportation Surtax ILA along with the County.
8. The amended Transportation Surtax ILA does not modify the County’s existing Minimum Annual Guarantee commitment of 10% of net transportation surtax proceeds received each Fiscal Year.
9. The third amendment to the Surtax ILA in general makes the following revisions:
• Creates an annual formula allocation to each participating municipality for municipal sidewalk and road rehabilitation and maintenance projects
• Expands definitions of eligible uses of surtax funding to include micro-transit
• Establishes a Grant Match Program that allows municipalities to seek surtax funding as match to competitive funding programs for projects that have not received prior surtax awards
• Allows certain decorative and functional art elements in surtax-funded projects
• Permits revenue-generating parking structures, provided revenues are used for surtax-eligible purposes
• Eliminates prohibition on using surtax funds to maintain capital assets built with surtax funds (subject to ordinance change)
This amendment stops funding any new capital improvement projects and when current capital projects are completed, that funding will be available for surtax-eligible rehabilitation and maintenance projects and/or Micro-transit per the annual formula.
10. The priorities for the portion of the transportation surtax allocated to participating municipalities have also been modified to be based on a formula-based funding solely based on the percentage of centerline miles (as it relates to the total local centerline miles in the County) of municipally owned public roadways, without additional modifiers. Each time the Florida Department of Transportation releases updates to the centerline miles within Broward County and municipalities within the County, the formula-based funding will be adjusted accordingly.
11. If the Motion is approved, the City will approve the terms of the new Transportation Surtax ILA in substantially the form shown on Exhibit 1. The document is being transmitted to all Broward County municipalities through the BCCMA and the Broward League of Cities for the municipal elected bodies’ consideration. The agreement is being approved in substantially the form as shown on Exhibit 1, and the County Administrator is being authorized to make nonmaterial changes to the agreement based on any further municipal feedback provided changes do not increase the cost or risks to the County and are subject to further review and approval for legal sufficiency by the Office of the County Attorney.
12. As part of the existing interlocal agreement and the proposed Transportation Surtax ILA, municipalities enter into separate interlocal agreements with the County for things such as their community shuttle programs, capital projects, and rehabilitation and maintenance projects.
13. Based on preliminary estimates City could receive the following revenues over the next several years:
|
|
PRELIMINARY |
|
Fiscal Year |
Estimate |
|
2025-26 |
3,358,551 |
|
2026-27 |
1,500,000 |
|
2027-28 |
1,732,319 |
|
2028-29 |
1,964,638 |
|
2029-30 |
2,196,957 |
|
2030-31 |
2,429,276 |
|
2031-32 |
2,661,594 |
|
2032-33 |
2,893,913 |
|
2033-34 |
3,126,232 |
|
2034-35 |
3,358,551 |
|
10 Year Estimate |
25,222,031 |
RECOMMENDATION
Staff recommends approval of the Third Amendment to and Restatement of the Transportation Surtax Interlocal Agreement in substantial form between the Broward County Board of County Commissioners, participating municipalities, and the Broward County City Managers Association, Inc. (BCCMA), and authorizion to staff to transmit the Third Amendment to the Agreement to Broward County.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Based on preliminary estimates, the city will receive $3.3 million in fiscal year 2025-26; an average of $1.7 million through fiscal year 2028-29; and an average $2.7 million through 2034-35.
b) Amount budgeted for this item in Account No: The City will workshop with the Commission to establish a priority for projects in Fund 101 -BC Transportation Surtax .
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project: Not Applicable.
e) Detail of additional staff requirements: Not Applicable.