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HomeMy WebLinkAboutReso 2007-1046 RESOLUTION NO. 2007- ~ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING AN ADDENDUM TO SECOND INTERLOCAL AGREEMENT WITH MIAMI-DADE COUNTY FOR THE DISBURSEMENT OF FLORIDA POWER AND LIGHT (FPL) FRANCHISE FEES, ATTACHED HERETO AS EXHIBIT "A"; AUTHORIZING THE CITY MANAGER TO EXECUTE SAID ADDENDUM TO SECOND INTERLOCAL AGREEMENT AND TO DO ALL THINGS NECESSARY TO EFFECTUATE THE TERMS OF THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, pursuant to Resolution No. 99-115 approved on January 21, 1999, the City Commission of Sunny Isles Beach entered into an Interlocal Agreement with Miami-Dade County to provide the City its share of revenues generated from the payment of FPL franchise fees for the use of rights-of-way within the City; and WHEREAS, Miami-Dade County and the City of Sunny Isles Beach have agreed to amend the Interlocal Agreement to state a methodology whereby the amount of Franchise Fees paid by FPL to the County for rights to utilize public rights-of-way located within the City will be subsequently remitted annually by the County to the City of Sunny Isles Beach beginning in Fiscal Year 2005-2006; and WHEREAS, Miami-Dade County and the City further agree that the methodology to determine the amount of City fees to be remitted annually by the County should be applied retroactively for Fiscal Years 2001/2002, 2002-2003, and 2003-2004; and WHEREAS, the County and the City have determined that the retroactive application of the methodology agreed to by the parties have resulted in additional City fees that should be remitted by the County to the City in the amount of Seven Hundred Eight-two Thousand Eight Hundred Eighty-Six Dollars and Twenty-One Cents ($782,886.21), attached hereto as Exhibit "A" . NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of Addendum to Second Interlocal Agreement. The Addendum to Second Interlocal Agreement with Miami-Dade County for the disbursement of Florida Power and Light (FPL) franchise fees, attached hereto as Exhibit "A", be and the same, is hereby approved. Section 2. Authorization of City Manager. The City Manager is hereby authorized to execute said Agreement and to do all things necessary to effectuate the terms of this Resolution. Section 3. Effective Date. This Resolution will become effective upon adoption. PASSED AND ADOPTED this 15th day of February 2007. R2007- Addendum To Second Interlocal Agmt FPL.Doc Page 1 of2 " " to' ^. . - I . ATTEST';': " . . .r~. 0 . 4~ '.. .. , ., ~.', \' " '.' ~":: I , ~~ ~ Jane'A. Hines, CrY1C, City Clerk . : (,). ,r I ^ . .; :'". ~""- Vote: 5...() Mayor Ede1cup Vice Mayor Thaler Commissioner Brezin Commissioner Goodman Commissioner Iglesias R2007- Addendum To Second Interlocal Agmt FPL Page 2 of2 Moved by: ~6~Goo~Yt1~ Seconded by: CO~ I(;L~~IM V(Y es) V (Yes) V(Y es) V(Yes) V (Yes) _(No) _(No) _(No) _(No) _(No) ADDENDUM TO SECOND INTERLOCAL AGREEMENT This Addendum to the Interlocal Agreement is made and entered into this /S ~ay of fJd \( r ;I' 20ci6)- by and between Miami-Dade County, a political subdivision of the State of Florida (the "County"), and the City of Sunny Isles Beach, a Florida municipality (the "City"). WHEREAS, the County and the City, (collectively, the "Parties"), have reviewed the Interlocal Agreement entered into on January 21, 1999 and have agreed to amend it to state a methodology to determine the amount of Franchise Fees paid by Florida Power and Light Company (FP&L) to the County for rights to utilize public rights-of-way located within the City that should be subsequently remitted annually by the County to the City (the "City Fees") beginning in Fiscal Year 2005-2006 (which constitutes the FP&L reporting period of the calendar year 2005 and continuing; and WHEREAS, the County and the City agree that the methodology to determine the amount of City Fees to be remitted annually by the County should be applied retroactively for Fiscal Years 2001-02, 2002-03 and 2003-04; and WHEREAS, the County and the City have determined that the retroactive application of the methodology agreed by the Parties has resulted in additional City Fees that should be remitted by the County to the City. NOW, THEREFORE, in consideration of the mutual benefits derived therefrom, the Parties covenant and agree to amend the lnterlocal Agreement dated January 21, 1999 as follows: 1. OBUGA TIONS OF THE COUNTY 1 .1 . The County shall: 1.1.1 In addition to the City Fees previously paid by the County to the City for Fiscal Years 2001-02, 2002-03, and 2003-04 (the "Historical Period"), the County agrees to pay the City $782,886 in additional City Fees for such Historical Period. Such payment EXHIBIT "A" SIB of additional City Fees shall be paid by the County in three annual installments of $260,962 per year during the three fiscal years 2005-06, 2006-07 and 2007-08). The City agrees that these payments will satisfy any outstanding payment liability of the County for the Historical Period and for fiscal year 2004-2005 and that no additional City Fees will be due to the City upon the satisfactory payment by the County. 1.1.2 Beginning with the remittance of the City Fees for the Fiscal Year 2005-2006 which are to be paid on or before August 15,2006 and for so long as the Franchise Ordinance is in effect and enforceable, the County shall determine the amount of the City Fees to be remitted by the County to the City utilizing the methodology as outlined in this amendment. Regarding the determination of the Franchise Fees to be submitted to the municipalities of A ventura, Key Biscayne, Pinecrest, Sunny Isles Beach, Palmetto Bay, Doral, Miami Gardens and Miami Lakes (collectively, the "Cities") by the County, the following methodology shall be utilized, which is also illustrated in Table 1 for the determination of the Franchise Fees to be remitted by the County to each City for the Fiscal Year 2004-05, as follows: a. Detennine from FP&L's records the total amount due to the Cities, Unincorporated Miami-Dade County Service Area (UMSA), and any new municipality which is created after the effective date of this addendum but before the expiration of the Franchise Ordinance (collectively, the "Recipients") based on six percent of FP&L gross revenues attributable to service being provided within the corporate limits and service area of the Recipients for the respective calendar year ("Gross Revenues"). See Column A.I b. Subtract from Gross Revenues the amount of municipal real and personal property taxes paid by FP&L on its real and personal property within the respective corporate limits and service areas of the Recipients during the respective calendar year ("Municipal Taxes"). See Column B. c. Subtract from the Gross Revenues the total Countywide 1 References to Columns in paragraph 1.1.9 relate to columns in Table 1, which illustrates the application of the fommla in paragraph 1.1.2. for the Fiscal Year 2004-05. 2 SIB operating and debt service, Fire, Library, Florida Inland Navigation, and Everglades Project, South Florida Water Management District property taxes and other applicable taxes ("Regional Taxes") paid by FP&L on its real and personal property within the respective corporate limits and service areas of the Recipients excluding any Regional Taxes paid on real and property associated with the Turkey Point and Cutler Power Generating Facility properties. See Column C. d. Determine the difference of the Gross Revenues less the Municipal Taxes and the Regional Taxes as defined above in items band c (Adjusted Franchise Fees"). See Column D. e. Subtract from the Adjusted Franchise Fees for each City the equivalent Regional Taxes paid by FP&L for property in cities which have a separately executed franchise agreement with FP&L which was in effect as of the date of the Franchise Ordinance and the Regional Taxes paid by FP&L on Turkey Point and Cutler Power Generating Facilities that is recognized as a deduction by FP&L for the remittance of Franchise Fees to the County apportioned among the Recipients and based on the percent of each recipient's Adjusted Recipient Revenue to the total Adjusted Recipient for all recipients, (Prorated Amount). See Column E. f. The amount of the Franchise Fees to be paid by the County to the Cities shall be determined by subtracting from the Adjusted Recipient Revenue the apportioned Regional Taxes paid by FP&L on property in cities which have a separately executed franchise agreement as referenced in item e above (the Net Franchise Fees). See Column F. TABLE 1 A B C 0 E F Gross Municipal Regional Taxes Subtotal Prorate Old NEW METHOD: Revenue Taxes (without PP) (without PP) Cities and PPs NEW METHOD Key Biscayne 1,052,948.54 (30,067.17) (65,751.72) 957,129.65 (183,488.76) 773,640.89 Aventura 2,935,149.30 (52,721.24) , (249,678.96) 2,632,749.10. (504,717.28) 2,128,031.82 Pinecrest 1,410,244.51 (26,993&!L_1115,092~g) :~J)6~158.10. ~43,115.191 1,025,042.90 Sunny Isles 1,154,787.41 (1(~~:~~~}- giH~m--~:i~~;r I = ~~ ~~:~~~~~} 782,886.21 Palmetto Bay 1,318,971.46 754,748.76 Doral 2,183,185.46 (28,207.91) (115,562,24) 2,039,415.31 (390,970.85) 1,648,444.47 Miami Gardens 3,559,496.12 (57,675.45) (166,726,69) 3,335,093.98 (639,361.93) 2,695,732.04 Miami Lakes 1,884,173.36 (44,918.20) (162,685.02) 1,676,570.14 I (321,410.77) 1,355,159.37 UMSA 54,913,188.18 (4,093,088.04) . (8,602,362.23) 42,217,737.9-J-k(8,093,449.45) 34,124,288.46 Total 70,412,144.34 (4,492,244.38) . (9,890,721.27) 56,029,178,69 (10,741,203.77) 45,287,974.92 3 SIB 1.1.4 Following request of the City, Coincident with the annual calculation of the Net Franchise Fees to be remitted to the City py the County, the County will provide all supporting documentation supporting its calculation of Net Franchise Fees for each of the Recipients, including source document~, including when requested, for each of the local governments shown on Table 1 the following: i) Gross Revenues; ii) Municipal Taxes; iii) Regional Taxes by individual tax component; iv) the determination of the Regional Taxes for all cities which have a separately executed franchise agreement with FP&L which was in effect as of the date of the Franchise Ordinance by individual tax component by individual municipality reflected in the calculation and the Regional Taxes paid by FP&L on Turkey Point and Cutler Power Generating Facilities; v) the percentage for allocation of the Prorated Amount; and vi) the calculation of the Net Franchise Fees determined on the same basis as discussed above and shown on Table 1. 1.1.8 To the extent that the County does not pay the Net Franchise Fees to the City by August 15th of each respective year, an interest charge for each day that payment is delinquent shall accrue. The interest rate will be based on the monthly 30-day investment rate published by the Florida State Board of Administration for the Local Government Investment Pool (SBA) for each month that payment is considered delinquent based on the number of days the payment is delinquent in such month. The delinquent payment will be paid by the County to the City and will be in addition to the payment of the Net Franchise Fees. 2 Source documents include (I) FP&L worksheets, which include the franchise fee revenue by each jurisdiction, (2) Property Appraiser records providing the real and personal taxable values for FP&L within each municipality, (3) Property Appraiser records providing the real and personal taxable values for the Cutler and Turkey Point power plants, and (4) the Miami-Dade County spreadsheet calculating the franchise fee spreadsheets. 4 S~B IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed on their behalf as of the date first above written. ," '.. .. I >, 1(> '. f. .... , . , AtTEST: ,~. '~", '. ~". .'to< "A' ~.'~ ,',: " i' \ ;" '~.;';' d""~ . ' Jane Hin~s, CMC, City' Clerk .. / ..~ ;-:. ~. Jt '.. APPROVEUAS TO FORM AND LEGAL MIAMI-DADE COUNTY, a political subdivision of the State of Florida Attest: o....~~F:~~fUVIN, Clerk . (jOMM! n I,'" ..0 \J&~... ....~~ ..i!: 'VAD~ .' eft' : <: -0_ : ;:) COUNT to ...- I.V ( o . . . . .... **ilt ,..- . ......,6.. By its Board of County Commissi APPROVED AS TO FORM AND LEGAL SUFFICIENCY: c~ County Attorney 5 S'B MIAMI ~ ADA Coordination Agenda Coordination Animal Services Art in Public Places Audit and Management Services Building Building Code Compliance Business Development Capital Improvements Citizens' Independent Transportation Trust Commission on Ethics and Public Trust Communications Community Action Agency Community & Economic Development Community Relations Consumer Services Corrections & Rehabilitation Cultural Affairs Emergency Management Employee Relations Empowerment Trust Enterprise Technology Services Environmental Resources Management Fair Employment Practices Fire Rescue General Services Administration Historic Preservation Homeless Trust Housing Agency Housing Finance Authority Human Services Independent Review Panel International Trade Consortium Juvenile Services Medical Examiner Metro-Miami Action Plan Metropolitan Planning Organization Park and Recreation Planning and Zoning Police Procurement Management Property Appraisal Public Library System Public Works Safe Neighborhood Parks Seaport Solid Waste Management Strategic Business Management Team Metro Transit Task Force on Urban Economic Revitalization Vizcaya Museum And Gardens Water & Sewer Aviation Elections Finance Strategic Business Management 111 NW I st Street · 22nd Floor Miami, Florida 33128-1994 T 305-375-5143 F 305-375-5168 RECE~VE[) DEe I 6 2007 miamidade.gov November 29, 2007 011y of SUnny Isles Beacn Qt/!Qo olll1e CIty Clerk Priscilla Walker, CMC Deputy City Clerk City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, FL 33160 Re: FPL Franchise Fee Agreement Dear Mrs. Walker, Enclosed you will find an original executed copy of the Addendum to the Second Interlocal Agreement between Miami-Dade County and the City of Sunny Isles Beach for the distribution of Electrical Franchise Fees. This addendum outlines the process and methodology for the calculation distribution of Electrical Franchise Fees to the City of Sunny Isles Beach. If you have any questions please feel free to contact me at (305) 375-1543. c: Daniel Alfonso, Operating Budget Coordinator enclosure ri.INY Ig— City Commission e City f Sunny sles each� y Y \orman S.Edelcup,Afm�ar\., 18070 Collins Avenue Roslyn Brezin, vire Mayor n Lewis J.Thaler,Convnissioner �■ Sunny Isles Beach, Florida 33160 Germ Goodman.Commissioner (305)947-0606 City Hall Danny Iglesias,Commissioner _ /'// (305)949-31 13 Fax 'y r9➢' a�`o .T (305)947-2150 Building Department A.John Szerlag,City Manager• F t o� Hans Minot,Ciro Attorney c,r Txo fr (305)947-5107 fax Jane A.Hines,City Clerk Of stork MEMORANDUM To: Honorable Mayor and City Commission Via: A. John Szerlag, City Manager FROM: Doug Haag, Assistant City Manager - Finance U"ICk. DATE: February 15, 2007 RE: SECOND INTERLOCAL AGREEMENT WITH MIAMI-DADE COUNTY RE: FPL FRANCHISE FEES RECOMIMENDATION: This resolution is presented for your consideration and approval of the attached Interlocal Agreement addendum with Miami-Dade County. BACKGROUND: The attached agreement represents resolution of a dispute between several area cities and Miami- Dade County. In 2002, when the county issued the FPL franchise fee payment to the cities for FY 2001-02, the amounts were reduced compared to the prior year despite tremendous growth in the incorporated cities involved. It was subsequently determined that the County budget officials unilaterally decreased the amounts based on their review of the methodology used by the County to calculate payments of the franchise fees to the cities. After several unsuccessful meetings with the County to resolve the issue, the cities of Key Biscayne, Miami Lakes, Pinecrest, Aventura and Sunny Isles Beach retained the firm of Public Resources Management Group, Inc. to audit the methodology used by the County. The report issued in 2005 revealed that the County methodology was in error and not in compliance with the interlocal agreements in place at that time. The Interlocal Agreement you have before you represents the final settlement of this issue. The agreement includes a) the County agreeing to reimburse each city over a three year period for the difference in the disputed franchise free calculations in the past. This will result in annual payments to the City of Sunny Isles Beach in the amount of$260,962 for a total of$782,886 for the next three years, and b) a new methodology to calculate the franchise fees to the satisfaction Agenda Item ' 0 Date 2—IS—o7 2/2/2007 Page 2 of the cities which will result in still more revenues to the City of Sunny Isles Beach on an annual basis.