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2012-055-1650 - CITT Settlement 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 City of Miami Gardens Agenda Cover Memo Council Meeting Date: March 28, 2012 Item Type: (Enter X in box) Resolution Ordinance Other x Fiscal Impact: (Enter X in box) See Analysis Yes No Ordinance Reading: (Enter X in box) 1st Reading 2nd Reading x Public Hearing: (Enter X in box) Yes No Yes No Funding Source: None at this time Advertising Requirement: (Enter X in box) Yes No Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #: X Sponsor Name Danny Crew Department: City Manager Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, APPROVING A SETTLEMENT IN THE CASE OF CITY OF MIAMI GARDENS VS. MIAMI DADE COUNTY, FLORIDA; CASE NUMBER 11-00822 CA 11; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AND ATTEST RESPECTIVELY THAT CERTAIN SETTLEMENT/INTERLOCAL AGREEMENT IN SUBSTANTIAL FORM AS THAT AGREEMENT ATTACHED HERETO AS EXHIBIT “A”; PROVIDING FOR INSTRUCTIONS TO THE CITY CLERK; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE Staff Summary: This resolution provides for the approval of the Settlement Agreement and Interlocal Agreement (“Agreement”) resolving the litigation with the County concerning the County’s failure to fund the City’s share of surtax proceeds. The following is a summary below of the major provisions contained in the Agreement. The full Agreement is attached for the members to reference all of the various provisions. This agreement is in line with previous direction given staff. Below is a summary prepared by our Counsel, with additional comments by staff. The Agreement Terms ADD-ON ITEM RESOLUTION CITT Settlement 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 The Agreement provides that the City will receive its pro‐rata share of surtax revenue for fiscal years 2009‐2010, 2010‐2011 and 2011‐2012. The payment will be made in the form of a lump sum payment which may be applied in the City’s sole and exclusive discretion without any limitation by the constraints of the Interlocal Agreement, and is intended to reimburse the City for eligible expenses incurred since 2003. It is however, and subject to spending limitations contained in Florida Statute Section 212.055. In addition, the Agreement contains a provision giving the City a right to the same terms any other eligible city is able to negotiate with the County after the effective date of this agreement. In exchange, the City will provide a release and voluntarily dismiss the pending litigation. Payment Once the Agreement becomes effective, the City then has ten days to execute a release which is to be held in trust until the lump sum payment is received. Within thirty days of the County’s receipt of the release, the City is to receive its pro‐rata share for the three fiscal years 2009‐2010, 2010‐2011 and 2011‐2012. After receiving the lump sum payment, the City must file a notice of voluntary dismissal with prejudice of the case. Timeframe The Agreement becomes effective ten days after the date of its adoption and remains in force through the end of the fiscal year. The City has ten days of the Agreement’s effective date to deliver to the County an executed release. The County has thirty days from the receipt of the release to make the lump sum payment to the City. The City has two days after receiving the lump sum payment to file the notice of voluntary dismissal. Over the past few weeks, staff has begun preparing a record of those projects that will qualify for reimbursement from these funds (i.e. transportation‐related projects paid for from non‐transportation funds). The current breakdown is that approximately 65% of the funds expended over the past 8 years were from non‐transportation sources. Based on preliminary calculations of our per‐capita share, this would roughly translate to $7.5 million to the General Fund and $4 million to the Transportation Fund. The County will be providing the exact amount prior to the City Attorney dismissing the lawsuit. Upon receipt of the funds, I will bring to Council a recommended allocation and use‐of‐funds resolution. Recommendation: That City Council approve the resolution approving the settlement agreement/Interlocal Agreement with Miami0‐ Dade County in the CITT matter. Attachment: Resolution #1711045 v1 CITY OF MIAMI GARDENS vs. MIAMI–DADE COUNTY, FLORIDA, CASE NO. 11-00822 CA 11 City of Miami Gardens Settlement Analysis Introduction Before the City Commission for approval is the Settlement Agreement and Interlocal Agreement (“Agreement”) that resolves the litigation with the County concerning the County’s failure to fund the City’s share of surtax proceeds. In order to aid the members of the Commission, we provide a summary below of the major provisions contained in the Agreement that will settle the above-referenced litigation pending in Miami-Dade-County Circuit Court. The Agreement is attached for the members to reference all of the various provisions. The Agreement Terms The Agreement provides that the City will receive its pro-rata share of surtax revenue for fiscal years 2009-2010, 2010-2011 and 2011-2012. The payment will be made in the form of a lump sum which may be applied in the City’s sole and exclusive discretion without any limitation by the constraints of the Agreement and is intended to reimburse the City for eligible expenses incurred since 2002 and subject to Florida Statute Section 212.055. In addition, the Agreement contains a provision giving the City a right to the same terms any other eligible city is able to negotiate with the County after the effective date of this agreement. In exchange, the City will provide a release and voluntarily dismiss the pending litigation. Payment Once the Agreement becomes effective, the City then has ten days to execute a release which is to be held in trust until the lump sum payment is received. Within thirty days of the County’s receipt of the release, the City is to receive its pro-rata share for the three fiscal years 2009-2010, 2010-2011 and 2011-2012. After receiving the lump sum payment, the City must file a notice of voluntary dismissal with prejudice of the case. Timeframe The Agreement becomes effective ten days after the date of its adoption and remains in force through the end of the fiscal year. The City has ten days of the Agreement’s effective date to deliver to the County an executed release. The County has thirty days from the receipt of the release to make the lump sum payment to the City. The City has two days after receiving the lump sum payment to file the notice of voluntary dismissal.