Broward County Commission Regular Meeting


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AI-24847 73.       
Meeting Date: 06/13/2017  
Director's Name: Bertha Henry
Department: County Administration  

Information
Requested Action
A. MOTION TO APPROVE amended Project Agreement between Broward County and the Florida Department of Transportation (FDOT) addressing updated project milestone dates and fiscal responsibility for various elements of the Wave Streetcar Project (Project); authorizing Mayor and Clerk to execute same; authorizing County Administrator or designee to take all administrative and budget actions necessary and approve any non-monetary amendments to the agreement subject to review and approval by the Office of the County Attorney; authorizing the County Administrator or designee to execute other project implementation documents consistent with the terms of the Project Agreement (Exhibit 1).

ACTION:  (T-12:19 PM)  Approved.  (Refer to minutes for full discussion.)  (See Yellow-Sheeted Additional Material, dated Tuesday, June 13, 2017, submitted at the request of Commissioner Holness.)
 
VOTE: 6-3.  Commissioner Holness, Rich and Udine voted no.

B. MOTION TO APPROVE State Infrastructure Bank (SIB) Loan Agreement between Broward County and FDOT in the maximum initial principal amount of $37,260,000 to secure for the Local Funding share of potential capital cost overruns on the Project; authorizing Mayor and Clerk to execute same; authorizing County Administrator or designee to take all administrative and budget actions necessary to implement same (Exhibit 2).

ACTION:  (T-12:19 PM)  Approved.  (Refer to minutes for full discussion.)  (See Yellow-Sheeted Additional Material, dated Tuesday, June 13, 2017, submitted at the request of Commissioner Holness.)
 
VOTE: 6-3.  Commissioner Holness, Rich and Udine voted no.

C. MOTION TO ADOPT Resolution No. 2017-355 authorizing and requesting FDOT to enter certain property owned by Broward County (County) to design and construct the Project; approving the Maintenance Memorandum Agreement related to portions of the Project located on FDOT property and the Wave Memorandum of Agreement related to portions of the Project on county property; Authorizing the Mayor and the clerk to execute same (Exhibits 3, 4 and 5). 

ACTION:  (T-12:19 PM)  Approved.  (Refer to minutes for full discussion.)  (See Yellow-Sheeted Additional Material, dated Tuesday, June 13, 2017, submitted at the request of Commissioner Holness.)
 
VOTE: 6-3.  Commissioner Holness, Rich and Udine voted no.

D. MOTION TO AUTHORIZE County Administrator to execute the Agreement to Transfer Funds among the various parties to the original Wave Partnership Agreement in substantially the same form as the attached; authorizing County Administrator or designee to take all administrative and budget actions necessary and approve any non-monetary amendments to the agreement subject to review and approval by the Office of the County Attorney (Exhibit 6).

ACTION:  (T-12:19 PM)  Approved.  (Refer to minutes for full discussion.)  (See Yellow-Sheeted Additional Material, dated Tuesday, June 13, 2017, submitted at the request of Commissioner Holness.)
 
VOTE: 6-3.  Commissioner Holness, Rich and Udine voted no.
Why Action is Necessary
Agreements of this nature require Board approval.
What Action Accomplishes
Provides final required approvals of various agreements necessary for FDOT, as the new Project sponsor, to begin the process of negotiating the Full Funding Grant Agreement with the Federal Transit Administration.
Is this Action Goal Related
Previous Action Taken
May 24, 2016 (Item No. 57)
Summary Explanation/Background
BROWARD COUNTY ADMINISTRATION AND THE TRANSPORTATION DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTIONS.

This item is in furtherance of the Board's Value of "[C]ooperatively delivering an efficient and accessible regional intermodal transportation system" and the attendant Goal to, "[I]mplement the Wave Streetcar project while seeking local, state, federal funding and public support for rail projects that connect to existing rail corridors, balancing ridership with community redevelopment demands." The Florida Department of Transportation (FDOT), District 4 was originally slated to receive additional funds for the Wave Streetcar Project (Project) within the state's Work Program beginning July 1, 2016; however, the funding was not programmed in the State's 2017 Fiscal Year. As a result, milestone dates within the previously-approved Project agreement have been amended to reflect the current project schedule. 

Additionally, on June 6, 2017, FDOT was notified in writing by the Federal Transportation Administration (FTA) that federal funding approvals for the Project were completed, allowing the FTA to begin the process of negotiating the Full Funding Grant Agreement (FFGA) with FDOT, District 4. FDOT, as the new Project sponsor, is required to have all local funding and partnership agreements in place prior to negotiating the FFGA. Furthermore, FDOT is scheduled to open the bid packets from the four submitters and let the Design-Build contract on August 2, 2017 in order to keep to the current, approved Project schedule. 

The Project's Phase 1, consists of a 2.8-mile circulator from the northernmost "loop" (along N.E. 6th Street) to the terminus at the Vehicle Maintenance Service Facility, just south of S.W. 17th Street. Phase 1 will include 13 stations and modern streetcar vehicles operating in a mixed-traffic environment for which the County will remain the ultimate owner and operator (just as we are under the current Wave Partnership Agreement, dated April 16, 2013). The alignment and scope remain consistent, including the County's requested safety and communication elements.

The Project's risk-loaded cost estimate is $195.3 or $22.6M above the original estimate, the local share of which remains $11,270,685. The allocations of responsibility for the near-term funding gap are consistent with the terms previously-agreed upon by the Board (May 24, 2016, Item No. 57) in Sections 4.1(a), (b), 4.2(a), (b). New elements of the Agreement relate to the allocation of responsibility for utility relocation issues, which may occur on county-owned property/streets and are subject to various county utility agreements. FDOT and FTA have taken the position that because County and City of Fort Lauderdale (City) agreements exist with utility owners that would control how utility relocation costs are paid, those same costs cannot be treated as project costs (see Section 1.01(19)). The County has long held the position that its permits, franchise agreements, and Florida Statutes require utility owners to move at their full and sole expense, and the utilities on County property affected by the Project have agreed to relocate. As such, the County does not believe it currently has a financial risk associated with utility relocation costs. Should State Statute be amended, financial responsibility could be shifted.

Under the terms of the Wave Project Agreement, the County agreed to enter into various Memoranda of Agreement related to Project operations on County and FDOT property and a SIB Loan Agreement to secure payment to FDOT of the local share (costs to be paid by the County, the City of Fort Lauderdale (City), and the Downtown Development Authority (DDA)) of any potential cost overruns related to the Project. The County has the option to directly pay cost overruns or allow FDOT to draw funds from the SIB Loan. 

The Agreements have been the subject of several rounds of negotiations between FDOT, the County, SFRTA, Downtown Development Authority (DDA), and the City (most recently in May 2016) to facilitate collaborative communication amongst the partners regarding Project financial responsibilities. County-requested changes and comments have been incorporated in the version of the Agreements attached, which have been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Annika Ashton, Office of the County Attorney, (954) 357-5728
Christopher Walton, Director or Transportation, (954) 357-8361
Gretchen Cassini, Assistant County Administrator, (954) 357-7579

Fiscal Impact
Fiscal Impact/Cost Summary:
The County has set aside approximately $4.5M of the project's capital cost estimate from gas tax revenues and other non-ad valorem sources for payment (Fiscal Year 2017) to FDOT. 

The total project cost of $195M contains a 14.9% overall Project Contingency.

The Design-Build Estimate, including vehicle procurement, is $146.6M of the $195M total. The County and FDOT are able to terminate the Project Agreement if bids come in at 125% above $146.6M, or $183.2M. Should the bids come in at, or above the estimate, but below $183.2M, FDOT will cover 50%, 25% will come from the City of Fort Lauderdale and 25% will come from the County (equaling $9.15M).

Finally, should catastrophic circumstances arise during construction (between 2018-2020), FDOT is liable for 50%, city assumes 25%, and DDA contributes nothing in 2018, but $3M in years 2019-2020, with the County responsible for any remaining shortfall during that time period.

Construction incentives are included in the Design Build costs; however, should construction complications arise, County financial exposure is mitigated in Fiscal Year 2021 above beyond because DDA assumes unlimited financial responsibility for the local share of cost overruns beyond 2021 per Sec. 4.2(b) ILA.
Attachments
Exhibit 1 - First Amendment to Project Agreement
Exhibit 2 - Wave SIB Loan Agreement
Exhibit 3 - Maintenance MOA
Exhibit 4 - Wave MOA
Exhibit 5 - Resolution
Exhibit 6 - Transfer of Funds
Additional Material - Information


    

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