AGENDA REQUEST AGENDA ITEM NO: January 16, Unfinished Business VI.1.
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1 AGENDA HEADING: Unfinished Business AGENDA REQUEST COMMISSION MEETING DATE: January 16, 2018 AGENDA ITEM NO: BY Financial Administration Kelly Strickland Financial Administration Director Strickland and City Attorney Fournier Originating Department SUBJECT: Department Head Presenter Adoption Re: Proposed Resolution No. 17R-2671 releasing Committed Fund Balance in the City of Sarasota's Tourist Development Tax Special Revenue Fund in the Amount of $2,500,000 VI.1. COMMISSION PRIORITIES: Infrastructure EXPLANATION: (see next page for additional explanation) On February 21, 2017, The City Commission committed $2,500,000 of the Tourist Development Tax, Special Revenue Fund to serve as an insurance policy to mitigate any negative impact to Siesta Key as a result of the Lido Key Beach Nourishment and Groins Project. Upon adoption of Resolution 17R-2671, the City Commission releases the $2,500,000 of committed fund balance in the Tourist Development Tax Special Revenue Fund. As a Special Revenue fund these funds are restricted to Beach Re-nourishment activities. ADMINISTRATION'S RECOMMENDATION: Motion to Adopt Resolution 17R-2671 APPROVAL SUMMARY: Approval Department Head Approval Legal Review / Approval Deputy City Manager Approval City Manager Approval City Auditor and Clerk Approval Required Date Completed Y 01/08/2018 Y 01/08/2018 Y 01/08/2018 Y 01/08/2018 Y 01/09/2018 Completed By Kelly Strickland Robert Fournier John Lege John Lege Pamela Nadalini Status
2 ADDITIONAL EXPLANATION: AGENDA REQUEST On December 22, 2016, the State of Florida Department of Environmental Protection (FDEP) issued a Notice of Intent to issue a permit authorizing the U.S. Army Corps of Engineers and the City of Sarasota to implement a proposed beach restoration project known as the Lido Key Beach Nourishment and Groins project. The Notice of Intent to issue the permit has been challenged by three separate petitions which have been consolidated and are now pending before the State of Florida Division of Administrative Hearings (DOAH), and in an effort to address concerns expressed by the petitioners in the proceedings now pending before DOAH and in an effort to resolve the dispute over the issuance of the permit, the City Manager recommended to the City Commission that $2,500,000 be set aside and committed to function as an insurance policy to be used to mitigate any adverse impact that might result from the Project, resulting in the adoption of Resolution 17R-2626 on February 21, This resolution established a committed fund balance of $2,500,000 in the City of Sarasota's Tourist Development Tax Special Revenue Fund. The adoption of Resolution 17R-2626 and the establishment of the committed fund balance classification has not resulted in a settlement of the disputed issues now pending before the DOAH. Resolution 17R-2626 provides that once the committed fund balance constraint was imposed that it could only be released by subsequent action of the City Commission and did not provide for an automatic expiration of the fund. The City Commission now desires to release the committed fund balance from constraints imposed by Resolution 17R Upon adoption of Resolution 17R-2671, the City of Sarasota releases the $2,500,000 committed fund balance in the Tourist Development Tax Special Revenue Fund from the constraints imposed by the adoption of Resolution 17R-2626 on February 21, ADDITIONAL ADMIN RECOMMENDATION: FUNDING SOURCE: AMOUNT: HOUSING IMPACT (Per House): NEW CONSTRUCTION: REHABILITATION: SUPPORT DEPARTMENTS: $ 0 $ 0 Financial Administration - Kelly Strickland City Attorney - Robert Fournier Development Services - Timothy Litchet Public Works - Doug Jeffcoat 2
3 AGENDA REQUEST COMMISSION ACTION: Final Action Motion: Motion By: AGENDA DISPOSITION Second By: Vote: 3
4 RESOLUTION NO. 17R-2671 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SARASOTA, FLORIDA, RELEASING FUNDS PREVIOUSLY SET ASIDE AND COMMITTED TO MITIGATE ANY UNANTICIPATED ADVERSE IMPACT TO SIESTA KEY POTENTIALLY RESULTING FROM THE LIDO KEY; BEACH NOURISHMENT AND GROINS PROJECT AND PROVIDING THAT SAID FUNDS SHALL BE RELEASED FROM THE COMMITTED FUND BALANCE CLASSIFICATION TO AGAIN BE INCLUDED WITH THE REMAINDER OF THE TOURIST DEVELOPMENT TAX SPECIAL REVENUE FUND; PROVIDING FOR READING BY TITLE ONLY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on December 22, 2016, the State of Florida Department of Environmental Protection (FDEP) issued a Notice of Intent to Issue a permit authorizing the U.S. Army Corps of Engineers and the City of Sarasota to implement a proposed beach restoration project known as the Lido Key Beach Nourishment and Groins Project (the "Project"); and, WHEREAS, the Notice of Intent to issue the permit has been challenged by three separate petitions which have been consolidated and are now pending before the State of Florida Division of Administrative Hearings (DOAH); and, WHEREAS, in an effort to address concerns expressed by the petitioners in the proceedings now pending before DOAH and in an effort to resolve the dispute over the issuance of the permit, the City Manager recommended to the City Commission that Two Million Five Hundred Thousand Dollars ($2,500,000.00) be set aside and committed to function as an insurance policy to be used to mitigate any adverse impact that might result from the Project; and, WHEREAS, acting upon the recommendation of the City Manager, the City Commission adopted Resolution 17R-2626 on February 21, 2017; and, WHEREAS, Resolution 17R-2626 established a committed fund balance of $2,500, in the City of Sarasota's Tourist Development Tax Special Revenue Fund; and, WHEREAS, the adoption of Resolution 17R-2626 and the establishment of the committed fund balance classification has not resulted in a settlement of the disputed issues now pending before DOAH; and, Page 1 of 5
5 WHEREAS, Resolution 17R-2626 provides that once the committed fund balance constraint was imposed that it could only be released by subsequent action of the City Commission and did not provide for an automatic expiration of the fund; and, WHEREAS, the City Commission now desires to release the committed fund balance from the constraints imposed by Resolution 17R NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SARASOTA, FLORIDA: Section 1. The City Commission hereby releases the $2,500, committed fund balance in the Tourist Development Tax Special Revenue Fund from the constraints imposed by the adoption of Resolution 17R-2626 on February 21, Section 2. Upon the adoption of this Resolution, the previously committed fund balance of $2,500, shall be restored to its status prior to the adoption of Resolution 17R-2626 and shall be included in the City's Fund Balance and Reserves for use in the event of an emergency. Section 3. This Resolution shall take effect immediately upon adoption. ADOPTED by the City Commission of the City of Sarasota, Florida upon reading by title only, after posting on the bulletin board at City Hall for at least three (3) days prior to adoption, as authorized by Article IV, Section 2 of the Charter of the City of Sarasota this day of January CITY OF SARASOTA Shelli Freeland Eddie, Mayor Page 2 of 5
6 Attest: Pamela M. Nadalini, CMC, MBA City Auditor and Clerk Shelli Freeland Eddie, Mayor _ Liz Alpert, Vice Mayor Commissioner Jen Ahearn-Koch Commissioner Hagen Brody Commissioner Willie Charles Shaw cityatty/resolutions/2017/ (release TDT funds)rmf/lg/ Page 3 of 5
7 RESOLUTION NO. 17R-2626 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SARASOTA, FLORIDA, ESTABLISHING COMMITTED FUND BALANCE IN THE CITY OF SARASOTA'S TOURIST DEVELOPMENT TAX SPECIAL REVENUE FUND; PROVIDING FOR READING BY TITLE ONLY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Government Accounting Standards Board (GASB) has issued Statement No. 54, establishing a hierarchy clarifying the constraints that govern how a government entity can use amounts reported as fund balance; and WHEREAS, the City Commission is the highest level of decision-making authority and has the authority to commit, assign, or evaluate existing fund balance classifications and identify the intended uses of committed or assigned funds; and WHEREAS, the committed fund balance classification reflects amounts subject to internal constraints self-imposed by the City Commission; and WHEREAS, once the committed fund balance constraints are imposed, it requires the constraint to be removed only by the City Commission; and WHEREAS, on December 22, 2016, the Florida Department of Environmental Protection (FDEP) issued its Consolidated Notice of Intent to Issue the Permit authorizing the U.S. Army Corps of Engineers and the City of Sarasota to implement a beach restoration project known as the Lido Key Beach Nourishment and Groins Project ("Project"); and WHEREAS, the City Commission has determined it will commit $2,500,000 of fund balance in the Tourist Development Tax Special Revenue Fund to serve as an insurance policy to mitigate any impact to Siesta Key as a result of the "Project". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SARASOTA, FLORIDA: Section 1: The City Commission hereby commits $2,500,000 of fund balance in the Tourist Development Tax Special Revenue Fund to serve as an insurance policy to mitigate any impact to Siesta Key as a result of the "Project", Page 4 of 5
8 Section 2: This Resolution shall take effect immediately upon its adoption. ADOPTED by the City Commission of the City of Sarasota, Florida, upon reading by title only, after posting on the bulletin board at City Hall for at least three (3) days prior to adoption, as authorized by Article IV, Section 2, Charter of the City of Sarasota, Florida, this ~ day of February, Lv~\Lv~ ~~ Willie Charles Shaw, Mayor Attest: y Y Y Y Y Mayor Willie Charles Shaw Vice-Mayor Shellie Eddie Commissioner Susan Chapman Commissioner Liz Alpert Commissioner Suzanne Atwell Page 5 of 5
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