STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS

STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS BAY COUNTY, HERNANDO COUNTY, LEE COUNTY, MIAMI-DADE COUNTY, OKALOOSA COUNTY, SEMINOLE COUNTY, NASSAU COUNTY, PINELLAS COUNTY, AND ORANGE COUNTY, CASE NOS. 11-0995 11-0999 Petitioners, 11-1001 11-1002 and 11-1003 11-1004 BROWARD COUNTY, ST. LUCIE 11-1265 COUNTY, HILLSBOROUGH COUNTY, 11-1266 VOLUSIA COUNTY, WALTON COUNTY, 11-1268 POLK COUNTY, LAKE COUNTY, CHARLOTTE COUNTY, ALACHUA COUNTY, MANATEE COUNTY, MARION COUNTY, AND INDIAN RIVER COUNTY, vs. Intervenors, DEPARTMENT OF JUVENILE JUSTICE Respondent. / NOTICE OF FILING JOINT STIPULATION OF FACTS AND PRODEDURE Petitioners and Intervenors Charlotte County, Manatee County, Marion County, Nassau County, Okaloosa County, Polk County, St. Lucie County, and Walton County, by and through their undersigned counsel, and on behalf of all parties, hereby give notice of filing the Joint Stipulation of Facts and Procedure in the above-referenced case, entered into by all parties to these consolidated proceedings. Filed December 6, 2013 4:19 PM Division of Administrative Hearings

Respectfully submitted, /s/ Carly J. Schrader GREGORY T. STEWART Florida Bar No. 203718 CARLY J. SCHRADER Florida Bar No. 14675 LYNN M. HOSHIHARA Florida Bar No. 41194 Nabors, Giblin & Nickerson, P.A. 1500 Mahan Drive, Suite 200 Post Office Box 11008 Tallahassee, Florida 32302 (850) 224-4070 (850) 224-4073 (Facsimile) gstewart@ngnlaw.com legal-admin@ngnlaw.com cschrader@ngnlaw.com lhoshihara@ngnlaw.com COUNSEL FOR OKALOOSA COUNTY, NASSAU COUNTY, ST. LUCIE COUNTY, POLK COUNTY, MARION COUNTY, WALTON COUNTY, CHARLOTTE COUNTY, AND MANATEE COUNTY JOHN R. DOWD Florida Bar No. 118265 901 Eglin Parkway Post Office Box 404 Shalimar, Florida 32579 (850) 651-1679 (850) 651-2626 (Facsimile) jdowd@co.okaloosa.fl.us CO-COUNSEL FOR OKALOOSA COUNTY DAVID A. HALLMAN Florida Bar No. 0825794 County Attorney Nassau County Attorney s Office 96135 Nassau Place, Suite 6 Yulee, Florida 32097 (904) 548-4590 (904) 321-2658 (Facsimile) dhallman@nassaucountyfl.com jbradley@nassaucountyfl.com CO-COUNSEL FOR NASSAU COUNTY DANIEL S. MCINTYRE Florida Bar No. 287571 St. Lucie County Attorney 2300 Virginia Avenue Fort Pierce, Florida 34982 (772) 462-1420 (772) 462-1440 (Facsimile) mcintyred@stlucieco.org SLCAttorney@stlucieco.org CO-COUNSEL FOR ST. LUCIE COUNTY MICHAEL S. CRAIG Florida Bar No. 797545 Polk County Attorney JANET MCDONALD Florida Bar No. 286060 Assistant County Attorney Drawer AT01 Post Office Box 9005 Bartow, Florida 33831-9005 (863) 534-6730 (863) 534-7654 (Fax) michaelcraig@polk-county.net janetmcdonald@polk-county.net CO-COUNSEL FOR POLK COUNTY 2

MATTHEW G. MINTER Florida Bar No. 298719 Marion County Attorney 601 S.E. 25 th Avenue Ocala, Florida 34471 (352) 438-2330 (352) 438-2331 (Facsimile) Email: matthew.minter@marioncountyfl.org donnita.martin@marioncountyfl.org CO-COUNSEL FOR MARION COUNTY MARK D. DAVIS Florida Bar No. 764700 Walton County Attorney Office of the County Attorney 161 East Sloss Avenue DeFuniak Springs, Florida 32435 (850) 892-8110 (850) 892-8471 (Fax) Email: mdd@co.walton.fl.us sincrissie@co.walton.fl.us CO-COUNSEL FOR WALTON COUNTY MITCHELL O. PALMER Florida Bar No. 351873 County Attorney JAMES A. MINIX Florida Bar No. 239240 Assistant County Attorney Manatee County Post Office Box 1000 Bradenton, Florida 34206-1000 (941) 745-3750 (941) 749-3089 (Facsimile) mitchell.palmer@mymanatee.org jim.minix@mymanatee.org CO-COUNSEL FOR MANATEE COUNTY JANETTE S. KNOWLTON Charlotte County Attorney Florida Bar No. 77232 DANIEL E. GALLAGHER Assistant County Attorney Florida Bar No. 872822 18500 Murdock Circle, Room 573 Port Charlotte, Florida 33948 (941) 743-1330 (941) 743-1550 (Fax) janette.knowlton@charlottefl.com daniel.gallagher@charlottefl.com CO-COUNSEL FOR CHARLOTTE COUNTY 3

CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished by Electronic Mail to the attached Service List, this 6th day of December, 2013. /s/ Carly J. Schrader CARLY J. SCHRADER 4

Service List Robert Livingston, IV Assistant County Attorney Alachua County Post Office Box 5547 Gainesville, Florida 32627 rl@alachuacounty.us Counsel for Alachua County Terrell K. Arline, County Attorney Jennifer W. Shuler Assistant County Attorney Bay County Attorney's Office 840 West 11th Street Panama City, Florida 32401-2336 tarline@baycountyfl.gov jshuler@baycountyfl.gov Counsel for Bay County Joni Armstrong Coffey, County Attorney Adam Katzman Assistant County Attorney Governmental Center, Suite 423 115 South Andrews Avenue Fort Lauderdale, Florida 33301 akatzman@broward.org mmcghie@broward.org Counsel for Broward County Janette S. Knowlton Charlotte County Attorney Daniel E. Gallagher Assistant County Attorney 18500 Murdock Circle, Room 573 Port Charlotte, Florida 33948 janette.knowlton@charlottefl.com daniel.gallagher@charlottefl.com Co-Counsel for Charlotte County Garth C. Coller Hernando County Attorney Jon A. Jouben Deputy County Attorney Shaun N. Amarnani Assistant County Attorney 20 North Main Street, Suite 462 Brooksville, Florida 34601 garthc@co.hernando.fl.us jjouben@co.hernando.fl.us samarnani@co.hernando.fl.us CAO@co.hernando.fl.us Counsel for Hernando County Stephen M. Todd Hillsborough County Attorney s Office Post Office Box 1110 Tampa, Florida 33601-1110 todds@hillsboroughcounty.org matthewsl@hillsboroughcounty.org britec@hillsboroughcounty.org Counsel for Hillsborough County Kate Pingolt Cotner Indian River County Attorney s Office 1801 27th Street Vero Beach, Florida 32960-3365 kcotner@ircgov.com Counsel for Indian River County Sanford A. Minkoff Lake County Attorney Melanie Marsh Deputy County Attorney Post Office Box 7800 315 West Main Street, Suite 335 Tavares, Florida 32778-7800 sminkoff@lakecountyfl.gov mmarsh@lakecountyfl.gov Counsel for Lake County 5

Ashley D. Roberts Assistant County Attorney Lee County Attorney's Office 2115 Second Street Post Office Box 398 Fort Myers, Florida 33902-0398 aroberts@leegov.com trialsection@leegov.com Counsel for Lee County Mitchell O. Palmer County Attorney James A. Minix Assistant County Attorney Manatee County Post Office Box 1000 Bradenton, Florida 34206-1000 mitchell.palmer@mymanatee.org jim.minix@mymanatee.org Co-Counsel For Manatee County Matthew G. Minter Marion County Attorney 601 S.E. 25 th Avenue Ocala, Florida 34471 matthew.minter@marioncountyfl.org donnita.martin@marioncountyfl.org Co-Counsel For Marion County R. A. Cuevas, Jr. Miami-Dade County Attorney Estephanie Resnik Assistant County Attorney Cynthia Johnson-Stacks Assistant County Attorney Stephen P. Clark Center 111 N.W. 1st Street, Suite 2810 Miami, Florida 33128 resnik@miamidade.gov cjs2@miamidade.gov Counsel for Miami-Dade County David A. Hallman Nassau County Attorney 96135 Nassau Place, Suite 6 Yulee, Florida 32097 dhallman@nassaucountyfl.com jbradley@nassaucountyfl.com Co-Counsel for Nassau County John Dowd, County Attorney Okaloosa County Attorney's Office 901 Eglin Parkway Post Office Box 404 Shalimar, Florida 32401 jdowd@co.okaloosa.fl.us Co-Counsel for Okaloosa County Linda Brehmer Lanosa Assistant County Attorney Orange County Attorney's Office Litigation Section 201 S. Rosalind Avenue, Third Floor P.O. Box 1393 Orlando, Florida 32802-1393 Linda.BrehmerLanosa@ocfl.net Martina.Desjardins@ocfl.net Maria.Vargas@ocfl.net Counsel for Orange County Carl E. Brody Senior Assistant County Attorney Christy Donovan Pemberton Senior Assistant County Attorney 315 Court Street, 6th Floor Clearwater, Florida 33756 cbrody@pinellascounty.org cpembert@pinellascounty.org Counsel for Pinellas County 6

Michael S. Craig Polk County Attorney Janet McDonald Assistant County Attorney Drawer AT01 Post Office Box 9005 Bartow, Florida 33831-9005 michaelcraig@polk-county.net janetmcdonald@polk-county.net Co-Counsel For Polk County Daniel S. Mcintyre St. Lucie County Attorney 2300 Virginia Avenue Fort Pierce, Florida 34982 mcintyred@stlucieco.org SLCAttorney@stlucieco.org Co-Counsel For St. Lucie County A. Bryant Applegate, County Attorney Ann E. Colby Assistant County Attorney Arnold W. Schneider Assistant County Attorney Seminole County Services Building 1101 East First Street Sanford, Florida 32771 acolby@seminolecountyfl.gov dedge@seminolecountyfl.gov aschneider@seminolecountyfl.gov Counsel for Seminole County Douglas G. Griffin Assistant County Attorney County of Volusia 123 W. Indiana Avenue DeLand, Florida 32720-4613 dgriffin@volusia.org gpage@volusia.org Counsel for Volusia County Mark D. Davis Walton County Attorney Office of the County Attorney 161 East Sloss Avenue DeFuniak Springs, Florida 32435 mdd@co.walton.fl.us sincrissie@co.walton.fl.us Co-Counsel For Walton County Brian D. Berkowitz, General Counsel Michael J. Wheeler Assistant General Counsel Department of Juvenile Justice 2737 Centerview Drive Tallahassee, Florida 32399-3100 brian.berkowitz@djj.state.fl.us michael.wheeler@djj.state.fl.us Counsel for Department of Juvenile Justice 7

This Joint Stipulation of Facts and Procedure is entered into by and between the State of Florida, DEPARTMENT OF JUVENILE JUSTICE ( THE DEPARTMENT ) and BAY COUNTY, HERNANDO COUNTY, LEE COUNTY, MIAMI-DADE COUNTY, OKALOOSA COUNTY, SEMINOLE COUNTY, NASSAU COUNTY, PINELLAS COUNTY, ORANGE COUNTY, BROWARD COUNTY, ST. LUCIE COUNTY, HILLSBOROUGH COUNTY, VOLUSIA COUNTY, WALTON COUNTY, POLK COUNTY, MARION COUNTY, LAKE COUNTY, CHARLOTTE COUNTY, MANATEE COUNTY, ALACHUA COUNTY, and INDIAN RIVER COUNTY(collectively Counties ), as set forth below. STIPULATION OF FACTS Secure Juvenile Detention Cost Sharing Legal Basis 1. The State is responsible for providing secure detention care to juveniles. Section 985.686, Florida Statutes, provides that the State and the Counties have a joint obligation to contribute to the financial support of secure juvenile detention care. 2. The Department is the state agency responsible for administering the cost-sharing requirements of section 985.686, Florida Statutes, regarding secure juvenile detention care. 2

3. The Counties are political subdivisions of the State of Florida, mandated by section 985.686, Florida Statutes, to pay the costs of providing detention care for juveniles only for the period of time prior to final court disposition, exclusive of certain costs as set forth in the statute. The State is responsible for all other costs of secure juvenile detention. 4. Section 985.6015, Florida Statutes, establishes the Shared County/State Juvenile Detention Trust Fund to be used as a depository for funds from the Counties share of the costs for predisposition juvenile detention. 5. Section 985.686, Florida Statutes, requires that each County incorporate into its annual budget sufficient funds to pay an estimated amount of its predisposition costs. The estimate must be based upon the prior use of secure detention for juveniles who are residents of that county, calculated by the Department. The Counties are required to pay their respective estimated costs for predisposition juvenile detention to the Department at the beginning of each month. 6. Section 985.686, Florida Statutes, provides that any difference between the estimated costs and actual costs for each County shall be reconciled by the Department at the end of the state fiscal year. Historic Implementation of Secure Juvenile Detention Cost Sharing 3

7. Since Fiscal Year ( FY ) 2005-2006, the Department has performed an annual reconciliation at the end of the State s fiscal year. (Composite Ex. 1). Through this annual reconciliation, the Department has historically determined the final amount allocated to each County for the actual cost of secure juvenile detention for the fiscal year, and then either credits the County for any overpayment, or debits the County for any underpayment made based on the estimated amount previously billed and paid by the County on a monthly basis. It is through the use of credits and debits that the Department adjusts for the amounts already paid by the County to arrive at the actual amount owed. 8. On July 16, 2006, the Department promulgated rules contained in Chapter 63G-1, Florida Administrative Code, which set forth definitions and formulated procedures for calculating the shared costs of juvenile detention between the State and the various Counties. (Ex. 2). These rules were repealed as of July 6, 2010, and in their place, the Department adopted Rules 63G-1.011, 63G-1.013, 63G-1.016, 63G-1.017, Florida Administrative Code, among others. (Ex. 3). 9. Beginning with the annual reconciliation for FY 2008-2009, the Counties began challenging the Department s allocation of predispositional costs to the Counties based on an interpretation by the Department that 4

final court disposition as stated in section 985.686, Florida Statutes, is equivalent to commitment to the Department. The Counties also challenged the Department s annual reconciliation on the basis that it used an estimate found in the General Appropriation Act for determining the year end actual costs assessed to the Counties. These interpretations made by the Department of section 985.686, Florida Statutes, were incorporated into the rules adopted by the Department on July 6, 2010. 10. The administrative challenge to the FY 2008-2009 annual reconciliation is currently on appeal before the First District Court of Appeal. Fiscal Year 09-10 Annual Reconciliation 11. The Counties in this case all made monthly payments to the Department for secure juvenile detention based on the Department s estimate to the Counties, sent on June 5, 2009. (Ex. 4). 12. On January 11, 2011, the Department published its Annual Reconciliation for FY 2009-2010, setting forth each County s share of the year-end cost of secure juvenile detention as determined by the Department, and assigned each paying County a debit or credit for any underpayment or overpayment ( FY 09-10 Annual Reconciliation ). (Ex. 5). The amounts 5

set forth in the FY 09-10 Annual Reconciliation for each of the Counties are incorporated as if fully set forth herein. 13. The FY 09-10 Annual Reconciliation was issued by the Department under the provisions of Rules 63G-1.011, 63G-1.013, 63G- 1.016, 63G-1.017, Florida Administrative Code. 14. The FY 09-10 Annual Reconciliation applies to all Counties who are responsible for contributing payments to secure juvenile detention cost sharing. At the time the FY 09-10 Annual Reconciliation was done by the Department, any change to the numbers which applied to any one County had the potential to affect the numbers applied to all other Counties. Therefore, based on the methodology used by the Department, any agency action related to the amounts owed by any one County impacted on the agency action taken as to all other Counties. Standing of the Counties to Participate as Parties 15. The Counties challenged the FY 09-10 Annual Reconciliation and a final hearing is scheduled for November 20 through 22, 2013. All of the Counties in this case have either timely filed petitions challenging the Department s FY 09-10 Annual Reconciliation, or have timely intervened and have been granted full party status in this consolidated proceeding, and 6

as such, each of the Counties to this stipulation are entitled to any and all available remedies. 16. Pursuant to Chapter 985, Florida Statutes, each County is mandated to budget for and pay the State, through the Department, for its costs of secure juvenile detention care for juveniles (who reside in that county) for the period of time prior to final court disposition. Each County has in fact made such payments to the Department, which payments are the subject of these proceedings. 17. Because the Department s FY 09-10 Annual Reconciliation determines the ultimate amount allocated to each County for its respective share of the actual costs of secure juvenile detention and also determines the amounts debited or credited to each County at the end of the fiscal year to reconcile the year-end costs with the estimated costs, the Counties are all substantially affected by the FY 09-10 Annual Reconciliation of the Department. Each County will suffer an injury in fact which is of sufficient immediacy to entitle it to a hearing in these proceedings. 18. Each County s substantial interest is of a type and nature which this proceeding is designed to protect, in that this proceeding determines each County s cost of secure juvenile detention care for FY 09-10. All of 7

the Counties have standing and are proper parties to this administrative proceeding. 19. Based on the fact that challenges to the FY 09-10 Annual Reconciliation were pending, the following Counties made no payment to the Department for the debit assigned as part of the Annual Reconciliation: Bay County, Nassau County, Okaloosa County, and Seminole County. All other Counties either paid the amount debited or took the amount credited based on the FY 2009-10 Annual Reconciliation. Rule Challenge 20. During the course of these proceedings, several of the Counties also filed a challenge to Rules 63G-1.011, 63G-1.013, 63G-1.016, 63G- 1.017, Florida Administrative Code ( the Challenged Rules ), on which the FY 09-10 Annual Reconciliation was based. These Counties challenged the Rules on the basis that they were inconsistent with section 985.686, Florida Statutes, and therefore, an invalid exercise of delegated legislative authority. 21. Among other arguments, the Counties challenged the Rules on the basis that they adopted and implemented a new definition of commitment and held the Counties responsible for all costs of secure juvenile detention unless a juvenile was committed to the Department as part of the court disposition of the juvenile s charge. As a result, the costs of tens 8

of thousands of detention days were shifted from the State to the Counties. The Counties also challenged the Rules on the basis that they did not assess the Counties for the year-end actual costs of predispositional juvenile detention, but instead, assessed the Counties based on an estimate of the Counties costs contained in the General Appropriations Act. 22. On July 17, 2012, Administrative Law Judge ( ALJ ) W. David Watkins issued a Final Order agreeing with the arguments raised by the Counties, and invalidating the Challenged Rules as an invalid exercise of delegated legislative authority, causing overcharges to the Counties. Okaloosa County et al. v. Department of Juvenile Justice, DOAH Case No. 12-0891RX (Final Order July 17, 2012). (Ex. 6). 23. The Final Order was appealed to the Florida First District Court of Appeal by the Department. On June 5, 2013, the First District issued its written decision affirming the Final Order. Department of Juvenile Justice v. Okaloosa County, Case No. 1D12-3929, 113 So. 3d 1074 (Fla. 1st DCA 2013). (Ex. 7). The opinion agreed that the Department s interpretation of section 985.686, was improper, and that the ALJ correctly invalidated the Challenged Rules. 24. All parties acknowledge that the Challenged Rules are now void. 9

The Department s Recalculation of the Annual Reconciliation for FY 09-10 25. The Department presently acknowledges that its FY 09-10 Annual Reconciliation was based on invalid rules and does not comply with section 985.686, Florida Statutes. The Department further acknowledges that the Counties have been overcharged for their statutory portion of the costs of secure juvenile detention for FY 09-10 based on the Annual Reconciliation. 26. The parties agree that Final Court Disposition as contained in section 985.686, Florida Statutes, and based on the decision of the First District Court of Appeal, means a disposition order entered by a court of competent jurisdiction, including an order sentencing a juvenile to commitment to the Department, or other private or public institution as allowed by law, placing the juvenile on probation, or dismissing the charge. 27. The parties further agree that a Predispositional Day means any secure detention day occurring prior to the day on which a Final Court Disposition is entered. Predispositional day does not include any secure detention day after a juvenile has been sentenced to commitment or placed on probation, or is waiting for release after dismissal of a charge. 10

28. The Department specifically acknowledges that it shall remain responsible for all detention days which are not Predispositional Days, for all detention days of juveniles who reside out of state or whose residency cannot be determined, and for detention days of fiscally constrained counties. 29. For purposes of the FY 09-10 Reconciliation, the parties additionally agree that the Actual Costs assessed to each County pursuant to section 985.686, Florida Statutes, can be calculated based on each County s number of Predispositional Days for juveniles residing in that County, multiplied by the actual cost per day for secure juvenile detention care. 30. In acknowledgment of the above, and in an effort to comply with the requirements of section 985.686, Florida Statutes, and the First District Court of Appeal s decision invalidating the Department s cost sharing rules, the Department has published a recalculation of the amounts properly assessed to the Counties for their respective actual costs of predisposition secure juvenile detention for FY 09-10 ( FY 09-10 Recalculation ). (Ex. 8). 31. In an effort to resolve the factual disputes in this case, all parties stipulate that the FY 09-10 Recalculation sets forth the proper 11

amount assessed to each of the Counties for their respective actual costs of secure juvenile detention care for FY 09-10. 32. The parties also stipulate that the amount provided in the last column of the FY 09-10 Recalculation titled Net Debit/(Credit) Due accurately sets forth the amounts overpaid or underpaid by each of the Counties for FY 09-10. The amounts shown as credits are due to the Counties to this administrative proceeding as part of the reconciliation for FY 09-10 required pursuant to section 985.686, Florida Statutes. These amounts are as follows: COUNTY AMOUNT OVERPAID ALACHUA $673,844.33 BAY $558,768.04 BROWARD $2,690,718.20 CHARLOTTE $389,803.38 HERNANDO $282,288.58 HILLSBOROUGH $3,350,427.46 INDIAN RIVER $268,656.37 LAKE $423,686.18 LEE $2,502,065.59 MANATEE $1,237,690.08 MARION $502,656.56 MIAMI-DADE $3,352,335.99 OKALOOSA $475,592.96 12

ORANGE $4,032,405.38 PINELLAS $3,184,786.17 POLK $1,759,258.57 SEMINOLE $1,362,557.19 ST. LUCIE $1,436,521.82 VOLUSIA $2,623,067.86 WALTON $113,986.75 33. One County to these administrative proceedings, Nassau County, has a debit in the amount of $13,692.94 listed as the Net Debit/(Credit) Due as part of the FY 09-10 Recalculation. This debit can be offset by credits that may be due and owing to Nassau County for subsequent Fiscal Years. 34. Accordingly, the FY 09-10 Recalculation, Exhibit 8 hereto, is acknowledged by all parties as the Department s Final Annual Reconciliation as to the Petitioning and Intervening Counties to this administrative proceeding. The amounts set forth in the FY 09-10 Recalculation, Exhibit 8 hereto, are incorporated as if fully set forth herein. Counties Which Have Opted-Out of State Secure Juvenile Detention Care Cost Sharing 13

35. Pursuant to section 985.686(10), Florida Statutes, Counties may currently opt out of secure juvenile detention cost sharing, and may provide locally for detention care for preadjudicated juveniles. 36. The Department acknowledges that three of the Counties, Marion County, Polk County, and Seminole County are no longer part of the cost sharing system pursuant to section 985.686(10), Florida Statutes, as of the following dates: Marion County November 2010; Polk County October 2011; Seminole County April 2012. 37. Because Marion County, Polk County, and Seminole County, are no longer part of the cost sharing system, the Department acknowledges that credits are not an appropriate remedy as to these Counties. Department Funding 38. The Department has historically made reversions of unspent general revenue including during the 09-10 fiscal year. These unspent and reverted amounts are returned to the State at the end of the State fiscal year. For the Department as a whole, these amounts are as follows: FY 2008-09: $9,975,999 FY 2009-10: $13,349,648 FY 2010-11: $22,634,870 FY 2011-12: $14,990,967 14

FY 2012-13 : $27,182,119 (Ex. 9). These reversions total $88,133,603 over the five fiscal years as shown above. 39. Of the above reverted amounts of General Revenue, the following amounts were reverted from the Department s detention budget: FY 2008-09: $1,018,095 FY 2009-10: $784,753 FY 2010-11: $3,092,041 FY 2011-12: $996,531 FY 2012-13 : $10,401 (Ex. 10). These reversions total $5,901,821 over the fiscal years as shown above. 40. In past administrative challenges brought by a County based on the Department s failure to properly calculate costs of secure juvenile detention care, the Department has made the application of credits part of its Final Order where the County s challenge ultimately proved successful. See Hillsborough County v. Department of Juvenile Justice, DOAH Case No. 07-4398 (Final Order June 4, 2008). (Ex. 11). 41. The Counties assert that based on the 09-10 Recalculation, the Counties are entitled pursuant to section 985.686, Florida Statutes, to the 15

application of credits, or, where credits cannot be applied as set forth above, reimbursements. The Department will not agree to apply any credits or repayments at this time based on the FY 09-10 Recalculation because the Department s position is this is an issue between the Counties and the Legislature. Because of this fundamental disagreement, the parties are unable to fully resolve all issues to this administrative proceeding, other than the facts and procedures stipulated to herein. The Counties do not waive any rights or remedies with regard to the recovery of any overpayments made to the Department, as set forth in paragraph 32 and Exhibit 8 to this Joint Stipulation. Exhibits 42. All Exhibits attached to this Joint Stipulation are incorporated herein. The parties agree to the authenticity of all Exhibits and stipulate that they are properly part of the official record of these administrative proceedings, and constitute competent substantial evidence for the facts stipulated herein. 16

STIPULATION OF PROCEDURE For the purpose of expediting these administrative proceedings, the parties to this Joint Stipulation further agree to the following procedures and timelines. 1. This Joint Stipulation shall be filed with the Division of Administrative Hearings ( DOAH ) after execution by all of the parties, and shall become a part of the official record, including the exhibits attached hereto and referenced herein. Upon the filing of the Joint Stipulation, the parties shall jointly file a motion requesting that DOAH relinquish jurisdiction to the Department for entry of a Final Order. 2. Upon relinquishment of jurisdiction from DOAH, the parties will have 15 days to file Proposed Final Orders with the Department agency clerk. The Department will enter a Final Order within 30 days of relinquishment of jurisdiction. The Final Order will incorporate the above stipulation of facts, and will attach a copy of the FY 09-10 Recalculation, Exhibit 8 hereto, as the Amended and Final Reconciliation for the Counties. This time period may only be extended based on further written agreement of all the parties. The Department acknowledges that the Counties will be prejudiced by any delay of the timelines set forth herein. 17

3. The Counties expressly reserve the right to appeal the Final Order of the Department, excepting any factual issue which is stipulated to herein. 18

EXHIBITS TO STIPULATION 1. Annual Reconciliations of the Department FY 2005/2006 through FY 2011/2012 (Composite) 2. Chapter 63G-1, Fla. Admin. Code (Adopted July 16, 2006; Repealed July 6, 2010) 3. Chapter 63G-1 (Adopted July 6, 2010) 4. June 5, 2009 letter to the Counties and FY 09-10 Estimate 5. January 11, 2011 letter to the Counties and FY 09-10 Annual Reconciliation 6. Okaloosa County et al. v. Department of Juvenile Justice, DOAH Case No. 12-0891RX (Final Order July 17, 2012). 7. Department of Juvenile Justice v. Okaloosa County, Case No. 1D12-3929, 113 So. 3d 1074 (Fla. 1st DCA 2013). 8. 2009-10 Secure Detention Cost Sharing Billing NEW Methodology ( FY 09-10 Recalculation ) 9. Department of Juvenile Justice Reversions of General Revenue, Fiscal Years 2008-09 through 2012-13. 10. Department of Juvenile Justice Reversions of General Revenue for Detention Fiscal Years 2008-09 through 2012-13. 19

11. Hillsborough County v. Department of Juvenile Justice, DOAH Case No. 07-4398 (Final Order June 4, 2008) 20

Bay County By: Terrell K. Arline, County Attorney Jennifer W. Shuler Assistant County Attorney Bay County Attorney's Office 840 West 11th Street Panama City, Florida 32401-2336 tarline@baycountyfl.gov jshuler@baycountyfl.gov Counsel for Bay County 23

STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS OKALOOSA COUNTY, FLORIDA, and Petitioner, CASE NO. 11-5894 BAY COUNTY, ORANGE COUNTY, ST. LUCIE COUNTY, NASSAU COUNTY, PINELLAS COUNTY, LAKE COUNTY, HILLSBOROUGH COUNTY, HERNANDO COUNTY, VOLUSIA COUNTY, MARION COUNTY, POLK COUNTY, WALTON COUNTY, MIAMI-DADE COUNTY, BROWARD COUNTY, CHARLOTTE COUNTY, MANATEE COUNTY,ALACHUA COUNTY, LEE COUNTY, INDIAN RIVER COUNTY, AND SEMINOLE COUNTY, vs. Intervenors, DEPARTMENT OF JUVENILE JUSTICE, Respondent. / NOTICE OF FILING JOINT STIPULATION OF FACTS AND PRODEDURE Petitioner and Intervenors Okaloosa County, Charlotte County, Manatee County, Marion County, Nassau County, Polk County, St. Lucie County, and Walton County, by and through their undersigned counsel, and on behalf of all parties, hereby give notice of filing the Joint Stipulation of Facts and Procedure in the above-referenced case, entered into by all parties to this proceeding. Filed December 9, 2013 8:00 AM Division of Administrative Hearings

Respectfully submitted, /s/ Carly J. Schrader GREGORY T. STEWART Florida Bar No. 203718 CARLY J. SCHRADER Florida Bar No. 14675 LYNN M. HOSHIHARA Florida Bar No. 41194 Nabors, Giblin & Nickerson, P.A. 1500 Mahan Drive, Suite 200 Post Office Box 11008 Tallahassee, Florida 32302 (850) 224-4070 (850) 224-4073 (Facsimile) gstewart@ngnlaw.com legal-admin@ngnlaw.com cschrader@ngnlaw.com lhoshihara@ngnlaw.com COUNSEL FOR OKALOOSA COUNTY, ST. LUCIE COUNTY, NASSAU COUNTY, POLK COUNTY, MARION COUNTY, WALTON COUNTY, CHARLOTTE COUNTY AND MANATEE COUNTY JOHN R. DOWD Florida Bar No. 118265 County Attorney Okaloosa County Attorney s Office 901 Eglin Parkway Post Office Box 404 Shalimar, Florida 32579 (850) 651-1679 (850) 651-2828 (Facsimile) Email: jdowd@co.okaloosa.fl.us CO-COUNSEL FOR OKALOOSA COUNTY DANIEL S. MCINTYRE Florida Bar No. 287571 St. Lucie County Attorney 2300 Virginia Avenue Fort Pierce, Florida 34982 (772) 462-1420 (772) 462-1440 (Facsimile) mcintyred@stlucieco.org SLCAttorney@stlucieco.org CO-COUNSEL FOR ST. LUCIE COUNTY DAVID A. HALLMAN Florida Bar No. 0825794 County Attorney Nassau County Attorney s Office 96135 Nassau Place, Suite 6 Yulee, Florida 32097 (904) 548-4590 (904) 321-2658 (Facsimile) dhallman@nassaucountyfl.com jbradley@nassaucountyfl.com CO-COUNSEL FOR NASSAU COUNTY MICHAEL S. CRAIG Florida Bar No. 797545 Polk County Attorney JANET MCDONALD Florida Bar No. 286060 Assistant County Attorney Drawer AT01 Post Office Box 9005 Bartow, Florida 33831-9005 (863) 534-6730 (863) 534-7654 (Fax) michaelcraig@polk-county.net janetmcdonald@polk-county.net CO-COUNSEL FOR POLK COUNTY 2

MATTHEW G. MINTER Florida Bar No. 298719 Marion County Attorney 601 S.E. 25 th Avenue Ocala, Florida 34471 (352) 438-2330 (352) 438-2331 (Facsimile) matthew.minter@marioncountyfl.org donnita.martin@marioncountyfl.org CO-COUNSEL FOR MARION COUNTY MARK D. DAVIS Florida Bar No. 764700 Walton County Attorney Office of the County Attorney 161 East Sloss Avenue DeFuniak Springs, Florida 32435 (850) 892-8110 (850) 892-8471 (Fax) Email: mdd@co.walton.fl.us sincrissie@co.walton.fl.us CO-COUNSEL FOR WALTON COUNTY JANETTE S. KNOWLTON Charlotte County Attorney Florida Bar No. 77232 DANIEL E. GALLAGHER Assistant County Attorney Florida Bar No. 872822 18500 Murdock Circle, Room 573 Port Charlotte, Florida 33948 (941) 743-1330 (941) 743-1550 (Fax) janette.knowlton@charlottefl.com daniel.gallagher@charlottefl.com CO-COUNSEL FOR CHARLOTTE COUNTY MITCHELL O. PALMER Florida Bar No. 351873 County Attorney JAMES A. MINIX Florida Bar No. 239240 Assistant County Attorney Manatee County Post Office Box 1000 Bradenton, Florida 34206-1000 (941) 745-3750 (941) 749-3089 (Facsimile) mitchell.palmer@mymanatee.org jim.minix@mymanatee.org CO-COUNSEL FOR MANATEE COUNTY CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing was served by Electronic Mail to the following parties, this 6th day of December, 2013: /s/ Carly J. Schrader CARLY J.SCHRADER 3

SERVICE LIST Brian D. Berkowitz, General Counsel Michael J. Wheeler Assistant General Counsel Department of Juvenile Justice 2737 Centerview Drive Tallahassee, Florida 32399-3100 brian.berkowitz@djj.state.fl.us michael.wheeler@djj.state.fl.us Counsel for the Department of Juvenile Justice Robert Livingston, IV Assistant County Attorney Alachua County Post Office Box 5547 Gainesville, Florida 32627 rl@alachuacounty.us Counsel for Alachua County Terrell K. Arline County Attorney Jennifer W. Shuler Assistant County Attorney Bay County Attorney's Office 840 West 11th Street Panama City, Florida 32401-2336 tarline@baycountyfl.gov jshuler@baycountyfl.gov Counsel for Bay County Joni Armstrong Coffey County Attorney for Broward County Adam Katzman Assistant County Attorney Governmental Center, Suite 423 115 South Andrews Avenue Fort Lauderdale, Florida 33301 akatzman@broward.org Counsel for Broward County Janette S. Knowlton Charlotte County Attorney Daniel E. Gallagher Assistant County Attorney 18500 Murdock Circle, Room 573 Port Charlotte, Florida 33948 janette.knowlton@charlottefl.com daniel.gallagher@charlottefl.com Co-Counsel for Charlotte County Garth Coller County Attorney Jon A. Jouben Assistant County Attorney Shaun Amarnani Assistant County Attorney Hernando County Attorney s Office 20 N. Main Street, Suite 462 Brooksville, Florida 34601 garthc@co.hernando.fl.us jjouben@co.hernando.fl.us samarnani@co.hernando.fl.us CAO@co.hernando.fl.us Counsel for Hernando County Stephen M. Todd Senior Assistant County Attorney Hillsborough County Attorney s Office Post Office Box 1110 Tampa, Florida 33601-1110 todds@hillsboroughcounty.org matthewsl@hillsboroughcounty.org britec@hillsboroughcounty.org Counsel for Hillsborough County Kate Pingolt Cotner Indian River County Attorney s Office 1801 27th Street Vero Beach, Florida 32960-3365 kcotner@ircgov.com Counsel for Indian River County 4

Sanford A. Minkoff Lake County Attorney Melanie Marsh Deputy County Attorney Post Office Box 7800 315 West Main Street, Suite 335 Tavares, Florida 32778-7800 sminkoff@lakecountyfl.gov mmarsh@lakecountyfl.gov Counsel for Lake County Ashley D. Roberts Assistant County Attorney 2115 Second Street Post Office Box 398 Fort Myers, Florida 33902-0398 aroberts@leegov.com trialsection@leegov.com Counsel for Lee County Mitchell O. Palmer County Attorney James A. Minix Assistant County Attorney Manatee County Post Office Box 1000 Bradenton, Florida 34206-1000 mitchell.palmer@mymanatee.org jim.minix@mymanatee.org Co-Counsel For Manatee County Matthew G. Minter Marion County Attorney 601 S.E. 25 th Avenue Ocala, Florida 34471 matthew.minter@marioncountyfl.org donnita.martin@marioncountyfl.org Co-Counsel For Marion County R. A. Cuevas, Jr. Miami-Dade County Attorney Estephanie Resnik Assistant County Attorney Cynthia Johnson-Stacks Assistant County Attorney Stephen P. Clark Center 111 N.W. 1st Street, Suite 2810 Miami, Florida 33128 resnik@miamidade.gov cjs2@miamidade.gov Counsel for Miami-Dade County David A. Hallman County Attorney Nassau County Attorney s Office 96135 Nassau Place, Suite 6 Yulee, Florida 32097 dhallman@nassaucountyfl.com jbradley@nassaucountyfl.com Co-Counsel For Nassau County John R. Dowd County Attorney Okaloosa County Attorney s Office 901 Eglin Parkway Post Office Box 404 Shalimar, Florida 32579 jdowd@co.okaloosa.fl.us Co-Counsel For Okaloosa County Linda Brehmer Lanosa Assistant County Attorney Orange County Attorney s Office 201 South Rosalind Avenue Third Floor Orlando, Florida 32801 Linda.BrehmerLanosa@ocfl.net Martina.Desjardins@ocfl.net Maria.Vargas@ocfl.net Counsel for Orange County 5

Carl E. Brody Senior Assistant County Attorney Pinellas County 315 Court Street, Sixth Floor Clearwater, Florida 33756 cbrody@pinellascounty.org Counsel for Pinellas County Michael S. Craig Polk County Attorney Janet McDonald Assistant County Attorney Drawer AT01 Post Office Box 9005 Bartow, Florida 33831-9005 michaelcraig@polk-county.net janetmcdonald@polk-county.net Co-Counsel For Polk County Douglas G. Griffin Assistant County Attorney County of Volusia 123 W. Indiana Avenue DeLand, Florida 32720-4613 dgriffin@volusia.org gpage@volusia.org Counsel for Volusia County Mark D. Davis Walton County Attorney Office of the County Attorney 161 East Sloss Avenue DeFuniak Springs, Florida 32435 mdd@co.walton.fl.us sincrissie@co.walton.fl.us Co-Counsel For Walton County Daniel S. Mcintyre St. Lucie County Attorney 2300 Virginia Avenue Fort Pierce, Florida 34982 mcintyred@stlucieco.org SLCAttorney@stlucieco.org Co-Counsel For St. Lucie County Arnold W. Schneider Assistant County Attorney Ann E. Colby Assistant County Attorney Seminole County Attorney s Office 1101 East First Street Sanford, Florida 32771 aschneider@seminolecountyfl.gov acolby@seminolecountyfl.gov dedge@seminolecountyfl.gov Counsel for Seminole County 6

This Joint Stipulation of Facts and Procedure is entered into by and between the State of Florida, DEPARTMENT OF JUVENILE JUSTICE ( THE DEPARTMENT ) and OKALOOSA COUNTY, BAY COUNTY, ORANGE COUNTY, ST. LUCIE COUNTY, NASSAU COUNTY, PINELLAS COUNTY, LAKE COUNTY, HILLSBOROUGH COUNTY, HERNANDO COUNTY, VOLUSIA COUNTY, MARION COUNTY, POLK COUNTY, WALTON COUNTY, MIAMI-DADE COUNTY, BROWARD COUNTY, CHARLOTTE COUNTY, MANATEE COUNTY, ALACHUA COUNTY, LEE COUNTY, INDIAN RIVER COUNTY, AND SEMINOLE COUNTY, (collectively Counties ), as set forth below. STIPULATION OF FACTS Secure Juvenile Detention Cost Sharing Legal Basis 1. The State is responsible for providing secure detention care to juveniles. Section 985.686, Florida Statutes, provides that the State and the Counties have a joint obligation to contribute to the financial support of secure juvenile detention care. 2. The Department is the state agency responsible for administering the cost-sharing requirements of section 985.686, Florida Statutes, regarding secure juvenile detention care. 2

final court disposition as stated in section 985.686, Florida Statutes, is equivalent to commitment to the Department. The Counties also challenged the Department s annual reconciliation on the basis that it used an estimate found in the General Appropriation Act for determining the year end actual costs assessed to the Counties. These interpretations made by the Department of section 985.686, Florida Statutes, were incorporated into the rules adopted by the Department on July 6, 2010. 10. The administrative challenge to the FY 2008-2009 annual reconciliation is currently on appeal before the First District Court of Appeal. 11. The administrative challenge to the FY 2009-2010 annual reconciliation is currently pending before the Division of Administrative Hearings. Fiscal Year 10-11 Annual Reconciliation 12. The Counties in this case all made monthly payments to the Department for secure juvenile detention based on the Department s estimate to the Counties, sent on June 1, 2010. (Ex. 4). 13. On October 24, 2011, the Department published its Annual Reconciliation for FY 2010-2011, setting forth each County s share of the year-end cost of secure juvenile detention as determined by the Department, 5

and assigned each paying County a debit or credit for any underpayment or overpayment ( FY 10-11 Annual Reconciliation ). (Ex. 5). The amounts set forth in the FY 10-11 Annual Reconciliation for each of the Counties are incorporated as if fully set forth herein. 14. The FY 10-11 Annual Reconciliation was issued by the Department under the provisions of Rules 63G-1.011, 63G-1.013, 63G- 1.016, 63G-1.017, Florida Administrative Code. 15. The FY 10-11 Annual Reconciliation applies to all Counties who are responsible for contributing payments to secure juvenile detention cost sharing. At the time the FY 10-11 Annual Reconciliation was done by the Department, any change to the numbers which applied to any one County had the potential to affect the numbers applied to all other Counties. Therefore, based on the methodology used by the Department, any agency action related to the amounts owed by any one County impacted on the agency action taken as to all other Counties. Standing of the Counties to Participate as Parties 16. The Counties challenged the FY 10-11 Annual Reconciliation and a final hearing is scheduled for December 16, 18, and 19, 2013. All of the Counties in this case have either timely filed petitions challenging the Department s FY 10-11 Annual Reconciliation, or have timely intervened 6

and have been granted full party status in this consolidated proceeding, and as such, each of the Counties to this stipulation are entitled to any and all available remedies. 17. Pursuant to Chapter 985, Florida Statutes, each County is mandated to budget for and pay the State, through the Department, for its costs of secure juvenile detention care for juveniles (who reside in that county) for the period of time prior to final court disposition. Each County has in fact made such payments to the Department, which payments are the subject of these proceedings. 18. Because the Department s FY 10-11 Annual Reconciliation determines the ultimate amount allocated to each County for its respective share of the actual costs of secure juvenile detention and also determines the amounts debited or credited to each County at the end of the fiscal year to reconcile the year-end costs with the estimated costs, the Counties are all substantially affected by the FY 10-11 Annual Reconciliation of the Department. Each County will suffer an injury in fact which is of sufficient immediacy to entitle it to a hearing in these proceedings. 19. Each County s substantial interest is of a type and nature which this proceeding is designed to protect, in that this proceeding determines each County s cost of secure juvenile detention care for FY 10-11. All of 7

the Counties have standing and are proper parties to this administrative proceeding. 20. Based on the fact that challenges to the FY 10-11 Annual Reconciliation were pending, the following Counties made no payment to the Department for the debit assigned or took no credit as part of the Annual Reconciliation: Bay County and Okaloosa County. All other Counties either paid the amount debited or took the amount credited based on the FY 2010-11 Annual Reconciliation. Rule Challenge 21. During the course of these proceedings, several of the Counties also filed a challenge to Rules 63G-1.011, 63G-1.013, 63G-1.016, 63G- 1.017, Florida Administrative Code ( the Challenged Rules ), on which the FY 10-11 Annual Reconciliation was based. These Counties challenged the Rules on the basis that they were inconsistent with section 985.686, Florida Statutes, and therefore, an invalid exercise of delegated legislative authority. 22. Among other arguments, the Counties challenged the Rules on the basis that they adopted and implemented a new definition of commitment and held the Counties responsible for all costs of secure juvenile detention unless a juvenile was committed to the Department as part of the court disposition of the juvenile s charge. As a result, the costs of tens 8

of thousands of detention days were shifted from the State to the Counties. The Counties also challenged the Rules on the basis that they did not assess the Counties for the year-end actual costs of predispositional juvenile detention, but instead, assessed the Counties based on an estimate of the Counties costs contained in the General Appropriations Act. 23. On July 17, 2012, Administrative Law Judge ( ALJ ) W. David Watkins issued a Final Order agreeing with the arguments raised by the Counties, and invalidating the Challenged Rules as an invalid exercise of delegated legislative authority, causing overcharges to the Counties. Okaloosa County et al. v. Department of Juvenile Justice, DOAH Case No. 12-0891RX (Final Order July 17, 2012). (Ex. 6). 24. The Final Order was appealed to the Florida First District Court of Appeal by the Department. On June 5, 2013, the First District issued its written decision affirming the Final Order. Department of Juvenile Justice v. Okaloosa County, Case No. 1D12-3929, 113 So. 3d 1074 (Fla. 1st DCA 2013). (Ex. 7). The opinion agreed that the Department s interpretation of section 985.686, was improper, and that the ALJ correctly invalidated the Challenged Rules. 25. All parties acknowledge that the Challenged Rules are now void. 9

The Department s Recalculation of the Annual Reconciliation for FY 10-11 26. The Department presently acknowledges that its FY 10-11 Annual Reconciliation was based on invalid rules and does not comply with section 985.686, Florida Statutes. The Department further acknowledges that the Counties have been overcharged for their statutory portion of the costs of secure juvenile detention for FY 10-11 based on the Annual Reconciliation. 27. The parties agree that Final Court Disposition as contained in section 985.686, Florida Statutes, and based on the decision of the First District Court of Appeal, means a disposition order entered by a court of competent jurisdiction, including an order sentencing a juvenile to commitment to the Department, or other private or public institution as allowed by law, placing the juvenile on probation, or dismissing the charge. 28. The parties further agree that a Predispositional Day means any secure detention day occurring prior to the day on which a Final Court Disposition is entered. Predispositional day does not include any secure detention day after a juvenile has been sentenced to commitment or placed on probation, or is waiting for release after dismissal of a charge. 10

29. The Department specifically acknowledges that it shall remain responsible for all detention days which are not Predispositional Days, for all detention days of juveniles who reside out of state or whose residency cannot be determined, and for detention days of fiscally constrained counties. 30. For purposes of the FY 10-11 Reconciliation, the parties additionally agree that the Actual Costs assessed to each County pursuant to section 985.686, Florida Statutes, can be calculated based on each County s number of Predispositional Days for juveniles residing in that County, multiplied by the actual cost per day for secure juvenile detention care. 31. In acknowledgment of the above, and in an effort to comply with the requirements of section 985.686, Florida Statutes, and the First District Court of Appeal s decision invalidating the Department s cost sharing rules, the Department has published a recalculation of the amounts properly assessed to the Counties for their respective actual costs of predisposition secure juvenile detention for FY 10-11 ( FY 10-11 Recalculation ). (Ex. 8). 32. In an effort to resolve the factual disputes in this case, all parties stipulate that the FY 10-11 Recalculation sets forth the proper 11

amount assessed to each of the Counties for their respective actual costs of secure juvenile detention care for FY 10-11. 33. The parties also stipulate that the amount provided in the last column of the FY 10-11 Recalculation titled Net Debit/(Credit) Due accurately sets forth the amounts overpaid or underpaid by each of the Counties for FY 10-11. The amounts shown as credits are due to the Counties to this administrative proceeding as part of the reconciliation for FY 10-11 required pursuant to section 985.686, Florida Statutes. These amounts are as follows: COUNTY AMOUNT OVERPAID ALACHUA $633,639.79 BAY $696,623.36 BROWARD $2,823,882.23 CHARLOTTE $391,274.34 HERNANDO $376,278.88 HILLSBOROUGH $3,499,384.82 INDIAN RIVER $272,999.28 LAKE $335,125.65 LEE $1,900,873.36 MANATEE $1,107,963.09 12

MARION $164,175.28 MIAMI-DADE $4,978,164.55 NASSAU $68,232.38 OKALOOSA $833,758.89 ORANGE $3,964,662.21 PINELLAS $2,153,163.51 POLK $2,476,765.89 SEMINOLE $1,748,435.61 ST. LUCIE $900,090.51 VOLUSIA $3,142,769.14 WALTON $112,197.29 34. Accordingly, the FY 10-11 Recalculation, Exhibit 8 hereto, is acknowledged by all parties as the Department s Final Annual Reconciliation as to the Petitioning and Intervening Counties to this administrative proceeding. The amounts set forth in the FY 10-11 Recalculation, Exhibit 8 hereto, are incorporated as if fully set forth herein. Counties Which Have Opted-Out of State Secure Juvenile Detention Care Cost Sharing 13

35. Pursuant to section 985.686(10), Florida Statutes, Counties may currently opt out of secure juvenile detention cost sharing, and may provide locally for detention care for preadjudicated juveniles. 36. The Department acknowledges that three of the Counties, Marion County, Polk County, and Seminole County are no longer part of the cost sharing system pursuant to section 985.686(10), Florida Statutes, as of the following dates: Marion County November 2010; Polk County October 2011; Seminole County April 2012. 37. Because Marion County, Polk County, and Seminole County, are no longer part of the cost sharing system, the Department acknowledges that credits are not an appropriate remedy as to these Counties. Department Funding 38. The Department has historically made reversions of unspent general revenue including during the 10-11 fiscal year. These unspent and reverted amounts are returned to the State at the end of the State fiscal year. For the Department as a whole, these amounts are as follows: FY 2008-09: $9,975,999 FY 2009-10: $13,349,648 FY 2010-11: $22,634,870 FY 2011-12: $14,990,967 14

FY 2012-13 : $27,182,119 (Ex. 9). These reversions total $88,133,603 over the five fiscal years as shown above. 39. Of the above reverted amounts of General Revenue, the following amounts were reverted from the Department s detention budget: FY 2008-09: $1,018,095 FY 2009-10: $784,753 FY 2010-11: $3,092,041 FY 2011-12: $996,531 FY 2012-13 : $10,401 (Ex. 10). These reversions total $5,901,821 over the fiscal years as shown above. 40. In past administrative challenges brought by a County based on the Department s failure to properly calculate costs of secure juvenile detention care, the Department has made the application of credits part of its Final Order where the County s challenge ultimately proved successful. See Hillsborough County v. Department of Juvenile Justice, DOAH Case No. 07-4398 (Final Order June 4, 2008). (Ex. 11). 41. The Counties assert that based on the FY 10-11 Recalculation, the Counties are entitled pursuant to section 985.686, Florida Statutes, to the 15

application of credits, or, where credits cannot be applied as set forth above, reimbursements. The Department will not agree to apply any credits or repayments at this time based on the FY 10-11 Recalculation because the Department s position is this is an issue between the Counties and the Legislature. Because of this fundamental disagreement, the parties are unable to fully resolve all issues to this administrative proceeding, other than the facts and procedures stipulated to herein. The Counties do not waive any rights or remedies with regard to the recovery of any overpayments made to the Department, as set forth in paragraph 33 and Exhibit 8 to this Joint Stipulation. Exhibits 42. All Exhibits attached to this Joint Stipulation are incorporated herein. The parties agree to the authenticity of all Exhibits and stipulate that they are properly part of the official record of these administrative proceedings, and constitute competent substantial evidence for the facts stipulated herein. 16

STIPULATION OF PROCEDURE For the purpose of expediting these administrative proceedings, the parties to this Joint Stipulation further agree to the following procedures and timelines. 1. This Joint Stipulation shall be filed with the Division of Administrative Hearings ( DOAH ) after execution by all of the parties, and shall become a part of the official record, including the exhibits attached hereto and referenced herein. Upon the filing of the Joint Stipulation, the parties shall jointly file a motion requesting that DOAH relinquish jurisdiction to the Department for entry of a Final Order. 2. Upon relinquishment of jurisdiction from DOAH, the parties will have 15 days to file Proposed Final Orders with the Department agency clerk. The Department will enter a Final Order within 30 days of relinquishment of jurisdiction. The Final Order will incorporate the above stipulation of facts, and will attach a copy of the FY 10-11 Recalculation, Exhibit 8 hereto, as the Amended and Final Reconciliation for the Counties. This time period may only be extended based on further written agreement of all the parties. The Department acknowledges that the Counties will be prejudiced by any delay of the timelines set forth herein. 17

3. The Counties expressly reserve the right to appeal the Final Order of the Department, excepting any factual issue which is stipulated to herein. 18

EXHIBITS TO STIPULATION 1. Annual Reconciliations of the Department FY 2005/2006 through FY 2011/2012 (Composite) 2. Chapter 63G-1, Fla. Admin. Code (Adopted July 16, 2006; Repealed July 6, 2010) 3. Chapter 63G-1 (Adopted July 6, 2010) 4. June 1, 2010 letter to the Counties and FY 10-11 Estimate 5. October 24, 2011 letter to the Counties and FY 10-11 Annual Reconciliation 6. Okaloosa County et al. v. Department of Juvenile Justice, DOAH Case No. 12-0891RX (Final Order July 17, 2012). 7. Department of Juvenile Justice v. Okaloosa County, Case No. 1D12-3929, 113 So. 3d 1074 (Fla. 1st DCA 2013). 8. 2010-11 Secure Detention Cost Sharing Billing NEW Methodology ( FY 10-11 Recalculation ) 9. Department of Juvenile Justice Reversions of General Revenue, Fiscal Years 2008-09 through 2012-13. 10. Department of Juvenile Justice Reversions of General Revenue for Detention Fiscal Years 2008-09 through 2012-13. 19

11. Hillsborough County v. Department of Juvenile Justice, DOAH Case No. 07-4398 (Final Order June 4, 2008) 20

STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS COUNTY OF VOLUSIA, A POLITICAL SUBDIVISION OF THE STATE OF FLORIDA; PINELLAS COUNTY, FLORIDA; OKALOOSA COUNTY, FLORIDA; HERNANDO COUNTY, FLORIDA; NASSAU COUNTY, FLORIDA; ST. LUCIE COUNTY, FLORIDA; WALTON COUNTY, FLORIDA; ORANGE COUNTY, FLORIDA; LAKE COUNTY, FLORIDA; BAY COUNTY, FLORIDA; SANTA ROSA COUNTY, FLORIDA; HILLSBOROUGH COUNTY, FLORIDA, Petitioners, Case Nos. 13-1442, 13-2906, 13-2907, 13-2908, 13-2909, 13-2910, 13-2911, 13-2912, 13-2913, 13-2914, 13-2915 13-4390 POLK COUNTY, FLORIDA, CHARLOTTE COUNTY, FLORIDA, MIAMI-DADE COUNTY, FLORIDA, BROWARD COUNTY, FLORIDA, MANATEE COUNTY, FLORIDA, ALACHUA COUNTY, FLORIDA, LEE COUNTY, FLORIDA, and INDIAN RIVER COUNTY, FLORIDA, vs. Intervenor, DEPARTMENT OF JUVENILE JUSTICE, Respondent. / NOTICE OF FILING JOINT STIPULATION OF FACTS AND PROCEDURE Petitioners and Intervenors, Charlotte County, Manatee County, Nassau County, Okaloosa County, Polk County, St. Lucie County, and Walton County, by and through their undersigned counsel, and on behalf of all parties, hereby give notice of filing the Joint Filed December 17, 2013 3:51 PM Division of Administrative Hearings

Stipulation of Facts and Procedure in the above-referenced case, entered into by all parties to these consolidated proceedings. Respectfully submitted, /s/ Carly J. Schrader GREGORY T. STEWART Florida Bar No. 203718 CARLY J. SCHRADER Florida Bar No. 14675 LYNN M. HOSHIHARA Florida Bar No. 41194 Nabors, Giblin & Nickerson, P.A. 1500 Mahan Drive, Suite 200 Post Office Box 11008 Tallahassee, Florida 32302 (850) 224-4070 (850) 224-4073 (Facsimile) gstewart@ngnlaw.com legal-admin@ngnlaw.com cschrader@ngnlaw.com lhoshihara@ngnlaw.com COUNSEL FOR OKALOOSA, NASSAU, ST. LUCIE, WALTON, POLK, CHARLOTTE, AND MANATEE COUNTIES JOHN R. DOWD Florida Bar No. 118265 County Attorney Okaloosa County Attorney s Office 901 Eglin Parkway Post Office Box 404 Shalimar, Florida 32579 (850) 651-1679 (850) 651-2828 (Facsimile) jdowd@co.okaloosa.fl.us CO-COUNSEL FOR OKALOOSA COUNTY DAVID A. HALLMAN Florida Bar No. 0825794 County Attorney Nassau County Attorney s Office 96135 Nassau Place, Suite 6 Yulee, Florida 32097 (904) 548-4590 (904) 321-2658 (Facsimile) dhallman@nassaucountyfl.com jbradley@nassaucountyfl.com CO-COUNSEL FOR NASSAU COUNTY DANIEL S. MCINTYRE Florida Bar No. 287571 St. Lucie County Attorney 2300 Virginia Avenue Fort Pierce, Florida 34982 (772) 462-1420 (772) 462-1440 (Facsimile) mcintyred@stlucieco.org SLCAttorney@stlucieco.org CO-COUNSEL FOR ST. LUCIE COUNTY MARK D. DAVIS Florida Bar No. 764700 Walton County Attorney Office of the County Attorney 161 East Sloss Avenue DeFuniak Springs, Florida 32435 (850) 892-8110 (850) 892-8471 (Fax) Email: mdd@co.walton.fl.us sincrissie@co.walton.fl.us CO-COUNSEL FOR WALTON COUNTY 2

MICHAEL S. CRAIG Florida Bar No. 797545 Polk County Attorney JANET MCDONALD Florida Bar No. 286060 Assistant County Attorney Drawer AT01 Post Office Box 9005 Bartow, Florida 33831-9005 (863) 534-6730 (863) 534-7654 (Fax) michaelcraig@polk-county.net janetmcdonald@polk-county.net CO-COUNSEL FOR POLK COUNTY JANETTE S. KNOWLTON Charlotte County Attorney Florida Bar No. 77232 DANIEL E. GALLAGHER Assistant County Attorney Florida Bar No. 872822 18500 Murdock Circle, Room 573 Port Charlotte, Florida 33948 (941) 743-1330 (941) 743-1550 (Fax) janette.knowlton@charlottefl.com daniel.gallagher@charlottefl.com CO-COUNSEL FOR CHARLOTTE COUNTY MITCHELL O. PALMER Florida Bar No. 351873 County Attorney JAMES A. MINIX Florida Bar No. 239240 Assistant County Attorney Manatee County Post Office Box 1000 Bradenton, Florida 34206-1000 (941) 745-3750 (941) 749-3089 (Facsimile) mitchell.palmer@mymanatee.org jim.minix@mymanatee.org CO-COUNSEL FOR MANATEE COUNTY CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished by Electronic Mail to the following parties, this 17th day of December, 2013. /s/ Carly J. Schrader CARLY J. SCHRADER 3

SERVICE LIST Brian D. Berkowitz, General Counsel Michael J. Wheeler Assistant General Counsel Department of Juvenile Justice 2737 Centerview Drive Tallahassee, Florida 32399-3100 brian.berkowitz@djj.state.fl.us michael.wheeler@djj.state.fl.us Counsel for the Department of Juvenile Justice Robert Livingston, IV Assistant County Attorney Alachua County Post Office Box 5547 Gainesville, Florida 32627 rl@alachuacounty.us Counsel for Alachua County Terrell K. Arline County Attorney Jennifer W. Shuler Assistant County Attorney Bay County Attorney's Office 840 West 11th Street Panama City, Florida 32401-2336 tarline@baycountyfl.gov jshuler@baycountyfl.gov Counsel for Bay County Joni Armstrong Coffey, County Attorney Adam Katzman Assistant County Attorney Governmental Center, Suite 423 115 South Andrews Avenue Fort Lauderdale, Florida 33301 akatzman@broward.org mmcghie@broward.org Counsel for Broward County Janette S. Knowlton Charlotte County Attorney Daniel E. Gallagher Assistant County Attorney 18500 Murdock Circle, Room 573 Port Charlotte, Florida 33948 janette.knowlton@charlottefl.com daniel.gallagher@charlottefl.com Co-Counsel For Charlotte County Garth Coller County Attorney Jon A. Jouben Assistant County Attorney Shaun Amarnani Assistant County Attorney Hernando County Attorney s Office 20 N. Main Street, Suite 462 Brooksville, Florida 34601 garthc@co.hernando.fl.us jjouben@co.hernando.fl.us samarnani@co.hernando.fl.us CAO@co.hernando.fl.us Counsel for Hernando County Stephen M. Todd Senior Assistant County Attorney Hillsborough County Attorney s Office Post Office Box 1110 Tampa, Florida 33601-1110 todds@hillsboroughcounty.org matthewsl@hillsboroughcounty.org britec@hillsboroughcounty.org Counsel for Hillsborough County Kate Pingolt Cotner Indian River County Attorney s Office 1801 27th Street Vero Beach, Florida 32960-3365 kcotner@ircgov.com Counsel for Indian River County 4

Sanford A. Minkoff Lake County Attorney Melanie Marsh Deputy County Attorney Post Office Box 7800 315 West Main Street, Suite 335 Tavares, Florida 32778-7800 sminkoff@lakecountyfl.gov mmarsh@lakecountyfl.gov Counsel for Lake County Ashley D. Roberts Assistant County Attorney 2115 Second Street Post Office Box 398 Fort Myers, Florida 33902-0398 aroberts@leegov.com trialsection@leegov.com Counsel for Lee County Mitchell O. Palmer, County Attorney James A. Minix Assistant County Attorney Manatee County Post Office Box 1000 Bradenton, Florida 34206-1000 mitchell.palmer@mymanatee.org jim.minix@mymanatee.org Co-Counsel For Manatee County R. A. Cuevas, Jr. Miami-Dade County Attorney Estephanie Resnik Assistant County Attorney Cynthia Johnson-Stacks Assistant County Attorney Stephen P. Clark Center 111 N.W. 1st Street, Suite 2810 Miami, Florida 33128 resnik@miamidade.gov cjs2@miamidade.gov Counsel for Miami-Dade County David A. Hallman County Attorney Nassau County Attorney s Office 96135 Nassau Place, Suite 6 Yulee, Florida 32097 dhallman@nassaucountyfl.com jbradley@nassaucountyfl.com Co-Counsel For Nassau County John R. Dowd County Attorney Okaloosa County Attorney s Office 901 Eglin Parkway Post Office Box 404 Shalimar, Florida 32579 jdowd@co.okaloosa.fl.us Co-Counsel For Okaloosa County Linda Brehmer Lanosa Assistant County Attorney Orange County Attorney s Office 201 South Rosalind Avenue Third Floor Orlando, Florida 32801 Linda.BrehmerLanosa@ocfl.net Martina.Desjardins@ocfl.net Maria.Vargas@ocfl.net Counsel for Orange County Carl E. Brody Senior Assistant County Attorney Christy Donovan Pemberton Senior Assistant County Attorney Pinellas County 315 Court Street, Sixth Floor Clearwater, Florida 33756 cbrody@pinellascounty.org cpembert@pinellascounty.org Counsel for Pinellas County 5

STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS COUNTY OF VOLUSIA, A POLITICAL SUBDIVISION OF THE STATE OF FLORIDA; PINELLAS COUNTY, FLORIDA; OKALOOSA COUNTY, FLORIDA; HERNANDO COUNTY, FLORIDA; NASSAU COUNTY, FLORIDA; ST. LUCIE COUNTY, FLORIDA; WALTON COUNTY, FLORIDA; ORANGE COUNTY, FLORIDA; LAKE COUNTY, FLORIDA; BAY COUNTY, FLORIDA; SANTA ROSA COUNTY, FLORIDA; and HILLSBOROUGH COUNTY, FLORIDA, Petitioners, POLK COUNTY, FLORIDA, CHARLOTTE COUNTY, FLORIDA, MIAMI-DADE COUNTY, FLORIDA, BROWARD COUNTY, FLORIDA, MANATEE COUNTY, FLORIDA, ALACHUA COUNTY, FLORIDA, LEE COUNTY, FLORIDA, and INDIAN RIVER COUNTY, FLORIDA, Case Nos. 13-1442, 13-2906, 13-2907, 13-2908, 13-2909, 13-2910, 13-2911, 13-2912, 13-2913, 13-2914, 13-2915, 13-4390 Intervenor, vs. DEPARTMENT OF JUVENILE JUSTICE, Respondent. / JOINT STIPULATION OF FACTS AND PROCEDURE

This Joint Stipulation of Facts and Procedure is entered into by and between the State of Florida, DEPARTMENT OF JUVENILE JUSTICE ( THE DEPARTMENT ) and VOLUSIA COUNTY, PINELLAS COUNTY, OKALOOSA COUNTY, HERNANDO COUNTY, NASSAU COUNTY, ST. LUCIE COUNTY, WALTON COUNTY, ORANGE COUNTY, LAKE COUNTY, BAY COUNTY, SANTA ROSA COUNTY, HILLSBOROUGH COUNTY, POLK COUNTY, CHARLOTTE COUNTY, MIAMI-DADE COUNTY, BROWARD COUNTY, MANATEE COUNTY, ALACHUA COUNTY, LEE COUNTY, and INDIAN RIVER COUNTY, (collectively Counties ), as set forth below. STIPULATION OF FACTS Secure Juvenile Detention Cost Sharing Legal Basis 1. The State is responsible for providing secure detention care to juveniles. Section 985.686, Florida Statutes, provides that the State and the Counties have a joint obligation to contribute to the financial support of secure juvenile detention care. 2. The Department is the state agency responsible for administering the cost-sharing requirements of section 985.686, Florida Statutes, regarding secure juvenile detention care. 2

Historic Implementation of Secure Juvenile Detention Cost Sharing 7. Since Fiscal Year ( FY ) 2005-2006, the Department has performed an annual reconciliation at the end of the State s fiscal year. (Composite Ex. 1). Through this annual reconciliation, the Department has historically determined the final amount allocated to each County for the actual cost of secure juvenile detention for the fiscal year, and then either credits the County for any overpayment, or debits the County for any underpayment made based on the estimated amount previously billed and paid by the County on a monthly basis. It is through the use of credits and debits that the Department adjusts for the amounts already paid by the County to arrive at the actual amount owed. 8. On July 16, 2006, the Department promulgated rules contained in Chapter 63G-1, Florida Administrative Code, which set forth definitions and formulated procedures for calculating the shared costs of juvenile detention between the State and the various Counties. (Ex. 2). These rules were repealed as of July 6, 2010, and in their place, the Department adopted Rules 63G-1.011, 63G-1.013, 63G-1.016, 63G-1.017, Florida Administrative Code, among others. (Ex. 3). 9. Beginning with the annual reconciliation for FY 2008-2009, the Counties began challenging the Department s allocation of predispositional 4

costs to the Counties based on an interpretation by the Department that final court disposition as stated in section 985.686, Florida Statutes, is equivalent to commitment to the Department. The Counties also challenged the Department s annual reconciliation on the basis that it used an estimate found in the General Appropriation Act for determining the year end actual costs assessed to the Counties. These interpretations made by the Department of section 985.686, Florida Statutes, were incorporated into the rules adopted by the Department on July 6, 2010. 10. The administrative challenge to the FY 2008-2009 annual reconciliation is currently on appeal before the First District Court of Appeal. 11. The administrative challenges to the FY 2009-2010 and FY 2010-2011 annual reconciliations are currently pending before the Division of Administrative Hearings. Fiscal Year 11-12 Annual Reconciliation 12. The Counties in this case all made monthly payments to the Department for secure juvenile detention based on the Department s estimate to the Counties. (Ex. 4). 13. On October 22, 2012, the Department published its Annual Reconciliation for FY 2011-12, setting forth each County s share of the 5

year-end cost of secure juvenile detention as determined by the Department, and assigned each paying County a debit or credit for any underpayment or overpayment ( FY 11-12 Annual Reconciliation ). (Ex. 5). The amounts set forth in the FY 11-12 Annual Reconciliation for each of the Counties are incorporated as if fully set forth herein. 14. The FY 11-12 Annual Reconciliation was issued by the Department under the provisions of Rules 63G-1.011, 63G-1.013, 63G- 1.016, 63G-1.017, Florida Administrative Code. 15. The FY 11-12 Annual Reconciliation applies to all Counties who are responsible for contributing payments to secure juvenile detention cost sharing. At the time the FY 11-12 Annual Reconciliation was done by the Department, any change to the numbers which applied to any one County had the potential to affect the numbers applied to all other Counties. Therefore, based on the methodology used by the Department, any agency action related to the amounts owed by any one County impacted on the agency action taken as to all other Counties. Standing of the Counties to Participate as Parties 16. The Counties challenged the FY 11-12 Annual Reconciliation and a final hearing is scheduled for February 24, 25, and 26, 2014. All of the Counties in this case have either timely filed petitions challenging the 6

Department s FY 11-12 Annual Reconciliation, or have timely intervened and have been granted full party status in this consolidated proceeding, and as such, each of the Counties to this stipulation are entitled to any and all available remedies. 17. Pursuant to Chapter 985, Florida Statutes, each County is mandated to budget for and pay the State, through the Department, for its costs of secure juvenile detention care for juveniles (who reside in that county) for the period of time prior to final court disposition. Each County has in fact made such payments to the Department, which payments are the subject of these proceedings. 18. Because the Department s FY 11-12 Annual Reconciliation determines the ultimate amount allocated to each County for its respective share of the actual costs of secure juvenile detention and also determines the amounts debited or credited to each County at the end of the fiscal year to reconcile the year-end costs with the estimated costs, the Counties are all substantially affected by the FY 11-12 Annual Reconciliation of the Department. Each County will suffer an injury in fact which is of sufficient immediacy to entitle it to a hearing in these proceedings. 19. Each County s substantial interest is of a type and nature which this proceeding is designed to protect, in that this proceeding determines 7

each County s cost of secure juvenile detention care for FY 11-12. All of the Counties have standing and are proper parties to this administrative proceeding. 20. Based on the fact that challenges to the FY 11-12 Annual Reconciliation were pending, the following Counties made no payment to the Department for the debit assigned or took no credit as part of the Annual Reconciliation: Bay County, Okaloosa County, and Orange County. All other Counties either paid the amount debited or took the amount credited based on the FY 2011-12 Annual Reconciliation. Rule Challenge 21. Several of the Counties also filed a challenge to Rules 63G- 1.011, 63G-1.013, 63G-1.016, 63G-1.017, Florida Administrative Code ( the Challenged Rules ), on which the FY 11-12 Annual Reconciliation was based. These Counties challenged the Rules on the basis that they were inconsistent with section 985.686, Florida Statutes, and therefore, an invalid exercise of delegated legislative authority. 22. Among other arguments, the Counties challenged the Rules on the basis that they adopted and implemented a new definition of commitment and held the Counties responsible for all costs of secure juvenile detention unless a juvenile was committed to the Department as part 8

of the court disposition of the juvenile s charge. As a result, the costs of tens of thousands of detention days were shifted from the State to the Counties. The Counties also challenged the Rules on the basis that they did not assess the Counties for the year-end actual costs of predispositional juvenile detention, but instead, assessed the Counties based on an estimate of the Counties costs contained in the General Appropriations Act. 23. On July 17, 2012, Administrative Law Judge ( ALJ ) W. David Watkins issued a Final Order agreeing with the arguments raised by the Counties, and invalidating the Challenged Rules as an invalid exercise of delegated legislative authority, causing overcharges to the Counties. Okaloosa County et al. v. Department of Juvenile Justice, DOAH Case No. 12-0891RX (Final Order July 17, 2012). (Ex. 6). 24. The Final Order was appealed to the Florida First District Court of Appeal by the Department. On June 5, 2013, the First District issued its written decision affirming the Final Order. Department of Juvenile Justice v. Okaloosa County, Case No. 1D12-3929, 113 So. 3d 1074 (Fla. 1st DCA 2013). (Ex. 7). The opinion agreed that the Department s interpretation of section 985.686, was improper, and that the ALJ correctly invalidated the Challenged Rules. 9

25. All parties acknowledge that the Challenged Rules are now void. The Department s Recalculation of the Annual Reconciliation for FY 11-12 26. The Department presently acknowledges that its FY 11-12 Annual Reconciliation was based on invalid rules and does not comply with section 985.686, Florida Statutes. The Department further acknowledges that the Counties have been overcharged for their statutory portion of the costs of secure juvenile detention for FY 11-12 based on the Annual Reconciliation. 27. The parties agree that Final Court Disposition as contained in section 985.686, Florida Statutes, and based on the decision of the First District Court of Appeal, means a disposition order entered by a court of competent jurisdiction, including an order sentencing a juvenile to commitment to the Department, or other private or public institution as allowed by law, placing the juvenile on probation, or dismissing the charge. 28. The parties further agree that a Predispositional Day means any secure detention day occurring prior to the day on which a Final Court Disposition is entered. Predispositional day does not include any secure detention day after a juvenile has been sentenced to commitment or placed on probation, or is waiting for release after dismissal of a charge. 10

29. The Department specifically acknowledges that it shall remain responsible for all detention days which are not Predispositional Days, for all detention days of juveniles who reside out of state or whose residency cannot be determined, and for detention days of fiscally constrained counties. 30. For purposes of the FY 11-12 Reconciliation, the parties additionally agree that the Actual Costs assessed to each County pursuant to section 985.686, Florida Statutes, can be calculated based on each County s number of Predispositional Days for juveniles residing in that County, multiplied by the actual cost per day for secure juvenile detention care. 31. In acknowledgment of the above, and in an effort to comply with the requirements of section 985.686, Florida Statutes, and the First District Court of Appeal s decision invalidating the Department s cost sharing rules, the Department has published a recalculation of the amounts properly assessed to the Counties for their respective actual costs of predisposition secure juvenile detention for FY 11-12 ( FY 11-12 Recalculation ). (Ex. 8). 32. In an effort to resolve the factual disputes in this case, all parties stipulate that the FY 11-12 Recalculation sets forth the proper 11

amount assessed to each of the Counties for their respective actual costs of secure juvenile detention care for FY 11-12. 33. The parties also stipulate that the amount provided in the last column of the FY 11-12 Recalculation titled Net Debit/(Credit) Due accurately sets forth the amounts overpaid or underpaid by each of the Counties for FY 11-12. The amounts shown as credits are due to the Counties to this administrative proceeding as part of the reconciliation for FY 11-12 required pursuant to section 985.686, Florida Statutes. These amounts are as follows: COUNTY AMOUNT OVERPAID ALACHUA $632,903.94 BAY $472,599.66 BROWARD $2,426,584.83 CHARLOTTE $249,382.11 HERNANDO $265,923.84 HILLSBOROUGH $2,779,165.84 INDIAN RIVER $249,311.88 LAKE $306,929.23 LEE $1,843,740.49 12

COUNTY AMOUNT OVERPAID MANATEE $1,105,029.72 MIAMI-DADE $2,354,399.72 NASSAU $92,175.12 OKALOOSA $1,105,671.65 ORANGE $3,338,184.67 PINELLAS $1,966,211.88 POLK $546,175.30 SANTA ROSA $228,520.24 ST. LUCIE $645,087.93 VOLUSIA $2,043,709.89 WALTON $129,239.26 34. Accordingly, the FY 11-12 Recalculation, Exhibit 8 hereto, is acknowledged by all parties as the Department s Final Annual Reconciliation as to the Petitioning and Intervening Counties to this administrative proceeding. The amounts set forth in the FY 11-12 Recalculation, Exhibit 8 hereto, are incorporated as if fully set forth herein. 13

Counties Which Have Opted-Out of State Secure Juvenile Detention Care Cost Sharing 35. Pursuant to section 985.686(10), Florida Statutes, Counties may currently opt out of secure juvenile detention cost sharing, and may provide locally for detention care for preadjudicated juveniles. 36. The Department acknowledges that Polk County is no longer part of the cost sharing system pursuant to section 985.686(10), Florida Statutes, as of October 2011. 37. Because Polk County is no longer part of the cost sharing system, the Department acknowledges that credits are not an appropriate remedy as to Polk County. Department Funding 38. The Department has historically made reversions of unspent general revenue including during the 11-12 fiscal year. These unspent and reverted amounts are returned to the State at the end of the State fiscal year. For the Department as a whole, these amounts are as follows: FY 2008-09: $9,975,999 FY 2009-10: $13,349,648 FY 2010-11: $22,634,870 FY 2011-12: $14,990,967 14

FY 2012-13 : $27,182,119 (Ex. 9). These reversions total $88,133,603 over the five fiscal years as shown above. 39. Of the above reverted amounts of General Revenue, the following amounts were reverted from the Department s detention budget: FY 2008-09: $1,018,095 FY 2009-10: $784,753 FY 2010-11: $3,092,041 FY 2011-12: $996,531 FY 2012-13 : $10,401 (Ex. 10). These reversions total $5,901,821 over the fiscal years as shown above. 40. In past administrative challenges brought by a County based on the Department s failure to properly calculate costs of secure juvenile detention care, the Department has made the application of credits part of its Final Order where the County s challenge ultimately proved successful. See Hillsborough County v. Department of Juvenile Justice, DOAH Case No. 07-4398 (Final Order June 4, 2008). (Ex. 11). 41. The Counties assert that based on the FY 11-12 Recalculation, the Counties are entitled pursuant to section 985.686, Florida Statutes, to the 15

application of credits, or, where credits cannot be applied as set forth above, reimbursements. The Department will not agree to apply any credits or repayments at this time based on the FY 11-12 Recalculation because the Department s position is this is an issue between the Counties and the Legislature. Because of this fundamental disagreement, the parties are unable to fully resolve all issues to this administrative proceeding, other than the facts and procedures stipulated to herein. The Counties do not waive any rights or remedies with regard to the recovery of any overpayments made to the Department, as set forth in paragraph 33 and Exhibit 8 to this Joint Stipulation. Exhibits 42. All Exhibits attached to this Joint Stipulation are incorporated herein. The parties agree to the authenticity of all Exhibits and stipulate that they are properly part of the official record of these administrative proceedings, and constitute competent substantial evidence for the facts stipulated herein. 16

STIPULATION OF PROCEDURE For the purpose of expediting these administrative proceedings, the parties to this Joint Stipulation further agree to the following procedures and timelines. 1. This Joint Stipulation shall be filed with the Division of Administrative Hearings ( DOAH ) after execution by all of the parties, and shall become a part of the official record, including the exhibits attached hereto and referenced herein. Upon the filing of the Joint Stipulation, the parties shall jointly file a motion requesting that DOAH relinquish jurisdiction to the Department for entry of a Final Order. 2. Upon relinquishment of jurisdiction from DOAH, the parties will have 15 days to file Proposed Final Orders with the Department agency clerk. The Department will enter a Final Order within 30 days of relinquishment of jurisdiction. The Final Order will incorporate the above stipulation of facts, and will attach a copy of the FY 11-12 Recalculation, Exhibit 8 hereto, as the Amended and Final Reconciliation for the Counties. This time period may only be extended based on further written agreement of all the parties. The Department acknowledges that the Counties will be prejudiced by any delay of the timelines set forth herein. 17

3. The Counties expressly reserve the right to appeal the Final Order of the Department, excepting any factual issue which is stipulated to herein. 18

EXHIBITS TO STIPULATION 1. Annual Reconciliations of the Department FY 2005/2006 through FY 2011/2012 (Composite) 2. Chapter 63G-1, Fla. Admin. Code (Adopted July 16, 2006; Repealed July 6, 2010) 3. Chapter 63G-1 (Adopted July 6, 2010) 4. FY 11-12 Estimate 5. October 22, 2012 letter to the Counties and FY 11-12 Annual Reconciliation 6. Okaloosa County et al. v. Department of Juvenile Justice, DOAH Case No. 12-0891RX (Final Order July 17, 2012). 7. Department of Juvenile Justice v. Okaloosa County, Case No. 1D12-3929, 113 So. 3d 1074 (Fla. 1st DCA 2013). 8. 2011-12 Secure Detention Cost Sharing Billing NEW Methodology ( FY 11-12 Recalculation ) 9. Department of Juvenile Justice Reversions of General Revenue, Fiscal Years 2008-09 through 2012-13. 10. Department of Juvenile Justice Reversions of General Revenue for Detention Fiscal Years 2008-09 through 2012-13. 19

11. Hillsborough County v. Department of Juvenile Justice, DOAH Case No. 07-4398 (Final Order June 4, 2008) 20