Background:
On November 6, 2018 Broward County voters approved a referendum for a one percent (1%) transportation surtax to address both infrastructure and operational transportation needs countywide.
The County intends to use a portion of the funds for Submitted Municipal Projects, ranked by the MPO and approved by an independent Oversight Board. For each applicable year that Broward County receives surtax proceeds, an amount equal to a minimum of 10%, less the amount directly paid for a community shuttle service, shall be used to fund Submitted Municipal Projects, provided that Transportation Surtax Proceeds may only be used to fund Submitted Municipal Projects from municipalities that are a party to the Transportation System Surtax Interlocal Agreement (ILA).
The City Commission approved the ILA on September 11, 2018, authorizing the appropriate City officials to execute the ILA, and authorized the appropriate City staff to take necessary actions to comply with the terms of the ILA. Subsequently, on September 26, 2018 the City Commission approved revisions to the ILA via Resolution No. 18-110, thereby not executing the initial Resolution for the ILA from the September 11, 2018 City Commission Meeting. There is no termination provision included in the ILA. In addition, the ILA may be amended without the City's approval if a majority of the municipalities that are a party to the ILA, cumulatively representing more than 50% of the County’s total population, agree to amend the ILA. On September 19, 2019 Broward County recorded the First Amendment to the ILA without the City of Sunrise approval and with approval of municipalities, representing more than 50% of the total County population.
On June 18, 2020, the County Commission approved Transportation Surtax funding for FY2020 (which included funding carried forward from FY2019) of more than $60 million for the applicable phases of the 97 statutorily eligible municipal capital projects recommended by the MPO, and up to $50 million for municipal rehabilitation and maintenance projects. The City has one (1) construction ready capital project that was recommended by the MPO and approved by the County Commission. Additionally, the City has two (2) rehabilitation and maintenance projects that were approved by the County Commission.
On January 26, 2021, the City Commission approved the Second Amendment to and Restatement of the Transportation System Surtax Interlocal Agreement, which outlined the criteria for evaluating process, documented the allocation for municipal capital projects, and included other minor changes.
One of the projects approved for Transportation Surtax Funding was the Replacement of Stormwater Pump Station No.5 (Surtax Project SUNR-025.1). On September 10, 2024 the City Commission approved a project specific Interlocal Agreement Surtax-Funded Municipal Transportation Project for Stormwater Pump Station No. 5 with Surtax funding in the amount of $1,167,785.74.
The $1,167,785.74 funding amount was based on 19.9% of the Engineer’s Opinion of Probable Cost (OPCC) submitted on July 28, 2022. Since the execution of the project specific ILA, the City issued a bid for this project and upon receiving and reviewing the bids, the final bid amount was higher than originally anticipated. The total amount from the apparent lowest bidder for the project to be considered for Commission approval is $9,861,037.25. This increase is mainly due to materials costs increases, tariffs, labor cost increases, and industry wide construction cost escalations that have occurred since the original OPCC was submitted on July 28, 2022.
City staff requested Broward County consideration for additional funding to address both the additional bid cost and the cost escalation. The request included adjustment of the Surtax funding to $1,962,346.40 corresponding to the 19.9% surtax eligible as documented by the City (originally $1,045,118.16). Additionally, the City requested the adjustment of Cost Escalation of $233,519.22, corresponding to 11.9% of the to-be-adjusted surtax funding (originally $122,667.58). This will result in a total Surtax funding amount of $2,195,865.62 (originally $1,167,785.74) for a total increase in funding in the amount of $1,028,079.88.
In order for the City to receive the additional funds, an Amendment to the ILA is necessary. This Amendment will also revise the project schedule based on when the bid is expected to be awarded to a Contractor. City staff reviewed the First Amendment to Stormwater Pump Station No.5 ILA and request permission of the City Commission to allow the Mayor to execute the ILA.