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HomeMy WebLinkAboutSubmittal-Miami Dade County Mayor Carlos Gimenez RE Senate Bill 898 and House Bill 385 PresentationEXHIBIT I Greater Miami Expressway Agency (GMX) Finance Plan for Adopted Work Plan Without Kendall Parkway 25% Rebate to Registered Miami -Dade SunPass Users Submitted into the public �� q Summary Chart record i r rt m(s) — (In thousands of dollars) on �%Il�l9 City Clerk Coverages 400,000 Bond Covenants are not met 350,000 300,000 250,000 ••••, •• 200,000 ........ . ................. 150,000 --- -— - , 100,000 50,000 0 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 Legend Conclusion Original Net Revenue (Revenues less operating costs) With the 25% Rebate to Registered Miami -Dade SunPass users in place, GMX will not be able to fund the entire adopted MDX Net Revenue after 25% Rebate to Registered Miami -Dade SunPass users work plan because it would be violating bond covenants. (If green line is within grey area, net revenues are not covering debt payments). — — — — — — — Debt service coverage required by lenders (If blue dotted line is above green solid line, bond covenants are not being met). Repayment of Debt 59% Svw�t���- M�ta�;t pine C �y y �or�os ��immv L �� Seise bid %1� ave �� �'{ Preliminary/Subject to Change Greater Miami Expressway Agency (GMX) Finance Plan of Work Program without Kendall Parkway $663,745,000 Future Bond Funding Scenario: Current Rates ) Without Kendall (estimated interest rates as of 2/8/2019) Summary Coverages Net Revenue & Coverage (in $Thousands) 250,000 Exhibit Years of Non -Compliance to Bond Indenture Covenants Submitted into the public recorUfi i1e/ AS) Z �A ANXVA City Clerk Coverage Summary _-��-- .. _. _.�.. .. /1, 200,000 �-v___,.__r _ - ', t 2022 1.222 2023 1.21x 150,000 1.19x 2025 1.16x 2026 ;v 2027 1.03x 2028 1.12x 2029 1.14x 2030 1.17x 2031 -------------------------------------- 14 100,000 ¢• 2033 t 2034 1.29x 2035 AP $ Kv 50,000 1.15x 2037 QSi 2038 1.35x 2038 1.35x 2020 2022 2024 2026 2028 2030 2032 2034 2036 2053 2038 2040 2042 2044 2046 2048 2050 2052 � Existing Senior Lien D/5 Omm Proposed Senior Principal QQM Proposed Senior Net Interest 325,585 101,392 -Net Revenue --- Senior D/S @ 1.50x --- Senior D/S @ 1.20x Coverage Summary Fiscal Year Senior 2020 1.30x 2021 1.24x 2022 1.222 2023 1.21x 2024 1.19x 2025 1.16x 2026 1.15x 2027 1.03x 2028 1.12x 2029 1.14x 2030 1.17x 2031 1.20x 2032 1.23x 2033 1.26x 2034 1.29x 2035 1.15x 2036 1.15x 2037 1.15x 2038 1.35x 2038 1.35x 2048 2.14x 2053 2.29x Ci''' w ndl�'n `i �s„ k a � � S "s� a ,�2. s, �.�- � i �' p.�;.1...._...8•��..1n`�. ,i:;_'�r �#='srt�r�°'�x'.-�'1 ._Zi} -rt P'."".�-�- v> y+s �•`.. t•.;?f'. 0 0 0 0 0 - 0 0 0 0 Prior & 0 (0) New Debt Par Amount by Year; Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Totals Reimbursements/Grants: Pygo Funding: Prior & New Debt Funding: 0 0 11,145 0 0 87,436 160,718 112,719 9,022 0 0 0 76,693 325,585 24,699 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11,145 164,129 632,744 Total Funding: 160,718 112,719 107,603 325,585 101,392 0 0 0 0 0 0 0 0 808,017 Work Program: -160,718 -112,719 -107,603 -325,585 -101,392 0 0 0 -808,017 Unfunded Portion: 0 0 0 0 0 0 0 0 0 0 0 0 0 (0) New Debt Par Amount by Year; Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Totals Interim/CP Draws 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bond Par Amount Issued 264,500 0 0 0 399,245 0 0 0 0 0 0 0 0 663,745 --. Ettduing Account BalancesFiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2034 2039 2048 2053 General Fund Unrestricted 141,852 141,852 141,852 141,852 141,852 144,646 145,848 147,332 148,901 150,704 235,397 320,768 910,682 2,327,511 Cumulative Excess UGF Available Paygo 0 0 0 0 0 2,795 3,996 5,480 7,049 8,852 93,545 178,916 768,831 2,185,660 General Fund Restricted 45,251 45,320 45,391 45,463 45,535 45,612 45,755 45,903 46,054 46,211 47,095 48,084 50,317 53,531 R&R Fund(Paygo Account only) 105,098 126,895 60,033 74,878 5,015 5,090 5,166 5,244 5,322 5,402 S1906 6,521 8,065 10,323 Construction Fund (Financing) 120,962 8,968 0 24,503 0 0 0 0 0 0 0 0 0 0 5/11/2018 1 of 1 Preliminary/Subject to Change EXHIBIT I/ Greater Miami Expressway Agency (GMX) Finance Plan for Adopted Workplan and Kendall Parkway 25% Rebate to Registered Miami -Dade SunPass Users Summary Chart Submitted into the publ' (In thousands of dollars) s record f r It m() _ on 4%I��y City Clerk Coverages 350,000 Start of Bond 300,000 Covenants are not met ---- 250,000wat---- ......... / -------------- ...... ....... •••• ............................... 200,000 ......................... ................ Cash= tfdlls ----- =SIfo7 150.000 __W _.. 100,000 50,000 0 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 ......................... Original Net Revenue (Revenues less operating costs) Net Revenue after 25% Rebate to Registered Miami -Dade Sun Pass Users (if solid green line is within grey area, net revenues are not covering debt payments). — — — — — — — Debt service coverage required by lenders (If blue line is above green line, bond covenants are not being met) Repayment of Debt Conclusion GMX cannot afford to pay for the adopted work program and the Kendall Parkway with the 25% Rebate to Registered Miami -Dade Sun Pass Users in place. Preliminary/Subject to Change Greater Miami Expressway Agency (GMX) Exhibit 11 Finance Plan of Entire Work Program including Kendall Parkway $2,148,930,000 Future Bond Funding Years of Non -Compliance to Bond Indenture Covenants Scenario: Current Rates / CurrentClP) 25% Toll Reduction on MDSunpass Users Only Years of Non -Compliance to Bond Indenture Covenants and Cash Shortfalls Submitted into the public (estimated interest rates as of 2/8/2019) record fyr it m(S) on y%�fig City Clerk Summary8i $)1:- n�, }" Yt'3 u�3..� lSr :_i cy . i -_'iS. '-ri^ .. .,�,`-. ft -T nMI� t 'e7 ., _. _ r •.? 5`C§ .�Y1 - prix•. Net Revenue & Coverage (in $Thousands) Coverage Summary 400,000 Fiscal Year Senior 0 2020 1.26x New Debt Par Amount by Year 2021 1.20x 350,000 .......-_.-__.._<_____________o____m..---.._____-- 2022 1.20x r^ -`---------�` 2023 1.20x 300,000 j 2024 1.20x r---------------------------------- 2025 1.20x 250,000r i-------------� 2026 1.20x '�- 2027 1.20x ------`� 7 200,000 2028 1.042 --��-�-- 2029 1-06z 10,078 2030 0.79x 150,000 - 2031 0.79x 0 2032 0.80x 100,000- 2033 0.81x 11,090 2034 0.83x 50,000 2035 0.77x 0 2036 0.77x 0ri, 2037 0.77x 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2038 2054 0.78x 169,626 2038 0.78x �i Existing Senior Lien D/S 9 Proposed Senior Principal x4494 Proposed Senior Net Interest -Net Revenue --- Senior D/S @ 1.50x --- Senior D/S @ 1.20x 2048 0.83x 179,818 2054 0.88x capt fI,LIEkSd +lr� ":h':°� $)1:- n�, }" Yt'3 u�3..� lSr :_i cy . i -_'iS. '-ri^ .. .,�,`-. ..-;._._-e-, r •.? 5`C§ .�Y1 � h.,, 0 0 0 Prior & 0 0 0 0 New Debt Par Amount by Year .r9�`4� ." 1MJ!7 T r ;Ycaa ".,-. *'9•Ar+ _ :`0 -}'r;1t Y a h. g? L� �,�i,a� },,I+ � - c � r 1.f.7:yr �+• c a� - .i -, -- +4R Fiscal Year FiscalYear 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Totals Reimbursements/Grants: 0 10,078 0 1,012 0 0 0 0 0 0 0 0 0 11,090 Paygo Funding: 0 117,248 0 24,194 0 0 0 0 0 0 0 11,129 17,055 169,626 Prior& New Debt Funding: 205,481 130,294 298,530 276539 179,818 163,309 81,422 10,079 38,524 164,445 142,140 73,208 0 1,763,790 Total Funding: 205,481 257,621 298,530 301,745 179,818 163,309 81,422 10,079 38,524 164,445 142,140 84,337 17,055 1,944,505 Work Program: -205,481 -257,621 -298,530 -301,745 -179,818 -163,309 -81,422 -10,079 -38,524 -164,445 -142,140 -84,337 -17,055 -1,944,505 Unfunded Portion: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 New Debt Par Amount by Year 1MJ!7 T r ;Ycaa ".,-. *'9•Ar+ _ :`0 -}'r;1t Y a h. g? L� �,�i,a� },,I+ � - c � r 1.f.7:yr �+• c a� - .i -, -- +4R Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Totals Interim/CP Draws 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bond Par Amount Issued 332,375 0 0 754,075 0 1,062,480 0 0 0 0 0 0 0 2,148,930 Ending Account Balances Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2034 2039 2048 2054 General Fund Unrestricted 141,852 141,852 141,852 141,852 141,852 141,852 141,852 141,852 141,852 141,852 163,447 182,265 222,062 276,827 Shortfall) Subsidy needed to Payfor DS 0 0 0 0 0 0 0 0 0 0 -212,468 -258,893 -405,679 -183,363 -1,060,403 General Fund Restricted 45,253 45,322 45,430 45,567 46,110 46,913 47,115 47,297 47,488 47,687 48,830 50,102 52,977 57,078 R&R Fund(Paygo Account Only) 100,386 143 14,891 3,577 4,874 7,236 10,206 17,461 19,151 21,061 0 0 0 0 Construction Fund (Financing) 129,517 0 274,890 0 650,018 491,909 414,422 407,659 373,211 212,498 0 0 0 0 5/11/2018 1 of 1 Preliminary/Subject to Change Transportation Authority of Miami -Dade (TAMD) Proposed Merger of MDX & HEFT 20% Toll Reduction for All MDX & HEFT Commuters Summary Chart (In thousands of dollars) EXHIBIT Ill Submitted into the public record fo It m(s) on (( City Clerk Coverages 900,000 800,000 200,000 600,000 500,000 ...................... ................... 400,000 ••" 300,000 200,000 --„-- — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — ----- --------------------------------------------- 100,000 0 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 ........................• Original combined MDX and HEFT Net Revenues (Revenues less operating expenses) Net Revenues after 20% reduction of tolls to all MDX and HEFT Commuters — — — — — — — Debt service coverage required by lenders Repayment of Debt Conclusions TAMD will be in compliance with debt covenant and therefore will be able to fund the entire MDX adopted work program and also pay for the Kendall Parkway. All MDX and HEFT roadway commuters will receive a 20% reduction from current toll rates. HEFT users will avoid CPI adjustments for inflation. Combined savings to MDX and HEFT users, $8.5 billion over 33 years. $1.85 Billion will be generated for additional transportation and transit projects. Preliminary/Subject to Change Transportation Authority of Miami -Dade (TAMD) Proposed Merger of MDX &HEFT EXHIBIT ill $1,145,355,000 Future Bond Funding (estimated interest rates as of 3/18/2019) Submitted into thepubli record�foo ite �(s� I � �- on t- City Clerk Summary ,jqhyg rn u;C' ._-ax r•-as�' Net Revenue & Coverage (in $Thousands) Coverage summary 900,000 Fiscal Year Senior All Req. 2020 1.81x 1.00x 800,000 2021 1.81x 1.00x 2022 1.54x 1.00x 700,000 2023 1.54x 1.00x 600,000 • • • •................... "' . • "'•• 2024 1.53x 1.00x ......• • ••.. 2025 1.53x 1.00x 500,000 ..................• 2026 1.53x S.00x 2027 1.55x 1.00x 400,000 • ••..•• 2028 1.56x 1.0ox ........................ 300,000 2029 1.61x 1.0Ox 2030 1.67x 1.0Ox 200,000 _ ____________�__�___________��____�____� �___ -__ �� _ =n______ __________��___�___.�__. 2031 1.72x 1.00x 100,000 ' g��¢ pK hs{ '� 44 2032 2033 1.79x 1.86x 1.00x 1.0Ox 0 2034 1.94x 1.0Ox 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2035 2036 1.M 1.83x 1.00x 1.07x t6 Existing Senior Lien DIS HEFT Acquisition 6�aar� Proposed Senior Principal 2037 1.85x 1.13x 66W Proposed Senior Net Interest -Same as above minus 20% Toll reduction --.- Senior D/S @ 1.40x 2038 2038 2.08x 2.08x 1.25x 1.25x' ---Senior D/5@1.20x •••••• Combined Toll Revenues after operating costs 2048 2.62x 2.54x 2053 2.83X 2.72x Capital Funding Sa>F�.•�'?,tr.,'£.t-t# Prior& tI*L;rT'�;e� Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Totals Reimbursements/Grants: 0 10,078 0 1,012 0 0 0 0 0 0 0 Paygo Funding: 0 184,033 0 68,621 0 18,676 75,000 1,022 3,275 6,422 1,022 0 3,275 0 6,422 11,090 367,768 Prior & New Debt Funding: 205,481 62,488 295,255 225,690 178,796 141,358 0 0 0 0 0 00 1,109,068 Total Funding: 205,481 256,599 295,255 295,323 178,796 160,034 75,000 1,022 3,275 6,422 1,022 3,275 6,422 1,487,925 Work Program: -205,481 -256,599 -295,255 -295,323 -178,796 -160,034 -75,000 -1,022 -3,275 -6,422 -1,022 -3,275 -6,422 -1,487,925 Unfunded Portion: 0 0 0 0 0 0 0 0 0 0 0 0 0 (0) New Debt Par Amount by Year'=;4�y�g1.. Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Totals Interim/CP Draws 0 0 0 0 0 0 0 _00 0 0 0 D 0 Bond Par Amount Issued 254,025 0 544,780 0 346,550 0 0 0 0 0 0 0 0 1,145,355 Ending Account Balances Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2034 2039 2048 2053 Total General Fund Unrestricted 141,993 142,138 142,289 142,445 142,659 142,881 143,112 143,350 143,659 143,981 145,790 487,509 1,683,385 2,748,081 External Transfer for Transportation 35,340 35,069 30,421 30,666 30,698 30,838 31,397 33,211 33,076 36,661 216,361 557,988 370,731 378,738 1,851,193 General Fund Restricted 48,563 48,707 48,942 49,185 49,835 50,751 51,067 51,368 51,681 52,006 53,861 55,935 60,625 63,745 R&R Fund(Paygo Account Only) 129,101 1,313 35,314 416 31,907 43,909 159 35,070 65,757 106,101 401,500 83,603 103,393 116,980 - 5/11/2018 1 1 of Preliminary/Subject to Change CARLOS A. GIMENEZ MAYOR MIAMI-DADE COUNTY April 8, 2019 The Honorable Manny Diaz, Jr. State Senator, District 36 The Capitol, 306 Senate Building 404 South Monroe Street Tallahassee, FL 32399-1100 Dear Senator Diaz: Submitted into the public record f r it m(s) on � A. 11—�- Ciry Clerk I am writing to you today to thank you for the initial steps you have taken to bring relief to our residents as it relates to tolls. There is more that we can do. By way of this letter, I would like to distinguish between where we are with the current legislation that is in the Senate, and where I think we need to be to achieve the greatest good for our residents. I would like to start by expressing my sincere appreciation for what the Senate has done to remove language from Senate Bill (SB) 898 that would have negatively impacted the County's use of the transit half -penny surtax for operations, maintenance, salaries and new construction — language that would have, in essence, had the unintended consequence of making Miami -Dade County ineligible for federal funding matches for our transportation projects. I would also like to thank you for making changes to SB 898 that give Miami -Dade County more local control over the governance of our transit system. I would like to tum your attention now to the discussion of where I think we can achieve the biggest gains for our residents, and that is by further amending the financial structure and governance of the newly -proposed state transit entity in Miami -Dade County that is being referred to as the "Greater Miami Expressway Authority" (GMX). As it stands in its current form, SB 898 does, among other things, the following: Dissolves the Miami -Dade Expressway Authority (MDX) and transfers the assets, liabilities and operations to the GMX, essentially replacing one authority with another. This would leave the Homestead Extension of the Florida Turnpike (HEFT) under the authority of the Florida Turnpike, an enterprise of the Florida Department of Transportation (FDOT). The GMX Board, as stated in SB 898, would consist of seven voting members who are permanent County residents and are not elected officials. The Governor would appoint three of these members, who must live in three different municipalities, and the Miami -Dade Board of County Commissioners would appoint the other four members -- two of whom must live in the unincorporated area of the County within 15 miles of the area with the highest amount of toll roads, and the other two living in differing municipalities. Creates the Florida Sunshine Rebate Program, which provides an automatic 25 percent toll reduction on GMX roads to anyone with a SunPass whose vehicle is registered in Miami -Dade County. STEPHEN P. CLARK CENTER • 111 N.W. FIRST STREET 9 29TH FLOOR • MIAMI, FLORIDA 33128-1930 • (305) 375-1880 9 FAX (305) 375-1262 The Honorable Senator Diaz Page 2 Submitted into the public record f r i em(s) `,-L...._._ on City Clerk Prohibits toll increases on GMX roads, including Consumer Price Index adjustments for inflation, until July 1, 2029, unless needed to make required debt payments, and that these toll increases would require a two-thirds vote of the GMX Board. The bill does not prevent MDX from designing or planning projects contained in its work program, but SB 898 also states that MDX may not incur debt or issue bonds for projects contained in the five-year work program approved by MDX in December 2018. I fully believe that SB 898 was crafted with the intention of bringing toll relief to the residents of Miami - Dade County. The plan that I have put forth in creating the Transportation Authority of Miami -Dade (TAMD) brings both toll relief and enhances the funding available to improve mobility throughout Miami -Dade County. It is important to note that in order to adjust our revenues for the five percent reduction that took effect on July 1, 2018, new traffic engineering reports are being generated. We anticipate having these reports within a week, at which time we will update for all projections herein. Major Distinctions between the TAMD and GMX Proposals 1) The 20 percent toll reduction on the TAMD benefits all commuters on both MDX and HEFT roadways. GMX's 25 percent toll relief benefits only those using MDX roadways who use SunPass and whose vehicles are registered in Miami -Dade — meaning that it will benefit only about 72 percent of the commuters on MDX-built roadways and none of the HEFT commuters. Also, it is perceived, if not in fact reality, that many of the economically disadvantaged among the commuting public are more cash reliant, i.e., don't have SunPasses, and, therefore, would not benefit proportionally from the 25 percent reduction of SunPass tolls. 2) Under the TAMD proposal, the overall savings to toll payers while traveling in Miami -Dade is projected to be $8.5 billion over 33 years. GMX is prohibited from raising tolls until July 1, 2029, unless needed to comply with bond indenture mandates. Assuming full compliance to the bond indenture over the 10 -year period (2020 through 2029), the amount of overall savings under the GMX plan would amount to about $475 million. 3) Our financial projections, which are developed based on engineering reports detailing expected work program sequencing and construction costs, reasonable assumptions of accessing the financial markets to fund construction and actual audited financial data demonstrate that with a 25 percent toll rebate program in place: a. GMX will not be able to complete MDX's work program (approved and adopted on December 5, 2018) because it will not be compliance with bond indenture requirements, which will prevent it from accessing public bond markets to fund work program projects. (See Exhibit 1). b. The Kendall Parkway is not currently in MDX's work program, but it is a major undertaking that has the support of the community and the Board of County Commissioners. GMX will absolutely not be able to fund the Kendall Parkway. (See Exhibit 11). 4) SB 898 permits the raising of tolls beginning on July 1, 2029. We believe that delaying the Kendall Parkway in order to be funded by future toll increases will effectively kill the project because of rising land costs in Miami -Dade County. STEPHEN P. CLARK CENTER 9 111 N.W. FIRST STREET 9 29TH FLOOR • MIAMI, FLORIDA 33128-1930 • 1305) 375-1880 The Honorable Senator Diaz Page 3 Submitted into the public recordi it (s) on l City Clerk These distinctions between the TAMD and GMX plans are why I stand behind my original concept that the new entity we create must merge MDX and the HEFT within Miami -Dade County into the newly created entity. We would do this by issuing $302 million of bonds to take out the share of Turnpike debt based on the percentage of lane miles the HEFT represents on the entire Turnpike system (11.7 percent) and not claiming a similar share of the Turnpike's unrestricted cash (based on the HEFT being at least a 16.7 percent share of Turnpike revenue generation), which amounts to about $141 million. By doing this, we would essentially be buying the HEFT assets and leaving the Turnpike with plenty of cash (it started off FY 2018-19 with $845 million of unrestricted cash) and bonding capacity (as evidenced by projected debt service coverage of an estimated 3.54 times even after the HEFT leaves the Turnpike System) to carry out its mission throughout the State of Florida for many years to come. The primary benefit of this proposal is that Miami -Dade County would get to keep all of the tolls generated by the HEFT and the MDX roadways right here in Miami -Dade County for the benefit of our residents. However, the merger of the HEFT with MDX would also bring many other major benefits to the residents we serve: 1) We would reduce all tolls on both MDX roadways and the HEFT by 20 percent, thereby saving our residents an estimated $4 billion over the 33 years of the life bonds issued to enable the merger. 2) We would not increase MDX toll rates by the Consumer Price Index (CPI) over the next 33 years. The revenues of the system would grow naturally as the population increases at an estimated 2 percent per year. While the Turnpike currently has automatic, annual CPI increases that have resulted in Turnpike tolls rising 43 percent since the first implementation of the CPI in 2012, the merger of MDX and the HEFT would allow us to keep tolls flat for CPI on the HEFT over the next 33 years. This will save our hard-working residents about $4.5 billion, assuming an average annual CPI increase of 2.2 percent. Currently, traffic appears to be being diverted off the HEFT into local streets so drivers can avoid paying the high tolls. This proposal would help that traffic stay on the HEFT. 3) We would not employ toll express lanes (tolls within tolls or managed lanes) on either MDX or HEFT roadways. 4) As with current practice on MDX, truckers on the HEFT will be charged for a maximum of only 3 axles, which will average a 50 percent overall savings on each trip compared to what truckers currently pay for between 4 and 8 axles on the HEFT. 5) An estimated $1.85 billion will be generated by the entity created by this merger over the next 33 years to improve mobility within Miami -Dade County; such funds can be used to match Federal or State grants or help prime Public Private Partnerships (133s) that would create or facilitate additional transportation, including transit options for our community. 6) The currently approved Capital Work Programs of both MDX and the HEFT will be completed with the assumption that current HEFT projects funded and under contract will be completed by June 30, 2020. 7) Lastly, and equally as important to our community, this new entity will be able to fund the construction of the Kendall Parkway, which will provide expressway and express bus STEPHEN P. CLARK CENTER • I 1 1 N.W. FIRST STREET 9 29TH FLOOR • MIAMI, FLORIDA 33128-1930 • 1305) 375-1880 The Honorable Senator Diaz Page 4 Submitted into the publ'c record f r i t m( S) �1�...� on 1 City Clerk service to 600,000 residents in southwest Miami -Dade County. The Kendall Parkway will greatly improve their quality of life. (See Exhibit 3). It is critically important to emphasize that the only way we will be able to give our residents close to $9 billion in savings -- the real toil relief they want and deserve -- is by merging MDX with the HEFT. And that brings me to my final point. Senator, regardless of whether we call this new entity the TAMD or GMX, it is also critically important that this new authority is comprised of elected officials from throughout Miami -Dade County. One of the main complaints about MDX in prior years was that there were no elected officials on the board to be held accountable to their constituents. I think we can agree that it doesn't make sense to subject ourselves to the criticisms of the past. There is also no need to re -invent the wheel when we create this new authority. I propose a structure similar to the 10 -member Central Florida Expressway Authority (CFX), which has a governing body made up of seven elected officials and three non -elected officials named by the Governor, with a few adjustments. The governing body of the Miami -Dade transportation authority would consist of the County Mayor, the Mayors of Miami, Miami Gardens, Hialeah, Homestead and Doral, and four elected officials appointed by the Governor. Of these four members, two members must live in the unincorporated area in the southern half of the County — west of the HEFT and south of 8"' Street -- and two members must live in municipalities within the County that are different from those listed above. I am also proposing that Miami -Dade County's transportation authority be given the ability to negotiate with FDOT to refine the details of the transference of the HEFT, including ensuring that the Turnpike and TAMD roadways and system remain continuous and seamless, and at the same level of road standard. I propose that FDOT report back to the Senate President, House Speaker and Miami -Dade Delegation no later than November 1, 2019, indicating whether an agreement related to the above issues has been reached and detailing the terms of the agreement, or detailing the status of the negotiations. The transportation authority may provide a response to the report no later than December 1, 2019. Attached to this letter, you will find language that would amend SB 898 to bring real toll relief to the residents of Miami -Dade County, while creating a governance and financial structure that includes elected officials who may be held accountable to the residents we serve. (See Attachment 4). To the extent that you need additional information about this proposal, my staff and I stand ready to assist you. The merger of MDX and HEFT into the Transportation Authority of Miami -Dade is the mechanism to keep tolls in check, by offering significant toll reductions, and to help fund additional transportation projects. Only the Florida Legislature has the power to allow its most populous county to use the revenues paid within the County to more effectively address the transportation needs of its residents. We respectfully ask for the Legislature to allow us to make the changes necessary for our distinct transportation needs. Sin Carlos A. Gimenez Mayor, Miami -Dade STEPHEN P. CLARK CENTER • 111 N.W. FIRST STREET 9 29TH FLOOR • MIAMI, FLORIDA 33128-1930 • (303) 375-1880 The Honorable Senator Diaz Page 5 Attachments c: The Honorable Governor Ron DeSantis The Honorable Lieutenant Governor Jeanette Nunez The Honorable Senate President Bill Galvano The Honorable Speaker of the House Jose R. Oliva The Honorable Representative Bryan Avila The Honorable Miami -Dade Legislative Delegation Shane Strum, Chief of Staff to Governor Ron DeSantis Submitted into the puc record f r i em(S) A on City Clerk STEPHEN P. CLARK CENTER • 111 N.W. FIRST STREET • 29TH FLOOR • MIAMI, FLORIDA 33128.1930 • 1305 375-1880 Greater Miami Expressway Agency (GMR) Finance Plan of Work Program without Kendall Parkway $663,745,000 Future Bond Funding Scenario: Current Rates ( Without Kendall (estimated Interest rates as of 2/812019) Summary D werages Net Revenue & Coverage (in $Thousands) 250,000 Years of Non -Compliance to Bond Indenture Covenants 200,000 _ .- -� - - i� -`% i I % 150,000 =-- 100,000 50,000 0 2020 2022 2024 CIPW Pandinr a Existing Sentor len DIS 2032 `�- Submitted into the pubjic record f r it 9) _ t _ Exhibit l an City Clerk \e \\ -------------------------------------- `------------------------------------- 111Ima"I'�' I I I I 1 1 2038 2040 2042 2044 2046 2048 2050 2052 Proposed Senior Principal 4faTPP Proposed Senior Net Interest -Net Revenue --- Senior DIS @ 1.50x --- Senior DIS @ 1.20x CavbraKe Srrnmary 1.15x Fiscal Year Senior 2020 1.30x 2021 1.24x 2022 1.22x 2023 1.21x 2024 111% 2025 1.16x 2026 1.15x 2027 1.03x 2028 1.12x 2029 1.14x 2030 1.178 2031 1.20x 2032 1.23x 2033 1.26x 2034 1.29x 2035 1.15x 2036 1.15x 2037 1.15x 2038 1.35x 2038 1.35a 2046 2.34x 2053 2..29x Work Program: -160,718 -112,719 -107,603 -325,585 -101,392 0 0 0 0 0 0 0 0 4808,017 uatrradad Portion: u 0 0 0 0 0 0 0 0 o a a 0 (0) New Debt Par Amount by Tear 10MMMMI. €:scaP:Year 2020 2021 2022 2023. 2884 _. 2835 2026 2027 2028 ION 211110 213.1 2032 Totals IntterinV" Drawn 0 6 0 0 0 0 0 0 0 0 0 0 0 0 Bond Par Amount Issued 264,500 0 0 0 399,245 0 0 0 0 0 0 0 0 663,745 Ending Arc.ount Balances FtM41Teor Prior & 2121 2022 2023 2024 2025 2026 2027 2024 2029 2034 2039 2048 2053 FbwlYear 23130 W1 2022 2023 2024 2025 2426 2027 2028 2024 2030 2031 2032 Trrals i6etmbwsexnentaxAafar 0 0 13,145 0 0 0 0 0 0 0 0 0 0 11,1.45 Paygo Funding: 0 0 87,436 0 76,693 0 0 0 0 0 0 0 0 164,129 Prior & Naw Delo Funding: 160,718 112,739 9,022 325,585 24,699 0 0 0 0 0 0 0 0 632;744 Total FwAy. 160,718 112,719 107,603 325,585 103,392 0 0 0 0 0 0 0 0 ON1017 Work Program: -160,718 -112,719 -107,603 -325,585 -101,392 0 0 0 0 0 0 0 0 4808,017 uatrradad Portion: u 0 0 0 0 0 0 0 0 o a a 0 (0) New Debt Par Amount by Tear 10MMMMI. €:scaP:Year 2020 2021 2022 2023. 2884 _. 2835 2026 2027 2028 ION 211110 213.1 2032 Totals IntterinV" Drawn 0 6 0 0 0 0 0 0 0 0 0 0 0 0 Bond Par Amount Issued 264,500 0 0 0 399,245 0 0 0 0 0 0 0 0 663,745 Ending Arc.ount Balances FtM41Teor 2020 2121 2022 2023 2024 2025 2026 2027 2024 2029 2034 2039 2048 2053 General Fund Unrestricted 141,852 141,852 141,652 141,852 141,852 144,646 145,898 147,332 148,901 150,704 235,397 320,768 91002 2,327,511 CumukrOve Excess UGFAtalloble Paygo 0 0 0 0 0 2,795 3,996 5,480 7,049 9852 93,545 178,916 768,831 2,185,660 General Fund Restricted 45,251 45,320 45,391 45,463 45,535 45,612 45,755 45,903 46,054 46,211 47,095 48,084 50,317 53,531 R&R Fund (Paygo Aoeaunt Only) 105,098 126,895 60,033 74,878 5,015 5,090 5,166 5,244 5,322 5,402 51906 6,521 8,065 10,323 Construction Fund(FinanchV) 120,962 8,968 0 24,503 0 0 0 0 0 0 0 0 0 0 5/11/2018 1 of 1 Preliminary/Subject to Change Submitted into the public f Wiblt 11 Greater Miami Expressway Agency (GMX) record It m(5) R Finance Plon of Entire Work Program Including Kendall Parkway on City Clerk $2,148,930,000 Future Bond Funding Years of Non -Compliance to Bond Indenture' Scencido. Current Rotes J Current OPf 25X Toll Reduction on MD Sunpost Users Only Years of Non -Compliance to Bond Indenture Covenants and Cash Shortfalls (estimated Interest rates as of 2/8/20191 Summary Coverages Net Revenue & Coverage (in $Thousands) 400,000 350,000 --------------------------------------------------------.. Fiscal Year - 2020 1.26x 2021 1.20x 300,000 r 2023 1.20x 2024 L20x 2025 1.20x 250,000 j ------------• ' 2027 1.20x 2028 ♦---�t 2079 1 *wt 2030 0.79x 2031 0.79x 200,000 --------- ♦--J 2033 0.814 150,000 - 2035 0.77x 100,000 0.774 2037 0.77x 50,000 0.78x 20.3A Q, 735; 117,248 0 24,194 0 0 0 0 0 0 0 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 Prior & Now Debt Funding: aanwa Existing Senior Lien D/S Proposed Senior Principal 2naa4 Proposed Senior Net Interest -Net Revenue --- Senior D/S O 1.50x --- Senior D/S @ 1.20x Coverage Swnmary Prior & Fiscal Year Senior 2020 1.26x 2021 1.20x 2022 1.20x 2023 1.20x 2024 L20x 2025 1.20x 2026 1.20x 2027 1.20x 2028 1.044 2079 1 *wt 2030 0.79x 2031 0.79x 2032 0.80x 2033 0.814 2014 0.63A 2035 0.77x 2036 0.774 2037 0.77x 2038 0.78x 20.3A Q, 735; :{144 _ 0.834 2054 0..085 u Prior & 2021 20.22 7,029 2024 2025 2026 2027 2028 2029 2014 2039 2042 RudYAW 2030 21121 2022 2023 2014 am 2026 202'1 2028 2024 2050 20)1 2012 7111411110 222,062 0 10,478 0 11012 0 0 0 0 a 0 0 0 0 111090 Paygo Funding: 0 117,248 0 24,194 0 0 0 0 0 0 0 11,129 17,055 169,626 Prior & Now Debt Funding: 205,481 130,294 298.530 276,539 179,818 163,309 81,422 10.079 38,524 164,445 142,140 73,208 0 1,763,790 Tow Fwo&w 205,481 257,621 298,530 301,745 179,818 163,309 81,422 10,079 38,524 164,445 142,140 84,337 17,055 1,544,505 Work Program: -205,481 -257,621 -296,530 -301,745 -179,818 -163,309 -81,422 -10,079 -38,524 -164,445 -142,140 -84,337 -17,055 -1,944,505 utduttded Partlaxt: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ned Debt Par Nociant byyaar Flt4al Year 1020 2021 20n am 2024 2025 2026 2027 2028 3030 1030 2031 2032 Totals Int"kafCPOraw1 0 0 0 0 a 0 0 0 0 0 0 0 0 0 Bond Par Amount Issued 332,375 0 0 754,075 0 1,062,480 0 0 0 0 0 0 0 2,148,930 E nding ADoDunt Balances FbWYAW 2030 2021 20.22 7,029 2024 2025 2026 2027 2028 2029 2014 2039 2042 2054 General Fund ulrenticted 141.852 14LM 141,832 142,852 141,852 141,852 141,852 141AS2 141,232 141,152 163Aq 122,265 222,062 276,827 A'w*WISubth*neededtoPayforDS 0 0 0 0 0 0 0 0 0 0 -112,468 .258,893 -405,679 -183,363 -1,060,403 General Fund Restricted 45,253 45,322 45,430 45,567 46,110 46,913 47,115 47,297 47,488 47,687 48,830 50,102 52,977 57,071 R&R Fund (Paygo Account Qnty) 100,386 143 14,891 3,577 4,874 7,236 10,206 17,461 19,151 21,061 0 0 0 0 Construction Fund (Financing) 129,517 0 274,890 0 650,018 491,909 414,422 407,659 373,211 212,498 0 0 0 0 5/11/2018 101`1 Prellminary/Subject to Change Transportation Authority into the puby of Miami -Dade (TAMD) record f Ite $)fth EXHIBIT111 FT Proposed Merger of MDx & HE $1,145,355,OW Future Bond Funding on City Clerk (estimoted Interest races as Of .3f 18/2019) Summary 1020 2021 7022 2023 2028 2029 2034 Net Revenue &Coverage (In $Thousands) 2048 2053 Total 2024 2025 2026 2027 Gemirai Fund Unrestricted 141,993 Coverage SummaryFiscal 142,289 142,445 142,659 142,1181 143,112 143,330 143,659 143,981 145,M 487,509 1,683,385 year senior All Req. 900,000 30,421 30,666 30,698 30,838 31,397 33,211 33,076 36,661 2020 1.81x 1.0ox 378,738 1,851,193 General Fund Restricted 48,563 48,707 48,942 49,185 49,835 50,751 51,067 2021 1.81x 1.00x '� 55,935 60,625 63,745 R&R Fund (Pa"o, Account Only) 129,101 1,313 35,314 416 2022 1.54x 1.00x 700 0DO 65,757 106,101 401,500 83,603 103,393 116,980 5/11/2018 2023 1.54x 1.00x 1 ofl 2024 LS3x LOU 600,000.................... .• 2025 1.53x 1.00x '� 2026 1.53x 1.00x 500 000 .....................• ....... ................... 2027 S.SSx 1.00x .......••••.................................................. • ••••••• 400,000 •••• •• � 2028 1.56x 1.00x 2038 L61x LOOx ........................ 300,000 _ 2030 1AW Lam s----------------- --------- 2031 1.72x 1.00x 200,000 -i---•----��s•-.e------•- •�����•�•�����•�����..s���•�����•������•.���•e 2032 1.79x 1.00x ® ■ y 2033 1.86x OOK 100,000 "^ L OOK 0 R 2035 1.2034 811x LOON 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2W 2048 2050 2052 2036 1.83x 1.07x 2037 1.85x 1.13x aaean Existing Senior Uen D/5 aar• HEFT Acquisition Proposed Senior Principal 2038 2.08x 1.25x 00o0o Proposed Senior Net Interest -Same as above minus 20% Toll reduction --- Senior D/S @ 1.40x 2038 2ABX 1.750, --- Senior D/S @ 1.20x •••••• Combined Toll Revenues after operating costs 2048 2.Qx 154x 2053 2.3ax 2.72x Cspltsd WON Prior & Fiscal year 2020 7m 2022 2028 2024 am 2038 2087 1028 no 2030 2M 3082 Took kfrmb�Gwft 0 10,978 0 LOU 0 0 0 0 0 0 0 0 0 1.1.090 PaW Fwrdhrg: 0 184,033 0 68,621 0 18,676 75,000 1,022 3,275 6,422 1,022 3,275 6,422 367,755 Prier At Harr Debt Fundby 205,4!1 62AU 295,255 225,690 178,796 141,358 0 0 0 0 0 0 0 1,109.060 TOW Fwwhw 20504111 256,589 294255 293,323 178,796 190,034 75,000 1,022 3,275 6,422 X022 3,275 6,422 1,4VJ25 Work Program: -205,481 -256,599 -295,255 -295,323 -178,796 -160,034 -75,000 -1,022 -3,275 -6,422 .1,022 -3,275 -6,422 -1,487,925 1hNnadad Peaboast 0 0 0 0 0 0 0 0 0 0 0 0 0 (0) FAKWYOW 3010 3071 2022 2023 2074 2025 2076 21127 7001 2029 2080 2031 2032 TstMs bnKmvtp Ds4wa 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bond Par Amount Issued 254,025 0 544,780 0 346,550 0 0 O O 0 0 0 0 11143,33'3 Fbaiyar 1020 2021 7022 2023 2028 2029 2034 2039 2048 2053 Total 2024 2025 2026 2027 Gemirai Fund Unrestricted 141,993 142,138 142,289 142,445 142,659 142,1181 143,112 143,330 143,659 143,981 145,M 487,509 1,683,385 2,748,081 - External Transfer for Transportation 35,340 35,069 30,421 30,666 30,698 30,838 31,397 33,211 33,076 36,661 216,361 557,988 370,731 378,738 1,851,193 General Fund Restricted 48,563 48,707 48,942 49,185 49,835 50,751 51,067 51,368 51,681 52,006 $3,861 55,935 60,625 63,745 R&R Fund (Pa"o, Account Only) 129,101 1,313 35,314 416 31,907 43,909 159 35,070 65,757 106,101 401,500 83,603 103,393 116,980 5/11/2018 1 ofl Prehminary/Subjectto Change iI,1Tiittcd into the public ::cordo ite (s) ATTACHMENT 4 LkLL— City Clerk Section Effective upon the commencement of operations of the transportation authority as provided for in s. 338.273(1) of Transportation Authority Act, part I of chapter 348, Florida Statutes, consisting of ss. 348. 0001, 348. 0002, 348. 0003, 348. 0004, 348.0005, 348.0007, 348.0008, 348.0009, 348.0010, 348.0011, 348.00115, and 348.0012, is repealed. Section _. Section 338.271 through 338.281, Florida Statutes, are created to read: 338.271 Short Title. - Sections 338.271 through 338.281 shall be known and may be cited as the "Transportation Authority Act." 338.272. Definitions. - As used in the Transportation Authority Act, the term: (1) "Agency of the state" means and includes the state and any department of, or corporation, agency, or instrumentality heretofore or hereafter created, designated, or established by, the state. (2) "Transportation authority" means an authority established within a county as defined in s. 125.011(1) pursuant to the Transportation Authority Act which is a body politic and corporate and a public instrumentality, and an agency of the state. (3) "Department" means the Department of Transportation. (4) "Express written consent" means prior express written consent given in the form of a resolution adopted by a board of county commissioners. (5) "Expressway" means a street or hiqhway especially designed for through traffic, and over, from, or to which owners or occupants of abutting land or other persons have no right or easement or only.a limited right or easement of access, light, air, or view by reason of the fact that their property abuts upon Submitted into the pulic record f r it m(s) on City Clerk such limited access facility or for any other reason. Such highways or streets may be facilities from which trucks, buses, and other commercial vehicles are excluded; or they may be facilities open to use by all customary forms of street and highway traffic. (6) "Expressway system" means any and all expressways, including toll roads, within the geographic boundaries of the transportation authority and appurtenant facilities thereto, including, but not limited to, all approaches, roads, bridges, and avenues of access for such expressway, and public transportation facilities. (7) "Federal agency" means and includes the United States, the President of the United States, and any department of, or corporation, agency, or instrumentality heretofore or hereafter created, designated, or established by, the United States. (8) "Former authority" means an expressway authority within a county as defined in s. 125.011(1) that was established pursuant to the now repealed Florida Expressway Authority Act. (9) "Former Homestead Extension of the Florida Turnpike" as used in the Transportation Authority Act means that portion of the Homestead Extension of the Florida Turnpike in existence on the effective date of the Transportation Authority Act and which is within the boundaries of a county as defined in s. 125.011(1). (10) "Lane miles" as used in the Transportation Authority Act is calculated as the length of a road times the number of lanes. (11) "Managed lanes" shall mean a set of lanes within the toll road cross section that are separated from the general-purpose lanes, where the lanes are operated with a management scheme, such as lane use restrictions or variable tollincr, based on traffic flow, vehicle throughput, or both. (12) "Public transportation facility" means real and personal property, structures, improvements, buildings, personnel, equipment, plant, vehicle parking or other facilities, rights-of- Submitted into the public record :c it{' »(s) on City Clerk way, or any combination thereof used or useful for the purposes of transporting passengers by means of a street railway, elevated railway or quidewav, subwav, motor vehicle, motor bus, or anv bus or other means of conveyance operated by the county where the facilities of the transportation authority lie. (13) "Turnpike debt" means the State of Florida Department of Transportation Turnpike Revenue Bonds (various series), authorized by the Amended and Restated Resolution, adopted on May 17, 2005, approving the issuance of not to exceed $4,419,997,419.20 State of Florida Department of Transportation turnpike revenue bonds (various series) outstanding as of the effective date of the Transportation Authority Act. 338.273 Creation of a transportation authority and transfer of certain facilities.— (1) The transportation authority is hereby created pursuant to the Transportation Authority Act and shall begin operating no later than July 1, 2020. The transfer of the facilities of the former authority and the former Homestead Extension of the Florida Turnpike, and all agreements, assignment of agreements, or actions necessary to effectuate said transfer, and effectuate the requirements of the Transportation Authority Act, shall occur prior to July 1, 2020. (a) The transportation authority shall assume the assets, facilities, tangible and intangible property and any rights in such property, and any other legal rights and liabilities of the former authority. The transportation authority shall continue the system of tolls of the facilities of the former authority. (b) The transportation authority shall assume o.anership of the former Homestead Extension of the Florida Turnpike, and all assets, facilities, tangible and intangible property and any rights in such property, and any other legal rights and liabilities of the department with respect to the former Homestead Extension of the Florida Turnpike. The transportation authority shall collect Sul-,mitted into the public recoa 3 f r it m(s) 1% _ Z On City Clerk tolls of the facilities of the former Homestead Extension of the Florida Turnpike. The unrestricted net position generated by the former Homestead Extension of the Florida Turnpike up to the effective date of the Transportation Authority Act shall remain with the department. (2)(a)Effective upon the commencement of operations of the transportation authority as provided for in subsection (1), revenues collected on the facilities of the former authoritv shall be considered revenues of the transportation authority, but shall be subject to the lien of the trust indentures securing the bonds issued by the former authority. The transportation authority also assumes all liabilitv for bonds of the former authoritv. (b) Effective upon the commencement of operations of the transportation authority as provided for in subsection (1), revenues collected on the facilities of the former Homestead Extension of the Florida Turnpike shall be considered revenues of the transportation authority, but shall not be subject to the lien of any trust indenture securing turnpike debt and may be pledged as security for any debt issued by the transportation authority. (3) In consideration for the transfer of the former Homestead Extension of the Florida Turnpike, the transportation authority shall issue debt and establish an escrow fund to redeem $301,925,000 of turnpike debt. The debt issued by the transportation authority shall benefit from a proportional share of any debt service reserve established by the department as credit support for the turnpike debt. The proportionate share of the debt service reserve to be allocated by the department to the transportation authority as support for the debt issued by the transportation authority to redeem the turnpike debt shall be calculated by multiplying the total amount, of the debt service reserve supporting the turnpike debt by the percentage determined by dividing the lane miles of the area occupied by the former Homestead Extension of the Florida Turnpike by the total lane miles of the Florida Turnpike, each such valuation to be fixed as Submitted into the public record f it�rn(s) - IL on 4 City Clerk of the effective date of the Transportation Authority Act. (4) The transfer pursuant to this section is subject to all terms and covenants provided for the protection of the holders of the former authority's bonds or resolutions adopted in connection with the issuance of such bonds. Further, the transfer shall not impair the terms of the contract between the former authority and the bondholders, shall not act to the detriment of the bondholders, and does not diminish the security for the bonds. The transportation authority shall collect toll revenues and apply them to the payment of debt service as provided in the trust indentures or bond resolutions securing the debt issued by the former authority and to redeem $301,925,000 of turnpike debt as provided for in subsection (3). (5) After the transfer, the transportation authority may refinance all or a portion of the former authority's outstanding bonds. (6) Notwithstanding any other provision to the contrary, but subject to the provisions of subsections (2), (3) and (4), the transportation authority: (a) shall not require an automatic, annual increase of toll rates by the Consumer Price Index for any of the facilities of the former authority or the former Homestead Extension of the Florida Turnpike until January 1, 2053. (b) shall not establish managed lanes on any of its facilities. (c) shall, no later than 45 days following its first governing board meeting, reduce the toll rates charged on the former authority and the former Homestead Extension of the Florida Turnpike by 20 percent of the toll rate that was charged on those respective facilities on June 30, 2019. (d) shall charge any vehicle with 4 or more axles a toll rate for no more than a maximum of 3 axles. (7)(a) Notwithstanding any other provision to the contrary, fees generated from tolls on the facilities of the transportation Submitted into the public record fo itIII 11!s) LAI on City Clerk authority may be used: 1. To pay outstanding contractual and bond obligations of the former authority or of the department but only with respect to the facilities of the former Homestead Extension of the Florida Turnpike. 2. For the acquisition, planning, development, construction, expansion, operation, maintenance, reconstruction, and restoration of the expressway system and toll facilities of the transportation authority, and for any other purpose or power provided by the Transportation Authority Act. 3. To pay for projects of the former authority contained in the former authority's most recent five-year work program. 4. Pay for projects of the former Homestead Extension of the Florida Turnpike contained in the most recent Florida Department of Transportation District Six five-year work program. (b) Revenues generated annually in excess of those required to pay the expenses in paragraph (a) shall be used by the transportation authority to fund transit and transportation projects within a county as defined in s. 125.011(1). (8) Employees, officers, and members of the former authority may not sell, dispose, encumber, transfer, or expend assets of the former authority as reflected in the former authority's financial statements for the fiscal year ended June 30, 2018, other than in the ordinary course of business. For purposes of this section, incurring debt or issuing bonds for projects contained in the former authority's most recent five-year work program approved and adopted prior to the effective date of the Transportation Authority Act is not considered the ordinary course of business. Notwithstanding the foregoing, nothing contained herein shall prevent the former authority from designing and planning projects contained in the former authority's most recent five-year work program approved and adopted prior to the effective date of the Transportation Authority Act. Submitted into the public rec:or�di', f� >r i „t tf sl , Z on j City Clerk (9) Employees, officers, and members of the department or the Florida's Turnpike Enterprise may not sell, dispose, encumber, or transfer the former Homestead Extension of the Florida Turnpike, or assets that are specific to the former Homestead Extension of the Florida Turnpike, as reflected in the Florida's Turnpike Svstem's most recent financial statement or abnlicable capital plan. 338.274. Formation and membership. - (1)(a) The governing body of the transportation authority shall consist of: 1. the mayor of the county where the transportation authoritv is located; 2. the mayors of the cities of Doral, Hialeah, Homestead, Miami, and Miami Gardens; and 3. four persons appointed by the Governor, subject to senate confirmation, who shall hold elected office of which: a. two members must live in the unincorporated area south of 8 Street and west of the Homestead Extension of the Florida Turnpike; and b. two members must live in municipalities within the county, but not the same municipality or a municipality represented pursuant to subparagraph 2. 4. Appointees shall serve on a 4 -year rotational basis, except that the term of two of the initial appointments made by the Governor shall be for 2 years. (b) Members of the governing body of the transportation authority may be removed from office by the Governor for misconduct, malfeasance, misfeasance, or nonfeasance in office. (2) The governing body of the transportation authority shall elect one of its members as its chair and shall elect a secretary and a treasurer who need not be members of the transportation authoritv. The chair, secretary, and treasurer shall hold their SO,mitted into theP ub 'c rccord f r it m(s) i,_____ ,n City Clerk offices at the will of the transportation authoritv. The chair shall hold said office for a term of 2 years. A simple majority of the governing body of the transportation authority constitutes a quorum, and the vote of a majority of those members present is necessary for the governing body to take any action. A vacancy on the transportation authority shall not impair the right of a quorum of the transportation authority to exercise all of the rights and perform all of the duties of the transportation authority. (3) Upon the effective date of his or her appointment, or as soon thereafter as practicable, each appointed member of the transportation authority shall enter upon his or her duties. (4)(a) The transportation authority may employ an executive secretary, an executive director, its own counsel and legal staff, technical experts, and such engineers and employees, permanent or temporary, as it may require and shall determine the qualifications and fix the compensation of such persons, firms, or corporations. The transportation authority may employ a fiscal agent or agents; however, the transportation authority must solicit sealed proposals from at least three persons, firms, or corporations for the performance of any services as fiscal agents. The transportation authority may delegate to one or more of its agents or employees such of its power as it deems necessary, subject always to the supervision and control of the transportation authority. (b) Members of the transportation authority are entitled to receive from the transportation authority their travel and other necessary expenses incurred in connection with the business of the transportation authority as provided in s. 112.061, but they may not draw salaries or other compensation. (c) Members of the transportation authority shall comply with the applicable financial disclosure requirements of s. 8, Art. II of the State Constitution. (5) A member or the executive director of the transportation Submitter' into the pub 'c record �tgr'ite i (s) �, O° tCity Clerk authority may not: 1. Personally represent another person or entity for compensation before the transportation authority for a period of 2 years after vacation of his or her position. 2. After retirement or termination, have an emplovment or contractual relationship with a business entity other than an agency, as defined in s. 112.312, in connection with a contract in which the member or executive director Dersonally and substantially participated through decision, approval, disapproval, recommendation, rendering of advice, or investigation while he or she was a member or employee of the transportation authority. (6) The transportation authority's general counsel shall serve as the transportation authority's ethics officer. (7) Transportation authority board members, employees, and consultants who hold positions that may influence transportation authority decisions shall refrain from engaging in any relationship that may adversely affect their judgment in carrying out transportation authority business. To prevent such conflicts of interest and preserve the integrity and transparency of the transportation authority to the public, the following disclosures must be made annually on a disclosure form: 1. Any relationship that a board member, employee, or consultant has which affords a current or future financial benefit to such board member, employee, or consultant, or to a relative or business associate of such board member, employee, or consultant, and which a reasonable person would conclude has the potential. to create a prohibited conflict of interest. As used in this subsection, the term "relative" has the same meaning as rovided in s. 112.312. 2. Whether a relative of such board member, employee, or consultant is a registered lobbyist and, if so, the names of such ' ! red into the public f , o rte (s) II a City Clerk lobbyist's clients. Such names shall be provided in writing to the ethics officer. 3. Any and all interests in real property that such board member, employee, or consultant has, or that an immediate family member of such board member, employee, or consultant has, if such real property is located in, or within a 1/2 -mile radius of, any actual or prospective transportation authority roadway project. The executive director shall provide a corridor map and a property ownership list reflecting the ownership of all real property within the disclosure area, or an alignment map with a list of associated owners, to all board members, employees, and consultants. (8) The disclosure forms filed as required under paragraph 4)(c) must be reviewed bV the ethics officer or, if a form is filed by the general counsel, by the executive director. (9) The conflict of interest process shall be outlined in the transportation authoritv's code of ethics. The code of ethics policy shall be reviewed and updated by the ethics officer and presented for board approval at least once every 2 years. Employees shall be adequately informed and trained on the code of ethics and shall continuallv participate in onQoinQ ethics education. (10) Employees and consults of the transportation authority are prohibited from serving on the governing body of the transportation authority while employed by or under contract with the transportation authority. (11) The requirements of paragraphs (5)-(10) are in addition to reauirements that the members and the executive director of the transportation authority are required to follow under chapter 112. (12) Violations of paragraphs (5), (7), and (10) are ishable in accordance with s. 112.317. Submitted i9to the public recor.i i0/, iic n(s) on -_ — ! .tjj11.- , City Clerk (13) A finding of a violation of this subsection or chapter 112, or failure to comply within 90 days after receiving a notice of failure to comply with financial disclosure requirements, results in immediate termination from the governing body of the transportation authority. 338.275. Purpose and Powers. - (1)(a) The transportation authority may acquire, hold, construct, improve, maintain, operate, and own an expressway system. (b) The transportation authority, in the construction of an expressway system, shall construct expressways. Construction of an expressway system may be completed in segments, phases, or stages, in a manner which will permit the expansion of these segments, phases, or stages to the desired expressway configuration. The transportation authority, in the construction of an expressway system, may construct any extensions of, additions to, or improvements to, the expressway system or appurtenant facilities, including all necessary approaches, roads, bridges, and avenues of access, with such changes, modifications, or revisions of the project that are deemed desirable and proper. The transportation authority may only add additional expressways to an expressway system, under the terms and conditions set forth in the Transportation Authority Act, with the prior express written consent of the board of county commissioners of the county located within the geographic boundaries of the transportation authority, and only if such additional expressways are financially feasible, and are compatible with the existing plans, projects, and programs of the transportation authority. (2) The transportation authority may exercise all powers necessary, appurtenant, convenient, or incidental to the carrying out of its purposes, including, but not limited to, the following rights and powers: Submitted into the u li P — record f r it m(s) on I City Clerk (a) To sue and be sued, implead and be impleaded, and complain and defend in all courts. (b) To adopt, use, and alter at will a corporate seal. (c) To acquire, purchase, hold, lease as lessee, and use any franchise or property, real, personal, or mixed, tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes of the transportation authority and to sell, lease as lessor, transfer, and dispose of any property or interest therein at any time acquired by it. (d) To enter into and make leases, either as lessee or as lessor, in order to carry out the right to lease as set forth in this section. (e) To fix, alter, charge, establish, and collect tolls, rates, fees, rentals, and other charges for the services and facilities system, which tolls, rates, fees, rentals, and other charges must always be sufficient to comply with any covenants made with the holders of any bonds issued pursuant to the Transportation Authority Act, as well as to redeem $301,925,000 of turnpike debt as provided for in s. 338.273(3). (f) To borrow money, make and issue negotiable notes, bonds, refund bonds and other evidence of indebtedness, either in temporary or definitive form, of the transportation authority, which bonds or other evidence of indebtedness may be issued pursuant to the State Bond Act, or in the alternative, pursuant to the provisions of s. 338.276 (2) , to finance an expressway system within the geographic boundaries of the transportation authority, and to provide for the security of the bonds or other evidence of indebtedness and the rights and remedies of the holders of the bonds or other evidence of indebtedness. Any bonds or other evidence of indebtedness pledging the full faith and credit of the state shall only be issued pursuant to the State Bond Act. The transportation authority may refund any bonds previously issued, to the extent allowable by federal tax laws, to finance or Submitted into the public rec7vft-,­k)A-L fo nisi on 1City Clerk refinance an expressway system regardless of whether the bonds being refunded were issued by such transportation authority, an agency of the state, or a county. (q) To enter contracts and to execute all instruments necessary or convenient for the carrying on of its business. (h) Without limitation of the foregoing, to borrow money and accept grants from, and to enter into contracts, leases, or other transactions with, any federal agency, the state, any agency of the state, county, or any other public body of the state. i) To have the power of eminent domain, including the procedural powers granted under chapters 73 and 74. (j) To pledge, hypothecate, or otherwise encumber all or any part of the revenues, tolls, rates, fees, rentals, or other charges or receipts of the transportation authority, as security for all or anv of the oblicrations of the transportation authoritv. (k) To do all acts and things necessary or convenient for the conduct of its business and the general welfare of the transportation authority in order to carry out the powers granted to it by law. (3) Any provision of law to the contrary notwithstanding, the consent of any municipality is not necessary for any project of the transportation authority, whether or not the project lies in whole or in part within the boundaries of the municipality, if the project is consistent with the locally adopted comprehensive plan. However, if a project is inconsistent with the affected municipal comprehensive plan, the project may not proceed without a hearing pursuant to ss. 120.569 and 120.57, at which it is determined that the project is consistent with the adopted metropolitan planning organization transportation improvement plan, if any, and the applicable strategic regional plan, and at which regional interests are determined to clearly override the interests of the municipality. submitted into the public record f it s) on _ _ City Clerk (4) The transportation authority shall comply with all statutory requirements of general application which relate to the filing of any report or documentation required by law, including the requirements of ss. 189.015, 189.016, 189.051, and 189.08. (5) The transportation authority shall not undertake any construction that is inconsistent with the metropolitan planning organization's transportation improvement program and the county's comprehensive plan. (6) The transportation authority may finance or refinance the planning, design, acquisition, construction, extension, rehabilitation, equipping, preservation, maintenance, or improvement of a public transportation facility or transportation facilities owned or operated by the county, an intermodal facility or facilities, multimodal corridor or corridors, including, but not limited to, bicycle facilities or greenways that will improve transportation services within the county, or any programs or projects that will improve the levels of service on an expressway system, subject to approval of the governing body of such county after public hearing. (7) The governing body of the county may enter into an interlocal agreement with the transportation authority pursuant to chapter 163, for the joint performance or performance by either governmental entity of any corporate function of the county or transportation authority necessary or appropriate to enable the transportation authority to fulfill the powers and purposes of this part and promote the efficient and effective transportation of persons and goods in such county. (8) The Legislature declares that there is a public need for the rapid construction of safe and efficient transportation facilities for traveling within the state and that it is in the public's interest to provide for public-private partnership agreements to effectuate the construction of additional' safe, convenient, and economical transportation facilities. Submitted into the public record t),r i em(s) _ L- on City Clerk (a) Notwithstanding any other provision to the contrary, the transportation authority may receive or solicit proposals and enter into agreements with private entities, or consortia thereof, for the building, operation, ownership, or financing of transportation authority transportation facilities or new transportation facilities within the jurisdiction of the transportation authority which increase transportation capacity. The transportation authority may not sell or lease any transportation facility owned by the transportation authority, without providing the analysis required in s. 334.30(6) (e)2. to the Legislative Budget Commission created pursuant to s. 11.90 for review and approval prior to awarding a contract on a lease of an existing toll facilitv. The transportation authoritv is authorized to adopt rules to implement this subsection and shall, by rule, establish an application fee for the submission of unsolicited proposals under this subsection. The fee must be sufficient to pay the costs of evaluating the proposals. The transportation authority may engage private consultants to assist in the evaluation. Before approval, the transportation authority must determine that a proposed project: 1. Is in the public's best interest. 2. Would not recruire state funds to be used unless the prosect is on or provides increased mobility on the State Highway System. 3. Would have adequate safeguards to ensure that no additional costs or service disruptions would-be realized by the traveling public and residents of the state in the event of default or the cancellation of the agreement by the transportation authoritv. 4. Would have adequate safeguards in place to ensure that the department, the transportation authority, or the private entity has the opportunity to add capacity to the proposed project and other transportation facilities serving similar oricrins and destinations. Submitted into the public record fo ite s) City Clerk 5. Would be owned by the transportation authority upon etion or termination of the agreement. (b) The transportation authority shall ensure that all reasonable costs to the state which are related to transportation facilities that are not part of the State Highway System are borne by the private entity. The transportation authority shall also ensure that all reasonable costs to the state and substantially affected local governments and utilities related to the private transportation facility are borne by the private entity for transportation facilities that are owned by private entities. (c) The transportation authority may request proposals for public-private transportation projects or, if it receives an unsolicited proposal, it must publish a notice in the Florida Administrative Register and a newspaper of general circulation in the county in which it is located at least once a week for 2 weeks, stating that it has received the proposal and will accept, for 60 days after the initial date of publication, other proposals for the same project purpose. A copy of the notice must be mailed to each local government in the affected areas. After the public notification period has expired, the transportation authority shall rank the proposals in order of preference. In ranking the proposals, the transportation authority shall consider professional qualifications, general business terms, innovative engineering or cost -reduction terms, finance plans, and the need for state funds to deliver the proposal. If the transportation authority is not satisfied with the results of the negotiations, it may, at its sole discretion, terminate negotiations with the r. if these neaotiations are unsuccessful, the transportation authority may go to the second and lower -ranked firms, in order, using the same procedure. If only one proposal is received, the transportation authority may negotiate in good faith, and if it is not satisfied with the results, it mav, at its sole discretion, terminate negotiations with the proposer. The Submitted into the pub) l record fo 2t nit's' on — -t�Ljj___. City Clerk transportation authority may, at its discretion, reject all proposals at any point in the process up to completion of a contract with the proposer. (d) Agreements entered into pursuant to this subsection may authorize the public-private entity to impose tolls or fares for the use of the facility. However, the amount and use of toll or fare revenues shall be regulated by the transportation authority to avoid unreasonable costs to users of the facility. (e) Each public-private transportation facility constructed pursuant to this subsection shall comply with all requirements of federal, state, and local laws; state, regional, and local comprehensive plans; the transportation authority's rules, policies, procedures, and standards for transportation facilities; and any other conditions that the transportation authority determines to be in the public's best interest. (f) The transportation authority may exercise any power ssessed by it, includincr eminent domain, to facilitate the development and construction of transportation projects pursuant to this subsection. The transportation authority may pay all or part of the cost of operating and maintaining the facility or may provide services to the private entitv for which it receives full or partial reimbursement for services rendered. 338.276. Bonds. - (1) Bonds may be issued on behalf of the transportation authority as provided by the State Bond Act. (2)(a) The transportation authority may also issue bonds pursuant to this part, which do not pledge the full faith and credit of the state in such principal amount as, in the opinion of the transportation authority, is necessary to provide sufficient moneys for achieving its corporate purposes. (b) The bonds of the transportation authority issued pursuant Submitted into the public record fo it (s) _ .t_ — on City Clerk to the provisions of this part, whether on original issuance or refunding, must be authorized by resolution of the transportation authority, after approval of the issuance of the bonds at a public hearing, and may be either term or serial bonds, shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be payable semiannually, be in such denominations, be in such form, either coupon or fully registered, shall carry such registration, exchangeability and interchangeability privileges, be payable in such medium of payment and at such place or places, be subject to such terms of redemption and be entitled to such priorities on the. revenues, rates, fees, rentals, or other charges or receipts of the transportation authority, as such resolution or any resolution subsequent thereto may provide. The bonds must be executed by such officers as the transportation authority determines under the requirements of s. 279.06. (c) Said bonds shall be sold by the transportation authority at public sale by competitive bid. However, if the transportation authority, after receipt of a written recommendation from a financial adviser, shall determine by official action after public hearing by a two-thirds vote of all voting members of the transportation authority that a negotiated sale of the bonds is in the best interest of the transportation authority; the transportation authority may negotiate for sale of the bonds with the underwriter or underwriters designated by the transportation authority and the county in which the transportation authority exists. The transportation authority shall provide specific findings in a resolution as to the reasons requiring the negotiated sale, which resolution shall incorporate and have attached thereto the written recommendation of the financial adviser required by this subsection. (d) Any such resolution or resolutions authorizing any bonds hereunder which do not pledge the full faith and credit of the state may contain provisions that are part of the contract with Submitted into the pub i record fid on / City Clerk the holders of the bonds, as the transportation authorit determines proper. In addition, the transportation authority may enter into trust indentures or other agreements with its fiscal agent, or with any bank or trust company within or without the state, as.security for such bonds, and may, under the agreements, assign and pledge the revenues, rates, fees, rentals, tolls, or other charges or receipts of the transportation authority. (e) Any of the bonds issued pursuant to this part are negotiable instruments and have all the qualities and incidents of negotiable instruments under the law merchant and the negotiable instruments law of the state. (f) Notwithstanding any of the provisions of this part, each project, building, or facility which has been or will be financed by the issuance of bonds or other evidence of indebtedness and that does not vledge the full faith and credit of the state under this part and any refinancing thereof is approved for purposes of s. 11(f), Art. VII of the State Constitution. 338.277. Acquisition of lands and property. - (1) The transportation authority may acquire such rights, title, or interest in private or public property and such property rights, including easements, rights of access, air, view, and light, by gift, devise, purchase, or condemnation by eminent domain proceedings, as the transportation authority may deem necessary for any of the purposes provided for in the Transportation Authority Act , including, but not limited to, any lands reasonably necessary for securing.applicable permits, areas necessanr for management of access, borrow pits, drainage ditches, water retention areas, rest areas, replacement access for landowners whose access is impaired due to the construction of an expressway system, and replacement rights-of-way for relocated rail and utility facilities; for existing, proposed, or anticipated transportation facilities on the expressway system or Submitted into the public record fNI t s), t on City Clerk in a transportation corridor desicznated by the transportation authority; or for the purposes of screening, relocation, removal, or disposal of junkyards and scrap metal processing facilities. The transportation authority may also condemn any material and property necessary for such purposes. (2) The transportation authority and its authorized agents, contractors, and employees are authorized to enter upon any lands, waters, and premises, upon giving reasonable notice to the landowner, for the purpose of making surveys, soundings, drillings, appraisals, environmental assessments including phase I and phase II environmental surveys, archaeological assessments, and such other examinations as are necessary for the acquisition of private or public property and property rights, including rights of access, air, view, and light, by gift, devise, purchase, or condemnation by eminent domain proceedings or as are necessary for the transportation authority to perform its duties and functions; and any such entry shall not be deemed a trespass or an entry that would constitute a taking in an` eminent domain proceeding. The transportation authority shall make reimbursement for any actual damage to such lands, water, and premises as a result of such activities. .Any entry authorized by this subsection shall be in compliance with the premises protections and landowner liability provisions contained in s. 472.029. (3) The right of eminent domain conferred to the transportation authority must be exercised by the transportation authority in the manner provided by law. (4) When the transportation authority acquires property for an exoresswav system or in a transuortation corridor as defined in s. 334.03, it is not subject to any liability imposed by chapter 376 or chapter 403 for preexisting soil or groundwater contamination due solely to its ownership. This subsection does not affect the rights or liabilities of any past or future owners of the acquired property nor does it affect the liability of any Submitted into the public record fo ite (s i ,.) A� on y City Clerk governmental entity for the results of its actions which create or exacerbate a pollution source. The transportation authority and the Department of Environmental Protection may enter into interagency agreements for the performance, funding, and reimbursement of the investigative and remedial acts necessary for property acquired by the transportation authority. 338.278. Cooperation with other units, boards, agencies, and individuals. - Express authority and power is given and granted to any county, municipality, drainage district, road and bridge district, school district, or other political subdivision, board, commission, or individual in or of this state to enter into contracts, leases, conveyances, or other agreements with the transportation authority within the provisions and purposes of Transportation Authority Act. A transportation authority may enter into contracts, leases, conveyances, and other agreements, to the extent consistent with chapters 334, 335, 338, and 339 and other provisions of the laws of the state and with 23 U.S.C. ss. 101 et seq., with any political subdivision, agency, or instrumentality of the state and any and all federal agencies, corporations, and individuals, for the purpose of carrying out the provisions of the Transportation Authority Act. 338.279. Covenant of the state. - The state does hereby pledge to, and agrees with, any person, firm, corporation, or federal or state agency subscribing to or acquiring the bonds to be issued by the transportation authority that the state will not limit or alter the rights herebv vested in the transportation authority and the department until all bonds at any time issued, together with the interest thereon, are fully paid and discharged, insofar as the same affects the rights of the holders of bonds issued hereunder. The state does further pledae !ubmi++cd into the public fo ite (s) On City Clerk to, and agrees with, the United States that, in the event federal aqency constructs, or contributes any funds for the completion, extension, or improvement of, an expressway system or any part or portion thereof, the state will not alter or limit the rights and powers of the transportation authority and the department in any manner which would be inconsistent with the continued maintenance and operation of the expressway system or the completion, extension, or improvement thereof or which would be inconsistent with the due performance of any agreement between the transportation authority and any such federal agency, and the transportation authority and the department shall continue to have and may exercise all powers granted so long as the same shall be necessary or desirable for carrying out the purposes of the transportation authority and the purposes of the United States in the completion, extension, or improvement of the expressway system or any part or portion thereof. 338.280. Exemption from taxation.— The effectuation of the authorized purposes of the transportation authority is in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions. For this reason, the transportation authority is not required to pay any taxes or assessments of any kind or nature whatsoever upon any property acquired by it or used by it for such purposes or upon any revenues at any time received by it. The bonds issued by or on behalf of the transportation authority, their transfer, and the income therefrom, including any profits made on the sale thereof, are exempt from taxation of any kind by the state or by any political subdivision or other taxing agency or instrumentality thereof. The exemption granted by this section does not apply to any tax imposed under chapter 220 on interest, income, or profits on debt obligations owned by corporations. Submitter? into the pu1'� record i�. - ite z s) - L_ on City Clerk 338.281. Public accountability. - The transportation authority shall post the following information on its website: 1) Audited financial statements and any interim financial reports. (2) Board and committee meeting agendas, meeting packets, and (3) Bond covenants for any outstanding bond issues. (4) Transportation authority budgets. (5) Transportation authority contracts. For purposes of this subsection, the term "contract" means a written agreement or purchase order issued for the purchase of goods or services or a written agreement for the receipt of state or federal financial assistance. (6) Transportation authority expenditure data, which must include the name of the payee, the date of the expenditure, and the amount of the expenditure. Such data must be searchable by name of the payee, name of the paying agency, and fiscal year and must be downloadable in a format that allows offline analysis. (7) Information relating to current, recently completed, and future projects on transportation authority facilities. Section _ The department is directed to (i) negotiate with the transportation authority to refine the details of the transference of the Homestead Extension of the Florida Turnpike, including ensuring that the Turnpike and TAMD roadways and system remains continuous and seamless and at the same level of road standard, and (ii) provide a report back to the Senate President, House Speaker and members of the legislative delegation of the county in which the transportation authority is located by no Submitted into the public FIX 01 d fIOT it S) on Vlk City Clerk later than November 1, 2019 indicating whether an agreement related to the issues set forth in (i) above has been reached and detailing the terms of the agreement, or alternatively detailing the current status of the negotiations. The transportation authority may provide a response to the report to the Senate President, House Speaker and members of the legislative delegation no later than December 1, 2019. Section . This act shall take effect July 1, 2019. MIAWWDE Memorandum OM Date: April 8, 2019 Submitted into the public record f it m(s) To: Honorable Chairwoman Audrey M. Edmonson re �1t �s) City Clerk and Members, Board of County Commissioners From: Carlos A. Gimene Mayor Subject: Update on the Transportation Authority of Miami -Dade In previous communications to the Board, I introduced a plan to create the Transportation Authority of Miami -Dade (TAMD), which would merge the operations of the Miami -Dade Expressway Authority (MDX) and the Homestead Extension of the Turnpike (HEFT) in order to offer a 20 percent discount on tolls for all commuters on these roadways — saving more than $4 billion over 33 years. Over the same time period, TAMD would fund and construct the Kendall Parkway, not apply Consumer Price Index inflation adjustments on HEFT commuters — thereby saving those toll payers $4.5 billion — and be able to provide $1.85 billion in funding for other transportation and transits projects. The State Legislature is currently considering two bills: Senate Bill (SB) 898 and House Bill (HB) 385, which create a new State agency in Miami -Dade County called the "Greater Miami Expressway Agency" (GMX) to absorb the assets, liabilities and operations of MDX when it is dissolved, which both bills contemplate. The HEFT will remain part of the Florida Turnpike. Upon full implementation of the transfer of MDX operations to GMX, the two bills call for a 25 percent toll rebate to any GMX SunPass toll payer whose vehicle is registered in Miami -Dade County. We have been monitoring the development of the two bills, contrasting the benefits to the public that GMX offers versus what TAMD can provide, and estimating the probable future fiscal impacts of the proposed legislation. Some of the distinctions between the TAMD and GMX proposals, and some of our concerns as to GMX's ability to provide needed toll relief and transportation infrastructure, are as follows: 1) The 20 percent toll reduction on the TAMD benefits all commuters on both MDX and HEFT roadways. GMX's 25 percent toll relief benefits only those using MDX roadways who use SunPass and whose vehicles are registered in Miami -Dade — meaning that it will benefit only about 72 percent of the commuters on MDX-built roadways and none of the HEFT commuters. Also, it is perceived, if not in fact reality, that many of the economically disadvantaged among the commuting public are more cash reliant, i.e., don't have SunPasses, and, therefore, would not benefit proportionally from the 25 percent reduction of SunPass tolls. 2) Under the TAMD proposal, the overall savings to toll payers while traveling in Miami -Dade is projected to be $8.5 billion over 33 years. GMX is prohibited from raising tolls until July 1, 2029, unless needed to comply with bond indenture mandates. Assuming full compliance to the bond indenture over the 10 -year period (2020 through 2029), the amount of overall savings under the GMX plan would amount to about $475 million. Submitted into the public Honorable Chairwoman Audrey M. Edmonson record f Item(s) and Members, Board of County Commissioners on a CityClerk Page 2 3) The TAMD proposal provides for the completion of MDX's currently authorized $808 million five-year work program, which includes significant life and safety projects. The two bills do not specifically address its completion through GMX. Also, the two bills do not address the Kendall Parkway, which is not part of the MDX's current work program other than the funding of a NEPA study. 4) Our financial projections, which are developed based on engineering reports detailing expected work program sequencing and construction costs, reasonable assumptions of accessing the financial markets to fund construction and actual audited financial data, demonstrate that with a 25 percent toll rebate program in place: a. GMX will not be able to complete MDX's work program (approved and adopted on December 5, 2017) because it will not be compliant with bond indenture requirements, which will prevent it from accessing public bond markets to fund work program projects. (See attached Exhibit 1). b. The Kendall Parkway is not currently in MDX's work program, but it is a major undertaking that has the support of the community and the Board of County Commissioners. GMX will absolutely not be able to fund the Kendall Parkway. (See attached Exhibit II). 5) SB 898 permits the raising of tolls beginning on July 1, 2029. We believe that delaying the Kendall Parkway in order to be funded by future toll increases will effectively kill the project because of rising land costs in Miami -Dade County. We have also attached Exhibit III, which shows that TAMD can afford to fund its promises to our community. We look forward to discussing this matter further with the Board at tomorrow's Commission Meeting. Attachments c: Abigail Price -Williams, County Attorney Geri Bonzon-Keenan, First Assistant County Attorney Office of the Mayor Senior Staff Jennifer Moon, Director, Office of Management and Budget Alice Bravo, Director, Department of Transportation and Public Works Linda L. Cave, Acting Director, Clerk of the Board Greater Miami Expressway Agency (GMi) Finance Plan of Work Program without Kendall Parkway $663, 745,000 Future @anti Funding Scenario. Cumnt Rates Without Kendall (estimated Interest rotes as of218120191 Summary Net Revenue & Coverage (in $Thousands) 250,000 Years of Non -Compliance to Bond indenture Covenants 200,000 ---.� - �i ♦♦♦ i t QWW Finding Submitted into the pub record fhr it (s) Exhibits �_ on City Cie* Cuvaraga Samrruuy Prim & 'IOOdR Fiscal Year Senior 2020 1.30x 2021 1.24x 2022 1.22x 2023 1.21x 2024 1 19M 2025 1.16x 2026 1.15x 2027 tt 2028 1.12x 2029 L]Ax___ 2030 1.17x 2031 1.20x 2032 1.23x 2033 1.26x t,------------------------------------- 1.29w 2035 1.15x 2036 1.15x 2037 1.15x 2038 1.35x 2038 1.35x 2048 t 2053 2.29At Tota FwWbw 1110,718 112,719 107',1108 325,505 19%W 0 0 0 0 0 0 0 0 1111111 t 105,098 126,895 60,033 74,878 5,015 5,090 5,166 5,244 5,322 5,402 5,906 6,521 8,065 10,323 Construction Fund (Financing) 120,962 8,968 0 24,503 0 0 0 0 0 0 0 0 0 0 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 aaaon Existing Senior Uen D/S Proposed Senior Principal > Proposed Senior Net Interest -Net Revenue --- Senior D/S @ 1.50x --- Senior D/S @ 1.20x Cuvaraga Samrruuy Prim & 'IOOdR Fiscal Year Senior 2020 1.30x 2021 1.24x 2022 1.22x 2023 1.21x 2024 1 19M 2025 1.16x 2026 1.15x 2027 1.03x 2028 1.12x 2029 L]Ax___ 2030 1.17x 2031 1.20x 2032 1.23x 2033 1.26x 2034 1.29w 2035 1.15x 2036 1.15x 2037 1.15x 2038 1.35x 2038 1.35x 2048 2.14x 2053 2.29At /iardl'iber Prim & 'IOOdR 2021 am 2Q 2�_ G 2027 21W f1 2000 2031 2032 Tools Rohobwmxmrmmratnto 0 a mm h O 0 0 0 0 0 0 0 0 1,1.'1145 Prap Funding: 0 0 87,436 0 76,693 0 0 0 0 0 0 0 0 164,129 Prior & Now Dek Amoy 160,728 112,719 9,07!2 325,5115 24,69111 0 O 0 0 0 0 0 0 IBM" Tota FwWbw 1110,718 112,719 107',1108 325,505 19%W 0 0 0 0 0 0 0 0 1111111 Work Program: -160,718 -112,719 -107,603 -325,585 -101,392 0 0 0 0 0 0 0 0 -808,017 Urda""Forrrar,: 0 0 0 0 0 0 0 0 0 0 a 0 0 (0) Drtbt Par Amount bW Year ParilYwr 20Q1 2022 21W 20Q4 4iS 2026 20117 10211 21129 2000 2W1 2002 TOW ditlerMrUl Davus 0 0 0 0 0 0 0 0 0 0 0 0 d 0 Bond Par Amount Issued 264,500 0 0 0 399,245 0 0 0 0 0 0 0 0 663,745 h�ntE�akrtnoes Fincaiyew �� 2020 2021 21W 202E 2024 2023 2026 2027 2028 2029 2034 2039 2048 2053 Genera Fuad Urratrteted 141,1152 1411852 141,852 141,1152 141,852 144,646 149,11411 147,332 148,901 150,704 23S,997 3241811 910,682 2,327,511 CumufaNreExcess USFAvoildblePoygo 0 0 0 0 0 2,795 3,996 5,480 7,049 8,852 93,S4S 178,916 758,831 2,185,660 General Fund Restricted 45,251 45,320 45,391 45,463 45,535 45,612 45,755 45,903 46,054 46,211 47,095 48,084 50,317 53,531 R&R Fund (Paygo Account Only) 105,098 126,895 60,033 74,878 5,015 5,090 5,166 5,244 5,322 5,402 5,906 6,521 8,065 10,323 Construction Fund (Financing) 120,962 8,968 0 24,503 0 0 0 0 0 0 0 0 0 0 5/11/2018 101`1 Preliminary/Sub)ect to Change Greater Miami Expressway Agency (GMX) Finance Pian of Entire Work Program Including Kendall Parkway $2,148,930,000 Future Bond Funding Scenorlo., Current Rates I Current CIP f 25% Toll Reduction on MD Sunpass Users Only (estimated Interest rotes as of 2/8/2019/ Summary CvmraM Net Revenue & Coverage (in $Thousands) 400,000 Submitted into the public record fLLf s _ UnExhibit 11 City Clerk Years of Non -Compliance to Bond Indenture Covenants Years of Non -Compliance to Bond Indenture Covenants and Cash Shortfalls 350,000 -------------------------_----------__----__-------_------ i 300,000 250,000 --� '� ---- - -. 200,000 '-�------r., 150,000 -205,481 FisralYear 65 AR 1001000 4 i A 1.20x 2022 II I tt 1.20x 20x4 1.20x ■■n 1.20x 2026 1.20x 2027 1.20x 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 ar• Existing senior Lien D/S Proposed Senior Principal Proposed Senior Net Interest -Net Revenue --- Senior D/S @ 1.50x --- Senior D/S @ 1.20x 2054 Coverage Saram" -205,481 FisralYear senior 2020 1.26x 2021 1.20x 2022 1.20x 2023 1.20x 20x4 1.20x 2025 1.20x 2026 1.20x 2027 1.20x 2028 1.04X 1.029 l .rlfw 2030 0.79x 2031 0.79x 2032 O.SOx 2033 O.Six 3034 _ 0 03X 2035 0.77x 2036 0.77x 2037 0.77x 2038 0.78x 203E G.7Sx 204A 0,83x 2054 *Aft Capital Funding -205,481 -257,621 -298,530 -301,745 -179,818 -163,309 -81,422 -10,079 -38,524 -164,445 -142,140 -84,337 -17,055 -1,944,505 Unhusded Pardon: Prior & 0 a 0 0 0 0 0 0 0 0 0 0 0 F&ATeer 2020 2=1 2022 2023 2024 2025 207E 2047 2028 2029 7030 201 2D32 Tabus Reimbuaxements/Grants_ 0 10,071 0 1,012 0 0 0 0 0 0 0 0 0 11AIM Paygo Funding: 0 117,248 0 24,194 0 0 0 0 0 0 0 11,129 17,055 169,626 Prior & Now Debt Funding: 205 481 150,291 298,530 276,539 179,818 163,3D9 81,422 30,07! 38,524 164,445 142,140 7$1208 0 1,763,790 Toad Funding: 205,481 257,621 296,530 301,745 179,818 163,309 81,422 10,079 38,524 164,445 142,140 84,337 17,055 1,944,505 Work Program: -205,481 -257,621 -298,530 -301,745 -179,818 -163,309 -81,422 -10,079 -38,524 -164,445 -142,140 -84,337 -17,055 -1,944,505 Unhusded Pardon: a 0 a 0 0 0 0 0 0 0 0 0 0 0 New Debt Par Amount by Year _. Fl"l Yea, 202+0 M1 2012 2023 2024 7025 2436 1027 2029 2029 2W 2M 211111112 Took Interlrn/U DrawA 0 0 0 0 0 0 0 D 0 0 0 0 0 0 Bond Par Amount Issued 332,375 0 0 754,075 0 1,062,480 0 0 0 0 0 0 0. 2,148,930 Ending AccpuM Wgnces Fi€* Yeu 2020 M1 2022 2023 2014 2025 2026 2M7 20Q8 2029 2634 2039 2048 2054 Gen" Fund UnrestritUd 1410852 141,852 141,852 141,852 141,852 141,852 141,852 141,152 141,052 141,852 163,447 103,255 222.062 27€,017 Shortfall ISuhsidyneeded toPayforDS 0 0 0 0 0 0 0 0 0 0 -212,468 -258,893 -405,679 -183,363 -1,060,403 General Fund Restricted 45,253 45,322 45,430 45,567 46,110 46,913 47,115 47,297 47,488 47,687 48,830 50,102 52,977 57,078 R&R Fund (Paygo Account Only) 100,386 143 14,891 3,577 4,874 7,236 10,206 17,461 19,151 21,061 0 0 0 0 Construction Fund (Financing) 129,517 0 274,890 0 650,018 491,909 414,422 407,659 373,211 212,498 0 0 0 0 5/11/2018 1 of 1 Preliminary/Subject to Change Transpurtaticm Authority of Miami -Dade (TAMD) Submitted into the public EKHIBITN Proposed Merger of MDX & HEFT record f0 lte S� $1,145,355,800 Future Bond Funding fesWmated Interest rates as of 3/18/2019) on ) City Clerk Summary [averages Net Revenue & Coverage (in $Thousands) CoverageS-nn-V Fiscal Year senior All Req. 900.000 2020 1.81x 1.00X 800,000 2021 1.81x 1.00X 2022 1.54x 1.00X 700,000 2023 1.54x 1.00X 2024 1.5ft Lam 600,000 .............•••• .......... 2025 1.53x 1.00X 2026 1.53x 1.00X 5W.000••• .. ... •••••• •• •••• 2027 1.55x 1.00X 400,000 ....... ... •••'............ ... 2028 1.56x 1.00x 2029 L61x 1.00x ......................• 300,000 _ 2030 1.67x 1.00X 2031 1.72x 1.00x 200,000 _=����_..� s�l�€_�_e�����_��� �■.��® �����® _�®� �e��____���� ��� ® ���_ r 2033 1.86x S.00x 100,000 t� i� let •^r ^ 0 2034 2035 1.94x 1.81x OO 1.00X L 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2036 1.83x 1.07x 2037 1.85x 1.13x sowon Existing Senior Uen D/S HEFT Acquisition Proposed senior Principal 2038 2.08x 1.25x oeoo6 Proposed Senior Net Interest -Same as above minus 20% Toll reduction --- Senior D/S @ 1.40x 2038 2.03x L25X ---Senior D/S @1.20x •••••• Combined Toll Revenues after operating costs 20" 2'62x 2'S4x 2053 2.83X 2.72x Capltai FumAing prior & f3 -MW Year 2404@ 1011 2093 2= 2038 1027 207111 1023 z= 2091 1032 TO$* 0 X071 0 1,011 0 0 0 0 0 0 0 0 0 11 w Paygo Funding: 0 184,033 0 68,621 0 18,676 75,000 1,022 3,275 6,422 1,022 3;275 6,422 U71M Prior & Naw Debt FtmdMg: 206,481 62,448 MBS 225,190 178,796 141,350 0 0 0 0 0 0 0 1,109,014 Total Ftawilr d; 20504111 256.09 295,256 7951323 170,796 160,034 751000 1,022 3,275 6,422 1,022 3,275 6,422 1A&7.9> S Work Program: -205,481 -256,599 -295,255 -295,323 -178,796 -160,034 -75,000 -1,022 -3,275 -6,422 -1,022 -3,275 -6,422 -1,487,925 U0&wtMd Parrott 0 0 0 0 0 0 0 0 _0 0 0 0 0 Piari'fwr 710 3M 2022 am 20,94 2025 20221 2027 I= 2029 2030 2031 2002 Te4eia "NOWWQOrom 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bond Per Amount Issued 254,025 0 544,780 0 346,550 0 0 0 0 0 0 0 0 1,145,353 111111901 V 2010 2021 2022 2023 1014 2023 2026 2027 2001 2029 2094 20139 2049 ZOS3 Total Gwwwel Find Unrestricted 141,99') 142,198 142,289 142,445 142,669 142,881 143,112 143,350 143,659 143,911 145,7!0 487,509 1,633,905 2,748,083 External Transfer for Transportation 35,340 35,069 30,421 30,666 30,698 30,838 31,397 33,211 33,076 36,661 216,361 557,948 370,731 374736 1,851,193 General Fund Restricted 48,563 48,707 48,942 49,185 49,835 $0,751 51,067 51,368 51,681 52,006 53,861 55,935 60,625 63,745 R&R Fund (Paygo Account Only) 129,101 1,313 35,314 416 31,907 43,909 159 35,070 65,757 106,101 401,500 99,603 103,393 116,980 5/11/2018 101`1 Prellminary/Sub)ect to Change