AGENDA REQUEST AGENDA ITEM NO: XIV.5. New Business. February 21, 2017 BY City Manager Thomas Barwin City Manager Barwin SUBJECT:
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1 AGENDA HEADING: New Business COMMISSION MEETING DATE: February 21, 2017 BY City Manager Thomas Barwin City Manager Barwin AGENDA ITEM NO: XIV.5. Originating Department SUBJECT: Department Head Presenter Adoption Re: Proposed Resolution No. 17R-2626 Establishing Committed Fund Balance in the City of Sarasota's Tourist Development Tax Special Revenue Fund in the Amount of $2,500,000 COMMISSION PRIORITIES: Infrastructure EXPLANATION: (see next page for additional explanation) On December 22, 2016, the Florida Department of Environmental Protection (FDEP) issued its Consolidated Notice of Intent to Issue the Permit authorizing the U.S. Army Corps of Engineers (Corps) and the City of Sarasota to implement a beach restoration project known as the Lido Key Beach Nourishment and Groins Project ( Project ). The Project includes the placement of approximately 1.3 million cubic yards of sand along a 1.6 mile segment of the Lido Key coastline and the construction of two groins on Lido Key. The Florida Department of Environmental Protection s recent notice of intent to permit the City and Corps to stabilize Lido Key by recycling sand which came from Lido and Longboat Keys, which has accreted in the north side of Big Pass, has been studied intensively for over four years. ADMINISTRATION'S RECOMMENDATION: Motion to Adopt Resolution No. 17R-2626 APPROVAL SUMMARY: Approval Legal Review / Approval City Manager Approval City Auditor and Clerk Approval Required Date Completed Completed By Robert Fournier John Lege Pamela Nadalini Status
2 ADDITIONAL EXPLANATION: The most advanced computer modeling, aerial photography, and experience available to design a smart plan have been used. The public has had many opportunities for input into the study, analysis and planning process which has resulted in a well-thought-out and environmentally smart plan. The pending permit limits and restricts the volume and locations from where sand can be recycled from and requires ongoing monitoring of navigational channels, shorelines and shoals. By utilizing federal, state and local resources, the initiative is also financially responsible. The City of Sarasota has become known as an environmental leader as evidenced by the investment of millions in removing pollution from Sarasota Bay and the Gulf. Even though the permit requires a corrective response be taken if something unexpected occurs, there have been concerns raised by individuals and groups on Siesta Key. Staff has reached out to those concerned and solicited solutions to address the concerns of those on Siesta Key. The overwhelming response has been to provide assurance that the City is in the position to correct any unexpected negative impacts on Siesta Key. Therefore, staff is recommending setting aside $2.5 million in the Tourist Development Tax Special Revenue Fund to be used to mitigate any unexpected negative impacts on Siesta Key. This can be accomplished by adopting Resolution No. 17R-2626 in which the City Commission will commit $2.5 million of fund balance in the Tourist Development Tax Special Revenue Fund to serve as an insurance policy to mitigate any negative impact to Siesta Key as a result of the Project. The funds in the Tourist Development Tax Special Revenue Fund serve as an emergency reserve for Lido Beach and are available to be set aside as an insurance policy. The current fund balance in the Tourist Development Tax Special Revenue Fund is approximately $3.0 million. Working together presents a golden opportunity to create smart and innovative shoreline strategies that include sound environmental policies to protect people, property and the environment for generations to come. Staff recommends adoption of Resolution No. 17R ADDITIONAL ADMIN RECOMMENDATION: FUNDING SOURCE: AMOUNT: HOUSING IMPACT (Per House): NEW CONSTRUCTION: REHABILITATION: SUPPORT DEPARTMENTS: $ 0 $ 0 2
3 Financial Administration - Kelly Strickland Neighborhood and Development Services - Timothy Litchet City Attorney - Robert Fournier Public Works - Doug Jeffcoat COMMISSION ACTION: Final Action Motion: Motion By: AGENDA DISPOSITION Second By: Vote: 3
4 RESOLUTION NO. 17R-2626 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SARASOTA, FLORIDA, ESTABLISHING COMMITTED FUND BALANCE IN THE CITY OF SARASOTA S TOURIST DEVELOPMENT TAX SPECIAL REVENUE FUND; PROVIDING FOR READING BY TITLE ONLY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Government Accounting Standards Board (GASB) has issued Statement No. 54, establishing a hierarchy clarifying the constraints that govern how a government entity can use amounts reported as fund balance; and WHEREAS, the City Commission is the highest level of decision-making authority and has the authority to commit, assign, or evaluate existing fund balance classifications and identify the intended uses of committed or assigned funds; and WHEREAS, the committed fund balance classification reflects amounts subject to internal constraints self-imposed by the City Commission; and WHEREAS, once the committed fund balance constraints are imposed, it requires the constraint to be removed only by the City Commission; and WHEREAS, on December 22, 2016, the Florida Department of Environmental Protection (FDEP) issued its Consolidated Notice of Intent to Issue the Permit authorizing the U.S. Army Corps of Engineers and the City of Sarasota to implement a beach restoration project known as the Lido Key Beach Nourishment and Groins Project ( Project ); and WHEREAS, the City Commission has determined it will commit $2,500,000 of fund balance in the Tourist Development Tax Special Revenue Fund to serve as an insurance policy to mitigate any impact to Siesta Key as a result of the Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SARASOTA, FLORIDA: Section 1: The City Commission hereby commits $2,500,000 of fund balance in the Tourist Development Tax Special Revenue Fund to serve as an insurance policy to mitigate any impact to Siesta Key as a result of the Project, 1 of 2
5 Section 2: This Resolution shall take effect immediately upon its adoption. ADOPTED by the City Commission of the City of Sarasota, Florida, upon reading by title only, after posting on the bulletin board at City Hall for at least three (3) days prior to adoption, as authorized by Article IV, Section 2, Charter of the City of Sarasota, Florida, this day of, Attest: _ Willie Charles Shaw, Mayor Pamela M. Nadalini City Auditor and Clerk Mayor Willie Charles Shaw Vice-Mayor Shellie Eddie Commissioner Susan Chapman Commissioner Liz Alpert Commissioner Suzanne Atwell 2 of 2
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