AGENDA ITEM REPORT
TITLE:
title
A RESOLUTION AUTHORIZING THE MAYOR AND THE CITY MANAGER, OR DESIGNEE, TO EXECUTE THE THIRD AMENDMENT TO THE TRANSPORTATION SYSTEM SURTAX INTERLOCAL AGREEMENT AMONG BROWARD COUNTY, THE BROWARD COUNTY CITY MANAGER’S ASSOCIATION, INC., AND THE CITY OF COCONUT CREEK.
body
BACKGROUND:
On June 5, 2018, the Broward County Commission voted to place a proposed transportation surtax levy of one cent on the November 6, 2018 ballot for consideration by the countywide electorate, which was ultimately approved by the voters. The City of Coconut Creek City Commission approved and executed the original Transportation System Surtax Interlocal Agreement (ILA) on September 27, 2018, the First Amendment to the ILA on July 11, 2019, and the Second Amendment to the ILA on January 28, 2021 in order to be eligible to receive funds from the Transportation Surtax.
In 2021, the Broward County City Manager’s Association (BCCMA) issued a letter to Broward County outlining collective concerns of the BCCMA membership related to the Surtax Program and Municipal Capital Projects (MCP) methodology. Subsequently, there have been more than a dozen meetings and workshops related to a potential Third Amendment to the ILA. During the discussions, the County was urged to consider the value of surtax funding already awarded to municipalities in the context of future funding approaches.
Upon further analysis and negotiations with the cities through the BCCMA, it became apparent that new funding programs and a new formula-based funding model, as defined in Section 4.3.1 of the Third Amendment to the ILA, for restoration and maintenance (R&M) and On-Demand Transportation would provide a more equitable distribution of surtax funds countywide.
It should be noted that the previously approved Surtax funded projects for Coconut Creek will remain unaffected by this Third Amendment. These projects are summarized in Exhibit D of the ILA and they include the following approved projects.
|
Surtax No. |
Project Name |
FY - Design $ |
FY - Construction $ |
|
COCO-23-007 |
South Creek Neighborhood Improvements |
FY28 - $1.6m |
FY29 - 14.74m |
|
COCO-23-001 |
Cullum Road Construction |
N/A |
FY28 - 6.37m |
|
COCO-016 |
Sample Road Shared Use Pathway |
FY24 - $330k |
FY25 - 2.46m |
On June 10, 2025, the Broward County Commission voted to approve the Third Amendment to the ILA, which requires a majority of municipalities that are a party to the ILA and cumulatively represent more than fifty percent (50%) of Broward County’s total population to adopt it.
DISCUSSION:
The Third Amendment to the ILA introduces several important updates aimed at improving the efficiency, transparency, and flexibility of the surtax program for municipalities. It replaces the prior agreement in full and establishes clearer procedures for project approvals, funding allocations, and compliance requirements. The amendment also offers new funding tools to help cities manage transportation needs more effectively, including a predictable annual formula allocation and enhanced options for leveraging external grant funding.
Key proposed features of the Third Amendment to highlight:
• There are no fiscal impacts to the City’s previously-approved MAP Broward (Surtax) funded projects.
• Community Shuttles. A portion of the Transportation Surtax Proceeds could be used to directly fund a Community Shuttle in the amounts provided for in separate interlocal agreements between each municipality and the County. Funding of Community Shuttles from Surtax proceeds is not subject to an evaluation or ranking process (whether by the County or any County vendor). Municipalities with existing Community Shuttle Programs may not terminate or reduce services to add surtax funded micro-transit except with the prior written consent of the BCT Department Director and County Administrator.
Moving forward, any such termination or reduction shall not be effective until any vehicles purchased by the County or reimbursed to the municipality have exceeded the minimum useful life expectancy under FTA regulations and guidelines. Unless otherwise agreed to in writing by the County, to be eligible for Transportation Surtax Proceeds, a municipality’s Community Shuttle must meet or exceed the minimum passengers per revenue service hour per route or such other County-imposed standards for the applicable Fiscal Year(s). Unfortunately, Coconut Creek does not meet these standards, and the City will continue to operate and fund the existing transit services as they are currently operating and funded.
• On-Demand Transportation or Micro-Transit surtax funding. The City would be eligible to apply for funding to add a micro-transit service, but the cost of such program would come out of the annual formula allocation of $343,110, as outlined below. In addition, the City may not cut or terminate the existing community shuttle service or replace it with micro-transit without BCT approval.
• Formula Allocation Municipal R&M Projects and/or On-demand Transportation Services. The formula allocation for Coconut Creek in FY26 amounts to $343,110.00, recalculated annually by center-line mileage. The ILA also allows for a municipality to elect, in any given fiscal year, to defer receipt of its formula-based funding for municipal R&M Projects to allow it to receive a larger sum in later fiscal years. More importantly, the list of eligible projects expands in this Third Amendment, as outlined below.
• Eligible Projects. The amended ILA updates the list of eligible projects to include sidewalks, bike paths, and greenways, structured parking, street lighting, drainage, sound walls, fiber-optic/digital transportation signage, landscaping, and decorative/functional public art.
• Grant Match Program. Creates new means of allowing municipalities the ability to obtain Transportation Surtax funding to be used as required local match in relation to state and federal appropriations and grants. Annually, the County will advise municipalities of the amount available in the Grant Match Program (GMP). Restrictions apply, but the GMP funding will be available on a first-come/first-serve basis, subject to review and consideration given for those projects that are likely to result in a maximum leveraging of GMP funds towards state and/or federal funding that align with project goals of the Surtax program.
• Streamlines the manner by which projects are funded, by defining eligible projects and improving the timeline which Transportation Surtax projects are placed under Surtax Funding Agreements.
• Permits multiple municipalities to collaborate on the joint management of their Community Shuttle programs.
• Permits the ILA to be more easily modified, if and as required, to more efficiently and effectively distribute the Transportation Surtax proceeds committed to municipalities.
• Describes the role that the BCCMA will have in connection with certain parts of the programs established between the County and municipalities.
As of June 30, 2025, a majority of municipalities with populations exceeding the 50%+1 threshold have approved the Amended and Restated Third Amendment.
Next steps are as follows:
1. Broward County’s Mayor will execute the agreement, making it effective.
2. Notice of Grant Match Program processes will be distributed via email (the week of July 7, 2025).
3. Workshops with municipalities to review proposed changes to existing processes will be held virtually on July 29, 2025 and August 13, 2025; invitations for those meetings are forthcoming.
4. Notices of Rehabilitation & Maintenance/Micro-transit funding amounts and processes will be distributed individually via email to Surtax Single Points of Contact on or about July 31, 2025.
Accordingly, the Third Amendment to the ILA is being presented to the City Commission for approval.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT: While the amendment imposes no immediate expenditure, the City is projected to receive an annual allocation of approximately $343,110 in FY26 and going forward. The future annual allocation amount may change over time depending on the number of roadway centerline miles, and the amount of funding available in future years.