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HomeMy Public PortalAbout16-9189 Governor of the State of Florida to Appoint a Financial Oversight Committee Sponsored by: Mayor and City Commission RESOLUTION NO. 16-9189 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, REQUESTING THE GOVERNOR OF THE STATE OF FLORIDA TO APPOINT A FINANCIAL OVERSIGHT COMMITTEE AND PROVIDE OTHER ASSISTANCE PURSUANT TO FLORIDA STATUTE 218.503; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The City Commission of the City of Opa-locka, Florida, acknowledges that the City is experiencing financial challenges; and WHEREAS, The City Commission of the City of Opa-locka, Florida, acknowledges that since notifying the Governor of the State of Florida of its financial condition in October of 2015, the City's financial condition has not improved; and WHEREAS, The City Commission of the City of Opa-locka, Florida, believes that it is in the City's best interest to request that the Governor of the State of Florida appoint a financial oversight committee to assist the City with its financial recovery in a similar fashion as the assistance that was provided to the City in 2002, as detailed in Executive Order Number 02-125 (attached as "Exhibit A"). NOW THEREFORE, BE IT RESOLVED THAT THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA: Section 1. The recitals to the preamble herein are incorporated by reference; Section 2. The City Commission of the City of Opa-locka, Florida, hereby requests that the Governor of the State of Florida declare that the City of Opa-locka, Florida is in a state of financial emergency pursuant to Florida Statute 218.503(4). Section 3. The City Commission of the City of Opa-locka, Florida, further requests the Governor of the State of Florida implement the following measures pursuant to Florida Statute 218.503(3): Resolution No. 16-9189 (A) Appoint a financial Oversight Committee to assist the City with its financial recovery. The committee shall adopt rules and policies consistent with Florida Statute 218.503(3) necessary bring the City out of financial emergency. (B) Authorize a State and Local Agreement of Cooperation("Agreement") designed to resolve the financial emergency and provide assistance to the City. (C) Require the City of Opa-Locka to obtain approval of its proposed annual budgets, and any amendments to such budgets, from the Governor before final approval of the budget. (D)Prohibit the City of Opa-Locka from issuing bonds,notes,certificates of indebtedness, or any other form of debt without the written approval of the Governor, except for continuing implementation of planned improvements to its water and sewer system utilizing the Florida Department of Environmental Protection's revolving loan program and as otherwise provided. (E) Require the City of Opa-Locka to make available for inspection and review records, information,reports, and assets of the City at the request of the Governor. (F)Prohibit the City of Opa-Locka from seeking application of laws under the bankruptcy provision(s) of the United States Constitution or Federal Statues without prior written approval of the Governor. (G) Require the City of Opa-Locka to notify the Governor in writing of any event, occurrence, transaction, or thing that might affect the financial condition of the City. (H) Require the City of Opa-Locka to cooperate fully with the Governor in his efforts to provide technical assistance to the City, and in his efforts to consult with City officials regarding and steps necessary to bring the books of account, accounting systems, financial procedures, and reports into compliance with State requirements. (I) Authorize the Department of Revenue and Comptroller, pursuant to section 218.503(3)(b), Florida Statues, to loan funds to the City of Opa-Locka upon terms and conditions to be determined by the Governor. (J) Designate the Office of the Chief Inspector General as the lead agency in carrying out the financial recovery of the City. The Governor may name the Chief Inspector General Resolution No. 16-9189 of the State of Florida as his Designee, and require other agencies to provide full cooperation and support as the Governor's Designee finds necessary. (K) Provide technical assistance in the areas of finance, budgeting, human resources management, planning and development; code enforcement, public works, water and sewer, infrastructure and law enforcement. (L) Provide other measures as set forth in Florida Statute 218.503(3) as he deems necessary and appropriate. Section 4. The City Clerk shall forward a certified copy of this resolution to the Governor of the State of Florida immediately. Section 5. This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 1St day of Tune, 2016. ra L. Taylor Mayor Attest to: Approved as to form and legal sufficiency: tit (40/' nna Flores Vincent T. Brown, Esq. City Clerk The Brown Law Group, LLC City Attorney Moved by: COMMISSIONER SANTIAGO Seconded by: VICE MAYOR HOLMES Commissioner Vote: 4-0 Commissioner Kelley: YES Commissioner Santiago: YES Vice Mayor Holmes: YES Mayor Taylor: YES STATE OF FLORIDA OFFICE OF THE GOVERNOR EXECUTIVE ORDER NUMBER 02-125 WHEREAS,Opa-Locka officials responsible for overseeing the fiscal affairs of the city's government have informed the Governor that a financial emergency exists within the city pursuant to Chapter 218,Florida Statutes, and WHEREAS,Chapter 218,Florida Statutes,provides the Governor with certain responsibilities and powers with respect to cities in a state of financial emergency,and WHEREAS,the exercise of those powers are necessary to help Opa-Locka recover from the financial emergency. NOW,THEREFORE,1,Jeb Bush,as Governor of Florida,by virtue of the authority vested in me by the Florida Constitution,Chapter 218,Florida Statutes,and all other applicable laws, do hereby promulgate the following Executive Order,effective immediately: 1. The City of Opa-Locka shall execute and fully comply with a State and Local Agreement of Cooperation("Agreement")designed to resolve the financial emergency and provide assistance to the City. 2. As detailed in the Agreement,the City of Opa-Locka shall obtain approval of its proposed annual budgets,and any amendments to such budgets, from the Governor before final approval of the budget. 3. The City of Opa-Locka is prohibited from issuing bonds,notes,certificates of indebtedness,or any other form of debt without the written approval of the Governor,except for continuing implementation of planned improvements to its water and sewer system utilizing the Florida Department of Environmental Protection's revolving loan program and as otherwise provided in the Agreement. 4. The City of Opa-Locka shall make available for inspection and review-records, information,reports, and assets of the City at the request of the Governor. 5. The City of Opa-Locka is prohibited from seeking application of laws under the bankruptcy provisions of the United States Constitution or Federal Statutes without prior written approval of the Governor. 6. The City of Opa-Locka shall notify the Governor in writing of any event, occurrence,transaction,or thing that might affect the financial condition of the City. 7. The City of Opa-Locka shall cooperate fully with the Governor in his effort to provide technical assistance to the City,and in his effort to consult with City officials regarding any steps necessary to bring the books of account,accounting systems,financial procedures,and reports into compliance with state requirements. 8. The Department of Revenue and the Comptroller are authorized,pursuant to Section 218.503(3)(b),Florida Statutes,to loan funds to the City of Opa-Locka upon terms and conditions to be determined by the Governor. 9. The Office of the Chief Inspector General is designated as the lead agency in carrying out this Executive Order. The Governor names the Chief Inspector General of the State of Florida as his Designee for purposes of this Executive Order and the Agreement. Other agencies are requested to provide full cooperation and support in providing assistance that the Governor's Designee finds necessary. 10.This Executive Order shall be effective until the termination of state action pursuant to Sections 218.50 to 218.54,Florida Statutes. IN TESTIMONY WHEREOF,I have hereunto set my hand and have caused the Great Seal of the State of Florida to be .�! 5.`i "_.4_ , ; affixed at Tallahassee,the Capitol,this 26th ti_ day of April,2002. At gAk4A - •I ,,," GOVERNO/ (ii rn c.7,C7 r..„).�1 , reTEST: 1 —.I 73 :v� Q ° jai SECRETARY OP a' N _-I _! rr State and Local Agreement of Cooperation Between The Governor and the City of Opa-locka Tlit3 STATE AND LOCAL AGREEMENT OF COOPERATION(the"Agreement") made and entered into as of the day of ,2002,between the Governor of the State of Florida("Governor")and the City of Opa-locka("City"),Miami-Dade County, Florida,is in accordance with Executive Order number 02-125. WHEREAS,on February 28, 2002,pursuant to Chapter 218,Florida Statutes("F,S."),the Mayor and City Commissioners notified the Governor that the City was in a state of financial emergency,and WHEREAS,the Governor has the authority under Section 218.503,F.S.,to implement measures to resolve the financial emergency,and provide technical assistance to the City,including but not limited to requiring and approving a Financial Recovery Plan(FRP),and WHEREAS,the City desires this intervention and assistance from the Governor to resolve this financial emergency,and WHEREAS,the City and the Governor's Office intend to cooperate with each other so that the City is no longer in a state of financial emergency,and WHEREAS,the Governor has designated the Office of the Chief Inspector General as the lead entity responsible for coordinating the state's efforts in providing intervention and assistance, NOW,THEREFORE,the Governor and the City agree as follows: 1. FIVE-YEAR FINANCIAL RECOVERY PLAN. a. On or before July 1,2002 the City shall approve,by a vote of the Mayor and City Commission,and submit in writing to the Governor's Designee,an FRP for fiscal years 2001-02 through 2005-06 showing balanced recurring revenues and recurring expenditures,as well as estimated reserves,for each of the five years projected. The FRP shall meet the requirements of Section 218.503(3)(h),F.S. The FRP shall also show how the City intends to resolve the deficits in fund balance and retained earnings documented in the City's fiscal year 1999-2000 audited financial statements. The FRP shall be amended if the City's fiscal year 2000-2001 audited financial statements reflect growth in these deficits. The underlying assumptions for all revenue and expenditure estimates contained in the FRP shall be documented and included within the FRP. b. Within 20 business days of receiving the FRP,the Governor's Designee shall review the FR.P,and after consultation with the City,the Governor's Designee may,in writing, direct changes to the FRP. The City shall make such changes to the FRP within 30 business days of being directed to do so. c. The FRP may be amended with the written approval of the Governor's Designee if the City requests changes to the FRP. The FRP may also be amended if the Governor's 1 Designee determines that changes to the FRP are required,or this Agreement requires an amendment. d. At the beginning of each fiscal year,an additional fifth year shall be added to the FRP and provide all types of information and data presented for previous years. Each revised FRP shall be approved by the City Commission and submitted to the Governor's Designee for approval. Within 20 business days of receiving the revised FRP,and after consultation with the City,the Governor's Designee may,in writing,direct changes to the revised FRP. The City shall make such changes within 30 business days of being directed to do so. e. The City shall adopt each and every component of the FRP and shall adopt such ordinances as necessary to implement the FRP. 2. APPROVAL OF CITY BUDGET. a. On or before August I"of each year the City shall submit to the Governor the Annual Budget as preliminarily approved by the Mayor and City Commission. The underlying assumptions for all revenue and expenditure estimates contained in the Annual Budget shall be documented and included with the budget submission. Within 20 business days of receipt,the Governor's Designee shall review the Annual Budget and,after consultation with the City,notify the City in writing if alterations to the budget are necessary. The City shall approve the budget as altered by the Governor's Designee within 30 business days of receiving it from the Governor's Designee. b. The City may request amendments to the Annual Budget by submitting such requests in writing to the Governor's Designee. Within 20 business days of receiving the request,the Governor's Designee shall respond in writing to the City's request by either rejecting the amendment,approving the amendment,or approving the amendment with changes. The City shall accept the response of the Governor's Designee. 3. COMPONENTS OF FINANCIAL RECOVERY PLAN AND ANNUAL BUDGET. The FRP and Annual Budget documents shall contain the level of detail necessary for the Governor's Designee to analyze the underlying assumptions contained in all estimates of revenues and expenditures. These documents shall be prepared using the following guidelines: a. Reasonable estimates of revenues and expenditures shall be made based on historical trends,conditions,and anticipated events; b. A timetable for elimination of all outstanding deficits in all funds shall be included; c. Current expenditures and current revenues shall be balanced for each fiscal year; d. Provisions shall be made for avoiding financial emergency conditions in the future,including establishing adequate cash reserves and fund reserves to cover unfunded liabilities; e. The FRP shall enhance the City's ability to regain short and long-term borrowing capabilities; f. Managerial and operational efficiencies and accountability shall be improved; g. City programs and services that the City cannot afford shall be modified or eliminated; 2 h. Enterprise funds of the City shall be operated as a business and operating revenues shall be sufficient to cover all costs of the operation,including depreciation; i. Efforts to collect all existing revenues due the City shall be improved; j. Compensation and benefits for City employees and the City's union contracts and negotiating practices shall be reviewed and modified as appropriate; k. The City's organizational structure shall be improved; 1. A Capital Improvement Plan for the City shalt be developed and updated annually;and, m. The City shall cooperate with an operational review of its police department and implement changes necessary for improvement in providing law enforcement and protection of the public. 4. INCURRING DEBT. The City is authorized to continue implementation of the improvements to the water and sewer system contained in the City's February,2001 Rate Study and the Facility Plan for the City of Opa-locka dated July 2000 so long as the related rate increases have been approved by the City Commission. The City may continue to borrow funds under the Florida Department of Environmental Protection's revolving loan program pursuant to that agency's approval. The City is prohibited from entering into any other form of debt or liability,which exceeds twelve months for repayment,without the prior written approval of the Governor's Designee. 5. REPORTING TO THE GOVERNOR'S OFFICE. Beginning June 1,2002,and every month thereafter,the City shall provide the Governor's Designee a Monthly Revenue and Expenditure Report that compares actual revenues and expenditures in each fund with the projected figures contained in the Annual Budget. 6. FINANCIAL INTEGRITY ORDINANCE. Within six months after execution of the Agreement,the City Council shall adopt a Financial Integrity Ordinance,which shall set forth the necessary procedures to be followed by the City in carrying out its financial affairs. The City shall submit a copy of the proposed ordinance to the Governor's Designee. Within 20 business days after receiving the proposed ordinance,the Governor's Designee shall review the proposed ordinance,and after consultation with the City,the Governor's Designee may,in writing,direct changes to the proposed ordinance. The City shall make such changes to the proposed ordinance before its adoption. 7. FINANCIAL AND CONTRACTUAL OBLIGATIONS. The City shall be prohibited from entering into any financial or contractual obligations that are not specifically authorized by the Annual Budget or this Agreement and that are not consistent with the FRP. 8. FAILURE TO COMPLY. The City shall notify the Governor's Designee immediately, in writing,if the City,the Mayor,or any City Commissioner determines that the City has violated or anticipates a violation of any of the terms or conditions of this Agreement,including but not limited to:(a)the failure of the City to submit any plan or document under this Agreement;(b)an act of commission or omission by the City that jeopardizes the City's financial recovery;or(c)deviation by the City from any plan or document hereunder approved 3 by the Governor's Designee. The notification of a violation or anticipated violation shall contain sufficient detail for a determination of what actions are necessary to remedy the non-compliance. If the Governor's Designee determines the City has failed to comply with any term or condition of the Agreement,the Governor may then take any action necessary to protect the health,safety and welfare of the citizens of the City,including but not limited to,the appointment of a Financial Emergency Oversight Board. 9. INDEPENDENT REVIEW BY THE QOVERNOR'S OFFICE. The City agrees that the Governor's Designee may assign staff to conduct or cause to be conducted such audits. examinations,or studies of the City as the Governor's Designee may deem necessary. 10. GOVERNOR'S DESIGNEEE. The Governor delegates to the Office of the Chief Inspector General the authority to implement the terms and conditions of this Agreement and act as the Governor's Designee as set forth herein. 11. DURATION OF THIS AGREEMENT. The terms and conditions of this agreement shall remain in effect until such time as the Governor concludes that the state of financial emergency no longer exists,pursuant to Section 218.504,F.S. 12. AMENDMENTS OR MODIFICATIONS.All requests by the parties for an amendment or modification to this Agreement shall be submitted in writing to the Governor's Designee and shall only become effective with the prior written consent of the Governor or his Designee. Consent to an amendment shall not be unreasonably withheld. 13. NOTICES AND COMMUNICATIONS. Any and all notices and other forms of communication related to this Agreement shall be served in writing by facsimile transmission, electronic mail,personal delivery,or overnight courier,as follows: To the City: Mr.Newell J.Daughtrey,City Manager City of Opa-locka,City Hall 777 Sharazad Boulvard Opa-locka,Florida 33054 Telephone:(305)688-4611 Fax:(305)953-2870 To the Governor: Mr.Deny Harper,Esquire Chief Inspector General Office of Governor Job Bush The Capitol,Room 2103 Tallahassee,Florida 32399-0001 Telephone: (850)922-4637 Fax:(850)921-0817 16. MINDING EFFECT. This Agreement shall be binding upon and enforceable against any successors of the City,including but not limited to,successive City Managers,Mayors,or City Commissioners. 4 17. ACKNOWLEDGEMENT. By signing this Agreement, the parties hereto confirm and state that they have carefully read the Agreement,they know the contents thereof,and that they fully expect to carry out each and every obligation set forth herein.Further,the Mayor and the City Manager affirms by their signature affixed hereto that the Agreement has been approved by resolution of the City. IN WITNESS WHEREOF,the parties hereto execute this agreement,and they affirm that they have the power to do so on behalf of the City and the Governor's Office. Alvin Miller,Mayor City of Opa-locka Newell Daughtrey,City Manager City of Opa-locka Jeb Bush,Governor State of Florida • 5