ADD-ON LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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ADD-ON: STATE HIGHWAY LIGHTING, MAINTENANCE, AND COMPENSATION AGREEMENT
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RECOMMENDATION:
recommendation
The City Council of the City of Pensacola authorize the execution of the State Highway Lighting, Maintenance and Compensation Agreement with the Florida Department of Transportation.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
This item is an “add-on” to the agenda for the July meeting due the receiving of the agreement in late May missing the June meeting deadlines. The State agreement needed to be signed prior to the States fiscal year which is July 1st. The City has contacted the State and informed them of the delay and the reason behind the delay. After legal review, it was determined that due to the new term length in the contract that it did not qualify as part of the “indefinite period” that is stated in the resolution resulting this being a times sensitive issue it requested to be placed as an add on item for this months agenda.
The City accepts limited responsibility for the continued maintenance and operation of the streetlights and all related appurtenances within City limits on Florida Department of Transportation roadways. In return, Florida Department of Transportation agrees to pay the City an annual compensation amount based upon pre-programmed fiscal dollars for the estimated services provided by the City. The City has had a maintenance agreement with Florida Department of Transportation since 2003 for streetlights on the State Highway System. The reimbursement for maintenance of streetlights under this agreement has increased steadily since its execution.
The Florida Department of Transportation has made minor changes to the verbiage of the existing contract which would allow the state to participate in the reimbursement of damaged by a third party and placed a contract term limit on the agreement of seven (7) years.
2003 Agreement
Compensation based on documentation of costs (utility costs, labor and materials) with the amount to be agreed upon prior to the beginning of the fiscal year.
2012 Agreement
Compensation based on lump sum payment calculation based on the number of streetlights on the state times 90% (assumed lighting up time) time the Fiscal Year Unit Rate. The Fiscal Year Unit Rate is based on a statewide average of lighting costs for FY10-11, FY11-12, and FY12-13. The FY Unit Rate for each fiscal year will increase by 3% over the previous fiscal year. Using the FY Unit Rate based on the statewide average for FY11-12 increases the City’s compensation by almost 30% ($51,615) over FY10-11.
2021 Agreement
Compensation based on lump sum payment calculation based on the number of streetlights on the state times 90% (assumed lighting up time) time the Fiscal Year Unit Rate. The FY Unit Rate for each fiscal year will increase by 3% over the previous fiscal year. Using the FY Unit Rate based on the statewide average for FY20-21 increases the City’s compensation to $421,736.04 for FY21-22. Terms of the agreement is seven (7) years.
PRIOR ACTION:
April 9, 2003 - City Council approved an action item/resolution entitled “State highway system lighting, maintenance and compensation agreement.”
May 23, 2012 - City Attorney approval of rewording.
FUNDING:
Budget: $ N/A
Actual: $ N/A
FINANCIAL IMPACT:
NONE
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
7/12/2021
STAFF CONTACT:
Keith Wilkins, City Administrator
Ryan Novota P.E. Transportation Engineer
ATTACHMENTS:
1) Contract “State Highway Lighting, Maintenance, and Compensation Agreement”
2) Resolution 19-03 “ State Highway System Lighting, Maintenance, and Compensation Agreement”
PRESENTATION: No end