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Approve and authorize the Chairman to execute the SunRail Third Amendment to the Interlocal Governance Agreement and the Operations Phasing Agreement to timely effectuate the transition of the Commuter Rail System from the Florida Department of Transportation (“FDOT”) to the Central Florida Commuter Rail Commission (“Commission”). Countywide (Kate Latorre, County Attorney)
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Division:
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County Attorney Office
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Authorized By:
Kate Latorre, County Attorney
Contact/Phone Number:
Kate Latorre/407-665-7250
Background:
Phase I of SunRail (between DeBary through downtown Orlando and into Orange County) was completed in 2014 and Phase II South of SunRail (between Orange County and Poinciana) was completed in 2018. Phase II North of SunRail (between Debary and DeLand) is anticipated to be completed in May 2024.
FDOT has primarily been responsible for funding, operating, maintaining, and managing SunRail operations pursuant to three main agreements, as have been amended - the Interlocal Governance Agreement, the Interlocal Funding Agreement, and the Interlocal Operating Agreement. The Interlocal Governance Agreement requires the Commission to complete a transition and implementation plan that will ensure a safe and orderly transition of SunRail from the FDOT to the Commission. The Third Amendment to the Interlocal Governance Agreement and the Operations Phasing Agreement are intended to meet such requirement.
Third Amendment to the Interlocal Governance Agreement
In 2007, the Local Government Partners entered into an Interlocal Governance Agreement to create the Central Florida Commuter Rail Commission and to outline responsibilities and funding obligations. In 2008, the Interlocal Governance Agreement was amended to provide for the designation or election of alternate Members to the Commission, and for the designation of alternate members to the Technical Advisory Committee. In 2010, the Interlocal Governance Agreement was amended again to change and extend the term of the first Commission Board Chair, and to revise the obligations of the Local Government Partners to fund SunRail.
The Third Amendment to the Interlocal Governance Agreement will be an agreement among the five Local Government Partners and provides for two notable modifications:
1. A SunRail Governing Board action to Expand Service or Extend Service now requires a unanimous vote of the Members. Notwithstanding, if one or more Local Government Partners agree in writing to fund the additional services in addition to their share of the Annual Funding Amount, the unanimous approval of only those who agree to fund such additional services is required. If a Local Government Partner did not agree in writing to fund the additional services, such Local Government Partner has an opportunity to later opt back in.
2. The Third Amendment specifies that the Local Government Partners’ collective annual obligation to fund the Annual System Deficit for Fiscal Year 2024/2025 is anticipated to be a total of $63 million. This annual obligation will be adjusted each Fiscal Year to reflect the change in the Railroad Cost Recovery Index, plus one percent, from the previous year, as further specified in the Third Amendment. This cap could be increased by a unanimous vote of the Commission. While not explicitly provided for in the Third Amendment, Seminole County will be responsible for its share of self-insurance in a one-time estimated amount of $1,735,690. Therefore, Seminole County’s proportionate share for Fiscal Year 2024/2025 is approximately $12.1 million.
Operations Phasing Agreement
The Operations Phasing Agreement (“OPA”) is a new agreement among the five Local Government Partners, FDOT, and the Commission. The purpose of the OPA is to provide for a transition and implementation plan for SunRail, as required by the Interlocal Operating Agreement. The OPA provides for a two-phased transfer approach.
Phase I will be the financial transition set to occur on December 31, 2024, which will be the last day of the FDOT Funding Period, except as outlined in the OPA. Upon expiration of the FDOT Funding Period, FDOT will continue to operate, manage, and maintain SunRail using its current staffing without charge to the Commission until Phase II of the transition.
Phase II will be the transition of the operation, management, and maintenance of SunRail from the FDOT to the Commission, which must be completed no later than December 31, 2027.
In the time between Phase I and Phase II, FDOT and Local Government Partner staff will be diligently working towards completion of tasks outlined in the OPA.
Requested Action:
Staff requests the Board approve and authorize the Chairman to execute the SunRail Third Amendment to the Interlocal Governance Agreement and the Operations Phasing Agreement to timely effectuate the transition of the Commuter Rail System from the FDOT to the Commission.