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HomeMy WebLinkAboutDocumentation_Workshop_Tab 03_4/3/2023Agenda Item #3. Workshop STAFF MEMO Meeting: Workshop - Apr 03 2023 Staff Contact: Jeremy Allen, Village Manager Department: Manager Discuss Options For Future Enhancements To Open Spaces The Village continues to seek ways enhance existing and to expand open space throughout the Village with limited resources. The Village staff will continue to look for grant opportunities, donations, and Private -Public Partnerships (P3). Grant Parks and Open Space Florida Forever Grant Program The Parks and Open Space Florida Forever grant program assists the Department of Environmental Protection in helping communities meet the challenges of growth, supporting viable community development and protecting natural resources and open space. *If funded by the State of Florida, eligible funding would be available for application in June, 2023. Florida Recreation Development Assistance Program (FRDAP). This competitive, reimbursement grant program provides financial assistance for acquisition or development of land for public outdoor recreation. Eligible participants include all county governments, municipalities in Florida and other legally constituted local governmental entities with the responsibility for providing outdoor recreational sites and facilities for the general public. *Application cycle estimated in August, 2023 Donations Per Village of Tequesta Donation Policy (Approved Aug. 1, 2022) The Village welcomes donations that enhance Village services, reduce costs that the Village would incur in the absence of the donation, or that otherwise provide a benefit to the Village. Donations, whether in -kind, cash, or otherwise, shall be complete transfers of ownership, rights, privileges, and/or title in or to the donated goods or services and become exclusive property of the Village upon delivery. Private -Public Partnership Page 45 of 70 Agenda Item #3. Public -private partnerships involve collaboration between a government agency and a private -sector company that can be used to finance, build, and operate projects. Financing a project through a public - private partnership can allow a project to be completed and/or make it a possibility. Public -private partnerships often involve concessions, protection from liability, or partial ownership rights over nominally public services and property to private sector, for -profit entities. Florida Statutes require for a P3 procurement, it is necessary that the local government entering into the P3 project must own the project and the property upon which it is developed at the conclusion of the development. Attached is the State Statutes regulating Private -Public Partnerships This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768- 0443. PROJECT NAME: NA BUDGET: NA ENCUMBERED: NA Proposed: NA PROJECTED TOTAL: NA Donation Policy Amended 8-11-2022 The 2022 Florida Statutes Projected Remaining: NA Page 46 of 70 Agenda Item #3. EXHIBIT A Directive Number: Effective Date: August 1, 2022 Approved by: Ap.^AAAAA, Jn y AlleUiwllage, Manager TITLE: Village of Tequesta Donation Policy OBJECTIVE: The purpose of this policy is to establish rules and regulations governing the acceptance, valuation, and recognition of all types of donations, gifts, and sponsorships from third parties to support Village governmental activities that serve a public purpose. This policy is intended to create practices that adequately safeguard public funds, provide for accountability, and ensure compliance with all federal, state and local laws. This policy is separate and distinct from the Code of Ethics for Public Officers and Employees, Part III, Chapter 112, Florida Statutes, as well as the gift policy included in the Palm Beach County Code of Ethics. SCOPE/RESPONSIBILITY: This policy applies to all Village employees, organizations, volunteers and individuals who receive, authorize, accept, value, or record donations, gifts, or sponsorships on behalf of The Village. PROCEDURES: Definitions 1. Donation or Gift — refers to a contribution made to the Village of Tequesta without expectation of goods, services, or significant benefit in return. Donations may be in the form of money or in -kind contributions of products, services, investment securities, real or personal property or any combination thereof. For purposes of this policy, the terms "donation" and "gift" shall be synonymous. 2. Donation Agreement -an agreement between the Village and the donor that details any restrictions on a donation as well as the respective obligations of the donor and the Village. 1 Page 47 of 70 Agenda Item #3. 3. Donor— a person or other legal entity that proposes or provides a donation to the Village. 4. Endowment — donations that are restricted to the extent that only earnings, and not principal, may be used for a particular purpose. 5. Fundraising— any activity conducted with the intent of generating donations to the Village. Fundraising activities may include, but are not limited to, promoting endowment programs, program adoption or pledge drives, and contacting individuals, companies, foundations, or other entities with a request for a donation to the Village. 6. In -Kind — a donation provided in the form of products, goods and/or services that do not include a monetary exchange. 7. Public Funds - defined as money, funds, and accounts, regardless of the source from which the funds are derived, that are owned, held, or administered by the state or any of its political subdivisions. All monies received through donations, gifts, or sponsorships are considered public funds. 8. Sponsorship — an arrangement in which one party provides money, goods or services in exchange for access to the commercial marketing potential associated with the other party's activities. 9. Vendor— any person or entity who has a pending bid proposal, an offer or request to sell goods or services, sell or lease real or personal property, or who currently sells goods or services, or sells or leases real or personal property to the Village. For purposes of this definition a vendor entity includes an owner, director, manager or employee. General Policv Statements 1. The Village welcomes donations that enhance Village services, reduce costs that the Village would incur in the absence of the donation, or that otherwise provide a benefit to the Village. It is the policy of the Village of Tequesta to consider all donation requests and decide if accepting such donations is in the best interest of the community. 2. The Village has no obligation to accept any donation proposed by a donor. 3. All donations shall be in compliance with Chapter 112, Florida Statutes, as well as Sec. 2-444, Palm Beach County Code of Ethics. 4. The collection of funds or assets associated with donations, gifts or sponsorships will comply with the Village's cash receipting policies. The expenditure of any Page 48 of 70 Agenda Item #3. public funds associated with donations, gifts, or sponsorships will also comply with the Village's purchasing policies. 5. Donations, whether in -kind, cash, or otherwise, shall be complete transfers of ownership, rights, privileges, and/or title in or to the donated goods or services and become exclusive property of the Village upon delivery. 6. Donations, gifts, and sponsorships shall not be directed at specific Village employees, vendors, or brand name goods or services. 7. Donated funds shall not compensate public employees, directly or indirectly. 8. Donations or gifts shall not be accepted that advertise or depict products that are prohibited by law for sale or use by minors, such as alcohol, tobacco, or other substances that are known to endanger the health and well-being of minors. 9. Village employees are not permitted to accept personal payments or gratuities in any form from a vendor or potential vendor as a precondition for purchase of any product or service. 10. The Village shall comply with all applicable laws and regulations of the Internal Revenue Service regarding the acceptance of donations. All costs, including initial installation, labor and materials associated with a donation are the responsibility of the donor, unless otherwise agreed to by the Village. Some projects may require an endowment to ensure the longevity of the gift and to assist the Village with future maintenance. 11.The Village reserves the right to decline donations, gifts, and sponsorships that are deemed to have not been made with the intent of furtherance of a public purpose. 12. The making of a donation to the Village will not provide any extra consideration to the donating or sponsoring party in relation to any Village procurement, any regulatory activities of the Village, or other Village business. No Village employee or other Village official is authorized to offer any such extra consideration to a donating party. 13. In no event shall the Village be held liable for value or tax assertions/claims by the donor. The donor(s) agree(s) to hold the Village harmless and indemnify the Village for any and all claims which might arise from any person, entity or corporation, resulting from the donor's use of the Village property or right-of-way for installation purposes, or arising from the donor's performance or improvement/item donated pursuant to this policy. 3 Page 49 of 70 Agenda Item #3. 14. The Village does not provide legal, accounting, tax or other such advice to donors. Each donor is ultimately responsible for ensuring that the donor's proposed donation meets and furthers the donor's charitable, financial and estate planning goals. As such, each donor is encouraged to meet with a professional advisor before making any donation to the Village. Process 1. Types of Donations: Donations may be received in the form of cash, financial securities, real or personal property. Donations may be restricted or unrestricted. 2. Who May Accept Donations: Donations of $5,000 or less may be accepted by the Village Manager. All donations exceeding $5,000 must be brought before the Village Council for approval and acceptance. All donations other than real property may be evaluated and accepted by the following persons or bodies ("authorized person") based on the value and nature of the donation — as follows: Description of Donation Authorized Person Donations of $5,000 or less Village Manager_ ..... Donationsgreater than $5,000 Village Council 1 -........... _. _ ..... Anonymous donations Village Council ; 3. For Donations greater than $5,000 a memo/letter detailing the intended purpose for using these funds must be submitted by the donating party to the Village Manager. As necessary, the Village may develop a review team to consider the proposal. In certain instances, the appropriate Advisory Board or the Village Council may be involved in the review process. The following guiding principles will be considered when evaluating a donation: • appropriate and safe location for placement, easements, utilities, existing structures; • durability, high -quality materials, longevity, conformity with Village's architectural standards; • liability, safety; • future or ongoing maintenance, budget impact; • future site development plans; • natural environment; • accessibility, usefulness; and/or • overall public acceptance/approval. Page 50 of 70 Agenda Item #3. 4. Depending on the nature of the donation, the Village may request supplemental information. 5. Before acceptance of a donation valued at more than $5,000, the respective obligations of the donor and the Village shall be set forth in a donation agreement. 6. The Village Manager may accept or decline any donation in the Village Manager's sole discretion or may choose to request Village Council consideration of any donation. 7. Because the Village is prohibited from investing in equities and many debt securities, donations of publicly traded equity and debt securities will be immediately sold upon receipt in the Village's designated brokerage account. The sales proceeds are then transferred from the Village's brokerage account to its depository bank account. 8. For gifts of property that require an independent qualified appraisal, Internal Revenue Service regulations require the following to be included in the appraisal: • Full description of the property. • The physical condition of any tangible property. • Date (or expected date) of contribution. • List how the property will be used by the Village • Name, address, and taxpayer identification number of the appraiser. • Qualifications of the qualified appraiser. • A statement that the appraisal was prepared for income tax purposes. • Date (or dates) property was valued. • The appraised fair market value (one figure, not a range) on the date (or expected date) of the contribution. • Method of valuation (income approach, comparable sales or market data approach, replacement cost less depreciation, etc.) • The specific basis for the evaluation • Name, address, taxpayer identification number of the donor • Manner and date of acquisition and cost basis • Name, address and tax ID number of donee (Village of Tequesta) 9. For donations of real property, the following information shall be submitted for consideration to the Village Council through the office of the Village Manager: a. the appraised value of the donation; s Page 51 of 70 Agenda Item #3. b. any expenditure or maintenance obligations for the Village associated with the donation; c. whether any encumbrances or liens exist on the real property through the review of a preliminary title report; d. potential liabilities associated with the donation, such as hazardous conditions or environmental concerns; or whether an environmental audit is necessary to determine whether the property contains any hazardous material or has been used in a manner prohibited by environmental laws; e. whether the donation has any special restrictions, and if so, if those restrictions are acceptable to the Village Council; f. any recommendations for conditions of acceptance. 10.Once the proposal is reviewed, Village staff will respond to the applicant if the donation was accepted or with the reasons the donation was rejected. 11.All costs, including initial installation, labor and materials are the responsibility of the donor unless the Village agrees otherwise. Some projects may require an endowment to ensure the longevity of the gift and to assist the Village with future maintenance. In special situations, such as when the donor is allowed to hire a contractor, a memorandum of understanding or a project agreement may be required. A contingency fund may also be required to cover necessary change orders and overruns associated with the project. Remaining contingency funds will be applied to the endowment fund for future maintenance costs or returned to the donor pursuant to the pertinent project agreement. 12. Unless specifically agreed to in writing, the Village may, at any future date, elect in its sole discretion to remove or relocate the donation (donated property). No permanent right, title, or interest of any kind shall vest in the donor's behalf by virtue of donation acceptance. 13.All donations will receive appropriate recognition as determined by the Village Manager or Village Council at the time the donation is accepted. 14. The Village Manager shall prepare a monthly report to the Village Council notifying the Council of all donations accepted since the previous report, including the form of the donation, restrictions on its use, its approximate value, and the name of the donor. Page 52 of 70 Agenda Item #3. The 2022 Florida Statutes (including 2022 Special Session A and 2023 Special Session B) Title XVIII PUBLIC LANDS AND PROPERTY Chapter 255 PUBLIC PROPERTY AND PUBLICLY OWNED BUILDINGS View Entire Chapter 255.065 Public -private partnerships.— (1) DEFINITIONS. —As used in this section, the term: (a) "Affected local jurisdiction" means a county, municipality, or special district in which all or a portion of a qualifying project is located. (b) "Develop" means to plan, design, finance, lease, acquire, install, construct, or expand. (c) "Fees" means charges imposed by the private entity of a qualifying project for use of all or a portion of such qualifying project pursuant to a comprehensive agreement. (d) "Lease payment" means any form of payment, including a land lease, by a public entity to the private entity of a qualifying project for the use of the project. (e) "Material default" means a nonperformance of its duties by the private entity of a qualifying project which jeopardizes adequate service to the public from the project. (f) "Operate" means to finance, maintain, improve, equip, modify, or repair. (g) "Private entity" means any natural person, corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, nonprofit entity, or other private business entity. (h) "Proposal" means a plan for a qualifying project with detail beyond a conceptual level for which terms such as fixing costs, payment schedules, financing, deliverables, and project schedule are defined. (i) "Qualifying project" means: 1. A facility or project that serves a public purpose, including, but not limited to, any ferry or mass transit facility, vehicle parking facility, airport or seaport facility, rail facility or project, fuel supply facility, oil or gas pipeline, medical or nursing care facility, recreational facility, sporting or cultural facility, or educational facility or other building or facility that is used or will be used by a public educational institution, or any other public facility or infrastructure that is used or will be used by the public at large or in support of an accepted public purpose or activity; 2. An improvement, including equipment, of a building that will be principally used by a public entity or the public at large or that supports a service delivery system in the public sector; Page 53 of 70 Agenda Item #3. 3. A water, wastewater, or surface water management facility or other related infrastructure; or 4. Notwithstanding any provision of this section, for projects that involve a facility owned or operated by the governing board of a county, district, or municipal hospital or health care system, or projects that involve a facility owned or operated by a municipal electric utility, only those projects that the governing board designates as qualifying projects pursuant to this section. (j) "Responsible public entity' means a county, municipality, school district, special district, or any other political subdivision of the state; a public body corporate and politic; or a regional entity that serves a public purpose and is authorized to develop or operate a qualifying project. (k) "Revenues" means the income, earnings, user fees, lease payments, or other service payments relating to the development or operation of a qualifying project, including, but not limited to, money received as grants or otherwise from the Federal Government, a public entity, or an agency or instrumentality thereof in aid of the qualifying project. (1) "Service contract" means a contract between a responsible public entity and the private entity which defines the terms of the services to be provided with respect to a qualifying project. (2) LEGISLATIVE FINDINGS AND INTENT. —The Legislature finds that there is a public need for the construction or upgrade of facilities that are used predominantly for public purposes and that it is in the public's interest to provide for the construction or upgrade of such facilities. (a) The Legislature also finds that: 1. There is a public need for timely and cost-effective acquisition, design, construction, improvement, renovation, expansion, equipping, maintenance, operation, implementation, or installation of projects serving a public purpose, including educational facilities, transportation facilities, water or wastewater management facilities and infrastructure, technology infrastructure, roads, highways, bridges, and other public infrastructure and government facilities within the state which serve a public need and purpose, and that such public need may not be wholly satisfied by existing procurement methods. 2. There are inadequate resources to develop new educational facilities, transportation facilities, water or wastewater management facilities and infrastructure, technology infrastructure, roads, highways, bridges, and other public infrastructure and government facilities for the benefit of residents of this state, and that a public -private partnership has demonstrated that it can meet the needs by improving the schedule for delivery, lowering the cost, and providing other benefits to the public. 3. There may be state and federal tax incentives that promote partnerships between public and private entities to develop and operate qualifying projects. 4. A procurement under this section serves the public purpose of this section if such procurement facilitates the timely development or operation of a qualifying project. (b) It is the intent of the Legislature to encourage investment in the state by private entities; to facilitate various bond financing mechanisms, private capital, and other funding sources for the development and operation of qualifying projects, including expansion and acceleration of such financing to meet the public need; and to provide the greatest possible flexibility to public and private entities contracting for the provision of public services. Page 54 of 70 Agenda Item #3. (3) PROCUREMENT PROCEDURES. —A responsible public entity may receive unsolicited proposals or may solicit proposals for a qualifying project and may thereafter enter into a comprehensive agreement with a private entity, or a consortium of private entities, for the building, upgrading, operating, ownership, or financing of facilities. (a)1. The responsible public entity may establish a reasonable application fee for the submission of an unsolicited proposal under this section. 2. A private entity that submits an unsolicited proposal to a responsible public entity must concurrently pay an initial application fee, as determined by the responsible public entity. Payment must be made by cash, cashier's check, or other noncancelable instrument. Personal checks may not be accepted. 3. If the initial application fee does not cover the responsible public entity's costs to evaluate the unsolicited proposal, the responsible public entity must request in writing the additional amounts required. The private entity must pay the requested additional amounts within 30 days after receipt of the notice. The responsible public entity may stop its review of the unsolicited proposal if the private entity fails to pay the additional amounts. 4. If the responsible public entity does not evaluate the unsolicited proposal, the responsible public entity must return the application fee. 5. If the responsible public entity chooses to evaluate an unsolicited proposal involving architecture, engineering, or landscape architecture, it must ensure a professional review and evaluation of the design and construction proposed by the initial or subsequent proposers to assure material quality standards, interior space utilization, budget estimates, design and construction schedules, and sustainable design and construction standards consistent with public projects. Such review shall be performed by an architect, a landscape architect, or an engineer licensed in this state qualified to perform the review, and such professional shall advise the responsible public entity through completion of the design and construction of the project. (b) The responsible public entity may request a proposal from private entities for a qualifying project or, if the responsible public entity receives an unsolicited proposal for a qualifying project and the responsible public entity intends to enter into a comprehensive agreement for the project described in the unsolicited proposal, the responsible public entity shall publish notice in the Florida Administrative Register and a newspaper of general circulation at least once a week for 2 weeks stating that the responsible public entity has received a proposal and will accept other proposals for the same project. The timeframe within which the responsible public entity may accept other proposals shall be determined by the responsible public entity on a project -by -project basis based upon the complexity of the qualifying project and the public benefit to be gained by allowing a longer or shorter period of time within which other proposals may be received; however, the timeframe for allowing other proposals must be at least 21 days, but no more than 120 days, after the initial date of publication. If approved by a majority vote of the responsible public entity's governing body, the responsible public entity may alter the timeframe for accepting proposals to more adequately suit the needs of the qualifying project. A copy of the notice must be mailed to each local government in the affected area. Page 55 of 70 Agenda Item #3. (c) If the solicited qualifying project provided in paragraph (b) includes design work, the solicitation must include a design criteria package prepared by an architect, a landscape architect, or an engineer licensed in this state which is sufficient to allow private entities to prepare a bid or a response. The design criteria package must specify reasonably specific criteria for the qualifying project such as the legal description of the site, with survey information; interior space requirements; material quality standards; schematic layouts and conceptual design criteria for the qualifying project; cost or budget estimates; design and construction schedules; and site development and utility requirements. The licensed design professional who prepares the design criteria package shall be retained to serve the responsible public entity through completion of the design and construction of the project. (d) Before approving a comprehensive agreement, the responsible public entity must determine that the proposed project: 1. Is in the public's best interest. 2. Is for a facility that is owned by the responsible public entity or for a facility for which ownership will be conveyed to the responsible public entity. 3. Has adequate safeguards in place to ensure that additional costs or service disruptions are not imposed on the public in the event of material default or cancellation of the comprehensive agreement by the responsible public entity. 4. Has adequate safeguards in place to ensure that the responsible public entity or private entity has the opportunity to add capacity to the proposed project or other facilities serving similar predominantly public purposes. 5. Will be owned by the responsible public entity upon completion, expiration, or termination of the comprehensive agreement and upon payment of the amounts financed. (e) Before signing a comprehensive agreement, the responsible public entity must consider a reasonable finance plan that is consistent with subsection (9); the qualifying project cost; revenues by source; available financing; major assumptions; internal rate of return on private investments, if governmental funds are assumed in order to deliver a cost -feasible project; and a total cash -flow analysis beginning with the implementation of the project and extending for the term of the comprehensive agreement. (f) In considering an unsolicited proposal, the responsible public entity may require from the private entity a technical study prepared by a nationally recognized expert with experience in preparing analysis for bond rating agencies. In evaluating the technical study, the responsible public entity may rely upon internal staff reports prepared by personnel familiar with the operation of similar facilities or the advice of external advisors or consultants who have relevant experience. (4) PROJECT APPROVAL REQUIREMENTS. —An unsolicited proposal from a private entity for approval of a qualifying project must be accompanied by the following material and information, unless waived by the responsible public entity: (a) A description of the qualifying project, including the conceptual design of the facilities or a conceptual plan for the provision of services, and a schedule for the initiation and completion of the qualifying project. Page 56 of 70 Agenda Item #3. (b) A description of the method by which the private entity proposes to secure the necessary property interests that are required for the qualifying project. (c) A description of the private entity's general plans for financing the qualifying project, including the sources of the private entity's funds and the identity of any dedicated revenue source or proposed debt or equity investment on behalf of the private entity. (d) The name and address of a person who may be contacted for additional information concerning the proposal. (e) The proposed user fees, lease payments, or other service payments over the term of a comprehensive agreement, and the methodology for and circumstances that would allow changes to the user fees, lease payments, and other service payments over time. (f) Additional material or information that the responsible public entity reasonably requests. Any pricing or financial terms included in an unsolicited proposal must be specific as to when the pricing or terms expire. (5) PROJECT QUALIFICATION AND PROCESS. — (a) The private entity, or the applicable party or parties of the private entity's team, must meet the minimum standards contained in the responsible public entity's guidelines for qualifying professional services and contracts for traditional procurement projects. (b) The responsible public entity must: 1. Ensure that provision is made for the private entity's performance and payment of subcontractors, including, but not limited to, surety bonds, letters of credit, parent company guarantees, and lender and equity partner guarantees. For the components of the qualifying project which involve construction performance and payment, bonds are required and are subject to the recordation, notice, suit limitation, and other requirements of s. 255.05. 2. Ensure the most efficient pricing of the security package that provides for the performance and payment of subcontractors. 3. Ensure that the comprehensive agreement addresses termination upon a material default of the comprehensive agreement. (c) After the public notification period has expired in the case of an unsolicited proposal, the responsible public entity shall rank the proposals received in order of preference. In ranking the proposals, the responsible public entity may consider factors that include, but are not limited to, professional qualifications, general business terms, innovative design techniques or cost -reduction terms, and finance plans. The responsible public entity may then begin negotiations for a comprehensive agreement with the highest -ranked firm. If the responsible public entity is not satisfied with the results of the negotiations, the responsible public entity may terminate negotiations with the proposer and negotiate with the second -ranked or subsequent -ranked firms, in the order consistent with this procedure. If only one proposal is received, the responsible public entity may negotiate in good Page 57 of 70 Agenda Item #3. faith, and if the responsible public entity is not satisfied with the results of the negotiations, the responsible public entity may terminate negotiations with the proposer. Notwithstanding this paragraph, the responsible public entity may reject all proposals at any point in the process until a contract with the proposer is executed. (d) The responsible public entity shall perform an independent analysis of the proposed public -private partnership which demonstrates the cost-effectiveness and overall public benefit before the procurement process is initiated or before the contract is awarded. (e) The responsible public entity may approve the development or operation of an educational facility, a transportation facility, a water or wastewater management facility or related infrastructure, a technology infrastructure or other public infrastructure, or a government facility needed by the responsible public entity as a qualifying project, or the design or equipping of a qualifying project that is developed or operated, if: 1. There is a public need for or benefit derived from a project of the type that the private entity proposes as the qualifying project. 2. The estimated cost of the qualifying project is reasonable in relation to similar facilities. 3. The private entity's plans will result in the timely acquisition, design, construction, improvement, renovation, expansion, equipping, maintenance, or operation of the qualifying project. (f) The responsible public entity may charge a reasonable fee to cover the costs of processing, reviewing, and evaluating the request, including, but not limited to, reasonable attorney fees and fees for financial and technical advisors or consultants and for other necessary advisors or consultants. (g) Upon approval of a qualifying project, the responsible public entity shall establish a date for the commencement of activities related to the qualifying project. The responsible public entity may extend the commencement date. (h) Approval of a qualifying project by the responsible public entity is subject to entering into a comprehensive agreement with the private entity. (6) INTERIM AGREEMENT. —Before or in connection with the negotiation of a comprehensive agreement, the responsible public entity may enter into an interim agreement with the private entity proposing the development or operation of the qualifying project. An interim agreement does not obligate the responsible public entity to enter into a comprehensive agreement. The interim agreement is discretionary with the parties and is not required on a qualifying project for which the parties may proceed directly to a comprehensive agreement without the need for an interim agreement. An interim agreement must be limited to provisions that: (a) Authorize the private entity to commence activities for which it may be compensated related to the proposed qualifying project, including, but not limited to, project planning and development, design, environmental analysis and mitigation, survey, other activities concerning any part of the proposed qualifying project, and ascertaining the availability of financing for the proposed facility or facilities. (b) Establish the process and timing of the negotiation of the comprehensive agreement. Page 58 of 70 Agenda Item #3. (c) Contain such other provisions related to an aspect of the development or operation of a qualifying project that the responsible public entity and the private entity deem appropriate. (7) COMPREHENSIVE AGREEMENT. — (a) Before developing or operating the qualifying project, the private entity must enter into a comprehensive agreement with the responsible public entity. The comprehensive agreement must provide for: 1. Delivery of performance and payment bonds, letters of credit, or other security acceptable to the responsible public entity in connection with the development or operation of the qualifying project in the form and amount satisfactory to the responsible public entity. For the components of the qualifying project which involve construction, the form and amount of the bonds must comply with s. 255.05. 2. Review of the design for the qualifying project by the responsible public entity and, if the design conforms to standards acceptable to the responsible public entity, the approval of the responsible public entity. This subparagraph does not require the private entity to complete the design of the qualifying project before the execution of the comprehensive agreement. 3. Inspection of the qualifying project by the responsible public entity to ensure that the private entity's activities are acceptable to the responsible public entity in accordance with the comprehensive agreement. 4. Maintenance of a policy of public liability insurance, a copy of which must be filed with the responsible public entity and accompanied by proofs of coverage, or self-insurance, each in the form and amount satisfactory to the responsible public entity and reasonably sufficient to ensure coverage of tort liability to the public and employees and to enable the continued operation of the qualifying project. 5. Monitoring by the responsible public entity of the maintenance practices to be performed by the private entity to ensure that the qualifying project is properly maintained. 6. Periodic filing by the private entity of the appropriate financial statements that pertain to the qualifying project. 7. Procedures that govern the rights and responsibilities of the responsible public entity and the private entity in the course of the construction and operation of the qualifying project and in the event of the termination of the comprehensive agreement or a material default by the private entity. The procedures must include conditions that govern the assumption of the duties and responsibilities of the private entity by an entity that funded, in whole or part, the qualifying project or by the responsible public entity, and must provide for the transfer or purchase of property or other interests of the private entity by the responsible public entity. 8. Fees, lease payments, or service payments. In negotiating user fees, the fees must be the same for persons using the facility under like conditions and must not materially discourage use of the qualifying project. The execution of the comprehensive agreement or a subsequent amendment is conclusive evidence that the fees, lease payments, or service payments provided for in the comprehensive agreement comply with this section. Fees or lease payments established in the comprehensive agreement as a source of revenue may be in addition to, or in lieu of, service payments. Page 59 of 70 Agenda Item #3. 9. Duties of the private entity, including the terms and conditions that the responsible public entity determines serve the public purpose of this section. (b) The comprehensive agreement may include: 1. An agreement by the responsible public entity to make grants or loans to the private entity from amounts received from the federal, state, or local government or an agency or instrumentality thereof. 2. A provision under which each entity agrees to provide notice of default and cure rights for the benefit of the other entity, including, but not limited to, a provision regarding unavoidable delays. 3. A provision that terminates the authority and duties of the private entity under this section and dedicates the qualifying project to the responsible public entity or, if the qualifying project was initially dedicated by an affected local jurisdiction, to the affected local jurisdiction for public use. (8) FEES. —A comprehensive agreement entered into pursuant to this section may authorize the private entity to impose fees to members of the public for the use of the facility. The following provisions apply to the comprehensive agreement: (a) The responsible public entity may develop new facilities or increase capacity in existing facilities through a comprehensive agreement with a private entity. (b) The comprehensive agreement must ensure that the facility is properly operated, maintained, or improved in accordance with standards set forth in the comprehensive agreement. (c) The responsible public entity may lease existing fee -for -use facilities through a comprehensive agreement. (d) Any revenues must be authorized by and applied in the manner set forth in the comprehensive agreement. (e) A negotiated portion of revenues from fee -generating uses may be returned to the responsible public entity over the life of the comprehensive agreement. (9) FINANCING. — (a) A private entity may enter into a private -source financing agreement between financing sources and the private entity. A financing agreement and any liens on the property or facility must be paid in full at the applicable closing that transfers ownership or operation of the facility to the responsible public entity at the conclusion of the term of the comprehensive agreement. (b) The responsible public entity may lend funds to private entities that construct projects containing facilities that are approved under this section. (c) The responsible public entity may use innovative finance techniques associated with a public - private partnership under this section, including, but not limited to, federal loans as provided in Titles 23 and 49 C.F.R., commercial bank loans, and hedges against inflation from commercial banks or other private sources. In addition, the responsible public entity may provide its own capital or operating budget to support a qualifying project. The budget may be from any legally permissible funding sources of the responsible public entity, including the proceeds of debt issuances. A responsible public entity may use the model financing agreement provided in s. 489.145(6) for its financing of a facility owned by Page 60 of 70 Agenda Item #3. a responsible public entity. A financing agreement may not require the responsible public entity to indemnify the financing source, subject the responsible public entity's facility to liens in violation of s. 11.066(5), or secure financing of the responsible public entity by a mortgage on, or security interest in, the real or tangible personal property of the responsible public entity in a manner that could result in the loss of the fee ownership of the property by the responsible public entity, and any such provision is void. (10) POWERS AND DUTIES OF THE PRIVATE ENTITY. — (a) The private entity shall: 1. Develop or operate the qualifying project in a manner that is acceptable to the responsible public entity in accordance with the provisions of the comprehensive agreement. 2. Maintain, or provide by contract for the maintenance or improvement of, the qualifying project if required by the comprehensive agreement. 3. Cooperate with the responsible public entity in making best efforts to establish interconnection between the qualifying project and any other facility or infrastructure as requested by the responsible public entity in accordance with the provisions of the comprehensive agreement. 4. Comply with the comprehensive agreement and any lease or service contract. (b) Each private facility that is constructed pursuant to this section must comply with the requirements of federal, state, and local laws; state, regional, and local comprehensive plans; the responsible public entity's rules, procedures, and standards for facilities; and such other conditions that the responsible public entity determines to be in the public's best interest and that are included in the comprehensive agreement. (c) The responsible public entity may provide services to the private entity. An agreement for maintenance and other services entered into pursuant to this section must provide for full reimbursement for services rendered for qualifying projects. (d) A private entity of a qualifying project may provide additional services for the qualifying project to the public or to other private entities if the provision of additional services does not impair the private entity's ability to meet its commitments to the responsible public entity pursuant to the comprehensive agreement. (11) EXPIRATION OR TERMINATION OF AGREEMENTS. —Upon the expiration or termination of a comprehensive agreement, the responsible public entity may use revenues from the qualifying project to pay current operation and maintenance costs of the qualifying project. If the private entity materially defaults under the comprehensive agreement, the compensation that is otherwise due to the private entity is payable to satisfy all financial obligations to investors and lenders on the qualifying project in the same way that is provided in the comprehensive agreement or any other agreement involving the qualifying project, if the costs of operating and maintaining the qualifying project are paid in the normal course. Revenues in excess of the costs for operation and maintenance costs may be paid to the investors and lenders to satisfy payment obligations under their respective agreements. A responsible public entity may terminate with cause and without prejudice a comprehensive agreement and may exercise any other rights or remedies that may be available to it in accordance with the provisions of the Page 61 of 70 Agenda Item #3. comprehensive agreement. The full faith and credit of the responsible public entity may not be pledged to secure the financing of the private entity. The assumption of the development or operation of the qualifying project does not obligate the responsible public entity to pay any obligation of the private entity from sources other than revenues from the qualifying project unless stated otherwise in the comprehensive agreement. (12) SOVEREIGN IMMUNITY. —This section does not waive the sovereign immunity of a responsible public entity, an affected local jurisdiction, or an officer or employee thereof with respect to participation in, or approval of, any part of a qualifying project or its operation, including, but not limited to, interconnection of the qualifying project with any other infrastructure or project. A county or municipality in which a qualifying project is located possesses sovereign immunity with respect to the project, including, but not limited to, its design, construction, and operation. (13) DEPARTMENT OF MANAGEMENT SERVICES. — (a) A responsible public entity may provide a copy of its comprehensive agreement to the Department of Management Services. A responsible public entity must redact any confidential or exempt information from the copy of the comprehensive agreement before providing it to the Department of Management Services. (b) The Department of Management Services may accept and maintain copies of comprehensive agreements received from responsible public entities for the purpose of sharing comprehensive agreements with other responsible public entities. (c) This subsection does not require a responsible public entity to provide a copy of its comprehensive agreement to the Department of Management Services. (14) CONSTRUCTION. — (a) This section shall be liberally construed to effectuate the purposes of this section. (b) This section shall be construed as cumulative and supplemental to any other authority or power vested in or exercised by the governing body of a county, municipality, special district, or municipal hospital or health care system including those contained in acts of the Legislature. (c) This section does not affect any agreement or existing relationship with a supporting organization involving such governing body or system in effect as of January 1, 2013. (d) This section provides an alternative method and does not limit a county, municipality, special district, or other political subdivision of the state in the procurement or operation of a qualifying project pursuant to other statutory or constitutional authority. (e) Except as otherwise provided in this section, this section does not amend existing laws by granting additional powers to, or further restricting, a local governmental entity from regulating and entering into cooperative arrangements with the private sector for the planning, construction, or operation of a facility. (f) This section does not waive any requirement of s. 287.055. History.—s. 2, ch. 2013-223; s. 1, ch. 2016-153; s. 1, ch. 2016-154; s. 7, ch. 2022-5. Page 62 of 70 Agenda Item #3. Note. —Former s. 287.05712. Page 63 of 70