Friday, October 3, 2014

Pinellas County PSTA Interlocal Agreement Review - Sections 12, 13 and 14

Pinellas County Voters are being asked to approve a law (The GreenLight Plan) that would provide for an open ended 1% increase in the County sales tax.

You can read a review of the actual law you will approve if you vote yes at Sales Tax (GreenLight) Ordinance Review

Due to pressure from opponents of the Greenlight plan and the Sales tax ordinance, the Suncoast Transit Authority and the Pinellas County Commission found it necessary to develop the Interlocal Agreement before the election to add some direction to how the revenue from the 1% sales tax will be spent and to attempt to add some clarity regarding the suspension of the current PSTA Ad valorem property tax. 

The following document is a reproduction of the Pinellas County Interlocal Agreement with the Suncoast Transit Authority approved by the Pinellas County Commission.

The text of the Agreement appears in italics     My Comments appear in Bold regular text.

PSTA shall annually provide the County a copy of its adopted budget within fifteen (15) days after its adoption. PSTA shall also cause to be prepared each year audited financial statements and shall provide a copy of such statements to the County by April 15th following the end of each Fiscal Year. PSTA shall provide a progress report on PSTA's Greenlight Pinellas Plan each year within 60 days of the end of PSTA's fiscal year, including but not limited to an updated pro forma. PSTA shall also provide the County with any information required to be provided to bondholders, lenders, and credit and liquidity providers under the provisions of the Trust Agreement or with respect to any governmental grant or loan and such other information as the County may reasonably request from time to time, and the County shall also provide to PSTA with such information as PSTA may reasonably request from time to time.

This Section sets up the broad framework for reporting. Note that the reporting is after the fact on an annual basis

PSTA covenants and agrees that it will maintain, preserve, keep and operate, or cause to be maintained, preserved, kept and operated, all of PSTA's facilities, assets and properties, including those that are acquired and/or constructed in connection with PSTA's Greenlight Plan, in good and efficient repair, working order and operating condition in conformity with standards customarily
followed in the transit industry. PSTA will make all necessary and proper repairs, renewals and replacements which are economically sound, so that at all times PSTA's operations and business can be properly and advantageously conducted in an efficient manner.

This Section requires that PSTA maintain its infrastructure but does not set up or require any PSTA funding or reserve requirements to provide funding for these activities.
There is no provision for capital dollars for replacement of the train engine or its cars that have typical 20 to 25 year life expectancy. This probably the reason the Bonds are allowed in place for up to 90 years so PSTA can borrow and keep the sales tax in place to refinance the train.

PSTA shall procure and maintain, or cause to be procured and maintained, so long as it is receiving Surtax Net Proceeds hereunder, subject to the requirements of State law, insurance against such risks and at such coverage levels and with such deductibles as shall be determined by PSTA to be adequate to protect PSTA and its assets and which insurance shall be consistent with the types and levels of insurance maintained by public transit authorities similar to PSTA. Such insurance shall include, but not be limited to, liability and property, which property insurance shall cover loss or damage by fire, lightning, explosion, windstorm, flood (where required), riot, aircraft, vehicle damage, smoke and such other hazards as are normally covered by such insurance. In procuring such insurance, and each year when renewing such insurance, PSTA shall employ an insurance consultant or actuary acceptable to the County to advise and recommend the types and levels of insurance to be maintained by PSTA.

Standard insurance requirement clause.

 Watch My Video Green Light - It's a Bad Law before you vote.

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Disclosures: Contributor to
No Tax for Tracks.

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