Albert J Carbon III, P. E., Public Works Director

Resolution for a Third Amendment to the Settlement Agreement Regarding Dissolving the County Resource Recovery Board (RRB)

Issue Statement: In June 2015, the County and the Settling Municipalities entered into a settlement agreement to settle the litigation styled City of Sunrise, et al. v. Broward County, 17th Judicial Circuit Court Case No. CACE-013-015660 (the "Original Settlement Agreement").

The Original Settlement Agreement provided for the County and the Settling Municipalities to sell the parcel of land known as Alpha 250, as further described in the Original Settlement Agreement ("Alpha 250").

 Subsequent to the effective date of the Settlement Agreement, the Parties entered into two amendments thereto, extending the sale date of Alpha 250 through and including October 11, 2022 (the Original Settlement Agreement and two amendments thereto are collectively referred to as the "Settlement Agreement").

A proposed Third Amendment to the Settlement Agreement of the Resource Recovery Board provides for extending the Sale Delay Period to October 11, 2023 and for up to three (3) additional one year periods.  

Recommended Action: Adopt a Resolution for the Third Amendment to the Settlement Agreement of the Resource Recovery Board providing for extending the Sale Delay Period to October 11, 2023 and for up to three (3) additional one year periods.  

Background: Broward County and most of the municipalities entered in to a Settlement Agreement to settle litigation regarding dissolving the Resource Recovery Board (RRB).  The RRB was a dependent county special district that handled solid waste disposal until June 2013. Pursuant to the RRB Settlement Agreement the Alpha 250 property, an RRB property asset located in Pompano Beach (map attached), was to be sold within one year (with the proceeds paid pro rata to the cities).  

In 2016, the Settlement Agreement was amended to extend the date for the sale of the Alpha 250 property in order to allow the County to have a consultant perform a study of the Alpha 250 property and solid waste disposal issues in Broward County. The First Amendment extended the Alpha 250 sale date for one year (until October 11, 2017), and also gave a group of Mayors (selected by the participating municipalities) the ability to extend it for one additional year, until October 11, 2018. That extension was done.  

In late 2019, the County, the Settling Municipalities, and other municipalities established a Solid Waste Working Group (SWWG).  The SWWG is a group of elected municipal and county officials to jointly develop recommendations for a regional solid waste management system based on shared principles and commitments, including a mutually agreed governance structure.  The County and the Settling Municipalities desire to further amend the Settlement Agreement to extend the Sale Delay Period for Alpha 250 and provide the SWWG additional time to conduct it's work. 

The time period set forth in the Second Amendment is coming to an end and a third amendment is needed to delay the sale deadline of the Alpha 250 site to provide sufficient time to complete the report on Solid Waste and Recycling Issues in Broward County. 

No financial impact to this action.  If the determination is ultimately made to sell the Alpha 250 Site, based on the terms of the settlement, each participating municipality's pro rata share of the 2012 total solid waste tonnage determines its share of proceeds for any potential sale of the "Alpha 250" property. Oakland Park's share amounted to 3.4991% of the total annual tonnage of solid waste of the participating municipalities. 

Staff recommends City Commission adopt a resolution approving the Third Amendment to the Settlement Agreement of the Resource Recovery Board that includes extending the Settlement Agreement till October 11, 2023 and for up to three (3) additional one year periods.