May 26, 2010

Several people have asked me for a clarification of the 3 to 2 vote regarding commuter rail at the May 24 city commission meeting.

Here it is:

Three of our five commissioners thought it was a good idea to ask Orange County to allow Winter Park to leave the commuter rail system at any time for any reason without any financial obligations and instructed the city attorney and city manager to talk to Orange County about this idea.

Regards, Pete Weldon

May 20, 2010

Commissioner Dillaha has a letter in this week’s Winter Park/Maitland Observer that includes the same incendiary exaggerations I refuted earlier and that also includes this beauty:

“Question those people who are berating my fellow commissioners and me for the audacity to look out for you, the taxpayers, by renegotiating this unilateral agreement with Orange County now. Ask yourself what motivates them to push for an “agreement-at-any-cost.” Investigate who is behind the YES YES Political Action Committee.”

The meaning of the word “berate” is to “scold or criticize angrily.” I don’t know anyone who is doing that and wonder why Dillaha continues to imply some great conspiracy exists to saddle Winter Park with the horrors of a commuter rail stop. By the way, I have no involvement with the “Yes Yes Rail” PAC and you don’t have to “investigate” anything. If you are interested you can simply ask the city clerk for a copy of the financial reports of this PAC (cbonham@cityofwinterpark.org).

While you are at it you should also ask for a copy of the financial reports of the “Save Central Park” PAC that opposed the rail station in 2007. You will find that one Jack Rogers, the same fellow who wrote the letter next to Dillaha’s in this week’s Winter Park/Maitland Observer gave $5,000 to promote a “no” vote in 2007. Jack has every right to spend his money for what he believes but I question his right to pretend to be supportive of our SunRail stop if only we get a “fair deal” when we all know he has been working to kill our SunRail stop for years. [Correction: I presumed that the letter was written by John (“Jack”) Rogers, but later find out that he has a son, John Rogers Jr. who wrote the letter. Apparently, both father and son don’t want a SunRail station in Winter Park.]

The citizen’s of Winter Park need to understand the substance of the issues involving our commuter rail agreement with Orange County and separate the real issues from the political game being played by those who continue to try to kill SunRail and our Winter Park station.

No one, including me, has suggested that the city commission refrain from making requests of Orange County for changes to the commuter rail agreement.

The problem is that while it is always possible to make changes to the agreement that may prove “better” for Winter Park, the existing agreement can stand on its own without undo risk to the city. Watch out for the aftermath of any requests. You can be sure that some will be rejected and that these will be used to continue to promote the termination of our SunRail station.

Please contact our city commission members with this message:

We call for an end to the obstruction and a beginning to the cooperation needed to make our SunRail station a reality, and a social and financial success for Winter Park.

Winter Park Mayor and Commissioners can be reached at:

Mayor Ken Bradley – KBradley@cityofwinterpark.org
Commissioner Carolyn Cooper – CCooper@cityofwinterpark.org
Commissioner Phil Anderson – PAnderson@cityofwinterpark.org
Commissioner Tom McMacken – TMcMacken@cityofwinterpark.org
Commissioner Beth Dillaha – BDillaha@cityofwinterpark.org

Pete Weldon
700 Via Lombardy
Winter Park, FL 32789

May 19, 2010

The Winter Park City Commission meeting of May 24, 2010 will be focused on discussing Dillaha’s objections to the commuter rail agreement with Orange County and the current city attorney’s concerns about possible “legal risks” with that agreement. The commission agreed on May 10^th that any action taken at the May 24^th meeting will be limited to possibly requesting amendments for Orange County’s consideration and that the subject of “termination” will not be discussed.

NOTE AGAIN: A majority of the city commission agreed that the subject of “termination” will not be discussed.

While we now know that Dillaha wants to kill our commuter rail agreement, wants to kill our commuter rail stop, and wants to kill the entire SunRail system the same cannot be said for others sitting on our current city commission. All four of the other members of the commission are either on record as supporting the current agreement or have made campaign or other public commitments not to terminate the agreement with Orange County.

The current city attorney’s opinion concerns “legal risks” he believes may exist in the commuter rail agreement with Orange County and his opinion differs from that of the prior city attorney. The gist of the issue is:

• The existing agreement does not include a covenant by the city of Winter Park to appropriate funds from non-ad valorem sources to pay possible ongoing operating and maintenance costs of a commuter rail system.
• In the current attorney’s opinion the absence of such a covenant would require either a vote of the citizens to affirm these expenditures or a different form of “opt out” clause to avoid a possible violation of the Florida State Constitution.

The “legal risk” perceived by the city attorney can be resolved by asking Orange County to accept an amendment in which the City of Winter Park covenants to appropriate non-ad valorem revenues to pay commuter rail costs that may become payable if the “opt out” is not exercised after seven years of fare paying service. This simply means that costs the city may become responsible for under the agreement will not be paid from property tax revenue. Non-ad valorem revenue is all other revenues such as utility taxes and fees which constituted 55% of Winter Park’s 2009 General Fund revenues.

Please consider contacting our city commission members with this message:

We call for an end to the obstruction and a beginning to the cooperation needed to make our SunRail station a reality, and a social and financial success for Winter Park.

Winter Park Mayor and Commissioners can be reached at:

Mayor Ken Bradley – KBradley@cityofwinterpark.org
Commissioner Carolyn Cooper – CCooper@cityofwinterpark.org
Commissioner Phil Anderson – PAnderson@cityofwinterpark.org
Commissioner Tom McMacken – TMcMacken@cityofwinterpark.org
Commissioner Beth Dillaha – BDillaha@cityofwinterpark.org

Regards, Pete Weldon
700 Via Lombardy
Winter Park, FL 32789

May 17, 2010

James Harrison, Director of Growth Management for Orange County, recently offered the points below which confirm my writings on the subject of Dillaha’s continued efforts to obstruct Winter Park’s participation in SunRail.

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From: Jim.Harrison@ocfl.net [mailto:Jim.Harrison@ocfl.net]
Sent: Wednesday, May 12, 2010 4:11 PM

1. Although the City/County Agreement makes Winter Park responsible for the capital costs of constructing the station, those costs will be covered through a Federal grant and little if any cost will accrue to the City (unless the City “opts out” of the station after the money is spent).
2. FDOT is paying for the full cost of right-of-way acquisition for the corridor and so the local governments, including Winter Park, will no longer be responsible for debt service on Fixed-Guideway Bonds. This very substantially reduces the estimated system operating deficit that Winter Park would be responsible for.
3. Orange County will pay for another 30% of the operating deficit associated with the Winter Park stop, and as a result Winter Park’s share is now estimated at approximately $350,000 per year.
4. FDOT will pay 100% of the operating costs for the first 7 years, so no obligation will accrue to the local governments, including Winter Park, until 2020.
5. A number of entities, including Metroplan, LYNX, Orange County and others are evaluating dedicated funding sources for transit. We all fully expect that by 2020 there will dedicated funding for transit.
6. Winter Park has a broad ability to “opt out” of the Agreement if there is not a sufficient dedicated funding source. Winter Park has asked the County for some additional abilities to “opt out” if the funding source is in place initially and then goes away. The County will consider this.
7. The City may determine if the dedicated funding source is sufficient. In other words, if the funding source does not cover 100% of the costs the City may, at its discretion, “opt out” or stay in the Agreement.
8. Winter Park has full authority to make all zoning and land use decisions within the City and has not abdicated any of those rights. There seems to be some concern about this, but the County has no desire to be involved in City land use decisions.
9. Although the total number of trains will be greater, the number of freight trains is expected to be reduced substantially. Since Sunrail trains are much quieter, and much shorter and quicker, the overall noise and impact to the City will be reduced.
10. Current legislation in Tallahassee, which is awaiting Governor Crist’s signature, would provide funding for Winter Park to provide “quiet zones” for all crossings within the City. This is a very significant benefit to the City. It is not directly tied to Sunrail but if signed, will be incorporated into the Sunrail project design.

Jim

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I urge you to contact our city commission members with this message:

We call for an end to the obstruction and a beginning to the cooperation needed to make our SunRail station a reality, and a social and financial success for Winter Park.

Winter Park Mayor and Commissioners can be reached at:

Mayor Ken Bradley – KBradley@cityofwinterpark.org
Commissioner Carolyn Cooper – CCooper@cityofwinterpark.org
Commissioner Phil Anderson – PAnderson@cityofwinterpark.org
Commissioner Tom McMacken – TMcMacken@cityofwinterpark.org
Commissioner Beth Dillaha – BDillaha@cityofwinterpark.org

Pete Weldon
700 Via Lombardy
Winter Park, FL 32789

May 14, 2010

Commissioner Dillaha continually blusters about financial uncertainties involved in the city’s commuter rail agreement with Orange County. Having 35 years of financial management, executive leadership and investment management experience I share Ms. Dillaha’s fiscal conservatism. However, with regard to her dismissal of commuter rail, Ms. Dillaha repeatedly and consistently overstates the risks without addressing the opportunities and exaggerates the costs without addressing the benefits.

The most meaningful risks and costs of SunRail for Winter Park arise from not participating.

The following analysis relies in part on SunRail operating cost estimates from the Florida Department of Transportation (FDOT) provided in 2007. FDOT is preparing updated estimates expected to be available shortly. I will update this presentation based on the new estimates when they are available.

Financial Costs

• Capital costs of our Winter Park station are to be paid by State and Federal dollars.
• Operating and maintenance costs associated with Winter Park’s SunRail station are to be paid by FDOT during the first seven years of fare paying service.
• Winter Park’s financial exposure is protected by the “opt out” right in the existing commuter rail agreement. The “opt out” creates the opportunity to renegotiate the entire agreement or walk away from SunRail after seven years of operating experience if a funding source is not in place to defray operating and maintenance costs.

Financial Benefits

• The existence of our station will accelerate Winter Park commercial redevelopment, generating new revenues from non-residential sources to support public safety, parks, roads, bike paths… our quality of life.
• The existence of our station will increase taxable values of existing downtown properties as a result of increased economic activity related to use of the station.
• The existence of our station will increase home values relative to residential areas without a SunRail station, solidifying Winter Park’s standing as the most desirable residential community in central Florida for the long term.

Alternatives

• SunRail is a reality. Winter Park’s only alternatives are to either participate, or face the full impact of the trains passing through town without ever stopping, and never realize the benefits of participating.

While Winter Park’s financial exposure is protected by the existing “opt out” right after seven years of fare paying experience, we should look at what the operating and maintenance costs might be at that time. While there can be no certainty in the absence of experience (which is why Winter Park has the “opt out” right), the FDOT estimates give us the most educated framework available.

Using 2007 FDOT estimates, Winter Park’s annual SunRail costs after seven years of fare paying service would be about $350,000 without originally projected bonding costs, and $700,000 including such bonding costs. This is net of the 30% to be paid by Orange County under the existing agreement. The Commuter Rail Commission Technical Advisory Committee has indicated that FDOT is now committing to pay the full cost of the CSX transaction that enables SunRail. This action would remove the bonding costs, eliminating approximately half of the costs Winter Park may absorb in the absence of opting out or renegotiating in year seven. (James Harrison, Director of Growth Management for Orange County, recently confirmed the expected $350,000 annual expense level and the removal of the bonding costs.)

Winter Park has 28,000 residents, $4.5 billion in property valuation and a $45 million annual General Fund budget.

• It would take a onetime increase of $85 million in new property valuation at today’s millage rate to contribute $350,000 to our annual revenues, $160 million in new property valuation at today’s millage rate to contribute $700,000 to our annual revenues.
• The estimated value of new construction in Winter Park averaged $125 million over each of the past five years.
• Over $400 million dollars in new taxable value has been created in our CRA (downtown redevelopment district) alone during the past 16 years.

If the “opt out” right is not exercised or used to renegotiate AT OUR OPTION, projected annual SunRail costs can be covered in full by incremental commercial redevelopment (which the station’s existence nurtures and will accelerate), making it unlikely residents will have to contribute a dime (even though we will benefit). Note again that FDOT pays operating costs of SunRail for the first seven years after fare paying service begins which takes us at least to 2020. Also note that expiration of the CRA in 2027 would contribute about $1.5 million in new annual revenues to the General Fund based on current CRA valuations (which will be higher in 2027). Higher ad valorem revenues (property taxes), while not directly appropriated to support SunRail costs, are fungible with non-ad valorem revenues appropriated in support of such costs. That is, it doesn’t matter which bucket the money comes from.

Conclusions:

• Winter Park’s financial exposure is protected by the existing “opt out” right.

• The first seven years of experience will demonstrate both the actual costs and actual benefits of Winter Park’s participation in the SunRail system. We will be able to judge how to manage the “opt out” based on these realities.

• SunRail gives Winter Park a competitive advantage that will nurture and accelerate commercial redevelopment to help finance our quality of life and lessen upward pressure on residential taxes while also assuring our home values remain competitive for the long term.

• The absence of a SunRail station exposes Winter Park to the full impact of the commuter rail system without any possible benefits as the trains pass through town and never stop.

• The failure of Winter Park to embrace the SunRail opportunity now will prove a strategic blunder of unparalleled magnitude down the road.

I urge you to contact our city commission members with this message:

We call for an end to the obstruction and a beginning to the cooperation needed to make our SunRail station a reality, and a social and financial success for Winter Park.

Winter Park Mayor and Commissioners can be reached at:

Mayor Ken Bradley – KBradley@cityofwinterpark.org
Commissioner Carolyn Cooper – CCooper@cityofwinterpark.org
Commissioner Phil Anderson – PAnderson@cityofwinterpark.org
Commissioner Tom McMacken – TMcMacken@cityofwinterpark.org
Commissioner Beth Dillaha – BDillaha@cityofwinterpark.org

Pete Weldon
700 Via Lombardy
Winter Park, FL 32789

After several years of attempting to obstruct SunRail, including a January 2009 effort to use her position on our city commission to terminate Winter Park’s commuter rail agreement with Orange County, Commissioner Dillaha has put her objections in writing. Her April 29, 2010 letter to the citizens of Winter Park contained the following objections, the italicized text numbered 1 through 9 below. My response follows each objection.

Dillaha: 1)      A weak and vague ability for the city to “opt-out” of the agreement beyond one 60-day window within 99 years.

The statement above is false. The “opt out” is available after seven years of fare paying service if a funding source is not available to defray costs. As a business matter the current “opt out” language creates the opportunity to renegotiate the entire agreement with the county after seven years of commercial service and related experience, or to walk away from SunRail if there is no funding source, or if the city is not satisfied with a funding source that may be in place or offered.

The first seven years of operating and maintenance costs are being paid by the Florida Department of Transportation (FDOT).

Given the practical realities associated with the existing “opt out” language Ms. Dillaha’s other objections are irrelevant as the city’s financial exposure is protected. However, in the interest of addressing all of her concerns I discuss items 2 through 9 below.

Dillaha: 2)      No voice or say in the annual operating and maintenance deficits (which grow rapidly every year) to be paid to Orange County.  This is taxation without representation.  I thought those days ended 200 years ago.

The statements above are overstated and false. Winter Park is a member of the Technical Advisory Committee that helps guide SunRail policy. Winter Park’s possible share of SunRail operating and maintenance costs is not taxation and I have not seen any projections that such costs will “grow rapidly every year.”

Dillaha: 3)      There is no set formula to determine Winter Park’s share of costs.

The statement above is false. Section 4.01(A) of the Interlocal Governance Agreement defines and details methods of calculating the variables used to apportion operating and maintenance costs. The 2007 cost estimates clearly note that operating and maintenance costs are allocated based on the Share of Average of Total and Peak Boardings by station as calculated according to the Master agreements.

Dillaha: 4)      There is no right to terminate or end the agreement should the station have adverse impacts, not live up to expectations and / or no longer be able to be funded.

The statements above are unrealistic and inaccurate. Should Orange County have the right to increase Winter Park costs when the station proves to have positive impacts? Should Winter Park have the right to close the station if it does not live up to Ms. Dillaha’s expectations, whose expectations? Our choice was to commit to participate in SunRail or bear the full impact of the trains coming through Winter Park without stopping.

The only issue Winter Park needs to consider going forward is management of the financial exposure and the current “opt out” language gives us the leverage to successfully negotiate with the county based on realities existing after seven years of operating experience, including ongoing funding, or “opt out.”

Dillaha: 5)      The hands of future commissioners cannot, by law, be bound to continue funding annual operating and maintenance deficits.

The statement above is false. The city attorney has noted that the city commission has the authority, just as the counties have done, to covenant to appropriate non-ad valorem funds to support ongoing SunRail operating and maintenance costs. There is no basis for Orange County to object to such an amendment to the existing agreement.

(Ad valorem revenues are also known as property tax revenues. Non-ad valorem revenue is all other revenues such as utility taxes and fees which constituted 55% of Winter Park’s 2009 total General Fund revenues.)

Dillaha: 6)      Unknown liabilities for accidents and injuries caused by CSX negligence and / or the commuter rail trains.

The statement above is meaningless. Liabilities for accidents and injuries are always unknown and always covered by insurance. The Master agreements between the counties already require $200 million in liability insurance per occurrence and a $5 million self insured deductible, which amounts and form may be adjusted from time to time.

Dillaha: 7)      A referendum of the voters is required, per Florida Constitution, for use of ad valorem revenue for projects exceeding more than 12 months.  While you were asked if the city may use city land and may use city funds to construct a station, you were not asked the most critical question:  may the city use ad valorem revenue (your property taxes) for 99 years to fund operating and maintenance deficits of a mass transit system.

The statements above are irrelevant.

• The city commission has the authority to appropriate non-ad valorem revenues to pay the city’s share of operating and maintenance costs without a vote of the electorate.
• Expected costs related to operating and maintaining the Winter Park station as part of the commuter rail system were included in the city brochure mailed city wide in connection with the March 2007 referendum. That is, citizens voted for a station with the best available information about the commuter rail system operating and maintenance costs related to that station.
• The city commission was not and is not required to ask the voters to approve commuter rail system operating and maintenance costs.
• FDOT will be paying all operating and maintenance costs for the first seven years of fare paying service after which the city has an “opt out” right. Therefore, the city may never be obligated to pay operating and maintenance costs of a mass transit system, but does have the opportunity to negotiate based on actual experience at that time.

Dillaha: 8)      No other county on the proposed commuter rail line is requiring it’s cities to pay annual operating and maintenance costs.  I do not think it is fair that Winter Park is expected to pay, and pay twice, do you?

The statements above are irrelevant. Winter Park will only pay if we chose to do so at the end of the initial seven year period. Winter Park can “opt out” if there is no funding source or a funding source we consider insufficient to adequately defray costs, we can work to negotiate a different deal, or pay the operating and maintenance costs under the existing agreement. We can make these judgments at that time based on seven years of experience.

The discussion should be about the value of having a station, not worrying about whether another county has a county-wide funding source before Orange County has one. This discussion will be ongoing based on real world experience through the first seven years of fare paying service as the “opt out” period approaches.

Dillaha: 9)      No language that ensures Winter Park taxpayers are not on the hook for $3 Million or more to build the station if the promised federal money does not materialize.

The statement above is false. The city has the right to terminate the agreement if State or Federal funds sufficient to construct the Winter Park station are not made available by a certain date. If circumstances change where Winter Park is required to pay for the station in order to participate in the SunRail system I would endorse termination of the existing agreement and so would everybody else.

Conclusion:

We can participate in fear mongering, argue the legal details, the financial details, and the risks, as well as proffer irrelevant and false arguments but the real issues remain.

• SunRail is going to happen with or without Winter Park and if we chose to listen only to Ms. Dillaha the trains will be passing through Winter Park and never stop (for 99 years), subjecting us to the full impact of commuter rail while never reaping any of the benefits.
• Winter Park’s financial exposure is protected by the existing “opt out” right.
• The benefits and opportunities of Winter Park’s participation in the SunRail system far outweigh the costs and risks.

I urge you to contact our city commission members prior to the May 24, 2010 meeting with this message:

We call for an end to the obstruction and a beginning to the cooperation needed to make our SunRail station a reality, and a social and financial success for Winter Park.

The Winter Park Mayor and Commissioners can be reached at:

Mayor Ken Bradley – KBradley@cityofwinterpark.org
Commissioner Carolyn Cooper – CCooper@cityofwinterpark.org
Commissioner Phil Anderson – PAnderson@cityofwinterpark.org
Commissioner Tom McMacken – TMcMacken@cityofwinterpark.org
Commissioner Beth Dillaha – BDillaha@cityofwinterpark.org

Pete Weldon
700 Via Lombardy
Winter Park, FL 32789

May 12, 2010

The Winter Park City Commission meeting of May 24 has been set aside for commission and public input, and possibly action on Commissioner Beth Dillaha’s continuing efforts to terminate Winter Park’s participation in the SunRail commuter rail system.

Ms. Dillaha continues her efforts to terminate Winter Park’s commuter rail agreement with Orange County with the intent to terminate Winter Park’s commuter rail station. (A previous move by Ms. Dillaha to terminate the agreement in January 2009 was defeated by a 3 to 2 vote.) If Ms. Dillaha wanted something other than termination of our commuter rail station she would have been working with Orange County over the past two years instead of co-opting untold hours of city commission time, spending taxpayer money for conflicting legal opinions, and proffering irrelevant and false objections in an effort to undermine the commuter rail agreement.

Ms. Dillaha is asking for the SunRail commuter trains to come through Winter Park and never stop. She is asking that we forego having our station (which is fully paid for by state and federal dollars) and face all the impacts of having commuter trains go through Winter Park while never realizing any of the benefits. A few moments of thought on this reality will make it clear that killing our participation in SunRail would be a monumental strategic disaster for Winter Park.

• SunRail is going to happen.
• State and federal funds are paying the $1.2 billion capital cost to establish the four county SunRail system.
• The city’s financial exposure to ongoing costs is protected.
• Winter Park’s decision was to participate or have the trains running through our town without stopping.
• The citizens made the decision to have a station in a 2007 referendum and our City Commission has both the authority and the duty to make that happen.

Winter Park citizens need to write the City Commission to demand a stop to the obstruction and a beginning to the cooperation needed to make our SunRail station a reality and a success for Winter Park.

Pete Weldon
700 Via Lombardy
Winter Park