CITY OF HALLANDALE BEACH

MEMORANDUM

DATE:             July 23, 2008

TO: D. Mike Good, City Manager

FROM: William M. Brant, P.E., Director, Public Works, Utilities and Engineering

SUBJECT:     FDOT Proposal to Lease Alligator Alley  CAD# 008/08

PURPOSE:

The Commission adopt a resolution opposing the Florida Department of Transportation (FDOT) proposal to lease Alligator Alley.

BACKGROUND:

In its June 18, 2008 meeting, the Commission requested staff draft a resolution opposing the proposed leasing of Alligator Alley.

The Florida Department of Transportation (FDOT) has for many years effectively managed the 78-mile toll road known as “Alligator Alley.”  Over the past 10 years, toll revenues have consistently been much higher than operating and routine maintenance expenses.  With the toll technologies that have become increasingly popular, the efficiency of operation has increased, and the gap between revenues and expenses has grown significantly.

DISCUSSION:

FDOT is soliciting bids to lease Alligator Alley.  The lessee would pay up-front rent and provide a share in toll revenues.  The scope of the proposal includes operation, maintenance and toll collection for a lease term of 50 – 75 years.  Submission of proposals is scheduled for September 30, 2008, and award of proposal is anticipated before the end of the 2008 calendar year.

While FDOT supports this as a new funding source to support its transportation projects, staff believes that the long-term effect would be increased fares for the patrons of this roadway.  This would add an additional burden to motorists who are already being impacted by the steep rise in fuel costs.  Furthermore, it is the responsibility of the State government to maintain its own public roadways.  

Another consideration is environmental.  Alligator Alley is located within the Everglades, and the restoration of the Everglades is a high priority for the State of Florida.  However, under private lease, the State will not have as much control over this strategic property.  This may have a long-term detrimental impact upon Everglades Restoration efforts.

RECOMMENDATION:

The City Commission adopt a resolution opposing FDOT’s proposal to lease Alligator Alley.

Reviewed:

_______________________________                                                          __________

D. Mike Good, City Manager                                                                           Date

_____Approved                _____Disapproved                _____Hold for Discussion