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(3.A MEMORANDUM TO: Board of County Commissioners FROM: Dylan Reingold, County Attorney DATE: February 11, 2020 SUBJECT: Indian River County et al., v. United States Department of Transportation, et al. BACKGROUND. On March 17, 2015, the Indian River County Board of County Commissioners (the "Board") authorized the County Attorney's Office to file a complaint in federal court challenging the U.S. Department of Transportation's ("USDOT' s") approval of the issuance of the $1.75 billion of tax exempt private activity bonds for what was then termed the All Aboard Florida project (the "Project"). On March 24, 2015, the Board authorized the County Attorney's Office to include the Emergency Services District as a plaintiff in the case. As the Board is aware, as a result of the decision in that case, the USDOT withdrew its private activity bond allocation for Phase II of the Project. On December 19, 2017, the Board authorized the County Attorney's Office to file a lawsuit against the USDOT in conjunction with issuance of the Record of Decision for Phase II of the Project. On February 13, 2018, Martin County, Indian River County and CARE -FL filed a lawsuit in federal court challenging the validity of the private activity bonds and the National Environmental Policy Act ("NEPA") process for Phase II of the Project. Martin County and CARE -FL have since withdrawn from the case. The court held an oral argument on the motions for summary judgment on November 27, 2018. On December 24, 2018, the court issued an opinion granting Defendants' Motion for Summary Judgment, granting Intervenor -Defendant's Motion for Summary Judgment, and denying Indian River County's Motion for Summary Judgment. On February 5, 2019, the Board voted to file an appeal with the D.C. Circuit Court of Appeals. Oral arguments were held on September 24, 2019. Although the County had meritorious claims on appeal relating to the illegality of the private activity bonds and the insufficient NEPA analysis performed by the Federal Railroad Administration, on December 20, 2019, the D.C. Circuit Court of Appeals denied the appeal. On January 14, 2020, the Board voted to not seek any further review in the case. The decision was based upon the recommendation of outside counsel, which the County Attorney shared, that further petitions were not likely to be granted. 187