BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY. Bulk Item: Yes No X Staff Contact Person/Phone #: Lisa Tennyson x4444

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1 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: May 21, 2014 Division: County Administrator Bulk Item: Yes No X Staff Contact Person/Phone #: Lisa Tennyson x4444 AGENDA ITEM WORDING: Report by Monroe County s State Representive Holly Raschein & county s state lobbyists on the outcomes from the Florida 2014 legislative session. ITEM BACKGROUND: The 2014 state legislative session ended on May 1, In the Florida legislature Monroe County is represented by Representative Holly Raschein and Senator Dwight Bullard. Monroe County is also represented by state lobbyists Robert Reyes (with Floridian Partners), John Wayne Smith and Bill Peebles (with William Peebles, PA), and Dean Cannon (with Capitol Insight). Monroe County is also a member of the Florida Association of Counties, and the Small County Coalition, which advocate for county interests in the state legislature. PREVIOUS RELEVANT BOCC ACTION: Approval of Monroe County State and Federal Legislative Agenda in September 2013 (with changes approved in November 2013, January 2014, and February 2014.) Approval of lobbying services contract with Floridian Partners in July Approval of lobbying services contract with William Peebles, PA and Capitol Insight, LLC in September CONTRACT/AGREEMENT CHANGES: NA STAFF RECOMMENDATIONS: NA TOTAL COST: NA_ INDIRECT COST: BUDGETED: Yes No COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year APPROVED BY: County Atty OMB/Purchasing Risk Management DOCUMENTATION: Included XX Not Required DISPOSITION: AGENDA ITEM # Revised 1/09

2 MEMORANDUM DIVISION OF COUNTY ADMINISTRATOR, LEGISLATIVE AFFAIRS To: Board of County Commissioners Thru: Roman Gastesi, County Administrator From: Lisa Tennyson, Legislative Affairs Director Re: 2014 Florida Legislative Post-Session Wrap Up Date: May 8, 2014 The 2014 State Legislative Session ended officially on May 1, We are now in a pre-veto period, in which most bills, including importantly the State Budget bill (HB 5001, the General Appropriations Act), have or will shortly be passed to the Governor, for his signature or veto. Here is a brief final report on the major state legislative priorities and issues for Monroe County: MONROE COUNTY LEGISLATIVE PRIORITIES: 1. WASTEWATER FUNDING Mayfield Year 2: County Position: Support for year two of four year appropriation program for 50M in state funding to finance the construction costs of mandated wastewater improvements in the Florida Keys. o Outcome: $50M for wastewater projects in the Florida Keys, in addition to $4.7M for debt service, is included in the (pre-veto) General Appropriations bill. 2. LAND ACQUISTION County position: Support amending proviso language for Florida Forever Funding, to ensure inclusion of Florida Keys in eligible areas for land purchase. o Outcome: We were NOT able to change the proviso language. However, we were able to secure high level meetings with DEP whose staff informed us that proviso language change is not required, and that the Florida Keys is not excluded by the language. County position: Support inclusion of Monroe County s FF projects in next year s DEP FF Work Plan. o Outcome: Yet to be determined. We secured high level meetings with each of the Cabinet members, DEP and Governor s Office to advocate for these projects. County position: Support Monroe County s land acquisition efforts thru military buffer land program by moving NASKW projects up the priority list. o Outcome: Yet to be determined. We secured meetings with DEO/Florida Defense Taskforce to advocate for these projects. 3. AFFORDABLE WIND and FLOOD INSURANCE County position: Oppose legislation that increases premiums or limits availability of coverage. o Outcome: There was no legislation introduced that proposed increases. Another bill that would ve allowed for shift of homeowner policies away from Citizens into largely unregulated surplus lines carriers was DEFEATED. County position: Support exemption for owners of developed properties in CBRS from being ineligible for Citizens wind insurance coverage. o Outcome: Legislation was PASSED that maintains coverage for CBRS properties for one year, while Citizens and OIR staff develop a policy approach for these properties. 1 P a g e

3 County position: Monitor state legislative efforts that address flood insurance rate increases related to the National Flood Insurance Program. o Outcome: Legislation was PASSED that is designed to attract private sector flood insurance providers to the State. There is no telling at this time whether the providers will come and whether or not their rates will be affordable. 4. COUNTY REVENUE SOURCES: County position: Oppose any legislation that eliminates, reduces or restricts uses of County revenue sources including the Communications Services Tax and the Local Business Tax. o Outcome: Proposed legislation to reduce the CST was removed from final tax package. No legislation related to the Local Business Tax was introduced. The tax swap on the sale of electricity (PECO funding plan) originally has a negative fiscal impact for local governments but FAC and Fl League of Cities secured amended language that provides adjustments to county and city revenue sharing formulas to offset the fiscal impact. The final PECO concept will not impact local government revenues. Legislation to reduce Commercial Lease tax did not move. 5. VACATION RENTAL REGULATION County Position: Support repeal of pre-emption of local governments to regulate vacation rentals to enable enforcement of noise, parking, garbage and other quality of life impacts. o Outcome: Legislation was approved that permits some, limited regulation of vacation rentals. However, the legislation creates a catch-22 situation for us. It gives us back the authority to regulate vacation rentals but if we do, we will have to abide the bill s prohibition against limiting rental stays to anything over 7 days, and lose the benefit in our grandfathered ordinance that permits us to limit vacation rental stays to a minimum of 28 days. 6. STATE FUNDING FOR COUNTY INFRASTRUCTURE and SERVICES County position: Support continued/increased state funding for local infrastructure and service needs: roads/bridges, water quality, affordable housing, elderly and social services, health department and homelessness o Outcome: Most areas see an increase in funding, though there are some decreases. Health & Human Services: o Community Mental Health: $311M, a $17M decrease from last year; o Community Substance Abuse Services: $142M, a $15M increase over last year, o County Health Depts: $143M, a $10M increase over last year. Transportation: o $26.2M for the Small County Road Assistance Program, a decrease of.5m from last year o $82M for the Small County Outreach Program, increased of $36M from last year. o $48M for the County Transportation Program, decrease of $27M from last year. Libraries: $30M, a $3.4M increase. Affordable Housing: $96M for SHIP (State Housing Improvement Partnership) and $67M for SAIL (State Apartment Incentive Loan program); that s 67% funding for SHIP and full funding for SAIL. Homelessness: A bill enabling use of Discretionary Sales for homeless services was defeated. Another bill authorizing DCF to administer Challenge grants to support local homeless coalitions passed, and was contingent on an appropriation. $4M was appropriated for Challenge Grants. Public Safety: o Shared County/State Juvenile Detention: Counties contribution to juvenile detention estimated at $57.8M, reduction of $13M 2 P a g e

4 o County Article V requirements: Provides a one year exemption for FY14-15 from s , F.S., which requires counties to spend 1.5% more per year on an annual basis for county funded court system obligations. This exemption represents almost a $7 million savings to counties. MONROE COUNTY LEGISLATIVE ISSUES/CONCERNS: Growth Management Regulation: All of the damaging GM and environmental bills were defeated. Permit Extensions: A renewed 2-year extension PASSED. Exemption for Transportation Concurrency Fees for Commercial Development <6,000 sq ft: Did NOT pass. Bert Harris/Flood Insurance: Amendment protecting counties who participate in the NFIP and who adopt implementing regulations that limit development from property owner claims under the Bert Harris Act did NOT pass. Juvenile Detention Costs: Legislation creating cost share with state did NOT pass. The House and Senate moved to the Governor s proposal (57-43 cost share) during budget conference. As such, the current billing system remains, and DJJ will promulgate new rules. Derelict Vessels: PASSED, on way to Governor. We supported this. Citizens CBRS: PASSED, on way to Governor. We supported this. Citizens Mitigation Form: Being handled administratively; this is favorable to us. Crisis Stabilization Units: PASSED (with favorable language), on way to Governor. We support the favorable language. Film Tax Credit: Did NOT pass. FRS: Proposed changes to the defined benefit plan (increased vesting period and closing it to new elected and senior management) did NOT pass. MISCELLANEOUS BUDGET AND LEGISLATIVE HIGHLIGHTS: State Budget for FY (HB 5001): As of the writing of this memo, the Budget not yet been presented to the Governor. Its stands at $77.1B, the highest budget in the State s history: o Total Budget: $77.1B (up $2.5B from last year) o Gen Rev: $27.9B o Trust Funds: $22.8B o Federal Funds: $26.4B (up $3B from last year) o Total Reserves: $ 3.1B o FTEs: 114,445 (net reduction from last year of 41) Funding for Florida Forever: $57M total: o o o $10M from Gen Rev $7.5M from Land Acquisition Trust Fund ($5M for Rural lands) $40M from sale of surplus non-conservation lands Funding for Everglades Restoration: Everglades priority projects received over $259M: o Lake Okeechobee cleanup $19 M o Water quality restoration $32 M o C-44 $40 M o C-111 $5 M 3 P a g e

5 o C-43 $18 M o Tamiami Trail bridge $90 M o Picayune Strand $2 M o Kissimmee River $5 M o Lake Worth Lagoon $2.075 M o Northern Everglades BMPs $3 M o Indian River Lagoon (IRL) dredging $10 M o IRL resource recovery pilot $1 M o Water quality monitoring $4 M o Alligator Alley tolls to SFWMD $8.6 M o SFWMD support $2.7 M o Dispersed water storage $13 M o Loxahatchee/St. Lucie Initiative $4.153 M o PLUS:$90M 3-year match for federal funds for Tamiami Trail bridging from FDOT Springs Legislation: The springs bill fails, but springs rec d $10M in funding. Medicaid Expansion: Not addressed. Tax Cuts: A total $500M; $400M of the $500M reduction in auto registration fees. Gun Regulation: A bill that would ve permitted the carrying of a concealed weapon without a permit during a state of emergency was defeated (a rare defeat for the NRA.) Bills Passed: This Legislature passed 264 bills, the fewest since at least They also filed the fewest bills since at least (The Florida Current, May 5, 2014) 4 P a g e

6 About Monroe County Monroe County s coast line extends from the Everglades to the Dry Tortugas, and encompasses the Florida Keys National Marine Sanctuary, 3 National Parks (Everglades, Dry Tortugas and Biscayne), 5 State Parks, 4 National Wildlife Refuges, and 3 State Aquatic Preserves. Monroe County is also designated by the State of Florida as an Area of Critical State Concern. The Florida Keys marine environment supports Monroe County s number one industry: tourism. Each year, $1.2 billion is spent by over 3 million visitors. (FKNMS Revised Management Plan, 2007) These economic numbers continue to grow. More recently, in 2011, there were 4 million visitors to Monroe County and $2.2 billion directly spent on tourism. (Monroe County Tourist Development Council, 2011) More comprehensively, Monroe County s and SE Florida s unique reef environment generates more than 70,000 jobs and $6 billion dollars in economic activity annually. (Bulletin of Marine Science, 2005, Rosenstiel School of the University of Miami.) Monroe County s and marine ecosystem supports over 6,000 species of fish, invertebrates and plants, and critical spawning habitats to over 520 species of recreational and commercial migratory, endemic, coastal & pelagic finfish and shellfish, providing unparalleled support to fisheries and essential habitats throughout Florida and the Gulf. (NOAA s Florida Keys National Marine Sanctuary Revised Management Plan, 2007.) Monroe County s nearshore waters alone provide habitat for 80 percent of the fish species in the U.S. and most commercially valuable fish species depend on Monroe County nearshore waters at some point during their development. (US Army Corps Florida Keys Water Quality Improvement Program Management Plan, 2006.) With the highest number of recognized International Game Fish Association (IGFA) all tackle, saltwater line class, and saltwater flyrod "World Record Game Fish" records, Monroe County is the global center of recreational and sport fishing. Monroe County is the only port in the entire state of Florida to rank among the nation s top 50 ports in landings tonnage or landings value. In fact, with $56M in landings value, it is the 13th most valuable port the nation and the 5th most valuable port in the Gulf of Mexico. (NOAA s Fisheries of the United States, August 2012.) Monroe County is home to Naval Air Station Key West, the U.S. Navy s premiere training facility, and hosts 60,000 training operations a year. Monroe County s population is 73,560 (EDR, Feb 2014); however, the County s functional population is twice that at 157,063 (combined residents and visitors on any given day.) Monroe County generates $165M in sales tax annually; and receives back as its shared revenue $10M. STATE LEGISLATIVE DISTRICTS Senate District 39: Sen. Dwight Bullard House District 120: Rep. Holly Raschein MONROE COUNTY BOARD OF COUNTY COMMISSIONERS Mayor Sylvia Murphy, District 5 BOCC5@monrocounty-fl.gov Mayor Pro Tem Danny Kolhage, District 1 BOCC1@monroecounty-fl.gov George Neugent, District 2 BOCC2@monroecounty-fl.gov Heather Carruthers, District 3 BOCC3@monroecounty-fl.gov David Rice, District 4 BOCC4@monroecounty-fl.gov County Administrator Roman Gastesi Gastesi-roman@monroecounty-fl.gov Office: Cell Director of Legislative Affairs Lisa Tennyson Tennyson-lisa@monroecounty-fl.gov Office: Simonton Street, Suite Key West, FL Monroe County Board of County Commissioners STATE LEGISLATIVE PRIORITIES PRIORITIES: ) WASTEWATER INFRASTRUCTURE TO PRESERVE WATER QUALITY IN THE FLORIDA KEYS 2) CONSERVATION LAND ACQUISITION TO PROTECT THE ENVIRONMENT OF THE FL KEYS 3) AFFORDABLE WIND INSURANCE AND FLOOD INSURANCE TO PROTECT ECONOMY OF FL KEYS 4) PROTECT COUNTY REVENUES TO PROTECT LOCAL TAXPAYERS AND LOCAL ECONOMY 5) REPEAL LOCAL GOVERNMENT PRE- EMPTION ON VACATION RENTAL REGULATION TO PROTECT COMMUNITIES 6) STATE FUNDING FOR COUNTY INFRASTRUCTURE AND SERVICE NEEDS

7 1. WASTEWATER INFRASTRUCTURE to preserve water quality in the Florida Keys SUPPORT year two of four year appropriation program for $50 million per year in state funding for a total of $200 million to finance the construction costs of mandated wastewater improvement projects in the Florida Keys. WATER QUALITY The degradation of water quality threatens the unique, fragile and complex marine ecosystem of the Florida Keys. This ecosystem is the lifeblood of the State and local commercial fisheries and a marine-based tourism economy unrivaled in the State of Florida. The State recognized the importance of water quality to this ecosystem with the and in Outstanding Florida Waters (OFW) in In 1990, Congress created the National Marine Ecosystem and directed the US EPA and the State to develop a Water Quality Protection Program to restore water quality. The implementation of Advanced Wastewater Treatment in the Florida Keys is pursuant to the Water Quality Protection Program, and OFW regulations. This program ensures water quality to safeguard: the world s third largest barrier reef, and the only living coral reef system in the continental U.S.,; the largest sea grass meadow in the hemisphere,; and more than 6,000 species of marine life. and protects the foundation of a marine-based 2. CONSERVATION LAND ACQUISITION to protect the environment and property rights in the Florida Keys A. SUPPORT amending current eligibility requirements for Florida Forever funding to include conservation land in Areas of Critical State Concern (in statute and budget proviso language.) B.SUPPORT inclusion of three Monroe County Florida Forever projects in DEP s FY15/16 Florida Forever Work Plan (a total of 3,500 privately-owned, vacant parcels). The County has pledged $2M in match funding (if statutorily required.) C. SUPPORT Monroe County s land acquisition efforts through the military buffer land program by moving NASKW Military Installation Area s base protection projects from Tier 3 to Tier 1 on DEO/Fl Defense Task Force priority list. D. SUPPORT continued and additional Florida Forever funding and OPPOSE any legislation that limits/restricts public purchase of conservation land. AREA OF CRITICAL STATE CONCERN The State of Florida designated the Florida Keys as an Area of Critical State Concern, in recognition of its significant environmental and natural resources. This designation and state hurricane evacuation rules protect the natural resources and keep residents and visitors safe but they also combine to severely restrict development potential by limiting the County s total number of building permits. When Monroe County reaches that limit, there will still be approximately 7,000 undeveloped, privatelyowned parcels in the Florida Keys Area of Critical State Concern. Gradual acquisition of these privately-owned parcels now, in continued partnership with the State, will: Curtail the threat of significant future takings liability; Mitigate encroachment threats to the Naval Air Station Key West Military Installation; and Protect property rights. 3. AFFORDABLE WIND INSURANCE AND FLOOD INSURANCE to protect economy of the Florida Keys A. OPPOSE legislation that increases present insurance premiums and/or limits the availability of Citizens coverage (particularly in areas, such as Monroe, where there is no reasonable degree of competition for windstorm insurance.) B. SUPPORT an exemption for owners of developed properties in the Coastal Barrier Resource System areas from being ineligible for Citizens wind insurance effective July 1, 2014 (to correct a provision in last year s SB 1770). C. SUPPORT the legislative efforts of Fair Insurance Rates for Monroe with regard to wind and flood insurance affordability and availability. D. MONITOR state legislative efforts that address flood insurance premium rate increases associated with changes to the National Flood Insurance Program. 4. PROTECT COUNTY REVENUES to protect LOCAL taxpayers and local economy OPPOSE any legislation that eliminates, reduces, or restricts uses County revenue sources including: the Communications Services Tax and the Local Business Tax. 5. REPEAL LOCAL GOVERNMENT PRE- EMPTION on Vacation Rental Regulation to protect communities SUPPORT SB 356 / HB 307 repealing pre-emption of local governments to regulate vacation rentals to enable enforcement of issues related to garbage, noise, and other quality of life impacts. 6. STATE FUNDING for County infrastructure and service needs SUPPORT continued/increased state funding for local infrastructure and service needs including: roads/bridges, water quality infrastructure, affordable housing, elderly social services, health department, and homelessness.