MINUTES OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS

BREVARD COUNTY, FLORIDA

 

 

 

December 4, 2007

 

 

 

The Board of County Commissioners of Brevard County, Florida, met in regular session on December 4, 2007, at 9:00 a.m. in the Government Center Commission Room, Building C, 2725 Judge Fran Jamieson Way, Melbourne, Florida.  Present were:  Chairman Truman Scarborough, Commissioners Chuck Nelson, Helen Voltz, Mary Bolin, and Jackie Colon, County Manager Peggy Busacca, and County Attorney Scott Knox.

 

 

The Invocation was given by Pastor Ken Babington, Cocoa Beach Baptist Church, Cocoa Beach, Florida.

 

 

Commissioner Mary Bolin led the assembly in the Pledge of Allegiance.

 

 

Commissioner Chuck Nelson read aloud a Resolution supporting continuation of the Indian River Lagoon Blueway Project in Group A.

 

Motion by Commissioner Nelson, seconded by Commissioner Voltz, to adopt Resolution supporting the Indian River Lagoon Blueway Project and supporting maintaining the Indian River Lagoon Blueway Project on the “A” Acquisition List by the Acquisition Restoration Council for the State Florida Forever purchase of estuarine wetlands and undeveloped upland buffers associated with the Indian River Lagoon.  Motion carried and ordered unanimously.  (See page

                       for Resolution No. 07-301.)

 

 

Commissioner Nelson presented the Resolution to Troy Rice.

 

Troy Rice expressed appreciation to the Board and the residents of Brevard County for the Resolution for the Indian River Lagoon Blueway Florida Forever Project; and advised the other Florida Lagoon Counties, including Volusia, Indian River, St. Lucie, and Martin Counties, are also passing similar Resolutions, either this week or next week in support of the Blueway Project as well.  He presented Indian River Lagoon calendars for next year.

 

 

 

 

 

 

 

 

 

Commissioner Colon read aloud a Resolution proclaiming December 3^rd through 8^th, 2007, as Farm-City Week.

 

Motion by Commissioner Colon, seconded by Commissioner Bolin, to adopt Resolution proclaiming December 3^rd through 8^th, 2007, as Farm-City Week in Brevard County, and calling upon citizens in rural and urban areas to acknowledge and celebrate the achievements of all those who, working together, produce an abundance of agricultural products that strengthen and enrich our community and our nation.  Motion carried and ordered unanimously.  (See page

                      for Resolution No. 07-302.)

 

 

Commissioner Colon presented the Resolution to representatives of the Agricultural Community.

 

A representative of the Agricultural Community expressed appreciation to the Board for the Resolution and its continued support of agriculture, 4-H, and all the other ways it supports the Agricultural Community.

 

Bud Crisafulli presented goodie bags to the Commissioners.

 

The Board recognized and welcomed Heidi Denis, Assistant County Manager for Community Services Group.

 

 

County Manager Peggy Busacca advised Steve Burdett, County Finance Director, will be joining the Board at some point in the meeting after the State Investment Fund meeting, as he wants to give the Board the latest information about the County’s investments.

 

 

County Manager Peggy Busacca requested the Board delete Item VIII.C.1.; and stated staff will resubmit the item.

 

The Board reached consensus to delete Item VIII.C.1., Consideration of Option to repurchase parcel in Spaceport Commerce Park from the agenda; and direct staff to resubmit the item to the Board at a later date.

 

 

County Manager Peggy Busacca stated the Board has asked staff to look at the Travel Policy to see if any changes need to be made; and provided copies of existing Policy BCC-92, which is the reimbursement of expenses.  She noted it appears that this, in its generality, covers all of the issues that the Board wants to talk about; but based on Commissioners’ individual experiences, they may find that staff needs to add some specific language to cover issues the Commissioners have had in the past; so she is open to any suggestions about how to amend that Policy.

 

Chairman Scarborough stated the Policy can be brought back to the Board; it is much better for a Commissioner and the Clerk’s Office if there is a motion that is voted upon in a public meeting for travel; the Board wants to address a very dynamic moment in Brevard County; there is a 10% reduction in sales tax; and it is $3 million.  He noted the franchise is $1.8 million; no new construction; the County is looking at major issues; then it will feed back into other issues with the election; and Brevard County is very dependent upon defense contracts.  He inquired if there is a movement away from defense contracts, does the County find some of its employers in South Brevard impacted; is the tourist industry negatively impacted by gas prices; stated there are multiple issues there; and the Board should not have to worry about having to come, but he wants to empower Commissioners to get out and get involved.  He advised later he is going to be bringing up the appointments to Boards and Committees; he would hope the appointment process is just the start of where the Commissioners want to go; one thing he wants Commissioners to bring back are workshops so the whole community can get exposed to it; and the County is losing its agricultural base.  Chairman Scarborough stated there are dramatic changes that are happening; all the issues are not going to be taken care of by attending a meeting; it is going to be by the Commissioners traveling, by bringing workshops here, and by finding the brightest and the best in the country; and he wants to have a policy that empowers the Commissioners to visit someone or bring he or she here for a workshop.  He advised the Board can discuss the Policy on December 11, 2007.

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to authorize an executive session regarding Palm Bay v. Brevard County on December 13, 2007 after the Beach Management Plan Workshop scheduled at 1:00 p.m.  Motion carried and ordered unanimously.

 

 

Commissioner Chuck Nelson stated last Friday he attended the Canvassing Board Workshop in Orlando; thanked Supervisor of Elections Fred Galey and his staff; and advised Brevard County was well represented.

 

 

Commissioner Voltz stated she had a flood in her office; she and her staff will be out of the office for one week, at the minimum; and they are all working from their houses.  She noted the Road and Bridge property on Wickham Road is embarrassing; the County should look at selling the property and finding some place else for the Road and Bridge staff to go; the tin roof is rusted; and the County needs to be looking at taking care of its facilities.

 

Motion by Commissioner Voltz, seconded by Commissioner Nelson, to authorize Commissioner Voltz and staff to look at selling the Road and Bridge property on Wickham Road due to the working environment at such location; find another location for the Road and Bridge staff; and report back to the Board.

 

 

Commissioner Voltz stated there was an award ceremony at Odyssey Charter School; and it named its School Cafeteria, the Commission Cafeteria.

 

 

Commissioner Bolin congratulated the Satellite Beach High School Girls Cross Country Team; advised it won the State Class 3A Title; this is putting the Team in the third consecutive Title; and when adding it all up in Brevard County, there are over 100 State Team Florida High School Athletic Association Championships.

 

Commissioner Bolin stated last night she was honored to be at the Town of Palm Shores; it dedicated its Town Hall to the current Mayor, Carol McCormick; it was quite an honor to see the name on the plaque and unveiled for her; and extended congratulations to Mayor McCormick.  She stated at the same time, the Town dedicated one of the Council rooms to Marvin and Patty Waterman for the long dedication they have had as employees and volunteers in the Town of Palm Shores.

 

 

Commissioner Bolin stated she has brought forth a bridge; The Viera Company on November 29, 2007 turned the Viera Boulevard Overpass to Brevard County; and it was a wonderful dedication.

 

 

Commissioner Colon stated the City of Palm Bay had its Holiday Parade; the City of Melbourne’s Parade will be this weekend; and the Cocoa/Rockledge Parade will also be this weekend.

 

 

Pastor Ken Babington stated this Friday they honor the Pearl Harbor survivors; there are about 20 left alive in Brevard County; and we are full of history of men and women in uniform, giving their lives to defend the United States of America.  He advised in 1776, 56 men signed the Declaration; that Declaration started a Revolution; that Revolution ended with the birth of a brand new Nation; and the Declaration changed world history, a Nation was born, a Country was established, a Constitution was written, and Article I, Section 8 of the Constitution set out for the common defense of the people.  He provided the history on each Branch of the United States Armed Forces to the Board and audience; and advised the Army, Navy, Marine Corps, United States Coast Guard, and United States Air Force all defend and protect the Country on any given day.  He stated there is American blood on virtually every Country in the world today because men and women have been willing to give their lives to defend our freedom; and we are called the Land of the Free because we are the Home of the Brave.

 

Commissioner Colon stated the Board is very grateful to Pastor Babington; and asked those in the audience who have served so proudly in the Armed Forces to stand so they could be honored.

 

 

Motion by Commissioner Voltz, seconded by Commissioner Nelson, to adopt Resolution congratulating Parrish Medical Center and extending best wishes to Sodexho during their stay in Brevard County.  Motion carried and ordered unanimously.  (See page                     for Resolution No. 07-303.)

 

 

 

Chairman Scarborough provided the Board Liaison Appointments to the Commissioners; and advised of various workshops the Commissioners are interested in scheduling, including Crime, Government Efficiency, Space, Parks, Health, Senior issues, and various Economic issues.

 

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to adopt Resolution of the Brevard  County  Board  of County Commissioners, Brevard County, Florida, acknowledging the

 

 

 

need for a new interchange south of Malabar Road; confirming that an interchange at Micco Road is no longer supported due to environmental constraints; releasing the interchange approval at Micco Road upon approval of an alternative location for the South Brevard interchange located at the intersection of the proposed St. John’s Heritage Parkway and Interstate 95, approximately one mile north of Micco Road; and providing for an effective date.  Motion carried and ordered unanimously.  (See page                   for Resolution No. 07-304.)

 

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to approve the transfer of $5,364 of donated funds to Animal Guardians of Brevard to assist in funding a mobile spay/neuter clinic.  Motion carried and ordered unanimously.

 

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to adopt Resolution qualifying Vitol Seaport Canaveral, LLC as an eligible business under the County’s Tax Abatement Program and authorizing a public hearing to consider adopting an exemption ordinance.  Motion carried and ordered unanimously.  (See page                        for Resolution No. 07-305.)

 

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to adopt Resolution qualifying Vitol Seaport Canaveral, LLC as a Qualified Target Industry.  Motion carried and ordered unanimously.  (See page                       for Resolution No. 07-306.)

 

 

Bob Cupina stated he has been very drastically affected by the fire services assessment fee; he lives in a small one bedroom condominium; with the non-ad valorem affect, he now has a $426.00 fire services assessment fee to pay; and the fee was based by unit instead of by square foot.  He noted the condominiums where he lives has many senior citizens on fixed incomes; his condominium unit is 792 square feet; he pays almost twice as much as a single-family home up to 3,000 square feet; and he pays about 50% more than a 3,000 square foot or more house in West Melbourne.  He stated apparently a mistake was made somewhere; he wrote to Commissioner Colon and met with Commissioner Voltz; and noted this issue needs to be fixed.

 

Chairman Scarborough advised staff is preparing a report.

PUBLIC COMMENT  -  BOB CUPINA, FIRE SERVICES ASSESSMENT FEE (CONTINUED)

 

County Attorney Scott Knox stated the equity in the assessment will probably be addressed by the consultant that the Board is currently trying to retain; he is sure one of the things it will have the consultant look at would be the methodology that has been used, not only on this particular project, but other areas of the County also.

 

Chairman Scarborough stated the Board will provide Mr. Cupina’s report to the consultant; and he will make sure Mr. Cupina is fully involved in the discussion.

 

 

Ayn Samuelson, representing South Patrick Residents Association, stated there are about 3,000 homes on the beachside; she has received not a single vote of support, regarding the new proposed Waste Management Contract; the several questions that have been asked on behalf of citizens about the proposed Contract have not been answered to date; and people have lost their jobs in the food industry, small retail operations, and other types of businesses as well.  She noted the construction industry has been slammed; tradesmen are scouring the County just looking for jobs, which they cannot find; some people are working two jobs totally out of field just to survive, literally to put food on the table and to provide for a home over their head; and others have left the County because they cannot find work.  She stated she is concerned about the projected layoff of two-thirds of the trash collection employees at Waste Management; the local recycling companies may close because they are not properly tooled up to date to handle the change in the proposed Contract; the recyclables will then be transported all the way to Orange County; and she has always believed that it is a citizen’s responsibility to bring issues before the Board and other elected officials so they know what is really happening in the communities and the actual impact they see.  Ms. Samuelson urged the Board to look into the community and to see the very real pain of people who are losing their jobs, their homes, and their self respect; stated these people look to their government to not add any additional costs, any additional anguish, or unnecessary costs, especially for existing programs that are already working well; and requested on December 11, 2007, the Commissioners search their hearts and minds to make the very best decision for the citizens, and continue to use the existing economical yard and trash pickup service.  She advised while neatness is nice, cost is crucial.

 

Chairman Scarborough stated the Board can have a 1:00 p.m. time certain for the Waste Management Contract discussion on December 11, 2007.

 

 

Giedre Snipas, representing Sea View Resort Motel, stated in April 2007, a Code Enforcement lien was negotiated with the Board and Special Master on her property, payment contingent to within 30 days of the closing of the sale of the property; the property is still for sale, but sales are slow; she needs desperately to refinance the property; and she is coming before the Board as a hardship case requesting the subordination of this lien to refinance the mortgage.

 

 

 

 

Chairman Scarborough stated the Board has done some things like that previously; he would prefer not to take action on that this morning; but the County Attorney’s Office could brief each Commissioner and the item could be placed on the December 11, 2007 Agenda.

Chairman Scarborough called for the public hearing to consider transmittal of the 2007-C Comprehensive Plan Amendments to the Florida Department of Community Affairs.

 

Commissioner Bolin stated the Board received the request from The Viera Company to continue the public hearing to the February 19, 2008 meeting; she would like to have staff prepare a letter from the Board, which would be a Declaration Statement; it would go to DCA in regard to the issue that the County cannot seem to get a clear decision on, which is the Transportation Impact Calculations, whether it is cumulative or if it is phased; and The Viera Company has already sent a letter to DCA and has not been able to get any response from them.  She noted she would like to have permission to have County staff also put together the letter with the same information request to see if the County would be able to get DCA to respond.

 

Motion by Commissioner Bolin, seconded by Commissioner Voltz, to direct staff to prepare a letter from the Board, which would be a declaration statement to the Department of Community Affairs, in regard to the County not having a clear decision from the DCA on the Transportation Impact Calculations and whether it is cumulative or phased.  Motion carried and ordered unanimously.  (See page                       for Letter.)

 

 

Motion by Commissioner Bolin, seconded by Commissioner Nelson, to continue the public hearing to consider transmittal of the 2007-C Comprehensive Plan Amendments relating to the Viera DRI West Expansion Area to the February 19, 2008 Board meeting.  Motion carried and ordered unanimously.

 

 

Glenda Busick stated concerning the Viera West DRI, this has a huge impact on Brevard County; there is an old saying, “The chickens come home to roost”; there are a whole bunch of chickens, ducks, geese, and cows all sitting out here on roads they cannot travel on; and the infrastructure is a chaos.  She noted everyone talked about that back in the 90’s; Viera makes promises and its vision of its City Viera goes out to the public; and what it failed to tell people is what has happened as a result of all the years of their development out here.  She stated it is believed that the whole County is probably over a billion dollars in deficit in roads, State and cities, including U.S. 1, I-95, S.R. 528, etc.; something has to be done; the Board cannot keep approving development; and 11,000 more houses out here is totally bizarre.  She advised scientists perform tests before they do something and then they analyze the test; then they reanalyze the test; the County has had 10 years of tests and this has not worked; and the County needs to stop the test, the test is done, and it does not need any more houses in Viera.

 

 

 

 

Chairman Scarborough called for the public hearing to consider an Ordinance for proposed amendments to Chapter 62, Article XIII, Division 4, Subdivision 1, Code of Ordinances of Brevard County, Florida, Land Alteration.

 

Motion by Commissioner Bolin, seconded by Commissioner Voltz, to adopt an Ordinance of Brevard County, Florida, amending Chapter 62, Article XIII, Division 4, Subdivision I, Code of Ordinances of Brevard County, Florida, relating to Land Alteration specifically amending Section 62-4396  location  of  Land  Alteration  Activities;  providing  for  the  interpretation  of conflicting

provisions; providing for severability; providing for area encompassed; providing for inclusion in the Code; and providing an effective date.  Motion carried and ordered unanimously.  (See page

                        for Ordinance No. 07-57.)

 

 

Chairman Scarborough called for the public hearing to consider tabling application for modification of Rosehaven Subdivision Plat, Lot 10, P. Anne McDaniel/Jerry Spangler.

 

Anne Bergquist advised the issue has been going on for approximately two years; she is speaking on behalf of the Rosehaven Subdivision Plat residents; they have always been willing to meet and listen to anything that was said; this has taken up a lot of the Board’s time; and the residents would like to see resolution of this.  She stated the residents would like to put some type of a time limit on this issue; the residents have consistently said they are in a platted subdivision and do not believe this is the proper access; they do not believe the lot would be buildable for a home if an access was given; but the residents are still willing to speak with the applicants, but the applicants, to this date, have not done that.  She noted this issue needs to be resolved.

 

Chairman Scarborough stated the residents are requesting if the Board grants a continuance that there is some time perimeters on it, contingent upon perhaps the applicants meeting with the residents by January 20, 2008.

 

Susan Warden stated she agrees with Ms. Bergquist; the issue has gone on too long; and it is very upsetting to the neighborhood.

 

Sandra Nydam stated she agrees with Ms. Bergquist and Ms. Warden; the issue has gone on too long; and there needs to be a resolution.

 

 

 

 

 

 

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to continue the public hearing to consider the application to modify Rosehaven Subdivision Plat, Lot 10 for P. Anne McDaniel/Jerry Spangler, to the February 19, 2008 Board meeting, contingent on Ms. McDaniel and Mr. Spangler meeting personally with the residents of Rosehaven Subdivision before January 20, 2008, with no less than a 10-day notice to the residents of the meeting date.  Motion carried and ordered unanimously.

 

 

Motion by Commissioner Nelson, seconded by Commissioner Voltz, to execute Memorandum of Understanding with Brevard Community College Board of Trustees (BCC) for the Chain of Lakes Regional Park and BCC Titusville Campus; and authorize the Chairman to bring letters of appreciation and Resolution for Parrish Medical Center and BCC back to the Board regarding the partnerships and advising how important it is to the community to work together.  Motion carried and ordered unanimously.  (See page                     for Memorandum of Understanding.)

 

Ayn Samuelson, representing South Patrick Residents Association, requested the residents from the Association that are present for the item to stand; advised of the Association’s support for a change to Chapter 62-2117 to improve both the safety and the quality of life in the neighborhoods; its main areas of concerns are first, reasonable setbacks of five to seven feet, which are essential for the safety of the children, pedestrians, bicyclists, and motorists along the streets; today there are no setbacks whatsoever; and the current lack of setbacks for cars, recreational vehicles, and the like makes no sense.  She stated recreational equipment and trailers are best parked perpendicular to the road and residents on a stable or hardened surface; this would help to reasonably keep in check the number of such equipment and trailers as they do affect the environment and the quality of the neighborhoods; sensible solutions should be based on an understanding of how Ordinances actually affect the communities and the real impact they have on the residents; and without rational laws, the public is at the mercy of anything goes.  Ms. Samuelson stated the Association urges the Board to consider modifying the Ordinance to reflect the needs and desires of diverse communities by directing staff to move forward on this issue.

 

 

 

 

 

 

 

Jean Freeman, representing South Patrick Residents Association, stated there are a lot of residents present today that are representing the area; and requested the Board to change the present Ordinance, as she wants also to improve the safety and quality of the neighborhood.  She further requested that recreational vehicles and trailers be parked also on a stable or a hardened surface and perpendicular, not parallel to the road.  She reiterated her request that the Board consider changing the present Ordinance to one that will improve the neighborhood to give the residents the safety they deserve and a community of which they can be proud.

 

Commissioner Nelson stated primarily the County is seeing two things, safety issues where people are literally having to walk around these things, and cars backing out cannot see; and there are some real inconsistencies in the Ordinance at this point in time.

 

Code Enforcement Manager Bobby Bowen gave a presentation showing various pictures of recreational vehicles and recreational equipment in the neighborhoods, blocked sidewalks from motor homes, and violations of Brevard County Code and Florida Statute 316.

 

Commissioner Nelson advised he wants to move forward with the Legislative Intent.

 

Commissioner Bolin stated the Board needs to readdress lot sizes and how many recreational vehicles are permitted, and setbacks.

 

Commissioner Voltz advised she agrees with the five-foot setback.

 

Motion by Commissioner Nelson, seconded by Commissioner Bolin, to approve the legislative intent to amend Chapter 62-2117, specifically, Section 1(b), to establish setback requirements and location for storage for recreational vehicles and recreational equipment.  Motion carried and ordered unanimously.

 

 

Chairman Scarborough stated the Board probably needs to get a template of different ways it can move and different options; this is a very vast and complex issue; and there are different lots and different areas.

 

 

REPORT, RE:  COUNTY FINANCE DIRECTOR (CONTINUED)

 

County Finance Director Steve Burdett provided handouts to the Board; stated such handouts include some newspaper articles and graphs; on November 29, 2007, an article appeared in the Bloomberg, which was talking about Florida Governments and School Districts pulling $8 billion out of the State Run Investment Pool; and such Pool is specifically set up for local governments.  He  advised  the  concept  behind  it  was  that  a  lot  of  local  governments  may   not   have  a

 

 

 

 

REPORT, RE:  COUNTY FINANCE DIRECTOR (CONTINUED)

 

sophisticated financial office that goes out and looks at what kind of investments to acquire, so therefore, it was more efficient for it to be done at the State level and then they would put their surplus funds into this Pool to earn their funds on.  He noted they learned that 30% of the assets contained some money market funds which contained some defaulted debt; the money that is earned and the security depends on what kind of securities that they buy in the mutual fund; the investment pool began at $27 billion; after the initial run on the bank, which is when everybody goes in and pulls their money out, it got down to $19 billion; and today, it is sitting at $14 billion, which is where the State has decided to freeze any withdrawals.  He stated the first chart shows what he just explained; in the beginning of November 2007 through towards the middle part of it, the withdrawals did not seem to be too extensive; it is when it got to November 28^th and November 29^th, which is right after the Bloomberg article came out, many of the governments just started pulling money out; and he and Mark Peterson were seeing emails talking about the concerns at the State Board. 

 

Mark Peterson, Finance Department, advised Brevard County pulled out $100 million; in the beginning of November 2007 it had $255 million in the State Board; through November 2007, because interest rates have been coming down and because of the concerns Brevard County had over what the State Board was doing, he decided to go ahead and start pulling money out; through the month he pulled out $100 million; and right now Brevard County stands at $159 million in State Board.

 

Mr. Burdett stated in addition to those Board funds, the Tax Collector has about $200 million in there, which at some point in this week, they are getting ready to distribute most of it to Brevard County, the School Board, as well as the local governments.

 

Chairman Scarborough stated if it is frozen they will not be distributing.  Mr. Burdett stated that is what the County is going to discuss; and one of the items that they were addressing at the administrative meeting in Tallahassee yesterday, they are still at the point to decide what to do.  Chairman Scarborough stated the Brevard County Tax Collector is actually number two in the entire State as to funds within the Pool.

 

Mr. Peterson stated the Tax Collector does have additional money; and he has $200 million in the State Board, but they also have about $160 million in other money market accounts and discount notes that they will be able to access.

 

Chairman Scarborough stated his point is that the Brevard County Tax Collector, the monies that have been collected, Brevard County is up at the top of the list with the numbers of dollars that are in that pool; when we say your investment is at a certain level, the County also has the monies that have been collected by the Tax Collector, which is the County’s as well that are being frozen because it is not the Tax Collector’s it is the County’s, a portion of it; and Mr. Peterson thought it was about 40% or about $80 million yesterday.  Mr. Peterson stated of the portion that would be at the State Board, that is correct; at yesterday’s Committee meeting, the State  had come up with a Committee to address the concerns and how it was going to face this

 

 

 

 

 

REPORT, RE:  COUNTY FINANCE DIRECTOR (CONTINUED)

 

situation and make the recommendation to the Cabinet today, one of the things that came out was the Tax Collector said this is not our money, by Statute, we collect the money and we have to turn around and give it to the municipalities and county governments; so they are entertaining the  idea that they would allow tax collectors to withdraw their funds because they do recognize

that this is not their money, it is municipalities, and so that was one of the discussions that came up yesterday, but staff will not know what direction they are going with until today’s Cabinet meeting.

 

Mr. Burdett stated the other option they discussed on the Tax Collector was they would basically take, if it was $80 million of Brevard’s money, from the Tax Collector’s account or the SBA and move it over to Brevard’s account; and then the County would still end up with whatever they administratively decide the rate at which governments can pull money out, that is how Brevard County would end up pulling their money out.  He advised on the other graphs they brought, they have already taken a look at the cash flow of Brevard County for the next eight weeks or so; based on the cash that the County does have that is outside of the State Board, the County is more than adequately liquid right now; the first chart actually assumes that the County would receive those tax dollars; and the other chart will show the Board if it does not receive such dollars.  He stated even for the next eight weeks or so, Brevard County will have $200 million plus cash as far as meeting payroll, meeting vendor payments or whatever distributions it needs to make; so Brevard County will not be in a cash crunch.

 

Mr. Peterson stated during the month of November 2007, as well as previously, he had been investing in some money market accounts that are very liquid, as well as short-term federal agencies that will be maturing in January/February 2008, so that money is coming in; right now Brevard County does not have a cash flow problem; as the chart represents, the County has over $200 million that he can access; and one of the things the Cabinet will be discussing today is some of their options as far as how do they allow local governments access to this money.  He noted they had hired an investment advisor to come in; one of the recommendations they are proposing is to split the $14 million into two funds—a Fund A and a Fund B; those securities that were under distress or suspicious amounts to about 14% of the total; and they would take that money, which would be about $2 billion and put into Fund B.  He stated they said probably within six months to a year, Brevard County should be able to get all the money back by selling it at par; right now if the County has to sell it, it is going to take whatever the market bears; the maturity of these securities will be within six months to a year, so they said let us put that aside, let us just leave it, do not touch it.  Mr. Peterson noted the other 86% would be in a Fund A; that fund would be liquid; it is high grade securities; and it would be something the County could actually withdraw funds from.  He stated they are also concerned about once they open up the State Board, is there going to be a run on that remaining $12 billion; so they are talking about establishing some type of a withdrawal where the County could withdraw 5% or 10% of the funds; at this point, in discussions with Mr. Burdett, PFM, and some people on the Investment Committee, he believes the prudent thing for the County, because it has the sophistication to be able to manage it itself, is to start pulling down that money as the State Board allows it; if it says 10% then he will start drawing down 10%; but the County does not need that money to operate off from, as the chart shows; it has the funds; and it wants to be prudent to the citizens of Brevard County, to the funds it has, and it has the ability to manage it.

 

 

 

 

REPORT, RE:  COUNTY FINANCE DIRECTOR (CONTINUED)

 

Chairman Scarborough stated in his briefing, Mr. Burdett also spoke of some of the other entities in Brevard County, for instance, Cocoa and TICO Airport Authority, which are not in a posture of having any funds but those in the pool.

 

Mr. Burdett stated he expects the Cabinet will come up with something that the smaller governments will be able to accommodate their cash issues; the Cabinet is meeting now; as soon as he and Mr. Peterson hear what the Cabinet’s decision is, they will report back to each Commissioner.

 

Mr. Peterson stated at the end of October 2007, the County had some mortgage back securities in its portfolio; in the month of November 2007, with all this coming about, they felt that it was really wiser to go ahead and sell that; he talked with PFM; and it went ahead and sold the mortgage back securities that the County had in the portfolio, which amounted to about $18 million.  He noted as of the end of November 2007, the County is no longer subjected to any mortgage back securities directly in the portfolio.  He stated he and PFM will be approaching the Investment Committee to make a couple of recommendations the Investment Policy; that will be coming before the Board in the near future; right now the County is limited to invest only 20% of its funds in money market accounts; and they will make a recommendation to increase that.  He noted right now the Policy allows the County to invest 100% in State Board; and at this point in time it is never going to go there.  He stated it is not just here, but it is nationally and globally what is happening; some of the safeties the County has in place, for himself and working with the short-term securities, the short portion of the portfolio, the County has PFM managing the long-term and it does this for a number governments throughout the Nation; the County also has an Investment Committee that is comprised of a number of individuals that are very astute in investing; and this morning he had one of the Investment Committee members here, but he had to go back to this office.  Mr. Peterson noted they all are there giving insight and their expertise into which direction and what is prudent; he appreciates the assistance from PFM and the Investment Committee; he feels comfortable in that they have a good setup here with the County; and they are dealing with a lot of money.  He advised this is the public’s money and the County needs to be prudent with it; it does not want to sell anything where the County is going to be taking a loss; like the money that is going to be set up, if the Cabinet goes in this direction into Fund B, which will be approximately $23 million, if that sits there for six months to a year, the County does not need to touch that; and it has plenty of funds.  He stated with Fund B, the County does not have to sell it; it can just hold onto it; it is still getting its interest earnings off from it; it is still getting regular cash flows from it; and he is not subjecting it to market conditions.  Mr. Peterson stated government wants to earn as much as possible, but the first thing is preservation of principle, and then liquidity, and then earnings; whenever they lose sight of that, they start chasing yield to try to bump that yield up to get interest earnings; last year, the County earned in excess of $20 million in interest earnings; and that is a lot of money that can go toward different projects, but the County has to make sure that first of all it is safety and principle that it gets the money back that it has invested.  He noted that is where it wants to take the caution to insure that it is not losing when it sells something that it maximize as much as possible, but stay safe; he would not change the Policy to go along with what State Board is doing because it is not prudent; and that is where the help of both PFM and the Investment Committee is good in trying to make sure they are protecting the assets of Brevard County.

 

 

 

REPORT, RE:  COUNTY FINANCE DIRECTOR (CONTINUED)

 

Mr. Burdett stated he and Mr. Peterson will update the Board and write a letter to it; and it will be available at the next meeting, if necessary.

 

 

 

 

Upon motion and vote, the meeting adjourned at 11:06 a.m.

 

 

 

 

ATTEST:

                                                                              __________________________________

                                                                              TRUMAN SCARBOROUGH, CHAIRMAN

                                                                              BOARD OF COUNTY COMMISSIONERS

                                                                              BREVARD COUNTY, FLORIDA

______________________

SCOTT ELLIS, CLERK

 

 

 

             (S E A L)