1:00 PM Meeting called to order on July 8, 2010 at Florida Room, Florida Room, Viera, FL.

 

Attendee Name	Title	Status	Arrived
Robin Fisher	Vice Chairman/ Commissioner District 1	Present
Chuck Nelson	Commissioner District 2	Present
Trudie Infantini	Commissioner District 3	Present
Mary Bolin	Chairman / Commissioner District 4	Present
Andy Anderson	Commissioner District 5	Present

RESOLUTION, RE:  RESTRICTIVE COVENANTS FOR GATEWAY CENTER INDUSTRIAL PARK

The Board adopted Resolution No. 10-107 regarding restrictive covenants for Gateway Center Industrial Park.

 

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REPORT, RE:  VALUE ADJUSTMENT BOARD (VAB) SOFTWARE ACQUISITION

Commissioner Infantini stated she and Commissioner Anderson sit on the Value Adjustment Board; it is moving forward with its software acquisition; it should facilitate the claims where people feel they are being incorrectly assessed on their property taxes; and it will be more online and user-friendly.

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REPORT, RE: SUPPORT OF TECHNOLIGICAL RESEARCH AND DEVELOPMENT AUTHORITY (TRDA) AND THE UNIVERSITY OF CENTRAL FLORIDA (UCF) - i6 CHALLENGE

Chairman Bolin distributed to each Commissioner a request from the Technological Research and Development Authority (TRDA) for a support letter they are going to be submitting for a grant; there is no money involved, only one piece of paper with her signature; and she requested that the Board grant approval for her to sign the letter.

 

The Board authorized the Chairman to sign a letter supporting the Technological Research and Development Authority (TRDA) and University of Central Florida (UCF), and the i6 Challenge Application to the Economic Development Administration.

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REPORT, RE:  MOTHER’S RELOCATION TO BREVARD COUNTY

Chairman Bolin advised that her mother is now a paying person in Brevard County in the City of Melbourne; they are trying to get her set up in her apartment; and the economy is greatly increased.  Commissioner Anderson inquired which district is she residing in; with Chairman Bolin responding it is the Crane Creek Senior Apartments, which is Commissioner Infantini's District. 

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STAFF/CONSULTANT PRESENTATION

County Manager Howard Tipton stated today is the last workshop relating to strategy and budget; he is once again pleased to have Dr. Herb Marlowe and Mr. Larry Arrington to help facilitate the discussion; they have gone through the process looking at a couple of different things, including starting out with a concept of where the County is going within the next year in terms of the budget; and the Board's direction in moving forward was to hold the aggregate the same.  He advised that helped them set the table for the remaining discussions as to what that might mean in terms of sustainability and what that might be in terms of fiscal integrity; and there has been discussions in terms of strategic focus areas, looking at groups of County services and functions, and sharing with the Board what staff would explore as part of the budget process as far as alternative service delivery options, including service reductions.  He stated they are going to speak today about fiscal integrity, and in particular governance, as well as economic development; this will be the last in the series; but the strategy sessions and policy discussions have been helpful, certainly to the staff in terms of where the Board's vision is going and what needs to be done the next year, in the coming years, in terms of preparation for that vision. 

 

Larry Arrington stated they are doing something, in the first part of the afternoon, that he knows is difficult to do in the heat of the budget and trying to balance the budget, and there are so many issues coming at the Board in rapid fire, to lift the Board's sight beyond the immediate battle, recognizing it is in the middle of it, to some of the long-term strategies it can undertake over time; and they are strategies that will hopefully do a number of things for the Board, the organization, and the Brevard County Community.  He stated it is grouped under the title Governance.  He advised governance means more than what government does, it means governance in terms of the Board's relationship with all sorts of other providers of public services, non-profits, the citizenry, as well as the work it does in and through its organization on operating and capital basis daily; he wants to talk about strategies that he thinks may help the Board govern better in the new normal in the wake of decision making that it will be tasked with in the difficult crisis it now faces; and they also are going to concentrate on economic development, which everyone knows long-term that economic development is really the engine that will drive the County back into a more sustainable condition.  He went on to say they have done a lot of research; most of what is going to be recommended is right out of the minds and hearts of people in Brevard County, including some of the earlier discussions they had with the Board, the interviews, and some of the previous workshops; they have spent a good deal of time with the County Manager and staff, who he must compliment because they are really doing a very difficult job putting this budget together, but they have been thinking in two dimensions at once; and that other dimension is long-term.  He advised the quintessential question is what is this really going to look like when it is all over with, or as the Board continues to move through it.  He stated some of the ideas need to be looked at; they want to get feedback from the Board; what ends up in the strategic plan may change moving through time; and the intent is to try to create this common vision with a series of strategies; sometimes sacrifice and difficult times can produce good results in the end; and they want to go at it with the spirit that through the crisis they hope they emerge stronger as a result of all of the things the County is now going through.  He stated they also want to look at how to improve the County's service delivery system through the best practices they can try to conjure up in the immediate months and years ahead; getting at some of these innovative tools is going to be difficult; it is going to take longer than perhaps what it would have taken when the organization was more robust and had more people in it; they are also mindful of the victim that most governments feel is important, and that is to do things that foster ethical conduct and a lot of accountability; and they will look back on the period the County is now in and label it the era of accountability where people were really holding each other accountable for very high levels of performance, because when getting in the type of situation the County is in, that is what everyone might do.  He further went on to say they are going to talk about regional leadership, because most jurisdictions they are working with and observing right now are doing innovative things to try to become more sustainable and change ways, are looking at themselves in the context of the entire region in which they are situated; it is not just the community of Brevard County; they want to try to foster an ethic where the County is looking and linking to, in meaningful ways, both the policy development going on at the regional level and potentially accessing some of the resources that are there in reciprocal ways that are important to the County; and part of that also is looking at new ways to relate to the non-profit sector and the other providers of public services in Brevard County.  He advised there are a lot of opportunities for the organization to begin working in new and different ways, and improving on existing ways, relating to the business community; the business community appears to be ready to join hands with the public sector organization like the County; and everyone knows that they have been talking to the sense of working as a team is demanded in the environment today.  He stated  the internal results is a new kind of organization; it is one that will depend on high levels of citizen engagement, and values openness, fairness, and transparency in the conduct of public business; it will create better communication and interconnectivity among policy, and administrative leadership and County employees; it is not something that is going to happen overnight; but if it is set as a goal, over time the Board will see more interaction and activity on all levels.  He stated another concern is the workforce's health and vitality, particularly when going through the kinds of changes that appears to be coming; the workforce is going to have to re-cooperate, adjust, and get strong again in the wake of the budget problems the County is being faced with; there are a lot of tools that can be put into place to help that happen; and they will talk about some of those tools in terms of how they can help the organization become stronger.  He explained further there are also tools that relate to physical practices that through the next few months the Board will see some more coming in that direction, and also information technology.  He advised, externally, it is all about leadership and putting the Board in the position to provide that leadership in more effective and efficient ways; he and Herb call it the shift from government to governance; the Board will be doing business in the future in very different ways from the way it has been done in the past; a shift is going on in the nature of the organization, what it does, what it is capable of doing, and how it relates to the other major stakeholders in the community; and they want to position the County to make that shift as effectively as possible.  He stated the vision out there is certainly not 'one-size fits all'; there is a need for the County to capitalize on the diversity that is here; there is a lot of diversity in Brevard County and it can be a strength if it lets it be; and they are trying to think about how to optimize the diversity of Brevard County.  He stated the citizenry has to be actively engaged and the private and non-private sectors as they suggested; all of these strategic considerations are kind of ideas that are at work in thinking about the strategies that they are going to get to; one thing they know is coming at one point is likely that the organization of county government itself, once it settles, will be re-examined; most managers who are re-examining organizations in today's environment are looking at concepts that will make them more horizontal, more decentralized, and more temporary in nature, more purpose-driven, and perhaps the old bureaucratic way of managing in the past; and there will be a lot of opportunity to change the structure and the function of county government itself with a new kind of workforce.  He went on to state there are a lot of things that are already going on at the regional level, and a lot of collaboration has already happened in Brevard County; the Amtrak issue, high speed rail, and St. Johns Heritage Parkway are all kinds of iconic examples of what can happen when collaborating with others; and the same things can happen with the business and civic leaders of the community as well.  He noted they are watching very closely the opportunities that are starting to finally come up from bringing some federal resources in to help the Board make this transition; most people have been focused on the NASA money that President Obama has been talking about; the County is going to need to carve out its vision for how it thinks that some of that money can be put best to use; but there is other availability that has just come up in the last month or so; most of it is planning money, planning around the concepts of sustainability, the same things the Board has been doing, but in one pot of money is an inter-jurisdictional planning effort to try to pull multiple jurisdictions within the County together, not necessarily everybody, but a substantial number, to do some really strong planning and get people on the same page; and the other pot of money is specific to one particular organization, like the County, that it can apply for.  He stated he is doing research about sharing what he knows about this emerging picture and trying to determine, through Mr. Tipton's leadership, and ultimately the Board's, exactly how Brevard County should position itself for this new opportunity that is out there. 

 

Mr. Arrington advised that the first initiative under this strategic focus area is the organization capacity building that has been talked about; there are several goals that they are trying to achieve; there will be a lot of conscious effort put into this; it is important to get staff onboard with this strategic plan that the Board is approving so that when all of this is over it does not just sit on a shelf somewhere, but it means something; and that it is a dynamic ongoing process that will help the County.  He went on to state staff, to some extent, will be involved in developing more specific business plans to implement some of these strategies; he is concerned about the capacity of the staff, given the nature of the reduction in force that is coming about, to produce this as quickly as they could have a year or two ago; and he thinks some priority setting is going to have to be done ultimately on some of these strategies.  He stated the other is employment and workforce planning that has been discussed previously.  He explained some of the specific things they are looking at, changes in workforce due to retirements and the need for employees to develop new skills and abilities; he knows that the workforce is changing; and it would be changing even if the County was not going through the budget changes it is having.  He advised there is a need for a lot of attention to be paid to the needs of the workforce and its skill set, linking pay to performance that has been a goal for a long time; there are ways that can be done; it is a long-term goal for Mr. Tipton to do that; and it will ultimately take some time.  He stated the County will need people who have the capacity to relate to others outside the organization, to negotiate, to deal in large, complex delivery systems that may involve lots of different people and lots of jurisdictions; and there will be some training needs that will need to be addressed in the next few years.  He stated staff will have to come back after all of the decision making is essentially known where they are headed and come back with some priorities of what can and cannot be done in the next year, and really try to do the things that are most important; he stated what he does not want to do is put ideas out, raise the Board's level of expectation, recognizing that the capacity to deliver those expectations is not as high as perhaps they would like it to be; and that is the reality of it.  He went on further to state this physical responsibility that they have talked about, he knows that Alphonso and others will be coming back to the Board later in the year; there will be an effort to link the strategic plan to the budget development process next year so that there is some relationship ongoing with what the Board is doing strategically and how it is budgeting; he thinks it has done some of that this year, even in the roller coaster ride everyone has been on; but next year, ultimately, that linkage will be even stronger.  He stated they talked to the Board before about these physical integrity policies; Alphonso will be coming forward with some of those; and they will help the Board manage, through time, in ways that keep the organization from drifting in directions fiscally that it is really not capable of going given the nature of the environment in which it is trying to manage.

 

Mr. Arrington stated maintenance of the basics is a big one, because if the County is going to be sustainable over the long-term, the basics have to be kept right, the things that allows it to do the things that is its priorities; spending money on maintenance on the basics has never been a popular thing with most elected officials, because some of the money is now seen; it is not something that the ribbon can be cut for in a lot of instances; but it is vitally important that to the extent that the resources allow, the Board pays attention to some of these basics.  He stated there are a lot of tools that help figure out which basics need to be maintained and how and in what priority; related to this is the enhanced use of information technology; Brevard County has been in need of an information technology plan for some time; he has been through that process; it is extensive and time consuming, but vitally important; and at some point the Board has to address the whole issue of upgrading and keeping strong its information technology.  He went on to say front right now is the 800 Mhz system; this Board has said that public safety is its priority; it knows the 800 Mhz is central to providing good public safety; he would encourage the Board to work very hard on this in the next year or so to figure out a plan that will bring it to the day when it can begin replacing the 800 Mhz; and it will not be easy as it will be a challenge.  He stated local governments have treated civic engagement as a frill; the Board has started a process already this year when it has a commitment of more civic engagement; tonight it is going to have an electronic town hall meeting; making civic engagement part of the culture in the future they think is critically important; there are many ways to do it; it is a way of doing business that will hopefully be part of the organization; connectivity with the general public is exceedingly important in the kind of environment it is in, not only to communicate back and forth of where people want to go, but it will need people to help deliver public needs and services in ways that are new and different; and the volunteer program is one example. 

 

Mr. Arrington stated that regional networks to participate on the larger regional issue that was talked about earlier, is going to be more and more important; it will take a lot of effort and work, not only by staff but by the Board, and others who are linked to the County from other organizations; they think there is a movement out there for regional planning; and there may even be resource allocations advantages to participating and being active in some of these regional organizations; examples are transportation, water, and economic development strategy; there was already an example not long ago of disaster development and recovery planning; and it is important to do that well and efficiently.  He went on further to explain that regional planning has linkages that Brevard County needs to plug in to.  He advised the next purpose and goal is consolidation initiative; he knows the Board has began discussions about that; there is a lot of activity around the State right now with organizations that are in serious discussions; in some cases it is counties that are exceeding unincorporated territories to municipalities to perform municipal services, and other situations the reverse happens; and sometimes it is all inside the same county.  He stated a one-size fits all philosophy with this may not work for Brevard County, but a mixed strategy, depending on the circumstances of time and place, but it will see over the coming years, more and more activity to consolidate services and do them in a more efficient and effective way.  He went on further to state to pay very close attention to fair funding so that the Board enters into agreements that define these problems that develop between local governments so that people feel that what they are funding and paying for services is not equitable and unfair; most local governments are concerned about it long-term; and they think it is something the County is going to need to pay attention to.  He stated that is sort of a broad overview of the governance area. 

 

Mr. Tipton stated when talking about fair funding, one of the challenges the County has is from the Save Our Homes Amendments and other property tax policies; two people living on the same street, one may see a tax decrease and one may see a tax increase; it is difficult to get to the fairness discussion when it is hard to try to explain the current tax policies; and inquired if there are any counties, cities, or government agencies doing a better job of explaining just how this messed up system works.  Mr. Arrington advised what is confusing to the public is that there are so many different public offices that have a piece of this problem; there is the Tax Collector, Property Appraiser, County Commission, School Board, cities, and all that; the reality of it is that no body at the local level can truly control this policy problem; it resides in two places; one is in the Florida Legislature and the other is in the Florida Constitution; and unfortunately, over a number of years, and this has been a long time in Florida history, they have seen Constitutional Amendments and Legislative actions that at the time appeared to make sense to people, but when putting them all together under one lawful umbrella, the most insane way of promoting tax policy a person can imagine is created.  He went on further to state the place for change is going to be in the Florida Legislature and to some extent in the advent of looking at trying to urge the different mechanisms at the State level that are available to Floridians to try to change the Constitution at some point; California is looking at different options of how to do that; and it will take this inequitable system and rationalize it in some way.  He stated in his experience, and he has no evidence to this, most people do not mind paying property taxes for things they really believe are good for the community and for themselves, what they do mind is paying into a system that they know is inequitable.  He suggested putting emphasis on this problem, communicating it at the local level, and this is part of citizen engagement.  He stated the Board should load up its legislative packages and other relationships to the State as a whole with the County's sister governmental entities at the local level and see if some change might emerge out of all of this. 

            

Mr. Arrington stated they were fortunate to be able to grab Bill Cunningham and get him to agree to be part of their consulting team; they wanted to have someone who is familiar with Brevard County's economic development and governmental issues in general who also had some experience planning; and Mr. Cunningham fit the bill very well.  He stated he has a hat that he is going to be wearing here in economic development; he has a lot of good ideas; he will let Mr. Cunningham tell the Board about his methods and how he went about doing his work; and then some discussion will be about this part of the strategy, because they think this is where the true benefit to the Board's strategy will be.

 

Bill Cunningham stated he would like to thank Larry because he is impressed with the strategic process the Board is going through; and to have the chance to participate in some regard is very pleasurable to him.  He stated what he has been tasked to do is look at economic development in the County somewhat from the County government perspective and what it can or cannot do.  He stated he looked at a lot of the varying strategies and online reports and out of a lot of the organizations involved a lot of data kind of research, and he interviewed who he ultimately thought were some of the leaders in the community relative to economic development, including in this room, Chairman Bolin, and Mr. Tipton; he spent a couple of hours together one morning, along with Larry, with Frank DiBello, Lisa Rice, Lynda Weatherman, Marsha Gatke, and Christine Michaels from the Chambers of Commerce, and Rob Varley from the TDC; he found that folks think a little bit differently; but he saw a lot of consensus of what people believed were the problems, opportunities, and where the County needed to go.  He stated the really good thing is there are some distinct and good opportunities for Brevard County; the really nice thing is that they are not dependent on overall recovery in the economic prospects of the country; no matter where a person goes, the forecast says best case is it will be a very slow recovery; and he thinks with some of the opportunities here, Brevard County has a good chance of leap frogging the overall economic conditions and really producing some dramatic, positive things over the next several years as it emerges from the Shuttle and takes advantage of some of the things coming.  He advised clearly Brevard County is getting federal support for the Shuttle retirement; the President's plan has announced a lot of things to happen at the Cape; there is the $40 million dollar fund that something will happen with hopefully that the County is going to have to work on; there is a more aggressive Space Florida organization than the County has had in some time; under Frank DiBello's leadership, the State funded it quite well this year; what he learned from folks in this room is the positive feedback from the Space Symposium in Colorado Springs; and that is very key to know in going forward in however the Space industry evolves, the County will be poised to capture it.  He went on to state in the President's budget the County will see large infrastructure changes; there will be enhancements at the Cape, which will be a good thing; they are seeing competitive advantages in the renewable energy market; and hopefully it will get some State attention.  He stated that will tie in with some of the agricultural in the County.  He noted there have been a breadth of recent successes like Lockheed CEV, Embraer, Lighting Science Group, and SpaceX; at the EDC they track the job opportunities and new projects and they are extraordinarily high level right now at 4,000 potential jobs; and Lisa Rice told him she could not remember seeing a list as long as it is today.  He advised the County is going to have to do something to make the opportunities happen; it is important that the leadership of Brevard County government officials take a proactive role in facilitating and promoting the County in regional efforts to enhance economic development; there needs to be an overarching goal to improve the economic prospects for the County residents and the financial prospects for the County Budget as well as the municipal budget; and it will take that effort to really make this happen.

 

Mr. Arrington stated that is an area where there needs to be policy and some discussion from the Board that says it is willing and able to enter into it at this point; it can always be postponed; they are not trying to force the Board into taking any position; but they do want to emphasize that what Mr. Cunningham has found is extraordinary in that all of the players that are out there are saying that they see a really important role for county government in economic development.  He went on to say people do not want to see some government ran economic development program; what they are saying is that there needs to be some leadership exerted from the governing body who represents everybody here; that leadership is facilitating, coordinating, helping to pull people together, and to define strategies; and it is not to dictating to people so much as it is supporting the efforts of people, because in most areas of Florida, economic development is always a challenge.  He advised when the economic development efforts have some focus, the word gets around; and capital investment people, Enterprise Florida, prospective business expansions and relocations understand that Brevard County really has its act together.  He explained it is an economic development network; it is not a new organization; it ties the different stakeholders together in the best manner possible, optimizes them, creates synergy and a sense of teamwork behind a game plan; and that is where they think the County needs to spend some time in the next several months putting that network and strategic plan together.

 

Mr. Cunningham stated in a couple of his interviews he said a benevolent dictator, something that can bring it all together that has the clout to do it; and the County is the only group that brings that level of clout.                  

 

Mr. Arrington stated by calling on the County to perform this new role, it means time, resources, and it is a commitment; the County is in a mode right now that it is difficult to envision making new commitments like this; the air will clear in the next few months and a lot of new ideas will be surfacing, some as a result of the flurry of activity going on around NASA; some of it may be new grant opportunities; he will put those grant opportunities in front of the County Manger within a week so he can assess them and determine whether he wants to commit time and resources and make recommendations to the Board that relates to getting some resources in to do some of this network development and strategic economic development planning being discussed; and it may be the Board will pass this opportunity by and do it in a different way, he is not trying to push this on the Board, but it is a critical issue they think is emerging out of this part of the County's strategic plan.

 

Chairman Bolin asked for a specific example of what he is talking about; and inquired if he is talking about being part of the team that is determining what is going to happen with the $40 million, or is it a behind-the-scenes dealing with each organization separately.  Mr. Cunningham advised it is more extensive than the $40 million; stated that is a pocket of money that is going to be spent; hopefully it will be used to help develop the economy and try to grow the County for the benefit of everyone; but the word 'convener' comes up a lot, it is bringing the parties together.  He added most of the groups tend to work well together; it is not where it needs to be; there needs to be more cohesion between the groups, certainly between varying levels of government; the cities, along with the County, work a lot closer than 10 years ago was the case; but he reiterated that there is more that can be done.

 

Mr. Arrington stated for example, suppose that the Board goes through with this commitment to build an economic development network and do a plan or road map for that network; one of the main initiatives that comes out of that is renewable energy, which Brevard County is pretty well positioned for; what would be done in a well done plan is determine the roles that the various stakeholders are going to play themselves in helping to push that industry and drive its economic development here locally; everyone should rally behind and try to make it happen, so the entities pool on each others resources; and to take a chaotic set of activities and rationalize them to the extent that it can.  He went on to further to say that the best governing board to lends its credibility, clout, convening people, facilitating this, and help to make it happen is county government.

 

Mr. Cunningham advised as the Board reaches beyond the borders of the County, it begins to look more at regional aspects; and the ability to do that is enhanced if it is done as a group with leadership.     

 

Commissioner Fisher stated he believes that there is social responsibilities for the County to do that; he agrees that the County should be involved in that; but there is a certain population out there that thinks they want less government.  He went on to say that people want less government until this topic arises or the oil spills come, and then they want government.  He stated in the partnership he thinks eco-tourism should be one of the partners as well; he is not a bird watcher, but those who follow the birding festival world are definitely a part of where this County can capitalize off of some growth.

 

Mr. Cunningham stated there is definitely diversity in the County; and that is part of bringing it all together. 

 

Commissioner Anderson stated all of the Commissioners have been out on an agricultural tour; and eco-tourism and agriculture can go hand-to-hand very easily.  Mr. Cunningham stated when getting into the alternative energies, the agricultural fits in.

 

Mr. Arrington stated he is a believer in that; if it is done right, it would not be just attracting more tourists, it would also be doing something for the residents; and it really is optimizing a set of assets and figuring out strategies that will bring this to life for the County's residents and the economy.

 

Mr. Cunningham stated sometimes it is forgotten how many people there are involved in economic development in the County, such as Port Canaveral, Technological Research and Development Authority, NASA at Kennedy Space Center, regional support, educational institutions, municipalities, and developers and business.  He stated population has been a big driver of the economy in the first half of the decade; it grew by two percent annually for the first five years of the decade; it flattened out; and there will not be much economic growth coming out of the population infusion.  He went on to state the construction industry is going to require something else to happen; and it will not revive itself on its own without population growth or some other stimulus to the economy.  He stated he hopes people never forget the military; the military is a very stable part of the economic position in the County, and as such a very important one; and they represent 10 percent of the gross domestic County product.  He advised tourism is a good industry; it is significant in the County; with some of the Port Canaveral initiatives that are coming out, such as the retail village it wants to put in place, port of call business is going up significantly, it is getting two Disney ocean liners, and those kinds of things should contribute significantly to the tourism aspects; and even with the reductions of the Cape, they represent 20 percent of the economy, and will be an economic driver going forward.  He went on to say the County has a very high technology manufacturing base; about 12 percent of the employment is high-tech manufacturing; that has a multiplier that really makes it important, when looking at different jobs they bring in important induced and direct jobs, the high-tech manufacturing brings in somewhere between 1.8 and 2.2 as a multiplier on the jobs that they produce; and tourism, retail, and others tend to be closer to a multiplier of a little over 1.   He stated in terms of the technology concentration in Brevard County, it is the highest in the State of Florida and one of the highest nationally; and looking at the number of different entities with different kinds of technologies that make up that concentration, this MSA is number 1 in the country.  He advised the County is well poised to compete for jobs; the industry clusters that are being pursued that the EDC has determined with a strategy along with the County, the good news is they are almost perfectly aligned with Space Florida and with EFI; and with Space Florida it is especially close.  He explained this is a very good place to do business; Brevard County has a very competent and high-tech workforce; there are over 40 engineers per 1,000 people in the workforce, that is the highest in the country; close to 12 percent of the labor force is in manufacturing; there is a small business concentration that is higher; there are a larger number of smaller businesses than will be seen in the national bases; and that is the engine of job growth.  He noted Brevard County has a good State business tax climate; and it has a high quality educational system, all levels, that rates very high in the State of Florida and nationally.

 

Mr. Cunningham stated housing is down; the good news from a development standpoint is housing prices are down; they have come down to where a median housing price in Brevard County is $101,000 to compare to Orlando of $133,000, the southern region $148,000, and nationally $166,000; and when looking at bringing companies to the County, that is a significant advantage.  He went on to state that the quality of life is outstanding; access is good to transportation; there is a diverse economic base; there are a lot of things to build upon; and all of the organizations relating to economic development are competent and very focused on producing good results.  He advised with strengths comes weaknesses; Brevard County is a long county; there is a historical sense of parochialism, and a bit of an island mentality; and that can be a weakness when building the economy.  He stated there is a lack of structural links between responsible parties.  He stated that there are limited State incentives, limited early State capital, and small MSA, limited investment funds.

 

Commissioner Nelson stated there are two problems with his District, within the regional they are seen as very distinct areas, and within the County they are seen the same; and inquired how to address changing that.  He went on to state that he would like to become more of a cohesive regional power so that they can interact on an equal basis instead of being the stepchild to the Central Florida area.  Mr. Cunningham advised by taking a leadership role; he is not sure as a County it has stepped up to make it happen; the northern folks in the County are engaged in that region, the Chamber is very active in that it is the Melbourne Chamber; use leadership of the County as well as some of those economic partners; and he had similar conversations with people in the Melbourne Chamber of Commerce about how did Cocoa get into this and how will it work and fit.  He went on to say there are people thinking about it.

 

Commissioner Nelson stated he noticed that Mr. Cunningham talked to Marsha from Titusville and talked to the folks from Melbourne; and inquired if he talked to the Cocoa Beach Chamber.  Mr. Cunningham responded he did not; but he did talk to Rob Varley.  Commissioner Nelson stated that is kind of an example of the problem.

 

Mr. Arrington stated it is a problem; he saw this with other clients; everyone is struggling with the same issue; he sees a kaleidoscopic picture with a lot of different things moving at one time, and it is hard to figure out how to take this County and the County organization and link to that picture as it is emerging; but half of the game is showing up at the right places; and they are now developing some regional venues where quality work is being done, and the trick is to figure out where to plug in and what the strategy is going to be when it does.  He went on to explain that a lot of the needs to be put into this; he has seen emerge just this year, for the first time, Enterprise Florida, Florida Chamber, Council 100, and some others joining together to do a statewide that is broken down into regions, strategic plan for economic development; he read the whole thing and it is good; they are thinking about sustainability, trying to identify and go about developing the opportunities that everyone knows are out there; and every time a person reads one of these reports, Brevard County is front and center with new opportunities for all of the reasons that Bill suggested.  He noted it really is a question of which wagon is the County going to hitch to, to optimize the interest best; and if the County does a strategic planning and a network development process here, that is precisely the kind of question it should raise.

 

Commissioner Nelson stated Chairman Bolin and he are on the Regional Planning Council and that issue was brought up before the Regional Planning Council; it actually wrote a letter to My Region; and other counties had the same problem.  He stated the Regional Planning Council advised that there were key areas missing; and it was unanimous at the Regional Planning Council to do that.  He stated he thinks the entire Board would like to see it as a bigger power in that area.

 

Chairman Bolin stated the reason she and Commissioner Nelson went to the Regional Planning Council meetings previously was to protect the County because Brevard County was invisible with this group; Space was not even in any of their policies or programs; and Brevard is the kingpin now and needs to be steering people. 

 

Commissioner Fisher stated the Board is part of the leadership that gets the County there, but the Board has too many mixed messages when it comes to where it is and its position.  He stated he will give an example, because he was somewhat embarrassed by it yesterday in front of the Orlando International Airport with Space Florida; the President’s Task Force Team was present; there were six regional counties and others present; and they were trying to decide where they were going to issue $40 million in grants out.  He went on to state that Commissioner Infantini got up and said in front of that Board that the Brevard County Commission is not business friendly; and inquired what kind of message that is sending.

 

Commissioner Infantini advised she said the County was not business friendly, she did not actually name any names; and she did not bad mouth any individual.  Chairman Bolin stated she does not understand where that statement came from.  Commissioner Fisher stated the point is, and the exact statement was, “needs help from the Task Force with her Commission because Brevard County is the least friendly county to which to start a business, and Brevard County has so much oversight that no one will start a business there, and can this panel help her.”  He advised that was the exact statement.  He stated the point he is making is Commissioner Infantini is in front of Washington with $40 million and they are trying to grant it here, and this County Commission has waived impact fees, this County Commission has local preference that it gave, and all Commissioners voted for those things, but leadership is at a meeting in front of Washington, the White House, the Task Force that is trying to decide how to put $40 million here, and then making that kind of statement.  He stated if he was from those other six counties, he would be wanting to get some of that money.  He stated there are other states that want some of that money and that the administration is being too kind to Brevard County; and if he was that Task Force and something like that coming out of the leadership of a county making that comment for a stupid zoning issue because he will not allow someone to have their toilet in the front of the house, which is the only way he is not business friendly, is kind of crazy.

 

Chairman Bolin further inquired why Commissioner Infantini made that statement.  Commissioner Infantini advised she made that statement because since she has been on the County Commission she has tried to decrease the regulation and oversight and make the County mirror St. Johns River Water Management and the Department of Environmental Protection, and as a result of the duplicative and over restrictive efforts, numerous business owners or people who have started new businesses have come to her and told her that the County’s regulations are over the top; she had them say that between the impact fees and regulations, because the County is more restrictive than the Department of Environmental Protection and St. Johns River Water Management District; it is so difficult to go through the maze to get permit applications or permits processed; and what the gentleman at the Task Force suggested is in his State that they have a one-stop shop at a state-level organized and a person can go in at the state level and click which county or municipality.  She stated it needs to be a more statewide economic development instead of it being one district or county.

 

Commissioner Fisher stated he disagrees; he is not worried about other states he is worried about Brevard County; what concerns him in the statement the effort was with no sympathy with the workforce who is getting laid off, it was asking to give the money to second stage companies like UCF and FIT; and he does not have any problem with those organizations, but this money is bigger than UCF or FIT.

 

Commissioner Infantini stated that is not what was said; she said they have second-stage organizations so the County is doing a lot of training and retraining; and the individuals themselves should be empowered to help them create their own companies; instead of always going out and looking for a new company, it is easier to help an existing company grow rather than go secure that white elephant that everyone is competing for; and she helps existing companies, such as Northrup Grumman, Harris, and Florida Tech, who happens to have the entrepreneur program, which she was eluding to, as well as UCF, which has the incubator to help new businesses similar to TRDA, that was where that conversation was going.  She went on to add she appreciates Commissioner Fisher for trying to explain her thoughts, however he has mangled them even better than other Commissioners have.

 

Commissioner Fisher advised he wrote them down, and people in the room were shocked because she made the statement.  Commissioner Infantini stated Commissioner Fisher did not write them down accurately.  Commissioner Fisher stated it is exactly the way she said it.  Commissioner Infantini stated he should use a tape recorder.  Commissioner Fisher stated the message is different; in that room and that setting, with the Obama Administration trying to decide how they are going to help Brevard County, it is not the stop where a Commissioner starts talking about zoning issues.  He went on to say that the gentlemen said, regarding her statement, that they had bigger fish to fry there and that was why they sent him down to Florida; he helped him say what he wanted to say; but the bottom line is the message point.  He went on to add that the Commission needs to work closer together.

 

Chairman Bolin stated when a Commissioner speaks in public, he or she represents the entire Commission, not a single district, and not a personal agenda; and he or she talks to the personal philosophy of Brevard County.  She advised the Board is one voice and should be speaking off of the same page when speaking in public as leaders.

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STAFF/CONSULTANT PRESENTATION

Mr. Cunningham stated there is a lack of in-county information regarding how economic development works, how competitive it is, how these players should play together, and they need to improve that; there is some perception that could exist that the NASA workforce, if the County goes to transition to purely commercial, that may not be an easy transition; but reiterated there may be a perception, there may be a negative, and it needs to be gone over.  He stated there are some regulatory impediments and things can be addressed; in different jurisdictions things are done different, which costs time and money; but with all of the value in Brevard County, it is still an unknown commodity.  He went on to state that the County has not done a very good job of saying what it is all about; and the fact the commodities the County has to offer are not out there is a weakness right now.  He noted the single greatest opportunity the County has is all of the strengths it has; the competitors cannot get them in place as quickly because Brevard County has them; and most of the weaknesses it has can be managed relatively quickly.  He stated the U.S. Spaceflight  Program is in transition; transitions are good if the Board is aggressive and smart; it needs to find the opportunity and make something happen with them; Lynda Weatherman and Frank DiBello have multiple strategies, whichever way this starts to go they are in a position to go get it, they just need to be supported by all of the other power in the County; and certainly the renewable energy initiatives could line up some very significant opportunities in the County.  He stated the County is the best entity to be a lynchpin across the County, across the region, to bring all of these efforts together; and it will allow capitalization on all of the strengths, focus on economic gain, and seize all of these opportunities.  He added Brevard County needs to do some marketing; with all of the critical Brevard County stakeholders, it needs to do aggressive PR campaigning; the shuttle retirement is giving the County a national stage; people are paying attention to Brevard County; if Fox News or CNN News puts a microphone in a persons face, tell them the good news about Brevard County; he or she should tell them if a person wants to do business to come to Brevard County and tell them why; and that message has to be put out there.  He stated it needs to be made easier; there needs to be more coordination with the municipalities; everything needs to be streamlined; and there needs to be some one-stop shopping.  He went on to say that when someone wants to start a business, they need to be helped with whatever it takes to start that business, including assisting in local and State regulatory reviews and approvals; and there needs to be a senior champion to expedite permitting.  He advised when a person comes to do business with the County it has to be a friendly and cooperative thing; he recommends a customer service program and training of folks so he or she understands how to interface with a customer; State level impediments need to be looked at and engage the Legislative Delegation when necessary; requirements need to be defined for long-term business infrastructure; and the County should look at some review pre-approved site-readiness approval processes. 

 

Mr. Cunningham advised the County needs to look at what it can do in addition to the ad valorem tax abatement; carve-out from capital/infrastructure programs; coordinate with regional/national funding sources; and to lead the effort with local/regional financial sources to establish private funding and investment capital for business expansion and start-up.  He went on to state an economic development network needs to be built; all of the stakeholders in the network need to be identified; a network vision and mission and long-term economic development strategic plan should be developed; roles and relationships need to be defined; and stakeholders and public engagement education and training component should be included.  He stated the County can assume a leadership role, a convener, in coordination of County and regional economic development activity; there should be structured and routine communication and leverage resources; and the County needs to provide a larger, more powerful presence.  He stated the Board should reach out to the community and maintain open communication, look at goals and measure for initiatives; and regularly report progress, not only to the Board but to the population of the County.  He added to stay focused, the County should embed a perspective of economic impact on regular Commission business and decision making, budgetary development, and departmental activities; and lastly celebrate success.

 

Commissioner Nelson stated when he was the Board's representative on the EDC and the issue of being business friendly came up, one of the things that struck him is that it was all one-sided; one of his observations from having gone through the same process with building things is that the firms being dealt with did not always know what the rules were; and they would from time-to- time blame the permitting agency when it was not really the permitting agency's fault.  He went on to say because he was involved with the County he could walk across the street to Building A and ask what was going on, and the reply would sometimes be it was the third time the paperwork was submitted and it was wrong each time.  He advised he thinks there is a training component with the public as well as County employees; everyone could get better at what they do; and an effort needs to be made to be consistent.

 

Mr. Cunningham expressed his agreement with Commissioner Nelson; by doing it from both sides a happy medium can be found to satisfy the needs everyone wants; and it should be quick and friendly so businesses want to do business in the County. 

 

Mr. Tipton advised staff is currently working with the EDC and subgroups with contractors, looking at the County's permitting processes; and so far there has been some good give and take and recognition of the requirements being looked at.  He stated staff will be going through and implementing their recommendations in the not too distant future; and it is about communication and breaking down some of the barriers and making sure each side understands the opportunities and challenges before them.              

 

Mr. Arrington stated one of the things that is included in the requirements for some of these federal resources that he has been speaking about is to take this problem on head-on; now that the economy has slowed down to the extent that it has, and the spade of activity that everyone was under from 2000-2005 has abated; there is now a good opportunity to step back from the old regulatory framework and redo it; and hopefully that is something Brevard County can participate in, in its old Code.  He went on to state that one of the things that drives developers crazy is the shear complexity of all of this stuff, because there are so many agencies that do not talk to each other and it is hard to make sense of it; and making sense of it is part of the planning process.

 

The Board recessed at 2:36 p.m. and reconvened at 2:50 p.m.

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PUBLIC COMMENTS

Robert Lancaster stated he has an idea he wanted to share with the Board for perhaps closing the budget gap; he inquired if anyone had thought about reorganizing the Fire Department; stated when he first came to Brevard County 45 years ago, all of Merritt Island and the City of Cape Canaveral was a voluntary fire department; and no one's house ever burned down and everyone was happy.  He went on to say all of a sudden it was converted over to the present situation.  He stated now over $70 million a year is being spent for the Fire Department; in 10 years that would be $700 million; and inquired if the County is getting that much worth out of the Fire Department, which mainly runs up and down Wickham Road, Garden Street, and U. S. 1, answers phony emergency calls and occasionally they run down to Palm Bay and squirt water on grass fires.  He advised he did not think that is worth $70 million a year; and if County Manager Howard Tipton was instructed to reorganize the Fire Department so that they could have one paid firefighter in every fire house and the rest could be voluntary as it was several years ago, the County could save maybe $50 million a year.  He stated he sat and listened to the consultants talk for over an hour, which they said essentially nothing that everyone did not already know; they stated the obvious; and he hopes they are not getting paid.

 

Chief Paul Foresberg stated the cities have been told through the years that the advanced life support delivery in the County is an integrated system, with the cities in many areas providing initial care and treatment and the County providing transport; the problem with the system is revenues for the system come from transport fees and ad valorem taxes; and without the first responder fees, the cities will be spending money for med's, supplies, equipment, maintenance, and training without compensation.  He stated the EMS budget for the next fiscal year is approximately $350,000, and does not include any of the paramedic compensation, that is supplies and equipment and not capital.  He requested that the Board continue to fund the First Responder Program; he does not know the restraints the Board is under; and if it is not possible he would like the cities to fund other means of funding their portion of the system, including transport.

 

Chuck Bogle, City of Titusville Fire Chief, stated he would like the Board to reconsider the first responder fees; it is a program that has been in place since the mid 1990's that has helped establish a funding source to help provide ALS services completely through Brevard County, which was a request by the Board; if it is not continued to be funded what will happen is some of the other departments may or may not be able to continue providing that level of service; and it will have significant impacts to the citizenry of Brevard County.  He stated he agrees with a lot of what the consultants spoke about today; they talked about regionalization, and that is part of what this EMS program is all about; they are helping everyone achieve the best solutions possible in regards to providing ALS services to the citizens of Brevard County; it is a collaborative effort; and they work very well together.  He went on to say there was a report by former Fire Chief William Farmer that was presented to the Board that said if the same amount of service is provided that is currently being provided by the County alone, it would cost 10 times more; and the First Responder fee, when it was fully-funded, was $1.3 million.  He advised the return on investment is 10 to one regarding that program; he does not know where a person gets a better bang for the buck; and it is an essential service. 

 

Yvonne Jenkins stated she represents Shiloh A.M.E. Church in Mims; last Thursday she attended the SCAT meeting at the Mims/Scottsmoor Library; there were 29 people in attendance; she understands that was twice the number at the six other meetings; and they were there because they wanted to address the issue of saving the buses, especially Route 5.  She went on to say there were no other options presented to them except the elimination of Route 5 and the elimination of one bus driver position; however, those in attendance provided many options and they will be presented to the Board by other speakers today.  She stated some of the reasons for keeping that bus is Veterans ride the bus to come to Viera for medical care, others who have no transportation other than the bus, and students ride back and forth to Brevard Community College; unemployment is high, there are people who work who live in Scottsmoor, which is in the northern part of Brevard County, and have to go to Cocoa or they would not have a job; there are people who come to eat at the Cuyler Community Center in Mims, Salvation Army in Titusville, the Harry T. Moore Service Center in Titusville, and the Shiloh A.M.E. Church gives free food every month; and the church is trying to get more money to do more.  She went on to say that people often come to their church in a wheelchair, because the buses are wheelchair accessible; there are shuttle workers who live in Titusville; she understands some of them have been laid off and some will continue to get laid off, and they are trying to redirect and go to the community college to take courses; students also sometimes cannot get the courses they need in their local college, so they need to travel to anther one; and that is why Route 5 is so necessary.  She stated on behalf of the Mims/Scottsmoor community and especially with regards to Route 5, she is requesting the Board consider the public transportation funding as part of this years budget.

 

Thomas Hargrave, Brevard Achievement Center and Interagency Council of Brevard, stated the mission of the Interagency Council is interagency collaboration to enhance the quality of life for all individuals with disabilities in Brevard County.  He expressed his appreciation to the Board for allowing him to deliver a message of support for the public transportation, Space Coast Area Transit (SCAT); SCAT fixed-route ridership has exceeded 100,000 passenger boarding's over the  course of the past 26 consecutive months; the community's need for this service is shown by the fact that in 2008, for the first time in the history of the Brevard County transportation system, 1.2 million fixed-route passenger trips were provided, only to be topped in 2009 when fixed route passenger trips exceeded 1.4 million; in the month of April 2010, SCAT celebrated its historic 10 millionth all-time fixed route passenger boarding; and the current year-to-date numbers show that overall ridership has increased by 14 percent.  He went on to say for many Brevard County residents the services provided allow for greater independence; with the continued support of the Board, members quality of life will continue to improve; and all members of the community, including individuals with disabilities will have the full opportunity to access all Brevard County has to offer.  He requested the Board strongly consider that SCAT services remain in place for the upcoming fiscal year; and he expressed his appreciation on behalf of the entire Interagency Council and Legislative Task force to the Board for its consideration regarding this important community issue.

 

Sara Ann Conkling expressed her appreciation to the Board for all of its hard work; and to staff who has not received a raise in four years but continues to provide wonderful services to the citizens of Brevard County.  She stated her official position is there should be no loss of public transportation; she is willing to have the millage raised in order to accomplish that mission; there are many people who do not want the millage raised; she is personally happy to have it raised; and she believes many of her compatriots who are present to speak on this issue are equally disposed.  She advised if the millage cannot be raised she would be grateful if the Board would consider a super majority vote to vote to implement the 9th cent solution, a one penny user fee on gasoline purchases; she priced gas, and the cheapest is in Brevard County; people will not miss this penny; and consider it as a means to achieve what needs to be done with the public transportation.  She distributed documentation to the Board.  She advised there are four districts that need to come up to excellent fixed route service, which is currently enjoyed by District 2; the purpose of this discussion is not to take any resources away from District 2, because she loves District 2; the point is there are four other districts, some of which fall scandalously below District 2 in their enjoyment of fixed route transportation service hours; and they need to be brought up in order to achieve equity. 

 

Commissioner Nelson stated Cocoa Beach pays for part of the bus service; and in the south part of the County they cross district lines.  Ms. Conkling advised Cocoa Beach and Melbourne both make a small contribution towards the service, but it is not significant enough to explain the disparity; she needs the Board to address this disparity; and District 1 not only has as many citizens as every other district, but it also has more square miles.

 

Edwin Mortiz expressed his appreciation to the Board to take care of the transportation issue; he lost his vision; he goes to the Drop-in Center; and without transportation he can not go where he needs to go. 

 

Jean McPhaden, Executive Director of the Drop-in Center, stated in 2000, several people killed themselves at the jail, and the Board formed the Community Solutions on Mental Health; and that committee asked her to be the director of the Drop-in Center.  She went on to say the Drop-in Center does not receive funding from the County; they provide services for $8.50 an hour; they keep people from killing themselves, going to jail, and going to psychiatric hospitals, which are all very expensive.  She stated when people are able to ride the bus, it reduces problems, keeps people educated, problems off of the street, crime lower, because when people's personal problems are solved they tend to commit less crimes; there can be social services throughout the County, but if people cannot get there that is a problem; and logically, it makes sense to not take away any funding from transportation. 

 

Kathy Andrew stated she works at the Drop-in Center with people who need transportation; she objects to any scaling back of fixed route bus services by SCAT; the Drop-in Center is a group that has people living with disabilities; and she requested the Board vote to fund the transit system as needed.  She went on to provide those reasons to the Board.  She advised that SCAT has been working with the Drop-in Center residents to help them use the bus system; and cuts and services would limit the independence of the members living with disabilities.  She provided the Board with suggestions of ways to help with funding so routes would not be eliminated.

Joseph Harvey stated he does not use the public transportation system, yet he feels it is vitally necessary to maintain the quality of life issues in Brevard County; and he appreciates Commissioner Fisher for being an advocate for public transportation.  He stated this is one percent of the budget for public transportation; this is a necessity because the physical layout of the County is such that being interconnected is very important; the current funding is low; and he requested that the Board not only secure the current status of the bus system, but to actually increase the funding of that.

 

Zeida Ghaudoin stated she is a member of NAMI Space Coast, Inc., stated the bus system should remain as it is, and even expanded; she is currently taking classes and needs the transportation; by attending classes, she can manage her illness and function better and contribute; and most of them do not have transportation.  She advised it is important people have the bus service; and requested the Board be creative on its budget adjustments.

 

Roberta Williamson-Musco stated when she moved to Brevard County she learned it was drive or die; the SCAT bus system has become her lifeline; she is a Member of Brevard Coalition of Human Services; and there are many families homeless and Veterans who live in the North Mims area and they have no other means of transportation.  She went on to add that Bus Route 5 is a necessity to the citizens; it needs to be expanded rather than cut; and requested the Board not cut the lifeline of its citizens.

 

Dana Sloan, Space Coast Center for Independent Living, stated they run buses up and down the County for people with disabilities; they lease those buses from SCAT; over the last four years the buses have increased to four buses; these are small accessible buses; and they can only deal with people with disabilities.  He stated times are hard; one of the competitive strengths of the County is the transit system; people depend on the buses for work; and it should be expanded to the County line as there are Veterans who need to get to the VA, and they do not necessarily qualify for them to pick up.  He advised Bus Route 5 is the only lifeline some of these people have; as a taxpayer he would like to point out if his millage rates need to go up that is fine; they do not want any cuts, especially to Route 5; there are other alternatives; and when times are hard, the bus system should not be cut. 

 

George Haff stated he is representing NBHS; their mission statement is to take care of homeless Veterans; a lot of the homeless Veterans have been moved into the Mims/Scottsmoor area because of the problems with the Titusville City government; they pushed to get the bus route extended to the library last year; and they really wish it would go to the County line.  He advised if Route 5 is closed down, the Board stands a good chance of losing a Winn Dixie store in Titusville, because the closest food store to the people who live in Mims is the Winn Dixie at Dairy Road and Singleton Avenue, which is on the route for Bus 5; there are people who ride bikes to the bus so they can ride the bus to purchase food; and there are many generations of the same family living in a house in terrible poverty.  He advised they are hoping the County will donate the land for the tent city for the homeless Vets; if the bus service is cut, then they will come to the Board to ask it to buy them buses to get the Veterans to the clinics they need to go to, because it has to be ADA capable; and those vehicles are expensive.  He went on to state the Iraq and Afghanistan Veterans are getting out of the service and being told if he or she signs a paper they can go home today, the other states there is no medical problems; and people are signing Form A, which signs away all of the VA rights.  He stated that means the health departments are going to have to pick up all of the ill soldiers.  He suggested if the Board has to cut bus routes, cut them in the wealthier parts of the County because they have cars.

 

Kate Junco, Director of Marketing and Media Relations for Brevard Community College, stated she is present on behalf of BCC President Dr. Jim Drake and all of the 25,000 students to respectfully request that the Board reconsider budget proposals to reduce or eliminate existing bus routes that provide access to higher educational opportunities at BCC that many of the students would otherwise not have; instead they urge the Board to maintain important public transportation services provided by SCAT; the majority of the SCAT budget proposals will result in the reduction or elimination of bus services to three out of four of their campuses; there are proposals to significantly reduce the number of stops on Route 28, which services the Melbourne campus, as well as Route 22, which services the Palm Bay Campus; and at their worst, these stops call for doubling the time of stops from one time per hour to once every two hours.  She added another SCAT proposal is to eliminate Route 5, the only bus route that stops at the Titusville BCC Campus; these proposals are concerning, not only because of the obvious hardship on the students, but because BCC pays SCAT so the students can ride for free; BCC paid SCAT $20,000 last fiscal year and $15,000 the previous fiscal year; and BCC students, some who cannot drive, are low income, or are disabled, rely on SCAT buses to pursue the educational and training goals, and gain the skills necessary in the workforce; and in the month of April alone, over 1,200 students rode Route 22 from the BCC Palm Bay campus and 950 rode Route 28 from the Melbourne campus, and about 200 students rode on Route 5.  She requested that the Board consider the critical lifeline SCAT provides to all Brevard County citizens and find a way to maintain existing services.

 

Julia Irvin, Connected by 25 Brevard, stated they provide enhancement services to young adults who were formerly in foster care; many of the young adults find themselves living in situations where the only affordable housing they can get is somewhere that does not happen to be on the bus route; the bus system is almost inaccessible to them; but to the people who are able to use it, it is a lifeline.  She requested that the Board not cut the funding, and to expand the service.

Commissioner Fisher expressed his appreciation to all of the speakers.  He stated he rode the bus when he was first elected, from the Titusville Government Center to Viera; the people on there were not people who really wanted to be on there other than they could not afford to own a car; it was shocking of all of the people who represented all of the Veterans and disabled people who spoke today; he had a conversation with Dr. Drake who is very concerned from the educational standpoint; he has a concern with Route 5 being eliminated and what it will do to the citizens of North Brevard; and he hopes the Board will, as it goes through the budget process, realize how important the bus service is.  

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FY 2010/2011 BUDGET OVERVIEW BY COUNTY MANAGER

County Manager Howard Tipton stated when he arrived on September 28th to this position it was already known that the economy was still heading south and that the budget projections for next year are going to be difficult; they started budget discussions in January and just completed the fifth workshop with the Board on different needs and aspects on strategies on how to approach the challenges before it; and now discussions will be as difficult and challenging as any that have been had here for a long time.  He expressed his appreciation to the Board for its time and guidance over these months and for its commitment to serve the community during this time; he expressed his appreciation to the Constitutional Officers for their efforts to help meet the budget guidelines; and he wanted to recognize and thank the budget staff, Assistant County Managers, Mel Scott, and Stockton Whitten, and all of the departments as they have worked tirelessly on the challenges this year's budget creates.  He went on to say the Board over the next 80 days or so will be making important decisions that will impact next year's budget; when he says next year, he should point out that the County's budget process does not run on a calendar year, but actually runs October 1st through September 30th; the budget itself is the single most important policy document this Board approves; and it is where the rubber meets the road and it represents the values and priorities of this Commission.  He advised for today's budget overview, the Board will be looking at a summary of the overall budget information, reviewing some of the budget highlights, looking at some of the service-level impacts from the budget reductions, identifying outstanding issues, outlining initiatives and strategies for next year, and then talking about the next steps.  He advised staff is required to present, and for the Board to approve, a balanced budget, unlike other government agencies; the budget before the Board is balanced; the total County Budget is $974,883,409, which is a 13.96 percent decrease over the current year; and the General Fund portion of that budget, which includes property taxes, State shared revenues, and other funding sources, and is used to support the majority of operations is $232,944,387, down almost 11 percent from the current year.  He noted the slide before the Board shows the cumulative change in General Fund revenues over what has been experienced in 2009 and 2010, and what is going to be experience in 2011; and it is substantial.  He stated the Board's direction was to keep the overall tax rate for properties the same as this year, and this budget holds steady the current tax rate on property taxes; the proposed millage rate, which is another name for the tax rate, is at 5.4720, and remains the same for the third consecutive year; in the law there is a provision for a rollback millage rate, which was created during better economic times, and was meant to show whether there was a tax increase proposed or not; and for instance, in times when the property values were rising at five percent, if the same tax rate or millage was applied to that increased value, the government would receive more money even though it kept the tax rate the same.  He added what the roll back rate would do is show the actual rate of the tax necessary to generate the same amount of income for the government as the year earlier; if the amount generated was more, excluding taxes from new construction, even if the tax rate was the same or slightly lower, it had to be advertised as a tax increase; in times when property values are not increasing, the rollback does still apply; now, however it represents the amount of increase needed in the tax rate to generate the same amount of revenue; the rollback rate needed for Brevard County to generate the same amount of revenue is a millage amount of 6.3545; and by keeping the millage or tax rate the same as last year the proposed millage represents a tax rate decrease over roll back of 13.9 percent.  He stated all of these rollback discussions are part of the budget discussions, and he presented that for the Board's information.  He stated as discussed with the Board this spring about priorities, staff took away direction that the focus of this budget of building effort around core services of County government; these core services are defined as public safety, public health, roads and transportation, economic development, and libraries; even though the core services were a priority, all still have budget impacts; and for the services not listed as core, it does not mean that they are not worthy or important, it is simply a method and approach to try to prioritize how scarce resources are applied.  He went on to say discussion has been had regarding the need to ensure the County's house is in order; there is a structural imbalance that has occurred between the revenues and expenditures and one of the most important steps needed was to make sure that the County was living within its means; part of this effort requires that it look at its ability to manage its debt and to protect its credit rating, not only for today but for the future so that Brevard County will be able to go within the financial marketplace with its head held high knowing that it made the tough decision to keep its financial house in order; they also wanted to drive the organization to higher return on investments; they looked to where the local investments could be leveraged, with some success; but they did not have all of the success that he had hoped for.  He stated working to improve service delivery options through consolidation, centralization, and outsources, where appropriate, were also explored and will continue to be part of future budget discussions; and just like any other business, they can always get better, and are committed to do that.  He went on to state the Board has committed continuous support of the Space Coast Economic Development Commission, and rightly so; they are the marketing and business development arm of the community; but in this competitive environment there is tremendous business opportunity and if Brevard County wants to be a player in this global marketplace, it must plan beyond the current incentives that are offered and be ready to show stronger levels of commitment.  He added it is difficult to find dollars for this in these times, but the opportunity to bring good jobs to the hard hit areas demands that it finds it; and along with this to take on that regional perspective of business development.  He stated the County needs to look at the environment it is in and plan for the future that allows for sustainability; and he defines sustainability as living within the County's means, maintaining the infrastructure it has or will build, and providing critical services through staff that is trained and fairly compensated.

 

Mr. Tipton explained property values were down 13 percent in the fiscal year 08-09; they were down 11.69 percent for 09-10; it is anticipated that they will be down 12.41 percent for 10-11; and for the year after that when it is anticipating bottoming out from the spiral down, staff anticipates another 10 percent decrease in 2011-2012.  He advised the slide shows the change in operating tax revenues; operating tax revenues include everything under the property tax funds, like all Countywide services, Jail, EMS, Countywide law enforcement, Mosquito Control, Library, Fire, Road and Bridge, Parks and Recreation, MSTU's, and others; these will decline by 23 percent by 2011, in just over a three-year period, and a major challenge to the provision of services to be sure.  He went on to say there is a number of reasons to believe the revenues will not return to previous levels anytime soon, and he is going to take a few minutes to drive that point home.  He stated in response of concerns over surging property values and the subsequent increase in taxes in the early to mid 1990's, the Save Our Homes Amendment to the Constitution was approved by the voters and capped the growth in taxable values for homesteaded properties, which are permanent residences since 1996; the Amendment was intended to protect homeowners from escalating property tax bills resulting from the growth in the market, a situation that was perceived to be forcing some people, particularly residents on fixed-income, to sell their homes; while this objective has no doubt been achieved, there has been a dramatic, and in many cases unforeseen consequences as a result of Save Our Homes; because of the large amount of market or just value not taxed due to the Save Our Homes exemption, a disproportionate share  of any increase in tax revenue has been placed on properties that are not established permanent residences, such as businesses, rental properties, and newly purchased homes; and as someone who just purchased a home, he can attest to that.  He stated the Florida Legislature perceived property tax reform as one of the two most critical issues, along with property insurance reform, that needed to be addressed in 2007; in June of that year, a three-day special session of the Legislature produced a mandate that was unlike any other seen before in its forced down-sizing of local government in Florida; in addition, the Legislature did not make similar reductions to the fiscal year 2008 school property taxes, which it controls, even though these taxes make up 40 percent of most of the property owners tax bills; and the impact from this Legislation was to reduce the County millage rate by nine percent.  He went on to state the other item adopted by the Legislature with important long-term implications was the implementation of a property tax revenue cap; beginning in fiscal year 2009, property tax revenue increases will be limited to new construction, plus the Statewide percentage increase in per capita personal income; this percentage has averaged about 3.8 percent from 1991 to 2008; it is anticipated that from 2009 to 2011, the personal income will be averaging about from one to three percent; even this minor increase is neutralized by the historic decreases in property valuation; and a long-term impact of this cap is that property tax revenue will be constrained even if taxable values increase beyond the average in personal income.  He added local governments can override these revenue caps with various levels of super majority votes by the governing body or by referendum, depending on the degree that the revenue exceeds the cap; and to date, the impact has not been seen from this cap because the values have actually declined since it was passed. 

 

Mr. Tipton stated the fiscal year 2009 budget situation was unique in several ways; this was largely due to the passage of Amendment 1 placed on the ballot by the Legislature and approved by the voters on January 29, 2008, which reduced property tax revenues; and also the economic downturn, which began in fiscal year 2008 intensified, which further reduced property taxes and also reduced revenue from other sources.  He advised Amendment 1 made the following changes, which reduced taxable property values and revenues available to local government:  it doubled the existing $25,000 homestead exemption, except for school taxes; it allows for up to $500,000 of the Save Our Homes exemption to be applied to another property, which is known as portability; it imposed a 10 percent cap on assessments for non-homestead properties, school tax is exempt; and instituted a new tangible personal property exemption of $25,000.  He stated there is also a Charter constraint on future revenues; Brevard County's Charter, Section 2.9.3.1, placed limitations on growth on ad valorem property tax revenues; it limits the amount of millage or tax rate increase to the lesser of three percent or the percentage change of the CPI from the proceeding calendar year; and the CPI from this year was actually a negative change. 

 

Mr. Tipton advised at the same time the real estate bubble burst and market values for properties declined, the result was an unprecedented decrease in the property tax base; to complicate the situation further, the economy, which was in a slow down mode, deteriorated to a point that other revenues, such as sales taxes and state revenue sharing, declined dramatically; and the end result of all of these changes was a significant reduction in the General Fund revenues, and similar effects on many other funds.  He went on to add taking all of this into account, the consultants that have been before the Board and staff have used this information to help with the forecasting of future revenues; and they have concluded that, assuming no change to the millage rate and understanding all the other constraints, the County will not return to 2007 revenue levels until 2018 or beyond.  He stated it is reasonable and prudent to conclude that the budget reductions proposed for this year, and looking ahead to the next year and possibly another 10 percent reduction, that these are permanent cuts; and therefore, the Board must adjust the focus of this County government to determine what services it will provide and what level as all adjusts to the new reality.  He went on to state this is also called the new normal; the days of fast growth and high rising revenues are gone for the foreseeable and possibly distant future; and as they talk about a new reality and a new normal, it reflects this lower revenue environment.  He explained this is a huge adjustment taking place in many cities and counties across the State; and the State will likely be doing its version of this next year as it looks to fix a $5 billion budget gap.

 

Mr. Tipton explained in 2009, Brevard County had the lowest tax rate in Florida; within the six-county region that is called East Central Florida, Brevard County has the lowest tax rate; and in terms of competitiveness and economic development, Brevard County is the best there is.  He stated core services are impacted by this budget, but less so than other areas; after looking at hundreds of different scenarios over these past weeks of budget reviews, there was just no way around it; staff is taking the first steps to build on the fiscal integrity and sustainability discussions that they have had during the workshops with the Board; they are proposing restructuring Public Works, Parks and Recreation, and EEL; the debt restructuring will not allow certain projects or property acquisitions to go forward that had been planned; these will have significant impacts; but in recognizing this new fiscal reality, staff is recommending these adjustments to meet the debt obligations and protect the County's credit rating.  He advised multiple strategies to continue to control costs will continue and they include hiring freezes for non-essential positions, no salary increases, moving positions where appropriate from full-time to part-time, additional use of volunteers, severely restricting traveling and training, fleet reduction, maintenance and equipment deferral where possible, and the list goes on.  He stated the current departments of Public Works, Public Utilities, and Solid Waste are proposed to be combined, creating a new Public Works Department; consolidation will result in the efficiencies of having one area of engineering, one area of support, one area of fiscal analysis, and a better utilization of the equipment and assets that all three of these areas maintain; it will result in fewer administrative positions; and while there will be savings this year, the very benefits from this full integration will continue to be realized in the future.  He went on to add all County vehicles and equipment, excluding fire heavy equipment, will be consolidated; and staff will be looking at the feasibility of including Fire into the consolidated Fleet Operations.  He stated real estate and property leases will be consolidated through one office; facility construction and services will be consolidated into one office; and centralization of Purchasing functions and a commitment to stronger contract compliance will be happening.  He stated as the Board knows, staff is currently looking at reviewing responses to proposals to outsource pretrial services and misdemeanor probation; there will be other departmental outsourcing reviews; and as they become practical and ready for discussion, staff will bring them to the Board over the course of the next year.

 

Mr. Tipton went on to explain the County has had great success in leveraging dollars; with Space Coast Area Transit for every $1 invested $9 is returned, and it is by far the best investment the County has; Emergency Management, without leveraging the dollars, the County would not be able to operate as much as is done without the help of those outside agencies; there is great continuing relationships with the University of Florida as the land grant university for the State through the Extension Service; the Agricultural economy is huge in Brevard County; and the Extension office is really a great way to support that.  He added he saw a need to step up the County's game of the County's investments; the Board is supporting the Economic Development Commission; this budget shows that they continue to be supported but at a slightly less dollar amount; and it is recommended it goes from $1.5 million in funding to $1.4 million.  He stated he mentioned earlier about the need to provide investments for business attraction; it is not enough to provide tax abatement; businesses today are looking for financial partners as looking to relocate; this budget includes $500,000 to work to bring jobs to the County; but that amount will not go far as it is only a starting point.  He advised economic development is a network; and it will compliment these kinds of investments as the County looks to work on a regional basis.    

 

Mr. Tipton advised the budget books include a separate section dedicated to discussing what the service levels are; from the previous Board discussions, staff understands that the Board understands, as staff deliberate these decisions, just what the impacts will be; these are a work in progress and subject to change as he continues to work with the departments; but it should give the Board the idea of the impacts.  He went on to say 86 positions that are currently vacant are being eliminated; there are 15 manager/supervisor positions being cut of the 86; and there are 71 front line positions being cut.  He stated today they have notified 118 people that his or her position is being eliminated; of those, 28 supervisory/management positions are being eliminated; and 90 positions are front line service providers.  He explained that all together it is a total of 204 positions that will be eliminated by October 1st; by taking into account previous year's staff reductions back to fiscal year 2005-2006, the County has eliminated 459 full-time equivalents (FTE) or 20 percent of its workforce; and this is below the staffing levels of the fiscal year 2001-2002 budget.  He stated unfortunately that was not enough; staff is looking into introducing furlough days, 12 of them, one a month, which equates to a five percent pay cut for all non-emergency employees; the Constitutional Officers have been invited to participate for County-funded positions; and he is seeking to close the building down one day a month to achieve additional energy savings.  He went on to add, staff will be back before the Board on July 22, 2010 to discuss how to deal with colleagues who are covered under union contracts regarding the issues of furloughs.  He stated additionally, there will be additional cost increases for health insurance that will be passed on to employees and retirees in this coming year.  He stated the Sheriff has requested that the Law Enforcement Municipal Service Taxing Unit be rolled back so he can collect the same amount of funding this year as last; this MSTU is what pays for the deputies on the road and their supervisors; given the Board's direction to hold the aggregate millage the same, he was unable to comply with the Sheriff's request without further impacting the County's budget by an additional $1.7 million; the Sheriff will make his presentation to the Board July 22nd; but if things stand the way they are today, the Sheriff said he will lose 27 deputy positions.  He stated the Lifeguard Program will be reduced by $300,000, resulting in 16 fewer lifeguards; this represents a new gain over earlier years service levels, so the County is still better than years before, but not as good as last year.  He stated the dollars cannot be found to fund the First Responder Program this year; staff is recommending that be zeroed out, which will provide a savings of an additional $900,000 annually to the County.  He stated reduced positions in the Animal Services and Code Enforcement Offices will mean longer response times.  He went on to say that the majority of the positions being eliminated are coming from Parks and Recreation Department, the total is 91; additionally, due to the return of bond proceeds, referendum projects in the central and south areas will be delayed; the overall decrease in the Parks and Recreation budget is 31 percent, which is approximately a $5 million impact; and given the magnitude of these cuts, the service-level impacts will be dramatic to operating hours, maintenance levels to the grounds, sports fields, facilities, and other related activities and programs.  He stated the elimination of 10 positions will occur in EELs; and a decrease in operating hours. 

 

He stated Community Based Organizations is an area where dollars are leveraged; the funding to these organizations will be eliminated, which amount to $800,000 a year; and like many of the impacts to social services can be a short-term game with a long-term cost, many of the Community Based Organizations leverage the dollars given by the County to grow the amount needed to serve the community.  He stated staff is proposing to cut County funding to the Brevard Cultural Alliance, which will save $280,000 a year; Space Coast Government TV (SCGTV) will lose one position, which relegates them to only being able to televise County Commission meetings and other municipal broadcasts and programming; and the position that provides Legislative Delegation support is being eliminated.  He went on to state that transit is an important part of the community's well-being; staff did its best to spare SCAT, but the General Fund transfer they receive, like all of the others, was impacted; in a matter of fairness, he is asking all of the County employees to participate in the furlough program; and that is the extent to which SCAT funding is being impacted; and how they implement the furlough could have route impacts or overall service reductions, but that will be less than five percent.

 

Mr. Tipton advised forecasted property values an additional 10 percent; how the organization reduces further will continue to change the abilities of County government; fund balances are those funds that are budgeted but not spent for whatever reason during the year; as these fund balances are carried forward, they are typically used to fund new projects or to help with cash flow as the County waits to receive property tax payment; this year's fund balance shrank by 21.81 percent or $5.3 million; and that trend is likely to continue.  He stated it needs as part of the sustainability discussions, how to manage the County's cash flow needs to be addressed in the face of these declining fund balances; reserves for the General Fund are held constant; however, with the economic incentive when what is, due Embraer comes due, $1.8 million will be paid from Reserves, it will stand at $13.2 million or just over six and one-half percent of the operating revenues; and that is really the minimum level, and the Board should be talking about bringing those reserves higher.

 

He explained the bond coverage amounts for the water waste utility debt needed under the County’s loan agreement were barely met this year due to decreased demands in revenues; staff will be watching closely the revenues over the next few months and may be returning to ask for a rate adjustment if the revenues are not meeting the bond requirements; but the good news is that the bonds will be paid off in 2013, and if there is a rate increase necessary, it will likely be a short-term increase.  He advised the County’s five-year capital program is basically a program on paper; it is not funded; as part of the County’s fiscal integrity and sustainability, it needs to develop a capital program that is funded and realistic; the County currently has unsustainable programs and service levels; and the County defers maintenance and replacement of equipment beyond what is reasonable and in some cases what is safe.  He stated the County employees have been front and center of the brunt that has been dealt and they need to be front and center of the economic recovery as well; and he will be talking, in the next 12 months, about a plan to develop the workforce and recognize the services they do provide to begin to compensate them fairly for the work that they do.  He stated the economic development investment, as he mentioned before, the $500,000 that has been identified for investment is just the beginning of where he believes the County needs to be; if it is going to be a power player in this region, it will be playing seriously in an international market that looks at high-tech, clean-tech, alternative energies, and space; and it needs to be serious player in finding those funds to address those kinds of investments, as was made for Embraer, which is going to pay off in a number of jobs well over 200 in the years to come. 

 

He went on to say the role of County government needs to be redefined; if it is in this new reality and new normal, it needs to rethink the services and things it is able to do and do well, it needs to look for networks and solutions that are out there with non-profits, privates, others cities, government to government; all kinds of solutions are out there and all is scrambling in the same way; but the County needs to spend some serious time looking at it.  He advised staff met with the cities; they are waiting to see what the County’s budget looks like before committing to much; and he has a conference call with the cities tomorrow to share with them the budget impacts.  He stated another initiative for next year is there is an opportunity to market Brevard County well beyond where it is currently at, and there would be a natural synergy between Tourist Development and the Economic Development Commission; so many people come to Brevard County first as a visitor; and if that experience is great, at the same time expanding their awareness of what Brevard County has available, it has the opportunity to take advantage of many of the assets it has.  He stated staff is working hard to make sure the County is as business-friendly as it can be; one of the things in the interview he had with Mr. Cunningham is they talked about taking advantage of the space currently in Building A and perhaps bringing in State agencies who can be a part of the permitting process, reaching out to them so Brevard County is truly a one-stop shop; and staff is looking forward to those discussions.  He went on to state evaluations at the Cocoa Landfill is something this Board has brought up previously, and staff is committed to exploring that as part of their commitment to being green; taking a look and making sure they are not just trying to buy land to scatter trash on; the County cannot do that, it needs to make sure this lasts as long as possible; and to shrink the stream going into the landfill and create energy to be sold back to the grid to help pay for the costs.

 

He explained as Commissioner Anderson knows, staff is looking at some higher than they would like to see jail numbers, and the County is right now up against the cap; they are looking at the feasibility of a jail at the courtroom; they will be going out to visit another site in August to look at what kind of benefits it might bring; there is no point in doing it if there is no process improvements; but many places have seen improvements.  He added it is definitely cheaper to do that than it is to staff a new wing to the jail.  He stated staff is going to continue to evaluate additional outsourcing and alternative services deliveries; and they will continue to provide for the current cost reduction strategies, and try to increase those where possible.

 

Mr. Tipton went on to say July 15^th there is a Community Redevelopment Agency (CRA) and budget workshop where the CRA’s will be coming in that are here throughout the County sharing their plans, various activities, and contributions; there is a night budget workshop scheduled for July 22^nd, at which time the Board will hear from most of the Constitutional Officers as well as some of the key departments; August 3^rd it is proposed now to have the adoption of the tentative millage; what that means is at that point the Board is asked to approve a millage rate, which then is locked in, it cannot go any higher; and it can be lowered in the public hearings but it cannot go higher.  He added the first public hearing is on September 14^th and on September 28^th, the final budget is approved.

 

He stated in summary, as the new County Manager submitting the budget to the Board, he would have preferred an easier first time around; unfortunately, a person does not get to chose the times in which they live, what is up to everyone is how he or she responds to them; the nation, state, and county are in a time of transition; the new normal in terms of funding is focusing difficult discussions about values and priorities; and he is sure Brevard County’s will be no different.  He went on to express his appreciation for the Board’s time and leadership; and he believes everyone is all here at this time for a particular purpose.  He expressed appreciation to the Constitutional Officers and budget staff for their hard work and dedication; he stated to all County employees, that although this transition is as painful as any previously gone through, he appreciated their continued professionalism and service to the community; the budget clouds will part and the sun will come out, not only for them, but for the entire community; the best days are ahead of all; and he is honored to have the chance to be Brevard County’s County Manager.

 

Chairman Bolin expressed appreciation to all who put the budget together. She inquired if the Board has the budget books to go through individually.  Mr. Tipton stated as the Commissioners go through those, please know staff is available for questions and to help with the discussions that are ahead. 

APPROVAL TO MOVE TENTATIVE MILLAGE AGENDA FROM THE JULY 27, 2010 MEETING TO THE AUGUST 3, 2010 MEETING

Commissioner Infantini inquired if the Board should approve the tentative millage on July 27, 2010 instead of putting it off until August 3, 2010, because the Board will be meeting on July 27th.  Commissioner Fisher advised he has a conflict.

 

The Board approved moving the Tentative Millage Agenda from the July 27, 2010 meeting to the August 3, 2010 meeting to allow all Commissioners to be present.

 

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APPROVAL OF COMMUNITY REDEVELOPMENT AGENCY WORKSHOP

The Board approved the Community Redevelopment Agency Workshop on July 15, 2010 at 1:00 p.m.

 

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SAN SEBASTIAN WATER, LLC ABANDONMENT/PETITION FOR RECEIVER

County Attorney Scott Knox advised, Dick Martens, Utility Services Director, received a notice from the San Sebastian Water, LLC that they were no longer going to provide service; it would abandon the utility within  60 days from the date of the notice, which is another 35 or 40 days away; once that notice is received by the County, it is required to file a petition for a receiver to be appointed; and the only issue is if it should be the County or some other individual.  He added the County would file the petition, the judge would appoint a receiver; if it is the County, it would take over the system and try to put it back into working condition; and it can either be sold, leased, or it can operate the utility in the future.

 

Chairman Bolin inquired if the County takes receivership in the utility, would it have the expense to bring it up to the quality it should be.  Attorney Knox replied it may be the County's expense, Mr. Martens can speak to how much that may be, but the County also has the ability to move forward and get rate increases; and stated these folks have not had a rate increase since the mid-80's.

 

Dick Martens, Utility Services Director, stated the system is apparently under funded; their revenues are half of their operating expenses; it is a single owner who is going bankrupt; and he walked away from it.  He went on to say they are collecting roughly $13,000 to $15,000 a year; their expenses are double that; it is a small utility; it serves approximately 50 customers; there is an additional 50 houses in the subdivision that could possibly connect but have not; and there is another maybe 50 lots that are undeveloped.  He stated they have approximately $75,000 in outstanding debt right now for services to operate and maintain the plant; another $7,500 in repairs that have been identified; and once the County is appointed as the receiver, it would put it in the position to recover any investment it makes down the road and give it the option to either sell to another PSC regulated investor-owned utility; however, it is an excellent opportunity for the homeowners to establish a co-op to own and operate the system themselves.  He advised there is another similar system in the County.  He stated with the financial status of the utility right now, and the fact that all of these houses, if not the vast majority of them, have private wells, there is not a significant difference between the private wells and the water this utility is providing; his concern is he does not know if it is a buyable utility financially in the future; if it is going to be viable it will be because the residents want it; and the first step is receivership.  He went on to add that the Board has an obligation to either be a receiver or appoint a receiver according to Florida Statutes; and that will provide the mechanism to present these customers with the options and move it forward. 

 

Commissioner Nelson inquired if the Board would be required to vote on a rate increase.  Mr. Martens responded as a receiver it would adopt the rates of the Public Service Commission as an interim rate.  Commissioners Nelson inquired where the money would come from to do the improvements; with Mr. Martens responding the revenue for the improvements can only come from the residents; and stated the desires of the residents to maintain the system is the key to the future.  Commissioner Nelson inquired if they all have wells.  Mr. Martens reiterated all of the houses were built before the water system was constructed, so they all have wells.

 

Chairman Bolin inquired if it will be an additional financial burden to the County for the improvements; Mr. Martens responded not without separate action.  Mr. Martens added if the residents are not willing to participate and run the system, this will not be a economic viable utility.

 

Attorney Knox stated the utility is abandoned and the residents will be there with no water at all; and if the Board does not move relatively soon, it will be in a position of not being able to fix the problem before the operator goes away.

 

Commissioner Fisher inquired what happens if half of the people get onboard and the other half does not, and if the other half who are on the system would have to pay double rates.  Mr. Martens responded affirmatively. 

 

Commissioner Nelson stated the County is going to bail out the utility company.  Mr. Martens advised the Board will have the opportunity to recover any money it invests in correcting the system.  Attorney Knox advised this is an interim step to keep from stopping the service all together. 

 

The Board authorized the County Attorney to file a Petition for appointment of the County Utility Services Department as receiver for San Sebastian Water, LLC.

 

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APPROVAL OF INTERLOCAL AGREEMENT WITH THE CITY OF PALM BAY FOR LEGAL SERVICES

County Attorney Scott Knox stated when the budget presentations first began, he came to the Board and expressed the possibility that the County Attorney's Office could provide its services to local governments who might be interested in obtain those services; the first approach they have had in this regard is the City of Palm Bay asked if the County Attorney's Office would provide its Special Magistrate's services for code enforcement cases; in exchange, it would also be willing to provide services to the County in the same capacity; that would save the County approximately $14,000 per year, which is not much, but it is a start towards the three percent improvement they are trying to obtain for the County Attorney's budget; and that is what is being presented, and it is up to the Board what it wants to do.

 

Commissioner Fisher inquired if Stewart Capps is the County's Special Magistrate.  Attorney Knox responded affirmatively.  Commissioner Fisher inquired if Mr. Capps would extend his services to the City of Palm Bay.  Attorney Knox advised the County would terminate his services as he is under a 30-day termination clause in his contract; then that $24,000 paid to Mr. Capps per year would go toward whatever it costs to have the City of Palm Bay perform those services; and in turn, the Board would provide a County Attorney to do the City's Special Magistrate services.  He advised the net is to take away the outside payment to the private counsel.  Commissioner Fisher inquired if there is a conflict with the City doing the County's Special Magistrate services and vice versa.  Attorney Knox replied no. 

 

Commissioner Anderson stated the City of Palm Bay, like the County, has a code enforcement board; and inquired how often the County's services would be needed.  Attorney Knox responded  approximately $14,000 worth, whatever that equates to in time.  Commissioner Anderson advised he is more comfortable with this whole thing; it has always been his desire that the County move towards a code enforcement board to reduce costs in that respect; and he is not going to support this. 

 

Chairman Bolin inquired if the Board would like to put this is item on another meeting for further discussion. 

 

Commissioner Infantini inquired if Mr. Capps was told about this or did he read it in the newspaper.  Attorney Knox advised his office did not call Mr. Capps to tell him he was not wanted anymore, because that had not been decided by the Board yet.  Commissioner Infantini stated Mr. Capps seems to be doing a good job.  She stated she is not inclined to switch. 

 

The Board tabled consideration of Interlocal Agreement with the City of Palm Bay for the provision of Special Magistrate and other legal services relating to Code Enforcement matters to a future Board meeting.

 

 

Attorney Knox advised, the City of Palm Bay does need someone to come down to its meeting next week; and the City asked if one of the Assistant County Attorney's could do that.  He went on to state it can be done as a County thing or as a private thing and do it outside of business hours. 

 

Commissioner Infantini inquired why the City does not contact Mr. Capps.  Attorney Knox advised the City asked the County to do it. 

 

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DISCUSSION, RE:  DEPARTMENT OF REVENUE’S REQUEST FOR INPUT ON PROPERTY APPRAISER’S BUDGET REQUEST

Commissioner Infantini advised a decision must be made by July 15th on this item; she is not comfortable with the Property Appraiser's budget; just as the County is cutting back 10 to 15 percent, the Property Appraiser should; according to the Value Adjustment Board, the Property Appraiser employees continually say they do not do many things anymore; and all she has heard is what that office is not doing anymore.  She added she cannot see how his budget is so high when there are so many things the employees do not do anymore.

 

Commissioner Anderson inquired if it can be discussed Tuesday; he was at the last VAB meeting and all that was said was what the Property Appraiser's Office was not going to do for the VAB anymore; and there should be a reflection on its budget.

 

County Manager Howard Tipton stated the Board does have time; staff can email the concerns and suggestions of the Board to the Property Appraiser's Office; and he has a copy of the Property Appraiser's budget.

 

The Board tabled discussion on providing input to the Department of Revenue regarding Property Appraiser's budget request to the July 13, 2010 Board meeting.

 

 

The Board reached consensus to adjourn the meeting at 4:30 p.m.

 

 

 

ATTEST:                                                       __________________________________

                                                                      MARY BOLIN, CHAIRMAN

                                                                      BOARD OF COUNTY COMMISSIONERS

___________________                                BREVARD COUNTY, FLORIDA

SCOTT ELLIS, CLERK