The Board of County Commissioners of Brevard County, Florida, met in special session on April 13, 2000, at 1:00 p.m. in the Government Center Florida Room, Building C, 2725 Judge Fran Jamieson Way, Viera, Florida. Present were: Chairman Nancy Higgs, Commissioners Truman Scarborough, Randy O'Brien, Sue Carlson, and Helen Voltz, County Manager Tom Jenkins, and County Attorney Scott Knox.

DISCUSSION, RE: PINEDA CAUSEWAY EXTENSION

Chairman Higgs stated the Pineda Causeway issue will be discussed Tuesday night; there seems to be some expectation among citizens that the agenda item is a final decision by the Board; she wants to be clear with the people that the agenda item talks about something other than a final decision; and it is a preliminary meeting to discuss initial options, listen to the public, and give staff direction in regard to development of those options. She noted that is what she reads on the agenda item; and if there is something else, it needs to be communicated so the public does not have an unrealistic expectation.

Commissioner Carlson stated the understanding is that there are going to be various options provided; and direction will be, in part, to eliminate some of the options and then go forward to get the engineering on those options that the Board is interested in, without making a clear-cut decision on anything.

Chairman Higgs stated she has an idea of an option that includes some use of a vacated right-of-way; it might have some impact in regard to looking at property owned by the Pineda Shopping Center; Commissioner Carlson has worked hard with the community in trying to come up with one plan that is acceptable to everyone; and at this point, the County is not there yet. She requested the County Manager and staff review the option that has some impact on the Pineda Shopping Center and some use of the vacated right-of-way of the Pineda Causeway. Commissioner Carlson advised staff will be reviewing all the options.

Chairman Higgs stated she is expecting a fairly good size crowd; in order to manage it appropriately, she will stick with the time frame; and the Board could allow 10 minutes to speakers who are representing defined groups and three minutes to individual speakers.

Motion by Commissioner Scarborough, seconded by Commissioner Carlson, to approve ten-minute time limit to speakers representing defined groups and three minutes to individual speakers concerning the Pineda Causeway issue on April 18, 2000, at 5:30 p.m. Motion carried and ordered unanimously.

DISCUSSION, RE: FENCING AT GOVERNMENT CENTER

Commissioner Voltz stated she had a clarification on a motion that was made on Tuesday regarding the area that was fenced off; and inquired is the County going to allow parking there now. Commissioner Carlson responded there was no action.

Commissioner O'Brien stated the Board took no action; therefore, whatever is presently in place is exactly how it is. Commissioner Carlson stated the fence separates the Fire Department from the commercial sector, which is what the Sheriff wanted; nobody trespasses anyone else and they just use it; and the intent from the Sheriff was to have the delineation for their own security. Commissioner O'Brien stated the issue is also the parking of vehicles in such close proximity to the Fire Station, and it could impede the Fire Department to open the doors and get going; with Commissioner Voltz responding not in this area. Commissioner O'Brien stated government property should not be used as a parking lot for anybody; with Chairman Higgs responding Commissioner O'Brien can bring the item back again, if necessary.

DISCUSSION, RE: ECONOMIC DEVELOPMENT STRATEGIC PLANNING

Deborah Pavlakos, representing Economic Development Commission (EDC), stated on January 20, 2000, Lynda Weatherman presented the Strategic Plan; there were some items that needed additional information, including clusters; and Ms. Weatherman is going to go into that. She noted the EDC was asked to put together a community plan; Ms. Weatherman will briefly review items in the plan; such plan is broad; and commended Ms. Weatherman and her staff for putting it together.

Lynda Weatherman stated this is the EDC's Strategic Plan to meet its goals for the next three years; these are the direct responsibilities and roles of the EDC; the EDC redefined clusters; Page 8 includes Brevard County groups; and these clusters are designed to follow a two-digit SIC Code in a certain concentration of labor force areas. She advised those clusters are defined similar to the acceptable measures of the American Economic Development Council in the cluster categories that it developed; they are broad in nature, but they also go beyond the traditional manufacturing cluster that the EDC focused in on; the EDC has discussed some background on each cluster; in doing a cluster analysis for a specific sub-industry within the industry sector, such as fiber optic manufacturing, there needs to be a certain amount of critical mass occur; and Brevard County, within its economic makeup, has not developed that critical mass of those particular sub-industries, which have been referred to in the past as emerging clusters. She stated the County needs to be aware that these will develop over time as its clusters and industry mix develops; in the original Strategic Plan presented in January, 2000, Page 20, Economic Analysis Section, it refers to the need to follow and develop upstream and downstream analysis; an upstream and downstream analysis is the EDC's way of acknowledging that it does not have the industrial base and the critical mass there to do a detailed cluster analysis; and before the County starts doing upstream and downstream analysis, it needs to know what its industry base is. Ms. Weatherman stated the other way of finding information on the inner workings between companies in Brevard County is anecdotally; and the reason one wants to understand clusters is the impact it has if a company moves out. She noted one of the goals that was shared with the EDC is to aggressively market the correct cluster of industries or those linkages within those targeted industries; the EDC has addressed industry classifications; and the County has what it needs in regard to having information to go out and market those sub-industries within the general classifications.

Commissioner Scarborough inquired how does the County identify, outside of the classification, those industries that would be considered clustered because they are very fundamental to support; with Ms. Weatherman responding the list which she will distribute to the Board answers that question. Ms. Weatherman advised what the County wants to target are those industries that will complement its cluster; and the list contains industries included within the general clusters. Commissioner Scarborough noted Brevard County needs to look beyond just the classifications as to is it supplied and does it have that relationship; perhaps the cluster should not be defined by the County, but by the companies who are utilized; they are in the cluster if the targeted industry says they are in the cluster; and all they need is certification from the larger corporation that they are needed, and the industrial classification is not looked at. Ms. Weatherman stated some of the industries listed have different classifications, so they fall within different clusters; and they will be captured when the County and EDC concentrate on aviation industry and follow it down the food chain with a company that is involved in two different industries through its SIC classification.

Commissioner Carlson stated one of the dynamics that needs to be included in the clusters and the philosophy is the economic stability of the region, and if there is a recession, how are they going to feed off one another and inter-relate with each other in the hard times as well as the good times; and that is what she was seeing when she looked at the cluster arrangements. She noted she asked Ms. Weatherman about the cluster analysis and if the County is going to use it on tax abatements; Ms. Weatherman has come up with something in an effort to start the process to identify the clusters; the County knows what the clusters look like, but they do not have that critical mass where it comes to services and other types of auxiliary services; and it does not know the downstreams and upstreams.

Commissioner Voltz stated it will come in time when Brevard County begins to get the larger companies in, and the smaller companies begin to move in and feed their industry.

Ms. Weatherman stated the reason one does a cluster analysis is to understand their economy and the inner workings of it to market the product better, and to understand that within the industrial base there is the infrastructure that would support that particular industry; the SIC Codes are one way of looking at clusters; with the Florida High-tech Corridor, there is some analysis being done along the region from Tampa/Orlando to this region; and there is the critical mass that exists. She advised the USF School of Economic Research is very interested in looking at this cluster analysis as it shows the economic dynamics and inner workings between the whole region.

Commissioner Carlson stated the County is going to accumulate the information to get the cluster analysis; and inquired does it wait for accumulation of such information to reach critical mass or should it pinpoint a particular industry it wants to examine more definitively in a cluster analysis project. Ms. Weatherman responded to do an upstream analysis of all the industries is very time consuming and a lot of work; what the EDC would do both anecdotally and analytically would be on the IT merging cluster; it would get the data with the IT Brevard County and an industry survey which is done every year; and the most successful in return on investment of time and being able to use the information adequately is to focus on the IT which is done in any economic development program to interface with the market, and understand the dynamics of it and the needs.

Ms. Weatherman stated concerning the conference with NASA and the role of Brevard County at the table and playing a part, the EDC wrote a letter to Lieutenant Governor Brogan indicating NASA needs to understand the role of the County and to be at the table in future meetings when discussing long-term roles of the community and what is going on at the Space Center; and one of the things the EDC is doing with Brevard Community College (BCC) is a survey of the graduates which asks them where they are going or if they are going to stay here, and if they think they will make the money they want to make. She advised Page 43 of the Strategic Plan states, "As mentioned in the preface, economic development is a multifaceted program, which requires input and commitment from private and public sectors. However, a truly diversified well-developed community must also concern itself with the deeper issues of social justice, equity, and environmentalism. An overriding and constant concern must be focused on the need to avoid the 'digital divide.' Otherwise, it is too easy to promote a business as usual approach and not account for the inequities in wealth that sometime occur in fast growing, high tech driven economies. This report must be a part of the whole which focuses on decrease in low-income housing, school drop out, equitable land uses, environmental protection and overall quality of life." Ms. Weatherman stated a suggested whole is the "Positioning Brevard for the Future, A Road Map"; Page 1 states, "It is not the culmination of 'a process', but the beginning"; the Report is divided into three parts; the first is "Part I, Positioning Brevard for the Future"; basically what the EDC is doing is sharing with the County some of the phenomena that are going on in community development, including that jobs will follow people, E-commerce will

have an impact on the school system, and it has to look at its strengths, but also its weaknesses, which need to be addressed; so Part I talks about key community access, key economic challenges, and long-term goals. She noted Page 7 includes the regional economy; it shows the dynamics of how everybody is involved in the process of creating a good sound economic engine, and the importance that with the successful implementation of factors, such as human capital, infrastructure, financial capital, government policies, business assistance, and workforce development, an economy will create good jobs and wages, thereby creating a good quality of life.

County Manager Tom Jenkins inquired where does research fit in; with Ms. Weatherman responding human capital.

Ms. Weatherman stated Part II includes the "Action Plan" which identifies six strategic goals, as follows: (1) Monitor our position as it relates to Statewide/National Rankings; (2) Strengthening Land and Infrastructure Capacity; (3) Future Workforce Preparation; (4) Enhancing the Entrepreneurial Base; (5) Promoting the Enhancement of Arts, Cultural and Outdoor Development to Provide an Improved Quality of Life; and (6) Create a 21st Century Public School System. She advised Part III includes "Moving Forward" and explains how to implement the Plan, the continued role for Team Brevard or a selected steering committee, and promoting the Plan. She stated Page 38 shows Step A as the Task Force; the Board of County Commissioners appoints the Steering Committee; within the Steering Committee would be other task forces to have input; and the community may want to consider a leaders forum to bring in somebody from the outside who can help with clear eyes and say this is what has taken place in other communities. Ms. Weatherman stated the Steering Committee would report to the Board of County Commissioners; the Board would look at certain benchmarks; and the benchmarks are related to the different strategic goals that can be defined more clearly. She noted the EDC also gives some suggested timeframes for the strategic directions; and the Report is a living document and first step in a community plan that the EDC was requested to prepare.

Commissioner Scarborough stated the Report is worth pursuing; and it is the one thing that Brevard County needs to hear from the EDC, that it is not only what the EDC can do for the County, but what Brevard County should be doing as a community.

Chairman Higgs stated it was an excellent presentation of the many different aspects of economic development that fall under the Board's watch and things that it can initiate, not only discussion of, but some action; she understands it is not intended to be a final product, but a start; and it does an excellent job of getting Brevard County headed down the road.

Commissioner Carlson stated she would like to know more about what the EDC would expect in a leaders forum as a first step to the process. Ms. Weatherman responded she visualizes an outside person coming in and explaining what has happened in other areas, including problems that have occurred and how to address them; and such person could help guide the County through what other communities have done. Commissioner Carlson stated it is on target to what the County should do as a first step; and it should make sure it includes all the industrial leaders as well as schools, Commission, and other governmental bodies.

Chairman Higgs inquired should the County bring into that conversation homeowners and a cross section of the community; with Ms. Weatherman responding they may be included with the task force. Commissioner Carlson stated the experts need to first get together on the economic issues as it is the driving engine for the County; and then the specific comments from the community can be focused on. Ms. Weatherman noted it could be done collectively as a group and then break off into the task force after that; but the County can look to the person who has worked with the dynamics of large groups and communities. Commissioner Carlson stated the County has used the experts and done the leadership side, and then done the community version; and the information has been brought together. Ms. Weatherman stated the key will be the steering committee; and such committee must have the acknowledgment of the Board.

Commissioner Scarborough stated the quality of the community is one of the things the County has to sell; if it brings in better jobs and people want to come here with more money, it has a higher tax base; it allows the County to do more without increasing the ad valorem taxes; and perhaps the suggestion of the steering committee and the proposed visioning council can be combined. He noted he would like to include a representative from the Port, Kennedy Space Center, and senior citizens; Brevard County's goal should be to be the goal setter for the entire country; and it needs to look at what it needs to do to be Number 1.

Chairman Higgs stated the County could bring a group of leaders together, including a cross section of the community, and someone from the outside who is a capable facilitator; the mission is to understand that the County needs, as a community, to embrace the goal of being the best it can be; the group could determine who is involved and what is the structure; and the group would bring that task back to the Board to determine how it can assist in facilitating that.

Commissioner O'Brien stated he agrees with creating only one group instead of having duplication; it is very important to have clarity of the roles in this leadership forum; inquired how can the Board and the leadership forum have direct interaction with the School Board concerning the economic base of Brevard County and its future for the next 20 years, including making the County Number 1 in education in the State of Florida; and stated a higher benchmark needs to be set.

Chairman Higgs inquired is the EDC a part of the process in selecting the new school superintendent; with Ms. Weatherman responding it was asked to participate in the focus

groups to provide input. Ms. Weatherman stated in one meeting she sat through with the School Board, it discussed selection of the school superintendent being a School Board decision; and she does not know to what degree the public will have input in it.

Commissioner Voltz inquired how does the Board take all the information Ms. Weatherman has brought together and turn it into a forum. Ms. Weatherman stated if the Board wants to go forward with a leadership forum, the EDC could contact the consultant it is thinking about. Commissioner O'Brien stated the Board should have the EDC develop a list of leaders who would volunteer; the list of volunteers can include what part of the clusters they are, to look at specific parts of the economic engine in Brevard County; and it could include top bankers and someone who can generate venture capital as the County talks about creating and expanding industry here. Commissioner Scarborough suggested the County go beyond just the industrial examination; with Commissioner Carlson responding she believes it is. Commissioner Carlson stated the leaders forum is going to provide the basis and momentum justification for the Board to make the decision concerning a steering committee; and it can lay out its task and monitor it in terms of the strategy.

Chairman Higgs requested the EDC work with Commissioner Carlson, who is on the EDC's Executive Board, and the County Manager to come back to the Board with an outline of how to get the leadership forum moving; stated she assumes the County would need to make some contribution in a financial sense to get it going; and she believes there is a unanimous acceptance of the concept that the County needs to move down this roadway.

Discussion ensued concerning fiber optics; quality education; concurrency issues; libraries; information concerning the school system, including students per classroom, SAT scores, and elimination of modular classrooms; venture capital; and high tech industry.

Chairman Higgs stated all of these things play into economic development and the County can bring together a group of people to work on it. County Manager Tom Jenkins stated he, Ms. Weatherman, and the Board's representative on the EDC can come back to the Board with an approach as to how to accomplish all the ideas. Commissioner O'Brien stated all these plans and strategies give the County a concept; but a concept does not have solid results; and it needs to get down to specific goals.

Chairman Higgs requested Mr. Jenkins contact the Superintendent of the School Board, as the School Board is a critical part of this mission, and discuss what the County is doing; and report back to the County Commission. Mr. Jenkins advised the County has previously established approximately 63 measurements that deal with the economy, health, environment, transportation, education, and social needs to the community; and some of those issues are being addressed.

Franck Kaiser, Assistant EDC Director, stated the EDC has included some basic background information about tax abatement, the kinds of businesses in the past that have been considered, the purpose of the ad valorem tax abatement, and the background. He advised in November, 1994, the electors of Brevard County voted in favor of authorizing ad valorem tax abatement; since 1997, the County has been giving tax abatements to industries; and the data compiled is based on a three-year period, 1997, 1998 and 1999. He stated there are 15 companies that currently have tax abatements for those three years; there were more companies that were granted abatements, but they have been revoked; in those 15 companies, 2,490 jobs have been created; and the actual tax abatement to date is $508,000. Mr. Kaiser stated the investment at this point is $204 per job in tax abatement to create almost 2,500 jobs in Brevard County; there is a list of 15 companies there that have received this benefit and incentive to expand or to locate here; the projected new jobs in those abatement applications were 1,940; and the actual jobs created are almost 2,500, so it is an incentive that works and has gone beyond the projection that those companies had made. He advised the average tax millage Countywide is approximately 19.6 mills; the average tax millage not abated is 12.4 mills; so the average tax millage abated throughout the County is only 7.1 mills. He stated not taken into account is the property already on the tax rolls; when a company receives a tax abatement, if they go into an existing building that is already on the tax rolls, those taxes are not abated; and the only thing they get abated is the improvement in the facility and the personal property.

Mr. Kaiser stated various Brevard County agencies not subject to abatement are listed, including the schools; all the companies that receive abatements are paying 100% of their school taxes, as well as several others, including the library district; and the taxes that are not subject to abatement include General Fund and a few Municipal Service Taxing Units (MSTU). He noted from 1997 to 1999, the total County ad valorem tax revenue during that period was $324 million; the total revenue for the abated companies, which is the revenue those companies have paid in taxes, is $2,874,000; and the actual tax abated was $508,000 to date over a three-year period. He advised the total revenue abated to date is .015% of the entire revenue base in the County; and the return on investment to Brevard County for having to supply these abatements to create those 2,500 jobs is $5.65 that has been paid in taxes to the County for every dollar that has been abated by those 15 companies. Mr. Kaiser stated in order to receive a Qualified Targeted Industry (QTI) tax refund from the State of Florida, which is the State's major incentive to create jobs, the local community has to supply a 20% local match; most communities provide that in the form of cash; and Brevard County has elected to use the ad valorem tax abatement to provide that local match in lieu of the cash. He noted during 1997, 1998, and 1999, five companies have received these QTI awards from the State of Florida and returned to Brevard County industry over $1.5 million due to the County supporting the QTI Program with its Tax Abatement Program; the EDC proposed a targeted industry list that has

been narrowed down in scope from the State's targeted industry list to those types of industries that feed the industry clusters; and behind the attached list are the tax abatement guidelines.

Mr. Kaiser stated the most important concern of the companies nationwide is labor force; the next driving issue is available building space; and it is wonderful to have the incentives available. He advised the Tax Abatement Program is not 100% tax abatement for "x" number of years; it is a partial tax abatement as an incentive to get jobs created here; and in looking at all the facts gathered and presented, it shows the return on investment for the County of 500% which is not a bad return. Mr. Kaiser stated the County has kept the Program under control; and the guidelines are working very well.

Ned Buffington, representing Brevard County Manufacturers Association (BCMA), stated his basic statement would be that if it is not broke, don't fix it; it seems to be working very well with the point system; and the return on the amount of abatement that has been given is phenomenal.

Bart Powell, Chairman of the BCMA, stated the Tax Abatement Program is good one; it has had a good return on investment; it gives tax abatements to the people that Brevard County most desires to have in the County; and the BCMA would like to see the Program continue as it is presently.

Commissioner O'Brien stated he is supportive of the Program and advised of the good returns on investments. He reiterated that a business cannot receive exemptions from school taxes or water management district taxes; a business must pay taxes that were voted by the voters of a city or a county to pay for bond issues or the special tax levies authorized by the voters of a city or a county; exemption can only be for the improvements to real property and tangible personal property; and the land on which the new or expanding business is to be located will still be taxed and taxes must be paid on it. He noted a city can only exempt its taxes and a county can only exempt its taxes, and all other taxes must be paid; the abatements are very important; the EDC has been very effective; and Brevard County has been able to get 2,500 jobs here that may not have been here without the Tax Abatement Program.

Commissioner Scarborough inquired does the EDC have an invitation to bring forward any industry at any time it finds it to be significantly important to the development of the industry, regardless of whether or not it meets the criteria. Ms. Weatherman responded the EDC believes the Ad Valorem Tax Abatement Program, as it is in place right now, is a fine and effective tool; there are thresholds embedded in the State Statute already; the County has, within its Ordinance, probably the strictest guidelines of a tax abatement program in the State and possibly the Nation; and the EDC would rather not have it limited to certain targeted industries as the County may find itself two or three years down the road applying abatements to companies looking to relocate, and ignoring existing companies that happen not to fall in those "targeted industries" that are important.

County Manager Tom Jenkins stated in the past Ms. Weatherman has recommended deviations from the percentages with past companies because of unique situations and extenuating impacts.

Commissioner Carlson stated Ms. Weatherman indicated she is worried if the County does not have an broad brush approach to the incentives that it is going to miss out on those existing industries that are expanding; but if the County does its homework, it should have all those capsulated in clusters that it defines, which is part of the ongoing process of defining the clusters.

Ms. Weatherman stated if the County is going to limit to any kind of industry list, it is going to find itself denying an existing industry a tax abatement because they do not meet those clusters. Mr. Jenkins stated the County could have the list of targeted industries for new businesses and a different criteria for existing businesses.

Commissioner Scarborough stated he does not want to put blinders on with this issue. Mr. Kaiser stated the EDC would prefer not to have the targeted list; on the first page under Table of Contents, it refers to the Targeted Industry List Recommendation as he received indications from the Board that it might want to target some industries; but he does not recommend the County do this.

Commissioner O'Brien stated the Program Guidelines presently in place are not broken; the County should not be giving incentives to a specific group of companies, whether it wants to cluster or not; diversity is what it is searching for and needs to accomplish; and he supports staying with the Program Guidelines and looking at where the County may want to improve such Guidelines. He noted he does not want to change the system and have incentives only for targeted industries or selective companies; and Brevard County forgets sometimes that the small companies that come in with 10 employees and a $1 million investment can grow big in five to 10 years.

Mr. Kaiser stated the EDC has identified certain industries it is recruiting or assisting in their expansion; he agrees it does not want to deny the other companies for the diversity of the economy; it is not recruiting call centers; however, it has ended up with some good call centers which are providing jobs for a certain segment of the labor market that needed those jobs; and they are good jobs that are helping support families. He stated if the Guidelines are left in their present state, the call centers will not be excluded; and the EDC will continue to target the industry clusters it has identified in its Strategic Plan that are important to the economy. Commissioner O'Brien advised of letters from various companies which decided to come to Brevard County due to its Tax Abatement Program and incentives.

Chairman Higgs stated there are 15 companies with abatements of $508,000; the companies that have received abatements since 1994 have received less than $30,000 a piece; she does

not believe the determining factor for Nokia, Realm, Northrop Grumman or Bombardier was $30,000; but $508,000 to the coffers of the taxpayers of Brevard County is a significant dollar amount; and she does not think the determining factor in these businesses expanding or coming to Brevard County was the tax abatement. She advised the County has to have a good community as the road map shows; to have that, it needs to have all those factors it has discussed in terms of human capital, trained workforce, and a good infrastructure; and those things are what determine that the businesses come here, not a $30,000 tax abatement for a multi-billion dollar company. Chairman Higgs stated she knows it is a nice tool and an incentive, but the bigger tool is the quality work force and the other things the County has identified; if Brevard County is going to attract businesses, it has to have a high quality community and a fair tax structure; in general, the perception is that the abatement of taxes to businesses creates an unfair tax structure; and if the County wants people to invest in the community, the average taxpayer is not happy paying anything, and the last thing they want to do is feel they are being unfairly burdened more than they should be. She noted there are some occasions where the County can use abatements for particular cases, so she is not in favor of taking it totally out of the arsenal, but on a day-to-day basis, it should not be giving them; and it needs to keep it in the arsenal for only those very special occasions where it could pull it out to lure a very major type of company.

Mr. Kaiser stated he agrees that perhaps the tax abatement alone was not what made the difference for some of these companies, but for five of the companies, they would not have received $1.5 million in QTI funds without the ad valorem tax abatement contribution and some other State tax incentives; with Chairman Higgs responding that is an important point. Commissioner O'Brien stated under the Tax Abatement Program, Brevard County becomes a partner with the entire community; it is enhancing its community by having the jobs here; and a lot of the jobs could have gone elsewhere.

Mr. Dwight, representing the EDC, stated he has also chaired the Brevard County Workforce Development Board; the $30,000 average that the companies are saving is not the profit and loss statement they are looking at; they are putting any money they are saving into job training with those workers, and job retention is the Number 1 issue with all of the manufacturers; and the major goal has been to keep the employees they have, keep re-training them, and hopefully put them into higher paying jobs.

Commissioner Voltz stated the Board needs to remember that the citizens of Brevard County passed this and said it was all right to do it; when the County looks at the $508,000 versus the $2.8 million it got in, it had nothing to start off with; and the $2.8 million is a lot of money it did not have versus the $508,000 it never did see to begin with. She stated the Tax Abatement Program is a good one; it needs to be a stable one; and if there is not stability in the Program, the EDC is not going to be able to do the job the County has tasked it to do.

Commissioner Scarborough stated Brevard County wants to have a very active EDC because opportunities can be lost; it has an opportunity to be unique in Florida and the Nation; it needs to have an EDC that is unique; he would like to have a degree of certainty, but does not want to say this is it; and if it needs to do something different, the EDC can bring it to the Board. He noted if the County needs to give a direct cash incentive, it is legal; it wants to make this work because the long run is not just what is in the County coffers; if Brevard County is the richest County in the State and one of the richer Counties in the country, it does not have to worry about its ad valorem tax millage as it is going to take care of itself; and if it takes care of good jobs and those high paying people, it will have a good community. Commissioner Carlson stated the public wants to make sure if the County is going to offer a company an incentive, that it has proven justification as to why it is going to give them that and what it really means in terms of the multiplier affect and all the other things; and if the EDC can provide, on future abatements, the clear and distinct justification for that abatement, there may be more consistency from the Board, plus less feedback from the public and less abuse.

Commissioner Voltz stated the County has limited its EDC and expected so much more from it; the EDC may not feel free to offer cash or land; and it should, as it is the way the County is going to be aggressive and get the jobs it needs here.

Ms. Weatherman stated when the abatement referendum was passed, one of the first things the EDC asked was to have included a return on investment and an economic impact analysis done; that was done at the EDC's suggestion as it wanted to show that there is indeed a return on investment; it is proud of the Tax Abatement Program; and such return on investment to the community will better it in the long run.

Discussion ensued concerning return on investments, tax abatements, investment analysis, targeted industries, international space station, SERPL, Harris Corporation, Boeing, incentives versus entitlements, mobility within the workforce, program guidelines, Blueprint 2000 and Beyond Plan, QTI projects, strong labor base, infrastructure, and quality of life.

Motion by Commissioner O'Brien, to approve the following changes under Program Guidelines: (1) Payroll - four points to an employer who pays an average of $26,000; (2) Capital Investment - $150,000 to $1,000,000 worth one point; (3) Scoring Total Points - eliminate the four to five points and six to eight points, with a minimum of nine points to qualify.

Commissioner Scarborough requested the motion include in the Program Guidelines if an individual has documentation indicating the business is going to be critical in bringing in other key industries, that such Guidelines can be adjusted; and stated he will second the motion.

Chairman Higgs called for a vote on the motion, as amended. Motion carried and ordered; Commissioner Higgs voted nay.

The meeting recessed at 3:40 p.m. and reconvened at 3:55 p.m.

ELIMINATE TRANSFER OF FUNDS TO CULTURAL ALLIANCE, RE: GRANTS TO COMMUNITY BASED ORGANIZATIONS (CBO)

Commissioner Voltz stated her office has received telephone calls from people saying she was going to take $75,000 out of Brevard Cultural Alliance (BCA); and she does not know where that statement came from as it was never her intention to do that.

Motion by Commissioner Scarborough, seconded by Commissioner Voltz, to eliminate transfer of $75,000 to Brevard Cultural Alliance for grants to the Community Based Organizations (CBO) budget for disbursement. Motion carried and ordered unanimously.

Kay Burk, representing BCA, expressed appreciation to the Board, on behalf of the representatives present, for the motion to eliminate the transfer.

DISCUSSION, RE: GOALS FOR YEAR 2000

Chairman Higgs stated a number of goals have been discussed; and the Board needs to review them and try to come up with some consensus.

Commissioner Voltz stated on Objective 2, Improve the Health of Residents, (B) Increase Healthy Kids participation by 2,000 children; if the County does that, it is going to cost $750,000 in matching funds; and there is no way it can afford it. She noted what was suggested was to cap it at what it is right now, and not take any waiting list or put more kids on it when it comes in until the County can get a handle on funding issues; if it does not get the $250,000 it needs for next year, it is going to have to eliminate approximately 1,000 kids from having insurance; and she does not want to do that. She stated the State has given the County 1,500 free slots; there is no match with that; the County is providing the match with $140,000 for 1,000 kids; and that is where it needs to be left at this point.

Chairman Higgs stated the County can continue to fund current participation level for Healthy Kids; with Commissioner Voltz responding it cannot even fund the current level, unless the Board agrees to add another $100,000. Chairman Higgs inquired has the Legislature made any movement in the ratio of funds; with Commissioner Voltz responding it indicated it would not provide a match.

Commissioner Scarborough stated the Objective is still worthy; it is the funding that becomes the problem; and perhaps the County could say strategies to work to maintain current levels and increase Healthy Kids participation in the future. Chairman Higgs stated she concurs with Commissioner Scarborough's statement on the Objective.

Commissioner Carlson stated under the Head Start Program, there is a waiting list of 300 kids who are not getting day care; there are over 300 companies in Brevard County that are being affected negatively because the low income families with these children cannot find a day care that is cost effective for them; and Barbara Moore asked her if there is a way to assist with the Program. She noted she would like to look at the possibility of assisting the Head Start Program, and reach out to the business community in terms of assisting the families that are being affected, which will be a positive impact on those companies.

County Manager Tom Jenkins stated staff will find the appropriate place to insert it in the goals.

Commissioner O'Brien stated he would like to find out from somebody why both parents in the household have to work and cannot afford to put the child in day care; with Commissioner Voltz responding it is priorities. Commissioner O'Brien inquired why should government subsidize somebody else's priorities. Commissioner Carlson stated one of the reasons they have two-earner families is because they cannot live off of one income; they are living at a very low level as it is and trying to improve their quality of life; even after they have done that, they still do not have enough disposable income to pay for child care; and they end up hurting the company and themselves by taking sick and vacation time, and they are not using it for themselves. Chairman Higgs noted it is also single parents who have no other choice. Commissioner O'Brien stated the County should find out what the majority of the reason for it is; and it is addressing the effect without addressing the cause. Chairman Higgs stated the County has young children and families who need child care; there is not a welfare system that allows people not to work; there is a system that for a limited period of time would allow a single parent to draw some funds; but there is not a choice.

Commissioner Carlson stated the County just finished making an investment in companies, which translates to jobs which translates to families, i.e. the human capital portion; she brought it up because there is a need in the community, and the business community has not stepped forward to fill that need; the County needs to push that issue along to say it has a need out there and companies are suffering because the kids are not in day care; and the parents cannot work for the companies, which impacts its productivity. Commissioner Voltz stated the County needs to take care of the problems it has and then look in the community to see what is going on. Commissioner Carlson stated it needs to go on the preventative side also and work on all avenues. Commissioner O'Brien stated the County has been taking care of it all along, but not going back and looking at the causes; and it is time for the Board to go back and look at the cause. Commissioner Voltz responded it is looking at it through the comprehensive strategy; and it is not ignoring the cause, but looking at it. Commissioner Carlson stated through the efforts that Commissioners Higgs and Voltz are both a part of, the County is going back and analyzing the services it is providing to see if they are the most cost effective way to do it, who is it affecting, and is it a positive thing.

Chairman Higgs stated re-establishing the Crane Creek Drainage Control District under Goal 2, Objective 3.B., may not be where the County wants to go at this point; and with the new stormwater fees in a couple of the communities, it may not be viable at this point. Commissioner Voltz stated to do that District as far as funding is concerned, Chairman Higgs is correct; but she would like to leave it there for right now; and she is waiting for a plan to come back from the St. Johns River Water Management District.

Commissioner Carlson stated taking the 23 goals the County started with and incorporating the Commissioners' goals for the last couple of years is a good start; the overall goals are those goals that are in the Vision Statement; the County has created objectives and strategies; and under the strategies, she would like to see the steps that will get the County to the success of that strategy. She noted she would like to go through the document and have staff come up with a list of any conflicts it may see; there are certain things that need to be re-worded or identify the conflicts; and they may vote on whether the Board wants to keep the strategy or prioritize it in some way. She stated Goal 1, Objective 5, Strategy C, says serve as the fiscal agent/lead agency for the Community Alliance; she is not sure if that is premature or not; the County is going through all the privatization issues; but from what she has been hearing from the Legislative side of things, it will be trying to do a pilot program. Commissioner Voltz stated they are hoping Brevard can be a pilot program for this; there is an issue right now with a possible pot of money it is going to have up there; those monies are going to be there in case what the County does is more expensive than it thought; and the Department of Children and Families is severely underfunded. She noted with a community doing this, it is going to wake the Legislators up in Tallahassee to say this Program has not been functioning for a long time; the people in Tallahassee do not understand what Brevard County is doing on a local level; they have no idea how the policies they make are affecting the County; and when the Legislative Session is over, she would like to talk to Secretary Kearney and tell her about local issues and how what they do affects Brevard County, and how it is not working.

Commissioner Carlson stated Objective 4, Strategy B, relates to increasing the number of visible covered bus stops with benches; she would like to create a plan to integrate covered stops in the current and future system; and it could be steps for that strategy. Commissioner Carlson stated Objective 6 relates to meeting the demand for leisure time activities of residents and visitors, and maintaining and improving recreational facilities; she is an ex-officio board member of the BCA and is also on a group that is looking at a scope of service potentially for a strategy to be written for the BCA; and she would like to include as a strategy to explore revenue sources to improve the cultural activities and those kind of activities that surround the arts. She stated she would like to add on Page 3, "To continue preservation of endangered lands through the EELS Program and other State and Federal sources, and explore the referendum to continue the EELS by capturing new Florida Forever dollars." She noted Goal II, Strategy D says, "Get Florida Power & Light (FP&L) Company to burn gas in lieu of oil within the next three years"; and in terms of conflicts throughout this document, that may require an air quality program to make that happen.

Commissioner O'Brien stated he would not want to go with the air quality program as the cost is extreme and even the Environmental Protection Agency (EPA) has stopped monitoring the air in Palm Beach County, Tampa, and Broward County because the air is clean; the reason Strategy D is included is because the pollution from FP&L's smokestacks is an embarrassment to Brevard County and all the visitors from the Airport see it before they get to the County; the data from Cape Canaveral Hospital points out that their Hospital treats more lung cancer patients and it is the second highest in the State; and most of the people are from Merritt Island and Cocoa, right where the smokestack goes. He noted the data has him deeply concerned; he does not know what action the Board can take to have FP&L Company take that quantum leap more rapidly than it planned; and he would hate to see the County start suing FP&L Company the same way that Florida sued the tobacco companies. Commissioner Carlson stated a step may be to investigate the study Commissioner O'Brien is talking about; with Commissioner Scarborough responding the current language leaves options open to the Board and the County Manager can come back to the Board with implementation ideas.

Commissioner Carlson stated Page 4 includes developing a Smart Growth Program applicable to Brevard County; the County needs to encourage developers, through the County's Land Development Regulations (LDR's) and Comprehensive Planning process, to follow the precepts of Smart Growth; and Strategies B and D might be combined. Mr. Jenkins stated they are separate, but inter-related. Commissioner Carlson suggested the inclusion of implementing the Metropolitan Planning Organization (MPO) Master Plan regarding greenways and trails. She advised Objective 3 includes complete needed environmental capital projects; and suggested Strategy A read, "Support finding new revenue sources to expedite construction of stormwater projects." Mr. Jenkins suggested the language include "support funding stormwater needs"; with Commissioner Carlson responding that is fine.

Commissioner Scarborough stated Page 2, Goal 1, Objective 6, says "To meet the demand for leisure time activities of residents and visitors"; Page 3, Strategy D, states, "Investigate the feasibility of using the Solid Waste site on west U.S. 192 for a location for a four-wheel vehicle recreational facility"; and he wants to indicate that the Board is considering referendums for November, 2000, as response to community initiatives for improved recreational facilities. Mr. Jenkins stated he can tweak the language on Page 2, Strategy B, which currently states, "Increase funding and expenditures for future recreational facilities and maintain existing facilities to their highest level"; with Commissioner Scarborough responding that is fine. Commissioner Scarborough stated Page 5, Goal IV, Strategy A reads, "Regional economic development promotion of Brevard County by identifying with a larger region that is well known internationally"; and he would like to have it more positive to say, "Regional economic development promotion of Brevard County by identifying with a larger region that is internationally known for excellence."

Commissioner Voltz stated Page 4, Objective 3, Strategy A, includes the 50% bonding of stormwater funds; and inquired if it can be placed on the Board's agenda to discuss as it does not bond any stormwater funds right now and there is not enough money to do larger projects. Mr. Jenkins advised the whole package will be coming back to the Board, including how to pay for the stormwater projects. Commissioner Voltz inquired can the possible sales tax referendum include park infrastructure; with Mr. Jenkins responding affirmatively, if the Board chooses to do that. Chairman Higgs advised it has to be a capital project.

Mr. Jenkins stated the Sunset Review every two years was suggested by Commissioner Voltz; the County's Sunset Review process is a very structured process and is an additional task for the Departments to do; and inquired if he can modify it to say that staff would continuously examine all programs to insure that they are still needed and still functioning effectively; but not be required to go through that formalized process every two years. Commissioner Voltz stated that is fine.

Motion by Commissioner Voltz, seconded by Commissioner Carlson, to accept the goals for Year 2000, as revised; and direct the County Manager to begin implementation and expanded report on such goals. Motion carried and ordered unanimously.

Commissioner Carlson stated on the General Book, the October 9, 1998 support document to the Vision 2005 included the 23 goals and what the County is doing to date; and requested it be updated so it will provide the Board with a base line to the effort it is now in. She stated she would also like to see the continuation of the measurement of quality of life, and the outcomes of the goals. She provided information to the Board on a class she attended through the Florida Association of Counties (FAC) called Financial Management and Planning, including information on performance based budgeting; stated some of the things discussed were being able to project into the future what the revenue stream will look like and what it will look like if there is a recession, how the dollars will increase and decrease, and the effect on various programs. She noted there is also information on indicators, such as expenditures per capita and current liabilities; and the right sizing of government and trying to figure out the cost of services and quality of those services is all blended in with the performance based budgeting concept. Commissioner Carlson stated budget policy guidelines are also included; when it comes to budgeting time, she would like the Board to look at the performance budgeting; in contrast to traditional budgeting, the focus of performance based budgeting is on the unit cost of achieving a particular outcome rather than on the unit cost of providing a service; as a result of having this kind of information in the budget, decision makers can base funding decisions on past performance, as well as projected results; and it is aiming toward that cost-effective approach to doing business. She advised the information also includes performance criteria for new programs and performance measures.

Chairman Higgs stated when the County does its budget workshops, it can look at some of these issues.

Mr. Jenkins stated the University of Central Florida (UCF) is doing a survey of county budgets; it informed Brevard County that it is in the top 10% of counties around the United States in terms of budget format; and it was very complimentary about what the County has been doing.

DISCUSSION, RE: BRINGING A UNIVERSITY TO BREVARD COUNTY

Commissioner O'Brien stated the Board requested staff come back with suggestions for a strategy that Brevard County can pursue to entice the Board of Regents or colleges in Florida to expand and grow here.

Mr. Jenkins stated the bill before the Legislature was dramatically modified at the last minute; they are creating a study panel to look at this issue; when the study panel gets formed, the Board could make a presentation before the study committee; but they are not going to create any universities this session. He stated the report will go back to the Board of Regents which will making the decisions.

Chairman Higgs requested the County Manager follow the study commission so the County can keep abreast of it and have representatives follow with every step. Commissioner Voltz stated the County needs to see who is going to sit on the committee and if it can have someone from Brevard County sit on it.

Motion by Commissioner Scarborough, seconded by Commissioner Voltz, to authorize the Chairman to meet with Dr. John C. Hitt, President of University of Central Florida (UCF), concerning bringing a full university to Brevard County, such as a college of medicine, dentistry or aeronautical engineering. Motion carried and ordered unanimously.

DISCUSSION, RE: MANATEE PROTECTION PLAN (MPP) WORKSHOP

Commissioner O'Brien stated the letter from the Florida Fish and Wildlife Conservation Commission indicates it is time for it to pursue alternatives to the current approach which is manatee protection planning; Brevard County and the Wildlife Commission have important roles in manatee protection; such Commission wants to ensure enforcement of those regulations and does not want to directly permit marinas or other boat access facilities; and it remains the responsibility of the Florida Department of Environmental Protection (FDEP). He noted the letter also states Brevard County has an important role with law enforcement, education, land use planning, and habitat protection; the Wildlife Commission proposes to stop attempting to develop a single overall comprehensive manatee protection plan; and it proposes to correct the situation by continuing future development of a marina siting plan as a voluntary effort and will make no permit recommendations that depend or hinge on approval of a final manatee protection plan.

Commissioner O'Brien stated the letter essentially says if the County wants to have a marina siting plan, it can do so, but it is the responsibility of the Department of Environmental Protection (DEP); and inquired does the County want to create another layer of governmental permitting or can DEP do the job on its own without the County's assistance; stated the Florida Fish and Wildlife Conservation Commission will have input into that process; and there have been no requests for permits for creation or expansion of a marina in Brevard County in seven years. He noted he believes the County is being told that it will have no regulation of the speed zones or anything else, and it is up to DEP.

Chairman Higgs stated the Fish and Wildlife Conservation Commission said it no longer wanted to work with the Board in regard to marina siting and speed zones, and if the Board believes Brevard County can benefit, it might work on marina siting; the Conservation Commission is going to proceed with rule-making in regard to speed zones; and Brevard County still has a role in regard to manatee protection, which may be education, law enforcement, habitat protection, and land use planning, if it chooses to do so. She advised the County still has a Comprehensive Plan that talks about protecting manatees; it has the possibility of things the Board should do to protect manatees; and it would be Brevard County's Plan and not have to be approved by anyone.

Commissioner Carlson inquired does the Board want to discuss the issue in a couple of weeks; and requested input from staff.

Assistant County Manager Stephen Peffer stated the letter from the State essentially changes the playing field and says its goal is no longer to pass a manatee protection plan that the State and Brevard County can both agree to; however, the Board's role in manatee protection can now be the subject of further discussion; Brevard County still has a role; and he believes the letter was trying to say it may be more productive for the County and the State to pursue those areas they can implement regarding manatee protection. He noted he would submit to the Board that it becomes a worthwhile subject of a workshop because the County is now playing on a different field, and it could focus on and address those things that Brevard County could do.

Commissioner O'Brien stated the letter indicates a primary role of the Florida Fish and Wildlife Conservation Commission is manatee protection, to implement appropriate regulations, such as establishing boat speed zones in manatee sanctuaries; its primary role is to ensure enforcement of those regulations; and it is not Brevard County's primary role at all. Chairman Higgs noted the Wildlife Conservation Commission indicated it does not want Brevard County's input anymore, and the Board is out of that loop. She stated the Board should still proceed with a plan. Commissioner Carlson stated the County has a document, and it needs to address the things it has been brought off focus on because of the speed zone issues and other things; and it can look at law enforcement, habitat protection, education, and land use planning.

Commissioner Scarborough stated staff can define the issues that need to be discussed at the workshop.

Motion by Commissioner Carlson, seconded by Commissioner Scarborough, to approve holding the Manatee Protection Plan (MPP) Workshop on April 27, 2000, at 10:00 a.m. Motion carried and ordered; Commissioners O'Brien and Voltz voted nay.

DISCUSSION, RE: PRESENTATION ON REGIONAL STUDY REPORT

Commissioner Scarborough stated he would like to have Jacob Stuart, Executive Officer of the Orlando Chamber of Commerce, come to Brevard County to make his presentation regarding the regional study report; Mr. Stuart has been proposing that the Chambers, counties, and businesses of the area get together and do a $1.7 million regional study; it is a massive study and would give the framework of where the EDC, Chambers of Commerce, Airports, Ports, and the space industry work; and it is an intriguing issue that Brevard County is going to be confronted with in approximately one month.

Motion by Commissioner Scarborough, seconded by Commissioner Voltz, to direct staff to invite Jacob Stuart, Executive Officer of the Orlando Chamber of Commerce, to Brevard County on the same day as the Manatee Protection Plan (MPP) Workshop to make his presentation concerning the regional study report. Motion carried and ordered unanimously.

APPROVAL OF TRAVEL, RE: COMMISSIONER RANDY O'BRIEN TO WASHINGTON, D.C.

Commissioner O'Brien requested permission to travel to Washington, D.C. on May 15 through 17, 2000, along with the Chamber of Commerce, to meet with Congressional officials to discuss various issues, including the X-34 and promoting Brevard County; and stated it is a real lobbying effort.

Motion by Commissioner O'Brien, seconded by Commissioner Scarborough, to approve travel for Commissioner Randy O'Brien on May 15 through 17, 2000 to Washington, D.C. to meet with Congressional officials concerning the benefits of NASA, the International Space Station, Space Shuttle, and future human space exploration programs. Motion carried and ordered unanimously.

Commissioner Voltz stated she had previously asked about going to Tallahassee sometime after the session. Chairman Higgs stated the Board members are authorized to go to Tallahassee to lobby.

Upon motion and vote, the meeting adjourned at 5:30 p.m.

ATTEST:

NANCY HIGGS, CHAIRMAN
BOARD OF COUNTY COMMISSIONERS
BREVARD COUNTY, FLORIDA

SANDY CRAWFORD, CLERK
(S E A L)