MINUTES OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS

BREVARD COUNTY, FLORIDA

 

 

February 27, 2008

 

 

The Board of County Commissioners of Brevard County, Florida, met in special session on February 27, 2008, at 1:00 p.m. in the Government Center Florida Room, 2725 Judge Fran Jamieson Way, Viera, Florida.  Present were:  Chairman Truman Scarborough, Commissioners Chuck Nelson, Helen Voltz, and Mary Bolin, County Manager Peggy Busacca, and County Attorney Scott Knox.  Absent was:  Commissioner Jackie Colon.

 

 

The Invocation was given by Representative Ralph Poppell.

 

 

Commissioner Bolin led the assembly in the Pledge of Allegiance.

 

 

 

Lobbyist John Thrasher advised he is proud to represent Brevard County, and work with the Board and members of the Legislative Delegation; the Delegation is excellent and committed to the State and Brevard County; it has engaged in the issues and will be working hard for the citizens of Brevard County for the next two months; and the Session starts next Tuesday.  He stated everybody is excited to get started and meet the challenges; there will be many; the Delegation is in a much better position to tell the Board about them than he is; and it is always great to work with the Board and the Legislative Delegation.

 

Chairman Scarborough stated the Board always appreciates Mr. Thrasher’s representation.

 

Representative Stan Mayfield advised this is a good time for the Board and Legislative Delegation to meet; these are always productive meetings; and it helps everybody to focus on the things that are important to the people they represent.

 

Senator Bill Posey stated it is really good to discuss the issues among friends and not on the battlefield; and the Legislative Delegation looks forward to the opportunity to get together like this once a year.

 

Commissioner Nelson stated he was able to meet most of the Legislative Delegation members in Tallahassee during the battlefield section of last year’s Session; he appreciates the access Brevard County received and the reception it received while it was there; there are a lot of  problems  in  the  State  of Florida that impact Brevard County; and the County wants to be a

partner to that process.  He noted it can get through it if it can do that; this is a strong Legislative Delegation; and he looks forward to working with it again this year.

 

Representative Ralph Poppell stated the Legislative Delegation appreciates the opportunity to meet with the Board; the Delegation and Board need to meet more often because things change and they change pretty rapidly sometimes; the Legislative  Delegation  has  constraints  as  well;

 

INTRODUCTIONS (CONTINUED)

 

and  there  is  nothing  that it wants to do to hurt Brevard County because it hurts the Delegation

as well whenever it does the wrong thing.  He noted the Legislative Delegation is going to be listening to the Board and try and help it accomplish its goal.

 

Commissioner Bolin stated the Board is strong and the Legislative Delegation is strong; they can take Tallahassee by storm as working as a team; and that is what she wants to accomplish today so they get what they need.

 

Representative Mitch Needelman stated this is a strong team; the partnership between the Board and the Legislative Delegation has been favorable; the County Commission has been a strong one in support of the Delegation; the communication has been good; and it has been very successful with the County Lobbyists, County Attorney, and the people of Brevard County.  He advised he is very pleased to be part of it and to continue looking at resolving some of the issues they are going to be facing in the upcoming fiscal year.

 

Commissioner Voltz stated she wants to make sure the Board is more a part of the process of what is going on in Tallahassee; some of the things that have happened the Board figured out at the last minute and did not know exactly what was happening; the Board would like to become part of the Legislative Delegation’s process and how it affects Brevard County’s tax structure and the citizens; and requested the Delegation allow the Board to figure out how Amendment 1 has affected Brevard County before it gets hit with another one.  She advised everybody needs to look for tax breaks and reduced taxes.

 

Senator Mike Haridopolos advised he hopes everyone appreciated the open door policy the Legislative Delegation had throughout the year; it was imperative; not everybody is happy with Amendment 1; but the voters spoke strongly, and two-thirds of the voters said yes to relief.  He stated government is facing some challenges, but nothing in comparison to what everyday families and businesses are going through right now; the Board and the Legislative Delegation are going to face some challenges; but the best part about it is there is a roadmap; and the roadmap was actually laid out in 2001 after September 11^th.  He advised the State slowed down spending; it was tough medicine for a year or two, but long-term it saw great prosperity in the State; that is a good roadmap to work from; and government is going to prioritize like families and businesses are doing. 

 

Senator Haridopolos stated it will come out of this okay; the Legislative Delegation and Brevard County are partners for the next couple of years to get through this time; families and businesses will prosper; and in the day, everybody will all prosper.  He advised it is going to be a challenge, but the Board and Legislative Delegation are up to it as long as they follow the roadmap from the past and try to replicate that to the best of their ability.

 

Representative Tony Sasso stated he looks forward to furthering and developing the relationship with the Board and Legislative Delegation.

 

 

 

Brevard County Legislative Delegation Chair Thad Altman expressed appreciation to the Board for the support it has offered the Delegation; stated Leigh Holt is wonderful; Brevard County is represented very well with Ms. Holt in Tallahassee, and John Thrasher as well; and anytime he calls the County Manager’s Office or any of the County Commissioners, they are always right there.  He advised the Board and Legislative Delegation have a wonderful working relationship; the Space Coast has some challenges; its future is bright; and it has a new vision in Space that it is going to play a key role in meeting, from going back to the moon, to the mission of Mars.  He stated there are some serious employment issues between the Shuttle and the Constellation Program; the leadership in the Florida House is committed to insuring that Brevard County stays the leader in Space; it is very important to rally together and work together as a Delegation and local government officials to be a part of that and to support the leadership and the Governor as well, who has a very healthy budget for economic development; and these are great challenges, but great opportunities for Brevard County.  Chair Thad Altman expressed appreciation to Steve Kohler, CEO and President of Space Florida, who is present today; stated that reflects a real commitment on behalf of the State to the challenges before the Board and Legislative Delegation; they know what they need to do and what the challenges are; and they need to perform and they will.

            Brevard County Board of County Commissioners

 

Chairman Truman Scarborough stated he was talking to Bob Walker, Lobbyist in Washington; he was saying one of the reasons Virginia may have gotten this was a Zero G, Zero Tax; he has been trying to get this; and one would be surprised how difficult it is for someone in Florida to get information dealing with this issue from Virginia.  He advised there are a lot of dynamics; the one thing that always concerns him is that even though there are a lot of good players on the team, the football team works well when it talks to each other; one of the key challenges Brevard County and the Legislative Delegation are going to have is to work together as a team; and there needs to be a lot of communication and coming together periodically.

 

Bob Lay, Brevard Emergency Operations Center, stated it is his privilege to tell the Board and Legislative Delegation today that he is going to withdraw this budget request for $1.2 million; in these trying times that is rather important; last night he talked to the Division of Emergency Management in Tallahassee; and it found adequate funds to fund the installation of the generator that Brevard County needs for the special needs shelter at Quest Elementary School.  He expressed appreciation to the Board and the Legislative Delegation for supporting that; stated the Division has made some additional requests for up to about $44 million to fund the rest of these generators around the State; and expressed appreciation to the Board and the Legislative Delegation in helping to get the generator to Quest Elementary School.

BREVARD COUNTY 2008 LEGISLATIVE PROGRAM (CONTINUED)

 

            Priorities

 

                        Crisis Mental Health and Substance Abuse Beds

 

Wayne Holmes, State Attorney’s Office and Chair of the Commission on Mental Health and Community Solutions, stated this is the fifth time that this issue has been before the Board, the need for Baker Act beds and Marchman Act beds; it has always been a very difficult item; this year, it is very obvious from the financial situation, it is going to be even tougher and probably has no hope whatsoever; however, the Commission on Mental Health wanted this to be an item again this year because they do not want the issues of mental health out of the public eye, and they want the Board and the Legislative Delegation to be aware of the continued needs that exists in Brevard County.  He advised the Board has been very supportive of attempts to come up with different sources of money and different solutions; there is a Commission report that is in front of the Legislature this year dealing with the competency issues in the courts where there was the Commission set up between the Florida Supreme Court, the Legislature, and the Governor’s Office; there are some good things in that proposal; but they are also saying they need $20 million of additional money to put that into effect.  He stated he understands there has been receptiveness to some of those ideas; that is where the efforts need to be made in this tough time; and requested the Legislative Delegation to please not forget them locally and the needs. 

 

Mr. Holmes advised every dollar that is not spent in the mental health arena ends up being another dollar that has to be spent in the Jail; the largest mental institution in the County is the Brevard County Jail; law enforcement officers every day are taking their lives into their hands; and there are quite a number over the years where law enforcement has had to take the life of an individual who basically was mentally ill, but they were acting out with a deadly weapon, and the officer had no choice.  He stated he would hate to see any one of those incidences occur in Brevard County; on behalf of the Commission on Mental Health, he wants to thank the Board and the Legislative Delegation for their efforts; and requested they please keep the mentally ill in mind as they go through these tough times.  He advised the Board has done an excellent job in providing the resources in the Jail, expanding the Jail, and doing a number of things that the Commission on Mental Health has recommended; but it is not something that ends just because there is no money; those people will continue to be mentally ill; and they will continue to impact the community and criminal justice system.

 

Jim Whitaker, Circles of Care, stated there are parity bills that have been introduced in both the House and the Senate this year to cover mental health issues; there is also a movement on the Federal level, so that is coming along; there are numerous studies on State and Federal levels; and Medicare pays 50% for a mental health diagnosis, and 100% for a medical diagnosis on an out-patient basis.  He noted one of the biggest ones in the Country is Medicare; what has actually helped out Circles of Care is HMO’s; once a person gets into an HMO, even though that is Medicaid dollars, it is considered third-party payment so some payments can be received, even in Baker Act units for the indigents through the HMO’s; and when they were Medicaid one could not receive anything.  He stated that has been positive and helped out over the period of time in the mental health field; it helps nothing in the substance abuse field because Florida does not pick up those options; so Circles of Care does not cover substance abuse, detox, and treatment  in  Florida; there  are  Medicaid  options  for that; but it has not picked that up yet.  He

 

BREVARD COUNTY 2008 LEGISLATIVE PROGRAM (CONTINUED)

                        Crisis Mental Health and Substance Abuse Beds (Continued)

                       

noted as the economy gets worse, Circles of Care has found out that people get depressed and Circles of Care sees more; he has been in this business for 38 years; and he knows this is coming and it will pass.  He advised Circles of Care will not be without clients; so whatever the Board and Legislative Delegation can do to help, Circles of Care will appreciate it; the prison system in Florida has been working really hard to try to get people that have mental illness when they are coming out of jail to be returned to the ability to either have Medicare or Medicaid if they are disabled, because they lose that the day they go in prison; and sometimes it takes three months to a year to get back for any treatment.  Mr. Whitaker stated the prison system is now working on that three or four months before discharge; they have sent people to get trained; and they have gone from about 30% to almost 65% or 68% being returned to benefits by doing this before they get out of the prison system, which really helps the community because it covers many services and takes some of the pressure off.  He advised some really good things are happening; but more needs to be done; and it saves the State money because it spreads out the costs.

 

 

                        Space and Technology

 

                                    Informed Consent for Space Flight

 

Steve Kohler, Space Florida, stated one of the issues among many that were focused on at the Statewide level was certainly the transition with respect to Shuttle to Constellation; the Board and Legislative Delegation will hear later on from the Brevard Workforce Development Board and Lisa Rice; the work that has been done here at the local level is this effort deserves appropriate recognition; it has been nonstop, continuous, creative, and good effort to identify and define what the affected workforce may look like; and the process is ongoing.  He advised Space Florida has been happy to be able to support that, both with some direct support with the Workforce Development Board and with the work of the Space Coast EDC; Lynda Weatherman and Frank DiBello have been tireless in their efforts to help to define and add fidelity to the issue in a very difficult process, given the sensitivities, both with the existing workers that are compelled and obligated to safely fly out the Shuttle, and the needs of the community to recognize the transition, accommodate, and try to mitigate the affects of this transition; and with respect to the Legislation, highlights that he would like to mention include first, the Commercial Space Launch Act, which is an insurance bill that would limit liability for commercial launch interests.  He stated it is very similar to a bill that was passed in the State of Virginia and is being considered by the State of Florida, among others at this point; and it has also received support from the Personal Space Flight Federal, a National Organization that he serves on, in an effort to see this kind of Legislation work across the Country, and more so to make it less globally competitive in this commercial market place.

 

Mr. Kohler advised the other Act is the SADIE, the Space and Aerospace Development Infrastructure Enhancement Act, which is a broader bill; its impetus was generated as a result of a  number  of  things,  including  and  not  limited  to  the  workforce  transition  issue, but also to

 

 

BREVARD COUNTY 2008 LEGISLATIVE PROGRAM (CONTINUED)

 

                        Space and Technology (Continued)

 

recognize some of the opportunities that are seen, in addition to potential Constellation NASA transition  projects  and  programs  that may be considered for Florida; but also to recognize, by

way of example, the emerging commercial space industry as represented by companies, which are interested and willing to consider the State of Florida as a primary location for their ability to purchase launch vehicle and capsule services that would launch from Florida versus where they did their two pathfinder flights, in this case from Russia.  He stated the recent re-bid of the COTS competition, Commercial Orbital Transportation System, bid that NASA let out and was awarded the orbital; there were references made, and comments and written remarks about the concerns; from the Company’s standpoint, this is still an open issue and Florida is still certainly being considered; definitively, the State, through his Office and some Representatives here locally, are still engaged in serious discussions and serious considerations of opportunities for that particular COTS competitor; and couple that with Space X and their efforts that are ongoing at LC-40, they are hopeful that they will end up with both of the final COTS competitors, not just doing their demonstration, but their ongoing servicing program from the State of Florida, if possible.  He advised the SADIE initiative is intended to be able to support those kinds of pursuits, including the issues with respect to everything, from the hard infrastructure that is necessary to service that industry; and hard infrastructure meaning everything from launch pad type infrastructure to capsule design and development.

 

Mr. Kohler stated the capacity of having facilities in the form of launch complex capability for commercial space and capsule development are important; part of SADIE is intended to support the capacity of companies like that to consider a Florida location to acquire launch services and capsule configuration services from many of the providers that are both currently residents here in Florida, as well as some of those that may not be here presently; one of those that was publicly disclosed that they are in negotiations with is Lockheed/Martin, with consideration to service them; and it was in a recent press clip.  He noted he wanted to mention that to frame some of the impetus behind the needs for this kind of Legislation to support the Space industry; domestically, the real competition, in-part, emanates from Sea Launch because of the capacity that facility has based in California for a number of the vehicles and the ability to move around in launch configurations to compete; but beyond that, the real competition is global; and everybody has seen it everyday, they have seen it in international commitments to not only civil and military launch infrastructure, but now commercial.  He advised most recently the Russians have declared that they are going to move actively in the commercial environment; individuals have read about Mitsubishi, the Japanese, China, India, and other places around the globe looking at some commercial opportunities; some of the competition everyone needs to be mindful of is represented there; and Florida has to create the environment that becomes competitive.  He stated it is an expensive initiative; they are trying to leverage as much as they can in order to attract as much to service the interests in Florida; the other challenge is to balance not only the interests in pursuit of issues emerging from the commercial space industry and those that might emanate and will emanate from Constellation, as a result of transition, but also the increased awareness and pursuits within the DOD; and they have initiated some discussions with ORS, Operational Response of Space Office within DOD to consider interests within the Cape area. 

 

Mr. Kohler advised one of the largest challenges they continue to work with is the whole issue dealing with range access and the process by which one balances commercial interests, and civil  interests with military in a range that has some limitations because of mission requirements

 

BREVARD COUNTY 2008 LEGISLATIVE PROGRAM (CONTINUED)

 

                        Space and Technology (Continued)

 

on the military side, and some limitations with respect to civil on the NASA side; these are some of  the  challenges  they  hope  to be able to address, in part, through this Act; and they are also

supporting some of the recommendations with regard to modifying existing Legislation to enhance space’s access to some of the resources that exist.  He stated they are, at the State level, endeavoring to coordinate this activity with some of the existing agencies; and they have had a number of discussions with EFI to insure that they mitigate any overlap issues, Workforce Florida, and AWI on the workforce front, to insure that the plans and initiatives that are moving through the system from the Brevard group forward are adequately addressed and appropriately integrated into existing programs.  He advised the competition is there; it is no longer an exclusive purview for the State of Florida; it is more globally; and the States are doing what they can, but there are still limits.

 

Mr. Kohler stated the emerging companies, small as they are, they are stimulating some interest in terms of looking at a competitive environment; they are also a necessary part of what they are trying to do to balance the economy here; there is a framework to drive forward; this is not simply important for the Space Coast as it is and as it should be; and it is not just important for Florida, but this is an important National issue.  He advised often times the mainstream throughout the rest of the Country may not be quite as aware, but this is a critical issue; there are representatives that are at the federal and local levels that have made a point that this is important; anyone can look at the press clips globally and see it; and they are looking at a major transition, which creates a challenge, but also creates an opportunity.  He stated these kinds of things and the support they are seeing is moving in the right direction; but they are not there yet; and they need to keep pushing hard to get there with respect to the Space Coast.

 

 

The meeting recessed at 2:10 p.m. and reconvened at 2:25 p.m.

 

 

                                    Space Technology Research and Development Initiative

Eddy Ellegood, Embry Riddle University, presented a Power Point presentation to the Board; advised the NASA science missions include Deep Impact in January 2005; it was built in Colorado in partnership with the University of Maryland and CalTech/JPL; and the Mars Reconnaissance Orbiter was built in August 2005 in Colorado in partnership with CalTech/JPL, University of Arizona, Johns Hopkins, MIT, and George Washington University.  He stated the CloudSat was built in August 2005 in Colorado in partnership with Colorado State University, CalTech/JPL, University of Maryland, University of Utah, University of Wyoming and University of Massachusetts; the Aura was built in July 2004 in California in partnership with University of Colorado, CalTech/JPL, Harvard, and University of Denver; and the Spirit and Opportunity Mars Rovers were built in 2003 in California in partnership with Cornell University, Washington University, University of Nevada, Arizona State University, University of Chicago, MIT, CalTech/JPL, Harvard University, Ohio State University, and University of Alabama.  He stated for the most part, Florida’s role is limited to launching rockets; unfortunately, although the rockets are much more sophisticated today, the launch industry is relatively low tech based on 1950’s era technology; since the 1990’s the  competitiveness  of  Florida’s  launch  industry  has

 

 

 

BREVARD COUNTY 2008 LEGISLATIVE PROGRAM (CONTINUED)

 

                        Space Technology Research and Development Initiative

 

declined such that it used to launch about one commercial satellite per month; and it now launches about one commercial satellite per year.  He advised the number of NASA and military launches from Florida have also declined significantly; even with the competitive launch industry, Florida’s potential is limited if it does not diversify its role in Space to include more research and technology development programs; although Florida does have some top-notch space research programs at its Universities, they are small and scattered; and Florida is simply not on the map when compared to other States. 

 

Mr. Ellegood advised of examples of what other States are doing to build their space-related high-tech industry; such States have very strong university programs; they aggressively leverage those programs and the talent that they generate to support space-related economic development; those States are where high value research grants are won, where engineers develop the satellites and space probes, and where scientists conceive, design, and manage the missions that are launched from Florida; and historically, Florida’s lack of a strong university research base has caused higher value space activities to locate elsewhere.  He stated Florida’s Universities could be doing much more in space; and what Florida must do is identify growth-oriented space R&D niche capabilities, and provide sustained resources to develop world class programs around them.  He advised Florida’s ongoing Center of Excellence Program provides one opportunity to do this, but the two space-related proposals submitted under that Program must compete against dozens of others focused on higher profile topics; one proposal for the Legislature is to create a Space Technology and Research Diversification Initiative (STRDI); STRDI would combine the focus areas of the two space-related Center of Excellence Proposals into a single initiative; and STRDI focus areas include spaceflight biomedical countermeasures and astrobiology; spaceflight engineering technology, policy, and experimentation; spaceport and range technology development and commercialization, and space and upper atmospheric science.

 

Mr. Ellegood stated with the coming retirement of the Space Shuttle, there is a lot of talk about the five-year gap between NASA’s launch programs; he suggests there is a larger gap that should be worried about, which is the diversification gap between the limited role as a transportation hub and the desired role as a world leader in Space research and technology development; and the support for increasing the involvement in Space R&D as an economic development investment can close this gap and position Florida for long-term space industry growth.

 

Representative Altman advised he and Senator Posey are sponsoring the Legislation; Mr. Ellegood’s Power Point has been received very well in the House; it may be fortunate enough to get some funding for it; they are seeing a lot of emphasis on Space, including from the Speaker of the House, Governor, and Senate; and they are very cognizant of what Florida and Brevard County are facing.

 

 

 

 

BREVARD COUNTY 2008 LEGISLATIVE PROGRAM (CONTINUED)

 

                                    Qualified Space Contractor Tax Refund

Frank DiBello, Economic Development Commission of Florida’s Space Coast, stated he is addressing the primary piece of Legislation proposed by the EDC of Florida’s Space Coast, which is known as the Qualified Space Contractor Incentive; he can be brief because most everyone is already familiar with a very successful and effectively used incentive that is already in the existing Legislation, all the Qualified Defense Contractor Incentive; this has been effectively administered by EFI and utilized across the State; and the proposed Legislation has the support of most of the EDC’s they have talked to, as well as Enterprise Florida, Space Florida, and members of staff in the Governor’s Office.  He advised under the proposed Legislation, what they are attempting to do is to broaden the Qualified Defense Contractor language to insure that it does in fact address all aspects of the Space Flight industry; they proposed some very comprehensive definitions of Space Flight business; and secondly, it broadens the language to include more than defense contracts, but military contracts, civil space contracts, and commercial space contracts. 

 

Mr. DiBello stated similar to the QDC, projects approved for consideration for the incentive would receive tax refunds of up to $5,000 for jobs created, as well as jobs retained, the supplies to companies pursuing new contracts, as well as expanding existing contracts, or consolidating activities from outside the State into Florida; they think it will be a very effective economic development tool and will provide a differentiator, maybe even a discriminator in some of the competitions they might face; and the EDC has a very comprehensive strategic plan for building of space clusters that are predominately in the sub-tier.  Mr. DiBello advised there is a lot of sub-tier manufacturing capability that they can grow, and a lot of support to the Space industry that either already exists in Florida or it can attract new business; and this would be a very effective tool for that.  He stated similar to the Qualified Defense Contractor Incentive, there are very strict criteria for initiatives that would qualify; they have also built in a validation process to insure that the contracts that are being proposed are in fact real and that the jobs being proposed are in fact real jobs, either created or retained; the Bill sponsors are Representative Thad Altman and Senator Bill Posey; for the Senate the language is complete; and they think they have resolved the differences between the House and the Senate.  He advised the Bills should be submitted on Friday; requested support of the Legislation; and invited the Delegation to consider cosponsoring this Legislation with Representative Altman and Senator Posey.

 

 

                                    Workforce Transition Program

Lisa Rice, Brevard Workforce Development Board, expressed appreciation to the Board for supporting everything the Workforce Development Board has been working on through the Aerospace Career Development Council; and thanked John Thrasher and Leigh Holt for all of the work they have done in Tallahassee, and also Representative Altman and Senator Posey for their assistance.  She stated she is present to talk about the $5.28 million Legislative Budget Request for the workforce side of the house; the pieces that this will cover came from the Aerospace Career Development Council and the work that group did to identify what they need to do for transitioning this workforce; they do not have this yet into a specific appropriations area; and they understand this is a very difficult budget year; however, this is probably the year where Space is getting some focus; so hopefully it will have enough attention for this kind of work.

 

BREVARD COUNTY 2008 LEGISLATIVE PROGRAM (CONTINUED)

 

                        Workforce Transition Program (Continued)

 

Ms. Rice advised Workforce Florida has supported this Legislative Budget Request; she is working with their President, Chris Hart, on how they can work with the Legislators to get this into an Appropriations area; the SADIE Act does have a possibility for having some of the funds attached to it; but at this point, she believes their understanding with Space Florida is that it would mainly be under the SADIE Act for infrastructure types of activities; and that is partially why they are pursuing the workforce side and its own Legislative Budget Request.  She stated there are some things that have already started to happen; Space Florida did provide some funding to the Workforce Board; it is moving forward on modeling the current skills to the anticipated skills, new jobs, emerging businesses, what are they going to have as skills, where does that leave them with a gap, and what kind of training needs to be developed to fulfill that gap.  She advised they are also beginning a communications plan about lifelong learning; with the aerospace workers a lot of them are not thinking about how to improve their skills and be competitive for that next job; they are just immediately starting to think about moving to the next job right now; they need to preserve the safety of the Shuttle right now; and that means retaining those people with the high skills in their job and in their mission until it is complete. 

 

Ms. Rice stated that safety is showing them that they can improve their skills now to be ready for that end of the Shuttle in 2010/2011; the Workforce Development Board has also received funding from Workforce Florida; there are two different areas; one was a Statewide competitive grant that is for employed worker training that is being applied directly to the aerospace industry; and the Workforce Development Board is working with Lockheed Martin on that.  She noted it requires a match from Lockheed Martin, as most of the grants do; the other one is the Microgravity Certification that was pursued to WFI and received for Brevard Community College and Zero G to develop a Microgravity Certification; this is looking far into the future; and this is the future of commercial space.  She advised it is how do you live and work and do all of the things you need to do in microgravity; the Workforce Development Board is producing the certification for it today, hoping to take that to a National certification over the next couple of years; the Development Board is working with TRDA on an economic development agency application for economic development dollars to come and help with this transition; and she has been working on civilian appropriations to the four different Congressional leaders that represent this area, and will have those turned in this week.

 

Ms. Rice advised the Brevard Workforce Development Board is also partners with the Alternative Energy Banner Center and the Florida High Tech Corridor Council, both of which gives ways to again transition the aerospace workforce into those emerging industries all across the corridor; and she has to give thanks to the Florida High Tech Corridor as well as it provided funds to help make that happen across the corridor.

 

 

                                    Florida Advanced Combustion Energy Center

Frank Kinney, Florida Institute of Technology, stated he had the opportunity this morning to make a presentation at the Brevard Legislative Delegation meeting regarding a local bill that is being filed on this issue, which will need to seek approval by the County Commission today; Florida Tech has a very strong interest in this project; there are some very key partners involved with this; and Florida Tech is leading the academic charge, but it also has four other Universities

 

BREVARD COUNTY 2008 LEGISLATIVE PROGRAM (CONTINUED)

 

Florida Advanced Combustion Energy Center (Continued)

 

that are actively involved in this project, known as the Florida Advanced Combustion Center, which would be located at Kennedy Space Center, Embry-Riddle University to the north, University of Central Florida to the east, and Florida Atlantic University to the south.  He advised all four of the Engineering Universities that surround Brevard County have committed to support this project; there are also some strong private sector support; Siemens Power Generation Corporation in Orlando employs about 3,000 employees, most of whom are engineers; they worldwide employ 500,000 as a Corporation; and at the end of the day, 40% of all the power generated in this world is generated on the Siemens turbine.  He stated at the end of the day, all electricity is generated on turbines; they control about 40% of the total market; they have a strong need for the development of new technology that utilizes alternative fuels, whether it be hydrogen, gasified coal, bio-diesel, ethanol, and just about anything; and that is a very important issue for the State of Florida because at the end of the day, 40% of the electricity comes from natural gas running through these turbines. 

 

Mr. Kinney advised by the year 2015 that is going to increase to about 56%; Florida is the most dependent State in the Nation when it comes to natural gas to generate its electricity; but natural gas is problematic; since 2002, the cost of natural gas has doubled; domestic supplies are going very fast in this Country; and the Governor’s own Energy Office has predicted by the year 2015, the United States will have exhausted its natural gas supplies.  He stated it is very important to begin to transition to other types of fuels and retrofit the turbines being utilized right now to generate utilities and electricity, and generate new devices; testing in R&D is taking place right now in Europe, Italy, and Germany; they want to actually move all the testing they are doing in Italy over here to the United States; and the ideal location for them is Kennedy Space Center.  He noted Florida Turbine is another player; it develops very small turbines that are used in a lot of DOD applications; and it is also a big customer of Siemens.  He stated Florida Turbine has made a commitment or interest in establishing an operation in North Brevard for the purpose of manufacturing those small turbines; it also has an interest in working with Florida Tech on operating this Center; that is very important; there are certainly many other potential opportunities for this type of technology; and one of the things that has come out in the earlier meetings of the County Commission is they have to diversify the activity at Kennedy Space Center.

 

Mr. Kinney stated this is a unique opportunity to diversify some of that R&D activity at Kennedy Space Center; NASA/Kennedy Space Center is very supportive of this; Space Florida is certainly supportive; and they have been working with Enterprise Florida as well.  He noted Lynda Weatherman and the Space Coast Economic Development Commission have been involved in those discussions; this is a very exciting and large project; Florida Institute of Technology is hoping that the Legislature will see fit to fund the Florida Innovation Fund again as it did last year to the tune of $150 million; the Governor has requested that fund be increased to $200 million this year; and $100 million of that would be earmarked specifically for energy projects. 

 

 

The meeting recessed at 3:00 p.m. and reconvened at 3:15 p.m.

 

 

 

BREVARD COUNTY 2008 LEGISLATIVE PROGRAM (CONTINUED)

 

Motion by Commissioner Bolin, seconded by Commissioner Voltz, to approve the Brevard County 2008 Legislative Program Package.  Motion carried and ordered unanimously.

 

 

Lynda Weatherman, Chief Executive Officer (CEO) of the Economic Development Commission (EDC), advised the EDC constantly works its local projects and its existing companies that are looking to expand or looking to other areas where their corporate headquarters might be, and looking at companies that are looking to reinvest in this area or relocate; from time to time, she will come before the County Commission and bring to the attention a project they are working on that she feels warrants the Board’s attention, input, and discussion for the most part, on how to put together a very aggressive as possible competitive package; the last time she came before the Board was when they were working the Crew Exploration Vehicle (CEV); the majority of the things done here is launch; and with the thinking of the Board and the support it gave the EDC, it was able to get the CEV here.  She stated there is a paradigm shift in the industrial base of the space industry; for the first time in the 50 years of the history of the space industry in this State, the EDC brought production assembly work here; that was the beginning of the first step to mitigate this job loss that will be started in a couple of years; and when one works with an economic development project, they want to respond and put together the best package in regards to the site.  She advised not only is there the site analysis competitive review, but one has to put together a package that is suiting the needs, including a financial package that suits the needs of that particular company; in the case of the Delta IV, there was a 20-year present value spreadsheet; that is how they determined it and they did the cost out; and in the 20-year present value spreadsheet, things like AVT and other things like that were important to that Company at that time.

 

Ms. Weatherman advised she is working with a Company right now that has a different approach to this; it is just the approach it needs to make it happen; she wants to give County Manager Peggy Busacca credit for really zeroing in on that; and she met with the client last week.  She stated she is under a none disclosure and as soon as she is able to give the Board the name, she will; but at this time it is called Project Jaguar.  She stated the Company is doing a National search for its headquarters; this is a real project; there will be sales, a showroom, and manufacturing site; and the EDC has been working with this Company for a long time.  She noted the proposal was submitted in January; Nationally, this would be the corporate headquarters also; the Company is down to seven sites; and four of those sites are in Florida and two of those four sites are in Brevard County.  She advised this is a $51 million capital investment, with 200 direct jobs to start at $50,000 a year each; it is an International Company; and it has revenues of $3.8 billion.  She noted the Company has 23,000 employees worldwide; it is an investment grade Blue Chip stock Company, so it is a very reputable Company; when the EDC met with the Company last week, it was very frank about what it needs; and the Company does its homework.  She stated the Company is familiar with programs such as QTI from the State; Frank DiBello mentioned earlier the defense contractor and they said those are good; but those are not going to work in the cases for what they need; and in Delta IV, it would work because one can factor it in.

 

 

 

USE OF RESERVES, RE:  CONFIDENTIAL PROJECT (CONTINUED)

 

Ms. Weatherman advised this is very expensive and the County is going to have an intense capital investment; the EDC is looking for cash up front; that is what is going to help; and AVT is nice, but if the County put it into the bid right now, it is not going to factor greatly.  She stated in economic development, when one is in site location competition it is like an inverted triangle; the sites could work; the seven sites Brevard County is competing with conceivably would all work; and it is those things the County does that are going to set it apart.  She noted they have a deadline of Friday for best and final offer; the EDC hopes to have a site tour soon; if the County had applied for the ad valorem tax abatement for this project, given the capital investment, given the jobs compared to the State Statute and guidelines, the Company would be eligible for $1.78 million over ten years; she is proposing providing that cash up front and at Certificate of Occupancy (CO) stage; and they can discuss qualifications.  She stated the County would not offer an AVT, but provide the cash up front; conceivably, the Company will be paying Brevard County back the $1.8 million; the taxes the Company will pay over ten years is $4.8 million of County taxes; if Brevard County can be smart enough, creative enough, and look at it a little bit differently, it can give the Company what it needs; and it would not cost Brevard County directly anything. 

 

Ms. Weatherman stated she knows it is a difficult time for the County, but getting 200 manufacturing jobs in this day and age, and in this economy is very tough; companies do not expand when there is any kind of recessionary type environment; they are going to hold back; the EDC is working with the Governor’s Office and pushing very hard; and the EDC feels very strongly it will get it because there are four sites in the State of Florida, and this will be equitable.  She advised if the County Commission agrees with this, it also gives her leverage to go to the State for funds; this is a good first step; and the County could put something in for its best and final offer.

 

Commissioner Voltz inquired what is the deadline for going to the State for money.  Ms. Weatherman responded she was on the phone last night with the State and also this morning; the State is working on it; she does not know what their deadline is; however, the best and final offer is Friday, so she is assuming the State is trying to come up with a number by Friday. 

 

Commissioner Voltz stated if the Board says yes today and gives the Company $1.8 million out of reserves or whatever, then by Friday the State has to come up with whatever it is that it is doing or it is not going to work.  Ms. Weatherman stated the State may say it may put some qualifiers in there; she will know more when she hears from the State; she called the State and said she was going before the County Commission, the project is important to Brevard County, and she wants to know what the State is doing; and she will make sure the County has something.  She noted she is sure the State will make sure that area is covered.

 

Commissioner Voltz inquired if Ms. Weatherman has talked to the State Legislators about this project.  Ms. Weatherman responded she has not in this case at this time as it has moved so quickly; her focus right now is the Governor’s Office; and again, this is confidential, but not confidential in regard to what she is sharing with the Board.  She apologized to the Board for not coming to it sooner, but last Friday was the briefing that the Company opened this up to the EDC.

 

 

 

 

USE OF RESERVES, RE:  CONFIDENTIAL PROJECT (CONTINUED)

 

Motion by Commissioner Voltz, to approve $1.8 million from Reserves for Confidential Project, also known as Project Jaguar, as presented by Lynda Weatherman, Chief Executive Officer of the Economic Development Commission (EDC). 

 

 

Chairman Scarborough suggested putting some caveats on this; stated a lot of people ask why the County is abating taxes; the truth is that if this Company does not move in, the County is not going to have the taxes anyhow; they ask then why is the County doing that; and these wages are substantially above what other wages are.  He noted the more disposable income a family has, they put more money into the economy than people who do not have as much money; that means there is more money churning to create a favorable economy; Ms. Weatherman is saying for the County not to abate for this Company, but look at that stream of income as a means to back what it fronts in; the thing that automatically comes to mind is cash flow; in other words, the County is doing something by putting money at the front end; and everybody has the tax abatement, but what the County has done here is thrown it in the front end.  He advised from what Ms. Weatherman has always told the Board is the front is where it really counts; it is the front end dollars that are much more important because by the time they are up and running they begin to have profit and their cash flow at the front end is what is problematic; and in showing the front end dollars the County is more likely to capture the Company now.

 

Ms. Weatherman stated it is good that the Company is frank with the EDC; AVT has worked in the past for small and mid-size companies; this Company is being honest with the EDC in saying this is what works for it and this is what does not; and she will get into more details when they get into the final discussions, and the Board will meet with the Company.  She reiterated there will be sales, showroom, manufacturing site, and a corporate headquarters; she feels very strongly there will be more here; the Company is looking at a fraction to put this site on more acres and looking to purchase or lease; and people will be coming from all over the world to this site for the product.  She advised this project is real.

 

Commissioner Nelson stated the other difference that this has is that in the end, Brevard County is actually made whole because the way the Abatement Program works is that there is a portion the County never gets back; and in this case, it is actually going to get those dollars back.

 

Ms. Weatherman stated it is a better deal for a bigger project.

 

Chairman Scarborough noted Commissioner Nelson is correct because if the Board abates, it is gone, but in this case, it is different.  Commissioner Voltz stated the County never recoups that money.  Chairman Scarborough stated at the end of the day what the County has is a cash flow issue basically; and bottom line, it is not a negative.

 

Commissioner Nelson inquired did he understand that this would be tied to CO.  Ms. Weatherman responded yes, the same way when talking about the Qualified Space Contract; the EDC wants to tie it to the constraints and benchmarks; the State is not going to come to the table with $10 million, $8 million, or $5 million and just write a check; and it is going to have certain claw backs and everything.  Ms. Weatherman advised she will work closely with Ms. Busacca on that based on certain benchmarks that need to be met over a certain period of time at the issue of the CO, and whatever they can do in that.  Commissioner Nelson noted there would  be  some  last  review of the numbers to make sure that what is being discussed today is

 

USE OF RESERVES, RE:  CONFIDENTIAL PROJECT (CONTINUED)

 

still a good number.  Ms. Weatherman advised that is correct; what she would like to be able to get today is a vote in good faith; she could put it in her best and final offer; and sometimes it is not the final offer, knowing how this business works.  Commissioner Nelson noted it is the most recent final offer.  Ms. Weatherman stated that is correct; she is getting tired and hopes it is the final offer; she will get back certainly at the time to meet with the clients; and she would like to be able to put that in the proposal if the Board votes on it today.  Commissioner Nelson stated if it is tied to that, in effect, the County is looking at approximately two years out or three years out.  Ms. Weatherman noted the EDC is looking at in production January 2010, and the CO would probably be the last quarter of 2009.

 

Chairman Scarborough stated the County does not tax something that is not there; it really does not start anything on the tax rolls until the CO is issued; Property Appraiser Jim Ford does not put it there, so the CO and the taxing are one in the same; and also it indicates good faith on them that they put the money into the billing.  Chairman Scarborough stated so right now the Board will leave Ms. Weatherman to work on more details.

 

Commissioner Nelson stated this actually sounds like a better program than the one the County has.  Commissioner Bolin stated she would like to start doing this with everybody; with Commissioner Voltz also concurring.

 

Ms. Weatherman stated the Board can make the offer; it does bring into the County’s cash flow; maybe it is something the Board can consider making as an option to companies; and it might make Brevard County more competitive.  Commissioner Bolin stated it sounds better. 

 

Commissioner Nelson stated the first year taxes would be based on basically raw land value; the second year it is the full increment; so in effect, the County will have received it all back the second year.  Commissioner Bolin stated that is two hundred homes purchased.

 

Commissioner Bolin advised she will second the motion.  Chairman Scarborough called for a vote on the motion.  Motion carried and ordered unanimously.

 

 

Commissioner Voltz inquired how long Ms. Weatherman has been working on this project.  Ms. Weatherman responded she has been following this Company for a long time, and has been following this particular product and this industry for the last 18 months; and this is like a new product and actually proves to her that one better know their industries and better start following up on those new products that are coming up. 

 

Commissioner Bolin noted the final offer will be on Friday.  Ms. Weatherman responded the best and final is due on Friday; and she assumes since the Company is down to seven sites that there will be a site tour.

 

County Manager Peggy Busacca stated the Company indicated it would hope to have a site tour within the next three weeks.  Ms. Weatherman stated she does not want to give a date unless she is sure about it.

 

Commissioner Voltz noted if the Company has not done that yet it does not make sense.  Ms. Weatherman  stated  it  might  have; she  is  sure  with the size of this Company that it has been

USE OF RESERVES, RE:  CONFIDENTIAL PROJECT (CONTINUED)

 

here, but it just did not call her; it will be taking the paper and watching the Delta IV; it will be watching on the computer looking at the transcripts of public meetings; and it is done with the competitors.  She advised the Company is smart; this is a very Blue Chip Company; it needs to come and hear from the Board also; and it is what the Company is looking for.

 

 

Tyler Winik advised the County makes its journey to Tallahassee over the next two months; and requested he be able to meet with Chairman Scarborough or Commissioner Voltz to discuss the underage drinking priorities and Bills that have been entered in the Senate.

 

Chairman Scarborough advised he will be glad to meet with Mr. Winik any time.

 

Commissioner Nelson expressed appreciation to Mr. Winik for sending out his newsletter; and advised he reads it on a regular basis.

 

Mr. Winik advised they are trying and hoping they would receive some House support this year; but there is some good support; and they will see what happens.

 

Chairman Scarborough requested Mr. Winik keep up the good work.

 

Commissioner Nelson requested the Board schedule the Space Workshop on April 29, 2008 at 9:00 a.m. as Bob Walker will be able to be present; stated they want to work out the details on some presentations from the federal level Legislators; and the purpose of the Workshop would be to talk about impacting policy direction of the Space Program.

 

The Board reached consensus to approve scheduling a Workshop on April 29, 2008 at 9:00 a.m. to discuss Space.

 

 

Upon motion and vote, the meeting adjourned at 3:40 p.m.

 

 

 

ATTEST:

                                                             

                                                                ___________________________________               

                                                                TRUMAN SCARBOROUGH, CHAIRMAN

                                                                BOARD OF COUNTY COMMISSIONERS

                                                                BREVARD COUNTY, FLORIDA

____________________

SCOTT ELLIS, CLERK

 

             (S E A L)