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Agenda Item 6ARESOLUTION NO. 14-01 AGENDA ITEM# 6A JANUARY 13, 2014 A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA ADOPTING AND SUPPORTING THE LEGISLATIVE PRIORITIES IN THE FLORIDA LEAGUE OF CITIES 2014 LEGISLATIVE ACTION AGENDA, PROVIDING FOR AN EFFECTIVE DATE AND FOR OTHER PURPOSES. WHEREAS, decisions made by the Florida State Legislature affect cities in Florida in numerous ways, many of these are mandates or other actions that limit local government revenues or cause governments to incur expenses and ultimately affect the ability of Florida cities to provide adequate services to their citizens; and WHEREAS, involvement by representatives from Florida cities in the legislative process can help to educate lawmakers in Tallahassee about the needs, abilities and desires of their cities and residents that they represent; and WHEREAS, the City of Atlantic Beach, as well as many other Florida cities, are members of the Florida League of Cities, whose mission is to work for the general improvement of local government in Florida and its efficient operation through cooperative effort and to help represent units of local government before the various executive, legislative and judicial branches of State government on issues pe1iaining to the general welfare of it member cities; and WHEREAS, the member cities of the Florida League of Cities come together annually to adopt a legislative platform in anticipation of the upcoming legislative session and that was done at a conference held in Orlando in November 2013; and WHEREAS, the Florida League of Cities Legislative Priorities for 2014 include positions on municipal police officer and firefighter pension plans and disability presumptions, water policy, communications and local business tax protection, economic development, septic tanks, the Community Development Block Grant Program, ethics, transportation funding, sober homes and vacation rentals; and WHEREAS, it is appropriate for the Mayor and Commission of the City of Atlantic Beach to join with other Florida League of Cities representatives to jointly supp011 the Legislative Priorities for 2014 by adopting a resolution of supp011 and distributing copies by mail and personally to State legislators and other public officials and to otherwise support legislation that will enhance the ability of the City of Atlantic Beach and other Florida cities to provide public services efficiently to our citizens. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH, FLORIDA: Section 1. That the City Commission of the City of Atlantic Beach, Florida hereby adopts and supports the Florida League of Cities Legislative Action Agenda for 2014 as approved by the FLC Board which includes positions on municipal police officer and firefighter pension plans and disability presumptions, water policy, communications and local business tax AGENDA ITEM# 6A JANUARY 13, 2014 protection, economic development, septic tanks, the Community Development Block Grant Program, ethics, transpmiation funding, sober homes and vacation rentals. Section 2. That the City Commission of the City of Atlantic Beach, Florida hereby authorizes and directs copies ofthis resolution as well as the 2014 Legislative Action Agenda be sent to State legislators, State staff and others who may be influential on matters of State policy. Section 3. That the City Commission of the City of Atlantic Beach, Florida hereby authorizes and encourages the Mayor and staff to personally meet with State legislators, legislative staff and others to promote positions outlined in the Florida League of Cities Legislative Action Agenda for 2014. Section 4. That this Resolution shall be effective upon adoption. PASS ED AND ADOPTED by the City Commission of Atlantic Beach, Florida, on this 13th day of January 2014. Approved as to form and correctness: City Attorney ATTEST: DONNA L. BARTLE, CMC City Clerk Resolution No. 14-01 CAROLYN WOODS Mayor Page 2 of2 Proposed Policy: 2014 LEGISLATIVE ACTION AGENDA Municipal Pension Reform AGENDA ITEM# 6A JANUARY 13, 2014 The Florida League of Cities continues to SUPPORT legislation that protects municipalities' home rule powers to set and fund municipal employee benefit levels and specifically provides comprehensive pension reform, disability presumption reform and a mechanism for municipalities to revoke their election to participate in the Florida Retirement System. The League also supp011s legislation that provides municipalities with flexibility in the use of insurance premium taxes, as currently interpreted by the Depa1iment of Management Services. Background: Municipal Police and Firefighter Pension Plans: Prior to 1999, cities were largely free to bargain with local police and fire unions, or provide for non- unionized police and firefighters, pension benefits that best fit the priorities and needs of the city and its police and firefighters. In 1999, the legislature amended Chapters 175 and 185, F.S., relating to city police/fire pensions to require additional insurance premium tax revenues (taxes on property and casualty insurance premiums) over a base amount be used to provide only "extra" pension benefits to police officers and firefighters. In aggregate numbers, this mandate has required cities to provide more than $520 million in new, "extra" pension benefits to police officers and firefighters since 1999. This mandate to keep providing "extra" pension benefits is not sustainable; rather cities need the flexibility to use insurance premium tax revenues for the current or decreased level of police/fire pension benefits to meet city budget constraints. Beginning in August of 2012, the Depatiment of Management Services (DMS) issued a letter to the City of Naples that reflect a fundamental change in the depatiment's interpretation on the use of insurance premium tax revenues. Prior to this letter, DMS had taken the position that if a city reduced any pension benefit below the statutory minimum benefits or below the plan benefits in effect in 1999, the city would be ineligible for future premium tax revenues. In the Naples letter, the Division of Retirement acknowledges that its prior interpretation "appears inaccurate." Since that point, more than 33 municipalities have received similar letters from the DMS. Disability Presumption: Currently in Florida, there is a disability presumption for firefighters, law enforcement officers and correctional officers relating to health conditions from heart disease, hypertension or tuberculosis. This means that disability claims under workers' compensation and disability pension for these health conditions are presumed to be related to their job. 6 Pl orid a Retir emen t Syste m: AGENDA ITE M 11 6A J ANUARY 13, 20 14 Municipal pa rti cip ati on in th e florid a Re tir eme nt Sys te m (FRS) has bee n vo lunt a ry sin ce 1970. App rox ima te ly 150 muni cipaliti es part ic ipa te in va ri ous memb ership c lasses, but ma ke up less th an 5 percent o f th e parti c ip ants/memb ers o f the FRS. FRS mc mbc l'sh ip classes includ e: S pecia l Ri sk (Po li ce and Fire), Ge ne ra l Empl oyees, El ec ted Official s an d Se nior Mana ge ment. Afte r op tin g-in , curre nt an d ' futur e e mpl oyees a re compul so ry me mbe rs o f th e FR S. The la st "opt-o ut " for muni cipa liti es occurred · in 19 96 "a nd \oVa auth o ri ze d fo r new e mpl oyees onl y. App rox imat e ly 50 mun ic ip a lit ies a nd indepe nd ent specia l di st ri cts opted-o ut d urin g t hi s w ind ow . C unent Status: SB 246 (Rin g and Bradl ey) has been fil ed for t he 2014 Legis lative Sess io n. This bill is s imil a r to th e bi II co ns id ered by th e Se nate durin g th e 20 13 sess ion. Broa d ly s peak in g, th e bill a ll ows c itie s to redu ce pens ion bene fi t le ve ls a ll th e way down to th e s tatuto ry minimum bene fit leve ls (i f yo ur c it y h as a po lice or fir e uni o n thi s action wo uld have to occ ur thro ugh th e co ll ec tiv e barga inin g process). Whil e th e bill pro vide s very limited fl ex ibi lit y rel atin g to th e usc o f in sura nc e premium ta x reve nu es, it a lso crea tes a fairl y co mpl e x pr ocess re ga rdin g th e use of th ese tax reve nu es. Und er SB 246, th e usc of th ese fund s de pend o n when th e a mo unt of in s ur a nce pre mium tax re venu es wa s ge ne rated and if th e und e rl y in g de fined benefi t pl an has ei th e r an over or und e r 80 perce nt e~sse ls-to-li a bilitics ratio . In additi on, an imm e di ate and prob le mati c effec t o r th e bil l is th at it wo ul d vo id th e c urre nt Departme nt o f Ma nage me nt Se rvices (DM S) int erpretat io n on the use of in s urance p1·emi um tax reven ues , as ren ec tcd in the '·C ity of Naples" type letter s. Thi s DM S inte rpre tati on is ve ry ravora bl c to c iti es, pr ov idin g th e m with broa d fl ex ibility in nego tia tin g pe ns io n bene fit leve ls a nd use of in s ura nce prem ium tax reve nu es. However, a conce rn with th e current OM S in te rpl'clati on is th a t it cou ld be cha lle nged , and , und er a new gove rn o r, OMS co uld o nce aga in c ha nge it s interpreta ti on. As noted, a sta tuto ry cha nge as re fl ec ted in th e bill . wo ul d remove th e c urrent OM in te rp re tati on but it wo ul d a lso pre vent OM S f ro m deve lopin g a less favo ra ble inte q)retati o n ofth e la w in th e fu tme. T he po lice a nd fir e fi ght e r uni ons arg ue th at th e ir memb e rs re ly on th e revenu es fr o m th e in s urance premium taxes t o fund th e additi ona l pe ns ion be nefit s and g iv e n th e 1999 law change. th ose revenu es we re pro mi se d to th em. Th e Leag ue has lo ng ma in tai ne d th ose mand ated be nefit level s required und e r c urrent la w are un susta in ab le. C ontact: A mber llughes ahu g.hes@ Ocities.com Revised : 11 /2 1/20 13 7 2014 LEGISLATIVE ACTION AGENDA Communications Services and Local Business Tax Protection Proposed Policy: AGENDA ITEM# 6A JANUARY 13, 2014 The Florida League of Cities SUPPORTS legislation that protects general revenues collected from the communications services tax and the local business tax. These revenues are used to provide essential municipal services, such as public safety, constructing and maintaining roads, bridges, public parks and open spaces. Maintaining a diversified revenue base strengthens the fiscal stability of local governments and improves their ability to serve citizens and businesses. Background: Communications Services Tax In 2001, the Florida Legislature restructured taxes on telecommunications, cable, direct-to-home satellite and related services. This change was called the Communication Services Simplifications Act, which replaced and consolidated seven different state and local taxes and fees into a single tax that has two centrally-administered patis, the state and the local communications services tax (CST). The CST is one of the main sources of general revenue for municipalities. Local governments collect nearly $800 million every year. These revenues may be used for any public purpose, including pledging the revenues to secure bonds. Local Business Tax Currently, a municipality may impose a local business tax for the privilege of engaging in or managing a business, profession or occupation within its jurisdiction. The amount of the tax, as well as the occupations and businesses on which the tax is imposed, are determined by the local government. Local business tax revenues collected by local governments are used to assist funding of services critical to business, such as zoning, permitting, code enforcement, and police and fire. Local governments may also use business tax revenues to help fund other vital services, such as economic development programs, presenting a direct benefit to businesses through the marketing of local areas. Many municipalities use the business tax as general revenue funds and have pledged these revenues to secure debt. Collections for municipal local business tax revenues are more than $120 million every year. Current Status: In 2013, Governor Scott has promised to cut taxes by $500 million and included in that discussion is a reduction of the state communications services tax rate. SB 266 (Hukill) would reduce the state CST rate and the direct-to-home satellite rate by 2 percent. It does not include a reduction of the local CST rate but could have a negative fiscal impact on municipalities due to the distribution of some of the state CST and direct-to-home satellite revenues. 4 AGENDA ITEM# 6A JANUARY 13,2014 Supporte rs of th is p ro posa l say a red uc tion in th e rates wo ul d be benefic ia l to co nsume t'S d ue to the fac t that the c urr en t combined rate of th e gross receipts, state a nd loca l CST.t·ates are so high. Co ntact: Ambe r llughe s ahughes@ fl c it ics.com Revised: 11/2 1/20 13 •• 5 Legislative Priority 2014 LEGISLATIVE ACTION AGENDA Water Quality & Quantity AGENDA ITEM# 6A JANUARY 13, 2014 The Florida League of Cities SUPPORTS legislation addressing water quality and quantity issues that affect the economies of local communities. Specifically, the League supports effmts to revitalize and protect Florida's springs, aquifers, surface waters and estuaries. Background Florida water policy has evolved significantly as science and technical data have dramatically improved the ability to study Florida's ground waters, surface waters and the sources of pollution in these water bodies. With the evolution of science also comes revision to the decades old regulatory framework that has evolved into Florida water law. The Florida Water Resources Act of 1972, Chapter 373, Florida Statutes, established a form of administrative water law that brought all waters of the state under regulatory control. The Act included provisions for (1) the establishment of a state water regulatory agency and five water management districts (WMDs) that, taken together, encompass the entire state; (2) water planning requirements and (3) a permit system administered by the WMDs regulating water use, well construction, and the storage and management of surface water. CmTently, Florida faces a number of water quality and quantity conundrums. In nmth Florida, the continued and projected excessive water uses by the state of Georgia threaten entire fishing communities that have built their way of life around the flows of the Apalachicola River. In south Florida, an extraordinary rainy season has highlighted the current polluted condition of the waters in Lake Okeechobee and the impact of releasing that impaired water from the lake. Releases of that impaired water to the Caloosahatchee River, the St. Lucie River and the Indian River Lagoon contribute to reduced tourism and have a negative impact on the economies of those cities in close proximity to Lake Okeechobee, the St. Lucie, the Caloosahatchee and the Indian River Lagoon. Throughout the state we face a growing water quantity problem due to the withdrawals from the Floridan Aquifer and the lack of investment in storage and stormwater infrastructure investment. The Floridan Aquifer is one of the largest and most productive aquifer systems in the world. Due to a population surge in the central Florida region, recent studies show the current amount of water pumped each day from the aquifer can be increased only by approximately 6 percent. Consumptive uses throughout the state have left the aquifer depleted and unable to recharge. Local governments play an impmtant role in the planning of future water resources by working in cooperation with each of the five water management districts during the Regional Water Supply Planning process. In addition to the planning of future water resources, local governments also establish stormwater utilities that manage activities such as flood control, pollution control, permitting, maintenance, inspection and capital construction. Furthermore, cities across the state have adopted a 5 AGENDJ\ ITEM# 6A JANUARY 13,20 14 hos t o f ord inances des igned to pr even t po lluti on a nd inc rease a lte rnati ve wa ter s upp lies. Whil e ci t ies have many "too ls in th e ir too lbox" to e ns ure a c lea n a nd s ustain ab le wa ter reso ur ce for th e ir co mmuniti es, th e Legislat ur e co nti nues to pass laws th at chi p away at loca l gove rnm ent autho rity. C un·en t Status On Jul y I 0, 2 0 13 Senat e Pres id e nt Gae tz ann ounc ed th e c rea ti on of th e Se lect Co mmittee o n Ind ian Ri ve r Lagoo n an d Lak e Okeec hobee. The co mmittee, chai red by Sena tor J oe Negro n, was taske d w ith in ves ti gat in g public po licy, fundin g and oth er gove rnm e nt al ac tivities affect ing th e wate r manage me nt of La ke Okeec hobee. T he co mmitt ee has he ld three publ ic meetin gs to da te . c nator Negron has tasked th e water ma nage me nt di stri ct, as we ll as th e ge ne ral public, to co me up w ith s hort -term proj ects th at will improve wat er qu a li ty cornin g fr o m th e lake a nd e ns L1re tha t th e wate r re leased will n ow through th e Everg lades as or igina ll y in te nd ed. Unfo rtun ate ly, the state o f Flo rid a is at lh e me rcy of th e federa l governm e nt an d Arm y Corps of Engin ee rs in so me rega rd . T he Army Co rp s of Eng in ee rs ha s federa l ov ers ig ht o r th e wa te r re leases fr om Lake Okeechobee and th e da m th at s urro und s i t. In 2 01 3, th e s tate o f Flo rid a co mm itt ed $1 0 mi II ion do ll ars for spr ings pro tecti o n progmms . Loca l gove rnm e nt matc hin g fun ds have in crease d th e amoun t ava ilabl e fo r s pri ngs protec ti on initi ati ves to $3 7 mi ll ion. T he Depart me nt of Env ironm ental Pro tec ti on (OE P) is us ing th ese fund s to mi ti ga te th e damage fr om poin t so urce po ll uti o n fro m wastewater trea tm ent fac iliti es, remove wastewa ter s pray fie ld s that a rc cl ose to sprin g sheds and othe r s tr a tegies th at will re du ce ph osp horu s a nd ni trogen in impaired wa te r bodi es. Recent ly, DEP requ es ted a bud get all oca ti o n of$15 mil li on fo r sprin gs protec ti on fo r rv 20 14-20 15 . Th e F lo rid a Leag ue o f Citi es supp orts legislati on th at pro tects Flo ri da's wa ter bodi es thr o ugh increased fund in g for th e Tota l Max imum Da il y Load program, as we ll as the Bas in Ma nage ment Act ion Pl a n prog ram. The Leag ue w ill a lso co ntinu e to fig ht to pro tec t th e home rul e au t hor ity of c ities to a dopt local fertil izer ordi nances to pro tect the water qu a lit y of loca l wate rways. 20 14 is like ly to be a busy yea r with multipl e pi eces of legis lati o n fil ed th at dea l with wa ter qu al ity, wa te r qua nt it y a nd springs protec ti on . C ontact: Rya n Ma tth ews rm allh cws@ nc itics .c o m Rev ised: 11/2 1/13 6 Legis lative Priority 2014 LEGISLATIVE ACTION AGENDA Septic Tanlcs AGENDA ITEM I/6A JANUA RY 13 , 20 14 The Flo ri da Leag ue of Citi es SU PP ORTS fi nanci al and regul a tory init ialives that prior itize a nd en co ur age properties wit h se ptic tanks to co nnect to ce ntra li zed sewe r system s, especially in areas that impa c t ri ve rs, est uari es, fi rst mag nitud e sprin gs and imp aired wate r bodies . Background Ons ite sewage treatm ent and di sposa l system s, commo nl y re fer red to as septic ta nl<s, are a mean s of was te water d is posa l for roughl y 30 percent o f Pl orida's popu latio n. Properl y de s igned, co ns u·ucted a nd ma intained :o;ys te ms protect Flo ri da 's g round wa te r, which prov id es 90 pe rce nt o f F lo ri da's drinkin g wa te r. The ge ne ra l pr obl e m with sept ic ta nk s in th e state o f Plorida is th a t a la rge num ber of th ese system s are out-of-date and not in s pec ted o r c lea ned fr equ ently enough to prev e nt leak s. In 2002, th e Environmental Protec ti on Age ncy released a study ba se d on the es t im ates for the per pers on rel ease o f nitr oge n a day int o res ide nti al wa s tewater sys te ms . The stud y fou nd th at a pprox im ately 11.2 gra ms of nitr oge n per pe rso n pe r day were re leased. Of th e ll.2 g rams, roughl y 70-80 pe rcent of th at ori g ina ted fro m to ilet wa ste s; I 0-15 percent is food pr eparation ; a nd th e res t o ri g in ates fr o m ho useho ld product s . In c reased amount s of nit rogen in s urface wa ter bodie s ca n caus e eutrop hica ti on, which ca n have detrim enta l e ffects to sens iti ve aqLJ at ic ecosys!e ms. N itrogen so urces to th e e nvironm ent in c lud e: atmo spheri c depos iti on; fert ili ze r from both ag ri cultur al and res id ential la nd uses; li vestoc k wa s tewate r; muni c ipa l was te wate r tre atm e nt sys te ms; on site sewage trea tm ent and di sposa l system s, and storm water. The l;omb in at ion ofthcsc so ur ces add s up to a cumu lati ve nitro ge n load to gro und a nd s urfac e waters In 1984 , Florid a adopted a law, whi ch ma nd ated th a t a ll dra in lield s in new ly co ns tructe d ons ite treatm e nt and di spo sa l sys te ms had to be in stall ed to prov id e two feet of separat ion from ground wate r so urce s. C UJT e nt Statu s As o f I 0/3 1 I 13, no bi ll s th at direc lly ad dress se pti c tank s have been fi led. Senator S imm ons ha s re leased a d raft springs protection bill th at requires communiti es w ithin th e sprin gs hed of2 1 pre- dete rm ined sprin gs to ti e sep ti c tank ow ne rs int o cen tr a l sewer at no cost to th e res ide nt. The bill prov id es a rei mbur semen t for the local go ve rnm ent thr ough the d oc um e nt ary stamp tax co ll ecti o n. Contact: Ryan Ma tth ews rm atth cws@ nc iti es.co m Re vi s ed: 11/2 1/13 7 Legislative Priority 2014 LEGISLATIVE ACTION AGENDA ECONOMIC DEVELOPMENT AGENDA ITEM# 6A JANUARY 13, 2014 Recognizing that 89 percent of all business in Florida have 12 or fewer employees, the Florida League of Cities SUPPORTS legislation that dedicates state economic development resources to small businesses with an emphasis on technical assistance, access to capital, public infrastructure and urban in fill. Background According to the U.S. Bureau of Labor and Statistics, as of September 2012, Florida's current unemployment rate is 8.9 percent compared to 3.2 percent in 2006. These unusually high unemployment figures have motivated the Florida Legislature to focus intensely on the area of economic development as a way to restart Florida's economic engine and create more jobs for Floridians. Getting Florida back to work continues to be a major focus of Governor Rick Scott, who has pledged to create 700,000 permanent Florida jobs during the next seven years. One of the measures enacted to achieve these job creation goals was the creation of a new agency, the Florida Department of Economic Opp01tunity. This new agency is charged with coordinating economic development efforts to ensure Florida has a thriving climate for businesses that seek to start, relocate or expand in Florida. In 2013, Governor Scott's agenda focused on stimulating economic growth by streamlining business permitting, providing tax relief for manufacturers, reforming Florida's unemployment system, offering stability to Florida's businesses by balancing the budget without raising taxes and prioritizing science, technology, engineering and mathematics (STEM) education in the state. Legislative eff01ts relating to economic development have also focused on creating greater accountability and transparency of taxpayer-funded incentives. There is significant evidence showing that the bulk of job opp01tunities are created by small-to medium-size businesses, not large corporations. According to the U.S. Small Business Administration (SBA), 89 percent of all businesses in Florida have 12 or fewer employees. Not every city in Florida is the base of operations for a large corporation, but every city in Florida is the home to dozens of small businesses. Small business owners are the backbone of Florida's economy, but are often times overlooked or do not qualify for existing economic development incentives. Rebuilding Florida's economy should be a 8 AGENDA ITEM II 61\ JANUAR Y 13,20 14 "bott om up " process that statts wi th lo ca l econom ic developm ent and efforts to ret a in and grow s mall bu s in esses. Current Sta tus Economic develop ment continues to be a n imp ortant foc us for the florid a Leg islature, the Governor and ot he r important a nd innuential stak eholders. Floi·ida's cilies wi ll co ntinu e to engage th ese entities by dev eloping partnerships and collaborat ions and p rov idin g counsel on how bes t t o accomplish the ta sk of reb oundin g Flor id a's eco nom y. Contact: David Cruz, dc ru z@ n citi es .com Revised: 11 /2 1/2 0 13 9 2014 LEGISLATIVE ACTION AGENDA AGENDA ITEM# 6A JANUARY 13, 2014 Housing and Small Cities Community Development Block Grant Program (CDBG) Legislative Priority: The Florida League of Cities SUPPORTS legislation that requires state housing trust fund monies be used exclusively for funding local government affordable housing initiatives. The League also supports improving the CDBG program to maintain current funding categories with adequate verification safeguards to ensure grants will primarily benefit low-and moderate-income families, and suppmts maintenance of the CDBG advisory committee. Background: Florida's housing market has been one of the hardest hit in the country and Florida's cities have been at ground zero. Cities have not only had to face a record number of foreclosures, but have also encountered a decline in funding for affordable housing programs. In 1992, the Sadowski Act created a dedicated funding source for affordable housing programs. An increase in the documentary stamp tax paid on all real estate transactions funds the state and local housing trust funds. From those funds, 70 percent are directed to local governments in all 67 counties, and Florida's so-called "entitlement cities," to fund the State Housing Initiative Pattnership (SHIP) program. The remaining 30 percent of the funds are used by the Florida Housing Finance Corporation for programs such as the State Apartment Incentive Loan (SAIL) program. SHIP funds can be used for rehabilitation/renovation of existing vacant homes to transform neighborhoods into vibrant communities. In addition, SHIP funds can be used for down payment and closing cost assistance. SAIL funds may be used to rehabilitate existing low-income apmtments or construct new units for very low-income families. The Florida Small City Community Development Block Grant (CDBG) program is intended to provide the necessary means for municipalities to develop, preserve, redevelop and revitalize Florida's cities. The Small City CDBG program provides federally funded grants on a competitive basis to eligible municipalities in order to serve low-and moderate-income families. To be eligible for participation in the Small City CDBG program, cities must have a population of fewer than 50,000. Competitive grants can be awarded to assist with housing rehabilitation, water and wastewater improvements, and economic development projects that create jobs. For fiscal year 2012-13 Florida received more than $22 million in Small City CDBG funding. Florida's Department of Economic Opportunity (DEO) administers the federally funded Small City CDBG program. Current Status: An estimated $261.775 million will be appropriated into the state and local housing trust fund for fiscal year 2014-15. For the last four years, Florida's Legislature has used these trust fund monies to brace 10 AG ENDA ITEM II 61\ JANUARY 13, 20 14 budge t s hort fa ll s ra th er than fu nd th e SH IP and SAIL ho us in g progra ms. Fo r th e 'first tim e si nce 2 009, an alysts a re proj ec tin g a s tate budge t smp lu s o f $84 5.7 mi lli on for th e 20 14 -1 5 n sc a l ye ar. Wi th no budge t shortfal ls, it is criti ca l th at th e ho us in g tru st f und moni es be use d for th ei r in te nded purpose thi s yea r. If proj ec ted ho us in g fund s are full y in veste d into Florid a's loca l gove rnm ent housi ng programs, il is es tim at ed these fund s can c reat~ 26,4 00 j o bs and have a $2.7 bill ion in posi ti ve econo m ic deve lopm ent imp ac ts for Flori da 's cit ies. Th e Sa dowsk i I ro us in g Coa liti on, a nonp arti sa n coa liti o n of 26 di verse s tatew id e orga ni za t ions, strongly s uppo rts hav in g a ded ica ted 1·eve nu e so urce fo r F lorid a's a ffordabl e ho us in g pro gr ams. The DEO pla ns to fil e leg is lati on makin g severa l statutory t·ev is ions to the Sma ll C it y C DB G progra m in ord e r to redu ce o ut da ted, burde nso me or res tr ic ti ve req uirement s. Le g islati on draft ed by the DEO in coopera ti on with th e Leag ue a nd oth er sta ke ho lde rs d irec ts th e DEO to ma intain g ra nt ac ti viti es in fo ur s tatutory ca tego ri es: ho usi ng reha bil it ali a n, econo mi c d evelop ment, ne ighb orhoo d rehab ili ta tio n and co mm erc ia l rehabi I itation. The dra fl legis lati on was rev ised to retai n statu to ry auth ori za ti o n fo r a n advi so ry co unc il , a co mprom ise th at was suggested by the Le ague 's Gmwth Manage me nt and Eco nomi c Devel opm ent P oli cy Co mmitt ee . The League beli eves th at maint ainin g an acti ve ad viso ry co un cil co mp osed o f muni cipa l memb ers is criti ca l to a ll ow in g ci ti es to prov id e fee dbac k o n fu t ur e changes to th e prog ra m an d st rength en th e relati onship between c iti es a nd th e DEO. Co ntact: Dav id Cru z, dcrUL@fl c iti c s.co m Revised: 12110/20 13 I I Legislative Priority: 2014 LEGISLATIVE ACTION AGENDA Transportation Funding AGENDA ITEM# 6A JANUARY 13, 2014 The Florida League of Cities SUPPORTS legislation that preserves local control of transportation planning and provides opp01tunities for additional revenue options to fund municipal transportation infrastructure projects. Background: Currently, municipalities have limited revenue options for funding transportation projects. A major p01tion of transp01tation funding flows to municipalities through both the state and federal governments. Much of that funding is generated through a tax on gasoline. Recent data has shown that gas tax revenue at both the state and federal levels has decreased dramatically. A significant amount of the decrease in revenue is due to an increase in the number of fuel efficient vehicles on the road. More fuel efficient vehicles means less gas is being purchased, which means lower gas tax revenues. As vehicles will only become more fuel efficient, unlike other tax revenue that will increase once the economy improves, gas tax revenue is forecasted to continue to decrease over time. Compounding the problem is the fact that the federal gas tax was last increased in 1997, the state gas tax in 1943, the county gas tax in 1941 and the municipal gas tax in 1971. None ofthese taxes are indexed for inflation. Another issue compounding the problem is the lack of options for municipalities to increase revenue to fund local transportation projects. For example, charter counties may currently hold a referendum on whether to impose up to a 1 percent sales tax to fund transportation infrastructure projects. Municipalities lack such authority. This can be problematic when there are disparities between the transportation needs of municipalities versus those of the more rural areas of the county at large. For example, a referendum was held in Hillsborough County to enact such a tax. The tax was defeated countywide. However, if the election results are broken down by municipality, the residents of Tampa actually voted to approve the tax. Extending such options to municipalities would allow greater flexibility to fund their unique transportation needs. Current Status: There seems to be a general consensus that Florida's transportation infrastructure is badly in need of increased funding and modernization, or alteration, of the current tax structure. In the 2013 legislative session, both the secretary of the Florida Depattment of Transportation (FDOT) and the executive director of the Florida Metropolitan Planning Organization Advisory Council gave a presentation to the House and Senate Transportation Committees highlighting the current and future problems of 12 AGENDA ITEM # 6A JANUARY 13, 20 14 t ra nsportat io n f un d in g fac in g gove rnm ent s at all leve ls. Th e Flo ridn T ranspo rtati on Co mm iss ion is a lso in the pro cess of s tLJdyin g th e iss ue and reviewi ng a lt ern ati ve s to the ex istin g per-ga ll on tax on gaso line. No bill s were fi led durin g the 20 13 sess ion whic h wou ld have d irectly affe cted th e ex istin g rev enu e s tr ea m devoted to tran s portat ion. However , th e roOT wo rk program was fu ll y funded fo r th e 2 0 13-20 14 fi sca l yea r. T hrougho ut hi s te rm , Gove rn o r Scott has emphas ize d the importance of tran sportati o n to F lori da and th e states's eco no my . Th e s upport of th e exec utive branc h and th e increas in g awa r·eness of th e tra nspo rta ti on revenue pro bl em ma y lead to the iss ue bein g ad dressed in the 20 14 sessio n. Contact: Rya n Padgett rp adgett @Oc itie .com Re vised : II /2 1113 13 Legislative Priority: 2014 LEGISLATIVE ACTION AGENDA Ethics AGENDA ITEM# 6A JANUARY 13, 2014 The Florida League of Cities SUPPORTS legislation that provides for a judicious code of ethics for public officials to protect and preserve the public trust, provides a reasoned and balanced manner by which public officials may identify, disclose, and resolve (or otherwise avoid), conflicts between public duty and private interests, and recognizes the home rule authority of each municipality to independently adopt more stringent standards for its own public officials. Background: The state code of ethics provides a framework for the actions and activities of state and local government officials. The code covers various areas, including conflicts of interest, gifts, financial disclosure and other standards of conduct. Failure to comply with the state code of ethics can subject an individual to civil or criminal penalties, depending upon the severity of the violation. Many officials seek guidance on complying with ethics standards from the attorney to the officials' governmental entity. Officials who act in compliance with the attorneys' advice should be provided with a "safe harbor" from alleged ethics violations. Also, the ethics complaint process should not be used solely to further political or other unfounded purposes, and anyone filing a false ethics complaint with a malicious intent to injure the reputation of an official should be subject to a penalty. Current law allows a political subdivision to adopt at the local level more stringent ethics standards than those provided under the state code of ethics. However, one political subdivision should not be authorized to adopt more stringent ethics standards for officials of a different political subdivision. Current Status: There have not been any bills filed to date relating to local ethics standards, but League staff expects legislation to be filed on the issue in the coming months. Contact: Ryan Padgett Revised: 12/10/13 14 Legislative Priority: 2014 LEGISLATIVE ACTION AGENDA Sober Homes AGENDA ITEM# 6A JANUARY 13, 2014 The Florida League of Cities SUPPORTS legislation that defines and establishes statewide minimum regulatory standards for properties used for "sober home" purposes and allows for more stringent local regulation of such properties. Background: "Sober Homes" or "Halfway Houses" for individuals with drug and alcohol problems have been around for decades and provide needed transitional housing opportunities for people who are progressing through treatment for substance abuse problems. Several cities throughout the state have been experiencing increasing problems with sober homes. These homes are marketed as places where recovering addicts can come to "sober up" and be slowly phased back into society while getting treatment for their addiction. Lately however, cities have seen a proliferation of self-proclaimed "sober homes" that are run by unscrupulous landlords who are exploiting patients in order to make a profit. The Tampa Bay Times recently wrote a series of articles describing some of the problems these unregulated facilities are causing for both patients and non-patients alike in cities across the state. The investigation into Sober Homes by Tampa Bay Times senior correspondent, Susan Taylor Martin, uncovered a multitude of problems. Without licensing requirements, state regulations or oversight setting minimum operating standards, many sober homes operate in the shadows and are often "fly-by- night" type facilities. The Times article reported that " .... in some homes, residents are housed two to three to a room. This is a lucrative business if each person pays $500 per month, meaning a three- bedroom house with two residents per bedroom can bring in $3,000 per month. But residents don't get what they pay for." With no regulation from government agencies, setting up a sober home is as easy as renting a house to a few residents who pledge to live in sobriety and attend support groups. The operators of these illegitimate sober homes often advertise on the Internet as offering treatment on-site or providing transportation to off-site treatment facilities. Once residents arrive, they find that no treatment is offered and there is very little oversight by the owners of the sober home. Instead, residents are free to do whatever they choose, which for many means to hit the streets to find drugs or alcohol (and in one Delray Beach home attached to a bar, they don't have to go too far). Law enforcement officials have seen increases in crime and homelessness in neighborhoods where these sober homes have located. Residents of these neighborhoods have reported an increase in burglaries, panhandling and even some instances where the sober home operators are openly using or selling drugs out of the sober home. As a result of the lack of uniform state standards or regulations for "sober homes," there are some houses that are nothing more than a group of individuals living together abiding by self-imposed rules 15 AGENDA ITEM II 61\ JANUARY 13 ,20 14 of sobr iety, whil e ot he r houses arc operating jus t s hy of adm ini ste ring treatme nt on-site and flying under the radar of the Department of Childre n a nd Families (OCF) because th ey are not "forma ll y affiliat ed with" a "lice nsed serv ice provider." (Th ose ho uses that are affil iated with a li ce nsed Se rvice Prov id e r are c urrentl y r eq uir ed to be li ce nse d by DCF, whi le homes not affil ia ted w ith a li ce nse d service provider a re not required to be licensed by DCF). T herefore, the League wi ll be sup po rting effotts to c learly define sober homes in statu te and a ll ow for the regulati on of th ese fac iliti es. Sober horne s will continu e to be a pr ob lem for c it ies and law e nforce ment in Florida unt il th e Legis lature decides to act and place minimum operat in g sta nd ards for th ese places into statut e. SB 738 (C le mens) and HB l 089 (Gra nt) we re fil ed to add ress the so ber home iss ue in 20 13, but bo th bill s died in co mmittee. T here was la nguage in se rted into SB 1500 , the Genera l Appropriations 1\c t, requ irin g th e Department of Children and Fam ili es to st ud y the possible lice nsure of sober homes in Fl or ida. DCF he ld three publi c hear ings ove r th e s umm er and submitted a repor t to th e prcsidenl of the Se na te, th e s peaker of th e House and the governo r o n Oc tober I, 20 13. The report liste d w ha t o th er sta tes are doing in regard s to so ber home regu la ti o n, o r th e lack th e reof, but ul ti mate ly co nc lud ed that furth e r study of th e issue was needed prior to mak in g recommendation s. Status: There have not been any bi ll s filed to elate dealing wi th sobe r homes, but Leag ue staff expects legi slat io n to be filed on th e iss ue in the co min g mon th s. Contact: Casey Coo k, ccook@.n ci ties .com Rev ised : I I /2 1/20 13 16 Legis lative Priority: 2014 LEGISLATIVE ACTION AGENDA Vacation Rentals AG EN DA ITEM II 6A JANUARY 13,20 14 The Flo rid a League of C iti es SU PP ORTS legis lation that repea ls th e s late preempt ion of th e regul a ti on of vacat ion rental properties in ord e r to all ow loca l gove rnm ents to reg ul ate such prop erti es to protect th e hea lth and wei fa re of th eir reside nt s, vis itors, a nd businesses. Bacl<ground: In 20 I J, th e Flori da Legis la ture passed liB 883 , whi ch preempted loca l governm ent s from reg ul ati ng vacat io n renta ls. Proponents of the bill cla im ed th a t ci ty ordinance s regul at in g vacation ren tal s we re too restri cti ve, eroded private property ri ght s and di scou ra ge d investme nt in the housi ng marke t . C iti es throughout Florid a had see n deve lope rs e ncroachin g o n res idential ne ighbo rh oods with comme rcia l deve lopment, replacing existing ho uses with very large houses mea nt onl y fo r re nte rs. These large vacat ion renta ls we re essenti a ll y o pe rat in g as hote ls in residential neighbo rh oods. As a res ult of these buildin gs opera tin g as hote ls, c iti es across th e state ri g htfull y attempted to regu late them as suc h. They bega n regul ar inspec ti ons a nd impos in g ot her regu la li ons, s uch as parking or fir e code sta nd a rd s. llote ls pay bed taxes and a rc zo ned as com merc ia l prope rtie s; vaca ti o n re nta ls a re not. Citi es mentioned that to o littl e ove rs ight cou ld expose guests to dangerou s s ituation s, crea te un fa ir co mpe titi o n in the touri sm indu str y, a nd rob th e state a nd loca l govern me nt s of tax dollars. La te in the 20 II sess ion, provisions we re add ed to HB 883 that a ll owe d cit ies with vacat ion re nt a l o rdinan ces in place by Jun e I, 20 1 l to reta in those ordi na nces. Whil e thi s "grandfathe r•· prov is ion he lped, new probl ems have e merged w ith vacation re ntal s and many c ities are re lu ctant to amend the ir o rdi nance ou t of fea r of vo idin g the ir ex istin g Ol"din a nce. C urrent Sta tus: The Florid a League of Ci ti es t es tifi ed in opposit ion to the pree mpti on bill du rin g th e 20 I I leg islative sess ion a nd arg ued th at the legis latio n wo uld mak e it impo ssi bl e for c ities to c raft so luti ons to loca l probl ems assoc iated w ith th ese properties. The re have no t bee n any bill s fi led to- date dea ling with vacati on renta ls, but Se nato r John Thra s her and Repres e nta tiv e Travis Hut so n were recent ly qu oted in a Daytona Beach News Journal artic le say ing th at they w ill be filing bi ll s thi s year to remove t he preemption fr om sta te Jaw. Co ntact: Casey Cook, ccoo k@llciti es.co m R e vised : 11 /2 1/13 17