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Item K07BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: December 9, 2015 Bulk Item: Yes xx No Division: Commissioner Neuaent Staff Contact: Terri Colonna — x4512 AGENDA ITEM WORDING: Approval of a resolution expressing the support of the Monroe County BOCC for the current funding distribution formula for the Triumph Gulf Coast Recovery Fund. ITEM BACKGROUND: The Deepwater Horizon oil spill on April 20, 2010 affected all 23 of Florida's Gulf Coast counties, including Monroe County, though eight of panhandle counties -- Bay, Escambia, Franklin, Gulf, Okaloosa, Santa Rosa, Walton, and Wakulla counties - were disproportionately affected including but not limited to having oil wash up on their shorelines. The State settled its economic loss claim with the responsible parties for $2 billion. The Legislature earmarked $1.5 million of that $2 billion to be spent in the 8 disproportionately affected counties. The Legislature also created a nonprofit corporation - the Triumph Gulf Coast, Inc. - to administer the $1.5 billion trust fund known as the Recovery Fund. See, F.S. 288.8013. Monroe County has partnered with the 23 counties to form the Gulf Consortium. During a Consortium meeting held on November 18, 2015, representatives of the eight disproportionately affected counties expressed concern that the Legislature - under pressure from senators and representatives from other areas of the state - might rewrite the Iegislation to divert some of the $1.5 billion to other parts of the state. The resolution expresses the support of the Monroe County Commission for the current statutory funding formula. The resolution is intended to be an expression of support and solidarity with the 8 counties most affected by the oil spill. PREVIOUS RELEVANT BOCC ACTION: n/a CONTRACT/AGREEMENT CHANGES: n/a STAFF RECOMMENDATIONS: n/a TOTAL COST: none INDIRECT COST: COST TO COUNTY: none SOURCE OF FUNDS: REVENUE PRODUCING: no AMOUNT PER MONTH APPROVED BY: County Atty/yOMBIPurchasing DOCUMENTATION: Included X Not Required DISPOSITION: Revised I/09 BUDGETED: Year Risk Management AGENDA ITEM # Mayor Pro Tern Neugent RESOLUTION NO. - 2015 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA EXPRESSING SUPPORT FOR THE CURRENT FUNDING FORMULA FOR TRIUMPH GULF COAST, INC. AS ESTABLISHED UNDER F.S. 288.8013, UNDER WHICH THE EIGHT COUNTIES THAT WERE DISPROPORTIONATELY AFFECTED BY THE DEEPWATER HORIZON OIL SPILL WILL BE THE BENEFICIARIES OF SEVENTY-FIVE PERCENT (75%) OF ALL FUNDS RECOVERED BY THE STATE OF FLORIDA; PROVIDING DISTRIBUTION INSTRUCTIONS AND AN EFFECTIVE DATE. WHEREAS, the Deepwater Horizon disaster began on April 20, 2010 with an explosion and sinking of the Deepwater Horizon oil rig that killed 11 people and spewed an estimated 4.9 million barrels of oil into the Gulf of Mexico over the course of 87 days; and WHEREAS, all 23 of Florida's Gulf Coast counties, including Monroe County, were impacted to some extent by the oil spill; and WHEREAS, eight of Florida's Gulf Coast counties -- Bay, Escambia, Franklin, Gulf, Okaloosa, Santa Rosa, Walton, and Wakulla counties - were disproportionately affected by the oil spill including but not limited to having oil wash up on their shorelines; and WHEREAS, the State of Florida filed suit against BP Exploration & Production, Inc. and other responsible parties in 2013; and WHEREAS, that litigation resulted in a settlement of $3.25 billion: including $2 billion for the State's economic loss claim; and WHEREAS, in 2013, the Florida Legislature enacted § 54, Chapter 2013-39, Laws of Florida which created a non-profit corporation known as Triumph Gulf Coast, Inc. for the purpose of administering the "Recovery Fund", a trust fund established to administer 75% of the money recovered for economic loss damages or $1.5 billion for the benefit of the eight disproportionately affected counties; and and WHEREAS, § 54, Chapter 2013-39, Laws of Florida, is now codified at F.S. 288.8013; Page 1 of 2 Mayor Pro Tern Neugent WHEREAS, in recognition of the economic hardships suffered by the eight disproportionately affected counties as a result Deepwater Horizon oil spill, the Monroe County Commission fully supports the current funding formula set forth in F.S. 288.8013 for use of Triumph funds in the eight disproportionately affected counties. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA THAT: 1. Monroe County fully supports the current funding formula for Triumph Gulf Coast, Inc. as set forth in F.S. 288.8013 that sets aside $1.5 billion for use in the eight counties disproportionately affected by the Deepwater Horizon Oil spill. 2. The Clerk is directed to send copies of this resolution to: a. Governor Rick Scott; b. The Monroe County Legislative Delegation; c. Speaker Steve Crisafulli, Florida House of Representatives; d. President Andy Gardiner, Florida Senate; e. Members of the County Commissions of Bay, Escambia, Okaloosa, Santa Rosa, Walton, and Wakulla counties; f. The Directors of the Gulf Consortium; and g. Ginger Delegal, Interim Director of the Gulf Consortium. 3. This resolution shall take effect upon adoption. Franklin, Gulf, PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of the Board held on the 9'h day of December, 2015. Mayor Heather Carruthers Mayor Pro Tern George Neugent Commissioner Danny Kolhage Commissioner David Rice Commissioner Sylvia Murphy (SEAL) Attest: AMY HEAVILIN, CLERK BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By: By: Deputy Clerk Mayor V. T. COUNW . -E 111231Zt:115 Statutes & Constitution Mew Statutes online Sunshine Select Year: ` 2015 •• 1 Goo .. � .rc....... The 2015 Florida Title XIX Chapter 288 View Entire PUBLIC COMMERCIAL DEVELOPMENT AND CAPITAL Chapter BUSINESS IMPROVEMENTS 288.8013 Triumph Gulf Coast, Inc.; Recovery Fund; creation; investment.— (1) There is created within the Department of Economic Opportunity a nonprofit corporation, to be known as Triumph Gulf Coast, Inc., which shall be registered, incorporated, organized, and operated in compliance with chapter 617, and which is not a unit or entity of state government. Triumph Gulf Coast, Inc., may receive, hold, invest, and administer the Recovery Fund in support of this act. Triumph Gulf Coast, Inc., is a separate budget entity and is not subject to control, supervision, or direction by the Department of Economic Opportunity in any manner, including, but not limited to, personnel, purchasing, transactions involving real or personal property, and budgetary matters. (2) Triumph Gulf Coast, Inc., must create and administer the Recovery Fund for the benefit of the disproportionately affected counties. The principal of the fund shall derive from 75 percent of all funds recovered by the Attorney General for economic damage to the state resulting from the Deepwater Horizon disaster, after payment of reasonable and necessary attorney fees, costs, and expenses, including such attorney fees, costs, and expenses pursuant to s. 16.0155. (3) The Recovery Fund must be maintained as a long-term and stable source of revenue, which shall decline over a 30-year period in equal amounts each year. Triumph Gulf Coast, Inc., shall establish a trust account at a federally insured financial institution to hold funds and make deposits and payments. Earnings generated by investments and interest of the fund, plus the amount of principal available each year, shall be available to make awards pursuant to this act and pay administrative costs. Earnings shall be accounted for separately from principal funds set forth in subsection (2). Administrative costs are limited to 2.25 percent of the earnings in a calendar year. Administrative costs include payment of investment fees, travel and per diem expenses of board members, audits, salary or other costs for employed or contracted staff, including required staff under s. 2$ .8014(9), and other allowable costs. Any funds remaining in the Recovery Fund after 30 years shall revert to the State Treasury. (4) Triumph Gulf Coast, Inc., shall invest and reinvest the principal of the Recovery Fund in accordance with s. 617.2104, in such a manner not to subject the funds to state or federal taxes, and consistent with an investment policy statement adopted by the corporation. (a) The board of directors shall formulate an investment policy governing the investment of the principal of the Recovery Fund. The policy shall pertain to the types, kinds, or nature of investment of any of the funds, and any limitations, conditions or restrictions upon the methods, practices, or procedures for investment, reinvestments, purchases, sales, or exchange transactions, provided such policies shall not conflict with nor be in derogation of any state constitutional provision or law. The policy shall be formulated with the advice of the financial advisor in consultation with the State Board of Administration. (b) Triumph Gulf Coast, Inc., must competitively procure one or more money managers, under the advice of the financial advisor in consultation with the State Board of Administration, to invest the principal of the httpJANww.leg.state,fl.us/stattAesAndex.cfm?App_mode=Display Statute&Searchr Strirmj=BURL=0200-029a102881SecUons/0288.8013.html 1P 11/23f2015 Statutes & Conslitulion Mew SWUm : Online Sunshine Recovery Fund. The applicant manager or managers may not include representatives from the financial institution housing the trust account for the Recovery Fund. The applicant manager or managers must presei a plan to invest the Recovery Fund to maximize earnings white prioritizing the preservation of Recovery Fun principal. Any agreement with a money manager must be reviewed by Triumph Gulf Coast, Inc., for continuance at least every 5 years. Plans should include investment in technology and growth businesses domiciled in, or that will be domiciled in, this state or businesses whose principal address is in this state. (c) Costs and fees for investment services shalt be deducted from the earnings as administrative costs. Fees for investment services shalt be no greater than 150 basis points. (d) Annually, Triumph Gulf Coast, Inc., shalt cause an audit to be conducted of the investment of the Recovery Fund by the independent certified public accountant retained in s. 288.8014. The expense of such audit shall be paid from earnings for administrative purposes. (5) Triumph Gulf Coast, Inc., shall report on June 30 and December 30 each year to the Governor, the President of the Senate, and the Speaker of the House of Representatives on the financial status of the Recovery Fund and its investments, the established priorities, the project and program seLection process, including a list of at( submitted projects and reasons for approval or denial, and the status of alt approved awards. (6) The Auditor General shalt conduct an operational audit of the Recovery Fund and Triumph Gulf Coasl Inc., annualLy. Triumph Gulf Coast, Inc., shall provide to the Auditor General any detail. or supplemental dal required. History. --s. 54, ch. 2013-39; s. 7, ch. 2014-218. Copyright r&J 1995-2015 The Florida Legislature - Privacy Statement a Contact -Us httplAwww.leg.sUe.fl.uststatLdwdirdex.cfm?App_jnode--Display__PtatLAe&Swch—String=&URL--0200-029%VA38ISechortslO2BB-8013.htrnI 212