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Item P4 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: October 17, 2014 Division: County Administrator Bulk Item: Yes No X Staff Contact/Phone#: Lisa Tennyson, x 4444 AGENDA ITEM WORDING: Update on RESTORE Act and final Treasury rule, and direction for proceeding with the Multi-Year Implementation Plan. ITEM BACKGROUND: 1. Recap on RESTORE Act(all pots). 2. Update and status on Monroe County's RESTORE Act Local Committee, Monroe County's Local Pot allocation, Monroe County's Local pot project selection process, and Treasury Department's requirements for accessing the County's Local Pot funds, including development of a"Multi-year Implementation Plan." 3. Direction from BOCC with regard to options for development of WIP(in-house or contract out.) 4. Direction from BOCC with regard to option for applying for a planning assistance grant from Local Pot allocation to cover costs of developing the plan. PREVIOUS RELEVANT BOCC ACTION: • November 20, 2013 BOCC approved re-opening application cycle and extension of application closing date (December 20,2013). • July 17, 2013, BOCC approved application form and application cycle opening and closing dates (August 30, 2013). • April 17, 2013 BOCC approved Resolution 129-2013 clarifying voting requirements for Local Committee members. • May 15, 2013 BOCC reviewed and discussed guiding principles and project selection criteria for Local Pot and requested that the Local Committee consider them. (Committee subsequently reflected those in its application and scoring rubric.) • March 20, 2013 BOCC approved its six appointees to Committee; the five municipalities also appointed their representatives to Committee. • February 20, 2013 BOCC adopted Resolution 094-2013 creating Monroe County Restore Act Advisory Committee, and its purpose, duties, and responsibilities. • January 16, 2013 BOCC finalized direction on make-up of local committee. • December 11, 2012 BOCC held Special Meeting to introduce RESTORE Act, and discuss the creation of a local committee,the composition of that committee, and project selection process. (Local Committee has met five times; meeting dates: May 16, 2013; June 12, 2013; June 281, 2013; November 8, 2013; September 26, 2014.) CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATIONS: TOTAL COST: INDIRECT COST: BUDGETED: Yes No DIFFERENTIAL OF LOCAL PREFERENCE: COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Ye o AMOUNT PER MONTH Year APPROVED BY: County AtVN OMB/Purchasing Risk Management DOCUMENTATION: Included Not Required DISPOSITION: AGENDA ITEM 4 Revised 7/09 P4. 10/15/2014 iii morm". ,_ . , - RESTORE Act Program Update �, Monroe Countypl sok Board of County Commissioners 1 1i Lisa Tennyson. Monroe County • Erin L. Deady, AICP. Esq. t` October 17. 2014 Overview 1. Introduction 2. Various Funding Pots 3. POT 1 and Local Process to date 4. Final Treasury Regulations °� ' �, and Process for Accessing -# - .�,*'C' "", Pot 1 funds fi ,. c 5. Settlement Update .. t , 6. Next Steps , c ' -� ';: ' g 1 10/15/2014 FLOW OF FUNDS FROM DEEPWATER HORIZON OIL SPILL Flow of Oil Spill Funds `esolutan of;?ra,a``,,, in FloridaII .` Cor tierlanc, Natural Res J.'Ce Damage or s;:e;sxm LA aftt MOMINMEIMONI otrtaca.rrtotagM doetn M71.11: w r. �..awr ara.,aaa .J a. ' 1, aa, Pa l.a •Mai Matra)4 w CNcae^�T ...... .,,, I (7.NMfiIaYONbytCCrM Gae C.....y. ir.Imoad* Ibpot.'. aldafflyen0 dal CYO lob mon IT'S SIMPLE! FLOW OF FUNDS FROM DEEPWATER HORIZON OIL SPILL— Quick Recap Criminal Penalties: NFWF Flow of Oil Spill Funds7 �.. 4 in Fltinda-, _ kilictiltef Ocean 1ua' vancy ca.mt aax,:.<e / Damage r.sxssn.ent - At J ... ,*ram , ,` / 1 1 ill 1 i • SIMI i 'fr.'; '''a41.,17!:7•7•M OPA Responsible party pays Civil Penalties for Violating CWA —RESTORE Act restoration costs:NRDA 2 10/15/2014 EARLY RESTORATION : NRDA • Who: The Oil Pollution Act authorizes NRDA to assess and restore injuries after an environmental injury event. > i., •..o.,, The funding relies on the cooperation of the responsible :,o' si"�> ® parties,which are obligated under the OPA to cover the ,:, , ME c,1 11 costs of restoration. So. NRDA trustees sought funds �� from BP and other responsible parties. I 't- 1 • Amount: $1B -- $500M split equally among the five • �. Gulf States ($100M to Florida), S100M to NOAA, •• am _ $100M to Interior, $300M to fund additional state aV — :�: projects selected by the Trustees. Beyond "early ��' ® restoration" — NRDA still assessing full extent ofinjuries,could take several more years to complete. • Process: NRDA determines projects.All projects must be directly related to injury. • County Actions: None; no injury,so no requests submitted.All projects have been in Panhandle. • CRIMINAL PENALTIES: NFWF • Who: Most of the criminal penalties are being directed to the National Fish and Wildlife Foundation (NFWF) which has created a new fund called the "Gulf Environmental Benefit Fund". .;,:.-.,, ,..-is --- `°' • Amount: BP and Transocean's criminal settlements i direct a total of $2.58 to NFWF -- $356M to Florida OM NM 11...M.1.11111111M �� projects over the next five years. '- NI — • Process: Funds are to be used for environmental gill: • • ® •:s projects that remedy harm or reduce the risk of harm to is natural resources that were impacted by or within "reasonable proximity to impacts from the oil spill. All approved projects for Florida have been in Panhandle. • County Actions: Multiple discussions with NFWF related to the County's water quality projects, but they don't fit criteria. A number of applications have been submitted from environmental organizations within Monroe County, such as Bonefish Tarpon Trust and the Nature Conservancy. 3 10/15/2014 Civil Penalties: RESTORE ACT • The RESTORE Act (2010) direct 80% of all civil fines or penalties to be directed back to the impacted communities. and set up a framework for the new program. This is the first time that such funds were directed back to impacted na.aasorrun ® 0 communities. Impacted communities are all of those OM 1, - =•'• communities that abut the Gulf, irrespective of whether or MI ir 4 *ig• not they were"oiled." A , • Within the RESTORE Act program, there are 5 pots or IIVIAMIIII CE ` buckets of funding to restore and protect the natural iiiik• I. -1 resources, ecosystems, fisheries, habitats, beaches. _ S� ' wetlands and economy of the Gulf coast region. �. 90••- • ---- - The pots most impactful for the County are Pots 1, 2, and 3 Iv (the 'local pot", the "consortium pot" and the "council pot" respectively.) Each of these pots is unique and will be addressed in the following slides. • Pots 4 and 5 will be used for research and monitoring and will be directed to the NOAA Gulf Restoration Science Program and the Centers of Excellence in each State. In Florida, that is FIU. (This power point will not be addressing these buckets in any greater detail.) RESTORE Pot 2 = Federal Pot= Council Allocation • Who:This pot is controlled by the Gulf Coast Ecosystem Restoration Battairleal EMI , 5 Council, 11 members on the Council -- representatives of the Governors of each of the five Gulf states(FI,Al,Miss,La,and Tx)and Msix federal agencies(Commerce,Interior.DHS,EPA,Ag,Army.) MI r ii, •0 IIII • Amount: $240M. M dill • Guiding Document: Projects must be consistent with the Council's Comprehensive Restoration Plan (environmental, restorative of the ■ Gulf waters and ecosystems,large scale.etc.) ** )® . up • Process: In August, the Council issued application submission and _ evaluation guidelines. Projects must be nominated by one of the ® r �• •_ Council members.We are uncertain how this nomination process will �. s:_. work, or how it will utilize the applications that were previously submitted into the DEP portal.Florida will have opportunity to send up 5 projects. • County Actions: Guiding Document: . The County offered formal comments to the Council's draft Comp COMPREHENSIVE Plan; RESTORATION PLAN County officials met with Council's ED to offer concerns/rec on 240M Council procedures and Treasury rules; Amount$ , County submitted WQ projects into the DEP portal; (Gulf-vide) County officials met with Gov's rep on the Council,Mimi Drew,with the Gov's office and with DEP on several occasions to highlight our WQ projects for council funding consideration,including as recently as last month 4 10/15/2014 RESTORE Pot 3=Gulf Consortium Pot= Impact-based State Allocation Awausa�wa ,: • Who: The Gulf Consortium. an intergovernmental group ofthe 23 nam in .. Gulf coast counties in Florida will plan how to spend Florida's share of tor 4,- •m IN this pot. Monroe County is a member of the Consortium. Commissioner Neugent is the County's rep on the Consortium,and for the past two years has been appointed to the Executive Committee. • Amount $240M will divided among the five states according to a �1� formula based on pop, distance from rig and miles of oiled shoreline. �� The amounts for each state have not yet been determined. �val.. •�■ • Guiding Document: The Gulf Consortium must develop a State ---� • — er Expenditure Plan,which will determine how the funds will be spent. • Process:Not yet developed.Project criteria,selection and application process will be determined as part of the drafting of the SEP. Document: • County Actions. GTE EXPENDITURE Member of GC: . Member of Executive Committee; STA PLAN(SEP) >• Member of SEP Firm Evaluation Committee; u Amount:$ ?M for > Regular attendee at monthly GC meetings; Florida � ➢ Hosted a GC meeting last spring highlighting Keys WQ needs /�, and importance to Gulf, Major presentation to GC on County-wide water quality issues and priorities. RESTORE Pot 1 = Local Pot = Direct Component • Who: Monroe County will determine how to distribute the `a ac^`�`ax - �^ funds in this pot. All funds must be expended in nN�a ""'• accordance with the Restore Act. Treasury rules, and rt... federal grant guidelines. The Department of Treasury will _ administer the local pot. -mit ��� • Amount: $1.16M. • —is • Guiding Document: To access these funds, the County VII; A• Om r will have to develop a Multi-Year Implementation Plan. i� ."oir �• • County Actions taken/Process required: '•''='- - . ➢ Local Committee/Public Input; > Project criteria and selection process; Guiding Document: ➢ Evaluate and rank projects; MULTI-YEAR ➢ Develop an MYIP;submit it to Treasury. IMPLEMENTATION • ➢ After Treasury provides letter to proceed, each individual PLAtI ii project listed in the MYIP must complete and submit a Amount:$1.16M for federal grant application. r Monroe Technical process requirements of Treasury (OSA, online grant management system registration and trainings.) 5 10/15/2014 Local Pot Process to Date • BOCC: • Convened Local Advisory Committee— (reps from all county districts and municipalities)to make recommendations to BOCC on how to distribute local pot dollars. • Passed Resolutions for by-laws and voting conflicts • Assigned staff member to coordinate and facilitate local response • Established guiding principles;discussed and made recommendations to local committee for project evaluation criteria • Local Advisory Committee: ➢ Met 5 times; ➢ Refined criteria in accordance with guidance from BOCC; > Developed project application with point system reflecting criteria; ➢ Conducted a solicitation process(46 applications with a total request of over $71 M); > Waited for final Treasury regulations before proceeding with project evaluation and ranking; Reviewed final Treasury rules,federal grant requirements,request to applicants to self-assess for capacity;and • Set project scoring and ranking meeting for December 11 and 12,2014. Local Committee Members • Dr. Patrick Rice, Chair BOCC District 1 • David Makepeace, Vice-Chair BOCC District 4 • Ed Swift, BOCC GC Director Appointment • Bill Kelly, BOCC District 2 • Todd German, BOCC District 3 • John Halas, BOCC District 5 • Councilmember Mike Forster, Village of Islamorada Council • Mayor Dick Ramsey, City of Marathon • Commissioner Ryan Schraffenberger, City of Key Colony Beach • Councilman Bill Murchie, City of Layton • Sarah Spurlock, City of Key West, Ass't City Manager 6 10/15/2014 Local Pot Project Criteria Statutory Project Requirements: BOCC Guiding Principles. 1.Each project is'designed to restore and protect the • Project must meet the eligible uses and funding natural resources,ecosystems,fisheries,marine conditions in the Act,and any Treasury requirements. and wildlife habitats,coastal wetlands,or • Projects provide positive direct environmental and/or economy of the Gulf Coast;" economic benefit to Monroe County 2.Each project carries out one or more of the allowable • Projects are consistent with local government uses; comprehensive plans and community priorities. • Restoration and protection of natural resources, • Projects incorporate other funding partners to fully ecosystems.fisheries.marine and wildlife habitats. leverage RESTORE funds • Mitigation of damage to fish,wildlife,and natural • No project can encumber all of the available funds in resources • Implementation of a federally approved marine/coastal the local pot. management plan,including fishenes monitoring • Workforce development and job creation Project Evaluation Criteria: • Improvements to state parks in coastal areas affected by • Need/Impact:20 points the oil spill • Infrastructure projects benefitting economy or ecological • Financially Feasible,Cost-effective,Match:15 points resources,including ports • Technically Feasible:5 points • Coastal flood protection and related infrastructure • Ready to Implement 10 points • Planning assistance • Completion Timetable:10 points • Promotion of tourism.including recreational fishing • Measurable Environmental Benefits:10 points • Promotion of consumption of seafood harvested from • Measurable Economic Benefits:10 points the Gulf Coast region 3 Projects were selected based on"meaningful"or • Measurable Community Resilience Benefits:5 points "broad-based"public input; • Complements Existing Efforts/Plans,Publicly 4.Projects that are designed to protect or restore natural Supported:5 points resources must be based on the"best available • Complies with Federal,State,and Local regulations: science." No points,all projects must demonstrate this. • Demonstrated capacity to meet and manage federal grant requirements:10 points Local Pot Project Submissions reOr•110 Mr Orr.rgrrr•Nrerinr AS*ar.ra or.. Orr*Parr ;roar ._ u.•• fr Ne,. rr.r MWrrf rrfr.r.Ira ! .__R�_.—M rraI��•r.�.�(yyi�,�r,r ,wr—�i _ rrr/'•arl4•w+ti�ilY— Jwr�.//.r� r�• 1.0rl01110a10�rerr•,�arr4� Snrr ar rim• - ..�•�r aol. 1a rr\ arr bra Or M a•rt r�r•arra.+ —__ q rrer.-.wor'Lw}rr. �� rro Y :23 ir.rrreamr,0 Mania �� wr�� W�rur _rd.aa. —.. = 2 r.* r •.arOrs.Oa rr+.rrar . rY Z r• tl.rr r -- f.r�. •' irr..e..rr.Yrrr..rrfi..r/rr.r r/r M p22 rl�0�try�jeeriTr.'1Mra^�r�a�(�r��pwr� I. ^w��r�__ � rri�rrlrWtrr ram Olgre�lw�wO ran error tiw; = O. rY ,S • MrrY�Vrr/e ri r ar, O. r Orore �, or frr.r�rrr Mrr..r Ara ff..r Manna r.rrarrrrrr Warr. rare I. r\\ T11r �- � rrrrrrrrr rirr �'�F+T aOt i� rrr ...or arr a .< ' r r...• A. Ma Y IYw} (a•.rr��! �rrI,Y•�.. WWorir..:e� /r� .Yrrr r Mwr•r a ,WMr aY n fYrj ♦•ram r dslrrw.rr�.r..r l.Yrriru Marl Yrl ut, 11 Oa rar Marl arils MOO irarsima or forr:OL agar re 0, as.war 01110•10re =� l .fora x lK .r�errYr.r.r it r 22CAE° ..... r..rY.72;3.,.... •'Car: Lwr ...s......” Orr.fry+r a.�r•;.0 r•r•rra*roar 0w;arr.. 4;Ti w r.r driii.•r.a.rrr r,_.�r�ra rM —won crsrOrrr'rr..r.a�. - m—a: .. e.,.e r. Mew ..r r....,r .....rrr. .,.rr.r, r ,.,. —> .; ei r orarroworerarramarraareamorsoraro raw.oar.*ao araarror era.re Olo rear 10/15/2014 Interim Final Treasury Rule: Program Requirements Rule release: 8/15, Comments due: 9/15. Effective 10/15 Confirmed that RESTORE will operate as a federal grant program yor —mot Established process for accessing local pot dollars Direct Component"Guidance"and Application—Submit to Treasury Multi-year Implementation Plan-Narrative and Project Matrix -Best Available Science, Meaningful Public Input(45 day posting) Project Grant Applications Each eligible activity requires a separate grant application Plans will be phased or incremental over time to match settlement disbursement amounts Treasury Rule Requirements for Projects Federal Grant Requirements Apply OMB Federal •- Environmental Assessment Binding Grant Regulations of"Risk" Agreements Requirements Financial stability. Auditing Ability to meet grant NEPA,CZMA,ESA, mgt standards, Applicants will be Magnuson,MMPA, History of required to meet all CWA Performance.Audit requirements in an Reports and Award Agreement Allowable Costs Findings Clear Project Procurement vs Su Schedule.ClearOutcomes and Award Milestones State Environmental Recipients of funds Permitting,Chapter for projects will be • 373&403,F.S Stringent bound by same Reporting and Performance and requirements recordkeeping B Reporting Standards 8 10/15/2014 Commenting on the Regs What We Anticipated and Got ©Interim Final Rule (parts go into effect immediately, also allowing for more input) ©Advance money for planning (grant applications for planning efforts) ©Plans can be phased, incremental and modified over time ©Treasury's view of NEPA (and MYIPs) ©Subawards and responsibility of local governments over them ©Additional policies and procedures to be developed over time ("guidance") ©Planning activities are broad (includes public engagement), not subject to 3% cap On the Horizon: Rules and Guidance — Important things we still don't know. . . Unresolved Best Available Domen NEPA-further The-all bets Issues J Science forcu Projectstation Rule are off development provisions --- Treasury has to Guidance for adopt its version of tlemonstraliltg Substantiating Categorical 1 Waivers from Uniform Grant BAS in 'eligible activities' Exemptions Rules Guitlance • applications May be by furthers Further Permitting Environmental g— Pre-award costs rule or'Guidance'I modifications to document documentation Assessment Rules Wrh cp lbidno n` Environmental mpact Statements What will it cost to set up the grant Previous analyses management system? How are plans modified or updated? 9 10/15/2014 Update on Litigation with BP • Three phases of litigation: — Phase I-determine the liability of BP, Transocean, Halliburton, and other companies and if they acted with gross negligence and willful misconduct(February 25, 2013-April 2013). — Phase II-how much oil spilled into the Gulf and who was responsible for stemming and controlling the spill(September 30, 2013-October 2013). — Phase III- how i• • '' • • •- 'oat( s conference - • , 14 to determine what new evidence an• e . be presented during penalty trial). • Gross Negligence determination 9/4/2014. Motion filed October 2 to amend Settlement Order or Grant New Trial. • • • '-nalty Phase III Trial set for January 20,2015,with the trial - • - ed to last app . - • -- weeks. Settlements and Funds to Date • MOEX Civil Penalties-- $70 million total with $10 million to State of Florida. • Transocean Civil and Criminal--$1 billion in Clean Water Act penalties and $150 million dollars to National Fish & Wildlife Foundation of which $21 million available for Florida projects. • BP Criminal--$4 billion of which $2.394 billion paid over 5 years to National Fish & Wildlife Foundation. ($335,160,000 for Florida projects). • H< • . --, million to National Fish & I • I - •. - . . Halliburton--$1.1 billion (court must approve to deal with class actions, unknown distribution to trust funds and/or RESTORE) — Status-settlement related to class actions,filed with Court for review. 10 10/15/2014 Next Steps for Local Pot $ • Local Committee to score each submission individually(Now) • Local Committee to meet publicly as group to discuss their scores, ask questions of applicants,and re-score as necessary. Final scores will be compiled; projects will be ranked according to score. (December 11 and 12, 2014) • Recommended ranking list will be posted to website. (December, 2014). • Recommended ranking list will go to BOCC for review and project selection. (January, 2014) • Projects selected will form basis of MYIP; in-house staff and/or consultant to draft MYIP (March/April 2014) • Draft MYIP will be brought to local committee for review and recommendations (April 2014) • MYIP will go to BOCC,for approval (May 2014) • MYIP to be posted for 45 days • MYIP to Treasury(May/June 2014) • MYIP accepted by Treasury(date?) • Grant application and submission by each project in MYIP (date?) Costs ADMINISTRATIVE PRE-AWARD COSTS PLANNING ASSISTANCE Future costs associated (Costs incurred 2012- (Costs associated with plan with managing grant present) development-Some retrot program some future) None Yet $100,000-150,000 $107.000 Costs not likely Costs can be covered from Costs will covered with recoverable local pot,with separate grant 3%admin cap($34,800) application. 1. General Management 1. Consulting:$100,000 1. Planning-related Legal functions Support(already expended): 2. General ledger Still to be determined: $25,000 accounting,budgeting 2. Local Committee-Related 2. Participation costs for Activities and Outreach- 3. Human resource GC mtgs:$50,000 services g Advertising,Printing.Web 4. General procurement Support.$2,000(est'd) services,and 3. Plan Development Legal 5. General legal services and Technical Assistance: $30,000(est'd) 4. Post-Award Grant mana•ement:$50 000 est'd 11 10/15/2014 Planning Assistance Costs "Planning Assistance" Cost: $107,000 Assumes two things to keep costs down: • Develop plan in-house which is feasible for the$1.16M amount;Should we receive milliors more in BP funds,a more complex plan with additional costs will be required, and • $1 .16M will be awarded to projects with highest likelihood of being well-managed and timely completed County is responsible for:ensuring that all sub-awardees are meeting all fed laws. regulations and sub-award provisions and are providing all req'd financial and programmatic reports.performing on- site reviews of operations.auditing the sub-awardees,etc. Distributing the 51.16M to fewer projects.with most capable applicants,and highest likelihood of success and timely completion will reduce County costs for sub-recipient monitoring,reporting,and auditing,and other issues related to grant management. Does BOCC approve of developing the MYIP in-house (requiring staff time plus outside technical assistance)? Planning Assistance Grant • Non-recoverable costs to date: $ 100,000 to $150,000 (over 2 '/2 years) • Planning Assistance Costs: $ 107,000 This cost is recoverable through a special planning assistance grant. However, ➢The funds will come from the $1.16M local pot. >The grant is a federal grant. >This will delay the development of the MYIP and the funding process for local projects. Does the BOCC wish to apply for a planning assistance grant for plan development costs or absorb the costs? 12 10/15/2014 Website All of this information and more can be found on the County's RESTORE Act website: Monroe County n'1Uwww.monroecounty-fl.qov >Programs> RESTORE Google: RESTORE Act Monroe County uestions? !1 ' ,ltrAt f isa Tennyson, Monroe County 305.292.4444 Erin Deady, AICP, Esq. 954.593.5102 13