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Agenda 03/11/2014 Item # 11A3/11/2014 11.A. /'� EXECUTIVE SUMMARY Recommendation to accept the Conservation Collier ten year financial plan and recommendations for the Conservation Collier Program and to provide direction regarding sunset of the Conservation Collier Land Acquisition Advisory Committee (CCLAAC). OBJECTIVE: To receive Board approval for the updated Conservation Collier financial plan and associated recommendations and to receive direction from the Board regarding sunset of the CCLAAC. CONSIDERATIONS: In November 2002, through a County -wide referendum, voters approved the Conservation Collier Program to acquire environmentally sensitive land. In December 2002, the Board approved Ordinance 2002 -63 (subsequently amended as Ordinance 2007 -65) establishing the Conservation Collier Land Acquisition Program and appointed a nine- member advisory committee called the Conservation Collier Land Acquisition Advisory Committee (CCLAAC). A November 2006 County -wide referendum confirmed voter support for ad valorem tax funding of the Program for ten years, through 2013. Following the 2007 -2008 economic collapse the Conservation Collier Program suffered two major financial setbacks. 1) Between FY 09 and FY 12 taxable value and resultant tax revenue dropped by 27 %, and, 2) interest rates dropped and have remained at historical lows significantly reducing projected earnings on endowment monies. In response, Staff has annually n recommended updates and revisions to the Conservation Collier Program to ensure a sustainable long -term financial plan. To that end, in recent years staff has recommended, and the Board has approved, timely curtailment of the land acquisition phase, directing additional funding into the long -term management Trust Fund and prioritization of planned amenity expenditures. Staff met with the Board at a November 4, 2013 workshop to discuss the future of Conservation Collier. At that meeting, Staff was directed to evaluate planned amenity and operational expenditures, consider how interest returns might be improved, explore selling, trading or gifting Conservation Collier preserves and update the financial plan. In order to update the financial plan Staff has carefully evaluated amenity and management cost assumptions and has included a number of cost reduction strategies discussed below. Relative to interest earnings, the updated financial plan assumes no change in the Investment Policy but does reflect updated interest income and inflation assumptions. The updated financial plan along with a graphic representation is provided as a companion document. Delay /cut planned expenditures for public access amenities: • Rivers Road Preserve - Delay /cut planned parking lot, ADA trails, picnic table, benches, and signage. Savings of $81,000 • Railhead Scrub Preserve — Delay /cut planned parking lot, signs, kiosk, entry gates, benches, and tables. Savings of $127,680 • Nancy Payton Preserve — Delay /cut parking lot, ADA trails, signage, and kiosk. Savings of $71,500 Packet Page -288- 3/11/2014 11.A. n Other proposed cost reductions: • "Trued up" projected costs for initial exotic removal for Rivers Road Preserve based on quotes recently received. Savings of $173,390. • "Trued up" projected costs for exotic removal at Pepper Ranch based on quotes recently received. Savings of $279,000. • Reduce staffing in the Conservation Collier Fund by two (2) FTEs and transfer Pepper Ranch ranger responsibilities to the Parks & Recreation Department. These actions will be implemented by 2019 and result in ten year savings of $722,800. This will leave the Conservation Collier Program with two (2) full time Environmental Specialists in 2019. • Assign existing staff to conduct follow -up exotic herbicide applications for preserves under ten acres instead of contracting out. Savings of $45,000 • Eliminate planned management spending at McIlvane Marsh. Savings of $120,000. Over the next ten years, the actions described above reduce projected costs by approximately $1.6M relative to prior plans. Estimated Pepper Ranch PHU revenue adds $300,000. Should the Board approve the proposed changes to the financial plan; staff will move forward to reduce the FY 14 budget accordingly. Sell, Trade or Gift some Properties: Staff spoke with representatives from three agencies, including Florida Department of Environmental Protection (DEP), South Florida Water Management District (SFWMD), and US Fish and Wildlife Service ( USFWS). Staff had also spoken to the Conservancy of SW Florida (Conservancy) in early 2013 about the potential of taking Camp Keais Strand parcels, and received a call from the Florida Wildlife Federation in 2014 regarding willingness to accept the Camp Keais Strand properties. • . DEP is not buying conservation lands that are not already ranked at present. Donations would need to include management funds. Trades are possible. Stan provided information on Conservation Collier lands. No response yet. • SFWMD is not buying conservation lands at present; is currently assessing its own lands for disposal. Donations without management funding are unlikely. Trades are possible. Staff provided information on Conservation Collier lands. No response yet. • USFWS acquisition focus in Florida is on the new Everglades Headwaters National Wildlife Refuge (NWR) in Orlando. No other acquisitions are likely. Donations and trades would be acceptable only within established boundaries. A boundary expansion is underway for Florida Panther NWR, which encompasses the area of the Camp Keais Strand, but may be years away. Boundary expansions literally require an Act of Congress. A minor expansion of less than 10% the area and within 1 mile of a current boundary, potentially affecting McIlvane Marsh, is a possibility. • Conservancy of SW Florida (Conservancy) would consider a donation of the Camp Keais parcels as it is a unique situation. The properties would remain in conservation. • Florida Wildlife Federation has expressed interest in receiving the Camp Keais Strand properties. The properties would remain in conservation. Packet Page -289- 11_�_. 3/11/2014 11.A. Staff Analysis: The properties that may be realistic to consider divesting of include Camp Keais Strand, Mcllvane Marsh and Shell Island Preserve (See Exhibit A where these properties are tagged in orange). These properties were relatively inexpensive to acquire (except for Shell Island Preserve), area adjacent to or near other agencies lands, do not provide public access, and management costs to date have been minimal. Over the next ten years, the only planned management expenses for the selected 3 properties are for Shell Island for a total of $50,000 to continue exotic maintenance. The Conservancy was a financial partner in the acquisition of Shell Island ($125,000) and may object to divestiture. CCLAAC reviewed staff s selection of these properties for divestiture at a publicly noticed meeting on December 4, 2013 and recommended against any divestiture. Conservation Collier Trust Fund Interest Earnings: The County's Investment Policy ensures appropriate stewardship over public funds. The Clerk of Courts is responsible for the investment of County Funds pursuant to the Investment Policy. Conservation Collier Land Acquisition Advisory Committee: Finally, regarding sunset of the CCLAAC, the Ordinance direction (2002 -63, as amended, Section 8.6.d) is as follows: "At such time as there are insufficient uncommitted funds in the Conservation Collier Acquisition Trust Fund to conclude another acquisition and all acquisition projects have been closed the Land Acquisition Advisory Committee shall report to the County Commission that its business is concluded and all remaining Conservation Collier Acquisition Trust Fund monies shall then be transferred to the Conservation Collier Management Trust Fund. " • Currently, the Acquisition Trust Fund (1.72) includes $21,600 in reserves earmarked for land acquisition costs that may arise. • A developer donation of $103,255 is expected and is earmarked for the A- listed Collier Development Corp. parcel adjacent to the Gordon River Greenway. • There are no other acquisition projects in the pipeline and no additional approvals besides the Board's for acceptance of individual parcels that remain to be sought. • The adopted FY14 budget moved the balance of funds in the Acquisition Trust Fund (172) to the Management Trust Fund (174). CONSERVATION COLLIER LAND ACOUISITION ADVISORY COMMITTEE ( CCLAAC) RECOMMENDATION: On January 13, 2014, and again on February 10, 2014, the CCLAAC met and provided recommendations relative to financial planning and sunset of the CCLAAC. The Chairman has prepared a report to the Board outlining the CCLAAC's position, which is provided as backup material to this Executive Summary. FISCAL IMPACT: The financial analysis portrays expense side management adjustments as well as revenue adjustments. These adjustments include proposed cuts in amenity improvements, personnel and maintenance costs totaling approximately $1.6M over a 10 -year period. Packet Page -290- 3/11/2014 11.A. On the revenue side, interest income remains conservative ranging between' /2 of 1 percent and 2 ^ percent over a 10 -year period and a conservative estimate for Pepper Ranch Panther Habitat Unit credits (PHUs) have been added. Regarding Conservation Collier program fund balance, the analysis depicts a managed fund balance reduction of approximately $4.1M over a ten -year period to accommodate capital improvements and operating costs. The capital component totals $2.9M and is associated primarily with the Gordon River Greenway. Net operating costs in excess of planned revenue during the 10 -year planning window totals approximately $1.2M. Operating expenses after 2020, through the ten year planning horizon, are projected to be covered by program income, based on all projections utilized in the analysis. The ending fund balance is projected at $33.OM at the end of the 10 -year planning window. Within the 10 -year planning window many opportunities exists strategically, in 1 -year increments and within a 3 year planning horizon, to effectively manage the program and protect the fund balance. It is suggested that with respect to the Conservation Collier Program fund balance that various policies be developed to protect the Program's cash position. These policies could include establishing a minimum fund balance and linking operating expenses to program revenue in addition to the annual update to the Program's financial plan. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. If it is the Board's desire to abolish the CCLAAC, the County Attorney requests that the Board direct the County Attorney to prepare and bring back to the Board for its consideration an ordinance that would amend the Conservation Collier Ordinance accordingly. —JAK GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. RECOMMENDATION: • Institute reductions to personnel, operating and amenity expenditures as proposed. • In addition to annual monitoring, maintain a three -year financial planning window to ensure adopted budgets and spending practices remain consistent with long -range financial targets. • Evaluate planned amenity and capital improvements for impact on overall financial plan. • Consider removing planned expenditure of $645,800 for the Greenway Bridge and reallocate a portion to acquisition of the final Gordon River Greenway land parcel. • That the BCC provide any direction to the Clerk of Courts regarding the investment approach and /or distribution of investment earning dollars. • Consider directing staff to develop and return to the Board with certain policies to protect the Program's cash position. • Consider CCLAAC recommendations against divesting of properties at this time. • That the BCC provide direction to the County Attorney to amend and bring back the Conservation Collier Ordinance to eliminate the CCLAAC. ^ Packet Page -291- 3/11/2014 11.A. Prepared by: Alexandra Sulecki, Principal Environmental Specialist, Conservation Collier, Parks and Recreation Department Exhibit A — Sale, Trade or Donate Considerations Map Packet Page -292- 3/11/2014 11.A. Collier County Conservation Collier Program Lands wrest rwanu nwwrw ry 1 OCerMound Preserve D 2.5 5 Miles I I I AM egend Data Swrca:Parcels- Collier County Pmparty Approw FNAI, Fl. Cons —b— tends, 32013 Conservation Collier Acquired Created By: 0--tw Cdher CS c 1Consarvatlon c° IIIer4ntpslAmiumd pr°paraea Cascara Prairie Preserve - 368 ac _......... ] Other Agency Conservation Land rji II Lake Trafford * - rnrn P Pepper Ranch Preserve - 2,512 Red Maple Swamp Preserve f Red Root Preserve - 9 ac Railhead Scrub Preserve L ,p Walk Preserve - 9.5 ac Alligator Flag Preserve j ° Winchester Head Wet Woods i Preserve i Camp Keais Stsntl Projec Cocohatchee Creek Preserve - c Logan Woods Preserve Rivers Road Preserve i Freedom Park —__ - -� Nancy Payton Preserve Gordon River Greenway Preserve YO wrest rwanu nwwrw ry 1 OCerMound Preserve D 2.5 5 Miles I I I CON ATION LLIER egend Data Swrca:Parcels- Collier County Pmparty Approw FNAI, Fl. Cons —b— tends, 32013 Conservation Collier Acquired Created By: 0--tw Cdher CS c 1Consarvatlon c° IIIer4ntpslAmiumd pr°paraea ° ' _......... ] Other Agency Conservation Land Ac0.d Map_.lanuary 2D14. —d wd .Jpg CoiGer Colcnty Lake Trafford Packet Page -293- COLLIER COUNTY Board of County Commissioners Item Number: 11.11.A. 3/11/2014 11.A. Item Summary: Recommendation to accept the Conservation Collier ten year financial plan and recommendations for the Conservation Collier Program and to provide direction regarding sunset of the Conservation Collier Land Acquisition Advisory Committee (CCLAAC). (Steve Carnell, Public Services Administrator) Meeting Date: 3/11/2014 Prepared By Name: BetancurNatali Title: Operations Analyst, Beach & Water 2/3/2014 10:35:05 AM Submitted by Title: Environmental Specialist, Principal, Conservation Collier Name: SuleckiAlexandra 2/3/2014 10:35:07 AM Approved By Name: BetancurNatali Title: Operations Analyst, Beach & Water Date: 3/4/2014 8:20:41 AM Name: AlonsoHailey Title: Operations Analyst, Public Services Division Date: 3/4/2014 8:42:36 AM Name: TownsendAmanda Title: Director - Operations Support, Public Services Division Date: 3/4/2014 9:27:52 AM Name: AlonsoHailey Title: Operations Analyst, Public Services Division Date: 3/4/2014 9:56:56 AM Packet Page -294- 3/11/2014 1 1.A. Name: SuleckiAlexandra Title: Environmental Specialist, Principal, Conservation Collier Date: 3/4/2014 3:25:08 PM Name: BelpedioJennifer Title: Assistant County Attorney, CAO General Services Date: 3/5/2014 9:22:13 AM Name: CarnellSteve Title: Administrator - Public Services, Public Services Division Date: 3/5/2014 11:39:07 AM Name: BelpedioJennifer Title: Assistant County Attorney, CAO General Services Date: 3/5/2014 1:29:05 PM Name: KlatzkowJeff Title: County Attorney, Date: 3/5/2014 2:33:11 PM Name: FinnEd Title: Management/Budget Analyst, Senior, Transportation Engineering & Construction Management .� Date: 3/5/2014 4:59:13 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 3/5/2014 5:31:15 PM Packet Page -295- L E E C N L Q V •� o °' L Q N � ULo 3/11/2014 11.A. 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O O N O O N O O rl O O e-i O 0 O O u1 !-� Q r O u u o, h C d W �O a Co a O m O N N ~ O IN C GJ 9) N O O 0- .� E }� O u W N 'Q •�� fC O "! L m � L Lm P Cu O I� P O P o0 I� C ° m O o•0 a L i � P N m O ° V P � LL O C W I CO C 7 8 LL / C: i O Eb N CU Co i C f0 O O O O O O O O O m O O O C O O O O O O O O O O O O O O V1 O u1 O V1 O Ln tL It M M N N e-I r-1 Packet Page -299- 3/11/2014 1 1.A. WILLIAM H. POTEET, M. 6180 Star Grass Lane Naples, FL 34116 February 25, 2014 Collier County Board of Commissioners 3301 Tamiami Trail East Naples, FL 34112 RE: FINAL REPORT AS REQUIRED BY ORDINANCE Dear Commissioners: Conservation Collier is one of the most successful programs in our County's history. Born out of an idea to preserve environmentally sensitive lands and protect vanishing greenspace within our urban core, the issue was placed on the ballot in 2002. It passed by well over 60 %. Several years later, the issue was placed on the ballot again to provide clarity on the use of funds collected. This time it passed with an incredible 80% + approval rating. The ten year old program has acquired over 4000 acres with 19 preserves. Equally impressive is the quality of the lands purchased, from Native American historical sites with tropical hardwoods, to scrub jay and gopher tortoise habitats to environmentally sensitive watersheds. A key component to the program is the "public access ". Although some of the preserves are remote and very wet in nature, the general public has the right to access it if they can get to it. These preserves were always intended to be shared with those who paid for their purchases. Another key component was the willing seller concept. This was the basis for creating the public trust needed for our success. We recognized it was not the most economically efficient method purchasing real estate, but it was the fairest. We offered only what the property appraised There was no negotiating or discounting. As a result numerous properties were nominated to purchase for the Conservation Collier Land Acquisition Advisory Committee (CCLAAC) to review. From the best nominated we made recommendations for purchase to the County Commission. The reports on each property were provided in great detail by the Conservation Collier staff. One of the many considerations we evaluated with each property was its ability to help with the recharge of water into our aquifers. We looked at the costs of exotic removal and the projected costs estimated to maintain the property. We looked at the various habitats for endangered and threatened animals and plant life. We looked at the geographic location of each property in how it relates to historic flow ways and watersheds. We also insured there was a fair representation of the preserves in each of the commission districts. The CCLAAC is exceptionally proud of the product it has delivered. Freedom Park is an outstanding n passive recreation area that citizens use routinely. Additionally it is great example on how multiple agencies within the county government can work together for a common cause. In this case, Storm Packet Page -300- 3/11/2014 11.A. Water Management, Parks and Recreation, and Conservation Collier shared the vision and delivered an exceptional product. Gordon River Greenway will be another example of multi- agencies and organizations collaborating together to develop an outstanding community asset. Many of our preserves have hiking trails constructed from Cocohatchee Preserve and Alligator Flag Preserve in North Naples, Redroot Preserve and Caracara Prairie Preserve near Immokalee, and Logan Woods Preserve in Golden Gate. Pepper Ranch near Immokalee offers the widest range of services including hunting, fishing, equestrian activities, overnight camping, and mountain bike trails. Future plans for preserves with trails include Nancy Payton Preserve, Railhead Scrub Preserve, and River Roads Preserve. On Marco Island, Otter Mound is not only the home of a tropical hardwood hammock; it contains ancient relics from the Calusa Indian tribe. The Marco Island Historical Society has partnered with Conservation Collier to tell the story of these early Collier residents and preserve our history. There is still much work to be done with developing each of these preserves into Collier County "gems ". Bird watching, fishing, hiking, camping, geocaching, and more are all passive recreational activities promoted by the CCLAAC for use within our Preserves. Collier County is an exceptional location for ecological and biological diversity. Conservation Collier has initiated the steps for everyone to share these wonders. We are now at the end of the 10`h year and taxpayer funding for the program has ceased. According to the office of budget and finance, there is approximately $33,000,000 in reserves for management. There is also approximately $4,000,000 remaining for capital improvements. The capital improvement monies will go for boardwalks, construction of parking areas, bathrooms, etc. as specified in each preserves management plan. There is some question on whether the acquisition fund is completely spent. There is approximately $600,000 on a line item fora future bridge to be built within the Gordon River Greenway budget that will not be constructed and the monies can be returned back into the acquisition account from which it was previously taken. We are to receive monies from a neighboring property on the Gordon River per an agreement to reduce their onsite preserve requirement by a contribution to Conservation Collier. This money is to be earmarked specifically he purchase of an adjacent property to Conservation Collier's Gordon River Greenway property. Technically we have still have acquisition funds, but for the most part the acquisition monies set aside for this are depleted. The question now should be "Is there work remaining for the committee to complete ?" The members of the CCLAAC unanimously believe the answer is "Yes ". In late January, the CLAAC held its first and only evening meeting to give the citizens of Collier County the opportunity to express their views on Conservation Collier. They were specifically asked to tell what they liked, what they did not like, and their opinion on the future of the program. A number of citizens spoke and each expressed strong support for the program and recommended continuing it. There was no opposition to the program. Citizens are taking advantage of Conservation Collier properties. The Boys Scouts held a District Camporee at Pepper Ranch. Numerous Eagle Scout projects have been constructed within our Packet Page -301- 3/11/2014 1 1.A. A10111-1 preserves. We hold the only youth hunts on public lands in Collier County. Staff has set up the popular Geocache events on preserves. Our trails are being hiked. Local and national ornithologists have been seen within our preserves. The list of wildlife that can be found within Conservation Collier preserves is impressive. Additionally we established several partnerships with other agencies and organization to improve our preserves. Corkscrew Regional Ecosystem Watershed (CREW) assists Conservation Collier with the Caracara Preserve. Again, the Marco Island Historical Society works with us at Otter Mound Preserve, a tropical hardwood hammock with ancient Calusa Indian artifacts. The unanimous consensus of the Conservation Collier Land Acquisition Advisory Board is the work of this committee is too important to discontinue. For the past 10 years, all monies collected by Conservation were reviewed and monitored by our Committee. As stewards to the public trust it was the Committee's responsibility to account for each and every dollar. A lot of time and thought went into our recommendations to both staff and the commission. The collective knowledge of our committee saved the taxpayers monies on numerous occasions. Working with the staff, we followed a fiscally responsible approach in the utilization of taxpayer dollars. The CCLAAC recommends to the Collier County Commission the following: 1. The County Commission amends the current ordinance for Conservation Collier to allow the committee to continue as a citizen's advisory board. With approximately $37 million remaining in ^ the accounts, it is more than prudent to have a citizens' watchdog committee overseeing the expenditures and management of these large funds. Additionally the expertise assembled on the CCLAAC provided staff knowledge and experience on numerous subject matters from legal to environmental engineering, to construction, to real estate related matters. 2. The CCLAAC further recommended the frequency of their meetings be reduced so staff time dedicated to meeting preparation and setup is greatly reduced. However the CCLAAC does not want more efficiency at the cost of less public oversight. There has to be a proper balance. 3. The County Commission reviews its current investment policy and seeks investments that yield a higher return without dramatically altering its responsibility to protect the monies invested. It is important to note that the search for sustainable funding is only the difference between 1 to 2 more on investments that currently yield less than 1 percent. The committee fully understands the need to protect the principal, but also believes there are conservative investment strategies that will yield greater amounts than we get today. 4. Conservation Collier should retain all properties in the program since they were purchased with taxpayer dollars and intended to stay in County ownership and conservation statues in perpetuity. The CCLAAC reviewed all of our properties as requested by Commissioner Nance and found no financial savings or advantage from selling properties. We also looked at the possibility of donating some of the preserves to other Conservation organizations to reduce our receiving a benefit. We found this would only jeopardize the public trust this committee worked hard to achieve. Packet Page -302- 3/11/2014 11.A. Additionally those organizations and government agencies would want management dollars as part of the donation. This again would be contrary to the main reason we were considering a donation, to save costs, not give away our funds. We made a promise to the citizens of Collier County that we would purchase environmentally sensitive lands and greenspace and hold them for public use in perpetuity. We believe that promise must be kept. 5. Conservation Collier should continue to explore leveraging mitigation value from the preserves to acquire additional properties and provide future management funds. 6. The final recommendation from the CCLAAC is putting this issue back to the Citizens of Collier County for referendum approval. At a rare evening meeting in January, citizens expressed their overwhelming satisfaction with the program and urged its continuation. We were very pleased Commissioner Nance and Commissioner Fiala attended the meeting so they too could listen to the attending public expressions of approval and encouragement for a public referendum. Prior to the election in 2002, part of the discussion on the ballot approval centered on the ten year sunset provision and what happens afterwards to the program. Some proponents of conservation land acquisition did not want the sunset provision. They saw the benefits of a conservation land acquisition program. However the electorate demonstrated numerous times in the past they would not accept new perpetual tax programs so the sunset provision was added. Then the question was what will happen to the program at the end of ten years if it is good and worthy program? The reply at the time was simple and straight forth. If it is a good program at the end of ten years and the citizens want to continue it, they can vote to do it. This is a good program. It is worthy of reconsideration. There are other great properties that would fit well into our current acquisitions and benefit the citizens of Collier. Currently there are a number of properties on CCLAAC's potential acquisition list that would have been purchased had the economy not soured and our investment return had been so low. We still have the opportunity to acquire these valuable environmental properties if the program were to continue. Conservation Collier has been a shining star for our county government and the Collier voters deserve the opportunity to make their own decision on its future. You trusted the voters' decision ten years ago. You should do it again. Sincerely, 7UdG6lia4rV- ;;r. ;VS&tt. %. William H. Poteet, Jr. Chairman Conservation Collier Land Acquisition Advisory Committee Packet Page -303-