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Agenda 04/28/2009 Item #10A EXECUTIVE SUMMARY AhoON 10 A ..,/.:I.../Oc,: - Recommendation that the Board of County Commissioners adopts a Resolution in opposition to drilling for natural gas and oil withiu three miles of the shoreline of Florida. OBJECTIVE: For the Board of County Commissioners to approve a resolution in opposition to offshore drilling for natural gas and oil off the coast of Florida. CONSIDERATIONS: Currently the Florida Legislature is considering House Bill 1219 - Regulation of State Lands and Oil and Gas Resources - which includes a provision allowing offshore drilling within three (3) miles off the coast of the Gulf of Mexico. As of this writing the House bill is on Second Reading and has no Senate companion yet. There has been a great deal of discussion both nationally and within the State of Florida on the merits of drilling for gas and oil in the Gulf of Mexico. As a coastal tourism destination, this issue has major impact on our current and future ability to promote our most important visitor amenity- Collier County's award-winning beaches. The Florida Association of Convention and Visitors Bureaus (FACVB) held a workshop on the subject in September 2008 with representatives of the oil and environmental community. The F ACVB Board then adopted a position on this subject that is attached to this Executive Summary. In short, F ACVB endorses state and federal energy policies allowing the production of oil and natural gas from existing leases within the Gulf of Mexico out of sight of Florida's coast - at least 30 miles offshore - under the following conditions: 1. Any Florida offshore drilling must be a component of a comprehensive energy policy dedicated to reducing America's dependence on foreign oil. 2. Production facilities must incorporate the most advanced zero discharge natural gas and oil production systems. 3. The Federal revenue sharing plan affecting Gulf of Mexico resources, which currently does not include revenue to the state of Florida, must be changed by the U.S. Congress to include significant revenue to Florida. 4. A five-year moratorium on new leases in the eastern Gulf of Mexico must be established so State officials can evaluate oil production safety and impact on Florida's natural resources. This moratorium should permit exploration by seismic and geophysical scientific testing to identify potential future oil and natural gas reserves. 5. The military mission of the U.S. Department of Defense must have first priority in the Gulf of Mexico. The U.S. Congress has now proposed new oil and gas drilling to occur within three miles of the coast of Florida. This action poses a major threat to Florida's tourism industry, the state's number one economic generator. At a time of critical economic uncertainty, this action will devastate Florida's ability to compete in the global tourism market place. ADVISORY BOARD RECOMMENDATION: The Collier County TDC reviewed the F ACVB position on offshore drilling at their November 24, 2008 meeting and recommended ( 7- 1) that the County Commission adopt a Resolution supporting the FACVB position, with provision # 4 deleted which concerns the establishment of a five-year moratorium on new leases in the eastern Gulf of Mexico. The TDC on numerous occasions has opposed drilling closer than 10 miles from shore. FISCAL IMPACT: There is no immediate fiscal impact to this discussion. However, possible environmental damage to our beaches and inlets from an offshore oil disaster could have enormous financial impact on tourist tax funds in the future. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office, is not quasi-judicial and requires no ex parte disclosure, requires only a majority vote for approval, and is otherwise legally sufficient for Board action.-SRT GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan related to this action. RECOMMENDATION: That the Board of County Commissioners adopts the Resolution opposing offshore drilling for natural gas and oil, and authorizes the Chairman to sign the Resolution which when executed will be transmitted to Governor Charlie Crist, Senate President Jeff Atwater, Speaker of the House Larry Cretul, the Collier County Legislative Delegation, and the Florida Association of Counties. PREPARED BY: Jack Wert, Tourism Director RESOLUTION 2009-_ 1+H ON 10ft "ifo1'l/OC, A RESOLUTION OF THE COLLIER COUNTY BOARD OF COMMISSIONERS IN OPPOSITION TO PASSAGE OF FLORIDA HOUSE OF REPRESENTATIVES BILL 1219 (DB 1219) THAT WOULD ALLOW NEAR- SHORE OIL DRILLING THREE MILES OFF THE FLORIDA COAST AND AUTHORIZING THE COUNT COMMISSION CHAIRMAN TO TRANSMIT THIS RESOLUTION TO STATE REPRESENTATIVES. WHEREAS, Florida's economy depends on its multi-billion dollar tourism industry, which resulted in more than 82 million visitors coming to Florida in 2008, during which period they generated over $4.0 billion in taxable sales; and WHEREAS, Tax revenues from tourism during 2008 exceeded $1.2 billion and over 31,300 people were directly employed, receiving nearly $900 million in tourism wages, as a result of the State's tourism industry; and, WHEREAS the Collier County local hotel tax alone exceeded $14.5 million dollars during fiscal year 2008; and WHEREAS, oil and natural gas drilling in waters offthe coast of Florida will increase the risk of oil pollution on Florida Beaches; and, WHEREAS the risk to Florida's economy posed by oil and natural gas drilling off of Florida's coasts is substantial and even a small oil spill in the Gulf of Mexico off of Collier County could be devastating to our most important visitor amenities; and, WHEREAS, tax revenues generated from Florida's growing tourism industry are critical to continued funding of essential governmental services, including transportation, schools, and public safety; and, WHEREAS, HB 1219, if passed by the State Legislature, would allow for near-shore gas and oil drilling on submerged stated lands underlying the territorial waters off the State within three (3) miles off the Florida coast; and, WHEREAS, HB 1219, if passed by the State Legislature, would permit the installation of oil rigs, pipelines, and drilling near the beaches and in the shallow waters of the Gulf of Mexico and other areas ofthe Florida coastline; and NOW THEREFORE, BE IT RESOLVED, the Board of County Commissioners of Collier County opposes the passage ofHB 1219 during the 2009 legislative session. BE IT FURTHER RESOLVED, the Chairman of the Board of County Commissioners of Collier County shall transmit a copy of this resolution to Governor Charile Crist, Senate President Jeff Atwater, Speaker of the House, Larry Cretul, the Collier County Legislative Delegation, and the Florida Association of Counties, as evidence of the County's opposition of HB 1219. THIS RESOLUTION ADOPTED this 28th day of April, 2009 after a motion, second and majority vote favoring same. ATTEST DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA By: DONNA FIALA, Chairman Approved as to form and legal sufficiency: Scott R. Teach, Deputy County Attorney 2