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AGENDA

BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND

JULY 11, 2000


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Item 1 Minutes

Submittal of the Minutes of the May 23, 2000 Cabinet Meeting.

RECOMMEND ACCEPTANCE

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Item 2 Zemel Option Agreement/Charlotte Harbor Flatwoods CARL Project

REQUEST:  Consideration of an option agreement to acquire 315.12 acres within the Charlotte Harbor Flatwoods CARL project from Sylvia Zemel, as Trustee.

COUNTY:  Lee

LOCATION:  Section 04, Township 43 South, Range 23 East

CONSIDERATION:  $820,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Hrabko Bowen APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (05/21/98) (05/21/98) VALUE PRICE PRICE DATE

001204 Zemel/8 315.12 $830,000 $725,000 $830,000 $6,040* $820,000 150 days

after BOT

* The property was acquired in 1930. approval

STAFF REMARKS: The Charlotte Harbor Flatwoods CARL project is ranked number 10 on the CARL Priority Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. The project contains 19,361 acres, of which 11,987.89 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves this agreement, 7,057.99 acres or 36 percent of the project will remain to be acquired.

All mortgages and liens will be satisfied at the time of closing. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environmental Protection (DEP) the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them as appropriate. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

A title insurance policy, a survey, an environmental site evaluation and, if necessary, an environmental site assessment will be provided by the purchaser prior to closing.

Northwest of Fort Myers lies the largest and highest-quality slash-pine flatwoods left in southwest Florida. The pines are home to red-cockaded woodpeckers, black bears, and bald eagles, and an occasional Florida panther ranges the area. The largest population in the world of the rare beautiful pawpaw grows here. Several drainage ditches flow through these flatwoods into the Charlotte Harbor Aquatic Preserve. Public acquisition of the Charlotte Harbor Flatwoods CARL project will protect these flatwoods and connect the Charlotte Harbor State Buffer Preserve with the Babcock/Webb Wildlife Management Area, helping to protect both of these managed areas and the waters of the aquatic preserve.

The property will be managed by the Florida Fish and Wildlife Conservation Commission as part of the Babcock/Webb Wildlife Management Area.

Board of Trustees

Agenda – July 11, 2000 Page Two

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Item 2, cont.

This acquisition is consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 2, Pages 1-42)

RECOMMEND APPROVAL

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Item 3 Tolle/Fitzpatrick Option Agreements/Florida Springs Coastal Greenway CARL Project

REQUEST: Consideration of two option agreements to acquire 9.3 acres within the Florida Springs Coastal Greenway CARL project from Laura Louise Fitzpatrick, Hugh E. Tolle, Edgar E. Tolle and Katherine B. Tolle.

COUNTY: Citrus

LOCATION: Sections 17 and 20, Township 18 South, Range 17 East

CONSIDERATION: $1,450,000

APPRAISED BY SELLER’S TRUSTEES’

REVIEW Arline Catlett APPROVED PURCHASE PURCHASE OPTION

NO. PARCEL ACRES (10/05/99) (10/05/99) VALUE PRICE PRICE DATE

001202 72A 5.5 $1,080,000 $1,165,000 $1,165,000 $239,625** $1,050,000 90 days

001203 72B 3.8 $ 480,000 $ 480,000* *** $ 400,000 after BOT

9.3 $1,645,000 $1,450,000 approval

* Value based without access easement.

** Acquired in 1986.

*** Inherited in 1979.

STAFF REMARKS: The Florida Springs Coastal Greenway CARL project is ranked number 3 on the CARL Substantially Complete Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ Land Acquisition Workplan. The project contains 40,966 acres, of which 28,622.76 acres have been acquired or are under agreement to be acquired. After the Board of Trustees approves these agreements, 12,333.94 acres or 30 percent of the project will remain to be acquired.

During the mid-1980s, the Division of Recreation and Parks managed the Crystal River State Reserve. At that time, the CARL program received approximately $35 million annually for acquisition of lands statewide. On July 1, 1985, there was a little less than an $8 million unencumbered cash balance in the CARL Trust Fund. By the end of June 1986, the cash balance was down to about $2.2 million.

To stretch scarce acquisition dollars, alternatives to fee purchases were often pursued. It was not uncommon to negotiate multi-year options to spread payments on large land purchases over more than one year or to pursue land exchanges. In 1983, the state under the CARL program acquired a large tract of land that included a commercially-zoned strip along U.S. 19. In 1985, the state became aware of the fact that the Tolles, the owners of a 55.6-acre parcel, nearly surrounded by state-owned land, were contemplating developing the parcel with an RV park. The 55.6-acre parcel includes approximately 1,500 feet of frontage on Millers Creek at the north end of Kings Bay, one of Florida's most significant manatee sanctuaries. It is comprised of 31.27 acres of uplands that appear to be a mixture of hydric and mesic to xeric

Board of Trustees

Agenda – July 11, 2000 Page Three

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Item 3, cont.

hammock, natural communities that were identified in the P2000 Remaining Needs and Priorities Report as inadequately represented in the public lands inventory; and, 24.39 acres of tidal salt marsh, important estuary habitat for fish and wildlife. The hammocks are unprotected lands that are readily developed in Florida under current laws.

Due to the limited funds available, a 5.5-acre commercially-zoned strip that was a small portion of a larger parcel purchased in 1983 (Parcel 72A) was offered in exchange for the 55.6-acre parcel described above. To provide for a value-for-value exchange, this 355-foot-wide by 675-foot-long strip of land at the northern end of the project was appraised for exchange purposes. Department of Natural Resources staff had concluded at the time that the 5.5 acres to be conveyed was "not necessary to the integrity of the Crystal River State Reserve." While the parcel was, and still is, in the project boundary, and would have provided a buffer to the reserve, the 55.6-acre parcel was considered a much more significant resource, and was under a more immediate threat of development. The exchange was approved by the Land Management Advisory Council on August 22, 1985, and by the Board of Trustees on October 1, 1985. The parcel conveyed to the Tolles contained a restriction prohibiting the use of those lands for a commercial nursery or a bulk or wholesale fuel or oil storage facility.

At the time of the exchange, there was virtually no demand for commercial property in the project area. However, over the last fifteen years, this area of the state, like many others, has seen considerable developmental growth. Today, there is a shopping mall directly across from the subject property and demand for developable commercial property is high. It is unclear whether the deed restrictions preclude placement of a gas station on the property – a use contemplated by a previously interested buyer. Placement of a gas station on the property, with attendant possibilities for leakage and contaminant spills, would pose a potential pollution threat to adjacent preserve property.

On the other hand, acquisition of the site will provide for controlled development of the site by the state. The 5.5-acre parcel (72A) is partially cleared and contains a remnant long leaf pine community. This site would provide public access opportunities that do not already exist without destroying high quality habitat or without routing potential users of this part of the preserve through a residential neighborhood. Parking facilities and a trailhead at the site would provide access to more than 200 acres of basically unused land that contains some of the most lush uplands in the buffer preserve. The smaller, wetter parcel, which is in closer proximity to Millers Spring, would extend a wildlife corridor along the highway almost to a currently unconnected parcel of buffer land that partially borders the spring. There is one more narrow strip of privately owned land between parcel 72B and the state-owned land. Both Tolle parcels have moderate resource values.

All mortgages and liens will be satisfied at the time of closing. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to the Department of Environmental Protection (DEP) the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them as appropriate. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title issues that arise prior to closing.

Surveys, environmental site evaluations and, if necessary, environmental site assessments will be provided by the purchaser prior to closing.

The ragged coastline of Citrus County, with its salt marshes, clear spring runs, hammocks, and flatwoods, is being affected by the explosive growth of this part of the state. Public acquisition

Board of Trustees

Agenda – July 11, 2000 Page Four

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Item 3, cont.

of the Florida Springs Coastal Greenway CARL project will conserve the natural landscape of this coast, protecting the water quality of the spring runs and estuaries where endangered manatees congregate, preserving natural lands that link with conservation lands to the south, and providing scenic areas in which the public can enjoy fishing, hiking, or learning about the natural world of this coast.

These properties will be managed by the DEP’s Office of Coastal and Aquatic Managed Areas as a part of Crystal River State Buffer Preserve.

These acquisitions are consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 3, Pages 1-53)

RECOMMEND APPROVAL

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Item 4 Save Our Everglades (Golden Gate Estates South) CARL Project Acquisition Delegation

REQUEST: Consideration of a request, specifically limited to the portion of the Save Our Everglades (Golden Gate Estates South) CARL project lying south of I-75, to authorize the Director of the Division of State Lands, Department of Environmental Protection, or her designee, to extend offers and approve any contract for the sale and purchase of land pursuant to section 259.041(1), F.S., (1) at $5,000 over or up to 125 percent of the appraised value, whichever is greater, when the purchase price per parcel does not exceed $50,000; and (2) at up to 125 percent of the appraised value when the purchase price per parcel exceeds $50,000.

COUNTY: Collier

STAFF REMARKS: The Save Our Everglades CARL project is ranked number 3 on the CARL Mega-Multiparcel Project List approved by the Board of Trustees on February 22, 2000, and is eligible for negotiation under the Division of State Lands’ (DSL) Land Acquisition Workplan. The Golden Gate Estates South portion of this project contains 55,566 acres, of which 40,854.54 acres have been acquired or are under agreement to be acquired by the Board of Trustees, leaving 14,711.46 acres, or 26 percent, of the project to be acquired.

Public acquisition is essential to continue the preservation and restoration of this endangered ecosystem that is a vital component of the Comprehensive Everglades Restoration Plan. Acquisition of this land is critical to improving water quality and water quantity (hydroperiod), which are necessary to restore the Big Cypress Basin portion of the Everglades ecosystem that supports a unique diversity of plants and animals not found anywhere else.

Southern Golden Gate Estates (SGGE) is an approximately 94 square mile area of sensitive environmental landscape in southwest Collier County, with a unique landscape of cypress forest, wet prairies, pine and hardwood vegetative communities underlain by a pristine aquifer. Construction of road and drainage modifications, in the 1960s, overdrained the area resulting in increased forest fire frequency, invasion of upland vegetation, and increased freshwater shock load to the estuaries. The South Florida Water Management District has developed a Comprehensive Hydrological Restoration Plan for the area, consisting of the placement of 83 canal plugs, three pump stations, three spreader canals and removal of 130 miles of roads.

Board of Trustees

Agenda – July 11, 2000 Page Five

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Item 4, cont.

The implementation of the plan will result in the restoration of sheet flow along three major flowways across the SGGE landscape, restoration of the natural hydroperiod of the site, reduction of freshwater discharges to the estuaries and restoration of habitats that support endangered and threatened species. The projected date for the restoration work to begin is October 2002. The restoration project depends on the acquisition of all lands within the project boundary.

On April 17, 1998, the Department of Environmental Protection received $25 million in federal Farm Bill funds. That grant has been amended and the total federal funding is now $38 million. To date nearly $23 million has been expended and the balance must be expended before December 31, 2003, the grant expiration date.

The Save Our Everglades project was first placed on the CARL list in 1986. Over the last 14 years over 11,300 parcels have been acquired. The vast majority of the acquired parcels are small, subdivided lots within the SGGE subdivision. The remaining parcels acquired are located in unplatted acreage areas within and surrounding the subdivision. Over the years owners of property in the project have received multiple offers and in 1998 and 1999, when appraised values increased as a result of appraisal updates, new offers were sent to all owners of vacant land within the project.

The DSL, under its delegated authority from the Board of Trustees, extended bona fide offers at the current appraised value for parcels with purchase prices not exceeding $50,000. In conjunction with tendering these offers, the DSL provided owners with an appraisal certification to document the 100 percent offer. Owners of lands valued in excess of $50,000 were also tendered 100 percent offers, but none met the bona fide offer requirement because the contracts were subject to Board of Trustees' approval. While some owners accepted the offer and contracts have been processed, the remaining owners either rejected the offer to purchase or did not respond.

There are also approximately 96 improved parcels within the project. DSL is working with Collier County officials to determine which of these improvements are legally permitted. While some of the improved property within the project has also been appraised and negotiated, approximately 90 improved parcels are still being appraised. All improved parcels will be negotiated following federal guidelines, including the payment of eligible relocation benefits. Two homeowners have already been relocated under the Federal Uniform Relocation Act and have received replacement housing payments, moving expenses and reimbursement of closing costs. All residential and business occupants, either owners or tenants, will be eligible for some form of relocation benefits under the uniform act.

There are approximately 4,000 ownerships remaining in the project, with about 80 percent of these being small, vacant platted lots within the SGGE subdivision. It is anticipated that it will take two years or more to process this number of parcels through the court system of Collier County.

One of the prerequisites to the Board of Trustees voting to direct the Department of Environmental Protection (DEP) to exercise the power of eminent domain is the requirement that at least two bona fide offers to purchase land through negotiations must have been made and, notwithstanding those offers, an impasse between the state and the landowner was reached. A recent court decision found that offers made "subject to approval" of the Board of Trustees are not considered bona fide offers. In this instance, in order to satisfy the bona fide offer requirement, staff is recommending that the Board of Trustees substitute the alternative procedure of approving the offers prior to their being made and authorizing the Director of the

Board of Trustees

Agenda – July 11, 2000 Substitute Page Six

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Item 4, cont.

DSL to extend such offers and approve any contract that should result so long as it does not exceed the indicated amounts. Pursuant to section 259.041(1), F.S., the Board of Trustees may substitute other reasonably prudent procedures provided the public’s interest is reasonably protected. By seeking the Board of Trustees’ approval of these offers prior to their being made, DEP staff believes the public’s interest is being reasonably protected.

While this authority to exceed the appraised value is not expected to significantly increase the number of additional parcels acquired by voluntary means, it will satisfy the bona fide offer requirement and hopefully will reduce the overall cost of acquisition when compared to the potential costs associated with utilizing the Board of Trustees’ power of eminent domain. At this time, staff is seeking authority to: (1) make second bona fide offers at $5,000 over or up to 125 percent of the DSL approved value, whichever is greater, and to approve any contract within these limits for parcels that do not exceed $50,000 in value; and, (2) make two bona fide offers at up to 125 percent of the DSL approved value and to approve any contract within these limits for parcels that are in excess of $50,000 in value.

(See Attachment 4, Page 1)

RECOMMEND APPROVAL

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Substitute Item 5 Whitley Marine, Inc. Recommended Consolidated Intent

REQUEST: Consideration of an application for (1) modification of a ten-year sovereignty submerged lands lease to increase the preempted area from 65,335 square feet to 142,441.20 square feet, more or less, for the reconstruction and expansion of a commercial marina; (2) authorization for the severance of 600 cubic yards of sovereign material; and (3) authorization for the placement of 192 cubic yards of riprap.

COUNTY: Brevard

Lease No. 050001674 Application No. 05-126125-003

APPLICANT: Joseph B. and Diane P. Whitley

(d/b/a Whitley Marine, Inc.)

LOCATION: Section 33, Township 24 South, Range 36 East, in the Indian River, Class III Waters, within the local jurisdiction of the city of Cocoa

Aquatic Preserve: No

Outstanding Florida Waters: No

Manatee County: Yes

Manatee Aggregation Area: No

Manatee Protection Speed Zone: Yes

CONSIDERATION: $8,358.39, representing the initial lease fee computed at the base rate of $0.1183 per square foot, discounted 30 percent because of the first-come, first-served nature of the facility, including the initial 25 percent surcharge payment for the additional area, waived 1998/1999 lease fee for 30 days pursuant to Amended Emergency Order OGC Case No. 99-1747, and credited the current lease fee for the period of December 1999 through December 2000, which has already been paid. The project qualifies for a waiver of the severance fee pursuant to section 18-21.011(3)(c)1, F.A.C. Sales tax will be assessed pursuant to 212.031, F.S., if applicable. The lease fee may be adjusted based on six percent of the annual rental value pursuant to section 18-21.011(1)(a)1, F.A.C.

Board of Trustees

Agenda – July 11, 2000 Substitute Page Seven

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Substitute Item 5, cont.

STAFF REMARKS: The Board of Trustees authorized a rule amendment on September 14, 1995, to "link" the two processes of regulatory and proprietary reviews and authorizations. The rule became effective October 12, 1995. As a result of this linkage, the recommended Department of Environmental Protection (DEP) regulatory permit decision and the recommendation to the Board of Trustees on the proprietary authorization are contained in one document, the "Consolidated Notice of Intent to Issue," which is attached. The attached consolidated intent contains a recommendation for issuance of a permit under Part IV of chapter 373, F.S., and a recommendation for granting authorization to use sovereignty submerged lands under chapter 253, F.S., for the activity described therein. This recommendation is provided to the Board of Trustees pursuant to section 373.427(2), F.S. A description of the requested activity is provided in Section I, "Description of the Proposed Activity." The specific basis for recommending approval of the authorization to use sovereignty submerged lands is contained in Section III, "Background/Basis for Issuance."

Approval by the Board of Trustees is requested only for those aspects of the activity which require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged lands and the activity also qualifies for an environmental resource permit, the "Consolidated Notice of Intent" will be issued and will contain general and specific conditions. In the event the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity otherwise qualifies for an environmental resource permit, the DEP will issue a "Consolidated Notice of Denial" for both the environmental resource permit and the authorization to use sovereignty submerged lands.

The lessee is proposing to reconstruct and expand an existing 46-slip commercial marina that was damaged by Hurricane Dennis on August 27, 1999, and Hurricane Irene on October 16, 1999. These storms destroyed two sections of docks and rendered all but six slips in the marina unusable. An inspection of the facility was conducted on January 19, 2000, and the facility was found to be heavily damaged. In conjunction with reconstructing the marina the lessee proposes to modify and enlarge the facility by (1) expanding the marina basin/mooring area from 65,335 square feet to 142,441.20 square feet; (2) increasing the number of boat slips by 20 slips for a total maximum of 66 slips; (3) increasing the size of the docks to accommodate larger recreational vessels ranging from 10 to 150 feet in length; (4) constructing a concrete wave barrier to create a ‘safe harbor’ for the mooring of vessels within the marina; (5) dredging accumulated sediments from around an outfall pipe within the marina; and (6) installing a total of 192 cubic yards of riprap material waterward of an existing vertical seawall. All boat slips at the marina will be open to the public on a first-come, first-served basis. A special lease condition has been added to address this issue. No casino vessels exist or are proposed for this marina facility.

The existing lease was originally approved on October 24, 1975 as a license and permit (No. 05-30-0167-4E) for the installation of 13 new docks to an existing dock facility encompassing a total of 10,388 square feet of preempted area. The license was subsequently renewed through June 30, 1979. A regulatory permit (No. 05-6788-4E) was issued on August 28, 1978 to add 33 new slips, a wavebreak under docks, and install channel daymarkers. On August 8, 1979 a sovereignty submerged land lease was issued for a period from July 18, 1978 to July 18, 1982. On November 11, 1983, a request was presented to the Board of Trustees to increase the preempted area to 65,335 square feet and approximately 60 slips. The lease (No. 050001674) was approved on December 13, 1983 through December 13, 1988. The lease was subsequently certified to have 46 slips. Four slips eventually were silted in and were considered unusable.

 

Board of Trustees

Agenda – July 11, 2000 Substitute Page Eight

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Substitute Item 5, cont.

The proposed lease area will be bounded on the east and north by a 700.50-foot-long by 10-foot-wide "L"- shaped concrete dock/wave barrier; a 203-foot-long by 8-foot-wide access walkway with a 103-foot-long by 8-foot-wide terminal platform will be located in the central portion of the marina. Bordering on the west will be a 461.75-foot-long by 8-foot-wide meandering dock, of which 88.8 feet of this structure will be a concrete dock with a wave barrier. The facility will have a total of 21 finger piers varying in lengths from 25 to 60 feet and widths from 3 to 8 feet. A 306-foot-long by 8-foot-wide boardwalk (pedestrian walkway) will be constructed along the shoreline. A 133-foot-long by 8-foot-wide dock will extend from the boardwalk. An existing travel lift will be maintained and an existing boat ramp will be removed and replaced with coquina riprap material. The riprap material will be placed along the face of the existing seawall that extends along 325 feet of shoreline. The 192 cubic yards of riprap will extend to 8 feet waterward of the mean high water line.

The lessee is also proposing to dredge 600 cubic yards of accumulated sediment within the southeast corner of the marina basin, waterward of an existing outfall pipe, to a depth of –4.5 feet mean low water. The spoil material will be removed and deposited on the uplands and transported to public property to be used for public purposes. The lessee qualifies for a waiver of the severance fee, pursuant to section 18-21.011(3)(c)1, F.A.C, which provides for a waiver when the material is being placed on public property and used for public purposes.

The adjacent uplands are used for retail sales, a marine store, a shipbuilding yard and a dry storage facility. The marina facility is located in the Indian River in an area of good flushing with water depths ranging from –2.5 feet mean low water to –5.5 feet mean low water. The proposed dredging, riprap installation, reconstruction and expansion of the marina facility will have minimal impact on submerged aquatic resources.

The DEP environmental resource permit authorizes sewage pumpout facilities and the mooring of liveaboards, and prohibits fueling facilities. The proposed project is not located in an aquatic preserve, and staff is of the opinion that the proposed project is not contrary to the public interest. The project was noticed pursuant to section 253.115, F.S., and no objections were received by June 13, 2000, the end of the comment period.

According to the Florida Fish and Wildlife Conservation Commission, Bureau of Protected Species Management, the proposed project will not significantly affect the endangered manatee so long as the lessee: (1) limits the total number of powerboats allowed (wet and dry storage) at this facility to 59; (2) constructs the wave break along the eastern dock so that a eight-inch gap (or some lesser distance) exists between the bottom of the lowest wave panel and substrate; (3) installs grating over all pipes greater than 18 inches, but smaller than six feet in diameter. Bars or grates no more than 8 inches apart shall be placed on the accessible end(s) to restrict manatee access. The installation of grates applies to any submerged or partially submerged pipes and culverts accessible to manatees during any tidal phase; (4) follows the standard manatee construction conditions for all in-water construction; (5) installs and maintains permanent manatee information and/or awareness sign(s) to increase boater awareness of the presence of manatees and of the need to minimize the threat of boats to these animals; and (6) installs a literature display to distribute (at no charge) the "Brevard County Manatee Protection Zones" booklets to boaters using the docking facility. These items have been included as specific conditions in the environmental resource permit.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S.; however, the Department of Community Affairs (DCA) determined that the plan was not in compliance. In accordance with the compliance agreement between the DCA and the local government, an amendment has been adopted which brought the plan into

Board of Trustees

Agenda – July 11, 2000 Substitute Page Nine

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Substitute Item 5, cont.

compliance. The proposed action is consistent with the adopted plan as amended according to a letter received from the city of Cocoa.

(See Attachment 5, Pages 1-28)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL LEASE CONDITIONS AND PAYMENT OF $8,358.39

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Item 6 Tyco Submarine Systems, Ltd. Recommended Consolidated Intent

REQUEST: Consideration of an application for (1) a 25-year sovereignty submerged land easement containing a combined 252,610.8 square feet, more or less, for six conduits and an initial two fiber optic cables, four conduits are reserved for future cable installation, with a requested easement width of two feet for each cable, on or under the sovereignty submerged lands of the Atlantic Ocean out to the state’s territorial limit; and (2) authorization for the severance of 180.5 cubic yards of sovereign material.

COUNTY: Palm Beach

Easement No. 30524

BOT No. 500220976

Application No. 50-0164707-001

APPLICANT: Tyco Submarine Systems, Ltd. (Tyco)

LOCATION: Section 09, Township 47 South, Range 43 East, in the Atlantic Ocean, Class III Waters, within the local jurisdiction of the city of Boca Raton in Palm Beach County

Aquatic Preserve: No

Outstanding Florida Waters: No

CONSIDERATION: (1) An initial one-time easement fee at a rate of $0.0057 per square foot as determined by a real property appraisal that considered the extent to which the easement is exclusionary, but did not consider the "enhanced value or profit gained by the applicant" pursuant to section 18-21.011(2)(b)2, F.A.C.; (2) an interim "enhanced value or profit gained" fee of $5.00 per linear foot of cable; and (3) a fee for the severance of sovereign material computed at the rate of $2.25 per cubic yard pursuant to section 18-21.011(3)(a)2, F.A.C. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable. The initial one-time easement fee and interim "enhanced value" fee shall be determined based upon receipt of an acceptable survey and legal description of the easement area. The easement fee may be revised upward or downward at a later date should the Board of Trustees adopt rules revising the fees for easements, or establish different procedures for determining the "enhanced value or profit gained by the applicant."

STAFF REMARKS: The Board of Trustees authorized a rule amendment on September 14, 1995, to "link" the two processes of regulatory and proprietary reviews and authorizations. The rule became effective October 12, 1995. As a result of this linkage, the recommended Department of Environmental Protection (DEP) regulatory permit decision and the recommendation to the Board of Trustees on the proprietary authorization are contained in one document, the "Consolidated Notice of Intent to Issue," which is attached. The attached consolidated intent contains a recommendation for issuance of a permit under Part IV of

Board of Trustees

Agenda – July 11, 2000 Page Ten

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Item 6, cont.

chapter 373, F.S., and a recommendation for granting authorization, as recommended by staff, to use sovereignty submerged lands under chapter 253, F.S., for the activity described therein. This recommendation is provided to the Board of Trustees pursuant to section 373.427(2), F.S. A description of the requested activity is provided in Section I, "Description of the Proposed Activity." The specific basis for recommending approval of the authorization to use sovereignty submerged lands is contained in Section III, "Background/Basis for Issuance."

Approval by the Board of Trustees is requested only for those aspects of the activity which require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged lands and the activity also qualifies for an environmental resource permit, the "Consolidated Notice of Intent" will be issued and will contain general and specific conditions. In the event the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity otherwise qualifies for an environmental resource, the DEP will issue a "Consolidated Notice of Denial" for both the environmental resource wetland resource permit and the authorization to use sovereignty submerged lands.

The applicant, Tyco, is requesting authorization for the installation of fiber optic telecommunications cables below the mean high water line of the Atlantic Ocean out to the State’s territorial limits (3 nautical miles). The project involves installation of six conduits (6.25 inch-diameter each), starting from concrete manholes on uplands within the city of Boca Raton’s Spanish River Park, then easterly from the manholes out approximately 3,500 feet offshore where they will emerge on the sea floor of the Atlantic Ocean. An initial two fiber optic cables, the other four conduits are reserved for future cable installation, will be laid or embedded on the sea floor and routed through the conduits for connection to the upland manholes. From the manholes the cables will be backhauled (transit from the manholes to the distribution network) westerly through uplands and a crossing of the Intracoastal Waterway. The crossing of the submerged lands of the Intracoastal Waterway is being processed under delegated authority as a separate application.

White Paper

In the last few years, the DEP has seen an increasing number of requests to install fiber optic telecommunication cables (FOCs) on or under sovereignty submerged lands both within the state and offshore of the coastline. Because of this, in 1999, staff began evaluating both the regulatory and proprietary issues associated with installation of FOCs, and has prepared the attached "White Paper," that provides background information of FOCs and industry growth, discusses the regulatory and proprietary requirements and related issues, and provides recommendations for addressing the issues.

FOCs are increasingly becoming the primary means of transmitting telecommunications over long distances throughout the world. Because FOCs are able to carry a much greater bandwidth than wire, microwaves, or satellites, they are rapidly replacing those means of voice, video, and data transmission for long-distance communications. Because of the increasing demand for FOCs, the Federal Communication Commission (FCC) has adopted a Notice of Proposed Rulemaking to streamline its licensing process for international submarine cable systems.

Because of their cost, FOCs traditionally have been owned and operated by consortiums of companies that are common carriers, with each common carrier receiving the rights to use a specific amount of bandwidth over some or all of the cable. However, many new or proposed FOCs are now being financed primarily by private companies that are not common carriers.

Board of Trustees

Agenda – July 11, 2000 Page Eleven

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Item 6, cont.

Capacity on these investor-owned FOCs are made available to any carrier on the open market. In this way, common carriers do not have to commit capital on a long-term basis to construct new FOCs, but instead can purchase capacity when required.

Florida’s regulatory programs governing the authorization, installation, modification, repair, and removal of FOCs vary depending on where the installation is occurring in the state. In any case, the jurisdiction of the permit program extends offshore to the limits of the state’s territorial waters. FOC installation may be authorized by individual permits, general permits, noticed general permits, and in some cases may be exempt from permitting depending on installation techniques and location. Regulatory permitting requirements are discussed in detail in the White Paper. Of particular note is that section 403.813(2)(m), F.S., provides an exemption from permitting for certain types of installation of transmission lines (except in Class I and II waters and aquatic preserves). This exemption is generally applicable for the FOC segments that are laid on or embedded in the bottoms of sovereignty submerged lands, including the offshore waters of the Gulf of Mexico and Atlantic Ocean.

However, regardless of whether an FOC installation is exempt from regulatory permitting requirements, the Board of Trustees may review the environmental impacts of the installation under its proprietary authority and impose conditions on such installations.

The environmental impacts of FOC installation are largely influenced by:

  • proximity to sensitive resources (seagrasses, coral reefs and other hardbottom communities);
  • construction techniques (directional drilling, open trench installation, and laying or embedding the cable on the water bottom); and
  • management of construction equipment and materials.

Additional proprietary issues associated with FOC installation include:

  • potential conflicts with other uses of submerged lands;
  • use of submerged lands for convenience as opposed to necessity (water dependent use);
  • decreasing availability of road and railroad rights-of-way for cable installation;
  • the siting of off-shore routes; and
  • whether easement fees should be assessed and the methods for assessing such fees.

Staff has developed the following recommendations on the proprietary issues associated with FOCs and utility easements.

Evaluate Private versus Public Easements and Fees. Pursuant to section18-21.005(d), F.A.C., the form of proprietary authorization for utility crossings is an easement. Both public and private easements may be authorized depending on whether the project serves a public or private purpose. Both public and private easements are subject to the proprietary, resource management, and riparian rights provisions of chapter 18-21, F.A.C, the significant difference being a private easement is assessed an easement fee. A review of databases and files indicates that from 1977 to April 1998 a total of 81 easements for the use of submerged lands were issued for telephone, television and other telecommunications lines. All were issued as public easements, presumably under the assumption that the applicants were public utilities or that the projects provided a significant public benefit.

In section 18-21.003(42), public utilities are defined as "those services, provided by persons regulated by the Public Service Commission, or which are provided by rural cooperatives, municipalities, or other governmental agencies, including electricity, public water and wastewater services, and structures necessary for the provision of these services and

Board of Trustees

Agenda – July 11, 2000 Page Twelve

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Item 6, cont.

transmission lines for public communication systems such as telephone, radio and television." This definition has been in its current form since 1982. The rationale for this appeared to be that there would be a regulatory body controlling the price and availability of the service to the general public. The Public Service Commission (PSC) in 1982 regulated railroads, telephone companies, private wire services (telegraph, radio, television, telephone), and water and wastewater systems. The PSC currently regulates electric and gas companies supplying to the public (section 366.02, F.S.), railroads (chapter 351, F.S.), telecommunications companies (chapter 364, F.S.), telephone companies (chapter 365, F.S.), and water and wastewater systems (chapter 367, F.S.).

Internet and multiple media data transmission over FOCs were not contemplated under this definition. As utilities became increasingly competitive and deregulated the distinction between private and public utilities faded, especially with regard to the telecommunications industry.

Staff recommends that the current definition of public utilities be narrowly construed until the emerging issues associated with easements and easement fees can be further evaluated and the Board of Trustees’ rules revised as discussed below. Until such time, staff recommends that pending future FOC and other telecommunications projects be authorized with a private easement unless the applicant can demonstrate that all of the services provided over the FOC or other transmission line is regulated by the PSC (unless the applicant is a municipality, other government agency or a rural cooperative).

The Board of Trustees has previously requested staff to develop recommendations for easement fees, including those for public utilities. Staff has collected data from other states on fees for using sovereignty submerged and other public lands by FOCs and other utilities. The easement fees assessed by Florida and other states for use of sovereignty submerged lands by FOCs and other utilities are extremely simple when compared to the complex fee arrangements negotiated between major private and public right-of-way holders and the utility companies. State fees are typically set on a flat rate (see White Paper, Table 1), with fees commonly in the range of $1.00 to $2.00 per linear feet of cable, though some states charge a much higher fee (e.g. New Jersey - $7.50/linear foot, New York - $12.74/linear foot).

Under section 18-21.011(2), F.A.C., submerged lands easement fees are initially determined based on standard real estate appraisal procedures. However, additional factors are to be considered, including the extent to which the easement is exclusionary, and the enhanced property value or profit gained by the applicant. The Division of State Lands has developed procedures for determining the enhanced value to uplands from a submerged lands easement. For example, if the upland tract is an island, an easement across submerged lands for a bridge and electric, water, and wastewater services would create a significant enhancement to the value of the uplands. An appraisal is conducted of the value of the upland with and without the easement. The Board of Trustees has historically assessed an easement fee from 10-20 percent of the enhanced upland value. However, there are no established procedures for determining and assessing a fee based on the profit gained by the applicant from an easement.

The appraisal conducted for Tyco concluded that the market value of the easement was $0.0057 per square foot, or about $250 per acre based on comparable sales of wetlands and other non-developable and semi-developable real estate, including a consideration of the extent to which the easement was exclusionary. At an easement width of ten feet per cable this converts to a flat rate of $0.06 per linear foot.

 

Board of Trustees

Agenda – July 11, 2000 Page Thirteen

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Item 6, cont.

It is recommended that the Board of Trustees direct staff to solicit outside expertise, familiar with FOC and other utilities, to evaluate various methods for assessing appropriate easement fees, including methods for assessing fees based on the "enhanced value or profit gained by the applicant." This evaluation should include all types of utilities located on submerged lands and uplands owned by the Board of Trustees. It should also evaluate whether there should be fee discounts or waivers for certain utilities and services. Staff further requests permission to initiate rulemaking, pending the results and recommendations from the evaluation, for revisions to the current rules on easements and easement fees.

Until the rules are revised, private submerged lands easements for FOCs and telecommunications lines will continue to be assessed an easement fee initially determined by standard appraisal procedures. However, staff recommends that until the fee evaluation and rule revisions, if any, are completed that FOC or other telecommunications be assessed an interim "enhanced value and profit gained" fee of $5.00 per linear foot. It is also recommended that any new private easements on submerged lands and state-owned uplands be conditioned such that a revised easement fee be assessed should the Board of Trustees revise current rules related to easement fees. Similar language has been a standard condition of public easements for many years.

Update severance fees. The severance fees in section 18-21.011(3)(a), F.A.C., should be updated through the above rulemaking to reflect the current market value of these materials.

Evaluate Offshore Corridor Routes. The majority of the proposed offshore FOCs are being located along the southeast coast of Florida adjacent to Dade, Broward, and Palm Beach Counties. The main factor that influences route selection is the connection of the FOC to upland telecommunication distribution facilities. It is recommended that staff solicit proposals for evaluating offshore locations for corridors along the coastline, including the southeast coast where many FOCs are being proposed, that would minimize the impact on sensitive resources, avoid user conflicts, and minimize the disruption of beach renourishment projects. Locating acceptable corridor routes will streamline the future permitting of offshore FOCs.

Until the feasibility of corridors can be fully evaluated, staff recommends that easements only be authorized where an applicant can clearly demonstrate the need for the project. Need may be demonstrated by a contract for purchase of a cable, a contract for laying the cable, or other appropriate documentation. The environmental impacts of such projects will be reviewed and addressed on a case-by-case basis under applicable laws and regulations. The impacts of projects that are exempt from regulatory permitting will be reviewed and addressed under the Board of Trustees’ proprietary authority as easement conditions.

Tyco Request

Staff has the following specific recommendations on the Tyco application:

  • Tyco has certified that it has contracts for the laying of at least two cables and therefore it has demonstrated need for the project.
  • A private easement is the proper form of authorization because the applicant and all services provided through the FOCs are not regulated by the PSC and, therefore, does not meet the definition of a public utility.

  • Tyco has tried to minimize the impacts of the proposed routes by avoiding potential beach renourishment borrow areas as recommended by the city of Boca Raton, bunching and routing of cables to minimize the distance the cables will be placed over hardbottom

Board of Trustees

Agenda – July 11, 2000 Substitute Page Fourteen

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Item 6, cont.

communities. Tyco will provide mitigation of unavoidable hardbottom impacts in the form of artificial reef modules.

  • A minimum easement width for each cable of ten feet as opposed to the two feet requested.
  • An initial one-time easement fee at a rate of $0.0057 per square foot as determined by the real property appraisal provided by Tyco, and a interim "enhanced value or profit gained" fee of $5.00 per linear foot of cable. This is addressed as a special easement condition.
  • A special easement condition that will provide for the assessment of a revised easement fee should the Board of Trustees revise current rules related to easement fees or approve procedures for the assessment of easement fees based upon the "profit gained by the applicant." This will become a new standard easement condition on all future private easements.
  • Severance fees be charged based on the amount of sovereign materials removed.

According to the Florida Fish and Wildlife Conservation Commission, Bureau of Protected Species Management, the proposed project will not significantly affect endangered marine turtles so long as the applicant adheres to the following conditions: (1) With the exception of the horizontal drilling phase of the project, no construction, operation, transportation or storage of material/equipment are authorized on the beach and dune system during the marine turtle nesting season (March 1 through October 31); and (2) No temporary lighting of the construction area visible from any part of the beach is authorized at any time during marine turtle nesting season. No permanent lighting is authorized.

The proposed project was noticed pursuant to section 253.115, F.S., in a newspaper of general circulation. The DEP has received one objection from Reefkeeper International (attached) on the direct and cumulative cable impacts to corals, reefs and hardbottom communities, and the consequential degradation, disruption and interference to recreational diving and its supporting industry.

A consideration of the status of the local government comprehensive plan was not made for this item. The city of Boca Raton’s Recreation and Parks Department has recommended that the city of Boca Raton approve the location subject to fees and conditions.

(See Attachment 6, Pages 1-90)

RECOMMEND (1) APPROVAL OF STAFF’S GENERAL RECOMMENDATIONS ON FIBER OPTIC TELECOMMUNICATION CABLES AND UTILITY EASEMENTS; AND (2) AUTHORIZATION OF A PRIVATE EASEMENT TO TYCO IN ACCORDANCE WITH STAFF’S SPECIFIC RECOMMENDATIONS for six conduits and an initial two fiber optic cables, subject to the special approval CONDITION and special easement conditions

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Substitute Item 7 Atlantica USA L.L.C. Recommended Consolidated Intent

REQUEST: (1) Consideration of an application for a 25-year sovereignty submerged land private easement containing a combined 1,253,637.4 square feet, more or less, with a requested easement width of 30 feet (Atlantic Ocean) and 10 feet (Atlantic Intracoastal Waterway), for four conduits and an initial two offshore fiber optic cables, two conduits are

Board of Trustees

Agenda – July 11, 2000 Substitute Page Fifteen

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Substitute Item 7, cont.

reserved for future cable installation, on or under the sovereign lands of the Atlantic Ocean out to the state’s territorial limit and under the Atlantic Intracoastal Waterway; and, (2) authorization for the severance of 67 cubic yards of sovereign material.

COUNTY: Palm Beach

Easement No. 30537

BOT No. 500221236

Application No. 50-0163252-001

APPLICANT: Atlantica USA L.L.C. (Atlantica)

LOCATION: Sections 29 and 30, Township 54 South, Range 43 East, in the Atlantic Ocean and under the Atlantic Intracoastal Waterway, Class III Waters, within the jurisdiction of the city of Boca Raton in Palm Beach County

Aquatic Preserve: No

Outstanding Florida Waters: No

CONSIDERATION: (1) An initial one-time easement fee to be determined by a real property appraisal pursuant to section 18-21.011(2)(b)2, F.A.C.; (2) an interim "enhanced value or profit gained" fee of $5.00 per linear foot of cable, in accordance with the recommendation under the Tyco agenda item (Item 6); and (3) a fee for the severance of sovereign material computed at the rate of $2.25 per cubic yard pursuant to section 18-21.011(3)(a)2, F.A.C. Sales tax will be assessed pursuant to section 212.031, F.S., if applicable. The initial one-time easement fee and interim "enhanced value" fee shall be determined based upon receipt of an acceptable survey and legal description of the easement area. The easement fee may be revised upward or downward at a later date should the Board of Trustees adopt rules revising the fees for easements, or establish different procedures for determining the "enhanced value or profit gained by the applicant."

STAFF REMARKS: The Board of Trustees authorized a rule amendment on September 14, 1995, to "link" the two processes of regulatory and proprietary reviews and authorizations. The rule became effective October 12, 1995. As a result of this linkage, the recommended Department of Environmental Protection (DEP) regulatory permit decision and the recommendation to the Board of Trustees on the proprietary authorization are contained in one document, the "Consolidated Notice of Intent to Issue," which is attached. The attached consolidated intent contains a recommendation for issuance of a permit under Part IV of Chapter 373, F.S., and a recommendation for granting authorization, as recommended by staff, to use sovereignty submerged lands under chapter(s) 253 and 258, F.S., for the activity described therein. This recommendation is provided to the Board of Trustees pursuant to section 373.427(2), F.S. A description of the requested activity is provided in Section I, "Description of the Proposed Activity." The specific basis for recommending approval of the authorization to use sovereignty submerged lands is contained in Section III "Background/Basis for Issuance."

Approval of the Board of Trustees is requested only for those aspects of the activity which require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged lands and the activity also qualifies for an environmental resource and no challenges are successful, the "Consolidated Notice of Intent" will be issued and will contain general and specific conditions. In the event the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity otherwise qualifies for an environmental resource, the DEP will issue a "Consolidated Notice of Denial"

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Agenda – July 11, 2000 Substitute Page Sixteen

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Substitute Item 7, cont.

for both the environmental resource permit and the authorization to use sovereignty submerged lands.

The applicant, Atlantica, is requesting authorization for the installation of fiber optic telecommunications cables below the mean high water line of the Atlantic Ocean out to the State’s territorial limits (3 nautical miles) and under the Atlantic Intracoastal Waterway. The project involves the directional drilling of four 4-inch diameter subaqueous cable shafts and the installation of four conduits into the Atlantic Ocean. A concrete manhole will be installed on the uplands within South Beach Park, west of the dune system in Boca Raton. The shafts will be drilled easterly from the manholes to a typical depth of 20 feet below the sea floor. The shaft casings (conduits) will emerge from their bore holes on the sea floor surface approximately 2,500 feet offshore from the manhole. It is common practice in the industry to jet and bury the terminal end of the conduit into a three-foot-deep trench. An initial two fiber optic cables will be passed through two of the conduits where they will be connected to the land-based cables in the manhole. The two offshore cables will then be laid upon the territorial sea floor to beyond the state 3-mile territorial limit.

Staff has the following specific recommendations on the Atlantica application:

  • Atlantica has certified that it has contracts for two cables and therefore it has demonstrated need for the project.

  • A private easement is the proper form of authorization because the applicant and all services provided through the FOCs are not regulated by the PSC and, therefore, does not meet the definition of a public utility.

  • Atlantica will provide mitigation of unavoidable hardbottom impacts in the form of artificial reef modules.

  • A minimum easement width for each cable of ten feet as opposed to the 30 feet requested.

  • An initial one-time easement fee to be determined by a real property appraisal to be provided by Atlantica, and a interim "enhanced value or profit gained" fee of $5.00 per linear foot of cable. This is addressed as a special easement condition.

  • A special easement condition that will provide for the assessment of a revised easement fee should the Trustees revise current rules related to easement fees or approve procedures for the assessment of easement fees based upon the "profit gained by the applicant." This will become a standard easement condition on all future private easements.

  • Submittal of an approved appraisal of the proposed easement area prepared by a fee appraiser selected from the Department of Environmental Protection, Bureau of Appraisal's approved listing.
  • Severance fees be charged based on the amount of sovereign materials removed.

These recommendations are in accordance with the recommendations to the Board of Trustees concerning the Tyco item (Item 6).

According to the Florida Fish and Wildlife Conservation Commission, Bureau of Protected Species Management, the proposed project will not significantly affect endangered marine turtles so long as the applicant adheres to the following conditions: (1) With the exception of the drill boring horizontally 15 feet below the sand surface, no construction, operation, transportation or storage of material/equipment are authorized seaward of the existing dune crest during marine turtle nesting season (1 March through 31 October); and (2) No temporary lighting of the construction area visible from any part of the beach is authorized at any time during turtle nesting season (1 March through 31 October). No permanent lighting is authorized.

Board of Trustees

Agenda – July 11, 2000 Substitute Page Seventeen

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Substitute Item 7, cont.

The proposed project was noticed pursuant to section 253.115, F.S., in a newspaper of general circulation. The DEP has received one objection from Reefkeeper International (attached) on the direct and cumulative cable impacts to corals, reefs and hardbottom communities and the consequential degradation, disruption and interference to recreational diving and its supporting industry.

The project is not located in an aquatic preserve. Staff is of the opinion that with the payment of equitable compensation and submittal of acceptable drawings, the proposed project is in the public interest pursuant to section 18-21.010(1)(e), F.A.C.

A consideration of the status of the local government comprehensive plan was not made for this item. The city of Boca Raton granted an easement to the applicant for the use of the upland site.

(See Attachment 7, Pages 1-34)

RECOMMEND AUTHORIZATION OF A PRIVATE EASEMENT TO ATLANTICA IN ACCORDANCE WITH STAFF’S SPECIFIC RECOMMENDATIONS FOR FOUR CONDUITS AND TWO CABLES, SUBJECT TO THE SPECIAL APPROVAL CONDITION AND SPECIAL EASEMENT CONDITIONS

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Item 8 Response to PEER Petition to Initiate Rulemaking/Chapter 18-21, F.A.C./ Fiber Optic Cables

REQUEST: Consideration of a proposed Response to Petition to Initiate Rulemaking in chapter 18-21, F.A.C., filed with the Board of Trustees by Public Employees for Environmental Responsibility, related to authorization of and payment for fiber optic cables placed on sovereign submerged lands.

APPLICANT: Department of Environmental Protection

OGC Case No. 00-1097

STAFF REMARKS: On May 23, 2000, Petitioner, Public Employees for Environmental Responsibility (PEER), filed a petition with the Board of Trustees of the Internal Improvement Trust Fund (Board of Trustees) to initiate emergency rulemaking and standard rulemaking to ensure that the Board of Trustees collected fair compensation for, and protected the environment from, private fiber optic cable use of sovereign submerged lands, and to take other appropriate action. Other action requested in the petition included declaring a moratorium on approval of any public easements for private fiber optic cables; requesting a comprehensive report on all fiber optic cables with public easements from the Department of Environmental Protection (DEP); requesting an opinion from the Attorney General relative to invalidation of existing public easements for fiber optic cables; and consideration of corridors for all fiber optic cables.

Subsequently, on June 13, 2000, Telefonica SAM U.S.A. filed a Petition to Intervene and a Motion to Dismiss the Petition for Emergency Rule (attached). On June 12, 2000, a written response to PEER’s petition was also submitted by AT&T (attached).

Board of Trustees

Agenda – July 11, 2000 Page Eighteen

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Item 8, cont.

The proposed Response to Petition to Initiate Rulemaking denies the petition for emergency rulemaking. Petitioner’s allegation of an immediate threat to public welfare is insufficient on its face under section 120.54(4), F.S., and the case law stated within the attached Response in that it fails to set forth sufficient factually explicit and persuasive reasons for finding a "genuine" emergency. No emergency exists because no activity is allowed on sovereign submerged lands without the consent of the Board of Trustees under section 253.77, F.S.; i.e., the entities addressed in the petition may not lay fiber optic cable on sovereign submerged lands until and unless the Board of Trustees approves a request for an easement. An emergency rule to deal with pending and future applications for easements is unnecessary inasmuch as the Board of Trustees can "approve, approve with conditions or modifications, or deny all requests for activities on sovereign submerged lands" under section 18-21.004(1), F.A.C. There is no requirement that the Board of Trustees approve proprietary applications within a prescribed time period. Failure to act on an application does not result in issuance of approval by default. See section 373.427(2)(b), F.S.; Board of Trustees of the Internal Improvement Trust Fund v. Lost Tree Village Corp., 600 So. 2d 1240 (Fla. 1st DCA 1992). Accordingly, because the petition does not set forth an immediate danger to the public welfare, and because sufficient factually explicit and persuasive reasons for declaring a "genuine" emergency do not exist, the portion of the petition requesting emergency rulemaking should be denied.

In the case of standard rulemaking, the Board of Trustees, through staff, has already effectively initiated rulemaking by entering into the policymaking phase. Formal publication at this point is premature, and it is not required because rulemaking is not yet "feasible." Section 120.54(1)(a), F.S., states that "[e]ach agency statement defined as a rule by section 120.52 shall by adopted by the rulemaking procedure provided by this section as soon as feasible and practicable." Rulemaking is not feasible if "[t]he agency has not had sufficient time to acquire the knowledge and experience reasonably necessary to address a statement by rulemaking," under section 120.54(1)(a), F.S. The Board of Trustees has not had sufficient time to address the issues related to this area of emerging technology and complex operations so as to begin publication of rule notices. However, staff’s intent is to address the issues fully in the rulemaking process when rulemaking becomes feasible and practicable. Full and complete public participation in this process will be encouraged.

The Board of Trustees’ staff has been studying the many issues related to the regulatory permitting and proprietary management of fiber optic cables for many months and has compiled the results of that study in a "white paper." In fact, the investigation and resulting "white paper" predated the PEER petition and is the source from which much of the petition was taken. Staff presented the results of this study together with an outline of policy issues to the Cabinet Aides at a workshop on June 14, 2000. The culmination of this study and staff’s recommendations are being presented to the Board as part of a request for approval of an application for a private easement by Tyco Submarine Systems, Ltd. (Tyco), also on this agenda. The white paper attached to the Tyco agenda item is the same one that will be attached to the Response to Petition to Initiate Rulemaking. The recommendations in the Tyco agenda item as to fiber optic cable authorizations and fees form the basis for determining in the Response to PEER’s petition that the Board of Trustees "otherwise compl[ied]" under section 120.54(7),(a), F.S., with the substance of PEER’s petition to initiate rulemaking. The Tyco item recommendations are accordingly incorporated into this item by reference.

In light of the recommended Response to PEER’s petition, the Petition to Intervene and Motion to Dismiss Petition for Emergency Rule filed by Telefonica SAM U.S.A. are moot and need not be acted upon by the Board of Trustees.

Board of Trustees

Agenda – July 11, 2000 Page Nineteen

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Item 8, cont.

(See Attachment 8, Pages 1-83)

RECOMMEND APPROVAL OF RESPONSE TO PETITION TO INITIATE RULEMAKING

 

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