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2018 State and Federal Intergovernmental Agenda

Presented to the Mayor & City Commission of

Tallahassee on October, 25th 2017

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SECTION I: STATE LEGISLATIVE GUIDING PRINCIPLES

Each year, the Mayor and City Commission formulates federal and state intergovernmental guiding principles that help to direct the priorities and opportunities for City Leadership and our lobbyists. The following principles are submitted for the Mayor and City Commission’s consideration in relation the 2018 State and Federal Agenda:

Advocating for policies that promote local job growth.

Opposing legislation that restricts decision-making authority from local governments and/or transfers that authority to the state or federal governments.

Advocating for the interests of state employees, especially pay raises.

Collaborating with Tallahassee’s higher education institutions to advocate for their interests and promote legislation that supports their success.

Supporting the Florida League of Cities’ (FLC) legislative priorities and action agenda items that are consistent with the City of Tallahassee’s positions.

Protecting local water quality and other natural resources.

Maintaining current state government and quasi government building leases and corporate office presence in Tallahassee.

Opposing unfunded mandates.

Opposing legislation that undermines the quality of services the City provides to its constituents.

Promoting more efficient and more cost-effective government.

Seeking federal and state grants and other funding opportunities that expand or maintain services provided by the City.

Supporting policies or strategies that promote state worker travel via Tallahassee International Airport.

Update the public notice process to change the required media to modern electronic methods.

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SECTION II - STATE LEGISLATIVE PROGRAM

Leading up to the 2018 legislative session, the City of Tallahassee has remained in contact with our House and Senate delegation to ensure the priority issues of this community and government receive the appropriate consideration from the state legislature. We have also stayed in close communication with our two contracted lobbying teams to stay abreast of the big issues and opportunities as they manifest as we enter legislative committee weeks. This year’s session officially opens January 9, 2018 and is scheduled to adjourn on March 9, 2018. As a result, the Legislature is scheduled to hold committee meetings on the following dates:

September 11 – 15 – CANCELLED due to Hurricane Irma October 9 - 13 October 23 - 27 November 6 - 9 November 13 - 17 December 4 – 8

The City of Tallahassee’s priorities this year on the appropriations side range from infrastructure requests, local capital improvements, investment in local water projects, as well as renewed efforts to improve resiliency and storm-readiness. For state issues, we remain vigilant of unfunded mandates, tax cuts, and burdening regulation of municipal government, including attacks on local Community Redevelopment Agencies and preemption efforts of any kind.

The short-term/long-term financial outlook of the state is expected to present some challenges this legislative session. Florida’s Joint Legislative Budget Commission (LBC), which is made up of members of the House and Senate leadership and appropriations committees, heard a presentation from the state’s economist on Florida’s Long Range Outlook in mid-September. The report showed both good news and bad news. The good news: Florida’s reserves are strong. The bad news: Florida’s general revenue demands exceed the amount of recurring general revenue available for the next three-years.

Hurricane Irma will also have an impact on the state’s bottom line, with early estimates suggesting a shortfall from $25 to $46 billion. The state has already spent $141 million on hurricane recovery efforts, with that number likely to increase. Analysis of previous hurricane seasons predict that there will be a negative financial impact, with state revenue (including sales tax) falling in the short term. In the 2005 season, the state spent $626 million, while reaping only $422 million in increased revenue. In the long term, state revenue might increase as insurance payments go out and storm recovery construction occurs. Given the impact of these storms, many of the projects put forth by the City are closely tied to storm resiliency and emergency preparedness.

The Mayor’s Office is proud to work with the City Commission, City Staff, Lobbying teams and Community partners to create and present this year’s State Legislative program, and looks forward to a productive 2018 Legislative Session.

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2017 Appropriation Items

TRANSPORTATION AND ECONOMIC DEVELOPMENT

ISSUE AMOUNT

Capital Circle – right of way $7,586,400

City of Tallahassee Transit Operating Assistance $1,089,406

Tallahassee Regional Airport Runway 18/36 Re-Construction $1,000,000

City of Tallahassee Waterworks Restoration $50,000

Other 2017 Local Appropriation Items

1. FSU Earth Ocean Atmospheric Building $16,040,737

2. FSU Lab School - Arts & Sciences Building $7,500,000

3. FSU Interdisciplinary Research Commercialization Building

$6,774,101

4. FSU College of Business Building $5,000,000

5. The Apalachee Center $4,245,453

6. FSU Stem Teaching lab $4,233,813

7. FAMU Student Affairs Building $3,500,000

8. FSU Autism Navigator $1,353,292

9. FSU (College of Medicine) Autism Program $1,224,008

10. Children's Home Society - CaseAim $774,253

11. Family Café $450,000

12. African American Heritage Network $400,000

13. Teen Trendsetters $300,000

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SECTION III: STATE APPROPRIATIONS

Summary

1. City and County Back-Up Generators for Power Safe Havens o $2 million

2. Purchase and Installation of Emergency Generators for

Sewage Pump Stations & Water Supply Wells o $3.5 million

3. Enhance Treatment Filtration Process for Water Well #23

o $4.5 million

4. Northwest Elevated Water Storage Tank Replacement o $2.5 million

5. Replacement and Upgrade of Pump Station 12

o $7.5 million

6. Undergrounding Utilities in Medical Corridor o $16 million

7. Tallahassee Future Leaders Academy Program Expansion

o $500,000

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Power Safe Havens: Generators for Libraries & Community Centers

- $2 million

Submitted by: Deputy City Manager’s Office

Project/Issue Description

Shelters typically serve to house people during and after a dangerous storm event. Following Hurricane Hermine and Irma, we learned that much of the community can shelter in place, but need access to facilities to get water, ice, cool down, and charge electronic equipment. Geographically dispersed community comfort stations could serve this purpose. Ten locations throughout Tallahassee and Leon County have been identified for such use. These locations are a mixture of Libraries and Community Centers. By taking these preventative measures, the City of Tallahassee intends on offering alternative spaces for people that are without power to go for any necessities. The City of Tallahassee primarily benefits from the proposed initiatives. Leon County and surrounding areas also benefit from the City of Tallahassee’s investment in proactive preparation for storms.

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Generators for Sewage Pump Stations & Water Supply Wells - $3.5 million for Generators

Submitted by: Utilities Project/Issue Description This project consists of the installation of emergency backup power equipment to prepare for and respond to loss of power during hurricanes, tropical storms and other emergency events. The project consists of: a) Acquisition and installation of dedicated generators at three drinking water wells and six large sewage pump stations; b) Acquisition of 5 portable generators and 5 portable pumps for use at smaller pump stations; and c) Modifications to existing electrical equipment and yard piping to standardize quick connection/disconnection of portable equipment. Approximately 70% of the City's total utility customers, or 60,000 people, will be served by these improvements.

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Treatment Filtration Enhancement for Water Well #23 - $4.5 million

Submitted by: Utilities Project/Issue Description Approximately 10,000 Florida residents in northwest Tallahassee have poor quality drinking water (color and odor). This area is normally served by two large capacity (2,500 gpm) groundwater supply wells - Well 23 (W23) and Well 26 (W26). The persistent water quality issues have been attributed to the presence of naturally occurring iron and manganese in the groundwater source and the accumulation of these elements in the water distribution system. The City has invested significant resources to reduce the water quality complaints by installing treatment at W26 (in 2007) to remove iron and manganese at that source, and by repeatedly cleaning the distribution piping. However, without also addressing the source of the problem at W23, the cleaning efforts provide only temporary relief. The interim solution has been to shut off W23 and only use for emergencies. However, this places the service area customers at higher risk for loss of water and insufficient fire protection in the event of a problem at W26. This project consists of the construction of a water treatment facility at the City's Water Supply Well #23. The purpose of the treatment facility will be to reduce the concentrations of elements (i.e. iron and manganese) known to cause discoloration in drinking water. The treatment facility will be similar to the one constructed at Well #26, which was designed to remove the same elements from the source water at that location

.Northwest Elevated Water Storage Tank

- $2.5 million Project/Issue Description This project consists of the construction of an additional 1-million gallon elevated water storage tank for the NW region of Tallahassee to increase system pressures and improve fire flow capability. The tank is needed to ensure adequate flow levels for significant fire events. Addressing fire flow needs is a high priority for the city to protect the lives, wealth and welfare of over 15,000 residents. The tank is also needed to provide additional capacity and required storage needs for this portion of the city’s distribution system to meet the water supply demands through 2035.

Replacement and Upgrade of Pump Station 12 - $7.5 million

Project/Issue Description Pump Station 12 is located on Orange Avenue and is one of the City’s largest stations, serving approximately 65,000 customers or a third of the City’s population. It was originally constructed more than 20 years ago and has reached the end of its useful life. In addition, the station is undersized, and the design is both outdated and less reliable than other stations in the system. For these reasons, the City plans to replace the station at an adjacent City owned parcel. The estimated cost of the station is $7.5 million. The City recently acquired the property where the station will be constructed and planning has been completed. Design and construction is anticipated to be completed over the next two years. The new station will significantly improve system reliability during normal weather and emergency events such as hurricanes and tropical storms.

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Undergrounding Utilities in Medical Corridor

- $16 million Submitted by: Deputy City Manager’s Office Project/Issue Description

Tallahassee’s electric grid consists of a high voltage transmission system and lower voltage distribution network that is connected by twenty-five (25) substations throughout Tallahassee. The coexistence of trees and overhead electric lines is challenging, and is managed through routine tree trimming and management. These methods include, but are not limited to: 1. Periodic patrolling of each circuit by field crews; 2. Scheduled line clearance work on an 18- month schedule; and, 3. The installation of Distribution Automation switching on select circuits. These switches are designed to automatically isolate the distribution circuit when an outage occurs, allowing some customers to be returned to service automatically while the repairs are made. Still, more than 50% of all distribution outages are related to trees.

The grid is restored in priority order. The highest priority customers include the hospitals and critical medical facilities such as nursing homes. Tallahassee Memorial Hospital and Capital Regional Medical Center essentially serve as bookends of a medical corridor along Miccosukee Road and Centerville Road. This corridor is also home to five of the seven nursing homes in Leon County. Much of the distribution network in this area is overhead and heavily surrounded by trees. Approximately five circuit miles of overhead distribution lines could be strategically undergrounded that would serve to storm harden these priority circuits.

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Tallahassee Future Leaders Academy Program Expansion - $500,000

Submitted by: Office of the Mayor

Project/Issue Description

Recognizing the extremely powerful effects of summer jobs programs on crime, youth violence, and unemployment seen from programs around the country, City leadership committed to building a robust 8-week employment and training program. In 2015, the Tallahassee Future Leaders Academy (TFLA) was launched; putting to work over 100 youths aged 15-20 primarily from high poverty and crime areas of the city known as the “Promise Zone”. These positive outcomes led to the continuation of the TFLA program into 2017 where the number of youth participants doubled to over 200 through partnerships developed with private businesses and employers in the Tallahassee and surrounding areas.

The results over the past three years’ effort are very promising. The survey results of the students who participated show an extremely positive view of their experience, and more than half of all participants indicated that TFLA was their first professional experience ever. Even more exciting, TFLA has averaged 50% of students coming to the program from high-crime and poverty areas of the city, and has seen a retention rate for youth completing the program above 90%. Over 85% of all participants improve their skills in the areas of business etiquette, customer service, communication, teamwork, as per pre-and-post tests administered by Careersource Capital Region. More than 75% of parents reported: TFLA helped prepare their child for future employment, TFLA helped their child learn how to manage the money they earned this summer, TFLA contributed to their youth having positive outlook on their future, and overall, they are satisfied with their child’s participation in TFLA.

Additional highlights include: TFLA youth earning over 200 nationally recognized professional certifications in the areas of Customer Service, Occupational Safety and Health,

Safe Serv Food Preparation, and Dollarwise Financial Education. Pioneering partnerships with Florida A&M University, Florida State University, and Tallahassee Community College have also assisted with enhancing youth exposure to college campuses through guided tours by collegiate ambassadors.

Studies show that participation in summer jobs programs like TFLA can have a lasting academic, vocational and life benefits including increased high school graduation rates, greater employability skills, decreased drug use, and reduced teenage pregnancy rates. This is an especially important consideration, with Tallahassee/Leon lagging behind the rest of Florida when it comes to juvenile crime and recidivism. With adequate resources, additional partnerships, and an even stronger emphasis on youth empowerment, TFLA could yield the same benefits and help our community address issues of crime, education, and workforce training. Additional funding would support an expanded capacity to host more youths within the City Government, and also allow for increased partnerships with the private sector for job and training placements.

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SECTION VI: FEDERAL AGENDA Federal legislative priorities are developed annually and presented to the Mayor and City Commission for adoption in advance of the Congressional request deadline, which usually is in early March for the next fiscal year. This list will provide the City’s federal lobbyists with the necessary direction to carry out appropriations and policy requests that are priorities for the City of Tallahassee. The Commission and City department directors will have the opportunity to meet with our federal lobbyists, Rick Spees and Jane Sargent, in late January to discuss the City’s critical needs. Last year, the issues that were discussed included several items of concern and opportunity, including transportation, early childhood education, public safety, economic development, energy, environmental, and tax issues. In its first year, the Trump Administration has made significant policy and regulatory changes from the previous Obama Administration. Through executive actions and legislative and budgetary proposals, President Trump has pushed his controversial agenda throughout his first year in office and will continue to do so for the remainder of his Administration. The President’s first budget proposal included significant cuts to programs of critical importance to local governments, including grants to support community development, local law enforcement and public transportation. While Congress has been persuaded to reject many of those cuts, the President’s efforts to cut the federal budget and programs of importance to the City will continue. The President believes state and local governments, rather than the federal government, should be responsible for funding a wide range of activities, including public transit, local law enforcement and economic development. At the same time, the Republican-controlled Congress, particularly the House, is also trying to find ways to cut federal non-defense spending, including programs that impact local governments. The City must continue to object to these cuts and make the case for their critical need. As the Trump Administration continues to implement his agenda, the City must stay informed and engaged in Washington so it can respond to any threats or opportunities. In addition to the ongoing fight to ensure that federal programs that benefit local governments, such as CDBG, HOME, and Byrne Justice Assistance Grants, continue to be funded, there are a number of legislative items that Congress will be addressing over the next year, and that we will stay engaged on. These include:

1. Tax Reform – The Trump Administration and the Republican Congressional leadership are

in agreement to move a comprehensive tax reform bill through Congress this year. Those efforts are ongoing. The bill will likely reduce individual tax rates as well as the corporate tax rate. To pay for the lost revenue, the bill will likely eliminate or limit deductions. Republican tax reform proposals have included the elimination or capping of tax-exempt municipal bonds and the deductibility of state and local taxes. The City has actively engaged on these issues and it is important that they continue their efforts as Congress works on tax reform.

2. The Affordable Care Act – President Trump has strongly pushed for repealing the Affordable Care Act (ACA). The House passed a repeal and replace bill earlier this year. While Senate Republicans agree that the ACA should be repealed or replaced, they have struggled to draft legislation that can get enough votes to pass the more closely divided Senate. While various Senate Republican attempts to pass legislation to replace the law have fallen short of the necessary votes, Republicans, who have campaigned for the past seven years on repealing the ACA, will continue those efforts, particularly as we head into an election year. The Republicans’ proposed changes to the ACA could have far reaching

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impacts, such as converting the Medicaid program to block grants to states, removing the protections for individuals with pre-existing conditions, repealing essential health benefits, allowing higher premiums for older adults, and eliminating the ACA’s Medicaid expansion. More than 20 million Americans would lose health insurance under the Republicans’ ACA repeal proposals. Many of the proposed changes would shift costs to states and local governments in direct and indirect ways. We will continue to stay informed and engaged as those efforts to replace the ACA continue.

3. Infrastructure Legislation – President Trump has proposed a $1 trillion program to improve the nation's infrastructure. While few details have been released, his proposal would broadly define infrastructure to include not only roads, bridges, airports, transit properties and ports, but also municipal utility and water systems. The Administration is also expected to call for innovative financing, streamlining of the environmental review and permitting process, and public-private partnerships. The Administration has indicated that they plan to release a more detailed proposal this fall, which Congress would work on over the next year. Tallahassee should be preparing a list of its priorities and transportation needs. While the bill will not include a list of specific projects to be funded, the City’s Congressional delegation can use this information to advocate for broad funding opportunities that could benefit the City.

4. Gulf Coast Rail Service – In 2015, Congress passed the surface transportation

reauthorization law, the Fixing America's Surface Transportation Act (or FAST Act). We worked with the City to include a provision in the FAST Act directing the Federal Railroad Administration (FRA) to create a working group to evaluate the restoration of intercity rail passenger service along the Gulf Coast. The working group was established and former Mayor John Marks was appointed as a member. In July 2017, the FRA finally issued the Gulf Coast Working Group report to Congress. They recommended two preferred options for restoring service including a daily, long-distance train between New Orleans, LA and Orlando, FL. The report included an analysis of the issues involved in restoring the service, including the cost estimates and a recommendation for a $5 million appropriation for the next phase of design work. Congress is continuing to review the report, and we will work on next steps to move the project forward.

5. Federal Aviation Administration (FAA) Reauthorization – Congress is in the process of reauthorizing the nation’s aviation law. The House and Senate are working on significantly different proposals, but will eventually need to reach an agreement on a long-term reauthorization bill. There a number of issues critical to the Tallahassee International Airport, including increasing the Passenger Facility Charge (PFC) which helps to fund projects that enhance the safety, security and capacity of airports, and increasing funding for the Airport Improvement Program (AIP) which provides grants to fund airport infrastructure projects; and reforming the national air traffic control system. Congress will be working over the next several months to reach an agreement on the legislation.

6. National Flood Insurance Program (NFIP) Reauthorization – The NFIP program was set to expire on September 30, 2017, but the Congress passed a short-term extension of the program until December 15, 2017. Congress is working on legislation to reauthorize and reform the NFIP to make the program, which faces massive deficits, more solvent and address some unintended consequences caused by the last reauthorization. Local governments have been advocating for reforms that ensure more affordable rates for policy holders, more accurate flood mapping, and increased funding for flood-mitigation assistance grants for state and local governments. Given the recent hurricanes and related flood damage, reform and reauthorization of the NFIP is a high priority.

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7. Presidential Executive Actions – Since taking office in January 2017, President Trump has

issued a number of Executive Orders to undo Obama-era regulations and policies. While a number of those, such as his efforts to roll back the Waters of the U.S. (WOTUS) rule and streamline the infrastructure permitting process, will benefit the City, there are others that would not. For instance, the President’s Executive Order on “sanctuary jurisdictions” could impact the City’s ability to receive federal law enforcement grants depending on how the Administration defines that term and what it deems to be the necessary level of cooperation by local law enforcement with federal immigration officials. We will be work to understand those Executive Orders and others, determine their impact, and develop a plan of response when necessary.

8. Federal Grants – The City continues to actively pursue federal grant opportunities for a wide variety of projects, including transportation, law enforcement and community development. We help to identify potential grant opportunities, evaluate projects and secure Congressional support for the City’s applications. We have also helped to arrange meetings with federal grant program offices when necessary. The Trump Administration has made some changes to discretionary grant programs, such as the TIGER and INFRA grant programs, which we have identified for the City. We will continue to work with City Leadership as they pursue these funding opportunities.

9. Higher Education Reauthorization Act - The last version of the Higher Education Act expired two years ago. The programs contained in it have been continued through the Appropriations process. However, next year Congress is expected to update and re-write the law. With three major education institutions in Tallahassee, the bill will have an impact on those institutions, the students and potentially the City.

10. Supplemental Items:

Support the extension of Income Tax Credit for solar energy facilities beyond 2019.

Support the continued status of tax exempt municipal bonds.

Seek additional grant funds for the replacement of end-of-life diesel buses with modern electric buses.

Staff will continue to work with its lobbying team to maximize funding opportunities and protect our policy interests to the greatest extent possible. City Leadership will also receive a monthly report on major developments and updates on our agenda items.