Submittal of the Board of Trustees Minutes from the March 7, 2013 Cabinet Meeting.

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1 AGENDA BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND APRIL 2, 2013 Attachments to the items below can be viewed at the following link: Substitute Page Item 1 Minutes Submittal of the Board of Trustees Minutes from the March 7, 2013 Cabinet Meeting. VOTING REQUIREMENT FOR APPROVAL: Two members, one of whom is the Governor, when four members are voting; or any two members, when three members are voting. (See Attachment 1 at RECOMMEND APPROVAL Substitute Item 2 LATAM Telecommunications, LLC Recommended Consolidated Intent/AMX-1 Cable System/Private Easement REQUEST: Consideration of (1) approval of AT&T Corporation s transfer of rights, under its sovereignty submerged lands easement, to LATAM; and (2) an application for a ten-foot-wide, 25-year, non-exclusive, sovereignty submerged lands private easement containing 300,559 square feet (6.90 acres), more or less, for a proposed fiber-optic submarine cable across approximately 5.69 statute miles of sovereignty submerged lands. VOTING REQUIREMENT FOR APPROVAL: Three votes APPLICANT: LATAM Telecommunications, LLC (LATAM) Application No Easement No BOT No LOCATION: Project originates in the city of Hollywood Atlantic Ocean, Broward County CONSIDERATION: $212,786.04, representing (1) $18, as the non-refundable processing fee, pursuant to rule (1)(i), F.A.C.; and (2) $193, as a one-time easement value and enhanced value fee at the rate of $ per linear foot (based on a minimum width of ten feet) that crosses sovereignty submerged lands, pursuant to rule (2)(c), F.A.C. Sales tax and county discretionary sales surtax will be assessed pursuant to sections and , F.S., if applicable. STAFF REMARKS: In accordance with rules adopted pursuant to sections (2) and (2), F.S., this Recommended Consolidated Notice contains a recommendation for issuance of both the permit required under part IV of chapter 373, F.S., and the authorization to use sovereignty submerged lands under chapter 253, F.S. The Board of Trustees is requested to act on those aspects of the activity which require authorization to use sovereignty submerged lands.

2 Substitute Page Two Substitute Item 2, cont. The project is required to demonstrate that it is not contrary to the public interest, pursuant to Article X, Section 11 of the Florida Constitution, Chapter 253, F.S., and rule (1)(a), F.A.C. LATAM has provided reasonable assurance that the proposal will maintain essentially natural conditions; will not significantly impact fish and wildlife and other natural resources, including public recreation and navigation; is consistent with the goals and objectives of the Conceptual State Lands Management Plan ; is consistent with the local government s comprehensive plan; and will not interfere with the riparian rights of adjacent property owners. Therefore, the Department of Environmental Protection (DEP) is of the opinion that the proposal is not contrary to the public interest and meets all applicable requirements for a proprietary authorization to use sovereignty submerged lands, pursuant to Article X, Section 11 of the Florida Constitution, Chapter 253, F.S., associated rule 18-21, F.A.C., and the direction of the Board of Trustees. Project Synopsis LATAM is requesting a 25-year private easement over a ten-foot-wide area of sovereignty submerged lands on which to install and operate approximately 30,053 linear feet (5.69 miles) of 1.5-inch fiber-optic submarine cable within state coastal waters in the Atlantic Ocean. The cable is for a non-common carrier fiber-optic submarine cable system that links the continental United States, the Dominican Republic, Puerto Rico, Brazil, Colombia, Guatemala, and Mexico, which is collectively referred to as the America Movil Submarine Cable System (AMX-1 Cable System). Background LATAM is a corporation organized under the laws of the State of Delaware, and is a whollyowned subsidiary of Sercotel, S.A. de C.V., a Mexican holding company. LATAM is not a public entity, nor regulated by the Public Service Commission, therefore, the project requires a private easement. Pursuant to rule (2)(c), F.A.C., the project requires Board of Trustees approval since the private easement exceeds five-acres and is a telecommunication line that is not being installed in a special consideration area, as designated in rule (2)(l), F.A.C. The initial segment of the cable that extends from the uplands will be installed within an existing permitted conduit (DEP Permit No ) located within AT&T Corporation s (AT&T) Sovereignty Submerged Lands Easement (No ). The easement was issued by DEP, under delegation of authority, in LATAM has entered into a license agreement with AT&T to utilize the vacant conduit. This license agreement transfers rights from AT&T, under its easement, to LATAM for the installation of the fiber optic cable through AT&T s conduit. Under the provisions of AT&T s easement from the Board of Trustees, this transfer of rights requires the consent of the Board of Trustees. Project Description The AMX-1 Cable System project consists of installing and operating approximately 30,053- linear feet (5.69 miles) of 1.5-inch fiber-optic submarine cable within the Atlantic Ocean and originating in the city of Hollywood, Broward County.

3 Substitute Page Three Substitute Item 2, cont. Purpose and Need The AMX-1 Cable System will be a high capacity digital fiber-optic system initially deployed with 40 gigabits per second wavelengths and a design to support up to a 100 gigabits per second. LATAM states that the AMX-1 Cable System will provide increased capacity from the United States to landing points in the Dominican Republic, Puerto Rico, Brazil, Colombia, Guatemala, and Mexico to help meet the dramatic growth in internet, data, and voice traffic in those countries. Additionally, the proposed AMX-1 Cable System is expected to absorb the demand for high speed connectivity and capacity with regards to upcoming events in South America (e.g. the 2014 FIFA World Cup and the 2016 Summer Olympics). Term of Easement DEP is recommending an easement term of 25 years. The 25-year term is consistent with the design service life of the proposed AMX-1 Cable System, which is approximately 25 years. LATAM will be solely responsible for the long-term maintenance of the proposed system. Proposed Cable Route Utilizing an existing permitted conduit that was installed utilizing horizontal directional drill (HDD) method, the proposed cable shall commence in a southeasterly direction from the erosion control line of the Atlantic Ocean to a sandy region of the seafloor near the first reef tract that is approximately 26-feet deep. Once the cable exits the aforementioned existing conduit, it will continue in a more southerly direction across the hardbottom ridge complex and reefs. Environmental Impacts and Mitigation Pursuant to rule (2)(b), F.A.C., activities which would result in significant adverse impacts to sovereignty lands and associated resources shall not be approved unless there is no reasonable alternative and adequate mitigation is proposed. LATAM considered the following minimization efforts in the final design of the project: (1) the chosen cable route utilizes an existing conduit that extends from an upland location to a sandy region within the first reef tract; and (2) compared to three other feasible routes, the chosen cable route primarily traverses sand bottom, whereas, only 16.7 percent of the cable route traverses coral reef habitat. Surface lay method from a construction barge with diver assistance shall be the primary method of cable installation. In water depths too deep for divers, LATAM will use state-of-the-art navigational systems and software (MakaiLay) that allows precise surface positioning and prediction of the cables installed position on the seabed. In addition to installing the cable during favorable weather and marine conditions, LATAM describes the surface lay method as the most efficient technology currently available for the proposed work and indicates that this method shall minimize the duration of construction activities and associated environmental disturbances. Once the cable is aligned on the seafloor, future potential impacts to coral reefs shall be reduced by the use of anchoring devices at predetermined locations. The total impact, within State waters, to hardbottom areas and the associated benthic community from the cable installation is acre.

4 Substitute Page Four Substitute Item 2, cont. In order to offset the impacts to acre of coral reef habitat, LATAM shall remove and dispose of acre of tires (approximately 400 tires) from a nearby artificial reef known as Osborne Reef, located approximately 7.5 miles north of the proposed AMX-1 Cable System project. Storm events and ocean currents have moved the tires from their original deployment site in sandy bottoms up onto the second and third reef systems resulting in significant impacts to natural marine resources. It is the intent of the mitigation plan to enhance the existing natural reef systems by removing the tires from on top of and adjacent to the reefs thus allowing natural restoration of the newly exposed reef face by recruitment of new coral species. Additionally, LATAM shall relocate and monitor for five years all impacted or injured hard corals, octocorals, and sponges that exceed five centimeters in diameter. Finally, for unforeseen significant impacts to submerged resources, LATAM shall remove additional tires as part of its approved compensatory mitigation plan. Noticing The private easement request was noticed to property owners, within a 500-foot radius of the project, and all persons on the statewide mailing list for Broward County, pursuant to section , F.S. Thirty-five property owners and interested parties were specifically noticed and no objections have been received. (See Attachment 2, Pages 1-30) RECOMMEND APPROVAL Substitute Item 3 City of Gulfport Recommended Consolidated Intent/Mooring Field/ Lease REQUEST: Consideration of (1) a determination that, pursuant to rule (1)(b), F.A.C., it is in the public interest to lease 763,312 square feet (17.52 acres), more or less, of sovereignty submerged lands; and (2) an application for a ten-year sovereignty submerged lands lease containing approximately 763,312 square feet for a proposed 25-buoy public mooring field. VOTING REQUIREMENT FOR APPROVAL: Three votes APPLICANT: City of Gulfport (City) Lease No Application No LOCATION: The project is located in Boca Ciega Bay, southwest of the municipal marina and directly south of Williams Fishing Pier and the Gulfport Casino Ballroom Gulfport, Pinellas County

5 Substitute Page Five Substitute Item 3, cont. CONSIDERATION: The project qualifies for a waiver of lease fees pursuant to section (1)(b)7, F.A.C., which states that fees may be waived for government entities that are either not-for-profit or non-profit uses when the revenues are used for operation and maintenance of the structure and the activity is consistent with the public purposes of the City organization and is not an adjunct to a commercial endeavor. STAFF REMARKS: In accordance with rules adopted pursuant to sections (2) and (2), F.S., this "Recommended Consolidated Notice" contains a recommendation for issuance of both the permit required under part IV of chapter 373, F.S., and the authorization to use sovereignty submerged lands under chapter(s) 253 (and 258), F.S. The Board of Trustees is requested to act on those aspects of the activity which require authorization to use sovereignty submerged lands. Background In 2005, the City began addressing the problem of unauthorized mooring of vessels and the associated adverse anchoring and discharge methods that have been occurring in waters immediately adjacent to the City-owned waterfront. Problems associated with the unregulated mooring fields include engine blocks and other inappropriate anchoring devices used to secure vessels; abandoned and derelict vessels or vessels breaking free of inadequate anchoring devices and causing damage to other vessels or nearby property; and unlawful discharges of waste. To date, there have been a total of eleven cases where the City expended funds to remove derelict vessels, the majority of which being sailboats, for a total cost of approximately $6,170. With funding from Pinellas County, the City assisted in the removal of an additional ten to twelve derelict vessels. Project Detail The City is proposing to construct, operate and maintain a 25-buoy public mooring field within Boca Ciega Bay. The mooring field will preempt approximately 763,312 square feet (17.52 acres) of sovereignty submerged lands and will accommodate sailboats up to 60 feet in length. Water depths within the mooring field range from 8.5 to 9.5 feet at mean low water. All vessels utilizing the facility will be required to have a minimum of one foot of clearance between the bottom of the vessel and the substrate within the project area and the navigational channel. The mooring field will be open to the public on a first-come, first-served basis as defined in rule (27), F.A.C. The mooring field will be located southwest of the City s existing municipal marina and south of Williams Fishing Pier and the Gulfport Casino Ballroom, a non-gambling facility. This site was chosen based on three criteria which included avoidance of submerged aquatic vegetation, a location acceptable to the residents along the City s waterfront, and its proximity for visitors to access retail and restaurant establishments along the City s Waterfront District. Waterward of the Gulfport Casino Ballroom there is a dinghy dock that can accommodate the mooring of up to 5 vessels and provides mooring field registrants with upland access to the City s Waterfront District. The City s municipal marina is located on privately-owned, submerged lands and will host upland support facilities for the mooring field including restrooms, showers, laundry

6 Substitute Page Six Substitute Item 3, cont. services, garbage disposal, fueling, and public sewage pumpout units. The municipal marina contains a floating public dock that can accommodate the mooring of up to 8 vessels and several dinghies. This floating dock will provide mooring field registrants with access to the marina s upland facilities. A sewage pumpout vessel will also be made available by the City and kept at the municipal marina. As a condition of the permit, vessels utilizing the mooring field will be required to have their tanks pumped out at the sewage pumpout station or by the sewage pumpout vessel a minimum of every three days. In 2007, the U.S. Fish and Wildlife Service (USFWS) provided the U.S. Army Corps of Engineers (Corps) with a biological opinion (opinion) based on projects being proposed in Boca Ciega Bay which would increase the number of boat slips in the area and their effects on the Florida manatee. This opinion described the potential for adverse effects to manatee habitat and the increased potential for significant manatee injury/mortality within Boca Ciega Bay as a result from collisions with motorized vessels. According to the opinion, the use of motorized vessels within the mooring field may reasonably result in the incidental take of a manatee, which is prohibited by the Marine Mammal Protection Act. Since this opinion was published in 2007, no additional protections have been provided by Pinellas County; therefore any proposed use of the mooring field by motorized vessels would likely result in a similar finding, and the Corps would be forced to deny the permit without prejudice. For this reason, the City revised the project to limit the use to sailboats only. The Corps is currently evaluating the revised project in consultation with USFWS. Submerged Resources On May 13, 2009, a site inspection by DEP determined that there were no submerged resources within the footprint of the proposed mooring field. On March 7, 2013, an additional site inspection by DEP verified that there were no submerged resources within the footprint of the proposed mooring field based on low light penetration within the turbid water, previous dredging activities, and high boat traffic. Public Interest The proposed project will be located within the Boca Ciega Bay Aquatic Preserve (Aquatic Preserve), therefore it must be in the public interest, pursuant to rule (1)(b), F.A.C. DEP offers the following to assist the Board of Trustees in making an affirmative determination that the project is in the public interest: (1) the project will offer resource protection by managing moored vessels within areas free of seagrass beds and shallow areas; (2) the project will offer an improvement to water quality because mooring field licensees will be provided showers and restrooms, laundry facilities, sewage pumpout service, waste receptacles, and hazardous waste collection by the municipal marina; (3) the project will require that all vessels at the mooring field utilize the hurricane contingency plans, safety and anti-pollution measures, proper sewage disposal regimen, and established ingress and egress fairways outlined in the mooring field management plan;

7 Substitute Page Seven Substitute Item 3, cont. (4) the project will include a harbormaster patrol vessel which will provide sewage pumpout service every three days, deploy containment equipment in the event of an oil spill, and patrol the mooring field for compliance with the management plan; (5) the project will assist in the prevention of derelict and abandoned vessels and provide additional boater education; and (6) furthermore, since 2009 the City has removed 11 derelict vessels from the Aquatic Preserve at a cost of approximately $6,170, as well as assisted in the removal of 10 to 12 additional vessels. Mooring Field Management Plan Based on the presence of unauthorized mooring and derelict vessels, the City sought to develop marina management practices to enforce proper anchoring practices within the mooring field. The City has submitted a proposed Mooring Field Management Plan that provides background information, design, operational rules, procedures and objectives for the City s oversight and management of the entire mooring field. Noticing/Interested Parties The project was noticed as required pursuant to section , F.S., and rule (3), F.A.C. The proposed mooring field is not located within a 500-foot radius of any property owners. The City provided notice to four interested parties within Pinellas County, and no objections were received. (See Attachment 3, Pages 1-42) RECOMMEND APPROVAL SUBJECT TO THE SPECIAL APPROVAL CONDITION AND THE SPECIAL LEASE CONDITIONS