The Board of County Commissioners of Brevard County, Florida, met in special workshop session on October 8, 1996, at 1:30 p.m. in the Government Center Florida Room, Building C, 2725 Judge Fran Jamieson Way, Melbourne, Florida. Present were: Chairman Mark Cook, Commissioners Truman Scarborough, Randy O?Brien, Nancy Higgs, and Scott Ellis, County Manager Tom Jenkins, and County Attorney Scott Knox.

DISCUSSION, RE: SOLID WASTE DISPOSAL ALTERNATIVES

Solid Waste Management Director Richard Rabon advised the workshop is a continuation of the workshop held on September 17, 1996 on disposal alternatives for South County when the Board discussed the three alternatives--(1) to develop U.S. 192 site, (2) remain at Central Disposal Facility and expand it, and (3) Chambers? proposal to haul out-of-County. He stated staff researched the questions as directed by the Board, and provided a report on the value of going to Chambers landfill on an interim basis, cash situation of the County and whether or not it could entertain that option with current cash flows, and whether it had the money to do a number of things simultaneously, such as expand the Central Disposal Facility (CDF) and develop the U.S. 192 site. He stated Omar Smith, David Miller, and David Dee are here to assist the Board. He noted the Board could take public comment if it wants to.

Chairman Cook stated it is on the Agenda, so the Board will take public comment then discuss the issues and options.

Winston "Bud" Gardner, representing Waste Management, advised Waste Management submitted a proposal which was considered non-responsive; however, there was significant information in that proposal. He stated they said they can develop the U.S. 192 site, if the Board would take the permitting out, for $18.5 million versus $35 million; and they said they could maximize the CDF for 54 years, which is 30 years more than the number they heard at the last meeting. He stated the information should be considered by the Board as to where the numbers came from, how they were generated, and what assumptions were used to develop the numbers versus the assumption that was used to develop the $35 million and 24 years in the handout. He recommended the Board keep the Chamber?s proposal open, revise and simplify the original request for proposals (RFP), and re-advertise it to maximize and privatize the CDF, if the Board determines it is in the best interest of the people of Brevard County, and allow the consultant to explore the permitting of the U.S. 192 site. Mr. Gardner advised by their numbers, the County would gain 30 years and save about $16 million in development costs; and Waste Management is willing to commit its capital investment dollars. He noted he has not heard much discussion about the assumptions that were made.

Priscilla Griffith, Natural Resources Chair of the League of Women Voters of the Space Coast, advised the League does not propose to express a preference in the matter of solid waste alternatives for South Brevard service area, but it agrees that a landfill is the best choice at this time, and urges the Board to increase the amount of recycling being done in the County to maximize the use of a landfill site that is chosen. She stated the County could add to the list of types of items to be recycled, increase the amount of commercial recycling by use of incentives or mandatory rules, and make a full-faith effort to increase County Government?s use of recycled materials. Ms. Griffith advised the League would like to know if serious environmental problems, which existed with the U.S. 192 site, have been solved or determined to be non-existent, such as destruction of feeding and breeding habitat for threatened and endangered species, hundreds of acres of wetlands, and possible degradation of the aquifer, St. Johns River, and Lake Washington.

Warren Smith, Director of Business Development for Waste Management, Inc., advised by maximizing the CDF the County can achieve 50 years of disposal, additional cost savings, and operational efficiency by contracting for private operation of the CDF and keeping ownership of the site. He stated an RFP to test that contention would cost little in time and money for a savings of that magnitude. He stated out-of-county is immediate, but in the long-term it is more expensive than continuing the operation of the CDF. Mr. Smith advised the Board has no emergency and is in good position with its disposal system; it has time to consider options; and it can find out how valuable its CDF is by doing an RFP. He noted whatever the Board?s decision, Waste Management can help.

E. M. Cunningham advised he owned and operated a solid waste hauling business in Broward County for six years; landfills are obsolete, out-of-date, undesirable, unnecessary, and a danger to the environment; and working and cooperating with industry leaders, such as BFI and Waste Management, does work. He suggested the Board not go into new areas and take action which will lead to ecological disaster. He described the problems and environmental disasters that occurred in Broward County because of landfills, even with advanced technology; and requested the Board not let it happen in Brevard County.

Carolyn McCreedy, Chambers Waste Systems of Florida Site Manager of Berman Road Landfill, advised in March, 1996, the Board received responses for environmentally-sound disposal of Class I waste generated in South Brevard; Chambers offered the Berman Road Landfill for out-of-county waste disposal; and it provided a low-cost solid waste transfer, haul, and disposal in a presently operated state-of-the-art regional facility in Okeechobee County. She stated the proposal is in the best interest of Brevard County and its citizens; the real numbers are fixed for five years with limited increases thereafter for a 20-year term; it shows an economic benefit close to $400,000 over five years and $5.7 million over 20 years; and the solid waste reserve money will not be depleted. She stated the proposal by Chambers offers very low risk; it is based on actual contract numbers and certainty of an operating system; and permitting costs are not applicable as they are in the cost quoted. Ms. McCreedy advised the Berman Road System exceeds current State regulations; inflation and future capital construction costs are not applicable and are covered by the cost offered; they will use the transfer station currently being used; and the Berman Road site has the permits to operate. She continued to describe the benefits of going with Chambers Waste Systems of Florida; stated CDF expansion offers future options to the County if the contract with Chambers does not meet the County?s expectations; and Chambers can accept excess storm-related waste.

Walter Chearney stated his company, Renaissance, does consulting work for businesses; he has been involved with Chambers; and they have a state-of-the-art landfill. He stated the risks and rewards have not been addressed; it is a one-time solution for a known problem; but the Board should not take action until it evaluates everything, as there are other great needs for funding.

Mr. Rabon advised Omar Smith will review the value of Chambers alternative.

Omar Smith, Post, Buckley, Schuh & Jernigan, Inc., advised the calculations are basically for five and ten years; 870,000 tons of waste will be hauled out of the County by Chambers; and that would be the capacity the County will save at the CDF. He explained in detail how the calculations were obtained, what would happen if the County did not pursue Deseret and did not go with Chambers, what it would cost to haul now versus the cost to haul in the future, and additional costs if all County facilities are filled up to capacity because all the Class I waste would have to be hauled out-of-county. Mr. Smith stated if the County spends the money now it will be a savings of about $400,000; with a ten-year option, that number drastically improves because it would be saving additional capacity by hauling more material and extending the life of the CDF; and the more waste is pulled out now, the more the County will save in the future.

Commissioner Ellis stated if they pulled too much waste out, the County would still be paying for operations at the CDF; and inquired why the initial five-year term represents only six months increase in capacity if South County has 60% of the waste stream. Mr. Smith stated the Class I waste that would be hauled out from South County is about 20% of the total County waste stream.

Discussion ensued on Sarno Landfill, the construction and demolition site, the daily waste stream, Class I and Class III waste, cost of disposal, tonnage, volume increases with population increase, yard waste, and recycling.

Commissioner Scarborough stated the numbers do not assign risks; and the Board may want to move in a prudent manner and ask staff to look at a measured approach, different operations, and where it can go forward and minimize risks while maximizing opportunities for long-range solutions at the best cost.

Commissioner Higgs advised of a letter she received following her conversations with the General Manager of Deseret Ranch indicating their willingness to work with the County on alternative sites on their property and negotiate with the County for exchange of the present site. She stated a major concern has been the permitting risk, and the letter gives the County a potential of negotiating a better environmental site that may not face some of the permitting challenges as the current site. She recommended the Board contemplate discussions with Deseret as its first priority to see if it is a viable option for the future. Commissioner Ellis recommended including Osceola County in that discussion because any alternative site would be to the west in Osceola County. Commissioner Scarborough stated when he met with Deseret representatives, a site was pointed out on a map, so it may be more specific than the Board imagines. He stated there is an economic and environmental interest for Deseret; it has the capacity to bring heifers into a breeding cycle in two years as opposed to three years; and the County?s plan is critical to that process. He noted they are willing to talk and discuss options, and it does not have to be limited to waste energy. Commissioner Higgs stated it was her understanding before that a landfill any where out there was not acceptable, but what came out of the discussions was a landfill as an option. Chairman Cook stated he met with Deseret representatives also and they specified an area that was in Osceola County; it would be an additional four to five miles of hauling; but the problem is if Osceola County would be cooperative with Brevard County putting a landfill in their County. Commissioner O?Brien advised Deseret has political clout with Osceola County; and the Board could make the land swap contingent upon Deseret convincing Osceola County it is the best deal for Deseret and possibly for Osceola County as well. Commissioner Ellis stated the Board needs to have everybody involved up front with where it is going with the solid waste issue. Commissioner O?Brien suggested a time limit to get what land Deseret is offering for the swap and require Deseret to join with the County to convince Osceola County of the project. He noted it would avoid permitting battles. Commissioner Scarborough stated Deseret has to make a major financial decision or it will impact them economically, so they are motivated to come to an understanding of what the Board will do.

Discussion continued on land swap with Deseret, delaying the project a month to get feedback from staff, setting up something with Chambers to buy time in the end at CDF, splitting the waste stream out of Melbourne by using surplus revenues, expansion of CDF, purchase of trailers, moving C&D to extend the life of the CDF, an RFP for expansion of the CDF, air space, going to Seminole County, risks, values, permitting, capacity at Sarno, and costs.

The meeting recessed at 3:12 p.m. and reconvened at 3:20 p.m.

Commissioner O?Brien recommended bringing Deseret to the table and negotiating a land swap, but not make the deal until they help the County get permits and work with Osceola County to facilitate the project. He stated the permitting cost would drop from $5.4 million to about $2 million.

Motion by Commissioner Higgs, seconded by Commissioner Scarborough, to direct staff to work with Deseret Ranches on identifying a site suitable for exchange with the present County site, and request Deseret begin discussions with Osceola County on the use of the site and zoning, if a suitable site is identified.

Commissioner Ellis recommended staff meet with Osceola County staff because it may require a change to their Comprehensive Plan; and inquired where will the project go if they do not change it, and if Osceola County says no. Chairman Cook stated he will not support fighting with Osceola County; and if it falls through, the Board can return to the original site and other options. Commissioner Scarborough stated the economic incentive is key because they need the capacity to move the calving operation. Commissioner Higgs inquired about the status of the Lease Agreement with Deseret Ranches; with Mr. Rabon responding it expires December, 1996, and staff will come back to the Board for an extension. Chairman Cook suggested only extending it for one year so it would not eliminate the incentive of a land swap and $8 million buy-back.

Commissioner Higgs recommended staff look at the Lease Agreement and resale of the property. Commissioner Ellis recommended Mr. Rabon contact the Solid Waste Director of Osceola County. Commissioner Scarborough recommended Mr. Rabon and Chairman Cook talk to Deseret on a site, and if there is a suitable site, take it to Osceola County in January, 1997.

Chairman Cook called for a vote on the motion. Motion carried and ordered; Commissioner Ellis voted nay.

Discussion ensued on extending the Lease Agreement, land swap, permitting, zoning from Osceola County, working something out with Deseret, and Deseret using political clout with Osceola County.

APPROVAL, RE: REFINANCING OF 1987 SOLID WASTE REVENUE BONDS

Financial Advisor Tom Holley advised of the tests performed on refinancing of the Solid Waste Revenue Bonds, Series 1987; and stated it will result in a total savings of $1.1 million over the life of the bond. He noted there will be no new money, just refinancing to take advantage of the savings.

Motion by Commissioner Scarborough, seconded by Commissioner O?Brien, to approve the sale of up to $13,000,000 of subject bonds to refund all of the Solid Waste Revenue Bonds, Series 1987, through competitive sale; authorize the County Manager and Finance Director to award the sale of the bonds; and authorize the Chairman to execute all pertinent bond documents and agreements. Motion carried and ordered unanimously.

Mr. Holley advised he will return with the bond documents at a later date.

Upon motion and vote, the meeting adjourned at 3:45 p.m.

MARK COOK, CHAIRMAN
BOARD OF COUNTY COMMISSIONERS
BREVARD COUNTY, FLORIDA

ATTEST:
SANDY CRAWFORD, CLERK
(S E A L)