MINUTES OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS

BREVARD COUNTY, FLORIDA

 

 

July 24, 2008

 

 

The Board of County Commissioners of Brevard County, Florida, met in special session on July 24, 2008, at 9:00 a.m. in the Brevard County Government Center Florida Room, Building C, 2725 Judge Fran Jamieson Way, Viera, Florida.  Present were:  Chairman Truman Scarborough, Commissioners Chuck Nelson, Helen Voltz, Mary Bolin, and Jackie Colon, County Manager Peggy Busacca, and County Attorney Scott Knox.

 

 

 

Motion by Commissioner Nelson, seconded by Commissioner Colon, to approve travel for Commissioner Chuck Nelson to Toledo, Ohio to visit one of the potential manufacturers for bringing business to Brevard County.  Motion carried and ordered unanimously.

 

 

Commissioner Bolin stated she supports approving Commissioner Nelson’s travel, but she does not feel that staff travel outside of Brevard County overnight is a good value of taxpayer dollars.

 

Commissioner Nelson stated it is an unusual situation; there was a question this past week of how the County can assist in terms of permitting issues; that is an important issue to some businesses because time is money and can they get through permitting; and it may be appropriate for County staff to travel from time to time.

 

Commissioner Bolin stated she was referring to Commissioners’ staff.  Commissioner Voltz stated she agrees.

 

Motion by Commissioner Nelson, seconded by Commissioner Scarborough, to approve travel for Commissioner Nelson’s staff to Toledo, Ohio, to visit one of the potential manufacturers for bringing business to Brevard County.

 

 

Chairman Scarborough stated he is going to support the item; he would like to explore this further; but since it has already occurred, he thinks it would be a disservice to the process to retroactively create a policy that impacts people that thought they were doing things to help.

 

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

 

 

Commissioner Voltz stated she does not know why the item was not approved ahead of time by the Board; and it is something the Board needs to make sure it does, and have everything approved ahead of time.

 

 

 

 

Commissioner Nelson stated these requests and opportunities come up at the last minute; this was in June 2008 when the Board was not meeting; and there was no opportunity to get the item to the Board.

 

Commissioner Bolin inquired is the Commissioners’ staff under the same Policy as all County employees that they have to have their Department Head approve it; with County Manager Peggy Busacca responding affirmatively.  Commissioner Bolin stated so the Commissioner’s have to act as their own Department Head on whether or not they feel it is a value adjusted expenditure or not.  Commissioner Voltz stated when Tres’ Holton traveled with her he paid his own way.

 

Chairman Scarborough suggested if a Commissioner wants to take a member of their staff with them, the best thing in the future is to get prior Board approval; and advised there may be very important cases where Commissioners’ staff needs to be present in Tallahassee or what have you; but it is only Commissioners, if it is okay, that can travel without prior approval, and the Board will take the staff on a case-by-case basis in advance in the future.

 

Commissioner Bolin stated what prompted this was that she had talked to Ms. Busacca about having a guideline for new Commissioners; she is looking for the future when there are three new Commissioners; and there would be a guideline manual of how to be a Commissioner so they know what has to be done in advance.

 

Chairman Scarborough stated some Commissioners have people that have worked with the County before, and some Commissioners bring in new staff; his staff does a lot of thinking for him; they know what has to be done at certain times; and it is more than just training the Commissioner, it is the staff.

 

 

Commissioner Nelson stated there are some representatives present that will be talking about lifeguards; he wants to clarify something that was said in the Florida TODAY in its editorial; it said that he was arguing against additional lifeguards; and clarified what he was cautioning was that additional lifeguards do not insure 100% protection of the County’s beaches.  He noted he was not saying that the County did not need more lifeguards and it cannot do better; it was unfortunate that Florida TODAY decided to somehow interpret what he was saying to arguing against lifeguards; certainly that is not the case; having had ocean lifeguards under his responsibility at one point in his career, he probably knows too much about the process and know that regardless of how good they are, there are going to be times when deaths occur just because of a series of events; and certainly it is not a case that he is opposed to additional lifeguards.  He advised that was not his position and it is not his position; and Florida TODAY got it wrong.

 

 

Commissioner Voltz stated she met with some of the seniors in Melbourne who are going to be going to the new facility; they have a whole list of items that they are going to need for the new facility; and she has that in her office if anybody would like to donate anything.

 

 

Commissioner Bolin stated she had the pleasure this week of being at the Council of Chambers Convention for the State of Florida; the Chambers of Commerce were here; she was at their closing ceremony; and they had expressed to her the awe that they had when they went to Kennedy Space Center.  She noted they proved to her that there are so many people out there that do not understand and cannot wrap their arms around what Brevard County has here as far as a Space Program; and thanked the Chambers of Commerce for doing that, and all of the sponsors who came together.  She stated it was effective; and now there are all of the Chambers going back to the their counties throughout the State of Florida saying they want to be a partner in the Space Program; and it was a highly successful event.

 

 

Commissioner Colon stated yesterday was a very exciting day because there was the opening of the Veterans Center in District 5 at the corner of Sarno and Croton Roads; invited the Veterans from the community to come and see it; there was representation from Senator Mel Martinez and Senator Bill Posey; and it is important for the community to be able to have access to that kind of information.  She congratulated the Brevard County Veterans Association.

 

 

Commissioner Colon stated yesterday they were able to provide dates to the folks at Trinity Towers of the opening of the Senior Center; and it will be in April 2009.

 

 

Maryjane Wysocki stated she is speaking as a private citizen about expanding transportation for Space Coast Area Transit (SCAT); she is a member of several agencies that have been working with SCAT on transportation; she has worked with individuals with and without disabilities for many years who are job seekers; and there is a real problem for these people, especially with the price of gas increasing.  She advised SCAT is doing a great job; the County needs to increase the number of buses; employers are very uncomfortable hiring someone who is riding a bus; and the reason they are uncomfortable is they cannot always get to work on time.  She stated the buses do not run quickly enough; and requested the Board increase monies for SCAT. 

 

 

 

 

 

PUBLIC COMMENTS (CONTINUED)

Sara Ann Conkling, Co-Chair of the Brevard Transportation Advocacy Coalition, stated what they are looking for out of this budget cycle when it is so tight, they would like the County to double the route, the frequency of Route 1 of SCAT; it is currently every two hours; they would like it every one hour; and they would like to extend it to Route 46 in Mims.  She noted it is going to cost $160,000 over last year’s SCAT budget; Transit Services Director James Liesenfelt has already cut $190,000 out of his budget; incrementally, this is going to cost $350,000; but because he has cut $190,000, the County is only talking about $160,000 over last year’s budget.  She stated there are 248,000 people in the workforce who need a more affordable way to work; there were 15 people standing in the aisle on the Route 1 bus; this is the one they would like to double the frequency of; and there are 95,000 Brevardians with disabilities who depend on public transportation for all of their needs.  She advised there are 165,000 Brevardians who are living at or below 200% of the federal poverty level who need the County’s help because they cannot afford gas; the SCAT drivers are courteous and outstanding; they go over and above the call of duty to help people who need assistance on the bus; and thanked the Board for being so dedicated, hard-working, and kind in a year where the budget they know is tight.

 

Mike Cunningham stated he is going to address libraries; and provided a handout to the Board.  He advised he is Chairman of the South Mainland Library Advisory Board; and requested the Board, in its deliberations for the budget, to leave the library funding alone.  He stated there is a positive return on investment in Brevard County with the libraries of $4.47 for each taxpayer; every one of the children’s programs in the South Mainland Library gets a minimum of 22 young people; teenagers call in wanting to be volunteers to assist in the children’s programs; and the libraries are important and they want a return on investment.  He noted the citizens cannot do without their libraries; and Brevard County needs to keep its libraries where they are at the stage that they are.

 

 

Scott Ellis, Clerk of the Circuit and County Courts, stated since Article V, the Clerk’s Office has shrunk in terms of County funding, primarily Clerk to the Board and County Finance; the funding from the Board has been pretty much flat for the last five years; and his Office is anticipating the same for next year.

 

Chairman Scarborough stated there was discussion previously concerning the issues of insurance and some of the questions Mr. Ellis was raising of staying in the program; and inquired has Mr. Ellis resolved that.  Mr. Ellis responded his Office is going to bid; fundamentally, his Office cannot keep up with the insurance increases from the County; when he says his Office is four years flat, each of those years his Office had to pay more for the insurance; and since he has been in the Clerk’s Office, its insurance cost per employee has just about doubled.  He stated for the General Fund agencies, they do not see that because the Board hands them the money for the insurance and then they give it back; but for those that are more like an Enterprise Fund, they have to have that money coming through the door to be able to cover the insurance; if his Office takes the County’s insurance increases, which would be over  $400,000, it  would  probably  not  be  able to get back to an 80-hour bi-weekly pay period;

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

and it is out of options.  He noted what his Office is looking to do is getting the bids in, review them, and virtually have a referendum in the Office; there will be two issues on the table, the County funded and the external; if employees want to choose the County, then the Clerk’s Office will give them the cost difference to do that; and it is an issue that has to be gotten under control.

 

Commissioner Bolin stated under expenditures, the paperwork shows a 2.96% decrease; and inquired is it reflecting the fact that the Clerk’s Office is not going to be involved with the County’s insurance, or is it budgeted in until a later time when such Office makes its decision.  Mr. Ellis stated his Office is probably loosing two senior people who will be replaced by two people new or almost new.  Commissioner Bolin noted so this budget presented does not reflect the change in the insurance at this time; with Mr. Ellis responding that is correct.  Mr. Ellis stated on the insurance issue, the change over date is January 1^st; he will know more on what his Office is going to do by the time it moves through August.

 

Chairman Scarborough stated when the Clerk’s Office has the vote with its employees, is it a vote or does an employee have an option.  Mr. Ellis responded his Office cannot do an option; it will do a vote; and it will go with one plan or the other.  He noted for example, to stay with the County plan, if it would cost an extra $33.00 per check to stay with it, then that is going to be made clear up front what the Clerk’s Office is doing.  Chairman Scarborough stated the County not giving any wage increases is not going to ask for a greater participation from the employer.  Mr. Ellis advised his employees have not had raises two years out of four; the County did Cody pay increases, people received huge pay increases, and his employees have had nothing; the insurance is killing them; and his Office is at the point, either it has to cover the insurance increases this way or it has to do layoffs.  He noted it is the same point the County is reaching very quickly with the County budget; it is being pushed off again on the insurance issue; the County is reaching the point where maybe it is better to pay more for insurance and keep a job than end up laid off; his Office is not allowed to carry reserves; and the Board can carry reserves.  He advised at the end of every fiscal year, anything left over in the Courts goes to the State, anything left over on the Recording fees goes back to the County; his Office has no reserves to reach back to; and it hits that cusp almost immediately when it goes into a fiscal year.  He stated the County has the benefit of having reserves to use, but at some point, those reserves are exhausted; and it ends up reaching the same point his Office is at right now.

 

Commissioner Voltz stated the Clerk’s Office had raised some fees, but those fees are not reflective of anything regarding the County General Fund.  Mr. Ellis advised the Legislature raised the fees and it took that money to pay for the Courts, not the Clerk’s Office; the eviction more than tripled, 88 to 280 something; there is now a counterclaim on a divorce; all of that money goes directly to the State for funding of the Courts, that is not for the Clerk; and his Office picked up 50 cents on certified copies.  Commissioner Voltz noted so the Clerk’s Office does not get any extra money at all with that.  Mr. Ellis responded that is correct; that was deal they made in Tallahassee; they were cutting everybody in Tallahassee; and the deal they made with the Courts was if they raised these fees to pay for the Courts then they could stay in business.  He stated his concern is he does not think that is a totally inelastic demand; when fees are raised to a certain point, the number of cases begin to drop off, which is going to be a loss of Court revenue; since Article V, his Office is very segregated in how its budget works; and it has a Court issue that is more with the State, County Finance and Clerk to the Board deals with  the  Board, and  Official Records are the Recording fees.  He advised Recording fees have

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

dropped from a peak of $5 million a year for two years in a row, 05-06, to under $2 million this year; it is back in mid-1990’s levels as housing washes out; the problem has been on the Court side, which is not a Board-funded side; and there are over 800 foreclosures being filed each month.  He stated it is a huge amount of work per foreclosure; his Office is being flooded with foreclosures; its budget with the State actually is set 18 months prior; and it is dealing with a budget now based on foreclosures of 50 or 60 a month, and now it is having 800 a month come in.  He noted the Clerk’s Office has to stay on top of its budget all the time.  Commissioner Voltz stated the Clerk’s Office gets nothing extra from the State no matter what.  Mr. Ellis noted the State sets a cap on the Clerk’s Office’s spending; its spending for 07-08 was based on submittal back in the Spring of 07, which is pretty much based on the end of 06; anything his Office takes in as revenue above that cap it must give back to the State; and this year it will give the State back $1 million, even though it is swamped with foreclosures.  He stated one of the problems of Article V is it is great if everything goes up a little bit every year; but if one hits any kind of a spike, it is not equipped to deal with that; and the foreclosure spike has been a huge amount of work.

 

Commissioner Voltz inquired are there any State laws that can be changed to reflect that.  Mr. Ellis responded the original Article V allowed the Clerk’s Office to maintain a reserve of up to 10% of budget; when Article V went to the final bill, that reserve was stricken; had his Office been able to maintain a 10% reserve would have been about $1.5 million and it would probably be alright; but it is not.  Commissioner Voltz inquired if the people voted on Article V and that was in there, how could they just go and change it.  Mr. Ellis responded what the people voted on in 1998 was to move funding to the State; the details were left for the Legislature; the people voted to take it from County to State; and the Legislature has the details of how it did the Article V funding.  He stated that is why there is a lot more enforcement on Court fines and other things because now that money goes back to the State versus in the past, the State did not care whether the County got its money on County Court fines; now that the State gets the money it cares; and there are a lot more tools to get that money.  He advised it is a very intricate detail how the Clerk’s Office has to keep up with the various budgets.

 

Commissioner Colon stated a lot of Clerk’s employees are extremely upset with the decisions Mr. Ellis is making and have concerns over the insurance; and the County has been dealing with insurance issues for a while.  Mr. Ellis stated the County has not dealt with the insurance issue, which is how his Office has been pushed to the point where it is at today; the County has not dealt with the increased cost of insurance; Human Resources Director Frank Abbate has given the Board the numbers many times; and he has met with Mr. Abbate and Jerry Visco for years over this.  He noted his Office does not have the money to cover the County’s insurance costs any more; the County is not going to have the money to cover its insurance costs next year; his Office will open the bids and it is looking for a comparable plan; and any time someone goes from one plan to the next, there is no problem with previous injuries or previous diseases, and everything is covered as someone goes to the next plan.  He stated it is either his Office looks at another insurance plan or it stays with the County’s plan; and his Office has to come up with $500,000, which is the equivalent of laying off 20 people or it is equivalent of his Office paying for another entire year on a 76-hour work bi-weekly that his employees have been on.  He advised his Office cannot afford the County’s insurance plan the way it is structured; the County will not be able to afford it next year itself; it should have been address this year and should have been addressed for a couple of years; and it has not been addressed.  Commissioner Colon noted welcome to the County’s world; it has not been a difficult one where

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

it definitely gets criticized and everybody plays Monday morning quarterback; but now the Clerk’s Office is in the same situation the County is in; and it is not an easy task.  She stated insurance is going up for the private sector, governments, and everybody; that is nothing new; the Board has been trying to be very receptive and trying to listen to the fact that the economy has been so drastic in regard to what the County is dealing with; and it does not want to hurt its employees even more by the changes.  She noted the County has had to lay people off; it made those hard decisions last year; it was not an easy thing to do; it is not just something the Clerk is dealing with; and all the different folks in government are dealing with this.  She stated the School Board and other Constitutional Officers are staying with the same plan; the Clerk’s Office is the one deciding not to go with the plan; the other Constitutional Officers are very eager to sign the contract with the County because they feel it is affordable and there is power in numbers; and the more people that are part of this plan then it is less expensive for the others.

 

Mr. Ellis responded his world is not the County’s world; he does not have hundreds of vacant positions that are a cash drawer every year, and the County has money left over at the end of the year; the Clerk’s Office does not have a reserve fund; and the County has a reserve fund.  He stated none of the other Constitutional Officers operate like an Enterprise Fund; the Board funds them all from the General Fund; it gives them the money for the insurance and then it takes it back; and it does not fund the Clerk’s Office like that.  He advised the money from the Board represents 10% at most of the money that comes into the Clerk’s Office; the rest is an Enterprise Fund; unlike water and sewer, his Office cannot just raise the rates on water and sewer to cover insurance increases; and it does not have the options that the County does.  He stated he does not know where Commissioner Colon is going with this by saying welcome to the County’s world; the Clerk’s world has been two years ahead of the County’s world; his Office has had real reductions in revenue; it has not had the kind of increases in revenue that the County has; and now the County is starting to fall back.  Mr. Ellis stated his Office has had dramatic reductions in its revenue of 10% to 20%, and no reserves that it is allowed to keep; it has to stay on top of its budget, not once a year, every single month and now every two weeks on revenue and expenditures; the County’s insurance plan has not been addressed; it has people right now that are on subsidized insurance that are 43, 44, and 45 years old; and they will be on subsidized insurance for the rest of their life with a minimum number of years with the County to be vested; and that is something the Board will not address.  He noted if the Board wants to fund the Clerk’s Office from the General Fund that is great; if the County wants to send his Office an appropriation then the Clerk’s Office will stay in the County’s insurance program; the County is funding the Sheriff and Property Appraiser; and the Tax Collector has all his money coming in.  He stated the County is more than welcome if it wishes to send the Clerk’s Office the money and it will stay in the County’s insurance program; but he has not had that offer put on the table it; the County is asking his Office, as an Office with declining revenue and no reserves, to continue to pay more for the insurance; the only way to do that is his Office would have to lose people to do that; and it cannot get the job done if it loses any more people.  He noted the Clerk’s Office is not anywhere near the same boat that all the other Constitutional Officers are; it is not out of their pocket, but it is out of the Clerk’s Office’s pocket; it does not have reserves to use, but the Board does; and next year’s Board it is going to be welcome to the Clerk’s Office’s world.

 

Commissioner Colon inquired how much money has the Clerk requested from the Board in the last eight years; with Mr. Ellis responding zero.  Mr. Ellis stated the Clerk’s Office’s current request  is  a  shade  over  $2  million; his  Office has been funded at about $2 million ever since

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

Article V took over; and if the Board goes back to Clerk to the Board and County Finance, it has been a shade over $2 million for eight years.  Commissioner Colon noted every year the Clerk requests $2 million from the Board.  Mr. Ellis stated that is correct; it is for County Finance and Clerk to the Board, which are two mission critical functions; Commissioner Colon made it sound as if he has asked for extra money every year; he has not asked for extra money every year; and the money from the Board has been virtually flat for eight years for those functions.  He noted the $2 million is less than 10% of his Office’s budget.  Commissioner Colon stated other Constitutional Offices do not have a General Fund either; with Mr. Ellis responding that is incorrect.  Mr. Ellis advised the Property Appraiser is completely funded from the General Fund; the Sheriff is funded from the General Fund; property tax is based on its MSTU millage; and he does not know what Commissioner Colon means when she says they are not funded from the General Fund.  He stated his Office has about 10% of its revenue from the County’s General Fund; the rest is Court fees and Recording fees; the Court fee budget is approved by the State; Recording fees come in on a separate fee budget, which has been true for every Clerk since he has been on the Board; and he is not sure what Commissioner Colon’s point is.  He reiterated that his Office’s money from the Board has been virtually flat for years; the two functions his Office does the Board must do; it is mandated by State to pay its bills and keep its minutes; and he is not sure what Commissioner Colon thinks his Office does that does not need to be done.

 

Chairman Scarborough noted the staff can get a historical five-year printout of the County’s General Fund transfer to the Clerk.  Mr. Ellis advised it is zero and he has given it to the Board before; he sent it to the County Manager when this first came up; and he provided the Clerk’s Office’s five-year trend, and it is flat.  He stated his Office is eating the insurance costs every year out of that.  Chairman Scarborough noted so the Clerk has received no increases in General Fund transfers over five years.  Mr. Ellis noted over five years if it is anything it is 1% or 2% total.  Commissioner Colon stated the number is $2,288,025; and the Clerk gets that every year from the Board.  Mr. Ellis stated if Commissioner Colon wants to start comparing mission critical departments, he will gladly sit down and compare County Finance and Clerk to the Board versus Squander Ville that some of the projects that the County has done in the last five or six years; County Finance and Clerk to the Board are functions the Board must do mandated by State law; and the Board must pay its bills, it must have fund accountants, and it must keep the minutes as Clerk to the Board.  He noted his Office does not have a lot of fluff; the Board is not paying for people he has to answer the phones; it is not paying for things that it pays for for the Courts; the Board does not pay for those things for the Clerk’s Office; and it does not even pay for facilities for his Office.  He stated to act as if the County squanders money on the Clerk’s Office from the General Fund is hogwash.  Commissioner Colon requested a printout from staff for all of the Constitutional Offices.

 

Commissioner Voltz stated at the last workshop she brought up that the County needs to change something on the insurance; it has to be done; in five years, the County is going to be paying $66 million a year in insurance; it needs to stop somewhere; and it is out of hand.  Commissioner Voltz stated the Clerk has not asked for an increase over the years.  Mr. Ellis stated the functions have to be done; and if they are not done, then the County shuts down.

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

Bill Cunningham, Treasurer of the EDC, stated the EDC fully recognizes the challenges that are in front of the Board with the budget; everyone is seeing declining property values and declining revenues; and applauded the efforts that have made thus far.  He noted the EDC appreciates and is sensitive to some of the difficult decisions the Board is going to have to make; the exercise of fiscal prudent policy is important to economic development; the EDC is prepared to diligently pursue the mission the Board has given it; and it will do that with whatever the decisions of the Board are.  He stated the primary role of the EDC is to look for new economic opportunities, and retain and expand existing business wealth; it is also tasked with projecting the negative impacts to the economy; and working to mitigate those various threats.  He noted the EDC faces intensive competition from other communities, other states, and other nations, all seeking to gain that same economic development from new jobs and new business in other areas; job creation, economic output, and increase in taxable basis are very much what is talked about, but they are simply the common measurement tools to assess the additional wealth for all of the people of the community; and the EDC’s program and all the supporters are very vast and diverse.  He stated in addition to the very generous contribution the County makes, the EDC’s stakeholders include local businesses who contribute their private funds, grant programs, and several other very important partners; the County’s contribution actually makes up only 53% of the overall budget for the EDC; it is governed by a Board of Directors whose members are high-ranking business leaders in the community, which also include the County Commission; and volunteer time also given by the business leaders in the community is quite significant. 

 

Mr. Cunningham stated on a daily basis, the EDC is working to secure funds outside the County Commission funding, via private sector funds, and any elements it can to increase the program at work; the EDC understands the long-term sustainability of the program of the EDC; and it has a very balanced approach to economic development between both the public and the private entities that are investors in the EDC.  He noted in looking to the future, Brevard County is faced with some very enormous economic challenges; exacerbating the problem here on the Space Coast, is the Shuttle retirement happening in approximately two years; nearly 6% of Brevard’s workforce may lose jobs or face dramatic career changes; and it is important to support the investment to sustain the necessary tax base and give the folks of Brevard County the opportunity to share in collective wealth. 

 

*Commissioner Colon’s absence was noted at this time.

 

Mr. Cunningham stated the EDC has been operating with the County for the past two years on a three-year Agreement; during that time the funding has been flat; the EDC would like to see that continue and to close that three-year Agreement as they move into the next fiscal year without any additional challenges; cost-of-living increases have all been absorbed within that constant budget; and the EDC is prepared to do that going forward.  He noted the EDC has been faithfully dedicated on a daily basis to developing and working every lead necessary to undercover opportunities that match the Space Coast’s unique attributes; it has closed on the CEV Program with Lockheed; it is continuing to work other issues on the Constellation Program and other federal work; and there are a lot of activities going on to attract and support the commercial launch activities at Kennedy Space Center.  Mr. Cunningham stated retirement of the Shuttle occurs in just over two years, with a potential $2.7 billion economic impact, including 13,000  potential  Brevard  jobs  lost;  the  funding   from   Brevard  County   is   being   used   to

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

aggressively meet this very monumental challenge; the EDC has been a successful organization; and the impact for the County has been very positive.  He noted a couple  of  key  successes  over  the  last  several  years  including  an  additional  1,000  jobs in Brevard County, bringing the CEV project to Kennedy Space Center, and the recent announcement  of  Embraer, who  is  operational  in  the  Melbourne  area; the  EDC did a study recently through the NCDS organization, which does economic development support and consulting for various entities around the Country; what it has indicated in the last four years of the fiscal time period, the EDC has been responsible for bringing 4,181 total direct/indirect jobs to the County, with a capital investment of $131 million; and the very direct affect on Brevard County includes an economic impact contributing $5.1 million per year in local tax revenue.  He stated the EDC is not standing still and just continuing the same process; it has engaged in a very strenuous strategic planning exercise; it took a group of investors, formed a committee, and it is challenging what the strategic approach to the marketplace should be for the EDC; and once it is complete, it will provide the refinements and processed so that it can show how the EDC will increase its focus, allow for more transparent accountability, raise the overall effectiveness of the organization, and return more for all of the investment dollars, be they the investment dollars of the County or the investment dollars of the private investment base. 

 

Mr. Cunningham advised the EDC is looking forward to full implementation in October; and urged the Board to stay the course with the EDC’s funding.  He stated Brevard County has celebrated very significant economic expansion this decade, adding almost 27,000 jobs since 2000; it has experienced GDP growth that has placed itself in the top ten percent of all areas Nationwide; if there is ever a time to be more proactive and more aggressive in economic development, that time happens to be now; and the EDC has reviewed the Return on Investment (ROI).  He stated economic development is about more than just creating jobs and adding to the tax base; it is about the mitigation of challenges and foresight in the face of adversity, areas in which the EDC has proven very adept in recent years; challenges in the Space industry remain to the tune of $2.7 billion over the next three years; and more than ever, it is time to invest in the organization that can increase the tax base and increase the economic future for Brevard County.

 

Commissioner Nelson advised he supports continuing EDC’s funding at the existing level as it is important at this point in time for Brevard County to make the extra effort to bring those businesses here to offset what it is going through; Kennedy Space Center is going to lose those jobs no matter what the County does; and he would hate to see it reduce its effort to try to support the effort to bring those businesses here.

 

*Commissioner Colon’s presence was noted at this time.

 

Commissioner Bolin stated she agrees 100% and the Board should stay the course; this is vital times; all the effort should be placed on what the EDC would be able to do and bring to the table; and the fact that the EDC has $5.1 million already showing per year qualifies justification for every dollar the County is able to give to the EDC.

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to approve retaining full funding for the Economic Development Commission (EDC) of Florida’s Space Coast.  Motion carried and ordered unanimously.

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

Lynda Weatherman stated on June 23, 2008, there was the U.S. Senate field hearing; she testified along with the Brevard Workforce Development Board, and the NASA Administrator testified, along with several others in regard to the status to the two U.S. Senators; concurrent with that was a community effort; and it was one of the roles they are planning to bring the Space issue that they are so familiar with at the National level.  She noted it was a co-venture they did; it was truly a community effort; it was much like the organization it did with BRAC in regard to all the communities involved; everybody contributed funds; and the goal was to show through the media that this is a community that is concerned, but more important, excited about the future of Space.  She stated NASA Administrators advised they are concerned about the number of jobs that are going to be lost, and particularly the number of jobs that are going to be lost at Kennedy Space Center; and NASA is looking at identifying programs to look at some of the jobs.

Bino Campanini, Chairman of LEAD Brevard, stated LEAD Brevard supports the work the EDC is doing in the community; the County provides $50,000 to LEAD Brevard; retaining companies is a big issue; focusing on keeping the young professionals here is important; and that is where LEAD Brevard has been putting most of its efforts in. 

 

*Commissioner Colon’s absence was noted at this time.

 

Mr. Campanini noted last year the average budget reduction from the General Fund was about 10%; LEAD Brevard received a reduction of 50% last year; it is hoping the Board is going to be kinder to LEAD Brevard this year; and the revenue it gets, Brevard County represents about 12% of the revenue.  He noted 88% of LEAD Brevard’s funding comes from businesses and individuals in the community; and the money LEAD Brevard receives from Brevard County is put to good use.

 

Kristin Bakke, representing LEAD Brevard, advised of the community leadership programs that LEAD Brevard is currently engaged in, and the community development pieces it works with to show an overall view of what LEAD Brevard does with a total budget of a little over $300,000 and three full-time staff; LEAD Brevard piloted a new program called the Young Professionals Fast Track; most of the participants are either from USA, Northrup Grumman, and UCF; and LEAD Brevard will be hosting here the Young Professionals International Summit September 25 through 27, 2008.  She stated United Space Alliance also is hiring and will continue to hire young professionals through and including the end of the Shuttle Program.

 

*Commissioner Colon’s presence was noted at this time; and Commissioner Voltz’s absence was noted.

 

Ms. Bakke advised LEAD Brevard is cognizant and aware of the challenges that the community is facing with the Space Program; and with a limited budget and limited staff resources, LEAD Brevard is still currently negotiating a Memorandum of Understanding (MOU) with the Brevard Workforce Development Board to see how they can play a role in the community impact, and communications awareness of the work they are doing around this issue.

 

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

Mr. Campanini advised LEAD Brevard is trying to partner as much as it can with organizations, to get the best bang for the buck; there is a leadership out in the community as well; and expressed appreciation to the Board for its support.

 

Commissioner Nelson stated right now there is a reduction of 5%; this fits in with what the Board has talked about with the EDC; and it is a partnership.

 

*Commissioner Voltz’s presence was noted at this time; and Commissioner Bolin’s absence was noted at this time.

Chairman Scarborough stated if the Board goes down this in sequence, at the end of the day it is going to find some options lost; it would be best to listen to everybody and then go back through; he is voting in opposition to any more decisions; and the Board is going to be getting into some bigger budget changes.

 

Commissioner Nelson stated that is fine if Chairman Scarborough wants to do that procedurally; LEAD Brevard is important; and he supports it.

 

*Commissioner Bolin’s absence was noted at this time.

 

Shelley Lauten, Director of Myregion.org., gave a presentation to the Board; advised Regional Resolves and key actions from 1999 through 2008 include Regional leadership, research corridor, Regional transportation organization, Regional economic development, environmental assets, Regional concurrency standards, educational excellence, Regional access, public safety, and Regional brand; and of Regional accomplishments from 1999 through 2007. 

 

*Commissioner Bolin’s presence was noted at this time.

 

Ms. Lauten stated the recommended Phase III focus include research, public outreach, and leadership engagement; the Regional Progress Report includes economic leadership, education, environment, fragmentation, quality of life; smart, quality growth; Regional Leadership Academy, Leadership/Vision Programs alignment, environment, transportation, and social services/homelessness.  She noted the ideas to results are to preserve open space, recreational areas, farmland, water resources, and regionally significant natural areas; provide a variety of transportation choices; foster distinct, attractive, and safe places to live; encourage a diverse, globally competitive economy; create a range of obtainable housing opportunities and choices; and build communities with educational, health care, and cultural amenities.  She advised the Regional Priorities are to coordinate on a strategy for water conservation and future supplies, continue Regional Green printing for natural areas and conservation lands, and develop a regional, multi-modal transportation plan.  Ms. Lauten advised MyRegion hopes the Board sees the value in continuing to stay engaged; it did not fund MyRegion last year because her Organization did not ask it to; it realized the difficult issues the Board was facing; and MyRegion is at the end of Phase II, which was last year.  She stated MyRegion was able to find additional  funding  in  the  business  community to help support the Board’s inability to fund last

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

year; at the beginning of Phase III, MyRegion is asking the Board to come back to the table and fund the Organization; and it is requesting for 14% less than it requested in 2006, which is $30,000.

 

Chairman Scarborough stated with “How Shall We Grow”, there was a lot of internal opposition within the County; it was not well received; on the contrary, the Space Initiative has been most well received; and there has been a reversal in the view of many people in the County that there can be constructive relationships.  He noted as the County works through this, he is willing to reconsider if it moves beyond the “How Shall We Grow” to a collaborative effort to move in these more significant interests for Brevard County.

 

Ms. Lauten stated the benefit that came out of “How Shall We Grow” is the Congress of Regional Leaders; there is now a group of leaders from across the Region on the elected official side who have identified three Regional issues that they can work on together as a Region; it takes it beyond the efforts of “How Shall We Grow” and makes it more strategic, including how to address, for example, water, regional transportation, and the environment; and consistently, citizens said those three issues mattered most.

 

Commissioner Voltz expressed appreciation to Ms. Lauten for her efforts; and stated she was involved with “How Shall We Grow.” 

 

Chairman Scarborough complimented Ms. Lauten concerning the Space Initiative; stated MyRegion has been champions for Brevard County; and because of that and the potential for future relationships, the County needs to get back involved in that capacity with the MyRegion effort.

 

Commissioner Nelson expressed appreciation to Ms. Lauten and MyRegion regarding Green Map process and the Space Initiative.

 

 

            County Attorney

 

County Attorney Scott Knox stated he reduced his budget by $60,000 this year, which is approximately a 4.5% decrease; it was primarily a position that was transferred into his Department from the Library Services Department for Records Management; last year two employees were laid off from his Department; and he has 12 employees at this time.  He noted when he started his job here 15 years ago, he had 15 employees; so he is actually losing employees over time; there comes a point in time where his Office reaches a critical mass; and if any more people are laid off, it ends up having to go outside to get help, which costs about two to three times as much.

 

 

 

Commissioner Voltz stated Solid Waste Department is a huge one; and inquired if the County could go out for RFQ to find out if it could privatize the Department.  She noted it may save the County millions of dollars.

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

Chairman Scarborough stated maybe it is a good idea; his problem is that there will be three new Commissioners coming on board; he is not comfortable going off on something that is going to impact a Commission that he is not going to be serving on; and it is a discussion after the new Commissioners become acquainted with the issues.

 

Commissioner Nelson stated there are new Commissioners next year; they will be establishing their goals; they can take a look at this issue; and there are so many issues.  He noted there are people who will be opposed to that privatization because they are going to believe that Brevard County has lost its ability to control costs; the County would be giving it to a private sector; and he would like to get more of the full background before the Board pulls the trigger on something like that.

 

Commissioner Voltz noted perhaps the issue can be discussed for budget time next year.

 

Commissioner Bolin stated the new Commission will probably look at the issue.

 

A staff member representing the Budget Office advised that the Solid Waste budget of $108,272,146 is an increase of $242,762, which is actually a 0.22% increase over this current year; the Miscellaneous, which is the interest revenue, decreased; and the balance forward increased mostly for bond escrow, which has to be carried over from year to year.

 

Commissioner Bolin stated under Program Changes under Disposal, there was a program change of increase a Staff Recycling Educator from part-time to full-time; and inquired as to the value to the taxpayers of the increase of $23,000. 

 

Solid Waste Management Director Euripides Rodriguez responded the Governor has signed the Energy Bill; FDEP is going to be taking to the Legislature a plan to increase the recycling rate from 35% to 75%; staff does not know how this is going to be accomplished because the Legislature has to approve it; but staff knows the County is going to have to increase the recycling somehow.  He stated the whole idea was to bring this person from part-time to full-time to be prepared to do that and start increasing the recycling from right now at this point since the County knows it is going to have to be going to 75% by the year 2020.

 

Commissioner Bolin stated since it is going to be a big push at the State level, there is going to be a lot of education provided at the State level for all the citizens of the State of Florida; and inquired why would Brevard County absorb the extra costs of the education side when it is going to have a lot of different companies assisting it to get the word out.

 

Mr. Rodriguez advised he is not too sure what kind of assistance Brevard County will be getting at the State level; but this is trying to anticipate it; and whether the Board thinks staff should wait an additional year in order to get more information from DEP, then it is up to the Board; but he was just trying to anticipate the problem.  He stated January 1, 2010 is the deadline for presenting the plan to the Legislature.

 

County Manager Peggy Busacca advised basically the law has been adopted and now they are in the rule-making process, which is always done at the State Department level; and Brevard County knows what it is going to do, but it does not know how it is going to do it.

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

            Permitting and Enforcement

 

A staff member representing the Budget Office advised the Permitting and Enforcement Department’s proposed decrease for its budget is $2,556,244; it equates to a 24.5% decrease with the tentative budget; due to the slow down in construction activity, the Department has decreased from 122 positions from FY 2004-2005 to a proposed 91 positions; and most of the positions were cut this year due to the revenue issues.  He stated currently in the tentative book there is only one vacant Engineer I position that is due to be cut.

 

Chairman Scarborough stated the Permitting and Enforcement Department is tremendously fee-based; the fee is obtained because of services provided; this massive cut is not going to equate directly over to the taxes they pay from General Revenue; and it is a different source of revenue.

 

Permitting and Enforcement Director Ed Lyon advised the Department is made up of four primary programs, two of which are 100% funded by fees, one of that being the Building Code Division where it issues building permits; those that are using that service come in and pay a fee for it; those fees support that program; and Land Development is the same way.  He stated those are larger scale developments; when a developer is proposing a new subdivision or a site plan, which could be either multi-family, a convenience store, a box store, etc., those are considered site plans; the development community pays a fee to utilize those services; so that program is also 100% fee supported.  He advised the other two are Licensing and Enforcement, and Code Enforcement programs; the Licensing and Enforcement site is a split between a fee-supported system and it receives some General Fund for the actual enforcement side; the licensing of the general contractors and some of the enforcement they do on licensed contractors is paid through fees that contractors actually pay yearly renewal fees; and Code Enforcement has a split budget from Solid Waste if it is doing a solid waste case, and anything to do with Zoning or any other general code is funded through the General Fund.

 

 

Criminal Justice Services Director Shaunna Heffernan advised back in February 2008, she brought to the Board an option to impose a surcharge on parking fines in unincorporated Brevard County; it would help to fund the School Crossing Guard Program; and she was asked to bring the issue back during the budget process.  She stated the County does not charge now; it is something Florida Statutes allows counties to do; if the County were to tack on a charge, she put something in the package; the range of fees is anywhere from $25.00 to $100.000; and if  the County could  tack on  a $10.00 charge, at an estimated average of three years of parking tickets, it would be $22,000 to $25,000.

 

 

 

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

Motion by Commissioner Voltz, seconded by Commissioner Bolin, to grant permission for staff to advertise the creation of a new ordinance allowing the imposition of a $10.00 surcharge on fines levied as a result of tickets issued for parking violations in the unincorporated areas of Brevard County for the purpose of funding the School Crossing Guard Program.  Motion carried and ordered; Commissioners Nelson and Colon voted nay.

 

 

The meeting recessed at 11:30 a.m. and reconvened at 1:15 p.m.

 

 

 

A staff member representing the Budget Office stated the Law Library’s total budget for FY 2008-2009 is projected to be $383,104; this is a decrease of $60,299 or 13.6%; it had about a 10% decrease in the General Fund because there were about 7,000 General Fund items, such as property insurance and workman’s compensation that went down; so they recouped that, and the Law Library took across-the-board 5% cut in the General Fund transfer; and it was offset by a reduction in purchase of media publications.

 

Chairman Scarborough stated earlier today the question came about concerning increases in the different Constitutional Offices; and Assistant County Manager Stockton Whitten provided a spreadsheet over the years to see which ones have increased and which ones have not.

 

Commissioner Colon advised in looking at the numbers, FY 2008, it shows what each Constitutional Officer receives from the Board; $197,000,000 of the General Government revenue is what the Board gets; out of that, the citizens need to know what percentage everybody gets; and the Sheriff’s Office gets $84 million, the Property Appraiser gets $8 million, the Tax Collector gets $8 million, the Supervisor of Elections gets $4 million, and the Clerk of Courts gets $2 million.  She stated in adding that up, it is $107 million; subtracting that amount from $197 million, that is what the Board has to work with; so 54% of the General Government revenue goes to the Constitutional Officers; and by law they have to get those dollars.  She stated the Sheriff’s total budget is $109 million, the Clerk of Courts total budget is $23,500,000, the Supervisor of Elections budget is $4 million, the Tax Collector’s budget is $10 million, and the Property Appraiser’s budget is $10 million; and the Board has to tighten its budget the same way the Constitutional Officers have to tighten their budgets.

 

Chairman Scarborough stated the issue raised with Mr. Ellis earlier was not what percentage was his Office of the total budget, but did he actually receive increases over the years.

 

Commissioner Colon inquired where does the rest of the revenue come from so folks do not think it is just from the Board.  Mr. Ellis responded it is not from the Board; it is actually a little bit misleading to have it in that column; that has nothing to do with his budget request from the Board; and his budget request from the Board is simply on what is covered by the Board.  He stated the remainder of that money comes from the State; that is court fees his Office collects; the other money comes from Official Records, which is to maintain Official Records, which is Recording; that is why he says the Board represents about 10% of his Office’s total revenue; and  the  Court Budget is approved by the State.  He noted that is court fees if his Office collects

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

them; if it collects over what has been budgeted, it sends that surplus back to the State; Recording fees pay for the Recording Department; and they also pay for the Information Systems Department.  He stated the Sheriff has an MSTU; his total budget request to the Board is $2.2 million period; his Office deals with the State on the Court side for its budget; and that was the whole point of Article V.  He noted before Article V, the Board went over the Clerk’s budget for the County Courts and the Circuit Court was a fee-based Court; and Article V put a clear delineation in there for the Courts and the non-courts.

 

Commissioner Voltz stated the $2 million has been stable over the last five years; with Mr. Ellis responding affirmatively.  Mr. Ellis advised the County’s role is Clerk to the Board and County Finance; Mr. Whitten has broken out County Finance and Clerk to the Board, going all the way back to 2002/2003; when one rolls that back, his Office’s total increase over the entire time, six years, is 10.1% divided by six or seven years; and that does not even cover his Office’s insurance increase.  He stated he will be more than happy if the Board wants everybody to roll their budget back to 2005 numbers; he will be glad to join in; every single Department in Brevard County can roll back to 2005 numbers; and that is $150,000 for his Office and probably $150 million for everybody else.

 

Commissioner Colon stated the information that has been given to the community has been very misleading; more than ever, especially during these very economic difficulties that all the different agencies are having, the citizens need to deal with the real numbers; all of this is very transparent and they are able to get this information; and this is all public record information.  She noted the County is dealing with $197 million; all of the different Constitutional Officers get a big chunk of that money from the Board; that is really key; and the Board does not have a say in regards to their budgets as they are protected, some of them by the Department of Revenue.  She noted the Board also discussed that law enforcement and safety come first.

 

Chairman Scarborough stated the increase from 2003 to 2009 for the Sheriff’s Office is 70 plus percent, Property Appraiser is 34%, Tax Collector is 75%, Supervisor of Elections is 43%, Clerk to the Board is 10%.  Mr. Whitten advised those are their General Revenue transfers.  Commissioner Colon stated a certain Constitutional Officer has their capital outlay also put in there in regard to the new building that is being built in Titusville; and she believes the County pays for it.  Mr. Ellis stated the funds came from Recording Fees; his Office gave the County overall about $2.5 million three years ago; his Office also pays for every bit of facility work it does; and it gets hit, just like all the Enterprise Funds get it.  He advised the other Constitutional Officers are General Funded, so the County appropriates for their facilities; the Tax Collector is a little bit different because he sees the money first before he hands the money back to the Board; he cannot address how that was handled between the Tax Collector and the Board on paying for the facility where he is replacing Parkway; but for his Office, the money was moved over from Recording Fees and the Records Modernization Trust Fund; and his Office has moved, probably in the last five or six years, over $4 million for County facilities work his Office has had done.  

 

Commissioner Colon stated the citizens keep wanting to know how is the County Budget; they also need to be able to look at how each Constitutional Officer spends their money, particularly, capital outlay; the majority of the dollars also went to the Sheriff’s Office; and that was something  the  Board  felt  was  a  priority in regard to the expansion and the different tents that

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

had to be built out there.  She noted when the Board is looking at budgets, the dollars are not only coming from the County; that is exactly her whole point; 54% of the General Government Revenue that comes to the County goes right back out to the Constitutional Officers; and it is key for the citizens to hear how those dollars are being spent. 

 

 

A representative of the Budget Office advised the total proposed budget for the next fiscal year is $27,230,882; this is a decrease of $8,361,207 or about 23.5% from this current year; the majority of that decrease is in the balance forward due to completion of some of the Department’s hurricane repair projects CDBG projects that it carries forward and balance forward every year; and the General Fund reduced about 10%.  He stated some positions were eliminated and downgraded; there was about a $400,000 reduction in Medicaid and some various operating expenses; the operating that offset it was again operating expenses reduced 26% associated with some of the SHIP projects, which are carried in operating rather than CIP; and two full-time positions were cut, and two other full-time positions were down graded to a lower grade.  He noted the Department returned the TANIF Program money that was left there that was just over $322,000 to the General Fund; the State mandates that are on the County Manager’s list was provided to the Board; there are about 11 mandates; and six of them flow through the Housing and Human Services Department’s budget.

 

Commissioner Bolin stated she wants to keep the grant writer position; and that person has generated $19 million back to Brevard County through State, federal, and local monies.

 

Housing and Human Services Director Gay Williams stated she would like an opportunity to keep that position, but decisions were being made in looking at how to preserve positions with people who are already in the positions; and the grant writer position is a valuable one to the County.

 

Chairman Scarborough stated he concurs with Commissioner Bolin; Ms. Williams has some vital services as people become unemployed and have problems; she is that group that will help people through the worst of times; and if he is going to be looking at adjustments, he is going to be trying to find how to keep Ms. Williams’ Department as viable as possible for the needs to the community.  He noted he does not want to make decisions at this moment, but as the Board comes back and moves money around, this is one where there needs to be a fuller discussion of some of the key components of the services that are only available through Ms. Williams.

 

Commissioner Nelson stated one of the areas in the budget he had looked at were the programs that the State had originally, and now it has, in effect, dropped and the County has picked up; one of those is Country Acres and it is a great program, but it is an $800,000 program; not for this budget year, but several other counties have privatized this and have gone more into the community for the funding of this; and in preparation for next year’s budget, perhaps the Board can take a look at that and see if there is not more of that, that could be done by the private sector as opposed to the County.

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

Motion by Commissioner Nelson, seconded by Commissioner Bolin, to direct the Housing and Human Services Director and her staff to review alternatives for privatization concerning Country Acres; and look at what other counties have done.  Motion carried and ordered unanimously.

 

 

 

Karin Mack, representing Brevard County Sea of Dreams, stated the Organization is non-profit; it is trying to notify and let people know about the riptides and lifeguards; last year there were ten deaths in Brevard County waters; and this is way too many people.  She noted this year there has been one death; last week, three people were saved, but there were lifeguards present; Saturday there was no lifeguard; and these are tourists that are coming to the Brevard County beaches.  She advised Brevard’s beaches should be safer; the County can find the funds for lifeguards; Brevard County Sea of Dreams is trying to assist; and provide brochures to the Commissioners.  She stated the lifeguards are only part-time; mother nature does not take a break; two people were lost in Volusia County, but thanks to the lifeguards, 200 people were saved; and last weekend, 15 lives were saved where lifeguards were present.  She noted last year, Brevard County had 1,030 rescues, but ten people died; the roughest waters are along Brevard County’s coastline; her Organization will be distributing brochures to hotels; Brevard County has posted signs on boardwalks and walkways; and the signs are good, but the County still needs additional lifeguards.  She noted this issue should not even have to be discussed; life rescue should be there; and period of discussion.

 

Joe McManus, representing USLA, commended Brevard County Sea of Dreams; advised such Organization formed after the death of Ted Hunt, Jr., who was a tourist from Maine who was visiting a friend here; he went into the water as a good Samaritan to help someone who was drowning; and that person survived, but Mr. Hunt lost his life and should not be forgotten in this discussion.  He stated Mr. Hunt’s family does not have a good memory of Brevard County; Blais Lamontagne, who just happened to be on the beach when four people were drowning where there is no lifeguard; he and his girlfriend rescued the persons; and Mr. Lamontagne was struggling with one adult male, who ended up drowning.  He noted that is happening all over Brevard County often and with consistency; the County cannot rely on good Samaritans to do the work of public safety in Brevard County; it is clear; and the Board needs to consider that when it is talking about the efficacy of lifeguarding, and the public safety nature of the work.  He stated he thinks there are ways to combine these three suggestions and reduce the costs, and have adequate levels of lifeguard staffing; and he believes the County has the funding already within the Fire Rescue Department’s budget without raising taxes.  Mr. McManus stated the firefighters and Chief William Farmer are heartbroken over the 20 drownings that have happened in the last three years; they want to have the tools to be able to stop that from happening; Brevard County can do this; and drownings are almost 100% preventable if there is the proper equipment, proper staffing, and proper tools.

 

Gerald Storrs, representing USLA, stated the lifeguard service seems to be an orphan within the Fire Rescue Department; Brevard County has picture illustrations of all the guys who count in the Fire Rescue Department; but there is no picture of Wyatt Warneth there.  He noted Mr. Warneth  used  to  have  the  title  of  Chief  Lifeguard; now  he  has  the  title  of  something like

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

Lifeguard Coordinator; the County needs to see to it that the acceptance of the responsibility for the function is there; and it does not seem to be there right now.  He stated he is convinced that the Fire Rescue Department has the funds, if it will accept the responsibility; it is a matter of reallocating the funds from one pocket to another; and he does not see any need for outside financing of any sort, whether it is the TDC or otherwise.

 

C.J. advised he wants to go to the beach feeling safe; the lifeguards need to be present to prevent drownings; the rip currents are bad; and he wants to be a lifeguard in the future.

 

George Theriault stated he read about Brevard County reducing the fire fees by 15%; under draft fee proposal, the newspaper indicated the fee of this year’s bill could range from $17.21 for a manufactured home of 700 square feet or less to $320.48 per a single-family house; people need to be educated on manufactured homes; and the fees should be charged accordingly.  He noted if people live in a fire-wise community, they need to receive discounts.

 

Chairman Scarborough stated the County had the option to go with just the square footage or to different classifications that the Property Appraiser used; the County opted to use both the square footage and the Property Appraiser’s classifications; and staff will set up a conference so Mr. Theriault can speak with the County’s Consultant.

 

Mr. Theriault stated if the County goes strictly by property value and all of that, it leaves out the aspect for human life.  Chairman Scarborough noted that is an interesting point that the County did not get into.

 

Chairman Scarborough stated Chief Farmer will work with the lifeguards to come up with some proposals.

 

Chief William Farmer stated he and Mr. McManus have worked together on some issues and discussed others; they talked about getting together and trying to come up with one final document that had both of their signatures on it; and he has no problem with that at all.

 

Commissioner Bolin stated the TDC is reviewing the issue also; and requested Chief Farmer keep the TDC in the loop.  Chief Farmer stated the Board asked staff to create some kind of educational program and give it to the hotels and put it on the closed circuits; and Mr. Warneth and Orlando Dominguez worked on that program.

 

Commissioner Voltz stated Chief Farmer talked about multi-million dollars to put on five or six lifeguards, and inquired what is that cost figure.  Chief Farmer stated the report from Fire Rescue includes the hybrid program, which is a combination of both additional seasonal and year-round lifeguard program; three seasonal towers would be about $188,000; that is in his proposed budget; and the Board could do that today if it desires.  He noted $188,000 could be used for one year-round lifeguard tower; his Department is not happy with either one of those; a year-round program gives more stability with his employees; and Mr. Warneth has a very difficult job in hiring high school kids and young college adults for a seasonal program.  He stated if the County could have a solid year-round program, Mr. Warneth would have a core of personnel that would be steady; that is what the year-round really gives the County; the seasonal  towers  gives  more  coverage; and  it  is  making  sure  there  are  enough zones and

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

enough protected guarded areas.  He stated the idea of coming up with some kind of hybrid will be something quite easy to do.

 

Chairman Scarborough advised Chief Farmer will be coming back with additional information on how to proceed and some ideas.

 

Chief Farmer stated Mr. Warneth is still Chief Warneth; he is the Chief Lifeguard; he has his own web page and has his own section; and he calls Chief Warneth every morning to ask him if there is anything he can do to assist him.  He noted he is the one who went after the Lifeguard Program because he saw it as a First Responder, so the idea that his Department does not care about or desire the Lifeguard Program or Mr. Warneth personally is completely inaccurate information.

 

Commissioner Colon stated the Reader’s Digest indicated that Cocoa Beach is the number one in the Country for affordable vacations; the number of folks that are coming to Brevard County’s beaches is increasing; the number of lifeguards must go up; and the tourists and citizens of Brevard County need to be educated concerning the rip currents.  She noted Chief Farmer has championed for the lifeguards; it is the responsibility of the Board to put those dollars in effect for the lifeguards; and inquired is there any way to approve that $188,000 for this year’s budget to take care of this problem as soon as possible; and stated the County must do something now because the tourists and children are here on vacation.  Chief Farmer stated that would strengthen the core program; and requested the item be brought back on July 29, 2008.  Chairman Scarborough advised that is fine.  Commissioner Voltz stated she would like to look at having maybe several full-time lifeguards year round.  Chairman Scarborough advised the item can be placed under the County Manager’s report.

 

*Commissioner Colon’s absence was noted at this time.

 

Chief Farmer stated concerning the Titusville Rescue, last year the Board approved funding for a Titusville vehicle, but the Board was unable to provide funding for the actual personnel; there are people who are confused; they think he was supposed to put on an additional Titusville Rescue; but he never received funding for the people.  He noted if the Board desired him to put on an additional Titusville Rescue last year, he did not, but he has the capital in the budget and has not bought it yet; he does not have the personnel; if the Board was wanting him to put on an additional Titusville Rescue, he needs that program funded; and the cost of that is $611,777.

 

Chairman Scarborough stated he has not had a chance to visit with Chief Farmer; there are other people that are going to weigh in up there; and requested this be one of the items that comes back later as he needs additional information.

 

Chief Farmer stated currently First Responder is funded in the proposed budget that Ms. Busacca has on the balanced budget at its current rate, plus the $55,000 that the City of Cocoa Fire Department would get if they bring all their units up to ALS; last year, he brought the Board a Contract increase for the City of Cocoa because it had just gone ALS; if it makes the rest of its Department ALS, it is eligible for an additional $55,000; and that is in his current proposed budget  to  the  County  Manager  that  the  Board  has.  He  inquired  if the Board wishes him to

 

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

continue funding that Program at its current rate or is there some modification it would like to have; stated everyone should have received the First Responder report his Department was asked to do last year; and he did not know if there was general discussion for that.

 

Chairman Scarborough stated he would like to be briefed on this issue at the same time as the Titusville Rescue item.

 

Commissioner Nelson stated the unincorporated resident pays into the General Fund, which then pays for First Responders; unincorporated also pays for, in effect, what is the same level of service through its MSTU; so unincorporated is paying twice, but not receiving any of the benefit; and his question was should the County be treating its own fire folks in the same sense as the First Responders.  He noted all he wants to see is equity; and there is an equity issue that needs to be addressed.

 

Chief Farmer stated the City Managers that were part of the Committee are aware of all of those issues; they are aware of the fact that County Fire Rescue does not get any portion of the General Fund First Responder; it is treated differently; and all of the First Responder issues are paid through either the Fire MSTU or the fire assessment, and no money comes into First Responder like it does the cities.  He noted if the Board wishes to treat Fire Rescue the same exact way with no difference to the cities and using the current formula, that would be about $771,000 of new money from the General Fund into Fire Rescue; and if the Board uses the existing funds, in order to put Fire Rescue into the formula and use existing cash, some of these folks would be seeing a reduction of nearly half of their money.

 

Chairman Scarborough requested staff brief the Commissioners on the issue.

 

Commissioner Voltz stated State law does not allow the TDC to fund lifeguards; and it needs to change that. 

 

County Manager Peggy Busacca advised staff can get it worked up for the Legislative Package.

 

Commissioner Nelson requested when the issue comes back to the Board that the beach side cities to be present as they have a different perspective; their perspective is they get all the impacts, but they do not get the revenue that goes with it; they feel their citizens are paying a disproportional part of that; and that is their position.

 

 

The meeting recessed at 2:30 p.m. and reconvened at 2:40 p.m.

 

 

 

 

 

 

 

 

 

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

            Utility Services

Utility Services Director Richard Martens introduced Rob Ori, Consultant with Public Resources Management Group; stated Mr. Ori has recently completed a Revenue Sufficiency Study for the Utility; it is the first formal study the County has conducted in about 25 years; and it originally started the study because of its anticipated needs for facilities expansion.  He advised the most immediate need was an issue about discussing a new water treatment plant for the South County Area; there were also anticipated needs for expansion of the South/Central Wastewater Plant and the North Brevard Water Plant; since the County started this process, there has been a significant downturn in the housing market; and that has had some impacts on the County’s needs for future capacity, particularly in the Mims and South/Central area.  He stated all of those projects are still included in the study; the funding for those were moved out to the end of the period; the County will not be needing bond money within the next three or four years at least; and there is no need to talk about borrowing money for that.  He noted the South County Water Project he had not deferred implementation of that in this rate model primarily because of the litigation the County was in with one of the developers; and as it has worked through this process, particularly over the last few days, and given that more thought, there is an opportunity to affect the proposal that was made previously, in a very positive way if the County were to defer one year the construction of that plant.  Mr. Martens stated he will make a presentation on the existing system and what he believes the County’s minimum needs would be in the absence of going to the bond market for any new construction, both for the Countywide system and for Barefoot Bay.  He noted Mr. Ori will discuss the capital plan, long term rates, and the issues facing utilities all over the State.

 

Mr. Martens stated the County’s utility system is an Enterprise Fund; it uses Enterprise funding accounting; all of the expenses are paid by the users; and there are six service areas.  He advised the expenses are Operation and Maintenance (O&M), debt service, Renewal and Replacement (R&R), capital programs, and Payment In Lieu Of Taxes (PILOT); the main revenue sources are charges for service, connection fees, and interest on reserves; the 1983 Utility Revenue Bond specifies minimum service fee revenue relative to O&M expenses and debt service (Test #1), and minimum total revenue (including connection fees) relative to O&M expenses and debt service (Test #2); and in 1983, the County sold $115 million in utility revenue bonds.  He stated the County regionalized 11 or 12 different package plants into the service areas; it required a 120% rate increase over three years; at that time, the County had the highest sewer rates in Florida; and there was a tremendous reluctance to raise future rates.  He noted in the 1990’s, the County developed a rate control strategy; it included limiting bond test operation and maintenance expenses, maximizing use of connection fees for eligible expenses, increasing service fee transfer to reserves; reserving funding for renewal and replacement, operating equipment, engineering and permitting, and PILOT; in the last 15 years, inflation has increased significantly more than rates; and the rates are now competitive.  Mr. Martens presented a chart depicting the County sewer rates compared to what they would have been if the County had been indexing its rates with the Consumer Price Index (CPI); stated the County’s fees for service have stayed well below inflation all these years; the  problem  with  the

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

downturn  in  the  housing  market  is  the County’s connection fees have been reduced; in 2007 and 2008, the County’s revenues have dropped significantly; and that is the problem it has right now with financing the existing system.  He explained the charts relative to Bond Test #1, Service Fee Revenue relative to O&M and Debt; Bond Test #2, Total Revenue relative to O&M and Debt; Impact of Housing Market on the 1990’s Financing Strategy, Reserve Transfer History; and the historical representation and projection of where County staff believes the Operating Reserve Balance would be if there is no rate increase this year and no Renewal and Replacement (R&R) Program.  He advised the R&R Program is an issue of replacing the aging infrastructure; the original construction value of the utilities assets is $240 million; about one-half of the neighborhood pipes in the ground and pump stations were constructed in the 1960’s and 1970’s; there is the corrosion of concrete and steel in sewer systems for sewer gases; this is not routine maintenance; and there are 26 priority projects in the Five-Year CIP, for a total of $7.6 million.  He stated when adding vehicle and equipment replacement, it is about $11 million in capital replacement; that aging is going to continue; regarding R&R inflow and infiltration, when gravity sewer lines leak in, not out; it increases pumping costs; and sand causes line blockages and abrasion, and consumes capacity.  He noted it causes overflow during heavy rain; it is common in older systems, including South Beaches and Merritt Island; there is a long-term effort and continuing commitment; seven miles have already been renovated; and the Five-Year CIP is $3.75 million.

 

Mr. Martens presented a chart depicting the high inflow and infiltration with the South Beaches Wastewater System and the low inflow and infiltration with the South Central Wastewater System; stated concerning the R&R sewage pumping stations, there are 267 pumping stations; 54 of them are over 40 years old; there are six priority pump stations—Merritt Island (3), South Beaches (2), and Suntree (1); and the Five-year CIP total is $1.3 million.  He noted regarding the R&R pressure pipe, wastewater pressure mains, iron or concrete-asbestos pipes are particularly susceptible to sewer gas corrosion; Merritt Island has two pressure mains and the South Beaches has two pressure mains; and the Five-Year CIP total is $0.6 million.  He stated with R&R vehicles and equipment, there is $8.8 million in operating equipment; the County’s average age of its vehicles is seven years; the acquisition cost was $4.8 million; if the County turns the vehicles in at 12 years, that is 8.3%, which is $400,000 a year at original purchase price; and the County is looking at $3.5 million over the Five-Year CIP estimate, not counting upgrades to emergency equipment, such as portable emergency generators. 

 

Mr. Martens advised R&R other requirements include roadway projects; utilities are normally required to relocate infrastructure; such projects are South Patrick Drive, Pineda Extension, and Harry T. Moore Avenue; regulatory requirements include disinfection by products, reclaimed water – effluent disposal and alternative water supply; and TMDLs.  He stated as an option to doing anything else, the County can continue with this 1990’s funding program; it is a barebones program; the County would have to defer the issue of its bond rating; and the big unknown is inflation.  He noted the County is assuming a slow recovery in the housing market; he has assumed the full R&R Program, which is $7.6 million; and the County would go to a minimum reserve level, which would be 60 days of O&M expenses, which is about $3 million.  He depicted a chart showing the status quo funding option and a reserve balance projection for a Five-year R&R on the Countywide basis of 6%, and indexing of 3% after that; stated it keeps the County above the $3 million threshold; the Barefoot Bay Water and Sewer System has its own revenue  requirements; inflation  is an issue; and it has its own R&R issues.  He noted there is a

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

significant R&R issue with the sewer system; if the County does not do something at the water plant, it is going to need R&R there; and the Barefoot Bay Wastewater Treatment Plant is actually two facilities.

 

Mr. Martens stated the Barefoot Bay Wastewater R&R included a 1969 plant clarifier drive failure, sewer gas corrosion, plate thickness and welded joint failures clarifier drive assembly replacement; Boyle Engineering advised that the clarifier shell and the outer ring steel wall are corroded so badly that no repairs could be made structurally sound; and the preliminary replacement estimate would be a $3 million commercial financing.  He advised the Barefoot Bay Water Plant was originally built in 1968; equipment R&R within five years include lime silo, slaker and contactor; filters, piping, and valves; high pressure pumps, ground storage tank, and yard piping configuration; and $1.5 million is the budget estimate for commercial financing.  He stated without the R&R items, the County would need approximately 4% to meet the Barefoot Bay bond covenants; with the wastewater plant replacement and putting $1.5 million in 2010, Barefoot Bay as a stand alone would need a 10%, 7% increase, and indexing at 3%; if the County waited until 2011, the 10% and 7% would change a little bit; and that is the existing system with Barefoot Bay for both Enterprise Funds if the County does nothing right now.  He stated the County has been talking for a couple of years about the possibility of having a new County water service area in the south end of the County; the existing water plant is fully committed; FDEP may limit non-Barefoot Bay connections; the old plant now has marginal water quality; and the issue is color.

 

Mr. Martens advised regarding the South County Water Service Area, new capacity may be required even without growth; most of the customers in Barefoot Bay are in a retirement community; retirees have a lower occupancy rate; there is seasonal occupancy, and retirees use less water.  He stated there is no age restriction on the Barefoot Bay community; that community is transitioning from retirement to affordable family housing; they have higher occupancy rates; and they are here all year round.  He advised the Barefoot Bay peak day is 150 gallons a day per unit water consumption; the North Brevard system is 450 gallons a day per unit water consumption; a couple of years ago he advised the Board it needed to be thinking about providing some extra capacity; and the Board originally talked about building a County water treatment plant in or near Barefoot Bay and creating a County water service area for the new growth development, and wholesaling water from the new plant to Barefoot Bay, so the County would have a Barefoot Bay system and then a County system down there.  He stated a second option that has many more benefits would be to go ahead today or as part of this process, and to consolidate the Barefoot Bay system into the Countywide system, and make it one system; and there could then be one plant, and one service area.  Mr. Martens advised of the potential new water service area in Barefoot Bay and South Brevard County; the new South County water plant represents about 2,400 additional residential units based on the Comprehensive Plan, not counting the U.S. 1 corridor; the Barefoot Bay customer base is too small to fund water plant expansion; and a new water plant would provide a long-term secure water supply.  He stated the preliminary cost estimate is $25 million; there is some flexibility in that number, probably on the down side; and it requires a revenue bond sale.  He stated the BBWSD is too small to get good bond ratings; adding Barefoot Bay would increase the funding base of the County system by 12%, and would increase the customer base of the County system  by  9%; Barefoot  Bay Water  and  Wastewater provides services beyond Barefoot Bay,

 

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

including Snug Harbor, Crystal Bay, U.S. 1 frontage, and Micco Road; and it facilities funding of problem resolution regardless of the geographical area.

 

Mr. Martens stated he believes the County needs to increase rates; if it is not going to, then it has some significant issues to address with the utility system and meeting the budget for next year; the County needs to have a balanced budget for next year; he is going to request today that the Board establish a date to have a public hearing to advertise a rate increase; and staff has yet to determine what that rate increase would be, whether it is a one-year increase, a multi-year increase, or no increase.  He noted staff needs about five weeks to do the individual notifications; it is required to notice the hearing on the individual water and sewer bills; the Board and staff need to talk about which date to do that; September 9, 2008 is the first budget hearing; and staff has some draft wording of what the County might put on those bills. 

 

Rob Ori, Public Resources Management Group, stated he prepared a Revenue Sufficiency Study for Brevard County; the study focus was to develop a Capital Funding Plan, analyze system consolidation, evaluate rate sufficiency—cash flow and rate covenant compliance, and recommend proposed rate adjustments; the objective was to develop a Financial Plan, which fully funds capital needs, allows the ability to issue bonds, promotes credit worthiness/fiscal position of the system, and maintains competitive rate position; and the County’s water and sewer system is an Enterprise Fund.  He advised the Governmental Accounting Standards Board basically says counties account for operations similar to private business and costs are financed primarily through user charges; users are responsible for costs and the system must stand on its own; the County is currently using reserves to fund its capital needs; and with respect to Rating Agency considerations, if the County goes to the bond market, it wants a strong credit.  He stated the Agency considers maintenance of the system (no deferred maintenance); capital (pay-as-you-go vs. debt relationships); maintenance of reserves – operating cash/capital funds/overall liquidity; coverage and financial performance; and proactive planning (management).  Mr. Ori advised the County’s rates need to fund net revenue requirements; the net revenue requirements are defined as cost of operation and maintenance, debt service, capital funded from operations (R&R, equipment, etc.), PILT (Payment in Lieu of Taxes), working capital (60 days cash reserve), other operating revenue, interest income, and connection fees used to pay debt service; the County must comply with rate covenants of the Bond Resolution; and the key is financial viability.  He stated the primary rate drivers include cash flow and rate compliance with the County’s Bond Resolution and financial targets; cash flow includes operating expenses, debt payments, pay-as-you-go (PAYGO), and maintaining operating reserves, etc.; and rate compliance deals more with debt service coverage and debt relationships.

 

Mr. Ori advised the County’s operating expenses account about 64% of its revenue requirements; the operating margin is declining; it is defined as the gross revenue less operating expenses; it represents available revenue for other system purpose; the system revenue growth is 1%; and the operating expense growth is 5%.  He stated the operating margin is declining; and it recognizes the need for an annual price index adjustment; in terms of the County’s Capital Program, there is about $93 million over the next five years identified in the Capital Plan that the County is trying to fund; it includes the Barefoot Bay system; and the Mims Water Plant Expansion is a $12 million facility, which has been pushed to 2013.

 

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

Mr. Ori advised there is a significant amount of renewals and replacement needs; R&R needs to be funded primarily through rates and operations, unless there is a very significant piece of R&R, like the rehabilitation of the wastewater plant in Barefoot Bay; and that would be something that is probably a good item to bond and finance in terms of the cost. 

 

*Commissioner Voltz’s absence was noted at this time.

 

He stated there is $21 million in the R&R Fund; that includes the $7 million to $8 million Mr. Martens talked about; on the funding of the CIP and the model, there is $63 million of proposed debt proceeds; and the major project would be the South County Water Treatment Plant.  He noted concerning the R&R Fund, the County is trying to have a dedicated R&R Fund transfer from rates; it is something that needs to be done; they recognize a beginning transfer of about $1.2 million, which is 5% of the revenues, and trying to increase it to about $2.6 million over the forecast period; and the utility needs more reliance on PAYGO capital funding versus debt funding.  He stated it is a very positive credit factor; it provides a dedicated source of funds; depreciation expense on existing assets of $240 million, a 50-year life, which is a 2% rate, is $4.8 million annually; Outstanding Debt Service includes Series 2002 Utility Revenue Refunding Bonds; the existing debt payments are almost $8 million; the Series 1999 (Barefoot Bay) Utility Revenue Bonds; and the existing debt payments are $1.1 million annually. 

 

Mr. Ori explained the existing and proposed debt payments, principal and interest; advised consolidation means bringing the Barefoot Bay and County Systems together as one; Barefoot Bay is a small utility in terms of size/revenue; and it is not a strong credit and stands on its own.

 

 

The meeting recessed at 3:50 p.m. and reconvened at 4:00 p.m.

 

 

Mr. Ori stated there are some significant near term capital improvements that need to be done to that system; they really depend on which scenario the Board may look at; Scenario 1 is to consolidate the systems financially, and build the Regional South County Water Treatment Plant; and Scenario 2 is no consolidation of the systems financially, build the Regional South County Water Treatment Plant, Barefoot Bay would then purchase capacity from the County system, and purchase bulk water from the County system.  He advised Scenario 3 is no consolidation of systems financially; Barefoot Bay would do all of its own rehabilitation projects as identified and some water projects in the CIP; if the County builds the Water Treatment Plant, it can expound on this; and regardless of which Scenario the Board picks, it needs to raise rates.  He recommended if the County wants to build the Plant, that it consider delaying the Plant maybe a year for the construction of it, so the County can push off the new debt so it can be wrapped around the existing debt for the benefit of the ratepayer; noted that way they do not get double debt service for several years, and the rates have to increase; and it can avoid the last rate increase, which is great.

 

Mr. Martens stated the concept that he and Mr. Ori have been discussing is instead of design in 2009, construction in 2010 and 2011; if the County simply pushed the construction from 2010 and  2011, to  2011 and  2012, that pushes that one year’s debt far enough to where it does not

 

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

have to finance that extra debt one year; the proposal they have been discussing, instead of an 11%, 8%, and 8% over three years, it actually would then go to an 11% and 8%; and the third year the County would drop back to just the inflation indexing. 

 

Mr. Ori advised the recommendations include consolidating the systems financially, immediate and long-term benefits, long-term water supply to Barefoot Bay and the Region, improved ability to fund capital, long-term rate relief, single system administrative benefits, and overall better credit system.

 

Commissioner Voltz stated she has said for years that she does not want to increase rates until they are 20% or whatever; and she would rather do it incrementally so the County does not have high rate increases.

 

Chairman Scarborough noted a notice would be sent to everybody who would be impacted; with Mr. Ori responding that is correct.

 

Mr. Martens advised if the County does not do something, it is going to be in default; a dollar is a dollar, whether it is on the revenue or the expense side; the County is a lean utility; if the Board tells him to take it out of the expense side, it is probably a 10% to 15% reduction in force; and staff can do that.  He stated staff will defer maintenance, and at some time in the future, the County will be like Tampa or anyone else and start getting in trouble; the County can meet the bond covenants; he has given the Board some numbers; and the minimum it needs for this year would be at 6%.  He noted it would make his world easier if the County did not have to talk about this every year and it could do 6% and 6% or something like that; in Barefoot Bay, to get the money to fix such Plant, the County may have to do two years down there; and he is talking about a 10% in Barefoot Bay at least for this year.  He stated the next level up in what the County does with its long-term financing, if it is not going to build a water plant in South County this year; but sometime, whether that is three years, five years or eight years, the County is going to need to meet the financial conditions that Mr. Ori has talked about here; and move out of the 1990’s barebones financing.  He advised the County could start moving incrementally in building its reserves now and transferring from its old financing method to the financing levels that it will need to get bonds at some time in the future, and it be a long-term transition of more than simply the inflationary index; or the final choice the County could go ahead and do the Water Plant now, and go to the bond market in the near future; it needs to put its financial house in order right now; and that, with a 2011 and 2012 construction schedule for that Water Plant could be done with an 8%, a two-year program of an 11%, and an 8% over both Countywide and Barefoot Bay.  Mr. Martens stated the County does not need to address the issue of indexing after that now; that is something that can come back, although a number of utilities have adopted some type of indexing; Palm Bay, every year, adopts that Public Service Commission’s index on water and wastewater rates; and Palm Bay is automatic. 

 

Mr. Martens stated if the Board is going to allow the County to increase rates, staff needs to schedule a public hearing to have the four or five weeks notice time for the hearing; and a big part of this is the issue of whether the County is going to do the Water Plant or not.

 

 

 

 

 

BUDGET PRESENTATION AND OVERVIEW (CONTINUED)

 

Chairman Scarborough stated it would be inappropriate for the Board to make that decision until it has heard from the citizens; otherwise, why send the notice to the people; Titusville essentially sent out a notice that the rates have increased; and then it came back and had the hearing afterwards.  He noted the public wanted to scream at the City Council; it was a terrible idea; to say that something is going to work in this environment is extremely premature; and the County can say it could proceed with putting numbers here and having a public hearing, but public hearings are getting very difficult in these issues.

 

Mr. Martens noted if the Board chooses today to say no it is not going to increase sewer rates, it does not need a public hearing. 

 

Chairman Scarborough stated all the County is saying is it will hear from the public.  Mr. Martens stated he understands that decision has to be made at a public hearing, and there is a very good reason for that.  Commissioner Voltz stated it is the County’s responsibility to be sure that the utilities are running correctly.  Chairman Scarborough stated all Commissioners should weigh in on this because it is going to be a very difficult thing to be involved in.

 

Commissioner Nelson stated he wants to look at more of the difference between the different segments of the County and what is the impact to folks who just have wastewater, and what is that impact to the rate; he wants to be able to tell his citizens that it could have been this, but because of consolidation, it was that; and that is going to be a tough one for him.

 

County Manager Peggy Busacca inquired if the Board desires staff to schedule the item on the July 29, 2008 agenda; with Chairman Scarborough responding affirmatively.

 

 

 

Upon motion and vote, the meeting adjourned at 4:45 p.m.

 

 

 

 

ATTEST:

                                                                       __________________________________

                                                                       TRUMAN SCARBOROUGH, CHAIRMAN

                                                                       BOARD OF COUNTY COMMISSIONERS

                                                                       BREVARD COUNTY, FLORIDA

_____________________

SCOTT ELLIS, CLERK

 

 

             (S E A L)