MINUTES OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS

BREVARD COUNTY, FLORIDA

 

 

September 10, 2008

 

 

 

The Board of County Commissioners of Brevard County, Florida, met in special session on September 10, 2008, at 5:30 p.m. in the Government Center Commission Room, Building C, 2725 Judge Fran Jamieson Way, Viera, Florida.  Present were:  Chairman Truman Scarborough, Commissioners Chuck Nelson, and Helen Voltz, and County Manager Peggy Busacca, and County Attorney Scott Knox.  Commissioner Mary Bolin and Commissioner Jackie Colon were absent. 

 

 

The Invocation was given by Commissioner Voltz.

 

 

Commissioner Nelson led the assembly in the Pledge of Allegiance.

 

 

 

County Manager Peggy Busacca advised that last evening the Board asked staff to find an additional date for a budget workshop, should it need to be continued from the September 18, 2008 date; and it has been verified with all five Commission Offices that September 19, 2008 at 9:00 a.m. is acceptable.

 

Motion by Commissioner Voltz, seconded by Commissioner Nelson, to approve scheduling an additional Budget Workshop on September 19, 2008, beginning at 9:00 a.m., if necessary.  Motion carried and ordered unanimously.

 

 

 

County Manager Peggy Busacca advised the there is an issue with the security company that is currently dealing with the Titusville Courthouse, and Deputy County Attorney Shannon Wilson will make a brief presentation.

 

Deputy County Attorney Shannon Wilson stated the County Attorney’s Office is asking for authority from the Board to issue a notice of termination under the contract with NCLN20, Inc., which is a contractor with the Board of County Commissioners; the company provides the security services at the different courthouses; under the conditions of the contract, the County can terminate with 30 days written notice; and staff is asking for authority to negotiate a mutual termination earlier if possible.  She noted there have been a series of issues with the contractor since the Contract was signed, effective from December 22, 2007 to December 22, 2008; since that time there have been several instances of the contractors employees not being paid, checks to the employees bouncing, and there is confirmation of the issues from one of the company officials.  She stated this afternoon she was in contact with the attorney representing NCLN20, Inc.; the attorney was made aware of what the County Attorney’s Office was requesting of the Board; the attorney inquired if there was an opportunity to keep the Contract open until December 22, 2008; and she advised the attorney at a minimum there would have to be some financial assurances of the company’s ability to continue to pay their employees. 

 

Chairman Scarborough inquired how the security company would be replaced; with Ms. Wilson responding the County Attorney’s Office is looking at two potential solutions; one is a short contract with another company, and there are discussions going on right now with the Sheriff’s Department.

 

Commissioner Voltz inquired if the employees who had their paychecks bounce ever got paid; with Ms. Wilson responding some employees are two to three weeks behind in getting paid; she was given assurances today that the employees would be getting paid, but there are also other financial issues; and there are other outstanding payments owed to other employees on other contracts including federal, State, and other County contracts. 

 

Ms. Busacca inquired if instead of the County paying the contractor for September, could it pay the employees directly to ensure they are compensated.  Ms. Wilson replied it would be a dangerous thing to do because there are issues of withholding for taxes and things of that nature that the County cannot take upon itself because the employees are not County employees. 

 

Motion by Commissioner Voltz, seconded by Commissioner Nelson, to authorize the County Attorney to issue a notice of termination, with 30 days written notice, of the Contract with NCLN20, Inc. that provides security services to the courthouses, contingent upon ensuring there is security in place with the termination.  Motion carried and ordered unanimously. 

 

 

 

County Attorney Scott Knox stated the Board directed him to look at the City of Cocoa water rate increase of 15 percent; and in the course of doing the research he came up with the handout he has given the Board.  He stated the first page shows the amount of taxes the City raised in fiscal years 2005 through 2008; the second pages shows the funds from the water account were transferred into the General Fund; and in fiscal years 2005 and 2006, the actual amount transferred from the water department into the General Fund was more than the taxes raised by the City of Cocoa.  He stated based on some of the numbers he has seen and some research he has done into the law of Florida as it pertains to utility rates, there may be an issue as to whether or not the rates the City of Cocoa is charging is too high, given the fact it had a surplus it was able to transfer into the General Fund; but in order to determine if the City has run afoul with any of the cases he has seen, the County would have to hire someone to examine the books to determine whether or not that is the case; and Rob Ori is already under contract with Mr. Martens who deals with these issues and he indicated he can do a quick review to give the Board a ballpark idea as to whether there is any kind of issue or not for under $5,000.  

 

*Commissioner Colon’s presence was noted.

 

Chairman Scarborough stated the Board needs to let people know that it impacts people from Port St. John, Viera, and Merritt Island; it is a large water system that is increasing its rate 15 percent while it has been moving more than $5 million into the General Revenue Fund from that operation; and essentially, half of the City’s budget is being subsidized by the water customers. 

 

Chairman Scarborough stated he would like for the residents of the City of Cocoa’s unincorporated water areas have an opportunity to comment on the issue.

 

Motion by Commissioner Voltz, seconded by Commissioner Nelson, to approve hiring Robert J. Ori with Public Resources Management Group, Inc. to furnish a quick review regarding the City of Cocoa’s recent 15 percent water rate increase for an amount not to exceed $5,000; and to contact the incorporated areas to include them in the discussions.  Motion carried and ordered unanimously.

 

 

 

Commissioner Voltz stated she would like to move the Healthcare Workshop to November 5, 2008. 

 

The Board reached consensus to change the date for the Community Health Issues Workshop from October 23, 2008 to November 5, 2008 beginning at 9:00 a.m.

 

 

 

Bill Altonaga expressed appreciation to the Board for its continued efforts to hear the residents’ concerns regarding the boat lot issue in the Crystal Lakes Subdivision in Melbourne Beach.  He stated the residents are aware that the County is obligated to work within the laws governing ordinances, zoning, et cetera; the residents acknowledge the County should not condone unlawful acts by residents and then grant variances to make them right; but that is not the case in Crystal Lakes.  He stated the residents of Crystal Lakes are hard working, law abiding, tax paying citizens who relied on the County’s website for research of the buyability of a property before purchasing it, and later finding out it was wrongfully characterized; and there are residents of Crystal Lakes who bought properties with boat docks that have existed for more than 18 years and are now being asked to remove them.  He advised there are issues instigating residential battles based on greed to level property values against each other; residents are being deprived privileges that have been granted to others to use the waterway; but the residents are not asking the Board to set a precedent because it has already been set.  He noted one of the recommendations from Commissioner Voltz included the implementation of a CUP with specific elements that would satisfy the needs of the residents while conforming to County regulations and obligations; in the absence of a resolution the residents would be left with unusable property and loss of property value, notwithstanding, the residents will have to maintain the property, which will serve as a constant reminder of the injustice and inequity that exists; and the residents are asking that the issue be resolved once and for all by utilizing the wisdom and authority and resources made available to the Board.

 

Alan Harbach stated he purchased lakeside property in the Crystal Lakes Subdivision in April, 2008; there is a dock and boathouse on the property that has been there for 18 years; the previous owner guaranteed him there is nothing to worry about as the structure was grandfathered-in; and since then he has found out he is one anonymous complaint away from having to remove the entire structure and decrease his property value to little or nothing.  He stated he met with Commissioner Voltz and Zoning Manager Rick Enos regarding possible solutions  to the  problem; a  conditional use permit was recommended; and the residents agree with the conditions of the Conditional Use Permit and ask that the Board consider the conditional use permit and act to provide a solution to the complicated problem.

 

Chairman Scarborough stated the Board cannot ensure what an owner or realtor says, as they do not always tell the truth; there is protection under Florida Law that allows a buyer to file a lawsuit against the person; but the recourse is not before the Board of County Commissioners.  He stated he wants it on the record that he will not consider it because it creates a terribly dangerous precedent for the Board; and the Board cannot assure that every realtor and every seller is honest and straight forward because they are not; but that does not mean the Board is not going to try to help.

 

Maureen Gotay stated she bought her house with a dock six years ago and has been enjoying the use of the river; the dock has been there for over 21 years; and it is disheartening to get a letter from Code Enforcement saying she would need to tear down her boathouse.  She stated she referred back to the Title documents and every piece of paper indicated she is the owner of a dock and a home on Atlantic Drive.

 

Planning and Zoning Director Robin Sobrino stated the proposal would be to create a conditional use permit to allow docks in subdivisions such as Crystal Lakes; conditions being considered include that the property would not be eligible as a boat launching area, the property would only be used for the purposes of maintaining a watercraft in the water attached to the dock, limit the ownership of the dock site to the residents of the subdivision only, establish a minimum lot size requirement, a certain amount of width required for the parcel, not to allow boat trailers to be parked on the lot, requiring it must be in a platted subdivision, the conditional use permit would only be eligible for manmade canals and would not be eligible for docks on the Indian River Lagoon, and environmental considerations would be included to ensure there would be no environmental damages.

 

Commissioner Voltz stated she would like to add there can be no sale of a separate parcel; and in other words, the house and the lot will go together to ensure a dock cannot be sold by itself. Chairman Scarborough stated a person should also not be allowed to let others lease a dock.  Ms. Sobrino stated of the properties in Crystal Lakes approximately 18 were identified as being not compliant with current regulations and at least six of them would not be able to seek relief under the Conditional Use Permit as they reside outside the subdivision; and while there could be a restriction that the lot would have to go along with the house sale within the subdivision it would be difficult to enforce subsequent re-sales once the Conditional Use Permit is established and there is no required notification to the County.  Chairman Scarborough stated if that occurred, then the Conditional Use Permit is nullified; he does not like the idea of people outside the neighborhood accessing amenities in a neighborhood because it opens a Pandora’s Box. 

 

Assistant County Manager Mel Scott advised staff can prepare the ordinance, advertise it, and have it heard before the Local Planning Agency; in October, staff can bring it to the next night meeting as part of a zoning meeting in early November and the second reading could be during the day in late November.  Chairman Scarborough stated the last regular meeting for the current Commission is October 28, 2008; there is a zoning meeting on November 6, 2008; and inquired if the Board wants to have another meeting before the seating of the new Commission.   Chairman Scarborough inquired if the Board would like to have a meeting on November 11, 2008;  with Commissioner Voltz  responding  November 11^th is a holiday.  Ms. Busacca stated if she understands Mr. Scott, the earliest the Board could hold a meeting if the zoning meeting were the first meeting would be the 17^th of November.  Mr. Scott replied that is correct. 

 

Commissioner Nelson stated there are dock standards such as setbacks from the side lot lines; and inquired if Ms. Sobrino has looked to see what the impact would be, and if a conditional use permit is created, can someone build a dock based on it.  Ms. Sobrino stated a minimum lot size would be created, which would take into consideration the minimum setbacks; and the minimum setbacks from the side lot line are seven and a half feet, so at least 15 feet of the parcel would need to be allocated for setback purposes.  Commissioner Nelson inquired about residents on the Indian River who are in the same situation.  Ms. Sobrino replied a distinction would be if the Board is limiting the Conditional Use Permit to subdivision platted lots, there are many properties along the Indian River that are metes and bounds parcels; and under the limitations listed in the conditional use permit, they would not be eligible to apply.  Ms. Busacca inquired if one of the conditions could be that the structure had to exist as of this date, and then it would only apply to existing structures and no new structures.  Ms. Busacca stated there could be environmental concerns on the river, but staff can research that.  Commissioner Nelson stated he does not mind discussing the issue again, but he is hesitant to rush it; he has always been concerned about creating something in the Code that, in effect, legitimizes something that should not have been done; and there are a lot of things that have been done illegally.  Chairman Scarborough stated the current Commission has heard the different perspectives. 

 

Commissioner Colon stated the issue has been before the Board many times; she has always had a problem approving something and leaving a group that has been denied in the past out to dry; and the only way to help those people would be to completely allow those on the Indian River to be grandfathered-in; but the danger is the Board does not know what the impact would be on the environment.  She inquired if the Board is strictly looking at the subdivision today; with Ms. Sobrino responding yes, as that was the proposal.  Commissioner Colon inquired when the discussion occurs on the other people who have been before the Board and have been denied.  She stated she wants to move forward, but she is concerned for the people who are not here and have been denied in the past; and inquired if there would have to be a separate motion to start that discussion.  Ms. Sobrino replied it would be a different motion; the purpose of the discussion at this point was to establish whether the Board wants to limit it to subdivisions; one reason the subdivisions were selected was because there was a sense of community and neighborhood that the house is in the subdivision, and therefore that owner has to be a neighbor to everybody else, and it is hoped there would be a community neighborly self-monitoring to make sure that whatever activity is done on a dock lot would certainly work well with the neighborhood as opposed to having parcels of land that were not platted where someone may own a house in Merritt Island and have a riverfront parcel in Rockledge.  Commissioner Colon stated she is in favor of what the Board is doing today to an extent; she is just trying to figure out how to get the ball rolling for the second discussion of helping the other people; and the Board wants to help everybody, including those who have been denied in the past. 

 

Ms. Busacca advised staff has been directed to make sure the people who have previously come to the Board who have docks on the Indian River, be invited to the discussion; and when they get invited to the public hearing the Board will hear from them.  Commissioner Voltz stated Zoning Manager Rick Enos advised her the Board cannot grandfather-in something that is illegal.  Commissioner Colon stated that is what the Board is doing now. Commissioner Voltz stated the residents will have to come before the Board and request a Conditional Use Permit. 

 

Commissioner Nelson stated he believes it has to be the same discussion; the difference with the Carpenter family is that they were separated from their property by 300 feet, and that is probably similar to some others in which the homes are not far away;  those  people have metes and bounds versus a platted subdivision; and that happened a lot along the Cocoa shoreline and the Indian River.  He stated he does not think the Board can separate the discussion because it looks like the same thing, but there is only a slight difference in the two. 

 

Motion by Commissioner Voltz, seconded by Commissioner Nelson, to grant permission to advertise a public hearing to consider adoption of ordinance creating a Conditional Use Permit (CUP) allowing docks in subdivisions.  Motion carried and ordered unanimously.

 

 

Commissioner Nelson stated in the end he does not know if he will support it; but he wants staff to understand he will be looking for dealing with the issue of metes and bounds; and staff will want to figure some criteria that deals with that.  Chairman Scarborough stated staff can advertise broadly enough that if the Board decides to move to metes and bounds, it can without having to re-advertise.

 

 

Christopher Chinault stated there is a problem in Indialantic because the County’s sewer system does not function as well as it should; some residents have to deal with sewage in the street, yards, in homes, and in the Indian River; and that is a concern.  He noted the residents think the problem can be fixed, but it takes some looking ahead on the part of the Board; the pipes need to be slip-lined; and to do that there would need to be revenue, and whether it comes from rates, fees, or charges, there needs to be an aggressive program so that staff can move forward to make sure the pipes are slip-lined.  He stated with sewer systems he believes government has an obligation to run it in a way that protects the public so that people in Indialantic do not have a problem with sewage in their yards and homes; and anything the Board can do to assist the residents would be greatly appreciated. 

 

Dick Martens, Utility Services Director, stated he has proposed a first increment of a five-year program that continues the operation of the utility and starts funding for a five-year program that includes a lot of renewal and replacement of equipment and the leaky sewer lines that caused problems a few weeks ago; approximately three percent is for inflationary purposes and will average approximately $1.00 per-month to the customers; and the second three percent would go to partially fund the renewal and replacement programs, and it will be approximately $1.00 per month.  Chairman Scarborough inquired if six percent is what was advertised; with Mr. Martens responding yes, it was advertised in the Florida TODAY.  Chairman Scarborough stated he recalls a less than unanimous vote on the issue; and Commissioner Bolin has advised him the Board could continue the discussion to include her vote. 

 

Commissioner Voltz inquired if the item was advertised in the newspaper at six percent; with Mr. Martens responding it was advertised at six percent as directed by the Board, and included on each of the customers’ water and sewer bills in the last month.

 

Chairman Scarborough stated the Board can approve no increase, or anything up to six percent, but it cannot approve anything over six percent. 

 

Commissioner Nelson stated it has been discovered that there are some significant issues that need to be dealt with in the sewer systems; and while this is not the fix, the Board would be remiss in not moving forward.

 

Motion by Commissioner Nelson, seconded by Commissioner Colon, to adopt Resolution adopting sewer rates, fees, and charges for water, sewer, and reclaimed water, including systems located in South Beaches, Merritt Island, North Brevard, Port St. John, and South Central Services Area. 

 

 

Commissioner Voltz stated 37 percent of the rates will be in the South Beaches, which then pays the majority of all of the fixes for the rest of the County; with having the six percent, and then 37 percent, it means that most of her District is paying the majority of everybody else’s District.  Mr. Martens advised Page 3 in the PowerPoint Presentation is not exactly the same as what Commissioner Voltz has; Commissioner Voltz is referring to an email that he sent her earlier in the week based on a request she had made for the distribution of customers throughout the system; and he copied the other commissioners on the email.  He stated Page 3 includes the Mims water customers and not the wastewater customers; but other than that the lists are very similar with the exception that the customers in Mims that had both water and sewer were counted twice because they are being provided two services and they pay two separate bills.  He stated there are 62,000 County accounts.  Chairman Scarborough stated the numbers for Suntree and Viera are shown as South Central and that is the only thing that is different; and inquired if Suntree and Viera are equivalent to the South Beaches; with Mr. Martens responding affirmatively.  Commissioner Voltz stated 37 percent of all the income is coming in from the South Beaches; those people are going to get a six percent increase meaning they are probably going to be paying for a majority of the rest; and Commissioner Bolin’s District is not too far behind. 

 

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

 

 

 

Victoria Rosso stated she lives in Barefoot Bay; and she understands Barefoot Bay is due for a ten percent increase in the water bill.  She inquired if it is ten percent on the water bill and ten percent on the sewer bill; stated in her estimation since she has been in the area from Port St. Lucie, she is paying the highest water bill she has ever paid in her life; and people in Barefoot Bay are on fixed incomes, those who do not have an income, and those who work three and four jobs in order to stay in Barefoot Bay.  She stated when she first moved to Barefoot Bay she knew there was an issue of connecting Snug Harbor to Barefoot Bay’s water system and people opposed that, but eventually everybody agreed; and now there are two communities hooked up to the Barefoot Bay water system.  She stated she does not want to pay ten percent additional on her water bill; a lot of people cannot afford it; and there needs to be clarification on if it is ten percent for water and ten percent for sewer. 

 

Dick Martens, Utility Services Director, advised it is ten percent on both the water and sewer; like the Countywide system, the Barefoot Bay system runs at very minimal coverages, and it barely pays the County’s bills; the Barefoot Bay sewer system has a 40-year old package plant that is part of its treatment plant system that has reached the end of its life and there is a jeopardy of structural failure.  He stated other than a need for an inflationary increase just to pay the routine bills with inflation, it is going to take another six percent rate increase to fix that broken sewer plant; the County will need to borrow as much as $3 million; and if it is financed over 20 years it would be approximately a $240,000 loan payment that will have to be made every year, which is about six percent of the rates.  He stated for simplicity sake, since all Barefoot Bay water customers are also Barefoot Bay sewer customers, staff took the ten percent and added it to both; to the average customer it averages out to approximately $5.55 per month total on top of the bill.

 

Ms. Rosso stated she is paying the highest water bill she has ever paid; she moved to Barefoot Bay in 2002 and she did not know the water system was 40 years old and in bad shape; and that is her fault because it is buyer-beware; but she did not think about it at the time.  She stated she did not think about the people in Barefoot Bay that do not have the extra money; and she knows it has to be modernized and Barefoot Bay needs better water; but she is against the fact that there is a new development with 553 homes that will be connected and putting a lot more pressure on an antiquated water system as it is.  She stated she works three jobs, so as long as she is able to, she can remain in Barefoot Bay, but there are a lot of people who cannot.

 

Commissioner Colon inquired of the amount Ms. Rosso is currently paying; with Ms. Rosso responding she lives by herself and her average water bill is between $47 and $52 per month.  She stated she would like the Board to appreciate where other people are coming from; and she is speaking for herself and not on the behalf of anyone else. 

 

Chairman Scarborough stated a consultant came in with larger numbers for the increase; but the Board felt that because of the whole movement in trying to keep things low it would be inappropriate for the Board to try to cut taxes and at the same time increase utility rates; and this is what Mr. Martens said was the bare minimum.  He stated the Board has the capacity to go below 10 percent, but Mr. Martens warned that if the Board does that it begins to take risks with the viability of the system; and inquired what Mr. Martens originally suggested.  Mr. Martens stated the no consolidation, no water plant number to bring the utility out.  Chairman Scarborough stated he wants Ms. Rosso to understand the Board discussed much larger increases several times, and the Board rejected them for the very reasons Ms. Rosso is giving the Board.  Mr. Martens advised 14 percent, seven percent, and seven percent, was the consultant’s recommendation and the minimum that could be done was the ten percent; and that number is based on the County engineer’s estimate of what it is going to cost to fix the plant, but there is not yet a bid, and staff still has to go to the market.  He stated a year from now, Utility Services will be back before the Board and will have another set of numbers; and he has a long history with the County of not raising rates if it does not need to be done.  He stated if next year the number turns out to have more in it than was needed, then there will not be the corresponding rate next year.

 

Ms. Rosso stated the increase is inclusive of Snug Harbor and Barefoot Bay; and inquired if the increase will be inclusive of the new development.  She stated she knows the new development has annexed to the  Town of Grant-Valkaria, which is solely well  and  septic;  and inquired  who will be paying the water bill.  Mr. Martens replied it is an enterprise fund system, which means that all the users of the system pay all the expenses of the system; there is no tax revenue, but it also means all the users pay a uniform rate structure, and everyone who connects to the system pays the same rates; and the new development, Snug Harbor, Snug Harbor Lakes, and Barefoot Bay will all pay the same rates.

 

Commissioner Voltz stated there is not the water capacity for all 500 homes in the new development.  Mr. Martens stated the capacity of the water plant is another issue; there is some question as to how much the new development may be allowed to connect; and there is a water capacity problem that will be decided by the State.  Commissioner Voltz inquired of the number for the Countywide system.  Mr. Martens replied if the Board did the Countywide, the final number to consolidate, build a water plant, delay the construction of the water plant for one year to try to wrap around the County debt better, was a three-year program of 11 percent, eight percent, and three percent; and that would have been the same for the County and Barefoot Bay.   He stated the average bill in Barefoot Bay is $50 and with the ten percent increase it would go to $55; and everybody who connects to the new system will pay impact fees as well.

Commissioner Voltz advised her water bill in the City of Melbourne is approximately $55 per month, but that includes reuse water, water and sewer, and garbage pick-up.

 

Clifton McClelland stated he is representing Crystal Bay, which is a development of approximately 550 units; the initial development approval started before it was incorporated into the Barefoot Bay service area; and Crystal Bay deserves equal treatment with the other customers.  He stated the project is going to be around for a long period of time; Crystal Bay is a long-term customer and he would like to discuss with the Board some of the public policy issues that pertain to Barefoot Bay.  He stated he would like to talk about the history of the County utility system and some of the decisions the Board is making; Brevard County got into the utility system because of the horrible situation that existed on Merritt Island; water and sewer are vital public services; and as representatives of the public, the Board wants the public water it can get because people use it for bathing, and drinking.  He noted the same is true with sanitary sewer because human waste has the ability to cause some of the most awful diseases that man is exposed to; in the 1960’s and 1970’s there were terrible problems on Merritt Island; and there were private utilities that were not complying with treatment standards or the regulations that existed at the time.  He noted there were situations of raw sewage going into the Indian River Lagoon and there were also situation in which there was raw sewage on the ground; the County Commission, during the late 1960’s and early 1970’s began to litigate against the sewage plants and were using General Fund monies to try to force the plants on Merritt Island to comply; and ultimately, the Board’s predecessors made a decision that the only way to solve the problem was to go into the public utility business, and it started buying the plants on Merritt Island.  He stated the Board then bought the other plants in the County, which were all in terrible shape; one of the things the County recognized at that time is that one part of the system had to help the other part of the system because the only good part of the system was the system in the South Beaches that the County built new.  He advised a second series of situations had begun to occur; part of the system had to be deep well, and those were very expensive propositions to put the deep wells in the ground; and as he recalls it was approximately $1 million per deep well.  He stated the citizens are better because the County is in the utility business; there are occasional discharges into the Indian River, but the water has been cleaned up tremendously.  He stated there was also an economic incentive which was the more customers there were to the system, the more the County could go to the bond market and get lower rates, therefore, the customers paid less as the system was expanded.  He stated it is his understanding the Board has decided in the last several weeks not to consolidate the Barefoot Bay system and also not to go forward with the water plant for Barefoot Bay in terms of the immediate term; and his client does not think those are good public policy decisions.  He stated there is a distinct advantage for the County’s system to have as many customers as possible; when the Board isolates out the Barefoot Bay customers from the general utility customers, the Board does not have a strong bonding capacity; and there are a lot of customers in Barefoot Bay and a lot of customers in potential growth.  He stated the Board is getting to where it is segregating certain parts of the system, and if that had been done in the past, he can imagine how the deep well would have cost the residents of Merritt Island or the South Beaches; and from a public policy standpoint it is bad for the Board to segregate the systems.  He advised the way to make money in utilities is the water system; the City of Cocoa supports the whole City on its water system; the biggest opportunity that the customers of Brevard County Utility System have is probably either the expansion of the Mims plant, or the potential expansion of the subject system in Barefoot Bay; and the County can use the revenues from the water system to basically reduce the cost for the overall sewer system.  He noted he thinks from a public policy standpoint it is not prudent for the Board to basically back off the expansion of the water system; and while the Board may have to increase rates, it is existing on a bare-bones budget.  He advised from a long-term public policy viewpoint, his client suggests the Board consolidate the systems as it will be advantageous for the overall rate payers in Brevard County; and the Board should get involved in providing water so that it can reduce everyone else’s rates, and it can be done over the long-term.

 

Alida Hirschfeld stated she has been to many Board of County Commissioners Workshops, and she appreciates the Board’s efforts in evaluating, discussing and dissecting the County’s Fire Tax Assessment.  She stated everyone needs water and sewer and it is very important to everyone to have good water; she understands the County and its needs to repair the facility, but what about the profit and expansion.  She stated if the Board consolidates all the plants there is one CEO, or department director; if the Board consolidates all the plants it would be able to buy its needs at a lesser cost because of volume; and if the Board consolidates, its employees would be able to go from one plant to another as needed.  She noted utilities is a big and very profitable business; expansion is always good and generates more impact fees in new clients; inquired if the Board is not willing to consolidate, how is it going to address the future needs; and inquired if it is easier for everyone to share the burden and profit than to always stand alone.  She stated another possible solution is if the Board is not going to consolidate, it needs to change Barefoot Bay’s base rate volume from 3,000 gallons to 5,000 gallons per month; there would be an increased revenue of ten percent, but the citizens would have increased usage at the same rate; and the residents do not want an increase, but it is impossible not to.  She stated she would like the Board to consider consolidating its water plants, or at least raise the minimum usage up to 5,000 gallons.

 

Commissioner Voltz stated she is not going to support a ten percent increase without a new water system.  Ms. Hirschfeld stated she knows eventually the utility is going to be expanded; and she would like to know if it is going to be at her expense.  Chairman Scarborough stated she as a user will be bearing some of the expense.  Ms. Hirschfeld stated she understands that, but inquired if Barefoot Bay will be bearing the majority of the expense. 

 

Chairman Scarborough inquired where the County’s profit is; with Mr. Martens responding the County does not make a profit.  He advised water companies and water systems might make some extra money, but sewer systems have historically been money losers; and that is why there were problems with them in the past.  Chairman Scarborough inquired what happens with the profit from the water system; with Mr. Martens responding there is no profit.  Chairman Scarborough stated there are enterprise funds.  Mr. Martens stated the County sets the rates sufficient to pay the bills; bonds require the County to generate a little bit of extra money; that extra money stays in the utility, and it is not nearly enough to pay for the renovations.  Chairman Scarborough stated the City of Cocoa had $5 million moved from the water system into the General Fund; and he can guarantee the General Fund in Brevard County gets zero dollars from its utility. 

 

Mr. Martens stated the County has two separate enterprise funds and there are two streams of revenue that go from the utility fund into the General Fund; one set of revenues is for direct services, such as the rent on the building and the computer network; and the County pays a portion of indirect charges, such as personnel.  Chairman Scarborough stated the County is actually buying something, but it is not defining something as a profit.  Ms. Hirshfeld stated the citizens are already paying for the salaries of personnel through taxes.  Chairman Scarborough stated each department buys services from the General Fund; those overall service departments are charging the users of that; and it is part of what is called fund accounting.  Ms. Hirshfeld noted Barefoot Bay pays a portion, and Cocoa pays a portion.  Chairman Scarborough stated Cocoa’s water system serves 20 percent of the City of Cocoa, and 80 percent outside the City; the City of Cocoa has a profit and $5 million it put into its General Revenue Fund; and of that $5 million, $4 million of it came from people living outside of they City limits, but it goes into the base operation of that particular city.  He stated all the County does is pay for particular services when they are rendered.  Ms. Hirshfeld stated if the County consolidates not with Cocoa, but with the other water facilities, there would not be a need for all the different personnel.  Chairman Scarborough inquired if Mr. Martens would be able to reduce the number of personnel if the County consolidates; with Mr. Martens responding no, as the County now operates the Barefoot Bay system from a functional perspective as if it were consolidated.  Mr. Martens advised all 13 employees in Barefoot Bay are employees of the County Commission; and Utility Services provides the daily operation and maintenance services to Barefoot Bay under contract; and the County already is realizing the benefits of consolidation through the fact that all the needs and expenses is coordinated through the Utility Services Department.  Ms. Hirshfeld stated if the County consolidated a new sewer system would be spread out to everybody; currently the burden is being placed on 5,000 homes.  Mr. Martens stated there are two separate systems; and although one system is much bigger, it has very similar needs; and if it had a major renovation or repair like Barefoot Bay did, they might have that higher rate.  He advised the reason Barefoot Bay has the higher proposed increase is because the system is a significant renovation need.  Ms. Hirshfeld stated it is still a County facility.  Mr. Martens stated it is technically a separate ownership, which is the Barefoot Bay Water and Sewer District and is a dependent entity of the County Commission.  He stated the rate increase being considered is not an action of the Board of County Commissioners, but a consideration of the Barefoot Bay Water and Sewer District.  Chairman Scarborough stated he has a feeling the consolidation issue may come back to the Board, but for now it is discussing a rate, and that is all the Board can vote on this evening.  Ms. Hirshfeld stated her biggest fear is what is going to happen in two or three years down the road when the water facility plant is not going to be sufficient enough and a new water and sewer treatment plant will  need to be built; and inquired if the same 5,500 homes are going to be responsible for that.  Chairman Scarborough stated it is an extremely volatile climate to talk about major things; he did not think this was the year to push multiple numbers; for the moment the decision is if people want ten percent or less; and that is all he can vote on this evening.  Ms. Hirshfeld stated she would like to see less.  Chairman Scarborough stated by saying she wants something less, makes it more difficult to accomplish the other purpose. 

 

Commissioner Nelson stated at one point the City of Cocoa was charging a different rate for unincorporated versus City; and inquired if that was struck, or if it is still doing that.  Mr. Martens replied the City of Cocoa still charges a ten percent surcharge outside the City.  Commissioner Nelson stated theoretically, the $5 million Mr. Martens mentioned is 100 percent from the unincorporated area because it is paying that ten percent surcharge to get water from the City of Cocoa. 

 

Commissioner Nelson stated there is a tradition in the County government, such as when a road is not up to standard, it is brought up to standard and it comes into the system; and the water system is something the County bought that had deficiencies and problems that needs fixed or brought up to the same standard; and at that point, the incorporation for all would probably make sense.  Commissioner Voltz stated that was not done on the other water systems the County purchased.  She stated it would be unfair to the people of Barefoot Bay to say the new water and sewer system is on their backs.  Commissioner Nelson stated there are seniors on Merritt Island, too.  Commissioner Voltz stated she does not think Commissioner Nelson sees that is the way things normally happen. 

 

Motion by Commissioner Nelson, seconded by Commissioner Scarborough, acting as the Governing Body of the Barefoot Bay Water and Sewer District, to adopt a Resolution amending Resolution No. 07-001, for rates, fees, and charges within the Barefoot Bay Utility System.  Motion carried and ordered; Commissioner Voltz voted nay.  (See page

for Resolution No. 08-002.)

 

 

Motion by Commissioner Nelson, seconded by Commissioner Colon, acting as the Governing Body of the Barefoot Bay Water and Sewer District, to adopt Resolution adopting a Budget for Fiscal Year 2008-2009.  Motion carried and ordered; Commissioner Voltz voted nay. 

 

 

 

 

Upon motion and vote, the meeting was adjourned at 7:24 p.m.

 

 

 

 

 

                                                                        _________________________________

TRUMAN SCARBOROUGH, CHAIRMAN

                                                                        BOARD OF COUNTY COMMISSIONERS

ATTEST:                                                         BREVARD COUNTY, FLORIDA

 

 

 

_____________________

SCOTT ELLIS, CLERK

   

          (S E A L)