The Board of County Commissioners of Brevard County, Florida, met in special workshop session on September 17, 1996, at 1:40 p.m. in the Government Center Florida Room, Building C, 2725 Judge Fran Jamieson Way, Melbourne, Florida. Present were: Chairman Mark Cook, Commissioners Truman Scarborough, Randy O?Brien, Nancy Higgs, and Scott Ellis, County Manager Tom Jenkins, and County Attorney Scott Knox.

DISCUSSION, RE: SOLID WASTE DISPOSAL ALTERNATIVES

Solid Waste Management Director Richard Rabon advised the workshop is to review alternatives for disposal of waste; and Alternative (1) is haul to Chambers waste, Alternative (2) is develop the current site, and Alternative (3) is expand the Central Disposal Facility. He stated the Board directed staff and consultants to look at three alternatives and other things that were looked at in the past, selected Chambers as an alternative, directed staff to negotiate with them and come back to the Board with the best price, revisit the U.S. 192 3,000-acre site bought in 1991, and do what they could to max capacity at the Central Disposal Facility. He introduced Omar Smith with Post, Buckley, Schuh & Jernigan, Inc., David Miller with Public Financial Management Group, and David Dee with Landers and Parson.

David Dee, Landers and Parson, advised of his past experience with environmental permitting in Duval, St. Johns, and other counties; explained the effect on the solid waste disposal capacity with the three alternatives and the number of years added to the capacity; and the costs for each alternative; and stated the cheapest method is to remain at the Central Disposal Facility (CDF). He stated expansion of the CDF will not add capacity to the system; Chambers will add capacity; and the site on U.S. 192 will add capacity, but the issue is permitability. He advised they agreed on $21.84 per ton in negotiations and lowered the performance bond, but the transfer station was a problem in negotiations because of its poor condition. He stated the current trailers cannot carry the projected payload as they are over 20 years old, purchased in 1974 and rebuilt in 1986; and recommended replacing those with light aluminum trailers if the Board decides to go with Chambers which is the most cost effective way to go.

Omar Smith, Post, Buckley, Schuh & Jernigan, Inc., advised going with USA Waste can be implemented quickly and provide capacity for six years; the contract is a short term with a fixed fee, and the price is set for five years, with options to provide three more five-year extensions; and the disadvantage is the condition of the Melbourne Transfer Station. He stated the facility is over-worked, run down, and cannot get replacement parts; there is not enough room for truck traffic; and it would have to be replaced if the County hauls waste for long term. He stated if the County goes to Deseret, it would not need the Transfer Station, but if it goes with Chambers or the CDF, it will.

Commissioner Ellis inquired how many acres would be needed for the transfer station; with Mr. Smith responding the County is trying to get an option on approximately 20 acres next to the Station. Discussion ensued on building a new transfer station, size of the site, traffic problems, a transfer station in Palm Bay, disposal requirement for Class III waste, Sarno Road landfill projected to the DISCUSSION, RE:

year 2003, and hauling of construction and demolition waste to Cocoa. Mr. Smith advised if another site can be located for construction and demolition waste (C&D), it will extend the CDF for another eight years, and with Chambers proposal and private facility in the south, it could go to the year 2034.

David Miller, Public Financial Management Group, advised the operational annual inflation rate is 2.5%; and explained the process to get the performance of Chambers net worth value.

Current Site at U.S. 192

Mr. Rabon explained the proposed development capital costs for the site, operating costs for the facility, and total system cost.

Omar Smith advised they wanted the system to be self-supporting and have all the facilities for future capacity; and the project costs are $ 5.2 million for permitting design and legal challenge, $16 million for site development, including roads, fences, and mitigation, and $6 million for on-site facility, including leachate facility; and it will last 20 years or more. He explained a drawing of the property, depicting lined cells, C&D yard waste, scale house, 640 acres of jurisdictional wetlands, roads, and stormwater basement; and noted the disadvantage is a lengthy permitting period.

Commissioner Higgs inquired how fast the water would flow to the southeast; with Mr. Smith responding about one inch a day, and if anything moves off site, it will be 100 yards a year and one mile in 12 years.

David Dee advised the County has a tremendous asset and opportunity to have long-term resource for 50 years not only for Class I, but Class III waste as well. He stated Deseret Ranch has concerns, but they could be addressed with satisfaction; groundwater is an issue at every landfill site; and Environmental Protection Agency and Department of Environmental Protection have regulations to ensure there is none going beyond State and Federal requirements. He stated the County can preserve the master wetlands and buffer around them and still have substantial area for the facility; it can protect important habitat of endangered species and minimize impact, setting aside as much property as it can; and it can develop the site and satisfy concerns of environmental agencies.

Commissioner Ellis inquired if there are guarantees; with Mr. Dee responding no, but there are 63 large operations in the State which all dealt with public opinion on ground water, surface water and threatened and endangered species. Commissioner Ellis stated if Deseret is successful and the permit is denied, the County will have 3,000 acres with no buyer. Commissioner O?Brien stated the County only needs 300 acres for the landfill, and there must be 300 acres out of the 3,000 acres that are permittable.

Mr. Dee advised it is not risk free, but the site is big enough to give the County flexibility if it is approved; and there are going to be costly delays, but the reward will be significant and will outweigh the risks. Commissioner Ellis stated expansion of the CDF and hauling to Okeechobee is low risk.

Mr. Miller advised the U.S. 192 site will have larger capital costs over the useful life, but it will avoid hauling and transfer costs, and it will be less expensive to spend the capital than the incremental transfer and haul cost to send it out of county because at Deseret the County will own the capacity that will extend for many years.

Commissioner O?Brien inquired what costs will the County face with Chambers? plan; with Mr. Miller responding transfer and haul costs and a new transfer station. Commissioner Ellis stated if the County sold Deseret property, it would more than cover the costs and purchase of trailers. Mr. Smith advised the transfer station would cost about $6 million, hauling with capital equipment would be about $1.5 million per year, and disposal would run about $3.6 million.

The workshop recessed at 2:55 p.m. and reconvened at 3:10 p.m.

Discussion ensued on the cost per ton to haul waste, reducing C&D waste, disposal fees, what will happen when CDF is full, net present value, replacement of equipment, increase in operating costs, risks, permitting, population increase, abandoning Deseret property and selling it back to the Ranch, and splitting waste in South Brevard, with half going to Okeechobee and half to CDF, and look at options in Osceola and Seminole Counties.

Commissioner O?Brien advised it would be irresponsible not to invest in the permitting process for Deseret property. Commissioner Ellis stated the legal fees would be a sunk cost, but the land can be sold back and the cost recovered as of today. Commissioner Higgs stated the Board needs to make an informed decision on this half a billion dollar project. Commissioner Ellis stated one year capacity is worth $9 million.

Central Disposal Facility Expansion

Mr. Rabon advised the County purchased 328 acres around the Cocoa landfill in 1987; 120 acres are in cells and the rest for other uses, but it was not enough; and staff is still siting, but has not purchased sites down south. He stated in the year 2000 it may be out of space, and the rules will change with wetlands on site. He stated the County could move C&D off site and save the lined area; it could get 8 to 10 years at the CDF; but it would have to move that 40% of the waste stream. Mr. Rabon stated a hurricane can blow those plans; social changes may be needed; and the Ordinance would need to be amended and the rate structure changed to overcome the C&D costs.

Commissioner Scarborough expressed concern about people dumping on private properties; with Mr. Rabon responding that is why the County is a recipient of that waste. He noted everything has a cost, even the social cost.

Mr. Smith advised the CDF has 280 acres of landfill space; the site was purchased for future development; as part of the permit, there is preservation of wetlands, leaving 138 acres of expanded acreage; and all the waste is going to the cell area now. He stated they want to pull out Class III and leave Class I in the lined area, which would defer capital improvements and buy time to evaluate options. He stated the disadvantage would be using the capacity; with Sarno Landfill closing, there will be no more capacity; and in the year 2020, the assumption is the County will have to haul all waste out of the County.

Commissioner Scarborough inquired about the status of Class III waste; with Mr. Rabon responding there were individuals who expressed interest in private operations for C&D waste. Commissioner Scarborough inquired about expansion of Sarno C&D area; with Mr. Rabon responding they have not run the calculation to expand laterally because they were not sure it could be done, but there may be things they can do operationally, depending on the value.

Discussion continued on use of Deseret property in six to eight years requiring operation of the CDF for that period, site design permitting, costs, advantages and disadvantages of each alternative, increase of capacity by years, hauling Titusville waste to Seminole, 50-year life and $450 million value for use of Deseret property, permitting, and keeping options open.

Commissioner O?Brien inquired about the significance of the September date; with Assistant County Attorney Katherine Harasz responding the Board has an offer to purchase back the Deseret land at $8,250,000 plus interest of 6% per annum, or at the appraised value at the time of acquisition, but not less than $8,250,000; and the last day of the five years is in September, 1996. Commissioner O?Brien stated that is only if the Board wants to sell it and only if it will not use it.

Commissioner Ellis recommended selling Deseret property, building a new transfer station, advertise an RFP for CDF expansion, and explore options with other counties.

Discussion proceeded on Chambers proposal, hauling of material, impacts on cash flow, bond covenants, hauling to Okeechobee to extend life of CDF, removing C&D and providing some means of disposal in South County, extending options as long as possible, net present value, purchase of aluminum trailers, and hauling time.

Commissioner Higgs recommended staff lay out combinations, how the different scenarios play out, and the numbers for each. Commissioner Ellis stated he does not want any more background information, and the Board should make a decision.

Chairman Cook inquired if the Board wants to schedule it on the regular agenda or hold another workshop; with Commissioners Scarborough and O?Brien suggesting a workshop.

The Board instructed the Solid Waste Management Director to prepare a report on combinations such as Chambers and expansion of CDF, Deseret and expansion of CDF, splitting waste stream in South Brevard with half going to Okeechobee and half to the CDF, Chambers and C&D sites other than Deseret, but keep Deseret, litigation and permitting of Deseret, etc., how they will play out, and how the financial numbers will stack up for each scenario. The Board also instructed the County Manager to schedule a workshop at the end of a meeting in October if possible.

Upon motion and vote, the workshop adjourned at 4:50 p.m.

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

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