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BCC Minutes 05/30/1989 R Naples, Florida, May 30, 1989 LET IT BE REMEMBERED, that the Board of County Commissioners in and for the County of Collier, and also acting as the Board of Zoning Appeals and as the governing board(s) of such special districts as have been created according to law and having conducted business herein, met on this date at 9:00 A.M. in RlGULAR BESSIOK in BUilding "F" of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Burt L. Saunders VICE-CHAIRMAN: Max A. Hasse, :Jr. Richard S. Shanahan Michael :J. Volpe Anne Goodnight ALSO PRESENT: James C. Giles, Clerk; John Yonkosky, Finance Director; Ellie Hoffman, Annaliese Kraft and Maureen Kenyon, Deputy Clerks; Neil Dorrill, County Manager; Ron McLemore, Assistant County Manager; Brian Mackenzie, Assistant to the County Manager; Ken Cuyler, County Attorney; Brenda Wilson, Assistant County Attorney; Kevin O'Donnell, Public Services Administrator; George Archibald, Transpor- tation Services Administrator; Frank Brutt, Community Development Administrator; :James Reardon, Emergency Services Administrator; Mike Arnold, Utilities Administrator; Wi11iam Lorenz, Environmental Services Administrator; Michael McNees, Utilities Finance Director; Hancy Israelson, Administrative Assistant to the Board; and Deputy Sam Bass, Sheriff's Office. / Page 1 ._----".,- MAY 30, 1989 'f1lp8.1 It_" A~ A.WD COaPT MUD" - APPROVED WITH CB.AJfGU Co88i..ion.r Sh8nahan aov.d, ..cond.d by Co..l..loner Baa.. and carried unani80U81y, that the agenda and conaent &g8nda be approved with the following change.: 1. Item 9H3 - Recommendation to approve for recording the final plat of the "Vineyards Unit 3" - Continued to 6/6/89. 2. Item 9H4 - Direction from the Board of County Commissioners relative to financing of the North Naples Roadway MSTU Project - Added 3. Item 12B - Discussion regarding Collier County helping the Pocket of Poverty recipients with impact fees. Request by :Jerry Bosworth. Immokalee Non-Profit Organization - To be heard upon arrlval of Mr. Bosworth. It- .. MIIUTKs OJ' MAY st, an MDTIRO - APPROVED AS PUSIJIn]) CO8aJ..ioner Sha~.ban 8OV8d, ..cond.d by Co..J..Joner Baa.. and carried unanJ80U8ly, that the .inut.. of the May St, au , ...t1ng be appl'OV8d .. pr...nted. It- .8A ~ SDVICK AllARD - PRZSD'nD TO SHARON tœHMAN Commissioner Saunders recognized Sharon Newman, of Utilities, for five years of continuous service with Collier County Government. He presented her with a certificate and a pin. It- .sa PltOCLAlCATIOK DUIORAnKO TO IOU: OJ' .ron 4 - 10, au AS -SAn: JOA'fIJrcJ BU- - ADOPnD Upon reading of the proclamation, Co..i..10ner Volpe aoved, 88C0Dded by Co..1..10ner B.... and carried unanJaoualy, that the proclaaatJon de.ignating the week of :Jun. 4 - 20, lStISt .. -Saf. Bo8ting Weak- be adopted. Commissioner Volpe presented the proclamation to B111 Robertson, U.S. Coast Guard Commander of Flotilla 9~, Marco Island, and Robert Mason, Boating Safety Chairman for Naples Power Squadron. 1 Page 2 ~.,.,. .......- -"--- .. MAY 30, 1989 It- ftA TO 08TAIJI APPJtOvAL raR TO COUJITY TO DnR IJfTO COJfTRAC'l'S WITH rMMOKALZz ROR-PROJ'IT BO08IRO, IRC., COLLID COtnnT CORCKMau CITIZUS, IRC., J'OJt BOPDlOOD, AJfD COLLID COtnnT COBCDnD CITIZUS, IRC., raft IJrJ'ftASTftOCTOU TO DISBURSE POCaT 01' Pavon I't7RDs - COJfTIJrOm) raft on WDI: Assistant County Attorney Wilson advised that Staff is in the pro- cess of working out the details of the contracts with the sponsors for the Pocket of Poverty Program. She indicated that the sponsors have recently retained Attorney Joseph Cox, noting that she has been meeting with him and they are fine tuning the contracts. She stated that she anticipates completion of the contracts by next week's meeting, and requested that this 1tem be cont1nued unt11 such time. Coaa1..1oner Bu.. aov.d, -conded by Co..1..ioner Bha'1-'1an and carried unani80U81y, that this 1t.. be continued tor one ---It. It- 12B ftKSOLOTIOR U-134, RI COLLIER COOJrTY BKLPIBO TO POCOT OJ' POVDn UCIPIDTS WITH IMPACT RES - ADOPTED AS AØBDKD Mr. Jerry Bosworth, Executive D1rector, Immokalee Non-Prof1t Housing, Inc., stated that the proposed resolution 1s 8ubm1tted on behalf of the four Pocket of PovertY$ponsors in Immokalee regard1ng affordable housing. He advised that the four sponsors, Coll1er County Concerned Cit1zens, Inc., Coll1er Co~nty Hous1ng Author1ty, Immokalee Hab1tat for Human1ty, Inc., and the Immokalee Non-Profit Hous1ng, Inc., are cooperat1ng together to do an effic1ent job, noting that there are 2,000 families living in substandard hous1ng. , Mr. Bosworth adv1sed that the requested act1on by the Board, is summarized in the last paragraph of the proposed resolution: "...that the Coll1er County Board of County Commissioners, in support of the Immokalee Pocket-of-Poverty Program, hereby agrees to grant to the aforementioned organizations such funds as will be required by those organizat1ons to pay 100' of the bUilding permit, roaâ, sewer, and water 1mpact and/or hook-up fees incurred by their Pocket-Of-Poverty Program projects." Mr. Bosworth reported that the adoption of this resolut1on 1s er Page 3 '-- -- .. MAY 30, 1989 urgent, noting that the Immokalee Non-Profit Housing, Inc., has to submit the requlred commitments to the State Department of Community Affairs this week, to preserve a $400,000 low Interest loan from the State for the Sanders Pines project. He advised that this project will provide 40 additional safe units durlng the next year for the working poor of Immokalee. He Indicated that if the $400,000 loan commitment from the State is lost, the current funding plan for Sanders Pines will come apart in its entlrety. In addltion, he noted that the $600,000 Pocket-of-Poverty Program grant wll1 also be lost. Mr. Bosworth stated that if the resolution is approved, he believes that the State can be persuaded to relnstate Its $400,000 loan commitment, and ar'angements can be made to begln construction for the Sanders Pines project this summer. Mr. Bosworth Indlcated that there are several reasons for the County to participate: the County Is the only unit of general purpose government serving Immokalee; only the County can raise funds on a talr ablllty to pay basls, and to approprlate the money required for deve- lopment of affordable houslng on the basis of need. He stated that the County has a responsibility to see to it that sufflcient affor- dable housing is developed to fulfll1 the commltment made In the Housing Element of the Growth Manag~ment Plan. He advised that other tlnanclal support has already been mobillzed for these projects, and the sponsors are now comlng to the County, lastly, 1.e., $600,000 from the Pocket-of-Poverty Grant, $750,000 in borrowings from the State, $~OO,OOO from private donations, $200,000 of professional servlces, and in-kind support. He stated that the contrlbution requested from the County Is approximately 6~ of the project total. In answer to Commlssioner Hasse, Mr. Bosworth reported that the value of impact fees that have been waived by the County are approxl- mately $22,000-$23,000 for thls project, and today's request will increase that amount by $77,000, for a total of $100,000. Commissioner Goodnight stated that when the Llbrary and Parks }O Page 4 .......... - MAY 30, 1989 I.pact Pees Ordlnances were passed, she interpreted the. to mean that the County would pay back the monies for those Impact fees Into that fund. She indicated that it was her understanding that the Affordable Houslng Task Force would be reviewing the impact fees, and then make recommendations to the Commission as to how the impact fees should be walved, or how the fees would be more appllcable to each of the Affordable Houslng projects. She indicated that there are two lssues to be consldered today: Impact fees for roads, parks, recreatlon, and bUilding fees; and water/sewer hook-up fees in Immokalee, noting that these tees cannot be waived, since this is not part of the County's system. She noted that If the Commission agrees to this, the County wl11 have to pay these ;ees to the Immokalee Water/Sewer Dlstrlct from the General Fund. She suggested the possibility of the Board con- 81derlng thls a County project, slnce it does not pay bul1dlng per- .it tees, or impact fees. Commlssloner Saunders stated that he feels that Commissloner Goodnlght's sUggestion is a good one, but noted that he does have some problems with the resolution, as it is presently worded. He noted that if this is approved by the Commission, he is suggestlng that the County Attorney redraft the resolutlon. Commlssioner Volpe noted that th~ resolution refers to 248 unlts whlch the four separate entitles are involved wlth the construction of, and questioned whether today's request is for 40 units or 248 units? Mr. Bosworth indicated that the request Is for 248 units, notlng that he is speaking on behalf of the four sponsors. He stated that he Is using hls project of 40 unlts as an example. He indicated that the $77,000 would be used to accommodate the Sanders Plnes pro- ject. Commissioner Shanahan stated that he understands the need for the money, but questioned whether there has been any major effort to try and obtain monies from the prlvate sector for the $77,000? Mr. Bosworth replied that there have been two years of tund raising 1/ Page ð ~ '---- - MAY 30, 1989 efforts to develop the private donatlons that have already occurred. He noted that he is comlng to the County as a last re80rt. Commissioner Hasse questioned the amount ot money which has been contributed by the public sector? Mr. Bosworth stated that the prl- vate sector is Contributing over $500,000 in prlvate donatlons, and $200,000 in the donation of professional servlces. Mr. CUft Blauvelt, Vlce Presldent, Colller County Concerned Cltlzens, Inc., stated that his organization holds tltle to 40 acres of land at Collier Vlllage in Immokalee. He noted that his organlzatlon's goal is for 150-155 11vlng unlts: 44 of which will be Habitat for Humanity homes, 30 Farm Workers Village rental, 60 United Church low income rental homes, and 24 units will be a Congregate Livlng Facility provided by the Collier County Concerned Citlzens, Inc. He reported that hls organizatlon Is unable to borrow money, since no lender will loan money for a project that will have resldents wlthout an income, adding that they were glven the land by Colller Communlties, have received architectural assistance to deslgn the home, and they have received various other glfts of In-kind value. He stated that a total of $300,000 has been ralsed, and $300,000 has been requested from Pocket-of-Poverty, whlch will be sufficient to construct the home. He Indicated that the proposed resolutlon wll1 allow hls organization to fully equip the kitchen of the faclllty, or to construct a small utility building for maintenance equlpment or storage. He indlcated that the resolution will cap the efforts to put the financing in place for the congregate facility. Mr. Fred Thomas, Executive Director, Collier County HoUsing Authority, stated that four groups will be building units on the 40 a"'res of land which was discussed "a:-':1er in the meeting. He advlsed that the prlme sponsor, Colller County Concerned Cltlzens, Inc., is proposlng to build a congregate tacl1ity. He noted that a Communlty Development Block Grant has been received for infrastrucutres, but the amount is not sufficient to complete the infrastructures. Therefore, It- Page 6 "" '.,..., -.. MAY 30, 1989 he indicated that the prime sponsor requested addltlonal funds from the Pocket Of Poverty to complete the infrastructure which wll1 allow Habitat for Humanity, Inc., to build 40 unlts, the Housing Authorlty 30 units, the Church of Christ 60 units, and then the 24 unlt Congregate Facility. Mr. Thomas Indlcated that the Immokalee Non-Profit Houslng, Inc. has a unique problem relatlng to timlng to protect their grant for the low interest loan for low income housing. He noted that the Housing Authorlty will not be asking to enjoy the beneflt of the impact fees relatlng to the Water Sewer Distrlct. He stated that he feels that It is appropriate, and It may help to set direction for the Affordable Housing Study Committee if the Board adopts the proposed resolutlon, JndJca"ng their NUlin~e.. to -Jve Jçect tee. .nd ~UdJng to.. 1 J for tho.. ~n.orø of attordabl. hou.'ng, ¡ Co..lssioner Shanahan questloned whether the Board could execute a program that would speak to the $78,000, which Is the Immedlate need to construct the 40 unlts, and protect the $2 million, changing the resolutlon as such, and address the other segments of the program as needed? Mr. Thomas stated that he does not want to speak for the other groups, but If the Collier County Concerned Citlzens, Inc. could be relieved of the Impact fees, they could bulld a far more comprehenslve facl1lty. In regard to the Housing Authority, he indicated that it will be difflcult if the impact fees for roads are not waived, adding that they can handle the impact fees for the water/sewer. He advlsed that the Habitat for Humanlty program is based sol&ly on donatlons, Þ~d their costs must be maintained at the minimum. He indicated that these are groups that are trylng to provide servlce to the communlty, and anything the Commission can do to lower thelr costs will be serlouslyappreciated. Commissioner Hasse questioned whether the residents of the 248 proposed units are full-time residents? Mr. Thomas advised that the /J Page 7 MAY 30, 1989 .. unlts for Habitat for Humanity will be home ownershlp unlts; the 80 unit. to be provlded by the Houslng Authority wl11 be tracked in the ...e manner as the present units, whereby about 6% of those people wl11 give their unlts up and move north for the summer. He Indlcated that he can not speak for the Immokalee Non-Profit Housing group or the Collier County Concerned Citlzens, Inc. Commissioner Volpe questioned how many unlts are needed to accom- modate the low income farm workers? Mr. Thomas replied that 3,000 units will be needed during the next 2-3 years. Commissloner Volpe questioned whether Staff has had the °ppor- tunity to review the proposed resolution and Its flnancial Impllca- tlons? County Manager D)rrl1l replied negatlvely. :, Mr. George Keller, President of Collier County Civic Pederation, stated that there Is problem wlth low income houslng In Colller County as well as In Iamokalee. He indlcated that he Is dlsturbed by the fact that 4,500 Haitlans have been Imported into Immokalee during the past two years, and questioned how far the County will go to support the housing issue? He added that the farmers should be providlng housing for their workers. ., Commissioner Goodnlght reported that the farmers in Collier County did not recruit these farmworkers, n~ting that they have been plaCed In Colller County by the Federal Government, and no federal dollars have been received for this. Mr. Dave Enting, Project Dlrector, Immokalee Habltat for Humanlty, Inc., stated that the issue today, is one of getting started in the sense of a partnership. He noted that this has been an overwhelmlng Issue for years, addlng that what is being proposed is an effectlve means to start th~ partnership process so that together, some day, the overwhelmlng problem can be resolved. He advlsed that Habltat for Humanity has been building homes for eleven years, and they are trylng their best in providing these homes, but they are In debt. He Indl- cated that he does not believe that anyone is looking to the County to Page 8 /1 ....." -,- .... .-----. -- MAY 30, 1989 foot the total bill, but the groups are asklng that the County Join wlth them in an effort to resolve the problem of the houslng issue. Commissioner Volpe stated that he has concerns since the County Is belng requested to become a partner with the various entitles, addlng that all discussion seems to be one sided. He noted that Staff has not reviewed the resolutlon, and he does not understand what the financial implications may be, whether It is $78,000 or $100,000, or in the area of $500,000 for the 248 units. He stated that he would lik~ to find a solution for what is out there, and what is avallable is not lost, but he is not convinced that he can endorse a resolutlon without knowlng the financial impllcations. In answer to Commissioner Hasse, County Manager Dorrl11 advlsed that the Affordable Housing Task Force will be appolnted later In today'. meetlng, and typlcally, It will take at least 60 days to get them organized and impaneled for their first meeting. Commissloner Shanahan indlcated that he has a conslderable concern about an open ended commitment, noting that he does have sympathy for the program. He stated that he Is Inclined to think in terms of the $78,000 that is immediately needed to protect the $1,~00,000, but he feels that the financial impact must also be looked at, and after a revlew, the course of action can be determlned. Commissloner Saunders stated that he agrees wlth Commissloner I Shanahan, adding that an open ended commitment would not be I appropriate. He suggested that the necessary in-klnd contributions be approved so that the revenues are protected tor the 40 units that are subject to the Pocket of Poverty Program, and that Staff should be directed to meet with the other sponsors to determine the circumstan- ces surroundlng the other 208 units to see what the impllcations are. He indlcated that ha would like to Ree the resolution worded so that the County is assisting in the funding of the 40 unlts. He noted that many of the "WHEREAS'S" tend to create an on-going obligation, and h. would like to see those eliminated. ,..- Page st /j "-"---- MAY 30, 1989 Co8ai..ioner Baundar. 8OV8d, ..cODded by Coaai..ioner Sha'tl-ha to 888Dd the resolution to be apacitic to the reque.t tor the funding tor the 40 unit.: Statt directed to evaluate the other 201 unit. tor the .... type of funding. Commissioner Volpe stated that he feels that Staff should identify where the funds will be coming from. He noted that It will b. very dlfflcult to distinguish between thls situation and any others that the Commission has heard presentations on. He stated that the various entities have been worklng very dlllgently to ralse funds from sourCes other than from the County, and they have only come to the County as a last resort. He suggested that as part of the commitment, these enti- ties should be encouraged to try and ralse the additional funds that will be necessary, and the County will be the backup. Commissloner Saunders stated that the sponsors that are here today, have been trylng for years to flnd solutions to houslng problems In the Immokalee area, noting that they are doing thls because they are publicly mlnded and publicly spirlted. He Indlcated that he feels that they understand that the Commission is a public Body and it cannot be handing out publlc funds, and in order to solve thls problem, they will have to continue the hard work that they have been doing, whlch is to raise publlc funds. Mr. Thomas advised that he has polled the groups that are named In the proposed resOlutlon, and the consensus is that if the Board can approve the waivers for Immokalee Non-Proflt Housing, Inc., and defer I I I all others until after the Affordable Housing Task Force makes their recommendation, they can live with this. Commissioner Hasse indicated that he concurs with Commissioner Volpe's suggestlon about the County being a back-up, notlng that he does not wish to sep movement on this, If It wll1 be at the taxpayers' of Colller County's expense. CO88J..ioner Saundar. "'nded hi. 8Otion to include an 8d41t1onal -"".a~- that the aponaor. of this project baa endeavored to obta1n Pag8 10 /t. """ . ,- NAY 30, lIU fuD41ng, 8D4 that the Coaai88ion encour&g8. tbo8e ettort. to obtain private contributiona to continue, and they will ".i.t in any way they can to obtain prlvate fundlng. Coaai..loner Bhaft_h~ accepted the - ..""'"-Int. County Manager DorrJl1 stated that he can see "here the Comm18810n as a Body may want to waive their own Impact fee8, but he 18 concerned about this government paying another government's Impact fees. CO88d..lonar Saunder."'n48d hi. aotlon that Statt be dir.cted to explore the poa.ibll1ty ot the opportunity for the IlIIIOal- Water Sewer Di8trict to waive or defer the cOnnactlon t_. tor this project. CO88J..iODer ShJu,-h-.n accepted the aaand8ent. Commlssioner Goodnight stated that she feels that it is thls Board's and Collier County's responslbillty to help the Pocket ot Poverty in any way they can. She indicated that there is only one other communlty in the State that has recelved the $1 mll1lon in Pocket of Poverty Funds, and that Is Belle Glade, in Palm Beach County. She noted that in return, Palm Beach County added $20 8111ion to the $1 ml1lion to Improve the houslng. She stated that she feels that Colller County should actively solicit more Pocket of Poverty money next year, and show the Leglslature what Collier County has done by turning the $1 million into $15 ml1lion, wlth 248 units. Finance Director Yonkosky stated that the Library and Parks Ordlnances require that the money be taken from someplace else, and requested dlrectlon as to where the entire $100,000 should be taken from to pay those fees. j County Manager Dorrill stated that Staff "111 bring back the I appropriate budget amendment, rather than to take any money from the the Contingency Fund. Opao call tor the que.tion, the aotlon carried UD8D1JIoualy. Q . Per.. I 3 ~ /?t..;C:t: ~-/9-fr ~ ()A) a¡ Page 11 /1 ,- -,, _. ~ .. MAY 30, asSt ... Race.. 10:38 A.M. - 10:45 A.M. ... It- .1OA ftUOLonOR JrO. '.-135 UTABLISIDmJIT OJ' BAY KUAGDODrr ~ZATIOR TO a COOItDIJIAnD WITH RAPL&s BAY TASX raRC. AJfD TO aIry OW IIAPLU - AOOhau County Manager Dorrill stated that this Resolution concerns the protection of environmental sensitlvities at Naples Bay. He noted that the Naples Area Chamber of Commerce selected a committee to explore and make recommendatlons. He Indlcated that the Committee proposed a Bay Management Organization be created and representatlon of the Committee be comprised of Clty and County officials. He advlsed that the County Attorney prepared this Resolution with coordination from Envlronmental Services Admlnlstrator Lorenz. Mr. Henry R. LaRose, Supervisory Hydrologist, Unlted States Department of the Interior, Geologlal Survey, stated that programs In Collier County total approximately $300,000 for surface and ground water monitoring. He explained that It was his Idea to begin uti- lizing flow and salinity models In the Charlotte Harbor Estuary, Estero Bay, Naples Bay and Rookery Bay waters. He polnted out that these models provide water analysis as well as water volume. He emphaslzed that It is essentlal to ptudy the volume and movement of the waters, as well as the quality of the water. He explained that funding Is 50/50 on a cooperative basls for their services. Mr. Don Barber emphasized that the bays in the County have been studied extenslvely, but this Resolution wll1 provlde a commlttee that : can exert control with respect to Naples Bay. Dollar Bay, Moorings Bay, i etc. He explained that a number of organizations interested in 1 the bays will be brought together to provlde solutions to the ! . ¡ problems. He reported that on June 7, 1989 the Clty Councl1 will be : ¡ hearing a slmilar Resolution and with adoptlon of Reoolutions by the I County and the City of Naples, an inter local agreement can be provided I i to help clean up the bays. Commissioner Volpe questioned the source of funding? Mr. Barber Page 12 Jf .... -. .,--_.... - .--. MAY 30, 198~ responded that this Committee could Identify and prioritlze solutions to the funding problem. He indlcated that lack of funding ls the reason most of the programs in the Conservancy Report have not been acted on. He emphaslzed that the problems of freshwater and storm- water runoff can be solved with extenslve fundlng. Commissioner . Saunders questioned if the Bay Management Organizatlon would be an advisory board making recommendatlons to the Board of County Commlssioners and the City Council? Mr. Barber indicated that ls correct and ultimately their recommendations would be brought back to the respective organizations for Implementatlon, together with requlrements for revenue sharing. Commissioner Hasse stated that a mlx ot 3 Commissloners and 2 Councllman would be sultable, it all the bays in Collier County are to be Included. Mr. Barber responded that the interloca...greement would establlsh the ratio, but cOoperative effort is the first step. Commissioner Saunders commented on odd _. vs. even numbers in relation to tle votes. A discusslon followed about elected officlals, appointed ottl- clals, and cltlzens groups. Commlssloner Shanahan commented that It this committee is structured similar to the MPO, excellent results are Posslble and numbers are not as Important as protectlng the bays. eo.u..1oner Shan-ban 8OV8d, "con48d by Co..i..1oner Volpe and ¡ carried UDan180U81y, that Re.olution .0. ISt-138 be adopted, subject to the re<;o Indation of the Baple. Bay Tuk J'orce. I , : i I , I hge 13 1'1 ~.- MAY 30, leU It- Hal A~ZATIOR OJ' COtJJfTY n.r&l8DITtJltKS TO ASSIST .l:VDGLADa CITY'S DCPIb,,"--,¡-s or CITY STftZrrs OTILIZIBO COtnn'Y PAVI.G COftftAC'TS - APÞIWYKD Transportation Services Administrator Archlbald stated that Everglades City Is in the process of reconstructlng and Improvlng city 8treets. He indicated that the elevation has been raised, foundation work has been completed, 11merock bases have been raised and they are prepared to begin paving. He explalned that Everglades Clty Is seeklng approval from Colller County to take advantage of annual County contracts for paving ser~ices In order to complete their road reconstruction. He adVised that the County would accept an uP-front payment from the Clty of Everglades in the amount of $10,000, and pro- vlde subsidies for roadway improvements to beneflt school access. He provlded an exhibit showing the access roads and Improvements planned that need pavlng work (copy not provlded to Clerk to the Board). He Indicated an Interlocal agree~ent would set forth the amount of money to be placed in Colller County'S accounts for paving the streets. He polnted out that by taking advantage of the annual contracts, Everglades Clty could utlllze the County contracts and pay for the cost of the improvements. He advlsed that the County'S contracts for small asphalt work are $42 per ton and with a contract for more than 200 tons the rate would drop to $32 per ton. He noted that Everglades City has assisted the County by doing malntenance work on C.R. 29 within the city limits and also provlded mowing services in and around the access roads to Everglades City and the alrport at a eavlng to the County of $10,000. He explained that Everglades City has also provided other services for residents such as utilization of parks and the 11brary, services at Clty Hall, and school functlons. He stated that Staff recommends an interlocal agreement be drafted incorporatlng , , the $20,000 subsidy. ¡ Commlssioner Shanahan questioned if the County can pave City streets, and County Attorney Cuyler responded that straight subsld1es Page 14 ~~ -.---- MAY 30, 1989 are not allowed, but a cOoperative effort through an Interlocal agreement Is permlsslble. Commissioner Goodnlght added that Everglades City houses the ChokOloskee/Ochopee fire control equipment, EMS personnel and ambulances while the Courthouse provldes space for the 11brarian, voter registration, and tax collection at no charge to the County. Co..issioner Volpe questioned why the School Board does not maln- taln the road, and Mr. Archlbald responded that the School Board comes to the County for publlc roadways; it only improves its own access roads wlthin its own boundaries. ~...t0D8r Goodnight aoved, .econded by CO...t..ioner ~.~1U1 8Dd carried ttft-i~ly, that Kv8rglað.. C.tty receive. 8Ubeic2y ot 820,000 tor .treat iaprov...ut. SUbject to IU1 .tntarlocal 8gr8888nt pr-..-84 by the County Attorney. , ~ ~~~~ 9~ /3//9Rf I Page lð ¡,g -"... - .'--- ._. MAY 30, 1989 It- ..01 DrTDDI DIIUtu.Ðn.iY ""'I'D PO'ItCBAsE AO'R.UMDT WITH DKLTOIIA OTILITIU - » r -.,y au Utilities Administrator Arnold stated that this item is a recom- mendatlon of approval of an emergency agreement wlth Deltona Utillties for provision of water to Marco Island. He indicated that the water obtained from Collier County will be blended wlth Deltona's raw water to reduce the chloride concentratlon. He explalned that the drought has caused slgnitlcant fluctuatlon in chlorlde levels reducing pumpage and raw water available for the needs of Marco Island. He emphaslzed that the County has structured the agreement to reduce or elimlnate dellvery of water if It affects the abillty to serve malnland custo- aers. He pointed out that Deltona wll1 absorb all costs. Coamlssioner Saunders questioned avoiding treatment of the County water twice and Mr. Arnold explalned that cannot be avoided as there is only one raw water 11ne. Commissioner Saunders questloned the rates the County is charging Deltona, and Mr. Arnold responded that the County is fully compensated. A dlscussion followed about the excess capaclty and the abl1ity to escape from thls agreement. Commlssioner Volpe expressed concern about Deltona's eftlciency in operating thelr utillty, and the amount of excess water the County has avallable. Utilltles Admlnlstrator Arnold responded that at peak time the County had Over 1 ml11lon gallons of excess water. County Attorney Cuyler recommended that the Board alleviate their concern by making clear what they want and have proper language inserted in the agreement. Commissioner Volpe questloned If Marco Island needs addltlonal water? Commissioner Shanahan responded that a tremendous need exlsts and the fact that Delto~a is requesting watter and is willing to pay $1.60 per gallon is proof of that. He noted that quallty, as well as quan t ity, Is a problem on Marco Island because the lack of water due to the drought creates an unacceptable chlorine level. He explained Page 16 ;.4 MAY 30, 1989 that adequate pressure Is a separate problem that taIls under the South Florida Water Management District. He emphaslzed that Deltona ls wllling to pay $1.60 per gallon and the County is obllgated to pro- vlde water for Marco Island. He pointed out that this does not cir- CU8Vent monitoring Deltona or the Possible acquisition of Deltona by Topeka and/or the County. He emphasized that Point 3 in the Agreement covers the concerns expressed regarding the reduction of the excess water belng sold to Deltona. Commissioner Hasse agreed that the County has a responslbillty to the citlzens of Colller County, but it leakage is present, as Is reported In Marco Island, that Is not acceptable. Commlssioner Hasse polnted out that staggered tlmes for waterlng lawns are necessary because of the problem of lack of water In the morning throughout the Conuty. Mr. Arnold concurred and stated that preparlng staggered tlmes on Marco Island has to be addressed. The Board of County Commissioners will have to address that. Commissloner Shanahan polnted out that the Board of County Commissloners should petition the South Florida Water Management District about revising hours. George Keller, Collier County Clvlc Federatlon, stated that the County is obllgated to make sure that Marco Island has water, but that the utillty should provide a source for the water. He emphaslzed that availabllity of potable water Is the problem, and the Board of County Commissioners should direct the Utlllty Department to tind more water sources. Commissloner Volpe questioned If the Public Service Commlssion provided the Board with a report of their Investigatlon, and if thls agreement Is being vlewcd as an Interlm measure? He also questloned the cost of the connections to deliver bulk water to Marco Island and noted the agreement ~s automatically renewable unless not lee is glven otherwlse. Utillties Admlnlstrator Arnold responded that the cost ls less than $50,000 and the County will make money by charglng $1.60 per I j /' Page 17 )5 , I , J ! MAY 30, 1989 gallon. Commissioner Volpe stated he felt this agreement should have a clause whereby the agreement can be cancelled on 30 days notice. Co..lssioner Saunders suggested rewording Paragraph 3 to ellmlnate certaln phrases and strengthen the County's Position by adding speci- fic phrasing. He suggested that the second sentence in Paragraph 3 be elimlnated and replaced with a phrase saying that "The excess water supply to Deltona shall be reduced or diminished by the district in the event that thls excess capacity Is reduced for any reason. All determinations relative to excess capaclty should be made by the Dlstr it:t." Commlssloner Shanahan concurred. Mr. Novack of Deltona Utilltles, Inc., stated that Marco Island Utilities is looking into a number of resources for raw water. He noted that Deltona i~ providing water above the PSI 8inimum and the PSC and DER have responded to customer complalnts. He polnted out that the DER has confirmed that Deltona is above the PSI mlnlmum. He explained that Deltona's system has a respectable amount of unaccounted for water, and this can be supported by the water meter readlngs of customers. He advised that Marco Island has a very hlgh consumptlon of water per capita. In response to Commlssioner Volpe's questlon about the hlgh consumptlon, Mr. Novack responded that metered consump- tion reflects that. He reported that the peak morning tlme usage creates problems, and Deltona supports diluting that peak tlme. ea..J._1onar Sh.a?t_h-.n 8OV8d, .ecended by Ce..1..1oner Goodnight 8D4 carried un&n18OU81y, that the Interla E8argency Matar Purchase Agr.......t be apprOVed with the 888nc!aent to Sectlon 3 atated by CO8a1_1oner Saundera. A dlscusslon followed about the right to cancel thls agreement. Clerk Glles stated that extending credit is a problem. Commisslener Saunders pointed out that a $48,000 deposit is requlred to ellminate any problems arislng from extending credlt to a private flrm. County Manager Dorrll1 notod that this Is conslstent with establlshing an I account. 1 i i ! Page 18)V i --- .... . -..- . ._. .. MAY 30, 1989 ec-i..ioner Saunders aoved, ..conded by Coaal..ioner ShaD-ban and carried un&ni80U8ly, that Staff ...t with Del tona to provide an etticient ..tering .chedule for Marco I.land and aubait that schedule - a Z"'8(;::' u4atlon froa the Board of County Co..l..10ner. to the South J'loric!a .ter Manag888nt Di.trict. ec-i..i0D8r Bu.e 1IOV8d., .econded by Coaa18doner Goo4n.ight and carried 1In8n18OU81y, that Staff re.earch aathoda to re.chedule U88g8 ot irripticm ..ter throughout the re.t of the County. ec-i..10D8r Volpe polnted out that the City ot Raple. baa enacted an Ordinance enforclng water re.trlctl0D8. County Manag.r DorrI11 explained that the County has It. own .et of water r.lated re.trIc- ti0D8 and the ChaI~ of the Board ot County Co..i..lonar. or the County I18nag.r can declare a .tate of ...rgency and II1pO.. re.trIc- tiona and anforc888nt.. Coaal..lonar Volpe indicated that thi. dI.C'U88Ion con~ concern on the part ot the Board ot County COIIaJ-i0D8r.. ~~~31 Ifff It- nE1 COITJtACT JtJ'P "U-13n - DCPLom ASSISTAJrCE SKftVICI:S - APPROVED Thomas C. Whitecotton, Human Resources Director, stated that the Employee Asslstance Services program helps Staff deal with personal problems that may impact job performance. He noted the program has been in force for 3 years. is very Guccessful and hlghly regarded by both Staff and Management. He Indlcated Staff Is requestlng renewal with Human Resources Associates, a dlvlsion of Davld Lawrence Center, adding that the cost per employee has remained the same for the past 3 years. Commissloner Saunders noted a copy of the contract was not In the agenda packet. County Attorney Cuyler polnted out there is a contract In effect and assuming the provisions do not change substan- tiall y, the Board can approve it subject to the County Attorney's revIew and approval, or place it on the Consent Agenda. Mr. Whitecotton pointed out that the contract expires Wednesday, May 31, 1989 but it can be extended to next week's agenda. In response to Page 19 ;1 T - ., MAY 30, 1989 Coami8s10ner Volpe, Mr. Whitecotton noted that fundlng i8 provided tor the contract from May 31, 1989 to May 31, 1990. C~..ioner BhuJ-".an aoved, "conded by Coaai..ioner Baa.. and carried 1In8Diaoaaly, that Contract RJ'P #81-1317 be approvwd 8Ubj8C~ ~o the Coant:y A~~OZ'D8y'. r.vi8W. ~~~~~ 9~ /3, /9;;~ PIIg8 2 0 ~1 MAY 30, 1811 It- "1 APPLICA'fIOJr raJt QCYCLIRG AJfD EDOCATIO. GftAJfT I't7RDs - APl>KUYKD Environmental Services Administrator Lorenz stated that the Solid Waste Management Act requires localities to develop programs to meet objectives and provides grants that locallties can apply for. He indicated that Collier County, jointly with the City of Naples, can receive grant monles of $268,000, of which the City of Haples wll1 recelve $38,000 and Collier County would recelve $230,000. He pointed out that the grant was forwarded to the State to ensure it was pre- pared correctly, and authorization from the Board ot County Commlssioners for the Chairman's signature on the applicatlon Is requested. Commissloner Saunders noted that the Executlve Summary indlcates that this is not a matching type of funds grant and Mr. Lorenz concurred. ~..ioner Goodnight 8OV8d, .econded by COaaJ..ioner Sh-~-btU1 and carr1ed unan18OU81y, that the grant application tor Jtecycl1ng and K4u.caUon Grant I'un48 be approved. SEE PAGES '32J.1-~/~ .... It- HBl i ¡ Afth...a.a-r WIn COASTAL DGIJrKDIRG TO PROVIDE ADDITIOIrAL SDVICU raft ¡ 'I'D IIUtCO IBLAJn) BUCK Jt.BSTORATIOR PRO.7KCT IR TO AIIOOJfT OJ' $158,080 - U rlIØI'fI.w ¡ Harry Huber, Technlcal Services S4pervisor, stated that thls is an I Addendum to the Agreement for professlonal servlces for the Marco Island Beach Restoration Project approved by the Board of County r Commissioners on February 16, 1988 for flnal deslgn in construction 1 in accordance wlth permitting agency requlrements. He polnted out that this Addendum addresses items exceeding the requirements and addltlonal items not antlcipated. He explained that the cost of thls ~greement is not to exc~ed $~8,080 and funds are avallable in the 1988/89 budget in engineering fees. 'f8pe" In response to Commissioner Hasse's question, Mr. Huber repUed that compliance with all the additional requirements of the DNR and Page 21 J,~ - MAY 30, 1989 the DER over the past several months necessary for lssuance of the peraits was not anticipated nor known at the time the County entered Into the contract. Commissioner Volpe stated that he would like to be updated on the status of the Marco Island beach renourishment program at some future time. Commlssioner Volpe questioned the services of a lobbylst the County engaged to flnd sources of money available for beach renourlsh- ment and Mr. Huber explalned that the ad hoc committees wl11 be reporting to the Board of County Commlssloners after their meeting on :June 19, 1989. He pointed out that notices for thls particular pro- ject will be mailed out today and a public hearing is scheduled for :June 28, 1989 before it goes to the Governor tor approval. C-1..10D8r Volpe aoved, 88Conded by Coaai..ionar sn-,_h1lJ1 and carried 1III8D18oualy, that the 8gr--.nt to provide addItional ..rvlc- for tb8 Marco I.l8Dd Beach fte.toratlon Project in the aaoant of eS8,O8O be apprO98d. Comaissioner Shanahan expressed a deslre to discuss the problems that surfaced relatlve to the tax base and bonding Issue. Mr. Huber responded that the assistance of the County Attorney will be required at the discussion to resolve the issue. Page 22 iP ^--- - MAY 30, 1989 It. na APPoLo¿RUfT 01' I'ZVJr MDlBD COMfITTU TO ,UfAJU) AJrJroAL COJmtAc'J's I'OJt PIIO....IOJIAL AJtCJIIDCTtJft.U, A.WD DGIIQDIlfG SERVICES raR SMA.r.r. CAPITAL DIPkvw -.r PItO,l8C'l'S - ~ Toa Conrecorde, Acting Director, Office of Capital Projects Management, explained that small scale projects under $250,000 planned for approval by the Board of County Commissioners could be accompllshed by solicltlng bids from small, local architectural and engineering flrms. He noted that this would enable the projects to be completed faster and more efficiently. He indicated that the fundlng would be part of the normal project's budgets approved by the Board of County Commissioners each year. C0881..1onar Shan-h~ aoved, -conded by Co..I..ioner Baa.. and carrIed 1ID8n18ou.aly, th& ~ a five -.bar "laction co88Jtt.. be appointed to 8M8.rd annual contract. tor "'11 capital 1!1V88t8ent pro j 8'C't. . C-ttl~e "~-~tat1V8 ot Oft Ice ot Capltal Iaprov.--nt ~t rr....- -t ~t IrDYh- Ltal 8ervlc- AdainI8trator ¡Public 8ervicea A4alnl.trator ¡ &A.t~18tratlV8 ServIce. A4alni.trator or Tr8D8portatlon Aain18trator , 1 It. ""4 1'DrA8cD8 OJ' %'D IrORTB 1IAPLES ftOADlfAy MS'l'O PRO.nCT - POBtIC BURIJrG IaT roa JULY 3. 1.'.- -See Action 'fabn at End of BeC .Meeting Changlng Date ot Hearing Asslstant County Manager McLemore indicated that the Board of County Commissioners is to establlsh a public hearing date for revi- slons of the assessment rolls and method of financing the Horth Naples {Roadway MSTU Project. He noted that the establishment of a taxing district in August, 1986 to improve 6.2 miles of North Llvingston Road I I and to provide water facilities for propertles included in that taxlng ¡ , ~Jstrlct was approved by the Board of County Commissioners. He , explained that the project is currently moving from deslgn phase to property acquisition and requires the issuance of bonds for project expenses. He pointed out that the prOject is under-financed and will Page 23 J~ MAY 30, 1989 have to be restructured. He stated that the original project e.tiaates do not provide tor adequate bond Issuance expenses, rlght-of-wayacqul.l- tion expense have escalated because of increased requlrements, and inflation has caused cost increases in the construction industry. He explained that this necessitates setting a date for a public hearing. He noted a declslon relatlve to use of bi-modal bonds, as a method of permanent flnanclng is to be considered by the Board of County Co_issioners. He pointed out that the bonds wll1 collapse on August 1 and the unused bonds will be converted to project bonds. He empha- sized that using bimodel bonds results In a savings of over a million ~ollars In a project this size, but the problem Is a fast track requlrement necessitatin7 setting a date for the public hearing date. A dlscussion followed regarding the choice of a date for the public hearing, and the amount of savlngs resulting from blmodel bonds and capitalized interest. Co8aJ_Iøner Sha....h-n aoved, .econded by Co..I..loner Volpe and carr led 1ID8Di80U81 y, that that the public hearIng date tor tJnancing the Rorth Rapl- ~y MSTO be ..t tor :July 3, lilt at i:OO A.M. ..... Recess: 12:48 Reconvened 12:80..... ... Deputy Clerk Bottaan replaced Deputy Clerk Eratt at thi. tI.. ... It- .11Al 1Ouu-r AW.~~¿b li-181/1ei - ADOPTB~ ec-J_loner Goodnlght aoved, "Conded by Coaa1a.ioner Saunders 8Dd carried 4/0 (Coaai..ioner Bu.. out ot the rooa), that 8udg8t a --- Ita .St-l'./lllt, be adopted. It- -11Aa I -INKY """'WI&IT ltaOLOTIOR. 8AJIt li-lCS - ADOPTED ~-I0D8r GoodnIght 8OV8d, -Conded by Co881..Ioner Saunders I 4Dd carrled 4/0 (Coaal..1oner Baa.. out ot the rooa), that Budgttt a - It ResolutIon li-1S, be adopted. f I ! ) ¡ J7 i ¡ Page 24 I ..., MAY 30, 1989 ... ~..ionar H.... re~ed at 12:S8 P.M. ... It- -lOa ft8SOLUTx~ 11-138, AOTBOftIZIRG TBX ACQUISITIOR OJ' PKRPKTvAL IIOJr-acr.usXW DJl.UJlAO'K USDŒ.rS BY GIft, POJtCB.uz Oft COJIù.-..&'fIOR, J'OIt pm IUDCD IJfWUKIAL PARK MOJrICIPAI, SDVJ:CZS TUIJrcJ AJm 8DD'I'1' mT - ADOJ'nD AS AMDD:m County Attorney Cuyler advlsed that this item relates to the reso- lutlon authorlzing the acquisitlon of non-excluslve dralnage easements by gift, purchase or condemnation, regarding the Pine Rldge Industriel Park MSTU. He stated that the actual easements are legally described In the Exhibits. He noted that the followlng changes nee~ to be made to the resolution: delete "NOH-EXCLUSIVE" from the title; delete "HON-EXCLUSIVE" from the second to the last WHEREAS clause; delete I "HON-!XCLUSIVE" on Page 2, third 11ne of the flrst full paragraph, and th~ fourth line of the second full p~ragraph; Page 2, first full paragraph, 11ne " "'" .maintenance of a portion.... strlke 8a", and replace with "sald". He stated that the recommendatlon Is that the Board adopt the resolution as amended. , C 1..IODer Øoodnlgbt aoved, 88C0n4ed by CO881..ioner 8hat:-.,c I - ---.... --t-.oly. that -luti.. .'H3." -""'-. j I I I I ¡ I I Sf Page 215 ì ! MAY 30, 1989 i j It. .nU , J'LOIUn. ASSOcIAnOR or COOJfTIU AJnfOAL COIfl'DDCE SKPTUIDZIt 27TH- 2n11, all, OR MAftCO ISLAJID - COMIfIT'rKB TO BJ: ESTABLISDD WITH COMIIISSIOJIDS SHAIUJIAJr AJm GOODRIGBT RlPRESJ:JfTIRG TO COMIfISSIOR Commissioner Goodnight reported that two years ago when the Florida Association of Counties held their annual conference on Marco ¡ Island, everyone enjoyed themselves so much, and they have asked to coae back again. She advised that Colller County wll1 once agaln be hosting this event in September. She noted that there will be a luau at the Marrlott, and requested that the Manager help by provldlng the assistance of Staff, in putting this together. Coamissioner Goodnight noted that there will be no money involved, ¡ unless of course there is a desire to provlde a token, such as that of i 2 years ago, which was a cloth bag for paperwork, etc., bearlng the County's Seal. Coamissloner Shanahan referred to the Board's receptlon for the Board of Directors, and questioned whether funds would be needed for this? Commlssioner Goodnight replied that there are sponsors who I contrlbute for thls each year, adding that the only thing that money i will have to be raised for is the luau. She stated that work will have to be done to find a place to hold the reception. She suggested the possibility of the Old Marco Inn or the restaurant at Goodland. c.-J._icmer Baa.. 8OV8d, 88Conded by CoaaI..ioner S8UDder8 and carried anani80U81y, that a c0881tt.. be e.tabli.h8d with C~_lcmera S~-h.n and Goodnlght repr..antlng the C~I..Ion, to 88b the 1MtC:8884U"y arr&nge8ent. for the J'lorlda As.ociation ot CoantI- Annua.1 Conference, and ask the Marr iott to ...i81: WIth the 1118a.. It. -12C COuu.z ATTOItDT '!'O ItEVIn LABGtJAGE or ZO-U-l RI CALCUr.I.TIOR or XI.~ DISTAJICJ: UQOIRDDDrr BnM:ku U KSTABLISBMDT DGAoIJIU IR 'I'D SALJ: OJ' ALCOJIOLIC 8EVDAGKS raR CORSOMP'rIO. OB PRJDaSJ:S A.8D U KSTABLISDD CJI'OJtCB, SCHOOL, PUBLIC P.ARX OR PLAYGftOOBD, A.8D BRIRG BAa '!'O 'I'D 8CC Commissioner Hasse stated that he requested that this item be placed on the agenda. He requested that County Attorney Cuyler review 17 Page 26 .-.--,- -. --~-_. I ¡ ¡ MAY 30, 1989 the language of the ordinance. He noted that he had previously suggested that dlstances between establishments engaged In the sale of I alcoholic beverages for consumption on premises and an established church, school, public park or playground be utillzed by portal-to- portal, rather than property to property. County Attorney Cuyler stated that he wl11 be happy to revlew the language of the ordinance. , eo..J._Icmer Bu.. moved, ..conded by Coaai..loner Sh-'1-"8D, that the County Attorney review the language of the ordinanc. regarding the dIat8DC88 between -tabli.h8ent. angag.d in the _1. alcoholic bev8ra- f g88 for ~Ion on 9r..i... and an ..tabli.hed church, .chool, pabllc park or playground, and bring back to the Coaa1.aion. Coamissloner Volpe stated that at the time amendments to the ordl- nance were presented, he had concerns relating to exposlng the county to liability. He suggested that rather than the ordinance statlng "material injury to someone", this could be stated In another way, I.e. inconvenience, nuisance, etc. UpoG call for the que.tIon, the aotlon carrled ntJ.omi-.oualy. Zt- .12» Jœ8OLUTI08 ""137, APPOIJJ1'MEJI'l" OJ' MDœD.S TO TD ArI'OftDA8L& BOO8IIIO 'f ASX ~ - ADOh &II Comaissioner Goodnight had originally recommended the names of 15 applicants to serve on the Affordable Housing Task Force, but after a brief discussion, Commissioner Shanahan recommended that all 19 of the applicants be appointed. Commissloner Goodnight concurred wlth Commissioner Shanahan. Co8a1_iemer Goodnight aoved, "conded by CoaaJaaicmer ..... and C8rr 18d 1ID8D 1aøaa 1 y, that the following appl1cant. be appointed to the Affordabl. 1Ioaa1ng Tuk J'orc., and that Ra.oluton 1"'137. be adopted. Dr. .Jay Abernathy, :Jr. Peg Miller :Jerry Bosworth Gregory Helson :J. Stephen Davis Davld Patrlgnani Dorothy:J. Pitch Mrs. Ronnle Perricone Robert C. Gebhardt Pedro E. Prado David C. G r ah WI. Stephen S. Riggin. Maureen T. Kelleher Beatrlce T. Santord Charles R. Keller Fred N. Thoma., :Jr. David McKim Thomas White Nelda Miller II Page 27 .- --. MAY 30, 1989 ..... Co8a1..ioner Gooc2nlght aoved, .econdad by Co..i..ioner ..... 8Dd carr led unan i80U81 y, that the following it... UDder the Conaen t Agenå be approved and or adopted: ..... ¡ It.. 'ltAl ACCU'TA1K3 or P1DtIIIT BOJrD AS SECURITY raft DCAVATIOR PKJafIT RO. U.388 8HEROR LADs8, LOCATKD IB SECT lOB 18, '1'OWJrSBIP 4i SOt7TB, ftAIrGB 28 DST I =-~~ TO uPRovAL or BOBD BY COI1JfTY A'l"TORnY ¡ Acceptance of the Permit Bond to guarantee completion of the Excavatlon Permlt Ho. 59.365, subject to the approval of bond by the County attorney for legal sufficiency. See pages~~~ I ~Y9~ /3;/fJ'f It.. .1U2 I PRZLIKIIIARY ACCD'TDCE OJ' TO ftOADMAY, ÐftAIIIAGE, IfATD A.WD aDD IXPR~-"s J'OIt TD rIIIAL PLAT or 8COLLIER COtnnT PRODOCTzOR PAIU: PRASE 1-88 - ~ TO tTIPOLATIOIl Preliminary acceptance of improvements will not become effective until water and sewer facillties have been conveyed to the Clty of Haples and Collier County Water-Sewr District, respectively. It.. 'Uu PI.'!MIaIT D TD AI8OOJfT OJ' Ie, 800 TO DCBOft BOILDDS raR DDIOLITIOR nrnca JOlt C&.n n-li-1888 It- -14.&. IœSOLVTIOR '--131, J'IIIAL PLAr or -GOLF COTTAGES AT Muu&l'l&ft&, Pl!l.SB ru-, AD ftKLnaJrAJrr ACCEPTABCK OJ' TO ROADWAY, DftAIJWD, .'I'D Am) IIWa IMPav"......r1:ll - WITH ST1:POLATIOIlS The Board of County Commissioners to approve for recordlng the flnal plat of "Golf Cottages at Wyndemere, Phase III" and grant preli8inary acceptance of the roadway, drainage, water and sewer improvements with the following stlpulations: 1. Accept the Letter of Credlt from Sun Bank in the amount of $20,581.06 as security for malntenace of the Infrastructure untll the Board of County Commissloners grants flnal accep- tance of all Imp'.~ovements. 2. Authorize the recording of the final plat of "Golf Cottages at Wyndemere, Phase III." 3. Authorize th~ Chairman t~ execute the Maintenance Agreement for Prellminary Acceptance and Resolutlon authorizing preliminary acceptance. 4. Preliminary acceptance of the improvements wll1 not become effective until water and sewer facilities have been cOnveyed to Collier County Water-Sewer District, In compllance wlth Collier County Ordinance 88-76, as amended. /' ,¿O Page 28 ...".. i I I I ¡ ¡ ¡ MAY 30, 1989 I 'See Pages fø3-1J, I-A. S , I', 1'1401 j ; :! '.\1.1, J'IUoD AT DIMOKALZz C0MM08J. TY PAIŒ IfAMJm 8HOr.us SOftII&LL ' F I ;:"LD8 ¡ j I t~'... I'lfC2 , I"~ TO a_DMbT WITH QtJKD raft A DAY, I_C., IJrCftUSllfG 'I'D ( . ACT IR T'D AØOUJfT OJ' 817, 000 ¡ See Pages b 3 - E . I - B. ;:¡ It ., 1'1403 C, ::()(AJ( TO BIGJI COJft'RAC'T raR LIBRARY SDVICES AJID COR"'l"ltbc'1'IOR ACT, !..LTJ.Z I GIWft' See Pages ¿'3- C. / - (?.:3 It... #1404 cr' 7'UJrD 307, AJI1) COOJrn-tfIOE AD-VALeRDI CAPITAL OO'TLAY J'OJIJ) 1'. I 8\J c'".n I..- ~ UOOKft IR TO ~ OJ' 810. 000 I I I~.... #lfOl /' .ft1,'r.U .... ft~AKY SCHOOL - LIn STATIOR AJID 8DIAGK I'O1tC8 MADr r ;, ~ UTI" ~AJI'C'B i 'I Recorded In O.R. Book 1445, Paqes 149-166 It.. .14J)2 ACCQTAIIa OJ' T'D VILLAS AT LKLY 8ARD'OoT BEACH WATD A.WD SDfD rAçILInn - ~ TO STIPOLATIOR J The Utillties Administrator recommends that the Board ot County II Co,',rdssioners, Ex-Officio the Governing Board of the CountY-Water Sewer District, accept the water and sewer facllltles for the Villas at Lely Barefoot Beach, with the followlng stipulation: , I 1. The Flre Flow Capacity testlng meets the requirements of the ' Plre Distrlct. Ite. #14El I LO~H. -TCJIIJ18 J'U8'J)S raft TO RDDAL UTIUJ) SDIOft VOLD.~&&K PJtOGJtAM OR .\,NT U 'I'D .IHOVIIT OJ' sa, 000 TO PROVIDE A 'I'D PD!:D'r rntST YUJt JU.'¡C.II I I~ftm - j ItJ'p ..8-1370, I'OJt OOLLKC'TIOR AGDCY SDVICKS raft DmJtGDcy IlJEJ)ICAL ¡ ~ca AII&ImIm TO cac CftKDIT SDVICKS, IBC . See Pages77/Jd~J"""""./_.z.. A...J'...r~~ Ite. #14r2 ~ tt;j c¡~ í3¡ lyE-? i I BUuuàT ~.LWi&8T UQt7BST IB TO ANOOJfT OJ' U,800 TO PAY raft nKL, I'OOJ) A.WD O'I'IID cosn USUtTIRG nOM TO 8ROSB J'IftU IR GOLDa GAD UTA'l'U ¡ Do ;r-UD DUltIJIG TO PDIOD OJ' MAftCH 8 - APftIL 10, un j'/ I _. 2' , , - , .". , MAY 30, 1989 It"" -'1401 C!, '~f AØ!'IIOIUDD TO DKCO'D COIlnACT AGJUœMDT WITII TO SOOTJI 1. .~ WATD IUItAG:KICKJtr AOTIIOftIZIJIO I'OJmS TO n PAID, m AIr AIIOOft .OT ',0 DCKm 88,000 I'D YUft TO TD DIST1UCT TO LOCATE A.WD PItOPDLY ! . '?L T CO~ OR AIAJrDoOD lOLLS ffITHIR COLLIU CQt1JfTY See Pages (, 3 -J), I -J). 7 It :n4Il Jì.' TIO. "'13., APPOIJfTIJIO CAAOLR MCGUGOR TO TO DIIIDKALD ~~- ; ., (J AJID -lnIJ'ICATIOR COMfITTD TO A raOft-YQ.R 'nJtM See Pages t,,3- F, / , I L , J 14.11 ! , C~" ~!C"n: W COItJœCTIOR TO TO TAX ROLL AS I'IœSD'rKD BY 'I'D PItOP...u:r APh(AISD'1 omCK nil TUGIBI,B PDsOIIAL PROPDTY No. 117 Dated 05/18/89 It.... Ø'14:J2 ¡ ¡ U'T"RA GAIR TDØ J'OIt IJlJlATE ROS. 47380. 83i83, A.WD 80224 ! ! It.. #14.13 SATISJ'ACTIOR OJ' LID RI PUBLIC DKnBDER See Pages h3-J::. /- E,~ It..... "1 &:J ~c ,::.r..t..nOOS ~IfDDCB - WILED ABD/OR ~ The following miscellaneous correspondence was flIed and/or referred to the varlous departments as indicated below: 1. Grant Adjustment Notice date~ 05/08/89, regarding Subgrantee: BCC, Grant No. 89-C:J-75-09-21-01-033 , Title of Project: Enforcement/Apprehension, Adjustment No. 2, Nature of Adjustment: Special Conditlon Compliance and Revi~ed Budget. Referred to Sheriff's Dept. Finance Dept., and filed. Letter dated OS/22/89 from Robert K. Loflin, Environmental SpeciaHst, Florida Department of Environmental Regulatlon, enclosing short form Application File No. 111650445, whlch involves dredge and fill activities. Referred to Neil Dorr ill (letter), Bill Lorenz, and filed. 3. 05/19/89 Notice of Public Meeting received from Florida Department of Environmental Regulatlon, advlslng meeting to be held on :June 15, 1989, at 9:00 a.m., at the OMNI International Hotel in Miami. Referred to Neil Dorrlll, Bill Lorenz, and filed. ,1. Letter dated 05/1~/89 from Barry R. Hillmyer, Esquire, Barry R. Hillmyer. P.A.. advising that Carter Contractlng, Inc. furnished grading, site work, etc. for the Colller Health Service BUilding. tor which payment has not been made. Referred to Neil Dorrill, Ken Cuyler, and tiled. ,.ir Page 30 , ~ - , MAY 30, ;'9Bt~ ~. Minutes received and filed: A. 04/20/89 - Parks & Recreatlon Advlsory Board and 0~/18/89 Agenda. B. 04/27/89 - Library Advisory Board 6. Notice To Owner dated 05/17/89, advising that NichJlas and Cannon Agency furnished irrigation materials for imP=uvem~nts to East Naples Community Park, under an order give4 by Newberg Irrigation. Referred to Kevln O'Donnell, Cliff Cr-tord. and tiled. J 7. Public Notice of Application dated OS/25/89, advi~ ng tha~ pursuant to Chapter 373, Florida Statutes, apPlicajiCJ"~ éor permit have been received by South FL Water Manage ent Diatrict. Referred to George Archibald. 8111 Lort. ~d filed. 8. Letter dated 05/18/89 from W. R. Trefz, P.E., Dist lct 1 Secretary, Florida Department of Transportation, nótlfYing that Sectlon 0303001/SR951 from SR 84 to SR 93/I-7í' length 0.5 miles, has been approved by the Secretary of Transportation to transfer the jurisdiction from Collier County to the State Highway System on May 15. 1989' Referred to Ne" Dorrill and filed. ~ ..... 1t8ce8a: 1: 1& P.M. - fteCODV8J18d: 3 :00 P.M. at wh ch t~ Depu~ Clerk I:ttnyon replaced Depu~ Clerk IIoff8an ..... 'hpe .4 I~- He1 CABt.K ft&IICJan APPLICATIOJI raft TELEsAT CABLKVISIOR, lire. - AnJWvau IfITIf 8'1' LPULA'1'X08S Legal notice having been published in the Naples Daily News on May 5, 12, and 19, 1989, as evldenced wlth Affidavlt of publlcatlon flIed with the Clerk. public hearing was opened to consider an appll- catlon filed by Telesat Cablevision, Inc., for a community antenna televlslon systea (cable) franchise. Commissioner Saunders indicated that this item is to consider an application for a cable franchise for Telesat, Inc., adding that he would 11ke for all parties to announce themselves and who th1l are representing. He Indicated that this is the first time that this Co..lssion has conducted a franchise hearing for cable franchlses under the new ordinance. The followlng people identlfled themselves and who they are repre- senting for the record: Bruce Anderson, Attorney with the firm of Young, Van Assenderp, Varnadoe and Benton, representing Telesat Cablevision :John Blevlns, Dlrector of Government Affairs for Telesat Cablevlsion sg Page 31 MAY 30, 1989 Richard Gunter, Director of Government Relations for Cablevision , Industries Donald Pickworth, Attorney, representing Pal~er Communications along with Mr. Tony Kerns Harold Horn, President of CTIC Associates, assisting the County Hick Miller. Special legal counsel to the County, with the law firm of Miller and Holbrook in Washington, D.C. Assistant County Attorney Wilson stated that the procedure that the Board needs to follow is to allow Staff to make thelr presentation to the Board and allow Mr. Horn who has assessed the applicatlon that has been submitted by Telesat to make his presentation. She stated that Mr. Miller, the legal counsel to the Board, will then make a pre- sentation on the legal aspects of the hearing and then she will address the Board with regards to the criteria that will be con- sidered. She noted that after the Staff presentatlon is made, Telesat will be allowed to make their presentation and then the other two cable companies and the public will be allowed to speak to the Board. She indicated that the Board is allowed to and can entertaln whatever testimony is given and can hear that testimony and consider it in reviewing the application in order to come to a conclusion. She stated that the ordinance does have a restriction regarding wrltten reports that the Board is allowed to consider this date because there is a time limit involved in receiving such reports. In answer to Commissioner Volpe, Assistant County Attorney Wilson stated that the Board is not required to make a declsion this date it all the evidence has not been presented, but the ordinance does require that a vote be taken at the end of the consideration of all the evidence, adding that the ordinance also allows that if the Board is unable to take a vote and wishes to contlnue the matter, this may be done. Brlan MacKenzie, Assistant to the County Manager, stated that the purpose of thls meet!ng is to present staff analysis, hear the appl1- cant's response to the analysis, and public comment to the Telesat application by the general public. He indicated that he will be pre- .j/( Page 32 . .._-- MAY 30, 1989 senting the Staff conclusion and the basis for it and Mr. Horn will give details specific to the deficiencies of the appllcation and Mr. Miller will provide the legal authority for Staff's conclusions. He reported that the Staff conclusion is that the applicant has provided information that is not adequate in order for Staff to make specific determinations on a number of items: the actual specific plans of the company; and the capability of the company to perform on the franchise obligations. He stated that he would like to emphasis the point that the County has a legal right to the information that is being requested and an intellectual right to the information in order to make an intelligent business decision. He also emphasized the point that should there be a failure by an operating cable company, the County is seriously at risk if the company fails to perform, specifi- cally in the reduction of the existing quality of the cable service due to destructive competition and the risk of liability on the County's part of having an in-place plant If a company goes bankrupt; i.e. having the wires and facilities in the ground as it would be a substantial cost to er.tract those facilities. He reported that Telesat has either been unable or unwilling to resolve these issues to date. He indicated that there has been a tremendous amount of effort on the part of Staff and Mr. Horn reviewed all the factual infor- mation. He stated that based on all the reviews that were done, a Staff report was compiled which outlines three possible options based on the lack of information provided by Telesat. He noted that one option is to award Telesat a franchise that is short-lived and unre- newable without the information that has been requested; the second option is to provide Telesat a franchise that is limited geographi- cally and not expandable without the appropriate information; and the third option is to continue this public hearing until Telesat provides the information that has been requested. He noted that there is a fourth option which is to deny the application completely, but that is not in Staff's report. He stated that there are 11 criteria upon ./ .j~ Page 33 _... ~_.~._-~~.~---_._.._-,-~-,.. ------ - - .--.-- MAY 0, 1983 which the Co~ission, by law, is to ma'a tindings and render 1aCl- sion. He indicated that Criteria #1 is whether there will be . ecana,'c "pact upon P"vate p,ope'ty 'n the "anch'se aceasleh includes the uprooting of driveways, lawns, landscape and trene 1ng activities to install the syste.. He indicated that this .il1'C~r and is not prohibitive in terms of granting a franchise. He noted that Criteria" is whether there is a ~blic need tor such -I franchise and as outlined in the Staff report, it has been cone uded . that there is a public need for competition in the cable industry. He . stated that Criteria #3 is whether there is potential for disruption . of future service by debtructive competition due to the presence of . too many competing companies based on the number of potential SUbscrl- . bers in the proposed Ðervice area. He noted that there is no conclu- sjon or findjng on thjs matter as the responses by Telesat h~teen inconclusive and it is not Possible for Staff to making an appr priate . finding. He noted that Criteria #4 is whether there is capaclty of the public rights-of-way to accommodate the cable system and Cr'teria #5 is whether the present and future Use of the public rights-of-way . can b. us.d by tho cabl. syst.., adding that in ,.vi.wing this 8i- teria he had interviews with the Utility Department and telephone intervie.. with other current users including the telephone co1~y' electric company, and sewer company, and nothing was found that would preclude the award of a franchise based on these criteria. He noted . that Criteria #6 is whether there will be potential disruption to existing users of the public rights-of-way to be used by the cable system and whether there will be resultant inconvenlence whlch may ""ccur to the public, adding that this has not been found to be. to significant problem. He stated that Criteria #7 deals with the tlnan- cial ability of the franchise applicant to perform and to make the necessary investment to erect, operate, and maintain the cable system, adding that this is a critical concern due to the liability that the County would face if they should fail. He noted that Staff does not f(, Page 3. -.- MAY 0, 1989 . have a finding on this criteria as there is insufficient infor8ation. . He stated that Criteria #8 deals with the experience of the applicant in the erection, operation and maintenance of a CATV sy~tem anI Staff . conclusion is that Telesat's experience is quite limited and t¡ere is no othee county-wide that would comp.,e to the one that they 1 applying for. He indicated that Criteria #9 is the location a d type of permanent facilities proposed to be constructed for the cab'e sy"em, noting that Staff has determined that this infonauonra inconclusive and therefore, a decision could not be made. He tated that Criteria #10 deals with the technical quality and comPletfness of the ptopo,ed plan fot the opetation of the cable syste.. H. ticated that there were questions that needed to be answered and there Were a lot of concerns about t'¡eir technical plan, but subsequent to hat "'e, the bulk of tho quee"ono heve been a..awarod, Ha noted ¡hat there are still a few questions that need to be answered, but taff does not find any insufficiency in that the technical plan is fdequate to opecate. He noted that C'iteria "1 deal. with the ,eQUlair legal, character, financial, technical and other qualification necessary to construct, own and operate a cable television system. He indicated that Sta" h., concluded that ba.ed upon in,o,"atJ01re- sently available to Staff, Telesat appears to be a lawfully op rated corporation, operating under the laws of Florida with full legtl powers to per foro the requirements associated with the cabi. 11eV1- sion franchise. He stated that with respect to charactel' qual fica- tions, Telesat apparently operated in accordance with the requfrements of the law, He noted that Telesat 1. currently one of .everat_fen- dants in a lawsuit in the Southern District of Florida in whic it has alleged to have v101ated state and federal anti-trust laws 1n rnnec- tion with it's franchise to provide service to residential dev lop- . ment. He indicated that there were some minor legal issues locally in . terms of getting proper permits which are not considered a problem. He stated that aside from the Possible unlawful actions, there is an ..r1 P... f . - .,-.,., MAY 3 , 1989 additional character issue that Staff wishes to bring to the attention of the Board, adding that based on past behavior in other jurisflc- tions, Telesat's unresponsiveness to CTIC and Statf request forrlnfor- mation and Telesat's refusal to provide any financial or business plan . information, Staff believes that Telesat may not intend to perform on it's franchise obligations. He reported that there are signififant concerns that Telesat may extract itself from Collier County calle . market through sale or merger shortly after it gains entry and has not and will not e""¡se good faith in interpreting franchiae prOV~10n.. He noted that Staff has significant concerns about Telesat's co8mit- , ment to perform under a franchise and the long-term impact on tHe County of initial entry by Telesat into the cable television se~jce. . He stated that he has ou.lined the options that Staff is suggesting in terms of making a finding. J In answer to Commissioner Hasse. Assistant County Attorney 'llson stated that a Letter of Credit or bond would be determined acco'ding . to how large the franchise area will be and how much their ~onstruc- tian will be, adding at this point It Is not kna~ .. there Is I incomplete data. She stated that it is not known what the overall con"truction wil] be for the buUd-out time that j. bujlt in t"lord1- nance. She noted that they have requested a county-wide franch se but they have spedfjcally referred to 3 Jnitial service areas, Shlnnted that Staff recommendation is for a service area less than the three initial service areas which would be a different . amount. She noted that within the Staff report, there was a recommendation to allJl Staff to negotiate within the agree.ent a Jarge enough ~arantofin the form of a Letter of Credit or a performance bond so that the e is ample protection for the County. Assistant County Attorney Wilson stated that as part of the ecord she would like the Board to accept the staff report with the app ndix as Collier County Exhibit #1, adding that it is also appropriate tor the application that has been reviewed as well as the reports th t Page 38 .,j/ð . ~_.. -~-,-'^ MAY 30, 1989 have been .ade by CTIC to be .ade part of the record which wut: marked as Collier County Exhibits #2, #3, and #4. (Rote: The.. 1- bita _ro =t pra~t~ to tho OfUea of Clark of tM ~~.. I Mr. Harold Horn, President at CTIc ,"sociates, (Cable Telev 8ion Information Center), located in Annandale, Virginia, stated that. CTIC Associates work in a consulting capacity throughout the c~try str1ctly for and on behalf of local govern.ente. He noted thaithe company has been doing this for 17 years. He stated that the cable companies are well qualified to present their case. but it i~ often difficult for the Board to sort out the proper information in ~ing a decision. He stated that this js the task that the company hateen dolng fo" ov," 3,000 co-unitles ln the United States, He not. thst he has worked especially in the tranchising ~d the tranChiSin1 renewal process during this period of time. He stated that at he adoption of this ordinance, a set of forms were prepared and dl!lri- buted to Telesat and others that were interested in the apPlica'lon . process. He report2d that he has reacted to the forms as they ö&ve . come back in and analyzed the financial background of the company, it', ability to pay for it's expenses and make the operatJon wof. He noted tho< he also looks at the finandal performa which is the,om- panies projections as to the viability of the partlcular plan that they are P'Oposing He stated that there i. a a].o a technica' ,.c- tion that details what is proposed to be built and the time frame as well as the technical st~ndards that will be followed. He state! that all the material has been evaluated and a "poet waD made which Idi- cated a series of questions for Telesat to further elaborate on n -¿rtain areas. He noted that Telesat responded to those questl0 sand then a second report was filed which indicated the are.a that -t no ]onger of oonoern and the aceas that were ot111 outstand'ng. H. noted that his conclusion is that there is still insufficient informat on for the County to make a decision. He stated that it is essenti 1 to know who the applicant is and whether they are technically quaIl led, Page 37 ./'7 .~.. .~-~,,_., MAY 30, 1989 where and when a system will be built, if there is evidence of a financial plan and does the plan have any chance of being successful in a competitive environment. He indicated that most of the technical issues that were raised in the two separate evaluations have been fairly well resolved, but there are about 5 or 6 items that have not been resolved. He noted that the most diU icul t issue is the ownership of the company. He indicated that the understanding is that Telesat is 100% totally owned by Florida Power & Light (FP&L) Group Capital, Inc., which in turn is 100% owned by Florida Power & Light (FP&L) Group, Inc. He indicated that the FP&L Group, Inc. is the total FP&L organization. He stated that as part of the form, he asked for identification of the owner, adding that this means the stock- holders, so it can be determined to what extent they meet the FCC crlteria in terms of specific items and cross ownership of other items that might or might not be in compliance. He noted that all he has in the way of response is the corporations. He indicated that the com- i pany has ident if led the officers, the directors and the board members, but there is no knowledge as to who actually owns the grand parent, who is 100% in control of Telesat. He stated that Telesat claios that all of its funding is from equity of its parent company, FP&L Group Capi tal, Inc., but all the County received was the information on FP&L Group which is the grand parent company. He stated that there were no financials for the FP&L Group Capital, Inc., adding that the only financial report that was presented was from the grand parent itself. He stated that there is a limited letter of commitment from the holding company that states that it fully expects and anticipates to be able and willing to provide Telesat's capital needs. He noted that letters of commitment are usually much stronger with some level of dssurance from the parent or the grandparent that there is an unmista- kable commitment. He stated that from the information presented, he cannot understand the total relationship between these three organiza- tions. He noted that some earth station performance documentation was /Ii) Page 38 ~"'="' ".--.- '.- """ -----,- MAY 30, 1989 asked for but not received and the calculation detail was also asked for but not provided. He indicated that these are the problems that need to be resolved. Commissioner Hasse questioned why this hearing is taking place it there is not sufficient information and the proper answers were not given, to which Mr. Horn stated that this is a result of the request by Telesat. Commissioner Saunders questioned Mr. Horn as to how many applica- tions for franchises he has personally reviewed for local governments in his 17 years experience, to which Mr. Horn replied It would be a coUple hundred. Commissioner SaundeI3 questioned .if the proforma is an analysis of revenues versus expenditur2s and would this be routine for a cable company to file, to which Mr. Horn replied affirmatively. Commissioner Saunders questioned .if the proforma would be required if there were to be any financing or loans assoclated with construc- tion? Mr. Horn stated that it would be required as the Initial request is being evaluated to determine its liabillty and to determine it there is financial backing behind the company. Commissioner Saunders questioned .if requesting proformas is unu- sual. to which Mr. Horn replied negat~vely. In answer to Commissioner Saunders, Mr. Horn stated that his recommendation is that the Board obtain the necessary information before Telesat is allowed to operate. Commissioner Volpe questioned how much it would cost to service 28,000 Customers and run 280 miles of cable, to which Mr. Horn stated that it is Usually about $1,000 per subscriber. Commissioner Volpe stated that this could mean that in order to develop this system, it may cost between $30 and $50 milllon. Mr. Nick Miller with the law firm of Miller «Holbrook, Special Counsel to the County, stated that he has been actively involved representing municipalities in local governments in cable television tR I, Page 39 -- -- -,~ '_-'0_-'...., MAY 30, 1989 matters since 1978. adding that he has represented 80 different muni- cipalities in all different elements of cable television regulation. He stated that his law firm is currently representing the City of Los Angeles in a case on the fundamental issue of the first amendment and how it applies to cable television and franchising authority. He noted his firm is located in Washington, D.C. and they have been very active before the Federal Communications Commission and the Congress on behalf of municipal rights and the ability of local regulators to control the behavior of their local cable operators. He provided a resume for the Board which was marked as Colller County Exhibit #6. (Hote: Exhibit "6 was -lOt provided to Office of Clerk of the Board). He noted that he was hired as a supplement to the County Attorney's office to provide legal advice. He stated that the County is legally entitled to the information they have asked for. He reported that Telesat requested that they appear before the Board even though there was incomplete information. He indicated that the County has the right to know the legal, technical. financial and character qualifica- tions of anyone that seeks the abi 1 ity to operate in the public right- of-way. He noted that Telesat participated in the discussions regarding the ordinance that was adopted and they know that this ordi- nance provides specific criteria that the County needs to consider in issuing a franchise. Commissioner Volpe questioned if it is legally permissable for the applicant to provide the information in the context of this hearing, to which Mr. Miller stated that the Board has the discretion to take ~ additional information during this hearing. He noted that the Board should act on the assumption that they have the legal authority to .; approve this franchise or not approve it. He noted that no matter what the decision of the Board is, there is legal exposure to the County. He indicated that the way the law has been shaped in the last two years, the courts are giving great discretion to the local juris- diction to exercise their will as they choose. He indicated that this Page 40 bl ,," _. ø f f J MAY 30, 1989 is a legislative process and a legislative decision, noting that it is i not a judicial decision. He stated that the grant of a franchise is f 1 an exercise of the Board's police power, adding that the applicant does not have a statutory right to a franchise. He noted that they: have a constitutional right to due process, but that is different than f a statutory right to a franchise. 1 í Assistant County Attorney Wilson stated that most of her com~ents' t were presented by the three previous speakers. She indicated that the ,I Board can take information given this date and consider It and make a ,f decision, but that information is very detailed and has taken a long ,."',',,. 1 time for the consultant to digest, review, and report on it, a~d he : would not be given that opportunity to do this if the information was presented this date. She noted that Staff does not have the ability to make a finding if the application is incomplete and the applicant is claiming that the application is complete, which is where the problem lies. She indicated that the ordinance provides certain cri- I teria and makes general statements as to the role of the Board which l ¡ is a balancing task, adding that the goal is to provide efficient 4 cable television service to all the residents in a competitive manner; " ~ so that they are getting the best service at the best prlce with the .~ public interest. She noted that the public interest involves not having too many cable companies that there would ultimately be poor ~ ~ cable service. She indicated that the public rights-of-way have to be t protected also, adding tha~ presently there is enough room but this .f1 has to be taken into consideration. She stated that disruption ot . ¡ .1 service has to be taken into consideration as well as failure of a cable company and removal of their lines from the public rights-ot- way. She noted that one ot the important considerations Is promoting competition and there is a public need but the Board has to determine if there are other cable companies that would be interested or if I~ Telesat is the only company at this time. She indicated that Staft rt ¡ has worked as closely as possible with Telesat to get this lnfor- 't J (,I'~ P'O' 4. ; , " -- "--" --- --'------- ---. --"" ~ MAY 30, 19B9 mation. She reported that Collier County is a unique County and is very large and Staff feels that it was important to find out when and if different parts of the County would be served by a cable company and Staff has not been able to get this information. She stated that this is a critical concern and if Telesat cannot service parts of the I County, then possibly another company could. She indicated that" ), :1 n within the ordinance, a build-out of a service area is required, '~ adding that over a five-year period 25% of the project is to be built 11 and 15% thereafter up to 85% build-out within the five year period. 1 She stated that thoce is no diotincUon in the ordinance between .er- :¡ vice area and initial service area, adding that the ordinance refers !ì to the service area und~r the franchise, and franchise is defined as ,,1"/' the agreement. She noted that if they have a county-wide fr~nchise, , i . the argument could be made in the future that the entlre county should 'I' be built-out in the "ve-ye" pedod, She stated that this is a tech- I nical problem that she has with Telesat in establishing the initial J,'" 1 service area and only having to meet the 85% build-out over five years ¡c 1 ~ for initial service area by giving them a county-wide franchise. She ~, :' ~ stated that Staff has listed sever~l options for the Board's con- ~; sideration. /',. .: Commissioner Volpe questioned how nany cable companies there are h ~lll". ~~~, to ~l~ -, ~l- ,~- ~" - h- ~~- J is Palmer Cablevision and there is a130 Cablevision Industries as well j' as one that is operating in Immokalee and one in Everglades. She t' "ated that at the most the'e a'e five Companies that have tranchises. Commissioner Volpe questioned how many of these companies have 1 , authority to build throughout thp County, to which Mrs. Wilsen stated " . \ that Palmer Cablevision and Ca~levision Industries are the only com- f\ panies that have the county-wide franchises. Commissioner Vc¡pe questioned if there is any assurance that his constituents would receive service from Telesat, to whlch Mrs. Wilson replied negatively. Sh~ stated that the cable companies that are Page" & i .".'-.-. If , , q t , l-iAY 30, 1989 P ¡ , operating are under operating under franchise agreements and not under J¡ the ordinance. She noted that some of the franchise agreements are ~' old enough so that they had exclusIve franchises for their area. She I noted that Telesat's reluctance to commit beyond specific areas was based on the fact that no one else had to commit to this, so why Ii should they, She noted that Falmer and Cablevision Industries are i getting close to the end of ~heir franchise terms and they will have ~ to come under this ordinance. , . Mr. Bruce Anderson, ~ttorney, representing Telesat Cablevision, ' , Inc., stated that Mr. H~rry Cushing is also present at this time who Is '} the President of Telesat Cablevision and Attorney George Varnadoe, WhO! ¡ is the managing partner of the law office. He stated that Telesat holds a franchise for more than 20 other local governments in Florida, adding that there are approximately 2,000 cable companies throughout the nation and Telesat, who has approximately 61,000 subscribers is in the top 100 cable companies in the country and they only operate in ¡ the State of Florida. He indicated that in addition to local govern- ) ment franchises, Telesat also operates a number of private cable systems in Florida and they will agree in their franchise agreement ~ ~ that it cannot sell it's operations in Collier County without the prior i. approval of this Board. He stated that the Staff report and the con- sultant would lead the Board to believe that Telesat has flatly t refused to provide the relevant financial information as required by the Ordinance, adding that this is not quite accurate. He stated that Section 3.3(b)(4) requires a detailed and complete financial statement of the applicant for the preceeding five years or a letter or other written evidence from the applicant's funding source setting forth a clear statement of its intent to provide whatever capital shall be 1 required by the arplicant to construct and operate the proposed system ¡ < , in the County. He indicated that Telesat filed the five-year con- ~ i ~ solidate financial statement of FP&L Group, Inc. and within that sta- ]; tement is a separ~te statement for FP&L Group Capital, Inc. which is ïi I! ~t.'~ ~~ 0 .,.',~" " r - _.,-~ I MAY 30,1989 t( the entire funding source for Telesat Cablevision. He noted that they also provided the letter as required which was signed by the President of FP&L Capital making a commitment to finance Telesat operations in Collier County. He noted that Telesat's budget Is approved by FP&L Group Capital on an annual basis and they have specifically reviewed and approved Telesat's 1989 operating budget. He indicated that each year they review the budget for the following year. j I I: In answer to Commissioner Volpe, Mr. Anderson stated that this is f' ~ why a construction bond or Letter of Credit is required. He noted that this is the assurance that there is an adequate source of funds for the franchising authority to tap into in case the cable company runs into financial problems. He noted that it has been said that t Telesat is involved in several lawsuits throughout the State, adding ì : that this is true. He noted that Telesat is one of the few companies' in Florida that aggressively challenges the monopoly that has been held;. I for years by existing cable operators. He stated that 10 years ago, Palmer's franchise agreement was amended and they gave up their rights for an exclusive franchise in return for the County relinquishing its authority to regulate Palmer's rates. He indicated that one of the criteria in the ordinance is a concern about destructlve competition í è due to too many cable companies and his point is that in the event the. , 1 encumbent cable companies speak on this matter, they have already COn- . sented to competition. Tapa #0 Mr. Anderson stated that Telesat will be serving North Naples, East Naples, Golden Gate and Marco Island in a build-out sch~dule over the next five years. He indicated that he has contracts to provide service in the North Naples district that are dependent upon the! franchise being approved. He noted that the ordinance requires that 1 ¡ these new services areas be completed to 85% within five years after:. the franchise is granted and Telesat will comply with that. He stated I r that if the construction is not completed within the five years, then i ¡ i. I: I J,." ; "q Page 44 ~; I \ ¡ ,.- - MAY 30, 1989 the Board can withdraw a portion of their service area or the Board can revoke th~ir franchise. He noted that if construction is not completed, there will be a 110% construction bond that would have been posted. He indicated that there would also be a $100.000 performance bond that would have to be maintained throughout the 11 fe of the franchise, plus one year. He stated that no one realizes what a tough ordinance is on the books. He indicated that Telesat will be offering at least 40 channels of basic cable service at $13.95 and Palmer offers 30 channels and they charge $15.90 a month. Commissioner Shanahan questioned how much litigation is still pending, to which Mr. Anderson stated that there are 15 lawsuits still pending which is not uncommon in the cable industry. He stated that of the 15 lawsuits, Telesat is defendant in 11 of them and plantiff in 4 of them. Commissioner Volpe questioned how many of the 61,000 subscribers franch1se, ¡ are on a private system as opposed to a public system under to which Mr. Anderson replied more than 30,000 are franchise. Commissioner Volpe questioned if the entire county will be built- out over a five year period, to which Mr. Anderson replled negatively. He noted that the commitment is to provide service to approximately 28.000 holl¡es. Mr. John Blevins with Telesat Cablevision, stated that one of the deficiencies is the financial statements. adding that the financial statements are attached to Form "G". Commissioner Volpe questioned if the proformas are addressed as to how this franchise would operate jf approved, to which Mr. Blevins stated that these are actual projections for 1989 which he is c"!"rently tracking. He stated that there has already been In excess of $250,000 spent in COllier County this year. In answer to Commissioner Volpe, Mr. Blevins stated that ten year performas change and that is why they do not do ten year performas. He indicated that they would like to submit on an annual basis the ¡ " (p1 Page 45 '"' '"' "-""'-'--.-. - f MAY 30, 1989 business plan for that year based on an overall plan. He? noted that another item was whether they met the FCC criteria and there was a sample in the application, adding that they fully comply with all requirements and do the appropriate filings. He indicated that Form H of the application had 3 maps showing when and where they would build, adding that this covers a few items of concern and he would like to now begin his presentation. Recess: 4:50 P.M. - Reconvened: 5:00 P.M. at which ti- Depu~ Clerk Hoff.an replaced Deputy Clerk Kenyon Mr. Blevins provided a 15 minute slide presentation, which described Telesat, Inc., which began in 1981 by servicing condominiums and other private projects that were in the outlying areas of existing cable systems. He advised that in 1985, FPL Group, Inc. and FPL Group Capital heard about Telesat and decided to get into the cable busi- ness, and became one of the seven non-utility subsidiaries. He advised that all of the funding for Telesat comes from equity assets within the FPL Group Capital. He noted that Telesat currently has over 300 employees in the State of Florida, 20 franchises, and 30 systems in operation, the largest being in Orange County, which ser- vices over 12,000 subscribers. He reported that his company has built over 1,000 miles of cable within the State. Mr. Blevins indicated that he is requesting that the Board ot County Commissioners grant a County-wide non-exclusive franchise, and allow Telesat to compete with the other operators. He reported that Telesat will provide competition, starting in three areas, and then spread the service from those areas. With regard to Telesat's financial ability, Mr. Blevins advised that his company's strength comes from the consolidated group of non- utility companies. with reference to short term borrowings, he referred to the Annual Report, which was submitted as part of the application, and noted that FPL Group Capital has a credit line of $243 million. He .=tdvised that they have not yet drawn on that credit line. Page 46 ~r '-~',""~"M ...-..---.-..... MAY 30, 1989 Mr. Blevins referred to another slide: a letter from a Corporate Officer of Southeast Bank, which was prepared for a similar hearing. The letter states that Telesat has been a customer of Southeast Bank for two years, and maintains a balance in the low "7 figures", and unsecured credit facilities are available in the high "8 figures". Another slide, shown as an item of reference, is a letter from Barnett Bank, stating that they have had a long standing relationship with FPL Group and Telesat Cablevision, and they are one of their prime customers. Mr. Blevins reported that Telesat has $73 million in asset pro- perty, which constitutes the cable systems that were included in the application. He indicated that in 1988, they had in excess of $5 million in positive cash flow. Mr. Blevins advised that Telesat's application states that they will build a state-of-the-art system, that will be 550 megahertz, which is far in excess in terms of capacity of what is available by the operators today. He indicated that they have submitted from the Utility Notification Center which talks about Telesat's careful prac- tices in the rights-of-way in terms of placing the cable. Mr. Blevins stated that if a fran;:-hise is granted, Telesat would have to obtain licenses, permits, agreements, pre-engineering, mapping, engineering right out with all the right-of-way users and utilities, make ready of the poles and rights-of-way, locating of existing users, placement ar:d splicing of cable, and then finally, the hook up of subscribers. Assistant County Attorney Wilson advised that e:he has not received ~~y written documentation reports, including the slide presentation. She noted that Staff had repeatedly asked Telesat to provide finan- cial information to be reviewed by Staff, but they did not comply with this request. Commissioner Volpe que~~ioned whether Staff made any inquiries to the banks, etc. to verify the credit worthiness of the applicant? t/1 Page 47 ,-,. _._- '" . ...,.."'---.,.....-.---- ~ ~ , ¡ , lwlAY 30, 1989 Mrs. Wilson replied negatively, noting that Staff did not have any information provided to them, as to whom they could contact. Mr. Blevins stated that he believed that the information from FPL Group Capital, with addresses, telephone numbers, and contact persons, as provided in the application was sufficient, since this is where Telesat relies on its resources. He indicated that the information provided is supporting evidence of the parent company. Attorney Wilson indicated that it is inappropriate for Mr. Blevins to now provide the Commission with written copy of the slide presen- tation, since he did not comply with the 15 day requirement, as writ- ten in the Ordinance. Commissioner Saunde13 indicated that he understands the 15 day rule, but he feels that the material presented in the slide presen- tation is not technical in nature, and he does not believe that this would be creating a precedent which would create problems in the future for the Commission. Commissioner Volpe noted that Mr. Blevins made a statement that Telesat has $73 million in assets, and questioned whether a balance sheet is available? Mr. Blevins indicated that he does not have a balance sheet for Telesat, since they rely on the financing of their parent company. He indicated that b'~cause of the nature of their business, and because they are part of a publicly held company which shows total assets for each of the groups, that is what they provide to other jurisdictions. Commissione" Saunders stated that he is concerned with the fáct that Telesat is unwilling to provide their financial information, as opposed to that of the holding company. He questioned whether pro- ~ormas, or other financial information on Telesat has been provided to any other public body in the State of Florida? He indicated that he would like a copy of this information. Mr. Harry Cushing, President and CEO, Telesat Cablevision, advised that the information requested by Commissioner Saunders is highly Page 48 1" - "0 ,> MAY 30, 1989 proprietary information. He stated that this information was supplied to Dade County in 1986. He indicated that Paragraph 8 of the Franchise Agreement which is being negotiated, more than covers this, in that, it requires that 110% more than the amount of construction is to be put up. He noted that in addition, $100,000 will be provided to guarantee what Telesat will do for the County. He advised that Telesat is sharing with Collier County, the financial statements of > ; ¡ their funding subsidiaries. C:>mmissioner Volpe questioned whether there is an irrevocable Letter of Credit from the FPL Group Capital to provide the capital source? Mr. Cushing advised that he feels that Telesat has done better than that, since they are providing a cash performance bond that is equal to what they are committing to do in the Franchise Agreemen t. , Mr. Blevins displayed maps of the three proposed areas for ser- vice: Marco Island, the area north of the recently annexed area of the City, to Vanderbilt Beach, and the Fox Fire area. He stated that the initial area to be covered includes 13,000 passings, for a total of approximately $1 million for the first three areas, noting that some of the cable is already in place. Commissioner Volpe questioned with regard to delivering service to the expanding areas, which would include Planned Unit Deve.1opments, whether Telesat would negotiate an agreement in advance, to become an exclusive in an area? Mr. Blevins replied affirmatively, adding that this has already Occurred on Marco Island. He advised if Telesat does not continue to offer the best service for the best prices, someone else will. Mr. Blevins presented additional slides relating to economic impact and the public need. He displayed a memorandum from Osceola County stating that the response time of Telesat is excellent, and is normally taken care of within 4 hours. He advised that Telesat otters 3 outlets and for H a remote control $13.95. He displayed clippings 1/ Page 49 -- _. ,I ? MAY 30, 1989 ) from newspapers, including the Naples Daily News, regarding the com- petition of cable franchises throughout the State of Florida. In summary, Mr. Blevins stated that he believes that all cate- gories within the Ordinance and application have been complied with, noting that if there are any differences, they are minor. He advised that Telesat is more than willing to provide service to the citizens of Collier County. He indicated that there are currently 700 subscri- bers in Collier County, and many more people are waiting for Telesat to be granted the franchise. In answer to Commissioner Volpe, Mr. Cushing indicated that Telesat is committed, as per the Agreement, not to sell their system, or transfer ownership, ~ithout the approval of Collier County. He advised that they are willing to commit million of dollars to perform the service, and if they do not perform, the County can take their money. Attorney Wilson advised that a market study was done about employment projects, etc. for Collier County, but their was no rela- tionship made between that study and what Telesat intended to do. In answer to Commissioner Shanahan, Mr. Cushing stated that he was not privied to any discussions with Palmer Cablevision. He advised that Mr. Ryan of Palmer, initiated t:(')ntact to the parent company, FPL ¡ , Group, to discuss a partnership, but the offer was rejected, ; Tape #6 Commissioner Sa~nders stated that he does want to promote com- petition in the cable business, since it is good for the citizens in Collier County. He indicated that the consultants have stated that the proforma and financial information that they have requested from Telesat is not unusual information to request of a franchise appli- cant. He noted that he has not heard any indication as to why this information is unusual, except for the fact that Telesat does not want their competitors to obtain this information. He stated that he is going to request that the County Attorney obtain the information which 1t- Page 50 ,-,. "-"..-.",...".",...""",.....-,--.."",...",,..,,- "'-'. f MAY 30, 1989 was submitted in 1986 to Dade County, and then ask the consultants to evaluate that. Mr. Cushing replied that he has no problem in providing this information, since it is a matter of public record, but noted that most of the losses shown are paper losses due to heavy depreciAtion. He noted that Telesat has a positive cash flow. He stated that he does not know what the financial statements will tell the County. He indicated that what the County should be looking at is the type of fund~ng that Telesat has. ..... Deputy Clerk Kraft replaced Deputy Clerk Hotfaan at this tiae 6: 1~ P.M. ..... Assistant County Attorney Brenda Wilson explained that it is a t misconception that construction, performance and $100,000 bonds are in lieu of financial infcrmation requested. She pointed out that Staff assumed sufficient financial information would be supplied by the Companies applying for the franchise and their application would be complete. She explained that 110% construction bond, a standard used by the County in other phases of construction, and the $100,000 would be sufficient. She indicated that a 110% construction bond for the entire project was originally required, but at Telesat's suggestion, Staff amended the Ordinance requirem,~nts. She explained that, as a result, Telesat was required to put up 110% of each phase of the construction, not 110% of the entire construction project. Commissioner Shanahan raised the issue of the impasse created by I Telesat not providing its financial statements and balance sheet, and Staff's requirement that this information is essential. In response, Mr, Blevins questioned what the result of showing that information '¡ould provide, i. e. if Telesat had lost $3,000,000 in 1988, would that be a basis to deny the franchise and Commissioner Shanahan responded "Could be". Commissioner Shanahan stated that the County's ordinance requirps supplying the financial data and balance sheet in order for franchise approval to be given. In response to a question by Mr. Blevins, Mr. Horn indicated that a detailed financial plan for 13 Page 51 - ,.--....,...-...."--., - !i- I MAY 30, 1989 each year of the franchise, describing the projected number of t subscribers, rates, revenues, operating expenses, capital expen- . ditures, depreciation schedules, and income statements comprises the necessary data. Commissioner Volpe stated that a feasibility study is I what Mr. Horn is seeking. A discussion followed about specific finan- cial data. Commissioner Volpe summarized by stating that a detailed, application from a responsible lending ~ complete financial statement of institution addressed to both the applicant and county stating intent , to provide the necessary capital is what the County is looking for. Mr. Horn expressed his opinion that he did not think that was t provided. He read the letter provided by Telesat (copy not provided ( I to Clerk to the Board). Commissioner Volpe pointed out that capital commitment is limited to 1989, to which Ms. Wilson responded that com- mitment is required for the period of the franchise. She pointed out ¡ , ¡ that a letter from a financial institution or funding source would be sufficient. A discussion followed about the lending institution and its parent company. f Commissioner Hasse pointed out that competition in the cable tele- vision industry is healthy and questioned the hesitancy in providing .f the financial statement asked for. Mr. Blevins responded that Telesat I , has provided such a letter from Florida Power and Light Group. In response to Commissioner Volpe's question, Mr. Blevins replied that r commitment is $5,000,000 for the 5 year period. Attorney Donald Pickworth of Asbell, Hains, Doyle & Pickworth, representing Palmer Communications, noted that Anthony Kern from Malarchy, Taylor Associates, a cable television consulting firm, was present. A discussion followed about an article in the Naples Da i1 y News relative to the brokerage of cable television businesses. Mr. Anthony Kern of Malarcky, Taylor & Associates of Washington, , stated , D.C. that they conducted a study for Palmer Cablevision to ana- t lyze economic feasibility and research financial analysis. He noted that they had done the same study for a variety of cities throughout '}f I Page ~2 f ~ ¡ t .,....- -.,....,., .". ,......----...'" -", ~, ~ MAY 30, 1989 I the no"theast. 1. e. St. Johns. Jacksonv 111e. and Rockto"d. He '. displayed a book authored by Dr. Sam Book, President of Research, ~ relating to the definitive cable over-build study. He explained that ~ Collier County has 55,000 homes of which Palmer Cablevision serves 54,000 homes. He indicated that the premium pay channels, i.e. HBO, Showtime, comprise about 20 percent in the major cities, 59 percent ¡ nationally and 75 percent in Florida. He explained that palmer, charges $15.90 per month for basic service in Florida, the same as t nationally, not an excessive amount. He pointed out that if Telesat were granted a franchise in Collier County, it should operate and pro- f vide the same universal service Palmer does. He explained that Telesat would probably obtain perhaps 30 or 35 percent of Palmer's í subscribers. He pointed out that cable television systems incur high: ~ fixed costs to build cable plants and the cost is spread out over the i ! entire subscriber base, at a cost of approximately $20,000 per plant mile. He stated that as the number of subscribers increase, the cost to build the plant drops, and costs are allocated equally among all sectors of the franchised area, i.e. rural area subscribers pay the same as city subscribers. He pointed out that Collier County does not t j have the economic or market characteristics to sustain over-built systems. j \f l Mr. Kern indicated that Telesat will not build out the entire service area, and the typical cherry picking pattern will occur. He stated true competition does not materialize for the bulk of the population. ~ He emphasized that Palmer serves a large franchise area and he feels ~ that Telesat intends to cherry pick selective lucrative developments. He commented that the promise of competition is an illusion promoted by Telesat. He explained that Staff's concern about Telesat , t extracting itself f:'om Collier County shortly after entry is valid and , " consistent patterns of that exist in other Florida communities such as ~ t Riviera Beach and Hialeah. He displayed Channel magazine with a pic- ture of a tombstone depicting a merger in comparison to Telesat . ¡ /~ 1~": , , r Page 53 " ,"'_._"", MAY 30, 1989 obtaining the franchise. He mentioned a consistent pattern of Telesat ~ ~ operating a small, localized system and then selling it to Palmer in : the near future. In summation, he cited a report from the Department , of Justice on over-building and profits being negative because long term rates go up. Commissioner Saunders indicated that he would like a copy of the book Dr. Sam Book authored. He pointed out Mr. Kern's argument is for exclusive franchises which the County cannot provide. In rebuttal, Mr. Kern pointed out that the same service should be provided throughout the entire county by Telesat. Commissioner Saunders noted that the Ordinance does ¡Jrecisely that, but questioned how it can be enforced? Mr. Kern did not think it could be. Commissioner Saunders f questioned company sold Telesat? ' 3 areas an overbuilt out, was it Mr. I Kern responded "Yes, it was". Commissioner Shanahan questioned the number of communities across the country that had Successful over- f build? Mr. Kern believed it 12. Commissioner Volpe questioned . was . the cost of cable plant building, ranging from $700 to $2,000? Mr. Kern responded that he would never cost out a system for a mile ¡ of cable plan because some is aerial and some is underground, and ~ 1 the cost should be calculated by the r~turn from the cash flow. Mr. Kerns quoted an article from Cableworld Magazine mentioning the term "green mail", a Wall Street term for buying and hurting business until a payoff ~. . or a merger Occurs. f' Attorney Pickworth stated that Palmer is not anti-competition, but . the purpose of the County Ordinance is to promote effective com- petition. He emphasized that Palmer feels cherry picking is not , p'fective competition, and the Board of County Commissioners needs to recognize that effective choice should be the end result of this com- petition. I Mr. Rich Gunther, representing Cablevision Industries, 1665 S.R. Þ 472, Deland, Florida, complimented Mr. Horn's analysis of the applica- tion presented by Telesat and Staff's attempts to obtain information ~, 1? t~ f' Page ð4 j ~ t ;: .. tot MAY 30, 1989 ;i' ;; needed to process the application. He indicated that more information is sorely needed before the Board of County Commissioners can make a I decision to grant this franchise. He pointed out that Telesat has had a history of lack of performance illustrated by the incomplete appli- cation submitted ~o the Board of County Commissioners. He explained that an inadequate. inconclusive, incomplete, insufficient and unresponsive application should be denied outright. He commented that Telesat has agreed to put a bond up of 110% of what will be t constructed, but that bond actually amounts to $825,000, not millions , of dollars. He also mentioned a modification of the ordinance con- taining phases of construction in a specific amount must be divulged in order to obtain a bond. He stated that Staff has not extracted the ; necessary information for the franchise and neither has the Board of t County Commissioners. He noted that St. Johns, Sarasota, Riviera Beach, and Palm Beach are areas where Telesat applied for a franchise :/ '" 1 and later sold the franchise. Commissioner Volpe questioned the appropriate amount necessary for the purchase of the systems in q1lestion, to which Mr. Gunther replied that Telesat is asking $4,000 i from Cablevision for their subscription lists as opposed to $2,200 to ~ , > $3,200. He emphasized that the application should be satisfactorily , t completed in relation to the requirements of the ordinance. He pointed out that a clause should be inserted in the franchise i! disallowing Telesat from selling, assigning, par ti c ipa t i ng in a joint I venture or merging with any other company until build out is completed. The following peopl/>. spoke in favor of the franchise for Telesat í ci ting reasons a\3 follows: cable TV should be competitive, better \ cable television choices and service will result, cost will be lower, ' i' r Marco Island condominium owners reported their service for the past 5 r months has been excellent, Palmer Cablevision has been dishonest, rude and inefficient to the public until Telesat sho~led interest in pro- vi ding cable TV. cable monopolies should be eliminated, Palmer f 1 11 i. Page 55 ~ -; or ...... "'~o_",""""""" ,...,...""."0_.,,",, MAY 30, 1989 .~ Cablevision discriminates against Hispanics in Collier County by ~ censoring their speech and opinions, over-building simply means healthy cable TV competition, c~ble TV operators obtain 50% profits, WGN, taken off cable by Palmer Cablevision, a favorite baseball channel was brought back after numerous petitions were repeatedly sent to Palmer, J and cable TV service and billing system of Cablevision in Golden Gate I is poor. , , Carl Smith, representing Marco Island Civic Association ~ Victor Valdez, representing Hispanic Chamber of Commerce Ed Cooper, Vice President Marco Island Civic Association ~ William Snelling, Golden Gate Estates Co.aissioner Hasse .vved that the Board of County Co..1..ion.r. ~ grant Tel.sat a franchise for Marco Island, Ea.t Naples and Northwest ~ 1 Naple. (Vanderbilt area). , A discussion followed about 11 criteria set forth in the Ordinance. Commissioner Saunders explained the options available to the Board t~ of County Commissioners: 1) rule on the application tonight, 2) con- . . tinue until odditionol infoemotion is obtoined, oe 3) follow option. ~"""~ submitted by County Staff. He stated that Mr. Kern's presentation was &i convincing, but did not Support his suggestions. He pointed out that I. Mr. Kern's response to one of his que~tions changed his opinion. He ! pointed out that Mr. Kern stated "It is not possible to get a guaran- ~ tee from any cable company that they will provide service throughout \ ! the entire county." Commissioner Saunders explained that the con- I ~ , tinuation of a monopoly cannot be permitted, and resolving those' situations can only be accomplished by granting the franchise. He , ~ pointed out that no other cable companies have expressed interest in a ~ franchise for Collier County. t County Attorney Cuyler stated that a discussion relating to the . size of the franchise is essential. Commissioner Hasse suggested utilizing the four areas as a beginning. Commi$sioner Volpe commented that certain specific fin- dings are required that are not in the franchise application. Commissioner Saunders discussed the potential for disruption of ~ IJ I N~ ~A it .. I, ~, MAY 30, 1989 future service by competition. He explained that permitting any cabl~ operator will create an over-build situation; and that creates a mono- poly. He pointed out that if the Board of County Commissioners suggest that destructive competition is equal to no franchise, another franchise cannot be granted, and there is no solution for that. * Commissioner Volpe noted that the franchise will insure good, healthy competition. In response to Commissioner Saunders, Assistant ~ County Attorney Wilson stated that the County does not know why Cable- '. ~ vision Industries and Palmer have not chosen to compete against each ~. other, Commissioner Saunders questioned if Cablevision Industries was aggressive in serving other areas? Ms. Wilson responded that, except for Golden Gate. she is not aware of any other areas they serve. Commissioner Saunders questioned how long Cablevision Industries had been operating and Mr. Ted Campbell. Southern Division Manager for Ca,. ,vision responded "Since 1986 and we have 350 miles of plat in Collier County". Mr. Campbell noted that Cablevision Industries' philosophy is never over-building another cable operator. In response to Commissioner Saunders'. ;~r. Campbell admitted that Cablevision would not go head on against Palmer because economically it was not feasible. 'I ,f Tape.7 IJ¡ ~ Commissioner Shanahan suggested considering a different approach. He explained that he is vitally interested in a competitive package for Collier County, b'.lt he is not sure all the details have been j, ~ disclosed necessary to make a decision. He recommended granting a ' limited franchise to Telesat for the Marco Island area. He empha- sized that the franchise should contain a guarante~ protecting the r.'Junty and its residents from a commercial failure. Commissioner Goodnight concurred. She reiterated that the lack of financial infor- mation was a serious problem. Commissioner Volpe disagreed and stated ~ that if the information is not available and the proformas have not :' been provided, the Board of County Commissioners should make Telesat 'I 11 t Page 67 ~.~ _._-- - - . - - --' ., .""- "'--"""""~"-""-' ~' ,.' MAY 3D, 1989 return with an application properly ~.~pleted. He continued that at that time they can come back to the Board of County Commissioners for the franchise and the County will have assurances a financial price will be paid if they fa]] short of their goal. He noted that they have planned a build-out in 3 to 5 years to include Park Shore and Foxfire and pointed out that Naples is a totally different community " than Marco Island, He emphasized that Marco Island is primarily con- dominiums with a seasonal population, and the County needs to see what Telesat can do where the bulk of the people are, not in just a limited area. He pointed out that the County must extract a financial commit- ment from Telesat and Telesat cannot focus on one area. He remarked that no other cable company has stepped forward to co~pete with Palmer ~ and, to his knowledge no other cable company has any intention of doing that. He specified that the Board of County Commissloners must be satisfied that this is a company of integrity or the franchise should not be granted for Marco Island or Park Shore. Commissioner Hasse pointed out that the same cable television company has been in Golden Gate for 8 or 10 years and that condominiums on Marco Island have Telesat now. Mr. Ed Cooper stated that 7 condominiums on Marco Island have Telesat and 4 or 5 more R~e prepared to sign with Telesat when the franchise is granted. ~ Mr. Cooper explained that homeowners have called him regarding Telesat, and pointed out that parceling out cable service creates com- petition. Commissioner Shanahan questioned if the homeoJoffiers were calling because of a bulk rate and Mr, Cooper responded, "No". Commissioner r;1anahan expressed his opinion that other cable companies are not flocking to Collier County. Commissioner Volpe stated that he was inclined to support Staff Recommendation No. 1, a short term county franchise conditioned upon adequate performance and adequate engi- neering information. He advised that the Board of County Commissioners, as a regulatory authority, should see if Telesat per- tÐ Page 58 """,0_- .~",.....,..."...""."._..._.."""._.",,-- ~ '~. ,. MAY 30, 1989 forms and allow them a monopoly in a limited area which should create community wide competition. Commissioner Saunders concurred. Commissioner Saunders questioned if staff uncovered any service problems in other communities and Mr. MacKenzie responded that service is one of Telesat's strong points. Commissioner Saunders asked Attorney Varnadoe, as a representative of Telesat, if Tel~sat had any objection Commissioner Volpe's recom- mendation that the Board of County Commissioners issue a short term county wide franchise based on certain conditions? Attorney Varnadoe responded that the initial up front investment in laying cable, which has to be amortized over a period of time, would create a problem. He i~ suggested a county wide "ranchise limited to the 3 areas Telesat requested until Telesat proves itself. Commissioner Saunders replied that would alleviate his concern of cherry picking. Commissioner Volpe questioned the capital commitment by Telesat of $750,00n amortized over a period of time. Commissioner Saunders noted encompassing 27,000 homes is a 5 million dollar commi tmer. t to be bui It out within 5 years. Assistant County Attorney Wilson emphasized that the Board of County Commissioners understand the County o~ly has authority to require 85 percent build-out and 35 or more homes street road þ per per " mile is not buildi:1g into the full area. She pointed out that Marco Island single family homes will not meet the 35 homes per month per street and road mile criteria. Commissioner Volpe stated that the terms of the Ordinance require initial service in the 4 areas. He emphasized that the~r business plan identifies primary and secondary service in the~e areas and com- mitment as to when and how they perform these services is essential. Assistant Attorney Wilson noted that there is provision in the Ordinance allowing toe franchise holder to go into other areas with less than 35 homes per road and street mile, but if Telesat decided to do that the Board could structure this franchise agreement obliging ~J ; J'!. Page 59 .-...-. MAY 30, 1989 them to come before the Board of County Commissioners with required financial stability. She also pointed out that Staff asked for finan- cial safeguards beyond the 110 % construction bond and $100,000 per- formance bond. Commissioner Volpe reiterated that he could see no disadvantages to going with Option 1. Commissioner Saunders reiterated his concern about cherry picking. He pointed out that at the end of 5 years the Board could take the franchise option away, but pointed out that remedy was taking away areas that Telesat did not want. He co~curred with Attorney Varnadoe's suggestion granting initial and secondary service and indi- cated that, based on their performance in 4 or 5 years, the Board could then decide whethLr or not to extend the franchise. Commissioner Volpe stated that the Board could control the areas they could enter, but County Attorney Cuyler responded that Staff did not recommend this. In response to Commissioner Volpe, Commissioner Saunders recom- mended that Telesat provide service to 85 percent of the 23,000 homes displayed on the map, except for streets without appropriate density. Commissioner Saunders stated that the Board can set any time limit they choose. Commissioner Volpe questioned Telesat selling their franchise, but Commissioner Saunders '1oted the Ordinance requires written approval from the Board of County Commissioners to sell or transfer the franchise. Commissioner Volpe and Commissioner Saunders emphasized an agreement holding the County harmless from any and all litigation must be provided. Commissioner Volpe questioned financial guarantees required to insure performance and Commissioner Saunders replied that the Ordinance includes that requireme'1t. Assistant County Attorney Wilson questioned Staff's right to obtain financial information from Telesat and Attorney Varnadoe stated that Telesat has no objection to a Financial Analyst trom the County examining its books. He pointed out that Telesat's sole reason for not furnishing that information is to insure that other it-- Page 60 ".--".-,..,-.,.............".,..".....,..............-. - .j,¡ MAY 30, 1989 cable companies not see their financial statements. In response to Attorney Varnadoe, Commissioner Saunders stated he would not limit the County to guaranteeing an extension be granted after the 5 year period. Attorney Varnadoe stated that the Ordinance provides cancellation if Telesat does not provide the 85 percent build-out. Commissioner Shanahan asked for clarification of the areas and the time frame. Mr. Blevins rep 1 i ed that all the blue on the displayed map will be completed in 2 years; Marco Island, East Naples and Northwest Naples (Vande rb il t area), and the yellow will be completed in years 3 through 5, but he does not know which areas. Commissioner Volpe mentioned the time and effort Staff spent on this franchise and the last 5 hours listening to the evidence, but he would like staff and/or consultants' comments. Attorney Wilson stated that the Board should address consultants fees and Staff would like advice from Mr. Miller and Mr. Horn. She emphasized that $10,000 not $25,000 was the application fee and 7elesat is still responsible for the fees incurred today. Mr. Horn responded that wi th 5 or 6 hours of testimony he recommends not nego- tiating details at this time. He explained that many factors are involved, financial, level of expectancy, market available, etc. He pointed out that condominiums are a 100% penetrated system which is ideal for any cable company and bulk owners pay much of the cost for cable TV. Commissioner Volpe questioned what kind of financial guarantees would be appropriate? Mr. Horn responded that the letter from the parent company FPL Group does not provide a commitment. Commissioner Volpe questioned a 5 million dollar letter of credit .or that period of time and asked if the Ordinance limited the amount the Board of County ~ommissioners could require. Attorney Wilson responded that the letter did not guarantee the resources would be committed without any question when needed. Commissioner Saunders stated Commissioner Hasse has a motion on " 91 Page 61 '",,- . ".."_.,,., , ",,-,- MAY 30, 1989 the floor to approve the franchise, but he would like him to amend it. He noted that Staff's only complaint is lack of financial information and Telesat has proved good service to other communities, however, Mr. MacKenzie pointed out he said that the customer service is good. Commissioner Saunders suggested amending the motion to reflect granting the franchise for the blue and yellow areas on the displayed map and Telesat will have to come back before the Board of County Commissioners to expand their franchise. He suggested granting the franchise based on receipt of 1) Hold-Harmless Agreement indem- ni fying CoIl ier County, 2) an acceptable financial guarantee provided to Staff for the $5,000,000 commitment 3) an agreement not to sell the franchise without prior written consent of the Board of County Commissioners, which consent can be withheld at their discretion, and recommended continuing thiG hearing until Staff negotiates the franchise to accommodate these recommendations. Attorney Cuyler stated that the Board is approving the franchised application subject to the agreement. Commissioner Saunders concurred. In response to Commissioner Volpe, Commissioner Saunders stated he would not impose a time limit because the Board of County Commissioners can revoke the franchise. Attorney Cuyler suggested allowing the time limi t be sub- ject to negotiation, and stated that Staff is not interested in a long -cerm franchise, renewal provisions are available. '~ C0881asioner Hasse aoved, seconded by Co..1ssioner S.un~ers ., approving the franchise subject to Staff's ~ranchise Agree.ent. Commissioner Saunders emphasized that unless the appropriate guaran- tees and terms are in the franchise agreement his vote in favor of the franchise is not a guarantee he will vote in favor of the franchise agreement when it is brought back to the Board of County Cc'"1miss ioners. Commissioner Shanahan concurred. Commissioner Volpe ! indicated he was comfortable with the motion. and commended Staff on the work done on a very complicated application. Commissioner Saunders noted that Staff still has to negotiate the franchise, and if ~1 Page 62 ~ ' .n --, ".......,..., '"'0""""" ,....,_...._,.......,.. MAY 30, 1989 the franchise is appropriate, the Board of County Commissioners will grant the franchise; therefore the 30 calendar day period for accep- tance of the agreement in the Ordinance is not applicable. A discussion followed about a date for the franchise agreement to be granted. County Manager Dorrill indicated that he thought it could be prepared by July 18, 1989 when the Board of County Commissioners returns from their recess. He emphasized a letter of credit is crucial and must be drawn to the satisfaction of the County Attorney with value determined by consultants. He stated that he was not sure it that should be part of the motion. A discussion followed about letters of credit, sale provisions and hold harmless lndem- nification. CO88i..ioner Haase aoved, seconded by Co..is8ioner Saunders and carried unani80U8ly, that Telesat be granted a franchi.e subject to Staff'. Franchi.e Agree.ent. It- ft.. FIKARCIRU OF BORTH MAPLES ROADWAY MSTU PRO:JECT - PUBLIC HEAftIRG DATE CII.ARGKD rR OM .roL Y 3, 1989 - TO .roLY 6, 1989 AT 9:00 A.M. ... There being no further business for the Good of the County, the meeting was adjourned by Order of the Chair - Time: 8:32 P.M. BOARD OF COUNTY COMMISSIONERS/ BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL b~ BURT L. SAUNDERS, CHAIRMAN ~:'TEST: JAMES C.GrLES, CLERK ~ ' .,." "L ",'" (,/ it ' ;~~.,~ , , ',', 2.7 ;J, , 'r, :r::p~ ,/ ~~U~' ¿{) C '~..These minutes approved by the Board on .J--~ /~ r"J.r;7 as presented ~----- or as corrected . /' ~5 Page 63 \ I --.--,......... ."._..__._--~." ..- -