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BCC Minutes 12/19/1985 S .. .. - ./ Naples, Florida, December 19, 1985 LET IT BE REMEMBERED, that in accordance with action taken on December 10, 1985, 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 di£tricts as have been created according to law and having conducted business herein, met in SPECIAL SESSION on this date at 1:00 P.M. in Building "F" of the Courthouse Complex, East Naples, Florida, with the following members present: CHAIRMAN: John A. Pistor VICE CHAIRMAN: Anne Goodnight Frederick J. Voss Max Hasse C. C. "Red" Holland ALSO PRESENT: Willian J. Reagan, Clerk: James C. Giles, Fiscal Officer: Maureen Kenyon, Deputy Clerk: Donald B. Lusk, County Manager: Neil Dorrill, Assistant County Manager: Pam Brangaccio, Assistant Deputy County Manager: Burt Saunders, County Attorney: Vickie Mullins, Community Development Administrator: Tom Kuck, Public Works Admini- strator: Robert Fahey, Solid Waste Director: Sherry Rynders, Risk Management Director: Nancy Israelson, Administrative Assistant to the Board: and Deputy Chief Ray Barnett, Sheriff's Department. bOOK 091mt49g Page 1 - - - December 19, 1985 Tape n I tea tl CONTRACTS AND DOCUMEIfl'S NECESSARY TO COMPLETE PILING OP THE 82.5 MILLIOtf DOLLAR WATER/SEWER REVENUE REFUNDING BOND ISSUE - CONTINU!D TO DECEMBER 20, 1985, AT 9:00 A.M. Mr. John Muse with PaineWebber, Inc. stated that currently the bonds are in the market for the water/sewer revenue refunding bond issue and they have been released this date, adding that he expects to have a final price by December 20, 1985. He noted that the Tax Bill was in ~uestion as to whether the refunding could be ~one after the end of the year, noting that the Tax Bill did pass in the House. He reported that they decided to ~et the bonds into the market at a prelir.inary interest rate, ad¿ing that the deal size is $3S million which includes $25 million of refunding bonds and about $10 million of new money bonds for the new project. He stated that it is structured with three term bonds in 2000, 2005, and 2015 and the interest rate respectively is 8-5/8\, 8-3/4\ and 8-7/8\. He stated that this is a unique financing and it will be put into escrow for 130 days and during that period of time, he will be able to proceed with the validation of the bonds, the appeal procedure that is being undertaken currently, and hop,) to finalize that procedure by the end of 180 days. He noted that if the appeal is not won, the bonds would have to be called and if that occurs, the County will have recouped all of the cost of issuance. He noted that the amount of bonds that are being issued is approximately $36 million which is refund all of the outstanding obligations that are refundable, plus to fund approximately $7 million of new construction cost for the new project which is primarily the expansion of the County's regional water plant. He stated that there is no action needed on this item at this time, as the approval has to wait until December 20, 1985, when the final rates are available. Com.i.sioner vo.. aoved, seconded by Co..is.ioner Bas.e and carried unani.ously; that this portion of the .esting be continued until Dec..ber 20; 1985, with a ti.e being announced later in the .eeting~ Ite. t2 RESOLUTION 85-273 SUPPORTING THE CONTINUING COMMITMENT OP COLLIER COUNTY'S FAIR HOUSING PRINCIPLES - ADOPTED Community Development Administrator Mullins stated that Collier County has practiced and endorsed fair housing commitments through its &ODK 091 w.( 502 Page 2 091' 50~' December 19, 1985 bOOK 'Ar.r Comprehenll e Plan and the New Horizon Strategy. She stated that failure to publicize and document a program endorsing Fair Housing could result in point reduction of the Block Grant Program application being submitted to DCA this ~nth. She stated that in order to be eligible for these points, and more importantly to make public the County's dedication to Fair Housing, she is requesting that the Board adopt a resolution supporting the continuing commitment of the County's fair housing principles. Co..i..ioner vo.s aoved, .econded by Co..i..ioner Has.e and carried unaniaou.ly; that Resolution 85-273 supporting the continuing co..it.ent of Collier County'. Pair Hou.ing Principle. be adopted. -'-- Page 3 - - - ,~,~"_",',",'"*~"'__;,,_,,_,...._"""__,,_,,.._.,~'" .,_ -_·.~.,,__"'"_~..á".·.'.,.,.·"".~,··,_" ...... , - .. - December 19, 1985 Ite. t3 RESOLUTION 85-274 AUTHORIZING SUBMISSION OF APPLICATION '1'0 DCA UNDER 'l'RE HOUSING CATEGORY OF '!'HE SMALL CITIES COMMUNITY DEVELOPMENT BLOCK. GRAN'T PROGRAM - ADOPTED Community Development Administrator Mullins stated that this is the application for the Blo=k Grant. Co..issioner Voss aoved, seconded by co..i.sioner Goodnight and carried unani.ously, that Resolution 85-274 authorizing sub.ission of the application to DCA under the Housing Category ~f the S..11 Cities Co..unity Develop.ent Block Grant proqra. be adopted. &OOK 091 P'\~( 506 Page 4 Itn .~OK 091 pJr,( 517 December 19, 1985 COUNTY ATTORNEY TO DELAY E1fl'ORCEMENT BY STATE ATTORNEY UNTIL AFTER JANUARY 7, 1986, RE DETERMINATI01f OP TEMPORARY STRUCTURES IN IMMOKALEE Commissioner Goodnight stated that in the past month, Immokalee has had an excellent growing season and t~ere have been farmers that have had to put temporary structures in to help them t~rough the growing season and according to the zoning they are legal but according to the fire codes, they are illegal. She stated that she thinks that something needs to be done so that they can be helped out until the growing season is over and they can build some permanent strúctures. County Manager Lusk stated that there are certain types of structure. that could be approved, like Type VI stT.uctures instead of Type V, which is what the trailers are. He notdd that part of the problem is that the enforcement people have already sited them and if the Com~ission would like to study this matter, the County Attorney can delay the enforcement as far as going to court. He stated that he is recommending that this be postponed until January 7, 1986, and at that time, there will be an item on the agenda that can be acted upon. Assistant County Manager Dorrill stated that no Board action is needed, adding that this matter may be able to be presented to the Bldg. Dept. Board of Adjustment and Appeals. He stated that if this is the case, he will report back on the status of this matter at the next meeting. He stated that he is indicating that thene people will not be further prosecuted. County Manager Lusk stated that the consensus of the Commission is obvious and they will take steps accordingly. It was the general consensus that the County Attorney be directed to delay enforce.ent by the State ~ttorney until after January 7, 1986, until a determination can be made l'e?arding temporary structure. in I_okal.e. Ite. '5 AVIATION LIABILITY INSURANCE COVERAGE - AWARDED TO U. S. PIRE INSURANCE CO. WITH $5 MILLION COVERAGE AND WITH 10' WAR ENDORSEMENT Risk Management Director Rynders stated that aviation liability insurance coverage needs to be awarded at this time because the present policy will cancel on December 31, 1985. She stated that there is one option which is what is called a war endorsement that covers several disturbances, riots and high-jackings and for 10\ more, that endorse- ment could be purchased. Page 5 - - - .. - .. December 19, 1985 Deputy Chief Ray Barnett stated that it is a judgement call and there have been riot situations, noting that for $2,100 it is good coverage to have. In answer to Commissioner Pistor, Mrs. Rynders stated that it has to be decided whether the endorsement is to be added or not before December 31, 1985. Commissioner Holland stated that there was $1 million coverage last year and questioned why it is being recommended that the aviation liability be increased to $5 million this year? Mrs. Rynders stated that last year there was also a $5 million umbrella coverage which ca~e in over and above thn $1 million aviation liability coverage, adding that the umbrella cover~ge is not available now. She stated that aviation is a high risK ccea, adding that it is better to carry high li.its. She noted that the umbrella coverage expired on October 1, 1985, and it was not renewed. She stated that she is working on getting a high coverage and an umbrella along with it if the County self-insures, adding that she is still looking to buy an u~brella if possible. Commissioner Holland questioned if this liability is on both helicopters, to which Mrs. Rynders replied affirmatively. Co..issioner Holland aoved, seconded by Com.issioner Vo.s and carried unanimously, that the aviation liability insurance coverage b. awarded to U. S. Fire Insurance Co. with $5 .illion coverage and with the 10~ war endorse.ent. Ite. '6 AMENDMENT TO CONTRACT FOR OLDER AMERICAN ACT TITLE III-B GRANT _ APPROVED Public Services Administrator Norton stated that this is normally a very routine item, but unfortunately the Area Agency on Aging has requested that the County make an amendment to the existing contract by December 3l, 1985, which is why this item was placed on the special agenda. He stated that there is no change in the total funding in the grant or the County match, adding that it is a shuffle of dollars on paper and he is recommending approval. Co.missioner Has.. .oved; seconded by Co..issioner Holland and carried unaniaously; that the ftmendment to the contract for the Older American Act Title III-B grant be approved. ~~o~ 091 W.f 518' Page 6 December 19, 1985 Tape .2 &OOK 091p~r(52·1 Ite. '7 J RESOLUTION as-275 AUTHORIZING CHAIRMAN TO EXECUTE SERVICE AGREEMENT WITH COLLIER COUNTY AND RESOURCE RECOVERY OF COLLIER, INC. FOR CONSTRUCTION AND OPERATION OP A RESOURCE RECOVERY FACILITY AND OTHER DOCUMENTS NECESSARY TO COMPLETE FINANCING OF THE PROJECT - ADOPTED. BIDS AWARDED RE RESOURCE RECOVERY PROJECT. BOND PRINTING - APPELLATE: OFFICIAL STATEMENT PRINTER - SOS FINANCIAL PRINTING: TENDER AGENT- CHEhICAL BAN~, AND TRUSTEE - CITIZENS AND SOUTHElUl RATIONAL BANK - APPROVED Commissioner Pistor stated that the purpose of this item is to discuss the contract which has essentially been de~ided upon, ad~ing that this matter has been discussed for a great áeal of time over the past two years. He stated that the details of the contract will be discussed and any deletions or additions to it. Assistant County Manager Dorrill stated that this contract has been available for a number of weeks and it has been indicated at every public hearing that copies of all drafts were available. County Attorney Saunders stated that the purpose of the meeting is to present the final draft of the Service Agreement to be executed by Collier County and Westinghouse Electric Corporation. He stated that he has submitted a resolution which authorizes the Chairman to execute the Service Agreement upon it being executed by the dummy corporation Resource Recovery of Collier County, Inc. and upon the condition that there is a satisfactory guarantee agreement from the Westinghouse Electric Corporation. Commissioner pistor stated that he would like the cap on the tipping fee discussed. County Attorney Saunders stated that as far as the guaranteed service fee is concerned, Page 1-24 is the substitute page for Schedule 1, which contains the guaranteed maximum tipping fee for years 1 through 20 and it also lists the elements that could go into raising the tipping fee and those elements are very limited. He noted that there are three items listed and the first item is the events to the extent caused by the fault of the County, the second item is Acts of God, including hurricanes but not including reasonably anticipated weather conditions in the geographic area of the facility to the extent not c~vered by insurance, and the third item is matters set forth in Paragraphs 3, 4, 5, and 9 of Schedule 4 which is the pass-through scheiule and is Page 4-1 of the schedules at the end of the contract. Commissioner Holland questioned if the company would carry Page 7 .. .. - - - - December 19, 1985 insurance with an investment the size of this, to which Mr. Saunders stated that there is a schedule that lists significant insurance coverages that are required to be carried by the Developer and there will be a substantial amount of required insurance. He stated that that particular schedule is not in final form and he will still be negotiating with the Developer after execution of the Service Agreement. In answer to County Manager Lusk, Attorney Saunders stated that the estimated tipping fees that have been provided ~nclude cost for insurance but they may go up depending on the i~~~r~r.ce market. He stated that the tipping fees control inflation and interest rates. Mr. Saunders stated that the inflation escalator is at a 7' cap for the first ten years, adding that if the County feels that the actual increase in cost due to inflation is less than 7\, the County can require the company to provide the actual increase in cost and the County can take the lesser of those two. He stated that years II through 20, the e1calator changes but there is still a cap on the maximum amount that can be attributable to inflation and there is a maximum tipping fee that would prevent the inflation escalator from increasing the tipping fee above a cer~ain point. Commissioner Holland questioned the water COtt, to which Assistant County Manager Dorrill stated that there are several costs to prepare the site where the facility will be at the landfill, adding that there is the electrical interconnect, the access road and scale house facility to be built, water facilities pipes and or pumps that would pull water from a water retention pond and wells on site: and a waste- water package treatment plant. He noted that the current agreement for those site-related improvements would have the Westinghouse Corporation paying for the realignment and construciton of the new access road and scale house and the County has the obligation to do the other three site-related improvements. Mr. Saunders stated that the on-going water expense during the oper~tion of the facility would be a cost to the County. Mr. Dave Gayser of Westin~house Electric Corporation stated that Schedule 29 indicates that the source of make-up water for the resource recovery plant will be raw water from retained surface water run-off, suppl~mented by shallow pump wells in the dry season. He noted that the hardness and iron in this will be reduced in a solids recirculating clal~ifier by feeding lime to the clarifier and providing an aerator to !OOK 091 P1r.r 522 Page 8 --.. ~"'.,..,...", bOOK 091plr,c523' December 19, 1985 acrate the inland stream. He noted that the estimated average quantity of makeup water required for these sources is as follows: cooling power make-up, 705,600 gallons per day: boiler make-up, 12,500 gallons per day: showers, 100 gallons per day: and potable water, 25 gallons per day. He reported that the lIIajority of the water being used is in cooling power make-up water which is taken from retained surface run- off plus shallow wells. Mr. Saunders stated that in the contract it is clear that the purpose of pelletizing is to avoid the diversion of waste from the facility to the landfill during periods of schedulp.d and unscheduled shut down of the facility, adding that as far ð~ the amount of waste that will be pelletized, and for which the County will be charged, the Company and the County will agree in good faith pr~or to the commence- ment of each contract year, as to how much waste will be pelletized for purposes of aborting diversion to the landfill. He stated that the charge for the County will be $12.00 per ton for the municipal solid waste going into the pelletizing process and the efforts are to keep those charges to a bare minimum and the ma~tmum will be agreed upon at the start of each year. County Manager Lusk stated, with reference to the scale house and the road, he wants to be sure that in the contract it says that Westinghouse will build that scale house and the road to the County's specifications, at a cost not exceeding a million dollars. Mr. Gayser stated that they can build the scale house and the road to the County's specifications with or without a cap. Mr. Saunders questioned if that cost will be included in the schedule of capital cost and no increase, to which Mr. Gayser stated that that is correct. County Manager Lusk stated that with a maximum on the tipping fee he feels a lot better about the contract, adding that he also wants to be sure that some of the variables he had concerns about ended up in the contract. He noted that he was concerned with the revenues that the County receives from Florida Power & Light as far as the price of electricity, adding that the last he understood Westinghouse was agreeing to support the price to bring it up to S.75¢ in years that it fell below that figure. Mr. Saunders stated that there is a list of anticipated cents per kiluwatt hours per year for the 20 year terlll of the contract, and the County will bear the risk of the electric rate being as much as 6\ or Page 9 .. .. .. .. - .. December 19, 1985 less below that schedule. He stated that if the revenues fall below that 6\ amount so that the County is in th~ range between 16' and 6' below the estimated schedule, then Westinghouse will bear that ris~ 100\ and they will have to supplement the County's lost electric revenues because of that reduction in value. He stated that if the electric revenues drop below the 16\ level, then the risk goes back to the County, adding that it seems unlikely th~t the electric revenues will be less than 16\ of the projected amounts. He stated that in addition to that the maximum tipping fee would be the over-riding cap on the tipping fee even if the electric revenue dropped below the 16\. He reported that if during the early years, Westinqhouse has to supplement the lost energy revenues because of a r~duction in the price per kilowatt hour and ultimately the price per kilowatt hour increases above the estimates on the schedules, then Westinghouse would recoup their investment at the rate of 2-1/2 times what they paid in during the lean years. After general discussion regarding Westinghouse recouping their investment at the rate of 2-1/2 times what they paid, County Manager Lusk questioned if Westinghouse was paid within five years of the time that they subsidize, would they be willing to charge the prime rate for those five years and if it is any longer then that, they could get the investment back at the rate of 2-l/2 times? Mr. Gayser replied affirmatively to this type of formula and the Commission indicated their approval to such a formula. Commissioner Pistor questioned what the rate for the power purchase guarantee will be, to which Mr. Gayser indicated that the first year will be 6.12, the second year is in the range of 6.5, the third year is over 7, the fourth year is 6.11 and the fifth year is back up and moving up from there through year 20. Tape 13 In answer tc Commissioner Hasse, Mr. Saunders indicated that the dummy corporation was set up for the purpose of the tefra hearing and the reason for setting up a dummy corporation was to get the state allocation for the industrial development bond issue and, at that point in time, there was no vendor. He stated that Resource Recovery of Collier, Inc. and Shawmut will execute the document and there will be a agreement from Westinghouse Electric Corporation guaranteeing all of the conditions of the document and the performance of Resource Recovery of r.~lller, Inc. and Shawmut Engineering. He stated that if there is a 800K 091 w.r 524 Page 10 ~o~~ 091pm525 December 19, 1985 proble~ with performance under this contract, the County will be able to go directly to Westinghouse Electric Corporation. C~unty Manager Lusk stated that this contract has hi. support and he would recommend it to the Commission. The following people spoke against entering into the contract with Westinghouse, citing the facts that Westinghouse should be willing to take all losses as a business venture: that the contract should protect people from foul odors: environmental concerns: pollution concerns: and the lack of sufficient time for the citizens to review the contract: as well as giving exclusive rights of garbage collection: Joe Grimm Bob Krasowski Jan Krasowski The following people spoke in favor of the contract with concerns regarding the tipping fees going up if new State or Federal laws are passed, and the fact that there is a possibility that the plant is being overbuilt, as well as concerns regarding the guaranteed ~unicipal &olid waste: Randy Warren Tom Shields Myron Richards John Cagle The following people spoke completely in favor of the contract, Westinghouse Electric corporation and the resource recovery plant, citing the fact that this is a worthy project: r.athleen Ennis Tape 14 Charlotte WestMan Sloane Robbins Mr. Saunders stated that the contract states that the plant has to meet all State and Federal requirements and if there is a change of law that requires some capital expenditures, then there will be an increase in the tipping fees to reflect that. Commissioner Voss stated that the County needs to get rid of the landfill and the proposal being presented is the one that is best qualified and he feels that this contract should be approved. Commissioner Goodnight moved, seconded by Com.is.ioner Voss and carried 3/2, (Com.issioners Holland and Has.e opposed) that Resolution 85-275 authori~ing the Chair.an to execute the Service Agreement between Collier County and Re~ource Recovery of Collier, Inc. for construction and operation of a resource recovery facility and other docll~=nts necessary to complete financing of the project be adopted. Mr. Dave Fischer of Fischer, Johnson, Allen & Burke, stated that he r.~eds approval for the bond printer, the official statement printer, Page 11 - - - ........,....-........ .. - .. December 19, 1985 the tender agent, and the trustee to keep this bond issue moving. Co..i..ioner Vo.. aoved, ..conded by Co..i..ion.r Goodnight and carri.d 4/1, (Co..i..ioner Bolland oppo.ed), that the Bond Printing be awarðed to Appellate, that the Official Stat..ent printing b. awarded to SOS Financial printing, that the T.nder Agent be Ch..ical Bank, and that the Truste. be Citizen. and Southern Rational Bank. ..... a.c.... 2145 P.M. until Dec..b.r 20, 1985·.··~ &OOK 091 w·t 526 Page 12