Agenda 09/30/2003 W COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA
September 30, 2003
9:00 a.m.
Tom Henning, Chairman, District 3
Donna Fiala, Vice-Chair, District 1
Frank Halas, Commissioner, District 2
Fred W. Coyle, Commissioner, District 4
Jim Coletta, Commissioner, District 5
NOTICE: ALL PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM
MUST REGISTER PRIOR TO SPEAKING. SPEAKERS MUST REGISTER
WITH THE COUNTY MANAGER PRIOR TO THE PRESENTATION OF THE
AGENDA ITEM TO BE ADDRESSED.
COLLIER COUNTY ORDINANCE NO. 99-22 REQUIRES THAT ALL
LOBBYISTS SHALL, BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES
(INCLUDING, BUT NOT LIMITED TO, ADDRESSING THE BOARD OF
COUNTY COMMISSIONERS), REGISTER WITH THE CLERK TO THE
BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT.
REQUESTS TO ADDRESS THE BOARD ON SUBJECTS WHICH ARE NOT ON
THIS AGENDA MUST BE SUBMITTED IN WRITING WITH EXPLANATION
TO THE COUNTY MANAGER AT LEAST 13 DAYS PRIOR TO THE DATE OF
THE MEETING AND WILL BE HEARD UNDER "PUBLIC PETITIONS".
ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD
WILL NEED A RECORD OF THE PROCEEDINGS PERTAINING THERETO,
AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD
OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE
TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED.
ALL REGISTERED PUBLIC SPEAKERS WILL RECEIVE UP TO FIVE (5)
MINUTES UNLESS THE TIME IS ADJUSTED BY THE CHAIRMAN.
IF YOU ARE A PERSON WITH A DISABILITY WHO NEEDS ANY
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YOU ARE ENTITLED, AT NO COST TO YOU, TO THE PROVISION OF
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FACILITIES MANAGEMENT DEPARTMENT LOCATED AT 3301 EAST
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September 30, 2003
TAMIAMI TRAIL, NAPLES, FLORIDA, 34112, (239) 774-8380; ASSISTED
LISTENING DEVICES FOR THE HEARING IMPAIRED ARE AVAILABLE IN
THE COUNTY COMMISSIONERS' OFFICE.
Pledge of Allegiance
2. Transfer of Development Rights (TDR)/TDR Reanalysis Report
3. Financial Impact Analysis Model (FIAM)
4. Franchise Fees for Electric Power Providers
5. Adjourn
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September 30, 2003
EXECUTIVE SUMMARY
OVERVIEW REGARDING FRANCHISE FEES FOR ELECTRIC POWER PROVIDERS
AS AN ALTERNATIVE REVENUE SOURCE FOR COLLIER COUNTY
OBJECTIVE: For staffto provide the Board information regarding franchise fees for electric
power providers and the proposed use of franchise fee revenue; also, to obtain Board direction
regarding these franchise fees as an alternative revenue source for Collier County.
CONSIDERATIONS: Florida Power and Light (FP&L) and Lee County Electric Cooperative
(LCEC) provide power in specific areas of Collier County as depicted on map included in the
briefing slides.
Franchise Fees. Franchise fees for power providers are not new; Miami-Dade, Palm Beach,
Saint Lucie, Santa Rosa, Sarasota, Baker, Bradford, Brevard, Broward, Charlotte, Escambia,
Indian River, Lee, and Leon are among those Florida Counties currently collecting such a fee
from electric power providers.
Also, the City of Naples and Everglades City have collected franchise fees for decades from
power providers.
The franchise agreement and resulting franchise fees under discussion would be negotiated with
FP&L and LCEC. Typical items subject to negotiations may include the franchise fee ceiling,
term of the franchise, "no compete" provisions, indemnification to the County from the
Franchisee, access to financial information, and other items.
Preliminary discussions with FP&L and LCEC revealed combined annual revenues of $212
Million for power services provided in unincorporated Collier County. Should those revenues be
subject to a negotiated 5.9% franchise fee, the County could realize some $12.5 Million annually
in additional revenue. Franchise fees are not restricted funds and may be utilized by the Board for
any lawful purpose.
Power providers are authorized by Florida Statutes to utilize the rights-of-way in providing
service; the end use customers benefit from receiving the service and may be subject to a franchise
fee. Any Collier County franchise fee would be passed along to the power providers' end use
customers in the unincorporated area of the County only.
The typical residential customer with a $200 monthly power bill, subject to a 5.9% franchise fee,
would pay $211.80 monthly, which includes $11.80 franchise fee; the annual power bill would
total $2,541.60, which includes $141.60 in franchise fees.
Cable and telephone providers already pay for the use of the rights-of-way through the
Communications Services Tax (CST), which is collected at the state level (FDOR) and distributed
to all local governments. Collier County will receive approximately $2.9Million in CST for FY04.
Proposed Uses of Franchise Fee Revenue. Should the Board wish to negotiate franchises with
FP&L and LCEC, staffproposes that use of the franchise fee revenues be utilized as a funding
source for the following priority items:
Cost Differential for Burying Power Lines vs. Upgrades of Overhead Lines
NOTE: Transmission lines (high voltage) may not be buried; only feeder and
distribution lines may be buried
Stormwater Improvements
Median Landscaping / Landscaping
Beach Access / Boat Access
Staff from multiple divisions will address the above items.
FISCAL IMPACT: Franchise fees for electric power providers may provide an alternative
revenue source of $12.5 Million annually.
GROWTH MANAGEMENT IMPACT: There are no known growth management impacts
related to franchise fees at this time.
RECOMMENDATION: That the Board provide staff direction regarding franchise fees for
power providers.
PREPARED BY: Date:
D. E. "Bleu" Wallace, Director
CDES Operations
APPROVED BY:
Date:
Joseph K. Schmitt, Administrator
Community Development & Environmental Services Division
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