Official Minutes of MARION COUNTY BOARD OF COUNTY COMMISSIONERS. March 9, 2018

Transcription

1 Official Minutes of MARION COUNTY BOARD OF COUNTY COMMISSIONERS March 9, 2018 CALL TO ORDER: The Marion County Board of County Commissioners met in a workshop session in Commission Chambers at 2:04 p.m. on Friday, March 9, 2018 at the Marion County Governmental Complex located in Ocala, Florida. INTRODUCTION OF WORKSHOP BY CHAIRMAN KATHY BRYANT Chairman Bryant advised that the workshop was scheduled this afternoon to discuss the Solid Waste Authority feasibility analysis results for the acquisition, management and operation of a regional solid waste disposal facility or facilities. PLEDGE OF ALLEGIANCE The meeting opened with the Pledge of Allegiance to the Flag of our Country. ROLL CALL Upon roll call the following members were present: Chairman Kathy Bryant, District 2; Vice-Chair Michelle Stone, District 5; Commissioner David Moore, District 1; and Commissioner Jeff Gold, District 3. Commissioner Carl Zalak, District 4, arrived shortly after the meeting commenced. Also present were County Attorney Matthew G. Minter and County Administrator Mounir Bouyounes. STAFF PRESENTATION - Mike Sims, Solid Waste Director: Solid Waste Director Mike Sims presented a 1 page Agenda document, a 9 page handout containing 17 slides entitled, "Solid Waste Phase I Investigation: Evaluation of the Feasibility of a Regional Solid Waste Authority", to follow along with the PowerPoint presentation; a 5 page Interlocal Agreement (ILA) between Marion County and Alachua County; a 6 page letter dated April 13, 2017 from Sam Levin, S2Li, and a 31 page document entitled, "Phase I Investigation Into Forming A Regional Solid Waste Authority. Slide 2 addresses Task Development. Marion County entered into an ILA with Alachua County to take on this project to evaluate the feasibility of a Regional Solid Waste Authority. Slides 3 through 5 address the Scope of Service performed. The Task Order was to inventory the units of government within a 100 mile radius of the intersection on Interstate 75 (1-75) between Alachua and Marion County, including municipalities, as well as county governments. The purpose was to get a feel of what these units of governments were currently using for their solid waste disposal and how much contract time or capacity they had left in their particular disposal facilities. The second part of the Task Order,was to inventory the existing Class 1 disposal facilities, both landfills and waste to energy facilities, which fell within the radius of the study area. Part of the disposal analysis was to review environmental controls, current customers, types of waste accepted, landfill gas-to- energy, bioreactor, or any energy recovery systems of future plans and the transportation distance from governmental agencies to the inventoried waste disposal facilities. Book X, Page 769

2 The chart on slide 6 addresses the government interest level in joining a regional authority. The two that distinctly had an interest in moving forward with an authority was the City of Ocala and Pasco County. Commissioner Zalak arrived at 2:07 p.m. Mr. Sims advised that Alachua County is interested and already in an ILA with Marion County. The areas somewhat interested are Citrus, Hernando, Putnam, St. Johns Counties and the City of Gainesville. Also listed as not being interested in moving forward with an authority are Levy and Sumter Counties, as well as The Villages. The map on slide 7 shows the 100 mile radius and the counties that fell within the area of inventory. The chart on slide 8 shows a summary of key local government survey responses. The chart on slide 9 shows results from solid waste disposal facilities and their interest in being considered in a regional solid waste authority. Slide 10 shows the gate rates for surrounding facilities; all tonnage numbers are based on fiscal year (FY) Staff considered whether a facility can accommodate the full authority waste that could be delivered and have capacity well into the future. Slide 11 addresses the travel distance between a disposing county to the different landfill disposal areas. The highlighted bar at the bottom of the slide is the combined total millage of Marion and Alachua Counties. The travel distance analysis was used to assess what might be the primary facilities to review going into the future. Covanta was eliminated from the study primarily because they indicated that they were already maxed out at their capacity. Slide 12 addresses a summary and findings. There are 7 government agencies and 7 facilities at least somewhat interested in moving forward with an authority; 6 facilities are willing to consider regional partnerships; and 2 are willing to consider selling their facilities. Based on the combined distance from Marion and Alachua Counties, the 3 disposal facilities with the shortest combined distance are Heart of Florida/ACMS, Inc. (HOF) Landfill, Putnam County Central Landfill and New River Regional Landfill. BOARD DISCUSSION: Chairman Bryant stated ACMS, Inc. can be removed from the list. Mr. Minter advised that staff received notice from counsel for ACMS, Inc. within the last couple of weeks that they had a pending purchase and sale contract with a major solid waste entity. As of a couple of hours ago it became public knowledge and a contract has been signed for stock sale of ACMS, Inc. to that business; as a result they will not be subject to an authority. Mr. Sims advised that the primary issue for the county is they have 2,500,000 tons of capacity already purchased at the HOF/ACMS, Inc. Landfill. The contract protects the county and ensures there is a little over 19 years' worth of disposal life at the current solid waste generation rate. He questioned if staff should continue to move forward with the authority. Chairman Bryant opined that it made a lot of sense when the county had the possibility of going into an authority at a location where they already had a big buy-in and would probably be the major holder, but at this point moving forward with an authority may not be something the Board should consider. Commissioner Moore stated the Board should not completely scrap the idea, but possibly consider a different partner. Chairman Bryant advised that Marion County has 19 years of capacity at ACMS, Inc. and are unaware of what will happen in the next 10 years. Page 770, Book X

3 Mr. Bouyounes stated the county had a lot of interest when ACMS, Inc. was available, but now that that is off the table he does not recommend the Board spend any additional funds to conduct more studies. If Hernando, Putnam or Alachua Counties, want to take the lead and try to do a study the Board should be open to have that discussion. Chairman Bryant stated she did not want to spend any more funds or staff resources pursuing this option with ACMS, Inc. off the table. The county had a big stake there and with the proximity to Marion County it made sense at that point and time. It does not make sense to pursue and spend any more funds or resources pursuing options in locations that are not nearly as close. Mr. Bouyounes advised that other locations are not as appealing to the county as ACMS, Inc. Alachua County was a partner in the study and staff is unaware of how they will move forward. Chairman Bryant stated Alachua County is currently using the New River facility. Mr. Sims concurred. Staff has learned a lot of lessons through this process and some of those lessons are spelled out in the second phase (slides 13 through 15). He stated unless the county has potential partners it may not make sense to move forward. Director of Solid Waste and Resource Recovery Sally Palmi, Alachua County, advised that at this point the Alachua County Board of County Commissioners (BCC) has not made a decision on the Solid Waste Authority. The Alachua Board was waiting on this workshop for staff to bring information back to their BCC; however, staff has been tasked to negotiate a contract with New River since the current contract expires on December 31, An authority is something that Alachua County has had an interest in for many years and the recommended solution to solid waste is a regional approach. An authority is not something the county will rule out. Mr. Minter advised that Waste Connections and Progressive Waste are the entities involved in the transaction with ACMS, Inc. Mr. Bouyounes stated 2 weeks ago staff learned ACMS, Inc. has been considering the sale, but did not know a contract was signed and almost finalized until approximately 2 hours ago, which is now public. In response to Commissioner Gold, Mr. Sims advised that the Baseline Landfill will reach capacity in early Once the construction of the citizen drop off is completed the plan is to begin sending waste to the HOF Landfill. Baseline is getting to the point where there is less maneuvering room on top of the landfill and as the county goes into the future there will be even less. At some point commercial trucks will be diverted down into the transfer station and that waste will be sent down to HOF. Staff will use waste hauled by county trucks to finish out the elevation on the landfill; it is suspected this will happen mid Commissioner Gold questioned if there is any way of increasing the timeframe. Mr. Sims advised that based on the current footprint there are no plans. Discussion between staff and the Board in the past relating to building a new landfill and/or expanding the Baseline Landfill and waste to energy gasification were all turned down and the county moved forward with a regional approach. That is when staff discovered what was happening with ACMS, Inc. They did not have a facility yet, but did have land and a permit was approved. The county was able to strike a deal with ACMS, Inc. Commissioner Gold noted citizens were not receptive in the past to opening another cell at the Baseline Landfill. He questioned if there is one cell that could be opened and how much would that lengthen the landfill, as well as if there are any cost savings. Mr. Sims advised that staff brought forward a proposal to expand an approximate 25 acre cell, which was not widely supported by the population of Marion County. The additional cell Book X, Page 771

4 would have potentially added another 30 years of life assuming the county's waste did not expand tremendously. The cell would border on the west side of the landfill and go all the way down to the southwest corner and would be completely within county owned property. In response to Commissioner Gold, Chairman Bryant stated there were several different issues as to why citizens opposed the landfill remaining where it is located. Commissioner Zalak advised that prior to entering into the agreement with ACMS, Inc. he brought forward a proposal to expand the landfill, but at the end of the day it was just as inexpensive to move the waste to the ACMS, Inc. facility than it was to keep it in our backyard and there were a whole lot less folks upset with the Board. If the county found itself in a situation where 10 to 15 years from now they could not get an acceptable rate for Marion County the Board can come back to Baseline Landfill. Mr. Sims stated in the contract with ACMS, Inc. the county has a timeline to deliver the prepaid waste before 2044, noting the price could escalate because the county could be subject to additional fees for that disposal. Chairman Bryant stated the most important thing the Board will need to remember is there is time with what is in place now and with what the county has should they have to go back to landfilling at Baseline. She noted things change and the county has until 2044 to deliver to the ACMS, Inc. facility at $8 a ton. The county has until 2044 to use the capacity, then the price will be indexed. Mr. Sims clarified the county has until 2044 to dispose of waste at $8 a ton or until the county reaches the purchase capacity, whichever comes first. General discussion ensued. Mr. Sims advised that his job going forward is to continue to keep his ear to the ground, listen to what is happening and bring any information collected back to the Board regarding the movement of an authority. The county still has interest, but not necessarily a leadership role. It was the general consensus of the Board to agree. In response to Commissioner Moore, Mr. Sims advised that future discussion will take place with the new owners. The county had already resolved with ACMS, Inc. how special waste would be handled and staff will have to touch base with the new owners to go over these issues. Assistant County Administrator Public Infrastructure Flip Mellinger, Pasco County, advised that Pasco's interest was in ACMS, which is less than 20 miles from their East Pasco transfer station. They also have a 20 year contract in place with ACMS, Inc. Commissioner Zalak questioned what the rate is that Pasco County is paying. Mr. Mellinger stated $26, which includes hauling. Commissioner Zalak advised that the best rate given so far is Lake County in the amount of $19. In response to Commissioner Stone, Mr. Minter stated the new company is the 3rd largest solid waste company in America. He commended Former Commissioner, now Representative Charlie Stone, for his involvement in getting the county to this point. From time to time the Board has received criticism of the deal made with ACMS, Inc., but when the rates charged to Marion County are compared to other customers around the state it certainly looks like a good decision. The deal was that Marion County assist in financing the construction of the landfill, which was the give and take for that rate. The new company does not need Marion County's funding for that and would not be interested in repeating that rate for the county. CLOSING COMMENTS: Page 772, Book X

5 Mr. Bouyounes advised that staff has received a lot of information from the new company yesterday and will get with Clerk to involve them when we start reviewing the information, noting Marion County does have to consent to the sale before it can be finalized. Mr. Minter stated the agreement with ACMS, Inc. includes a provision regarding approval of assignment of the contract. Generally speaking, it provides that Marion County has to agree, but there are somewhat narrow conditions; one being verifying that the buyer has the technical expertise to conduct this business successfully; and secondly, that they have the financial wherewithal to do so. It would appear that this company easily qualifies for both those criteria, but staff will be looking at this more closely in any event. There being no further business to come before the Board, the meeting thereupon adjourned at 2:33 p.m. Attest:, Chai an David R. Ellsper ann, Clerk Book X, Page 773

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