JANUARY 28, 1987

The Lake County Board of County Commissioners met in regular session on Tuesday, January 28, 1987, at 1O:OO a.m. in Courtroom C, Lake County Courthouse, Tavares, Florida. Commissioners present at the meeting were: Thomas J. Windram, Chairman; Glenn C. Burhans; Claude E. Smoak, Jr.; James R. Carson, Jr.; and C. A. "Lex" Deems. Others present were: Christopher C. Ford, County Attorney; James C. Watkins, Clerk; Michael C. Willett, County Administrator: and Toni M. Austin, Deputy Clerk.


Mr. Chris Ford, County Attorney, gave a brief presentation and background information regarding the NRG/Recovery Group, Inc. contract with Lake County, indicating that the original agreement was made and executed January 15, 1985. Mr. Ford stated that this meeting was to negotiate a contract with terms and conditions, assuring that the Hoard realizes the position of the County and making sure that the contract would be meeting the County's needs.

Commr. Windram stated that the financial and technical background had needed to be researched further, because of GECC not being a part of the orginal agreement any longer. He stated that the County had agreed to a project with NRG, but there were reservations by the experts regarding NRG meeting the requirements of the contract.

Mr. J. Michael Colvin, Vice-President of LGM, Inc., appeared before the Board and stated that LGM, Inc. assures Lake County that LGM will fulfill its guaranty obligations contained in the proposed contract.

Mr. Michael Willett, County Administrator, stated that the actual cost would be $24.00 - $28.00 per ton, which would be including transfer station and landfill costs, and $19.00 would only be the tipping fee in 1989.

Mr. Ford informed the Hoard that the experts are now stating that it would cost $40 million to build the plant today, and the proposal before them is for $25 million. He further stated that he would like to see LGM become the owners of the project, due to financial condition of the firm.

Mr. Ford stated that he had a problem with the Letter of Intent of Guarantee and LGM not willing to guarantee an unlimited amount of liability for potential damages for this type of project. He further stated that he had no problem with the letter from Philipp Holzmann USA, Inc. supporting LGM, Inc. and assuring the County it would back all of LGM's commitments.

Discussion occurred regarding Addendum V and the BTU'S, with Mr. Willett stating that he feels confident that the County has the BTU's needed for the project.

Mr. Ford stated that the County was not at risk as tar as the contract was concerned, but, the court could decide to challenge the legalities of the contract, or interpret the contract in such a manner that the court may rule that the County was a partner in the project.

Commr. Smoak stated that he did not feel that the County was concerned with the contract itself and LGM being able to build the project and make it work, but that there were environmental concerns, and the County meeting the tonnage and other requirements. He further stated that the County will not own, operate or be business managers for the project.

Mr. Dan Robuck, Attorney representing LCM Engineers, appeared before the Hoard and explained that LGM did not feel that the liquidation damage clause was necessary in the agreement.

Mr. Colvin stated that the commitments had been made by LGM in writing, and that LGM will be acting as NRG's agent.

Mr. Roland Lewis, Solid Waste Disposal Operations Director, appeared before the Hoard to answer questions regarding the requirements of BTU's and tonnage.

Mr. Ford stated that the Interlocal Agreements with the cities will still be in force.

Mr. Richard Swartz, City of Tavares, appeared before the Board to discuss the Interlocal Agreements with the cities in connection with the proposed contract.

Mr. Leeberg, Mt. Dora, appeared before the Board and suggested that the County enter into a guarantee and separate contract with LGM and pay NRG. Commr. Windram pointed out that, if LGM received profits as proposed, the worry over consideration would be solved.

At this time the Board reviewed the proposed Addendum V, with Mr. Ford requesting that the base spread sheet be attached.

Mr. Ford stated the proposed changes to be made to paragraph 1, 3, 4, 6, and 10.

On a motion by Commr. Carson, seconded by Commr. Deems and carried unanimously, the Board approved to execute the contract with NRG, including clarification from the discussion today and specifications in Addendum V., which includes Lake County, 50%; LGM 37.5%; and NRG 12.5% of the profits.

On a motion by Commr. Carson, seconded by Commr. Deems and carried unanimously, the Board approved and authorized the Chairman of the Board to sign the Letter of Intent with LGM Engineers Constructors.


On a motion by Commr. Deems, seconded by Commr. Carson and carried unanimously, the Board approved the employment of Donald Findell, to the position of Director of Pollution Control, at a salary of 536,000, transferred from the appropriate funds.

There being no further business to be brought before the Board, the meeting adjourned at 12:20 p.m.

Thomas J. Windram, Chairman


James C. Watkins, Clerk