The Lake County Board of County Commissioners met in special session on Monday, August 15, 1988, at 2:00 p.m., in the Board of County Commissioner's Meeting Room, Lake County Courthouse, Tavares, Florida. Commissioners present at the meeting were: Glenn C. Burhans, Chairman; Thomas J. Windram; Claude E. Smoak, Jr.; James R. Carson, Jr.; and Don Bailey. Others present were: Christopher C. Ford, County Attorney; Michael C. Willett, County Administrator; and Linda Springston, Deputy Clerk.

CONTRACTS, LEASES & AGREEMENTS/LANDFILLS

Mr. David Sokol, President of Ogden Martin Systems, Inc., appeared before the Board to discuss some modifications his Company has made to the mass burn waste-to-energy system project, and presented a slide presentation.

Mr. Sokol explained the operation of a typical Ogden Martin facility, and reviewed some other Resource Recovery Facilities which his firm has constructed around the country.

Mr. Sokol reviewed with the Board the Lake County Resource Recovery Project Report, dated August, 1988, which was prepared by Smith Barney. The report covered the Proposal, Concept, Revised Tipping Fee, Waste Commitment, and the Cap on NRG/Ogden Liability.

Mr. Sokol reviewed the Tipping Fee Comparison chart and the Monthly Cost per Household Comparison chart with the Board.

Mr. Sokol stated that the benefits which would be derived, if the Board agreed to this proposal, were that disposal fees are competitive with other alternative methods: a long-term waste disposal solution which is consistent with the national environmental policy: there are guarantees of operational performance: guaranteed construction completion to performance specifications: state of the art emission controls: unexcelled vendor experience; exceptional financial strength behind the guarantees: and grandfathered tax benefits, if completion is achieved by December, 1990.

Mr. Sokol briefly reviewed the Cost of All-Landfill Option for a private landfill; the Comparison of Construction Costs for Resource Recovery Facilities: the Comparison of Operation and Maintenance Costs for Resource Recovery Facilities; and the Summary of Electric Output for Recent Ogden Facilities. He also reviewed the Project Risks, and which party will assume what risks.

Mr. Sokol discussed the guarantees which the Company will cover for the Resource Recovery Facility project; he also reviewed the advantages and disadvantages of the variable versus fixed rate issue.

Mr. Ed Sledge, with Piper Marbury, appeared before the Board to discuss the timetable action by Board, which is necessary to implement the Waste-to-Energy project.

Mr. Sledge recommended that, if the Board were to accept this contract proposal, it is a cost effective contract. He also discussed with the Board the ordinance which must be established, for a special assessment, for waste disposal services and licensing regulations.

Mr. Jeff Clunie, with R. W. Beck & Associates, appeared before the Board to discuss the proposal which had been presented earlier by Mr. Sokol. He felt that it was a good proposal, which was fair and equitable: and that if the Board were to start the project over from the beginning, they would not be likely to receive a better proposal.

Mr. Bob Schoenhofer, with Alex Brown & Sons, Inc., appeared before the Board and discussed the financial aspects of the project. He recommended variable rate financing, because the rates are better, and feels that the proposal is fully responsive to the desires of the Commissioners.

Mr. Omar Smith, with Post, Buckley, Schuh & Jernigan, Inc., appeared before the Board to discuss the average monthly fee charges, for the collection, hauling and disposal of waste, for the Resource Recovery project.

Mr. Sokol reviewed with the Board the costs incurred per household, and discussed how those costs were arrived at. He also discussed the requirements necessary to complete the contractural agreement with NRG.

Mr. Sledge informed the Board that if the new Board of County Commissioners refuse to pass and implement the ordinance for mandatory collection by December 1, 1988, the contract is automatically terminated without liability of either party.

Mr. Sokol discussed the franchising, permitting, and collection procedures for solid waste disposal with the Board.

RECESS & REASSEMBLY

At 4:35 p.m. the Chairman announced that the Board would recess until 4:55 p.m.

CONTRACTS, LEASES & AGREEMENTS/LANDFILLS (CONT'D.)

At this time, Mr. Clunie discussed with the Board a letter dated August 12, 1988, which was addressed to Commissioner Bailey, from him, regarding the Waste-to-Energy Facility. In the letter, Mr. Clunie covered the three basic options for the County, which are: the Waste Management Proposal, the County Owned Landfill, and the Waste-to-Energy Facility. Also covered in the letter was Users' Fees and No Users' Fees, as well as the Current Status of Options.

Mr. Clunie stated that, until additional information can be developed and made available, it is not possible to develop a more detailed comparative analysis at this time.

Commissioner Burhans informed the Board that he had received a petition, in favor of the Resource Recovery project, consisting of 511 signatures, ranging from Astor to Clermont, and Lady Lake to Mt. Dora, with a considerable amount of signatures by citizens in the Okahumpka area, where the plant is proposed to be located.

Mr. Rex Taylor, City of Eustis, appeared before the Board and stated that the City had met with Ogden Martin and feels that this is the best proposal available, and that the other cities would probably be in support of it.

Commr. Carson made a motion to create a committee to solve the solid waste problem in Lake County.

The motion died for the lack of a second.

Mr. Ted Wicks, Wicks Consulting Services, appeared before the Board and stated that 10 years ago he had recognized problems with sanitary landfills, as they now exist, and that resource recovery is a good idea.

Mr. Ross Buchanan, a resident of Eustis, stated that he is in favor of the resource recovery concept for environmental soundness.

Mr. Steve Vaughn, a realtor in Mt. Dora, appeared before the Board to inform them that of all the people he had questioned, regarding the resource recovery concept, less than one percent of the people were against the incinerator project.

Mr. Robert Fletcher, a resident of Leesburg, stated that the County needs the incinerator plant, but felt that it should be a public operation. He then discussed the Huntsville, Alabama, incinerator plant, that the Ogden Martin Company is preparing to build.

Mr. Chris Ford, County Attorney, reminded the Board that Lake County has been a leader in ecology, and that the Resource Recovery project is ecologically sound. He stated that the costs are favorable, and that there is a significant risk being taken by the vendors. He recommended that the Board accept the current proposal.

Mr. Ford informed the Board that boiler prices for the incinerator are to rise September 1, 1988, and the cost could not be altered.

Commr. Carson made a motion (based on the recommendations of the experts that Lake County now has the right technology, builder, operator, and contract) that the deal be concluded, and that the County authorize NRG/Ogden Martin to proceed with the financing.

The motion died for the lack of a second.

Mr. Ford recommended that the Board proceed forward, in good faith, with the deal, and should there be any major problems, the deal would cease. It was noted that the ordinances have to be in place, prior to the financing.

Mr. Schoenhofer discussed with the Board the amount of monies which would be lost, due to the loss of tax benefits to the vendor.

Mr. Sokol informed the Board that his company is ready to build the project, at any time, however, they will not be able to provide the same services, at the same prices, at a later date.

At this time, the Board tentatively postponed any further discussion on the NRG/Resource Recovery Project until Monday, August 22, 1988, at 9:00 a.m.

There being no further business to be brought to the attention of the Board, the meeting adjourned at 6:40 p.m.

GLENN C. BURHANS, CHAIRMAN

ATTEST:

JAMES C. WATKINS, CLERK

LS/8-22-88