Council Minutes : February 2, 1996 MINUTES COUNCIL OF THE TOWN OF FORT MYERS BEACH WORKSHOP - FEBRUARY 2, 1996 The Special Workshop of the Council of the Town of Fort Myers Beach was called to order at 1:00 P.M. at the Town Hall (NationsBank). Councilmembers present were: Mayor Anita Cereceda, Vice Mayor Ted FitzSimons, Councilmembers Ray Murphy and Garr Reynolds. Councilmember Rusty Isler was excused. Also present were Acting Town Manager William Mills, Interim Town Attorney Richard Roosa and Lee County staff as follows: David Owen, Assistant County Attorney; Larry Johnson, Solid Waste Director; Lindsay Sampson, Solid Waste Deputy Director; Rick Klontz, Environmental Specialist. Larry Johnson began the meeting with a review of his submittal to the Town Council explaining Lee County's Solid Waste Management Program and the request to join the county and other cities in interlocal agreements for solid waste collection, disposal and assessments. Mr. Johnson reviewed the county's current solid waste collection services, including recycling, yard waste, rights-of-way clean up and hazardous waste collection programs. He explained the recent bidding process which resulted in Kimmins Recycling being given a 5 year franchise for several collection areas in Lee County, including Estero Island. Mr. Johnson then requested the Council's consideration of two interlocal agreements which would basically continue the county's franchise with Kimmins for collection services until the end of the current contract which is September 30, 2000. The interlocals also guarantee county flow control over solid waste collected on Fort Myers Beach for that period, and allow the county to establish a Municipal Service Benefit Unit (MSBU) or a Municipal Service Taxing Unit (MSTU) on Fort Myers Beach to provide some of the revenue required to fund the county's Solid Waste Management Programs. Mr. Johnson then explained the impact of the MSBU/MSTU alternatives in comparison to the more costly alternative of using ad valorem taxes for revenue generation on Fort Myers Beach. David Owen then presented a history of the county's funding of Solid Waste Management Programs, and the recent "Carbone" United States Supreme Court decision which caused the county to shift from a user fee/tipping fee method of revenue generation to a combination user fee/ad valorem tax method of funding these programs. He explained the county wants to return to a pure user fee approach of funding the solid waste services in Lee County, which he felt was a fairer and more equitable way of providing these services. Vice Mayor FitzSimons asked how seasonal residents could be dealt with, as they now pay for services year round regardless of their occupancy. Mr. Johnson explained the county has and will continue to look into ways to take seasonal residents into consideration, but a workable system had not yet been identified. Attorney Roosa asked if the current water company couldn't handle the solid waste billing instead of the Tax Collector's Office, if they could do it less expensively. Mr. Owen agreed to check into it. Other clauses and sections of the draft interlocals were then discussed. Councilmember Reynolds initiated a discussion regarding the use of the franchise fee currently being changed on Fort Myers Beach, and the town's right to those revenues. Mr. Johnson explained that the 5% franchise fee currently being charged on Fort Myers Beach is directed into the county's solid waste operating fund and used to stabilize garbage rates. He noted that the franchise fees collected on Fort Myers Beach amount to about $25,000 to $30,000 per year. Councilmember Reynolds felt that the county should find a way to direct those funds to the town without impacting rates, and county staff agreed to look into it. Councilmember Reynolds then stated that he would feel more comfortable looking into interlocal agreements that would first cover an "interim" period, until September 30, 1996, and then move into agreements for the rest of the term until September 30, 2000. Attorney Roosa questioned whether the county could assign the franchise to the town as a way of settling the franchise fee issue, perhaps beginning October 1, 1996. David Owen noted that the town should consider the ramifications of such a transfer and the responsibilities involved such as billing, customer service, complaints, etc. He felt that if such a transfer were made, Kimmins Recycling would also have to agree, and it was likely that no changes could be made to the current contract. Mr. Owen said he would look into the issue. Other solid waste issues were discussed, such as the 24 hour advanced set out rule, which is often violated. Mr. Klontz described his educational and enforcement efforts on Fort Myers Beach. Mr. Owen then briefly outlined the second interlocal agreement which dealt with the MSBU/MSTU options. He described the two options in detail, indicating that the MSBU is based on actual use, where the MSTU is based on assessed value, with certain uses such as churches being exempt under this option. Either option, however, would be less expensive to the town as a whole when compared to the current ad valorem approach. After further discussion, Council consensus was to direct Lee County staff to return to the town at a later date with two sets of agreements, one interim set to take the town through the remainder of the fiscal year and one later set to cover the period from October 1, 1996 through September 30, 2000. Both sets of agreements should address the franchise fee issue in one form or another. With no further business before the Council, the meeting was adjourned at 3:45 P.M. Respectfully submitted, William A. Mills Acting Town Manager