HomeMy WebLinkAboutWorksession Minutes 11-16-2009BOARD OF COUNTY COMMISSIONERS
ST. LUCIE COUNTY, FLORIDA
WORKSESSION
Date: November 16, 2009 Convened: 1:30 p.m.
Adjourned: 4:34 p.m.
Commissioners Present: Chairperson, Paula A. Lewis, Charles Grande, Doug Coward, Chris Craft,
Chris Dzadovsky,
Others Present: Faye Outlaw, County Administrator, Lee Ann Lowery, Asst. County
Administrator, Dan McIntyre, County Attorney, Shai Francis, Finance Director, Bill Hoeffner,
Grants Resources/Disaster Projects Manager, Beth Ryder, Community Services Director, Millie
Delgado-Feliciano, Deputy Clerk
Opening remarks made by the Chairperson.
1. Energy Block Grants-
Com. Coward opened this discussion and advised everyone present the dead line for the Energy
Block Grants window is December 14, 2009.
The TCERDA Master Plan has been completed and is looking to create a job corridor
surrounding the Research and Education Park. The Board has approved a 38 million stimulus
fund and 4.2 million has been allocated for utilities and road improvements at the park and also
recruiting efforts are funded through the economic development council.
They are looking to hire an energy and utility expert and this was finalized last week by the
Board. They are looking to reduce the energy bills by at least 10% saving the taxpayer money.
The affordable housing staff has been working on how to integrate green building technology
The Grants and Disaster Manager advised the Board they are looking to utilize three available
grants. The grants vary in the amount of funding available. The largest grant which is up to $75
million will be the most difficult to achieve due to the fact they are looking at a 5 to 1
leveraging. The second grant is in the amount of $5 million it recommends leveraging but does
not require it. The third grant is a state grant available to communities that are not eligible in
the initial funding in the EDCBG grant. St Lucie County based on population is not eligible. Port
St. Lucie and the City of Ft. Pierce were found to be eligible. The intent is to apply for all 3
grants using the same program. We are seeking funding for a loan program where we would
make available a low interest loans for those homeowners or businesses to make properties
more energy efficient. What is being recommended is that it be cost effective. The cost of the
monthly payment should not exceed the cost savings of a utility bill.
Com. Coward stated he believed staff was focusing on the retrofit on the energy conservation
side as part of the block grants. He was hoping to consider on a second grant more towards
solar financing initiative.
Staff indicated they were looking to use the grant to fund as a financing mechanism.
The Housing Manager advised the Board they have 6 grants incorporated with energy
efficiency, solar hot water heaters and also looked at green housing grants for retrofits.
Com. Dzadovksy stated he would like some tracking on the energy savings.
Com. Craft recommended tracking on the actual usage not the dollar amounts.
The Grants Manager advised the Board they would have an energy audit to obtain a history of
what the costs are.
Com. Craft recommended the county finance the system and the buyer have it installed and
pay for the installation.
Com. Coward stated he would like to have a discussion on roof top solar energy which is the
number one option identified by experts. He believes in order for all this to happen they need
to have a renewable portfolio standard established. They need to contact the legislature.
With an RPS they could be looking at a private /public partnership.
Com. Coward presented an example for a financing initiative for renewable and solar energy.
His example was Berkeley, California (Developing Berkeley FIRST)
Berkeley approved a financing program in September2008 to allow residential and commercial
property owners to pay for energy efficiency improvements and solar system installations as a
voluntary, long term special assessment on their individual property tax bills. Under the
Berkeley FIRST program, the city furnishes the funding for the project from bonds it repays
through special assessments on participating property owners' tax bills. Berkeley contracted
with Renewable Funding, LLC, to maintain turnkey program administration. Renewable
Funding created an information and application website linked to a database to facilitate
program operation and evaluation. Berkeley is running a 40-home PV pilot project before it
launches the full program, which will include energy efficiency improvements. Dozens of other
cities around the United States are beginning to emulate this model.
Com. Coward stated this example is very similar concept to what the City of Port St. Lucie has
done with their utilities. This would be very similar; they would not be providing subsidies but
providing an opportunity.
Com. Craft questioned where the funds would be obtained from.
Com. Coward advised the Board this is a discussion they need to have. He stated possibly as an
MSTU on a voluntary basis only. This will not be placed on a homeowner that does not wish to
participate in the program.
Com. Craft asked where the seed money would be obtained.
Com. Coward stated possible through grants or from the county funds that are invested.
The County has 330 million dollars in investments some are short term and some are long term.
If they can guarantee a loan at 3% for this type of investment they can divert some of the
portfolio into a program that gets a decent return on investment and also help achieve other
goals.
Com. Craft asked if this met the state requirements with liquidity.
Com. Coward stated it was a local issue not a state issue.
The Finance Director advised the Board the county's portfolio investment greater than 3 years
is a little more than 10%.
Com. Grande stated the first thing they would need to determine is if a program like this would
be eligible for a county to invest.
Com. Coward stated the state law says consistent with the investment policy, it is more of a
policy decision from the county's stand point rather than an investment.
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The County Attorney stated the state as a result of some of the past loans, they passed a law
that required you adopt an investment policy and we have an Investment Committee. If they
were going to change the policy they would need to run it by the Investment Committee and
make sure the changes are consistent with state law and investigate the security of these loans.
Com. Grande stated this was important to him because he is not sure how the word secure
compares to words like liens or guarantees. It may place the county in the position of the
foreclosing party to retrieve funds.
Com. Coward alluded to a report by Navigant Consulting where it indicates that wind- onshore
is not one of the viable alternatives.
Com. Coward introduced Mr. Lawrence Davenport; he has a keen interest in energy and has
experience in banking.
Mr. Davenport addressed everyone present and stated he has been working on an energy
policy for the past two years. He addressed re-designing the CDFI program. The CDFI program
requires a 5 tot leveraging. This is a public/private partnership however; they will need a
commitment from 3 to 5 years from the institutions. The government should not want to be in
the loan business. If this program is done correctly the reduction in energy cost will pay for the
cost of the financing. This is a tried and true method. This can be done on a regional basis.
They will need to commitments from banks, from solar companies and the different entities.
Com. Grande questioned where the leverage money comes from.
Mr. Davenport stated it would come from the banks.
Com. Coward addressed the difference between the CDFI and going through the loan process.
He believed they needed to create a regional CDFI in the green sector and other local counties
with St. Lucie County taking the first step. He is hoping they can put together a 15 million dollar
fund.
Com. Coward stated he had a conference call with Greg Burns and Solar Experts at the US Dept.
of Energy and it was clear they were looking for the CDFI concept and also looking for
sustainability of the funds and a regional approach for the block grants. The remaining dollars
are going to be highly competitive. We have until December 14, 2009 to put together a
program with banks and also work with local governments.
Com. Dzadovsky addressed an assessment based idea, simple for the people to be able to
obtain the loans. There are other grants which will becoming available.
Com. Grande asked what was the possibility of putting together a serious group of banks to
commit.
Com. Coward stated in order to achieve the aggressive time frame they would need to make a
small investment in order to receive a great return from the grants. He is looking to have
letters of interest by December 14th. He is not looking for subsidizing he is looking for a
mechanism where the residents can afford to have solar energy installed. This is not going to
hurt the large companies such as FPL, they will still provide energy, and he would like to offer
an alternative for the residents and businesses that are affordable.
Mr. Davenport recommended approaching one of the newest banks in Florida, PNC. They are
known for doing a lot of energy lending. The banks will benefit from doing this.
Com. Coward asked the Board consider the hiring of Mr. Davenport due to his expertise and
knowledge of the CFI's.
Com. Dzadovsky questioned if we were attempting to apply for all three grants.
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The Grants and Disaster Manager stated they would like to review the grants and come back to
the Board with their recommendations. He advised the Board he would need a voluntary letter
of intent from the county by November 19th for the large grant.
Mr. Davenport stated he would like to have the opportunity to read through the applications.
The County Attorney presented an overview from Mr. Freeman, SLC Bond Council and they feel
from a legal bond perspective, the CFI is a viable vehicle that can be used legally. The MSBU
scenario collected on the tax roll was what was discussed. He advised the Board our Financial
Advisor, Jay Glubber provided information on the energy block grant and is willing to assist in
applying for the grants.
Com. Craft stated he was very interested in moving forward. They have been working on this
for some time and believe they need to hire a consultant.
Com. Dzadvosky concurred with Com. Craft's comments and stated he believes SLC wants to
continue to be a leader in energy.
Com. Grande stated this was an exciting venture and agreed with moving forward quickly and
successfully.
Com. Craft stated he would also like to move forward in establishing a committee as soon as
possible.
Com. Coward stated he would like to work with FPL and not have an adversarial role with them.
He would like to approach the DEP with FPL to move dollars from the wind turbine project into
solar and would like to have FPL as part of the hub.
Com. Lewis stated she concurred with everything said. She believes this will give us an active
role however her only concern is that they have less than one month to complete this and is
concerned with the speed they are looking for here, the cutting edge is the bleeding edge and
she does not want to be there.
Com. Grande stated the concerns are real, but would hate no having tried. He stated there is
no guarantee of success, but the possibilities are great. He challenged FPL to help with the
concepts of energy distribution.
Com. Coward stated they needed to empower themselves and promote the right kind of
renewable energy in the Sunshine State and at the same time, bring the price of solar down,
create jobs and he believes local government has to take the first step.
The County Administrator advised the Board they needed to identify a point person to meet
with the banking institutions. They do not just respond to a letter. She requested direction
regarding the hiring of the consultant.
Com. Craft stated if there was no legal requirement for the bid process, he believes we do not
have much time and he would like to recommend they hire Mr. Davenport as the consultant.
He would not want to bog down staff at this point.
The County Attorney stated in tomorrow's meeting they can place this at the end of the agenda
and identify the funding source with the signature of the County Administrator and waive RFP
requirement with Board approval.
Com. Coward supported Mr. Davenport being hired as the consultant and have him work with
staff to put the application together and also to have him and the Board work with the banks.
Com. Coward recommended setting up a committee focusing on solar or renewable energy.
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The County Administrator stated they will be going with the 3 components of the applications
and once they are past the application process they will then have more discussions.
2. Transit Funding
The Community Services Director made a power point presentation on the funding for the
Transit. There is an MSTU countywide 0.0833 and they have in operating 1,421,440 and no
funds for capital. This does not include the $1.3 million carry forward for obligated match and
reserve.
The MSTU provides the match for Federal and State Transit grants. FTA grants are eligible for
operating.
Com. Coward questioned what the annual operating budget was and how it would be paid. He
does not wish to raise taxes for capital costs at a time when they are looking to cut the budget.
He does not believe this is going to be a wash as previously indicated.
Mr. Darrell Drummond, Council on Aging advised the Board the largest cost is personnel and
they are relocating staff so that they would not need to hire any new staff for the facility. The
new cost scenario would not exceed $15,000.
Com. Coward stated he would like to see the budget solidified.
Com. Grande stated he would like to see the budget and where the funds would be coming
from plotted out.
The Community Services Director stated she would provide this to the Board.
Additional items:
The County Administrator advised the Board of a letter that will be coming before the Board
dated November 12th from the City of Ft. Pierce City Manager regarding the Parks MSBU. It is
on the December 21st agenda for the City where they are challenging the percentage of the
debt service payment. They feel they are due a more significant amount than the $49,000. It
goes up to the tune of $300,000. She requested direction if the Board wished it be placed on
their agenda on December 8th for discussion.
Com. Dzadovsky addressed the issue and stated he was concerned with the property values
dropping would they be able to pay the debt service. There was an issue of the regional park
and the MSTU.
Com. Coward addressed the true fact is the county has exceeded their agreement and built the
Skate Park and the Fenn Center.
The County Administrator advised the Board they are putting the county on notice that they
may pull out of the MSTU.
Com. Grande stated the people in Ft. Pierce may not be fully aware of what this is really
indicating.
Com. Lewis stated they have always considered Lawnwood as a regional park.
Com. Coward stated all they are looking for is to make additional dollars and he believes they
will not jeopardize our ability to pay back bonds that are consistent with our original
agreement.
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He believes if they are looking to receive any more funding then they need to take on the
responsibility of the parks within the city limits.
The County Administrator addressed the interlocal draft the County Attorney sent to the City.
The County Attorney advised the Board they had marked through his draft giving them the
excess monies and they took the interlocal agreement and inserted $378,000 which would not
allow us to pay the debt service.
Com. Coward stated if they forced us not to be able to pay the bond payments, the county
would be forced to close down the neighborhood parks the county subsidizes in order to pay
the bond.
Staff was directed to send a letter expressing the Board's thoughts today. The interlocal as they
drafted is not acceptable.
The County Attorney recommended the Board discuss this with their counterparts at the City.
before it goes back.
Appointments
The County Administrator addressed the re-organization meeting tomorrow and how the
meeting will proceed.
Com. Craft requested he remain on the TCERDA Board.
Com. Coward stated he had wanted to be on the TCERDA Board for the last 4 or 5 years and has
been patiently waiting to be able to serve and would like the opportunity to do so and asked
Com. Craft to reconsider his request.
Com. Craft stated he would continue to attend the meetings whether he was appointed or not
to the Board however he would agree to it if Com. Coward would take his position on the TPO.
Com. Grande stated he would like to expose different Commissioner to different areas and
would like every Commissioner to have an opportunity to express their level of interest.
Com. Coward stated he would take the position on the TPO if necessary. He also advised the
other Commissioners that he would understand if there was any one who wished to be
appointed on a committee where he has served for a length of time.
The Chairman reviewed the various committees' the Board members have been appointed to
participate in.
There being no further discussion to be held, the meeting was adjourned at 4:35 p.m.
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