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HomeMy WebLinkAbout2018-195BBOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY, FLORIDA OCTOBER 23, 2018 10:28 a. m. - 10:29 a. m. 11:38 a. m. - 11:39 a. m. COUNTY COMMISSION CHAMBERS COUNTY ADMINISTRATION BUILDING 1801 27TH STREET VERO BEACH, FLORIDA 32960 IN ATTENDANCE: Peter D. O'Bryan, Chairman Bob Solari, Vice Chairman Susan Adams, Commissioner Joseph E. Flescher, Commissioner Tim Zorc, Commissioner Dylan Reingold, County Attorney Kate Pingolt Cotner, Asst. County Attorney Jason E. Brown, County Administrator VERO BEACH COURT REPORTERS 772-231-2231 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN O'BRYAN: Folks, as we mentioned earlier in the meeting we have a time certain at 10:30 for a closed attorney/client session, and this is the commencement of the attorney/client session. The estimated time of the closed attorney/client session is 90 minutes. Present at the meeting will be Commissions Bob Solari, Susan Adams, Joseph E. Flescher, Tim Zorc, and me, Peter D. O'Bryan; also present will be County Attorney Dylan Reingold, County Administrator Jason Brown, and a certified court reporter. At the conclusion of the closed attorney/client session, this public meeting will be reopened. And with that, we are adjourned. CHAIRMAN O'BRYAN: We will call the meeting back to order. And the public meeting is hereby reopened and the attorney/client session is now terminated. VERO BEACH COURT REPORTERS 772-231-2231 2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 STATE OF FLORIDA ) : SS COUNTY OF INDIAN RIVER ) CERTIFICATE I, GREGORY CAMPBELL, Notary Public of the State of Florida at large, certify that I was authorized to and did stenographically report the foregoing proceedings and that the transcript is a true and complete record of my stenographic notes. DATED this 14TH day of NOVEMB GRE OR CAMPBELL, COURT REPOR E Commission No. EE 907742 My Commission Expires 8/6/2019 VERO BEACH COURT REPORTERS 772-231-2231 31 A a.m 1:4,4,4,4 Adams 1:10 2:8 adjourned 2:14 ADMINISTRA... 1:6 Administrator 1:13 2:10 Asst 1:12 ATTENDANCE 1:9 Attorney 1:12 1:12 2:10 attorney/client 2:4,5,6,12,18 authorized 3:8 back 2:16 BEACH 1:7 BOARD 1:1 Bob 1:10 2:8 Brown 1:13 2:11 BUILDING 1:6 C call 2:16 CAMPBELL 3:7 3:14 certain 2:3 CERTIFICATE 3:5 certified 2:11 certify 3:8 Chairman 1:9 1:10 2:2,16 CHAMBERS 1:5 closed 2:4,6,12 commencement 2:5 Commission 1:5 3:15,15 Commissioner 1:10,11,11 COMMISSION... 1:1 Commissions 2:8 complete 3:10 conclusion 2:12 Cotner 1:12 County 1:1,1,5,6 1:12,12,13 2:10,10 3:2 court 2:11 3:14 D D 1:9 2:9 DATED 3:12 day 3:12 Dylan 1:12 2:10 E 1:11,13 2:8 earlier 2:3 EE 3:15 estimated 2:6 Expires 3:15 F Flescher 1:11 2:8 Florida 1:1,7 3:1 3:8 Folks 2:2 foregoing 3:9 G GREGORY 3:7 3:14 H I INDIAN 1:1 3:2 J Jason 1:13 2:10 Joseph 1:11 2:8 M meeting 2:3,7 2:13,16,17 mentioned 2:2 minutes 2:7 N - Notary 3:7 notes 3:11 NOVEMBER 3:12 O O'Bryan 1:9 2:2 2:9,16 OCTOBER 1:3 order 2:17 Peter 1:9 2:9 Pingolt 1:12 present 2:7,9 proceedings 3:9 public 2:13,17 3:7 record 3:10 Reingold 1:12 2:10 reopened 2:13 2:17 report 3:9 reporter 2:11 3:14 RIVER I:1 3:2 session 2:4,-5,7- VERO BEACH COURT REPORTERS 772-231-2231 1 2:13,18 Solari 1:10 2:8 SS 3:1 State 3:1,7 stenographic 3:11 stenographic... 3:9 STREET 1:6 Susan 1:10 2:8 T terminated 2:18 Tim 1:11 2:9 time 2:3,6 transcript 3:10 true 3:10 U V VERO 1:7 Vice 1:10 W X Y Z Zorc 1:11 2:9 0 1 10:28 1:4 10:29 1:4 10:30 2:3 11:381:4 11:39 1:4 14TH 3:12 18011:6 -- 2 20181:3 3:12 231:3 27TH 1:6 3 329601:7 4 5 6 7 8 8/6/2019 3:15 9 90 2:7 907742 3:15 VERO BEACH COURT REPORTERS 772-231-2231 BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY, FLORIDA ATTORNEY/CLIENT CLOSED SESSION IN RE: MARTIN COUNTY, et al., v. U.S. DEPARTMENT OF TRANSPORTATION, et al. CASE NO.: 1:18-cv-00333-CRC *** SEALED *** OCTOBER 23, 2018 10:36 a. m. - 11:30 a. m. COUNTY COMMISSION CHAMBERS COUNTY ADMINISTRATION BUILDING 1801 27TH STREET VERO BEACH, FLORIDA 32960 IN ATTENDANCE: Peter D. O'Bryan, Chairman Bob Solari, Vice Chairman Susan Adams, Commissioner Joseph E. Flescher, Commissioner Tim Zorc, Commissioner Dylan Reingold, County Attorney Jason E. Brown, County Administrator VERO BEACH COURT REPORTERS 772-231-2231 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 VERO BEACH, FLORIDA: OCTOBER 23, 2018 WHEREUPON: CHAIRMAN O'BRYAN: It's 10:36. The Board of County Commissioners hereby commence a private pending litigation meeting with counsel to discuss the following pending case: Martin County et al. v. U.S. Department of Transportation, et al. pending in the United States District Court for the District of Columbia, Case No. 1:18-cv-00333-CRC. The subject matter of this meeting is confined by statute to settlement negotiations or strategy related to litigation expenditures. In this case, all statements made at this meeting are confidential and privilege. They are being recorded by a court reporter. The court reporter's notes will be fully transcribed and filed with the Clerk within a reasonable amount of time after the conclusion of this meeting. The transcript of this meeting will be a part of the public records upon the conclusion of this litigation. And present are all five county commissioners, the County Administrator Jason Brown, and the County Attorney Dylan Reingold. And with that, Dylan, why don't you go ahead and start, please. ATTORNEY REINGOLD: Thank you very much. As you are aware, all the papers have been filed in the federal VERO BEACH COURT REPORTERS 772-231-2231 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 case. At this point we are simply waiting for a decision from Judge Cooper and/or a scheduling of an oral argument. Also relative to the federal case, the private activity bond allocation, the last extension was granted back in May and it runs through December 31st. In September we had an initial face-to-face meeting with representatives from All Aboard Florida also representatives representing CARE were present as were representatives from Martin County and Indian River County to see if there was a meaningful settlement discussion that could be had between the parties. Since that time -- We've had that one meeting. Since that time we've had, I believe, two maybe three phone calls and actually a draft of a settlement agreement was presented by All Aboard Florida to CARE FL, Martin County and Indian River County. Since then, we have provided some response comments and, thus, I thought it was important to now have this meeting so we could talk about as set forth under statute settlement negotiations and litigation expenses. I'll just generally lay out the framework of the settlement agreement as being discussed currently and then we'll be seeking from you thoughts about any other essential points that we may have missed. So first like, first off, basically, what VERO BEACH COURT REPORTERS 772-231-2231 91 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Brightline will be doing is they will be agreeing to various improvements at railroad crossings that have been reviewed by our public works department, these include: The ones in the unincorporated areas of the county, also include the two crossing in Sebastian, and also the Hawk's Nest one. The railroad crossings that lay within the city have been forwarded on to the city folks for their review and analysis. But basically under the agreement is, we would come to some sort of understanding of what Brightline will be building at their expense. COMMISSIONER ZORC: So using 41st Street as an example, turn lane, sidewalks, we would pay the additional so we would have a formula to pay or would they include those? ATTORNEY REINGOLD: So generally what we're looking at is for them to be... it's -- The negotiation is still going back and forth. But what we would be looking for is, we would like to have them and I believe they would agree to, is that they would build the improvements at the crossings that they've already agreed to under FRA; they would then build the additional stuff we wanted them to do, including sidewalks, and then that would all be at their cost and from there on that would turn into maintenance cost for us moving forward. VERO BEACH COURT REPORTERS 772-231-2231 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Now, with regards to the maintenance side, the concept that has been discussed between the parties so far is that there would be a 14 -year cap on maintenance costs and cost at the crossings. What we're still in a bit of negotiation over is how that's going to work out. But I think, generally, what we've gotten to is the concept of: We would figure out what has been our average cost over the last 10, 12 years or so for the improvements at the crossings -- COMMISSIONER ZORC: Could -- ATTORNEY REINGOLD: -- and that would then serve as a cap on how much we would pay per year for 14 years. So if nothing is done at the crossing, it wouldn't go up to that cap; but if it exceeds that cap then we're just only on the hook as a county for paying up to what our average had been historically. COMMISSIONER ZORC: Okay. Precluding the last, say, 12 to 14 months where they've gone through and they've done work at virtually every crossing through the county so this most recent year has spiked way up. So if that's an average is, it's going to... ATTORNEY REINGOLD: And so we've actually -- And that's why my proposal is to do it over a longer period of time so it sort of dilutes out the impact of the most recent year. And that we've... the budget departments VERO BEACH COURT REPORTERS 772-231-2231 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 been great in producing their analysis of what we've been spending per year since Fiscal Year of '5/'06. COMMISSIONER ZORC: What was the spike last year? ADMINISTRATOR BROWN: So over the, over the 13 -year period beginning in '05/'06, the average with the license fees and all that stuff is about 3006,000 a year. However, the last couple years, '17/'18, was 555,000; it was a little over 400,000 in '16/'17; a little over 500,000 in '15/'16; and 534,000 in '14/'15. So the last four years have been higher than, than that average time period so that might be something that we need to work into to the equation as well. But we've tried to do is go over a 13 -year period but we can certainly talk about maybe excluding the last couple years or something as far as this, as far as an average cost. ATTORNEY REINGOLD: And we're still negotiating. But the concept would be, is that, to the extent in Year 2 of the project we would anticipate not much -- very little, if anything, happening at those crossings, maybe just the annual inspection fee and that's going to be well below. But as they actually start to do these improvements and now that they've expanded the number of gates or the number of improvements, we would anticipate a steep increase in the cost and that's why we would have VERO BEACH COURT REPORTERS 772-231-2231 M 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 All Aboard Florida and FEC essentially agree to this cap. ADMINISTRATOR BROWN: And another thing, I think we would like to have in there is if it's this 14 -year period that it doesn't then spike up in Year 15, that we may have some cap of increase of 5 or 10 percent increase per year or something like that following that time period. COMMISSIONER ADAMS: That was going to be my question. ATTORNEY REINGOLD: Yeah. That's something we've been trying to push on, they've been pushing back on that; but again, it's part of the negotiation and I can push harder on that front. So there's also a significant portion of the agreement that talks about bridges. Again, it's more of a Martin County/CARE FL issue but clearly their bridges' use are going to be resolved, need to be resolved as part of an overall settlement agreement. One of the... a couple different concepts that we've been starting to talk about was Aviation Boulevard. One of the issues that we talked about with staff was... and also was: Is there a place that we may want a flyover over the railroad. Now Aviation Boulevard is a little complex because not only do you get a flyover for the railroad but then you have a flyover over U.S. 1 as well. And so one of the things we reached out to All Aboard VERO BEACH COURT REPORTERS 772-231-2231 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Florida talking about was: Would they be agreeable and amenable to some sort of cost sharing as if we did a large flyover, we eliminated the railroad crossing and then we were able to connect up and then work on improvement to the hospital. You would have one guaranteed spot in our county where you have a consist road over the railroad that wouldn't be closed due to traffic -- Brightline traffic and/or freight traffic. Now, that's a very costly number. I think Jason and I probable talked about something in the 30 -million -dollar range. The concept we had was, is that something we could say: Let's go to the State and the Feds, see if we can get a FDOT grant, a USDOT grant, and then have All Aboard Florida to Brightline and us then sort of split the baby on the rest of the cost of that. COMMISSIONER ZORC: Yeah, there's -- VICE CHAIRMAN SOLARI: On that one, when you explained it to me the other day the initial, it was initially 50/50 between Brightline and the government; and the way you just describe it that way, could be saying 25 private sector and 75 percent government. If I understood what you said. ATTORNEY REINGOLD: Right. So the concept that we had proposed, I'm glad you ask for the clarification, let's say it cost 35 million or 34 million to build the VERO BEACH COURT REPORTERS 772-231-2231 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 road. That would be 17 and 17 between us, the county, and All Aboard Florida. Let's say we got a grant for or a, you know, some sort of agreement with for the Feds that knocked it down to 10 million dollars, it would be 5- for All Aboard Florida, 5- for us was the concept. VICE CHAIRMAN SOLARI: But again, the way you just said that, we wouldn't be knocking down... knocking it down to 10 million dollars. The price would still be the same, it would just be our share. ATTORNEY REINGOLD: Yes. VICE CHAIRMAN SOLARI: So, I mean, my point on this is that it should be the private sector's portion and the government's portion. So I'd be very reluctant to say: You know, feed on the big tit of Washington, you can off paying less. It's still taxpayer dollars and the source of it for me would be more indifferent as to where they're coming. They're taxpayer dollars and I would like to put a cap on the taxpayer dollars. If they're willing at one point to go half of it with just between Indian River County and them, I'd look at is as they can go half of it between the taxpayer and the private sector folks. ATTORNEY REINGOLD: And I appreciate that and I will push back on it. My guess is they're probably going to say, knowing that it's about a 30 -million -dollar number, they are probably not going to be willing to cost VERO BEACH COURT REPORTERS 772-231-2231 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 share 15- to 17 million. I'm pretty -- I'm going to say no on that. COMMISSIONER ZORC: And there is an alternative on that that I've gone through a brief exercise with Eric at the airport and Phil from MPO, just, if you take 36th Street and make that a flyover only for a dedicated route to the hospital and it picks up with the airport... if Aviation Boulevard there's a fly road that goes to Aviation Boulevard East or the one that goes around the water plant, that could then flyover on 36th Street. If you take Aviation Boulevard and you take what's going to be a five -lane east/west/north/south intersection and you want to completely close that crossing, 35- I don't think is in the ballpark -- probably looking at more, like, 50- -- because you then have to take the traffic over, you have to have loop arounds to get back to U.S. 1 with new signalization, I mean, massive, massive cost and taking of huge chunks of land. If we really want to have a dedicated route to the emergency room, the 36th crossing would be much less but it would be primarily emergency access to the hospital where you would go over 36th Street, U.S. 1 and 36th Street would still have a right turn in and then it would blend into the downslope of the bridge; westbound would still go west to U.S. 1 and turn right but you would have VERO BEACH COURT REPORTERS 772-231-2231 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a two-lane overpass but you wouldn't try to interconnect in. If we had -- if there was a bunch of money sitting there free, you might look at the other but I think you're really looking at 35- to 50- to really do... to close the Aviation Boulevard crossing because that's just a massive piece of work. ATTORNEY REINGOLD: Well, and maybe we don't need to be clear today on which 36th or Aviation -- COMMISSIONER ZORC: True. ATTORNEY REINGOLD: I mean, obviously at some point that we're going to need to figure that out pretty quickly because we don't -- COMMISSIONER ZORC: Correct. ADMINISTRATOR BROWN: Yeah. And I think that's, and I think that's kind of the policy question is: Is that's something that's worth fighting for for us, you know, that we're going to be asking them for a large amount of money. It's going to commit us potentially to a significant amount of money. I would say from an overall deal standpoint -- So there are a lot of things that are similar that are mirror images from Martin County and Indian River County, the 14 years of the crossing approvals and all that stuff is going to mirror each other. They've got the bridge VERO BEACH COURT REPORTERS 772-231-2231 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 over, over the river there which they've got to get resolved. I say from an overall deal standpoint, Indian River County needs to get something else so that we're not getting the short end of the stick, if you were -- if you will on any deal that, Hey, Martin County came out better in this, I think me need to make sure we're get something else. The question is: What is that something else? Do we want it to be a flyover or something else. COMMISSIONER ZORC: Correct. ATTORNEY REINGOLD: No. Martin County's indicated they'd like a pedestrian pass -- crossover but it's clearly not in the realm of something like this type of project... so that's one concept on the table. Another concept on the table is, and we've consistently pushed back on Brightline, is station hasn't been our issue, it hasn't been part of our negotiation strategy, and so one of the issues obviously you've seen recently is Stuart and Fort Pierce have been kind of drumming up some interest in that. One of the things I think Martin County was pushing for recently was: If there's a stop in the Treasure Coast it either needs to be in Indian River County or Martin County and so I wanted to hear from you as a board in terms of a potential settlement agreement. VERO BEACH COURT REPORTERS 772-231-2231 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Is there anything different or new on the station front? COMMISSIONER ADAMS: So for me, and I know I'm new to this process, I'm not as against the station in Indian River County only because I think that there's potential for future travel needs in the community; and I think that Indian River County is a good halfway point. I know that they're looking for certain things that we probably don't have in the Vero Beach area. Sebastian has indicated they don't have locations in their area. But when we talk about it, if we look at... and I know this might be a little crazy idea... but if we look at the 510/U.S. 1 corridor, you know, there's the Graves Packinghouse there, there's some property on the other side of the track that's available, there's another packinghouse across 510. We're talking about expanding 510 right now. It's kind of been an economically downtrodden area so there might be some potential there. I know we don't own those properties but we might be able to facilitate something happening there and it might be a catalyst for continuing that Wabasso Corridor Plan and drumming up some economic development in that area. It might be not idea right now, but it might make more sense in the future so just a throw -it -out -there as a concept. CHAIRMAN O'BRYAN: So it's been, I don't know, VERO BEACH COURT REPORTERS 772-231-2231 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 eight years now but there was talk about Amtrak rail going up the coast and at the time it was kind of decided that the old historic train station would be the good location, there's already parking there, would be downtown, all that so that can be worked out but I would rather see us fight for a station than the flyover. I've always thought all along, you know, the Brightline trains aren't going to be at a crossing very long unless there's an accident or something. They're going fast and that gate will come down and the thing is going to zip by, the gate will come up. Our biggest problem currently is when a freight train is off schedule because we only have a very short piece of dual track, so if they're off schedule the train has to stop and that's when they're blocking three to four crossings for 10, 15, 20 minutes that's when we have a problem. If everything is dual track, I don't see that being a problem going forward. I did ask Jason: I think we should have Chief Stone talk to his counterpart down in Palm Beach and Broward County because they're dealing with, you know, this already -- COMMISSIONER ADAMS: Right. CHAIRMAN O'BRYAN: -- and ask them, Okay, are your ambulances having trouble getting across the tracks, what's your experience. But I don't think it's going be a big problem and I would rather... I don't think a flyover, VERO BEACH COURT REPORTERS 772-231-2231 M 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the juice is worth the squeeze or whatever Wesley would say at that point in time. But I do think the station would be something that would be a benefit and would help slow the trains down, you know, maybe not every train but at least the ones stopping would have to start slowing down as they come through, then, a little speed up time so I think that will improve the safety aspect of it. And I don't, you know, if this is something we're going to negotiate, I don't think that we have to document that we have, you know, 100,000 people per acre to meet their ridership study. This is a negotiated station and so they're going to stop here regardless what a ridership study's going to show. And the point I'd bring up to them then is: They've already publicly claimed they can make millions of dollars going from Miami to Orlando so their claim it's going to be profitable with those riders so I would think a quick five-minute stop, even if a few riders get on, that's all gravy because they've already said they can make money Orlando to Miami and back and forth so I don't think that we have to have the density numbers. But... and I do think, you know, I would like to get on a train here in Vero if I'm flying out of Orlando Airport, not pay the parking there, not have to, you know, VERO BEACH COURT REPORTERS 772-231-2231 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 worry about the hassle of getting there and I think a lot of people would want use it so if this is something we're going to negotiate out, I would rather have a station than a flyover is where I'm sitting. VICE CHAIRMAN SOLARI: And my view on this is it's just a red herring anyway and it's not coming but if -- so I'm not interested in supporting it, period; but if the board members want to, I think you have to go down the path that you are taking, Commissioner O'Bryan, and say that this is part of the settlement: We get the station -- ADMINISTRATOR BROWN: Correct. VICE CHAIRMAN SOLARI: -- and we get the station -- CHAIRMAN O'BRYAN: Yes. It's not like we're going to apply for the station, we're going to get the station. VICE CHAIRMAN SOLARI: And we get the station for as long as Brightline is running from Miami to Orlando and we'll get, I will start with, four stops each direction each day because whatever the lowest number is, that's what you're going to end up with. So, I mean, I would start with at least those three things to make it somewhat meaningful. But at the end of the day, I actually believe VERO BEACH COURT REPORTERS 772-231-2231 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 some of the stuff about the need and high-speed rail for density and stuff like that, but it's just... the one good thing now, I would be happy if actually Indian River County and Martin County both negotiated for a station because that's just going to lead to a worse financial situation that much more quickly so if they did come, it'd just go out -- I'm serious -- they'd go out of business that much faster. But I believe at the end of the day it's just a red herring and that we're wasting our time going down that track and it's, it's meant on their part to first divide us and, second, to undermine public support for our flight against their related project so... CHAIRMAN O'BRYAN: And I would agree with your points. I think we get a station, we don't have to apply for it, minimum four each way, I'm good with that, because it's got to be worthwhile so I'm good with all that because everybody else is. COMMISSIONER ZORC: And divided throughout the day not four that all come between 11:30 and 12:30, some type of crowd people scheduling. CHAIRMAN O'BRYAN: A couple morning, a couple afternoon or whatever. COMMISSIONER FLESCHER: I'm up to the scheduling part yet because I don't know, I didn't leave my notes in VERO BEACH COURT REPORTERS 772-231-2231 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 front of Commissioner Solari but I can easily stay ditto. I think that we have too much invested into this in taxpayer dollar and there's been solely the same few folks are there regardless of what we say, Well, it's pick it -- a negotiation factor maybe perhaps we can soften this up, I think this is all in vain. CHAIRMAN O'BRYAN: So maybe before we get too deep in this part, Dylan, why don't we review, you know, where we are with the federal case. I know you mentioned we're waiting on Judge Cooper's ruling -- ADMINISTRATOR BROWN: Right. CHAIRMAN O'BRYAN: -- and... well, one, what I understand is if they find buyers for those bonds, say, this week, that the likelihood of the Judge revoking those bonds is pretty slim to none so we have that staring us in the face: They, they have the permission to sell them so that's out there. So if they sell them -- if they get them sold quickly, we're in a bad position. If the federal judge rules against us, we're... are we about out of moves at that point? ATTORNEY REINGOLD: Well, I mean, at that point you'd be looking at an appellate option: Taking it up to the appellate court for the District of Columbia. COMMISSIONER ZORC: But they'd already have the bonds sold by then. VERO BEACH COURT REPORTERS 772-231-2231 It -OR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN O'BRYAN: Then, the bonds would be sold and we don't our... much of a bargaining position at that point. ADMINISTRATOR BROWN: One thing I think is important is they don't have to... not only have the bonds, they can, they can disallow the tax exempt nature of the bonds which is a major risk to bondholders buying that, you know, because if you're buying this assuming I'm going to get 5 percent interest tax free and it turns into 5 percent interest that's taxable, that's a different thing. So I would agree with the overall concept that if we get a bad outcome, you know, I will leave that to Dylan, but we've got fewer, fewer options left but I still think in the bond buyers' minds there, there is that doubt of the tax exempt ability of the bonds. I think that could still be ruled that they're taxable which, you know, they still sold the bonds maybe but I think that impacts the bond buyer and the market. CHAIRMAN O'BRYAN: Okay. I just want to -- so we're all clear on what our position, I think, going forward -- COMMISSIONER ZORC: There's a window, yeah. CHAIRMAN O'BRYAN: -- I would kind of agree with Commissioner Solari and Commissioner Flescher, I do think VERO BEACH COURT REPORTERS 772-231-2231 Im 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 it's a red herring. But what Rusty Roberts told me two weeks ago is that the reason they've kind of brought this up is their ridership studies are showing they are pulling people from these counties so they think there might be more riders than they first thought. Again, I'm just passing on what he says. I don't know what, what credibility there is -- ADMINISTRATOR BROWN: How many times has Dylan ridden on that thing? (LAUGHS.) ATTORNEY REINGOLD: I rode on it once south and once north. CHAIRMAN O'BRYAN: Well, there you go. It's, like, 100 percent -- COMMISSIONER ZORC: That's 100 percent increase in Indian River. CHAIRMAN O'BRYAN: But I think the point I was getting to is instead of fighting for the flyover, let's fight for a station because I think we may realistically have a better chance of getting that than the flyover thing. COMMISSIONER FLESCHER: I agree with your preference choice, however, it's very difficult to support that action going forward. It's just another indication that perhaps maybe we're looking at this as saying: It's VERO BEACH COURT REPORTERS 772-231-2231 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 inevitable, okay, we'll take the best option. And I think it's disingenuous to our community folks. We've talked about this for a number of years and we know the public sentiment, whether it's access to hospitals, whether it's access to other community needs or necessity, it's, it's all about safety and the threat and danger. Counselor, you mentioned that they're already compelled to do all of those safety applications. ATTORNEY REINGOLD: Well, there's a certain level of safety improvements that they've have done per FRA. There are things that we've requested, public works has requested on top of that, the concept is to then wrap in those requests and have those incorporated in as part of their crossing development plans. COMMISSIONER FLESCHER: Well, if the safety applications significant... I understand we have some turn "laning" concerns and some, something they call barrier, we call fence. But again, is it significant where it compromised public safety if that was part of the negotiation tool. ATTORNEY REINGOLD: They're going to argue, obviously, that they've put in what FRA, the Federal Railroad Administration, has required and, therefore, they're meeting all their necessary minimum safety standards in the light. And I would assume I would hear VERO BEACH COURT REPORTERS 772-231-2231 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 from them is what we're asking for is icing on the cake to make our community safer. I will have to get back on that issue. But, I mean, it's clearly things that our, our folks, our public works department has reviewed carefully in the plans and felt that they were necessary improvements that they needed to see. COMMISSIONER FLESCHER: And not the fact we're looking at the gold standard and they are offering all, because they're required to, at this, this silver podium. ATTORNEY REINGOLD: That, that would be the analogy of it I understand. COMMISSIONER FLESCHER: Okay. VICE CHAIRMAN SOLARI: Would it be safe to say that when you add in all the public works' safety requests that that would make each course in Indian River County a quiet zone? ATTORNEY REINGOLD: I believe it would make it ineligible. But I will, I will note that there are... there's at least one crossing, I believe two, that actually they aren't going to be above 80 miles an hour or meet 80 miles an hour. And Rich has requested for those to be, essentially, a full sealed court order. VICE CHAIRMAN SOLARI: I mean, we could use the quiet zone as a way of establishing the bear minimum requirements for each crossing. VERO BEACH COURT REPORTERS 772-231-2231 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ATTORNEY REINGOLD: Yes. That would be a part, yeah, of the -- COMMISSIONER ZORC: Dylan, you just mentioned 80 instead of the 120 that's on the plans. Is there a change on the speed? ATTORNEY REINGOLD: So what they've explained and what I believe Rich has heard from them is there's actually a couple of crossings in Indian River County where they will not be going the full 105, 106 miles an hour. I believe there will be many that they are reaching those high speeds but because of some sort of turn or some sort of geographical limitation -- COMMISSIONER ZORC: The 4th Street curve -- ATTORNEY REINGOLD: -- there's a couple of areas that they would not be at that speed. COMMISSIONER FLESCHER: Counselor, one of the things that we just mentioned, quiet zones, have you clarified that the operators still have the option to utilize their sound device if they choose to? ATTORNEY REINGOLD: To the best of my knowledge the engineer has the ultimate discretion to blow the horn in a quiet zone. COMMISSIONER FLESCHER: Thank you. ATTORNEY REINGOLD: So and then one other issue I wanted to make sure that I talked about with you today VERO BEACH COURT REPORTERS 772-231-2231 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 is the cities. One of the things I presented to All Aboard Florida in our last call was said, Hey, I'd like the opportunity for our cities to be able to take advantage of any deal that we get. So as I've heard from public works, we've, we've reviewed the plans in the unincorporated areas of Indian River County, Hawk's Nest and the two Sebastian ones, we've only forward on to the city their comments and so the concept was: Do we want our cities to be able to take advantage of a 14 -year moratorium or a cap on the fees and have them be able to get their improvements and their closings. All Aboard Florida came back and said, Well, what does that really look like considering there were other things that we're agreeing to. But it was just something I, I wanted to make sure you were aware of the concept and wanted to get your temperature on it. VICE CHAIRMAN SOLARI: I think we have to. COMMISSIONER ZORC: I agree, yeah. Treat everybody the same regardless -- VICE CHAIRMAN SOLARI: This is a county issue. It's not unincorporated county -- ADMINISTRATOR BROWN: And we've been funding the fight from the general funds so -- VICE CHAIRMAN SOLARI: This is All Aboard -- VERO BEACH COURT REPORTERS 772-231-2231 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ADMINISTRATOR BROWN: -- the municipalities are paying too so weeding them out seems... (Shrugs shoulders.) VICE CHAIRMAN SOLARI: Wrong. ATTORNEY REINGOLD: So those are some of the concepts of the things we would be searching for and getting a more definitive answer on on some of this part of the negotiations. There are things that they've obviously asked from Indian River County and from Martin County, one is probably the most obvious: We would dismiss our current lawsuit; No. 2, generally, they would be looking for us not to support or move forward in encouraging anyone to support the Railroad Safety Study or legislation in Tallahassee. The trait -- Well, I think in their view the trade-off is if we put in the safety improvements that you're asking for, Public Works Indian River County, I don't want to then turn around and have you legislate against me in Tallahassee for more than what we agreed to. Now, I will say, one of the very difficult points of this negotiation right now is the fact that they, basically, wanted us to walk away from our right to complain about/move forward on any future issues that happen with Brightline. And so what we've countered to them is: Look, VERO BEACH COURT REPORTERS 772-231-2231 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 we are willing to put down our lawsuits and our pushing for safety legislation in Tallahassee through your building of the train and maybe a year after; but the concept for us is, let's say you start operating in Indian River County and you do kill 20 people in the first three months, I'm not going to put down our ability to go to Tallahassee and say, Clearly, we've noticed something is extremely wrong here, we need you to do more or, FRA, we need you to do more. I cannot see negotiating that away. Their counter to that appears to be, Well, then basically, if you walk away from the deal four years out then we're going to walk away from the deal four years out and, thus, your benefit of the cap on your maintenance cost will then disappear if you complain about something. I don't think that's a tenable position. I think the 14 years moratorium needs to be the cap and that shouldn't handicap this board or any future board from being able to recognize any threat to public health and safety and welfare for this community. My thought is: You guys are going to get the huge bargain of our lawsuits going away and us not supporting the current legislation in Tallahassee that lets you build your project and from there we need to be able to protect our community. But I wanted to get a sense of, those are some of the ideas we've been talking about. VERO BEACH COURT REPORTERS 772-231-2231 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN O'BRYAN: Well, yeah, I would agree we do not want to give up our future rights to take action if something new pops up. I don't know what it might be. It might be the LP Gas they want to truck through here or something like that. But I don't, I don't see us giving away any of our rights to take away future actions. VICE CHAIRMAN SOLARI: I don't see how we possibly could as a responsible government. CHAIRMAN O'BRYAN: So I think we've got -- COMMISSIONER ZORC: If we could say it would be something that... these wouldn't be frivolous things that we're just making up to be an irritant. It would have to be based on, like to use the example of, unique instances in an area of track that something else needs to be done or... yeah, you can't, you can't... I can see why they would want get a clean slate that you can't ever do anything, but the practical side is we don't know what's going to happen and what might need to be, to be done. CHAIRMAN O'BRYAN: I don't think that we can add language that if something does come up, we would be willing to negotiate first and -- COMMISSIONER ZORC: Right. CHAIRMAN O'BRYAN: -- you know, go through a process before we ever did consider litigation. But, you know, we wouldn't just jump to a lawsuit the very first VERO BEACH COURT REPORTERS 772-231-2231 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 time they had a hiccup but we still retain the right to litigated if we needed to. ATTORNEY REINGOLD: Or legislate, or legislate. CHAIRMAN O'BRYAN: Or legislate, yeah. ATTORNEY REINGOLD: One other thing, and this is very attorney issue based but I just want to make sure I ran it by you, they have thrown in a waiver of jury provision into their draft and had put in venue in Miami -Dade County. I, of course, took out the waiver of jury and said, No, if it's a Martin County issue, it's in Martin County; if it's an Indian River County issue, it's in Indian River County. Not surprising, they pushed re -back on me on that one. Is there... if there was a trade-off, would you guys support the waiver of jury if it happened in Indian River County or would your preference be: We would be willing to hold onto the jury option but we would be willing to have it in Palm Beach County? I just didn't need know where this board sat on these issues. And I've got two people in the room with bar degrees or, at least, aw school education. VICE CHAIRMAN SOLARI: I just spent a lot of time including e-mail this morning explaining why I'm supporting voters' rights and then for and why I tried to support individual rights in every part of the VERO BEACH COURT REPORTERS 772-231-2231 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 constitution. I don't think I'm ready to give up constitutional rights to help Brightline in any fashion so... but again, that's my own individual bias having spent the last 16 months with certain type of books and... drops. COMMISSIONER FLESCHER: Venue where the ball COMMISSIONER ZORC: What about the jury/non-jury? I think if you get it local -- VICE CHAIRMAN SOLARI: When they've killed the seventh Indian River County resident, I want a jury of their peers deciding their case. ATTORNEY REINGOLD: And part of it's going to be really venue or disputes about this agreement. So it's not that we're going to be designating where our venue is if we sue them for something, it's going to be a: If there's a perceived breach or violation of this agreement, where does that happen. COMMISSIONER ZORC: Anywhere but Jacksonville, Orlando, and Miami. Anywhere else is acceptable. VICE CHAIRMAN SOLARI: They used -- they gamed us with this Palm Beach South/Brevard North/PAB gamut this whole time. I think it's consistent to say that this agreement is centric to the three counties so that's where the litigation ought to be. COMMISSIONER ZORC: And speaking of three VERO BEACH COURT REPORTERS 772-231-2231 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 counties, does St. Lucie get a free ride on this same deal? ATTORNEY REINGOLD: So our agreement does not touch on St. Lucie County. It doesn't talk about them and any maintenance fees or any other issues. VICE CHAIRMAN SOLARI: And there goes their station. ATTORNEY REINGOLD: Well, I will tell you All Aboard Florida right or Brightline said to me, you know, We're moving forward with working with, you know, Fort Pierce, Stuart or wherever they are right now and said they were looking for a counter -proposal quickly on this issue. VICE CHAIRMAN SOLARI: Of course they said that, they'd have to. It's consistent with anything else they're trying to make us believe in this good, brilliant, nice iridescent red herring. ATTORNEY REINGOLD: So those are -- Are there any other critical issues you guys that you think I've missed in a discussion? I just don't want to go back and have a conversation with them, saying, These are our essential points, and having missed something. CHAIRMAN O'BRYAN: Is there any possibility of getting them to agree to a speed limit through the county? ATTORNEY REINGOLD: The answer to that from them VERO BEACH COURT REPORTERS 772-231-2231 30