MINUTES
OF MEETING
NORTH
SPRINGS IMPROVEMENT DISTRICT
The
regular meeting of the Board of Supervisors of the North Springs Improvement
District was held on
Present and constituting a quorum were:
Salvatore Mendolia President
Steve Mendelson Secretary
Also present were:
John Petty Manager
Michael Pawelczyk Attorney
Jane Early Engineer
John McKune CH2M
Hill
Jean M. Rugg
FIRST ORDER OF BUSINESS Roll Call
Mr.
Mendolia called the meeting to order and called the
roll.
SECOND
ORDER OF BUSINESS Approval
of the Minutes of the April 12, 2006 Meeting
Mr.
Petty stated each Board member received a copy of the minutes of the
There
not being any,
On MOTION by Mr. Mendolia seconded
by Mr. Mendelson with all in favor the minutes of the
meeting of the
THIRD
ORDER OF BUSINESS Consideration
of WA #161 – Heron Bay Commons Tennis Club Hurricane Repair and Maintenance
Mr.
Petty stated this is for engineering work associated with them overseeing the
job. This is the second half. The first half was prepping all of the
documents and putting them out to bid.
Mr.
Mendolia asked what is the timeframe to complete
operation on it?
Mr.
Petty responded I believe the contract was short. Was it 30 days?
Mr.
McKune responded approximately. They are going to sub-consult with the
original architect. They are going to
start working next week. It will take 30
days.
Mr.
Petty stated this is for the tennis court repair not the structural.
Mr.
McKune stated it will be 30 days.
Ms.
Early stated this is for the clubhouse.
Mr.
Petty stated I am sorry. It is my
mistake. I misinterpreted the work
authorization. I asked for our engineer
to do a structural evaluation because we had roof damage and structural damage
with fences as well as the holding areas where people wait for tennis. They were bent from the storm. I do not want the contractor doing repairs
when it is the structure, which has been damaged. We have estimates from a roofer, our
insurance company and FEMA for the repairs, but no one has gone up in the attic
to see how much wood was damaged. We are
getting a structural engineer as a substitute to our engineer to go underneath
all of the material, check the structures and everything damaged, including all
poles and support structures.
The
pool is damaged. The marcite
is gone. We have a couple of structural
issues we noticed from original construction.
There are two holes in the structure at the top of the entry feature. The management company has put pigeon wire to
stop the pigeons from resting there. Painting
needs to be done. It is time to overhaul
the entire structure. We have our
engineers doing it. This work
authorization is to allow them to do it.
We have an estimate from their substitute in the $20,000 range. They will get paid according to an hourly
rate and then they have to pay their substitute.
Mr.
Mendolia asked is WCI getting involved?
Mr.
Petty responded WCI is getting involved in our questions and in getting outside
observations. When it comes to funds, we
have many options. They included
original funding provided for the original structure. We do not think this will negatively impact
the budget coming up to you. I apologize
for making you think it was for tennis court repairs.
On MOTION by Mr. Mendolia seconded
by Mr. Mendelson with all in favor WA #161 for the
Heron Bay Commons Tennis Club hurricane repair and maintenance was approved.
FOURTH
ORDER OF BUSINESS Consideration
of Change Orders
A.
Ms.
Early stated these change orders are for work currently under
construction. The reason for the change
order is because the contractor was held up by WCI. These change orders are all WCI costs. Even though the increases include water and
sewer, WCI has to bear the cost of the increases. These projects were bid over 90 days
ago. Because WCI was the hold up, they
have to pay to relieve these costs.
Mr.
Petty stated they have the exposure. This
is going to come from our fee base system.
WCI bears the risk of not receiving payment.
Mr.
Mendolia asked are they aware of this?
Ms.
Early responded yes.
Mr.
Petty stated it is a complicated set up, but it works well. If WCI changes its development, gets held up
or adds more units and you get a cost increase, the only way they can get
compensation from us is if we get more connection fees or user fees, which are
part of their reimbursement. They bear
the burden.
Mr.
Mendolia asked did they sign this?
Ms. Early responded yes, they signed
it.
On MOTION by Mr. Mendelson
seconded by Mr. Mendolia with all in favor Florida
Sewer and Water Change Order No. 1 for Heron Bay Commercial Residential
Development Parcel for a net increase of $40,475.36 was approved.
B.
Ms. Early stated this is the same issue. The reason there is one and two is we
separated them to make it clear. They
were bid together, but when we did the change order we separated them. They are WCI costs as well.
Mr.
Mendolia asked does the same situation apply?
Ms.
Early responed yes.
On MOTION by Mr. Mendelson
seconded by Mr. Mendolia with all in favor Florida
Sewer and Water Change Order No. 1 for Banyan Isles and Sable Point for a Net
Increase of $234,466.10 was approved.
C.
Ms.
Early stated this is the same issue.
On MOTION by Mr. Mendelson
seconded by Mr. Mendolia with all in favor Florida
Sewer and Water Change Order No. 2 for Banyan Isles and Sable Point for a net
increase of $143, 385.71 was approved
FIFTH ORDER OF BUSINESS Staff Reports
A. Manager’s
Report – Discussion of Upcoming Budget and Schedule
Mr. Petty stated we will start the budget process by
bringing you a proposed budget. It is
typically similar to what you spent last year with whatever we discussed this
year to start up with. It is for you to
approve so I can send it out to other government agencies and to residents who
want to get involved. We will start
discussing the projects and the costs.
At the first budget meeting, which will be at your next meeting, we will
pick a date for the public hearing to take place. Ms. Rugg has a strict schedule. We must have the public hearing 60 days after
we approve the proposed budget to have public input. After we take public input we will adopt the
budget. There are some formal issues we
will go through in adopting resolutions and assessment rates in the
process. The first step is at our next
meeting where we will have a draft budget for your review.
Mr.
Mendolia asked do you want to pick a date?
Mr.
Petty responded because we have been bouncing our calendar around, it is
disoriented. We would like to clarify
when our next meeting is going to be so we can work out everything for the
budget hearing.
There
was Board consensus to have the next meeting on
On MOTION by Mr. Mendolia seconded
by Mr. Mendelson with all in favor the next Board
meeting was scheduled for
Mr.
Petty stated we have submittal from our engineers. Their corporate parent is asking for a rate
increase on a per hour basis, which affects all of our construction
projects. It is not unusual during these
times with gasoline, construction and housing costs going up. I am going over the bills on the construction
projects and I am not happy, but the per hour rate is
not out of line. I am working with Mr. McKune and will be working with Ms. Early on this
issue. It seems they are exceeding
acceptable norms for engineering fees, which are typically around 7.5%. I will be sitting down with both of them to
go over these issues. The increased
hourly rate requested is not out of the standard.
Mr.
Mendolia asked did you say it is 7%?
Mr.
Petty responded they typically get 7.5% for one part or the other. It is 14% total for design and then
construction. They might say it is
supposed to be 7.5% each, but I think they are trying to get another
point. Mr. McKune
and Ms. Early have always provided extra work.
I recommend you do it along with the budget at the next meeting.
When
it comes to the Heron Bay Commons agreement and having the HOA operate and
maintain it, we are very close. Our
intent in the new agreement is to make the HOA responsible for satisfying the
recreational demands of the residents. We
will hold them accountable for everything.
Mr.
Mendelson asked have they decided what they will do
as far as non-residents coming in to use their facilities? Is it a closed issue? People can come in.
Mr.
Petty responded it is a closed issue. Staff
made it clear that it is a public facility.
Mr.
Mendelson stated I want to make sure they are aware
of it so whatever the situation is, they have to handle it in the context of
what we voted on last time.
Mr.
Petty stated you have the review rights.
Should you find or hear of any violations, it is a way for you to come
back. Counsel has put in the current
proposal amendment for there to be a right to terminate with a 30 day notice.
Mr.
Pawelczyk stated as well as a division in the
agreement requiring the HOA to abide by our charter when dealing with the
purchase of any supplies and the $4,000 limit we have. They have to do it by law. We put it in there to make sure they
understand it as well as comply with any bond covenants, which govern the
District. The bond covenants dealt with
the tax exempt bonds issued. In order to
issue tax exempt bonds, it must be a public facility. It all revolved around the bond covenants and
they are required to not breach those.
If they want a copy of them, we indicated in the agreement they are
available to them.
Mr.
Petty stated when the agreement comes to you in its final form, which will
happen before
Mr.
Mendolia asked what about financially?
Mr.
Petty responded we will get a one line item budget saying management. They will get 1/12 of the fee and they must
fill the room with all life cycles, furniture, pictures, food as well as paying
the utility bills. They must do it
all. It will take you out of the problem
area.
None
of the money comes back to us. If there
is any offsetting revenues from fees they charge, it offsets their cost. We are responsible for maintaining the
structure and administrating the contract.
When you get your budget you will see three line items. Administrating the contract is a line item I
will put in there for counsel to review if there is a problem. There will be another line item saying
reserve for structure, which is what we should do for owning an $8 Million
asset. When it comes to Heron Bay
Commons, we have monies in our construction account we can use to build new
tennis courts. It looks like we have
room for at least four tennis courts.
With your permission, I will put it in the proposed budget for
consideration.
Mr.
Mendolia stated do it.
Mr.
Mendelson stated it will make them happy.
Mr.
Mendolia stated it should make WCI happy. If they want to sell houses, the only way
they will do it is with tennis courts.
People love it.
Mr.
Petty stated we know on existing land we can get in approximately four
courts. We also have land on the other
side. When you enter the main structure
it will be on the left. There is a long
parking lot and a canal. There is land
there we might not need for the flow way.
We might be able to fill it in and get enough room for a court. I have not talked to our engineer yet.
Mr.
Mendolia stated if you put those courts in, you will
have a great deal of happy people.
Mr.
Petty stated we are close to getting a final agreement, which will keep it
simple for this Board. If any resident
comes hear to complain, they will need to get enough people for us to fire
them. Everything else must go through
the HOA.
We
have an item, which was not in your agenda.
It is an item we told you we were going to put out to bid. It is the hurricane debris removal and canal
bank restoration. We talked about it at
the last meeting. Our engineers put it
out to bid. They have a bid tabulation
to go over with you. We opened these
bids on
Mr.
McKune stated on
Mr.
Mendolia stated something is wrong.
Mr.
McKune stated I believe something is wrong on the
high end and not the low end. I think
this person did not look at the job and put their bid in hoping to get it. This is a good amount from Arbor Tree &
Land, Inc. They are doing the work in
CSID. They are a well qualified
company. We reviewed the bids and we
recommend the Board award the project to Arbor Tree & Land, Inc. subject to
the two concerns in this letter; determination of NSID vegetation removal
and/or permitting process and funding being available.
Mr.
Mendolia asked does this cover any area of NSID?
Mr.
McKune responded for hurricane damaged areas.
Mr.
Petty stated most of the trees, which were down in the berm
area of Parkland Isles, have been removed by the landscaper and paid for. We submitted applications. Let me speak to the type of removal because
your sister districts, CSID and SWCD, had huge problems with this tree removal
program. We had Australian Pines,
Banyans and other trees, which grew next to the canal systems. We do not have this situation in NSID, which
is a water management facility and we do not have standing waters with
seedlings. We have some trees
damaged. Our concern is to remove the
debris and to more importantly put the shape back to the bank. I am glad to see the number is as low as it
is. Arbor Tree & Land, Inc. is
working on one of the contracts at CSID.
Their equipment is outstanding and their people are capable. The only issue we have with him is on some of
the side deals. We are trying to work
with him and we are hoping to take advantage of his generosity. He is not so generous. He does the removal work expeditiously. We also recommend you award to them subject
to the definition of item one by the engineer.
I would like more information on the concern about the vegetation
removal process.
Mr.
McKune stated if there is a concern to be covered, I
do not believe it is a concern at NSID.
It is no longer an issue.
Mr.
Petty stated Mr. McKune and I had several discussions
in our sister districts on how do we spend $2 Million to $3 Million removing
downed trees without having a policy on the trees left standing. Only half of the trees were knocked down
during the hurricane. NSID is a
different animal. We do not have this
issue here. This is nothing more than a
few trees planted for aesthetic value, which have fallen in our area. We can clean them up without trying to
administer how everyone grows trees in their backyards. I do not advise the Board to consider it at this
time.
On MOTION by Mr. Mendolia seconded
by Mr. Mendelson with all in favor the hurricane
debris removal and canal restoration project for NSID was awarded to Arbor Tree
& Land, Inc.
B. Attorney
There
being no report, the next item followed.
C. Engineer
Mr. McKune stated we have two
drainage pumps in NSID, which take care of drainage for the entire
District. The original pump station is
Pump Station No. 1 at the end of
We
only have one pump piped up to discharge to the
I
spoke with them since then and they will be through with their large job at the
end of this month. They feel they can do
the work. On page two of your handout is
a copy of the format of the bid tabulation, which was submitted. Page three is a copy of their original
quotation to do the work. If you add up
the numbers it comes to $81, 331. If you
look at the structure of the quotation and compare it to the bid tabulation,
you can see the structure is identical. With
hurricane season around the corner, we would like to get this job done as
quickly as possible. If we need to, we
can re-bid the project. I ask you to
allow us to negotiate with FPI to do the work.
The quotation is a reasonable and fair price. They want to do the job. It is the best route for the District to
take.
Mr.
Mendolia asked do you see any problem with this?
Mr.
Pawelczyk responded no. I discussed this with Mr. McKune
a couple of weeks ago when you did not receive bids. There is a statutory provision in your build
and public improvement. It requires you
to bid projects over a certain amount.
If you do not get bids, you can negotiate. We can do this because the bid was publicly
advertised and no one responded.
Mr.
Mendolia asked are you going to negotiate with them
on $81,000?
Mr.
McKune responded yes.
I will try.
Mr.
Mendolia asked did we ever talk about the pump situation?
Mr.
McKune responded I am sure we have.
Ms.
Early stated you gave us permission to bid it.
Mr.
Mendolia stated I am talking before that.
Mr.
McKune stated it has been a progressively worsening
situation. There were interim repairs
made repeatedly. You cannot repair it
again.
On MOTION by Mr. Mendolia seconded
by Mr. Mendelson with all in favor general
construction for Pump Station No. 1 at an amount not to exceed $98,000 was
awarded to FPI, Inc.
SIXTH
ORDER OF BUSINESS Approval
of Requisitions and Invoices
There being no questions or comments,
On MOTION by Mr. Mendolia seconded
by Mr. Mendelson with all in favor the requisitions
and invoices were approved.
SEVENTH
ORDER OF BUSINESS Supervisor’s
Request and Audience Comments
There
not being any, the next item followed.
EIGHTH ORDER OF BUSINESS Adjournment
There being no further business,
On MOTION by Mr. Mendolia seconded
by Mr. Mendelson with all in favor the meeting was
adjourned at
Jean M. Rugg Salvatore J. Mendolia
Assistant Secretary President