MINUTES OF MEETING

PORT OF THE ISLANDS

COMMUNITY IMPROVEMENT DISTRICT

 

            The regular meeting of the Board of Supervisors of the Port of the Islands Community Improvement District was held on Friday, January 27, 2006 at 10:00 a.m. in the Egret Room, 25000 Tamiami Trail, Naples, Florida.

            Present and constituting a quorum were:

 

            Richard Gatti                                                    Chairman

            Dale Lambert                                                   Vice Chairman

            Ted Bissell                                                        Assistant Secretary

            Norine Dillon                                                    Assistant Secretary

            Richard Ziko                                                    Assistant Secretary

 

Also present were:

 

            Edward Goscicki                                              District Manager

            Dan Cox                                                          Attorney

            Ron Benson                                                      Engineer

            Tom Mack                                                       Staff

            Tim Stephens                                                    Field Manager

            Bob Dick                                                         Severn Trent Services

            Christopher Shucart                                          POI Hotel & Marina

            James Shucart                                                  POI Hotel & Marina

            Samantha Marchand                                         POI RV Resort

            Numerous Residents

 

FIRST ORDER OF BUSINESS                               Roll Call

            Mr. Gatti called the meeting to order and Mr. Dick called the roll.

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the December 16, 2005 Meeting

            Mr. Gatti stated each Board member received a copy of the minutes of the December 16, 2005 meeting and requested any additions, corrections or deletions.

            There not being any,

 

On MOTION by Ms. Dillon seconded by Mr. Lambert with all in favor the minutes of the December 16, 2005 meeting were approved.

 

            Mr. Gatti stated we will discuss the third order of business once everyone gets here.  In the meantime, we will discuss the open items.

 

FOURTH ORDER OF BUSINESS                          Open Items

            Equipment Inventory

            Mr. Dick stated the list has been completed on the inventory.  However, I do not have it with me.  Mr. Stephens and I worked on this earlier in the week, so we do have a list.  The only question Mr. Stephens had was how extensive you wanted the list and if it was to include every piece of equipment and if we established a limit of anything over $500.

            Ms. Dillon stated I thought we agreed on $250.

            Mr. Lambert stated that is what is written down.

            Mr. Dick stated we can incorporate this.

            Mr. Lambert asked did we get those two new generators on the list?

            Mr. Dick responded yes.

            Mr. Ziko asked when will we be able to get a copy of this list?

            Mr. Dick responded I can bring you a copy next week.

            Mr. Bissell asked will the list have the new items?

            Mr. Dick responded yes.

            Reuse Water for Irrigation

            Mr. Ziko stated since Mr. Benson and Mr. Stephens are not yet here yet, we should hold off on this discussion.

            Mr. Gatti stated the meters need to be hooked up, which cannot be done until the restoration work is done.

            Mr. Ziko stated I want to find out where we stand, and Mr. Benson and Mr. Stephens.will be able to tell us.

            Mr. Goscicki asked are you referring to the installation of the irrigation lines?

            Mr. Ziko responded I am referring to the entire system setup.

            Mr. Lambert stated there is some other equipment which still needs to be installed.

            Mr. Gatti stated as far as I know, Mr. Benson will be here.

            Mr. Goscicki stated I spoke to him yesterday on several issues, and as far as I know he will be here.

            Fire Station

            Mr. Ziko stated although Mr. Cox is not here, Mr. Mack can update us.

            Mr. Mack stated I spoke to Ms. Marchand who has been in discussion with the new owner at the park, who said he is going to go along with what Ms. Marchand proposed.  He is currently trying to work out the tax ramifications, and hopefully he will have it for the next meeting, at which time we should be able to go through it.

            Mr. Lambert asked has Mr. Cox been working with him at all?

            Mr. Mack responded no, it has just been Ms. Marchand and myself.

            Mr. Lambert stated we probably need to get Mr. Cox working on this if we are ever going to get this done.

            Reuse Water for Irrigation                           (Continued)

            Mr. Benson stated we have all the equipment and materials.  However, the prices we received from contractors have been too high.  We asked a couple of other companies to give us prices and proposals.  I want to ask the Board if it is acceptable for our firm to provide the information to Severn Trent Services because they have the ability to install these pumps, valves, pipes.  Perhaps they will be able to give us a more responsive price because the general contractors are pricing it too high since it is a small project.  Installation of valves and pumps are not of an interest right now for local contractors.

            Mr. Bissell asked does this require a motion?

            Mr. Goscicki responded I believe it does since it involves waiving your competitive procurement in order to do a sole source negotiation with Severn Trent to provide this service.

            Mr. Gatti asked how much will this cost?

            Mr. Benson responded originally we were discussing $25,000 or less.  I gave you a list of equipment and the cost for installation a few months ago and you authorized us to get some prices and have it done.  These contractors are not interested and are giving us unreasonable prices.

            Mr. Gatti asked will this be in the range of $25,000?

            Mr. Benson responded it may be higher since more items were added to the project.

            Mr. Gatti asked what is the Board’s pleasure?

            Mr. Benson responded I do not want to discuss the numbers in order to give them a fair chance.  We have a major capital improvement project at the irrigation pump station, which is a separate project we designed, and I have been working with Mr. Cox on issues with the property for that pump station.  We have to go outside our existing fence to install new equipment and ensure we put it on property which you have an easement to, which is currently being verified.  This project is well designed, unless equipment has to be move around.

            Mr. Gatti asked are we talking in round numbers of less than $30,000?

            Mr. Benson responded I believe so.

 

On MOTION by Mr. Lambert seconded by Mr. Bissell with all in favor staff was authorized to obtain a price from Severn Trent Services to install pumps, valves and pipes as part of the Reuse Water for Irrigation Project.

 

            Fire Station                                                     (Continued)

            Mr. Mack stated I have not spoken to Ms. Marchand since the last meeting.  However, she spoke to the new owner and he sees the need for a fire station, and he agrees with Ms. Marchand’s proposal.  He needs to understand the tax ramifications and we should have something for the next meeting.

            Mr. Gatti asked what is the next step in this process?

            Mr. Cox responded I will need to get the title updated which will take approximately one week and we can close as soon as they ready.

            Mr. Gatti asked do you need authorization from the Board in terms of money being spent?

            Mr. Cox responded there will be some related expenses, such as title insurance.  I also need to know whether or not we are going to purchase the other 1 ½ acres we discussed.

            Mr. Mack stated that issue may be part of it, and it may be different than what it originally was.

            Ms. Marchand stated Mr. Holecek indicated he is definitely inclined to do this and he is working on making it happen in the best interest of the District.  He has some ideas and he is working with someone in order to make it a nominal investment on behalf of the District.

            Mr. Gatti stated at this point, we are waiting on Mr. Holecek.

            Ms. Marchand stated he is not tied down to a time schedule.

            Mr. Gatti asked are there any steps we should be taking at this point or are we just waiting for the owner?

            Mr. Cox responded I have everything I need.  When they are ready, we can close.

            Mr. Gatti stated we are waiting for the owner to come back with some proposals.

            Ms. Marchand stated I believe Chief Wilson stated that is the property he wants.  Therefore, I do not think there is anything further which needs to be done at this point until it can be transferred.

            Entrance Monuments

            Mr. Ziko asked will we ever get these done?

            Mr. Dick responded I hope so.  The most recent delay has been permitting because the driveways to the Cay and the driveways to the marina are the dividing line for individual property ownership.  We want two signs at the entrance to the Cays, and the east and west side are owned by different individuals.  This became an issue during permitting.  There is a meeting Monday morning with the Collier County permitting office to try to resolve the issue.  The sign company told me they can put up one sign so that if you are driving south or east you will be able to see the signs, one at each entrance.  They cannot put up the other ones because this is where the permitting problem is.  I do not think you want one-half of the sign up.  After Monday’s meeting, we will have a better understanding as to if they can put them on both sides of each entrance or if it is going to be an issue going forward.

            Mr. Ziko stated I was under the impression this was part of the CID’s property which we are responsible for.

            Mr. Benson stated Mr. Cox and I put together a survey, legal descriptions and documents because some of those signs were on private property and some were on CID property.  Therefore, we prepared documents which will enable the Board to get the owners to give you easements, giving you ownership of the entire area.

            Mr. Ziko asked was this ever done?

            Mr. Cox responded it has not been done, and I am not sure what transpired.  However, I know who to contact.

            Mr. Ziko asked will we see the signs within three or four months?

            Mr. Dick responded hopefully you will see them sooner.

            Mr. Benson stated Mr. Cox has all the legal descriptions for those locations.

            Mr. Dick stated the sign company is meeting with the Collier County permitting office Monday morning to try to resolve this.

            Mr. Gatti asked do the owners need to be involved?

            Mr. Dick responded we may need the owners.

            Mr. Cox stated we can get easements from the owners.

            Mr. Dick stated they determine ownership via the Collier County Tax Appraiser’s Office.

            Mr. Gatti stated it seems as though you have a long way to go.

            Mr. Ziko asked does the same person own both sides of Cays Drive?

            Mr. Dick stated I was told there were different owners at each entrance.  It is split with different ownership on each side.

            Portable Generator for Sewage Lift Stations

            DEP Letter – Compliance Inspection Report

            Mr. Dick stated the portable generator is parked at the plant and ready to go for any emergency for the wastewater lift stations or anywhere else it is needed.  The generator for mounting out in the well field is also on site.  Mr. Stephens completed pouring the concrete foundation for it.  The next step is to physically set a crane there and have it connected.

            Mr. Ziko asked is this part of the compliance we were supposed to have done by December 31st?

            Mr. Dick responded that is correct.

            Mr. Ziko asked has it been done?

            Mr. Dick responded it is not complete.

            Mr. Ziko stated we are now out of compliance with the State.

            Mr. Goscicki stated this is not a non-compliance issue.  You are dealing with a consent order.

            Mr. Benson stated it was a letter, not a consent order.  However, I am not certain this was part of the December 31st deadline.

            Mr. Lambert stated it was on the same letter.

            Mr. Benson stated the December 31st deadline relates to specific regulatory requirements.  We had to get the mapping of all the water system valves which is called the Operation Maintenance Plan.  We also did a couple of other documents, and one of them is the emergency preparedness plan which Severn Trent is working on.

            Mr. Ziko asked can you get that letter out again to make sure because I thought it was pretty specific that the generator had to be in place in order for us to be in compliance.

            Mr. Gatti stated we showed the State a conscientious effort.

            Mr. Ziko stated we should be able to get things done on time.  We started this six months ago.

            Ms. Dillon stated we started this last January.

            Mr. Bissell asked how high is this generator when it is sitting on the pad?

            Mr. Dick responded it sits no more than 5’.

            Mr. Bissell asked is it possible that the backhoe or bucket can lift the generator and put it on there?

            Mr. Dick responded we may use the backhoe.  We have to put it on the trailer and drive it out there.  It is a heavy piece of equipment and we want to ensure it is safe.

            Ms. Dillon stated we still want to ensure we are in compliance.

            Mr. Dick stated I will contact DEP and if necessary, I will have the portable generator connected in the well to ensure it is physically there and installed if they suggest this.  This can be done immediately, and will help to satisfy them.

            Ms. Dillon asked what is the status of the emergency preparedness plan?

            Mr. Goscicki responded the emergency preparedness plan is complete.  In fact, we asked the DEP where to send it.  They told us they did not want it, but they need to know we have it.

            Mr. Ziko asked how can the plan be complete when the generator, which is an important part of this plan, is not in place?

            Mr. Goscicki responded the plan is the document which asks what you are going to do in the event of an emergency, and the plan is complete.  Implementation of the plan is another issue.  The DEP told us to put together an emergency response plan, which we have done.

            Mr. Ziko stated the first item on the plan probably says to start the emergency generator, but it is not in place.  Therefore, the plan is not good.

            Mr. Goscicki responded the plan is good.  We need to get the generator in place.

            Everglades Restoration

            Mr. Ziko stated everything is on hold until April when they find out where the money is going to come from and what they are actually doing on this side.  On the other side, which is Big Cypress, they are already starting. As soon as we get any further word on this, I will let you know.

            Mr. Gatti asked are they finished with the mobilization yard?  Have they spoken to you at all on this?

            Mr. Christopher Shucart responded the contractor who was there previously is complete, but there is another company that is going to be utilizing it.

            Port of the Islands Mosquito Control

            Mr. Goscicki stated I have not been able to get with Collier County due to my schedule over the last two months.  We will have to explore this again with Collier County to see what can be done.  If not, the options are to continue as is with on site programs or a contract with third parties.

            Mr. Ziko stated I want to know what ‘continue as is’ means from Mr. Dick.  Although we currently do not have a mosquito problem, it is coming up rather rapidly.  Do we have someone who can mix the chemicals?

            Mr. Dick responded at this moment, the only person who is licensed to mix the chemicals is Mr. Stephens.

            Mr. Ziko asked will he mix the chemicals?

            Mr. Dick responded he suggested he will not do this.

            Mr. Bissell stated when Mr. Stephens’ job description was made, this was omitted.  It was part of his job for the years he was employed here.  If the job description is amended to include this, then there will be no excuses, and it can then be considered insubordination.

            Mr. Gatti stated you cannot arbitrarily change a job description.

            Mr. Bissell stated this was done.  It was omitted and was part of the job description, but it was not in writing.

            Mr. Ziko asked if he is no longer going to spray for mosquitoes or mix the chemicals, has he taken a reduction in pay since he is not fulfilling what he was hired to do?

            Mr. Goscicki responded he has not.

            Mr. Ziko stated I suggest you discuss this with him and if he is not going to mix the chemicals, dock his pay for it.

            Mr. Dick stated we are working on this issue.  However, I have a proposal from an independent contractor who is wiling to do it, but it is very expensive.

            Ms. Dillon stated he is charging $650 per application.

            Mr. Dick stated this is a last resort.

            Ms. Dillon stated as I remember, you were also working on getting other people qualified to mix chemicals.

            Mr. Dick stated we are in the process of getting other people licensed, who are independent of this project.  Among those is myself and another manager in Golden Gate.  It is not difficult to get licensed, and we are in the process of studying.  There are two exams which have to be taken.

            Mr. Gatti asked what is Mr. Stephens’ issue?

            Mr. Dick responded he feels this is leverage he can use in order to be paid more.

            Mr. Goscicki stated I do not believe it is appropriate to discuss personnel issues in an open forum.  I should discuss this with the employee.  If we cannot reach a resolution, I will come back to each Board member individually.  However, I do not think it is in the best interest of the Board, the community or employee relations to discuss personnel issues in this forum.

            Mr. Gatti asked can we go into executive session on this?

            Ms. Dillon responded Mr. Cox said we cannot.

            Mr. Gatti asked can a personnel manager go into executive session?

            Mr. Cox responded no.  There are collective bargaining procedures which can be done in executive session.

            Mr. Lambert asked can you get back to us on this issue?

            Mr. Goscicki responded I planned to be here 45 minutes in advance if it was not for the 30 mile backup on I-75 to meet with the Board members one on one.  If we have time after the Board meeting, I would like to meet with the Board members one on one to briefly discuss this issue.

            Mr. Ziko stated we need to have something in place when the mosquito season begins.

            Mr. Goscicki stated absolutely.

            Mr. Dick stated we will have this.

            Proposal for Operation of Water & Wastewater Facilities

            Mr. Ziko asked has anything more be done on this?

            Mr. Cox responded yes.  Those proposals are due back to me approximately one week before the next meeting.  I will get those out to each of you via FedEx as soon as I receive them, and we will hopefully have them available for consideration before the next meeting.

            Mr. Ziko asked when you made out the RFQs, did you do it for the three categories of management, plant operations, or both?

            Mr. Cox responded yes.  It was set up this way.  You have management operations, general management and an alternative of plant operations, which can be awarded to a separate company.

            Mr. Gatti asked what is the next step?

            Mr. Cox responded the proposals will be here for your next meeting.

            Mr. Ziko asked how many replies were received?

            Mr. Cox responded three or four of the six I sent have called to let me know they are sending it back.

            Mr. Ziko asked will this be discussed at the next meeting?

            Ms. Dillon responded perhaps it will be discussed in March, depending on when the next meeting is.

            Mr. Cox stated the RFP indicates it will be considered on the fourth Friday in February.  Therefore, we will have to keep this meeting.

            Mr. Goscicki stated you can still change it.

            Mr. Lambert stated if we change the February meeting, I will be out of town.

            Mr. Ziko stated we can start the new schedule in March.

            Mr. Cox stated this may help depending on how the process proceeds in arranging the schedules for the management.

            Discrepancy between Gallons of Water Pumped and Gallons Billed

            Mr. Goscicki stated I went through this and worked up a summary which is not encouraging.  I looked at the last year of data for the revenue consumption report from our utility billing system and the water production numbers from Mr. Stephens at the water plant.  I included several numbers which represent the irrigation number of customers, billed potable water and the number of potable water customers.  The per unit consumption from my own analysis represents what we are billing, the number of customers and how much we are billing per customer.  This number is low when you look at a maximum of 5,000 gallons per month, and a minimum of less than 2,000 gallons per month, per unit as water consumption.  I have not gone back into the details to see what the average billing currently is, but I assume the average billing is probably significantly higher than this.  Typically, we use water for domestic purposes on the order of 3,000 to 5,000 gallons per month, and if we use it for irrigation, which some parts of the community still do, it can easily increase to 10,000 gallons per month.  When you compare the billed potable water consumption numbers against the line of water production, you come up with the unaccounted amount for water, which is right above the bold line.  When you look at this as a percentage of the water produced, you can see you are running on the order of 50% unaccounted for water, which poses a significant problem.  The dollars associated with this are not insignificant.  Assuming you can recover 75% of the unaccounted amount for water, you may realize approximately $30,000 in additional revenue.  This is an issue.  We want to check the main meter again and get it calibrated to ensure the numbers coming out of the water plant are correct, but my suspicion is we have a good bit unaccounted for water, either through leaks, unmetered connections or other sources which may be contributing to this.  This chart also did not put in a number for internal usage.  I want to get with Mr. Stephens to see if we can come up with an estimate for internal usage within the system for flushing hydrants and lines.  Typically, this is chemical feed within the water treatment plant.  The internal use is significant and can easily be 100,000 gallons per month when you look at line flushing, among other programs.  This will obviously have a significant impact on reducing this from the 50 range to the 40 range, which is still abnormal.  Ten to twenty percent is considered normal in the industry which has unaccounted for water in an older distribution system.  We have some work to do with regards to this issue.

            Mr. Gatti asked are we installing new meters?

            Mr. Benson responded yes.  We discussed at previous meetings identifying meters by age and having a program to replace those meters.

            Mr. Gatti asked in your experience, does this almost suggest a water main break somewhere?

            Mr. Benson responded there are a number of issues.  We compared the amount of water production to the customers and the per unit consumption which was reasonable.  Therefore, I believe the amount we are billing is low compared to what we are producing, and the amount we are producing compared to the number of customers is reasonable.  This probably involves the billing which relates to the meters, and also how the water being used for irrigation is accounted for.

            Mr. Ziko stated the second line shows we had 117 customers in January, which does not seem correct.

            Mr. Goscicki stated that line refers to irrigation customers.  If you go down three more lines, you will see the number of potable water customers which is 556 and is decreasing.

            Mr. Gatti asked do we meter our irrigation use?

            Mr. Benson responded yes.  The reason we have less irrigation meters is a condominium has one irrigation meter and each condo uses it as a potable water meter.

            Mr. Lambert asked where is the main meter located?

            Mr. Benson responded it is at the water plant.

            Mr. Lambert asked is it before it goes into the plant?

            Mr. Benson responded it is coming out of the plant.  The water which is being pumped from the plant toward the customers is where it is metered.

            Mr. Lambert asked is this related in any way to losses inside the plant?

            Mr. Benson responded it does not relate to this issue.  We keep track of losses differently, which is not a big number.

            Mr. Lambert asked is water we push out of the plant being metered?

            Mr. Benson responded yes.

            Mr. Gatti asked what action should we take since we are talking about a large number?

            Mr. Goscicki responded we need to look at a water loss analysis program.  Typically, when you are doing water loss analysis or an unaccounted for water analysis, certain issues at the plant need to be verified.  You must first verify the main meters.  The second verification needs to be a field check of accounts to ensure we are metering everything out there.  This involves a field effort.  This is not something which is done on a part-time basis.  You need to go through a systematic approach of identifying the existing units as well as the exact meter for each unit.  Over time, field staff who are doing meter readings know where the meters are which need to be read.  They then read the meter.  However, they are not checking to see if every house is accounted for with every meter out there.  A field check to confirm every building has a meter and the meter works is the first step.  If we do not identify any unbilled connections, the next step is to look at the consumption by service areas and breakdowns within the service areas to see if there is an inordinate consumption pattern indicating a line leak.  Part of this analysis involves looking at the age of the meters and determining if we have old meters in particular areas which are inoperable.

            Mr. Gatti asked will we be looking at extra costs since this is way outside of yours and Mr. Benson’s scope of work?

            Mr. Goscicki responded I suggest we put together a proposal to do this.  This is something we do on a routine basis as a service to customers around the country to both our local offices and our national resources.  We have a separate company which handles pipeline and water loss analyses.  Therefore, we rely on their expertise to help us on this.

            Mr. Gatti asked in terms of dollars, what kind of loss are we talking about?

            Mr. Goscicki responded the loss is approximately $30,000 per year.  Obviously, you do not want to spend $100,000 to recover $30,000.  If we can do something which will cost $20,000, you will cover it in less than one year.  We want to put together a sequential proposal, which looks at ways to take this off in incremental chunks to see what can be uncovered.  The first thing is the audit of what is in the field on a house by house and unit by unit basis to ensure we are metering everything in the ground.

            Ms. Dillon asked can this be done by our plant personnel?

            Mr. Goscicki responded it has not happened, and we had significant staff turnover.  You have one licensed operator who is tied to the facility, and the remaining people get trained and move on.  I am not confident you have trained people to handle this.

            Mr. Lambert asked will you put a dollar amount on each step of this process in your proposal?

            Mr. Goscicki responded yes.  We break the proposal down into steps so we know what it costs, what the results and benefits are before we move on to the next step.

            Mr. Lambert stated it is going to take some period of time to get through this.

            Mr. Goscicki stated that is correct and it gets exponentially more expensive.  The first steps are similar, as you start getting every metered hooked up, it tells if you have got either illegal connections you are not aware of or you have significant leakage.  As a result, you must test the pipeline with certain equipment.  You shut off certain areas, notify the people and listen to see if there is actually water flow when there should not be.  There are techniques for doing this which we can bring to the table.  Obviously, it becomes more intense if you have to bring in more specialized skills and will be a last resort.

            Mr. Gatti stated you are talking about a large amount of money before this is done.

            Mr. Ziko stated we are losing half of our capacity, and running our plant at double time to meet half the capacity.

            Mr. Gatti asked how old is the old section of the pipe system?

            Mr. Benson responded the oldest section is more than 35 to 40 years old and is starting to be replaced this year.  It was asbestos cement pipe which was very brittle, and we started replacing it from the plant all the way down to the north end of Orchid Cove.  Anything which is off the line we are hooking up to ensure it is on a meter.  The line which comes off is on a meter and a couple of months ago we brought a change order to put a pipe in one area to basically ensure we were tying in two meters at the North Hotel.  Every time we do a project we ensure everything is tied in properly to a meter.  We also started to look at the age of meters without spending too much effort.  I asked the salesman for your meters to send me a list of how many meters were sold as far back as the records go.  They had records from five years back.  We needed to know how many meters are less than five years old compared to how many we have.  Mr. Goscicki, Mr. Stephens, Mr. Dick and I are going to get together to come up with a list of meters which need to be replaced this year.

            Mr. Ziko stated a meter will not have a 50% error in it.

            Mr. Benson stated when they get over 10 years old, meters can be off by 30 to 40%.  Meters always read low.

            Mr. Gatti stated most cities have an ongoing meter testing program which is part of their operation because contrary to what you just said we can be losing a lot through the meters.

            Mr. Benson stated purchase of a new meter is less than $70 per meter.  Therefore, it is cheaper to buy a new meter than to test an old meter.

            Mr. Lambert asked when you are finished drawing this information together will we have a plan?

            Mr. Benson responded this is our intention.

            Mr. Lambert asked will it be something we can use in the future which will have data on in order to proceed forward?

            Mr. Benson responded yes and the new meters come with new features.  Collier County and the larger utilities have electronic signals for various types of remote reading.  If you are going to replace meters, you need to decide if you want to buy a meter which has a manual or digital read which costs more.

            Mr. Goscicki stated we will look into this and I apologize for not getting back to you.

            Mr. Benson stated it is more expensive and can be done in steps, but if you are going to purchase 100 new meters per year to replace old meters, every time you put in a new meter you may want to think about putting in a more expensive meter which you can do more with in the future.

            Mr. Dick asked how much more are we looking at?

            Mr. Ziko asked are we looking at remote reading?

            Mr. Benson responded I am not necessarily going to propose this, but we want to tell you the cost and you can make the decision.

            Ms. Dillon asked do we have a good inventory list of the meters and their serial numbers?

            Mr. Benson responded I am not sure Mr. Stephens necessarily keeps this record detail.

            Mr. Bissell stated we should.

            Mr. Benson stated he purchases the meters as he needs them and perhaps buys 40 at a time.  He then supplies the builder the meters and they get installed.

            Mr. Goscicki stated if that is not on the billing system as we move forward, we will make it part of the billing system.

            Mr. Lambert stated without the billing system the work you are doing is a waste of time.

            Mr. Benson stated I am not sure we had records in the past.

            Mr. Lambert stated we should develop a system and keep it as we go forward.

            Mr. Goscicki stated this is a field within the billing system and we must ensure we have communications from Mr. Stephens as these are being installed.  He should record the information and give it to our billing people.

            Mr. Benson stated I gave the contractor on Newport Cay and Newport Drive approximately 80 meters which we own and he is going to install.  We are also getting ready to order another batch of meters to fill our inventory.

            Ms. Dillon asked do we have a listing of those meters and where they were installed?

            Mr. Benson responded I am not sure.  This is something we have to ask Mr. Stephens.

            Mr. Stephens stated we have those records.  Each meter has a number on top, which is recorded with each household.

            Mr. Benson asked do we have this for every meter or just for the newer ones?

            Mr. Stephens responded we have every meter which is out there for the last 10 years.

            Ms. Dillon asked is it possible the source of our big discrepancy in the water production figure involves the data or meters in the plant telling us how much we pumped?

            Mr. Benson responded Mr. Stephens has those meters calibrated as required by the DEP.  When we looked at the number of customers actively using water versus the amount of water the plant is producing, the amount per customer per home is reasonable.  The irrigation water consumption is metered at the irrigation pump station and it is calibrated.  We have calibration records and the number seems high, but this is the number we are using and we need to determine where that water goes.  We also need to study individual water bills in order to determine which meters need to be replaced.

            Ms. Dillon stated no one is going to tell you their water bill is too low.

 

On MOTION by Mr. Lambert seconded by Ms. Dillon with all in favor Severn Trent Services was authorized to make a proposal to create a water loss and pipeline analysis program to determine the need for new meters.

 

            Mr. Ziko stated at the last meeting we agreed to send a certified letter to the residents at Newport Drive with regards to the 80 meters there.  Has this been done?

            Mr. Goscicki responded the letter is prepared.  However, I had a difficult time downloading those addresses from our billing system.  Therefore, we plan to hand deliver them as door hangers rather than send certified letters.

            Mr. Ziko stated you can log onto the Collier County website which has a list of everyone on that street if you want to send them certified.

            Mr. Goscicki stated I wanted to go out with Mr. Dick today and verify which homes are there, and then we can hand deliver or mail them.  However, I did not want to guess off of our billing system which house got connected and which one did not based on the engineering drawings.

            Ms. Dillon stated last month the reason we discussed a certified letter was to ensure the residents got the letter telling them they are going to have to take a look at their water system.

            Mr. Ziko stated we have been asking you to put a notation on the water bill about boiling your water in the event of a loss of pressure for three months, which you promised to do and nothing has been done.  This should not be difficult to do.  When will this be accomplished? 

            Mr. Goscicki responded we can only put a brief message on the water bill since it is a postcard.

            Mr. Ziko stated this is all we are asking for to cover us since we do not have a notification system and the plant lost pressure a number of times over the last six months.  We must notify everyone to boil their water.

            Mr. Goscicki stated this is not sufficient notification.  In reality, it is an operational requirement for us to notify the customers if we drop pressure.

            Mr. Gatti asked what message do you want to put on the bill?

            Mr. Goscicki responded “Dear Sir or Madam:  As part of the Port of the Islands Community Improvement District’s ongoing capital improvements, a new irrigation/fire flow line was recently installed in the right-of-way adjacent to your property.  This irrigation line has been connected to your existing irrigation system, eliminating the need for the use of potable water for irrigation purposes.  The water used for this irrigation is a combination of canal water and treated wastewater from the District’s water reclamation facility.  Although the wastewater is treated to high standards to qualify for irrigation use in a residential setting, (underlined and in bold) this water is not potable and is not suitable for domestic consumption.  It is imperative that as a user of this non-potable irrigation system, you understand, and again, (underlined and in bold) this water is not to be connected in any way to your current domestic water supply or to any other outlet or exterior faucet which could be used for domestic consumption.  Your cooperation in this regard is important to your health and that of the community.

            Mr. Ziko stated this sounds good to me.

            Mr. Goscicki stated we will send this out.

            Grant From South Florida Water Management District

            Mr. Benson stated we did not get a grant.  Most of the money was given to large projects.  Collier County requested almost $60 million in grant money and they were given less than $10 million.  The types of projects were aqua restorage recovery wells, which is brackish water well fields and RO plants.  These projects were in the area of the lower west coast water supply plant, and are in the area which they are trying to fund.  The reason I mentioned these types of projects is our long-term CIP indicates at some point we may have to do a project involving brackish water, well field or RO for our water plant because of pressure from SFWMD.  Perhaps we may be able to get a grant since everyone else is getting grants for these types of projects.

            Install Missing Reflectors for Fire Hydrant Location

            Mr. Ziko stated this was done and it was a good job.

            Paint Fire Hydrants

            Mr. Dick stated we have the materials but have not started to paint.

            Mr. Bissell stated one hydrant was spray painted white.

            Mr. Dick stated this is not the appropriate color.

            Mr. Ziko stated please give us an update on this next month as to what needs to be done.

            Mr. Goscicki stated Mr. Stephens is fully staffed.  We now have two full-time employees and two part-time employees on the payroll in Operations.  Is this correct?

            Mr. Stephens responded not to my knowledge.

            Mr. Goscicki stated we are paying four people.

            Mr. Stephens stated one person was hired to read the water meters which she is not doing this month and the other person is on weekend duty along with myself.

            Mr. Goscicki stated perhaps we should try to get the part-time meter reader to do some painting for us.

            Mr. Stephens stated Natalee will not do this.  She has another full-time job.

            Truck Decals

            Mr. Goscicki stated we used the same sign company.

            Mr. Dick stated they are complete.

            Mr. Ziko asked are they on the truck?

            Mr. Dick stated the sign company wanted me to bring the trucks to Naples, but I told him I will install the signs.  I am picking them up Monday and we will install them ourselves.

            Mr. Ziko asked are these permanent or magnetic signs?

            Mr. Dick responded they are non-magnetic.  Once they are on, they are very difficult to get off.

            Mr. Ziko stated please give us an update next month.

            Portable Defibrillator

            Ms. Dillon stated I finally reached Mr. Burgeson, and he told me he will not do this and hung up.  I will note people in the RV park on the other side had a fund raiser and bought one, which they installed in the office.  However, the price has come down significantly.  They are less than $1,200 now and they were $3,000 when we started.

            Mr. Gatti asked is there still an issue of where to put it?

            Ms. Dillon responded yes, but we are hoping the fire station will take care of this.

            Mr. Bissell asked does the fire station have one?

            Ms. Dillon responded it will have one.

            Auditor Fees

            Mr. Goscicki stated I understand this was discussed at the last two meetings.  I read through the minutes and notice you have a proposal from Dufresne & Associates again.

            Mr. Ziko stated I thought we had a signed contract with them which we approved at the December 2004 meeting.  We approved for you to go out to Dufresne as our auditor.  Did you ever do this?

            Mr. Goscicki responded yes, but it was for the prior fiscal year and this is for the next fiscal year.  If you recall we were late in getting Dufresne on board for the 2004 audit.

            Mr. Ziko asked do we have a signed contract?

            Mr. Goscicki responded we have a signed contract for the work completed on the 2004 audited financials.  This is for the 2005 financial audit, which is on schedule.  At this point we must get the auditor on board, and get this audit done well before the end of this fiscal year.  The price increased over the last one.  It is approximately $14,000 or more, and this increase has been an issue for all of our clients.  It is a function of the new regulations under the GASB 34.

            Mr. Ziko stated we did GASB 34 on the previous one.

            Mr. Goscicki stated you are correct and I will go through it.  GASB 34 will occur for the next several years.  There is an increase in requirements which GASB 34 has within those statutes.  Last year it was a matter of getting the format in compliance with GASB 34.  This year GASB 34 added another set of requirements in terms of comparative analysis.  In last year’s audit, they looked at your previous year’s numbers and everything worked out fine.  We did not see any discrepancies or problems in the financial structure.  Next year they are required to do a comparative analysis of your financial position this year compared to your financial position in the previous year.  The year after this, I believe there are additional requirements.  The Federal Government authorized a progressive series of requirements for governmental entities, most of which started last year.  There are many more requirements in terms of what the auditors are being required to do as part of GASB 34.  We have seen an average 20% increase in audit fees for this additional work, which is not unique to POI, but has been the case across the board.  It is turning into a significant work effort on the part of the auditors to do this work.  A couple of years back they would do a few spot analyses, review the records, clean it up and move on.  The auditors are in our office literally 10 months out of the year continuously working.

            Mr. Lambert stated we have not seen the product from the 2004 audit.

            Mr. Goscicki stated this was an oversight on our part.  This audit is complete and should have been presented to the Board in November.  However, I will present it at the next meeting.

            Mr. Bissell asked can we assume that in the 2004 audit we paid them $4,750 per fund and for 2005 we are paying $5,500 per fund?

            Mr. Goscicki responded yes.

            Mr. Bissell stated we did the first one for one year and we wanted to see if they did a good job.

            Mr. Goscicki stated the law on how an auditor is selected also changed this year.  There are new requirements and since you used them last year you may continue to use them again this year, but if you decide to select a new auditor, you literally have to go through a formal selection process similar to what you recently went through for the O&M contract.  We have to put out a proposal of which there is a certain structure.  We have to establish an audit selection committee, which can be the Board or you can select your committee.  They will have to meet through the Sunshine Law, follow a structured evaluation process and bring a recommendation to the Board.  In past years, we were able to do this analysis for you, interview four or five firms and bring you our recommendation.  We cannot do this anymore.  It has to go through the structured process.

            Mr. Lambert stated when we selected this firm we went through a similar process.

            Mr. Goscicki stated we put out an advertisement and received multiple proposals.  This Board evaluated those proposals based on cost and qualifications.  This follows the same process, but it is more structured.

            Mr. Lambert asked are they willing to do 2005 through 2007 at $5,500 per fund according to their fee schedule?  Based on the fact that everything is going to increase, have they taken this into account?

            Mr. Goscicki responded no.  If you read the last line, “fees are subject to adjustment 2006/2007 as a result of increasing costs”.

            Mr. Ziko asked how much of an overage did we incur on the 2004 audit?  In other words how much did we actually pay for that audit?

            Mr. Goscicki responded I do not believe we paid them anything additional.  This was a major issue in the previous year when I first started and we refused to pay the auditor additional fees.  Although I am not aware of paying them any additional fees, I can verify it with our accounting section.

            Mr. Ziko stated additional services were charged at the rate of $95 per hour and they charged us a blanket rate of $4,700.  How many additional hours did they charge?

            Mr. Goscicki responded we solicited a lump sum proposal.  The Board must authorize additional audit work.  Otherwise, the work should be completed within the fee.

            Ms. Dillon stated we have not paid for the 2004 audit.

            Mr. Gatti stated if they ask for more money we have to approve it in advance.

 

FIFTH ORDER OF BUSINESS                               Consideration of Engagement letter with Dufresne & Associates, CPA, PA to Perform the Audit for Fiscal Years 2005, 2006 and 2007

            Mr. Goscicki stated I would like to get a motion from the Board to approve the selection of Dufresne & Associates for the 2005 Audit.

 

On MOTION by Mr. Lambert seconded by Mr. Bissell with all in favor the Engagement letter with Dufresne & Associates, CPA, PA to perform Auditing Services for Fiscal Years 2005, 2006 and 2007 was approved.

 

            Mr. Gatti asked can we take this item off the list of open items?

            Mr. Ziko responded we still need to look at the audit for 2004.

 

FOURTH ORDER OF BUSINESS                          Discussion of Open items (Continued)

            Research Capacity of Facilities with Possibility of Adding Additional ERCs

            Mr. Ziko stated this item will remain on hold, pending resolution of the problems.  Our plant is producing water, but no one knows where it is going.

            Mr. Benson stated the analysis I prepared was necessary for our SWFWMD permit applications both for our drinking water and irrigation.  This information was used and it is valuable information.

            Mr. Gatti asked does one have something to do with the other?  When you do an analysis of whether or not we have enough to produce more ERCs, is this based on the production even though it is inaccurate?

            Mr. Benson responded my analysis is based only on production, as required.

            Mr. Gatti stated your point is valid.

            Mr. Ziko stated if we are producing 100,000 gallons, and 50,000 gallons is missing, this is a large amount of missing ERCs and our production is half of what we believe it to be.

            Mr. Benson stated our production is accurate, but we are billing less than what we are producing.

            Mr. Lambert asked did your study have to do with production, but not billing?

            Mr. Benson responded we have to use what is going through the calibrated meters and we have to use the production.

            Mr. Gatti asked based on this, does one have anything to do with the other?

            Mr. Benson responded billing has nothing to do with the permit process.  However, SWFWMD can ask us for information about unaccounted for water.  Approximately one year ago, I said we need to be prepared to answer this question, because if you have a high amount of unaccounted for water due to water going in the ground, they take this as being the worst possible situation.  However, they are not as concerned with billing issues, but they have asked larger utilities to incorporate a rate structure which penalizes people who use large amounts of water in order to urge conservation.  They have not asked us for this yet, but it is something I would like to discuss with the Board in the near future for irrigation.

            Mr. Gatti stated based on the fact we already have advance knowledge of what is going to happen, it is possible to consider adding additional ERCs and potentially make them available.

            Mr. Lambert asked did Mr. Cox prepare something for this meeting which was going to explain this process?

            Mr. Gatti responded yes.

            Mr. Lambert stated we should defer this item until we go through the remainder of our agenda.

            Mr. Bissell stated there were comments made at a Board meeting several months ago with regards to a question from DEP for the amount of water we were using.  Was this irrigation or potable water?

            Mr. Benson responded it was irrigation water which refers to SWFWMD and this has not been resolved.

            Mr. Bissell stated if we have to irrigate Orchid Cove we will be using additional water.

            Mr. Benson stated the application we have for SWFWMD for irrigation includes all development of this community at buildout.  We are telling them how much water we need at buildout and how we justify it, and we say here is what you used in the past for the last 10 years by month based on the number of acres of property over the last couple of years which are developed and using irrigation.  We compared the irrigable acres to the amount of water each month, as well as a detailed analysis and the irrigation rate was 1.2” per week, which is average.  SWFWMD believes this is too high, and they would like you to use less than an inch.  We also put a factor on for dry weather conditions, and they have us factor in for a multiplier for dry conditions versus average, and our rate is high.  They told us they are not approving this.  Therefore, as we finalize this permit we must cut the number back to something reasonable which they will accept and we must deal with implementing conservation measures.  The county already has an ordinance which most people are not complying with as far as what days they can irrigate.  I am not sure we can do something about this, but we can educate.  Another thing we can do with water conservation rates is to make up a number that the first 10,000 gallons they use for irrigation in a month is at $2 per one thousand gallons.  If they use another 10,000 they pay $4 per gallon and if they use more, the rate they pay per gallon increases as they use more to try to make people use less, and it was done in most places.

THIRD ORDER OF BUSINESS                             Public Hearing to Adopt a Resolution Setting Rules for Utility Capacity

Mr. Cox stated this is the culmination of what we have been discussing for the past couple of month with regards to how we determine whether or not a property has sufficient ERCs for proposed development.  When property is going through the development approval process in Collier County, we have to provide a letter of water and sewer concurrency which says we have sufficient capacity to serve the property.  The way Mr. Benson has done this in the past is to look at it based on our original allocations for single-family, multi-family, hotel rooms, restaurants, dormitories and the RV sites.  There is some non-commercial property here having potential use categories which are not traditional to us.  This provides the methodology Mr. Benson will use to determine whether or not there are sufficient ERCs to serve those proposed uses.

Ms. Dillon asked is this based on Collier County’s and the State’s policy where we rolled it over and use the same methodology?

            Mr. Cox responded we are keeping our original uses for single-family, multi-family, recreational vehicles, hotel rooms, restaurants, bar and lounge and the marina slips the same.  Any use other than those specified on this list will be evaluated under the process established by the Board.

            Ms. Dillon stated we were going to adopt this last month, but we had to have a month’s notice.

            Mr. Cox stated you are correct.

            Mr. Bissell stated I move we adopt this since we had plenty of time to read it.

            Mr. Goscicki stated we advertised this as a public hearing.  Therefore, we must open a public hearing on this issue, take comments from the public, close the public hearing and take the necessary action

            Mr. Gatti asked what does this do for us?

            Mr. Cox responded if someone came in at a commercial site and wanted to put in a convenience store with a fast food restaurant, we do not have an equivalency established for this.

            Mr. Goscicki stated we are going to use what is in the State’s statutes as an accepted table.

            Mr. Gatti stated this in essence has nothing to do with the 1,032 ERCs we already have.  This is simply a methodology to analyze the amount of ERCs someone needs.

            Mr. Goscicki stated if a parcel of property has five ERCs committed to it and they want to build a fast food establishment, Mr. Benson needs a methodology to determine how many ERCs this will require and if the property has sufficient capacity.

            Mr. Gatti asked is the 1,032 units we have taken into consideration in the RV Park and the multi-family?  In other words, do we have 1,032 ERCs and then the trailer park and condominiums increase the usage?

            Mr. Benson responded yes.  You actually billed out considerably more than 1,032 dwelling units because of the factors.  For example, an RV is four-tenths of an ERC and a multi-family is eight-tenths.  You can build more of those units than 1,032, but it is equal to 1,032 single-family dwellings.

            Mr. Gatti stated in theory we can have as many as 1,200 units or more.

            Mr. Goscicki stated the ERC definition is equivalent residential connections.

            Mr. Gatti stated I did not have a clear definition of what the 1,032 ERCs provided.

            The Public Hearing was opened.

            Mr. Beck asked does the ERC represent water usage?

            Mr. Goscicki responded that is correct.

            Mr. Beck asked if you are losing 50% of your water, how can you consider ERC use until you establish where this water is and how much is really being used?

            Mr. Ziko stated this does not relate to what we are discussing.  This relates to if someone wants to put a gas station out here, they own the property.

            Mr. Gatti stated this segment establishes how much use is required or how the methodology is established.

            Mr. Beck asked how do you know what you have in usage?

            Mr. Goscicki responded I will try to clarify this for you.  You raise a legitimate concern that if you do not know what your usage is how do you define an ERC?  The reality is an ERC or Equivalent Resident Connection was defined in the development of this community based upon good engineering practice and allocated to the facilities.  I believe the numbers are 250 gallons per unit per day for water and some other number for sewer.  A water and wastewater facility was built based upon those numbers.  The ERC is defined based on how many gallons per day per unit.  The purpose of this public hearing is to determine how many of those units do these different kinds of other establishments equate to?  For example, if you build a 7-Eleven with a gas station in front, it must be determined if it equates to four or five single-family homes.  The issue of accounting for how much water those single-family homes are actually using right now is an entirely different issue this Board needs to address.

            Mr. Cox stated a demand analysis methodology should be done to analyze the various demands.

            Ms. Marchand asked are we only discussing the commercial ERCs?

            Mr. Cox responded this refers to any use other than the ones we traditionally had in our table.

            Ms. Marchand asked what was the methodology used to assign those initial 1,032 ERCs?

            Mr. Cox responded the potential for demand determined this.

            Ms. Marchand asked why can’t we continue with the original methodology?  Why does there have to be a new methodology?

            Mr. Cox responded because there are uses which are not defined in our table.  We have a process of single-families in one unit and multi-families in another unit.  We need to determine units for a gas station.  We need this methodology to determine demand of a proposed use.  It has nothing to do with the allocation of ERCs between properties.

            M