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, October 12, 2007 at 10:00 a.m. in the Egret Room, 25000 Tamiami Trail, Naples, Florida.

 

 

            Present and constituting a quorum were:

 

            Ted Bissell                                                        Chairman

            Dale Lambert                                                   Vice Chairman

            Norine Dillon                                                    Secretary

            Richard Ziko                                                    Assistant Secretary

 

            Also present were:

 

            Calvin Teague                                                   District Manager

            Dan Cox                                                          Attorney

            Ron Benson                                                      Engineer

            Bob Dick                                                         Field Manager

            Robert Edge                                                     Field Operator

            Tom Mack                                                       Staff

            Felice Clai                                                        Resident

            Mike Motwani                                                  Resident

            Jim O’Connell                                                  Resident

            Duane Otto                                                      Resident

            Tom Weis                                                        Resident

 

 

FIRST ORDER OF BUSINESS                               Roll Call

            Mr. Bissell called the meeting to order and Mr. Teague called the roll.

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the September 14, 2007 Meeting

            Mr. Bissell stated each Board member received a copy of the minutes of the September 14, 2007 meeting and requested any additions, corrections or deletions.

            Ms. Dillon stated on Page 7 in the fourth paragraph under Item B, in the should be added after controlled.

            Mr. Lambert stated on Page 3 Mr. Goscicki mentioned he was going to give us some detail with regards to the amounts written off on the uncollectible debt.

            Mr. Teague stated I have this information with me.

            Mr. Lambert stated on Page 9 there was a discussion with regards to some plumbing work which was done by an outside plumber for the hotel as opposed to us.  Please ensure this is taken care of.  On Page 35 in the tenth paragraph, Goscicki should replace Lambert.  What is the status of these signs?

            Mr. Cox responded Mr. Goscicki sent this to me and I forwarded it to Mr. Teague to ensure it is given to the sign company for handling.

            Mr. Teague stated it appears their sign is getting approved and ours is not.

            Mr. Lambert stated there was a discussion on Page 37 with regards to money Florida State Underground was overpaid, and Mr. Goscicki was going to send a letter of demand.

            Mr. Teague stated we have been working on this for a couple of months and they have not been returning our calls.  Mr. Benson’s office has also been helping us with this issue.

            Mr. Cox asked have you written the letter?

            Mr. Teague responded we may be at this point, although he has not returned our calls.

            Mr. Benson stated we had a phone message in our office approximately four weeks ago which I passed on to you for someone to call back.  However, I believe the demand letter from your attorney should probably be done.

            Ms. Dillon stated Mr. Goscicki sent a formal demand letter.

            Mr. Benson stated it was probably just sent from the District office, but I believe it should come from District Counsel.

            Mr. Teague stated I believe the letter went out under Mr. Goscicki’s signature.

            Mr. Cox stated this amount is small enough to be brought to Small Claims Court if they do not respond to the demand letter from me.

            Ms. Dillon asked what is this going to cost?

            Mr. Cox responded it will cost approximately $2,000.  However, if we have the background documentation to show them in the demand letter indicating all of the facts, I believe they will respond.

            Mr. Bissell asked can we file a claim against the homeowners owing us the money which has not been paid and include it if you take this to Small Claims Court?

            Mr. Cox responded this is considered a different cause of action.

            Mr. Bissell asked can it be taken care of at the same time?

            Mr. Cox responded I can probably take care of both issues at the same time.  What homeowners are you referring to?

            Mr. Teague responded there are basically two POI developments owing $131,000.

            Mr. Bissell asked what is the location of the homeowners in which we paid the bill for electrical which we should not have paid?

            Mr. Edge responded you are referring to the homeowners on Evening Star Cay.

 

FIFTH ORDER OF BUSINESS                               Old Business

            C.        Review of Bad Debt Issues

            Mr. Teague stated you approved a resolution to write off $131,000 at your last meeting, most of which is between two bad debts, Northport Development for $93,000 and Olde Florida Land Trust for $37,000.

            Mr. Cox stated we sent minimum monthly bills to these property owners before we went to standby fees as a means of funding your Florida sewer operations from the special assessment, which was never paid.  We settled with those two properties in order to avoid foreclosures.

            Mr. Lambert asked is this part of the settlement?

            Mr. Cox responded I am not certain whether or not it was intended to be part of the settlement.

            Mr. Lambert stated it is important we have the documentation in the event someone reads the minutes and asks for it.

            Mr. Teague stated there was $806 in various small claims which were not included in those two, but we wrote all of those off in order to bring the uncollectible account receivable down to zero.

            Mr. Lambert stated those are residents who moved without paying their bills.

            Mr. Teague stated that is correct.

            Ms. Dillon stated according to the minutes, Mr. Goscicki stated he was going to outline details of this in a follow-up memorandum.

            Mr. Cox stated perhaps you can write this memorandum from a part of the minutes which you just read.

            Mr. Teague stated we will include the amounts from the e-mail sent by Ms. Randel as well as Mr. Cox’s explanation in the minutes.

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the September 14, 2007 Meeting (Continued)

            There being no further comments or questions,

 

On MOTION by Ms. Dillon seconded by Mr. Lambert with all in favor, the minutes of the September 14, 2007 meeting were approved as amended.

 

 

THIRD ORDER OF BUSINESS                             Audience Comments

            Mr. Mack stated I believe the Board should look at the special assessment again.  We have approximately $1.5 million in the bank and I believe we should consider either reducing or postponing next years’ special assessment.

            Mr. Lambert stated part of the reason for this is the fact we have not been able to get some projects to the point where we are paying out on them.

            Mr. Mack stated I believe all of those projects were accounted for in the five-year plan.

            Mr. Ziko stated they have not been paid for.  There is work taking place which we owe $400,000 on.

            Mr. Benson stated you have a contract for $998,000; you paid less than $50,000; and you are probably going to be billed at 100% by January.

            Mr. Ziko stated the $1.5 million will be reduced significantly.

            Ms. Dillon stated we also have the water tank project in the amount of $400,000 included in this budget.

            Mr. Weiss asked are you able to monitor our potable water supply and know when to raise a red flag when our wells are not functioning properly given the drought conditions?  Do you know where we stand?

            Mr. Edge responded we know exactly how much water is used on a monthly basis and we are well within our allocated amount according to county standards.

            Mr. Weiss asked does the lack of rainfall reduce our supply?

            Mr. Edge responded certainly, but we are allowed to store one month out of the canal before using up what is currently in the main.

            Mr. Benson stated I believe you are allowed to take more than 10 million per month from the potable wells and we are nowhere near this level.

            Mr. Edge stated we are using approximately 40,000 to 50,000 gallons per day.

            Mr. Cox stated we had a water study done approximately one year ago.

            Mr. Bissell stated we should check the salinity of the water over here, but I am not certain if this was done daily or weekly.  Do we still do this?

            Mr. Edge responded we do a chloride test every week at the pump and I indicate the results in my monthly report.  If we get to a level where it is dangerous to water plants, we can treat the water.

            Mr. Lambert asked what causes the problems you have with some plants?

            Mr. Edge responded if there are more than 500 users, you start to experience problems and the chloride can increase over 1,000.  Orchid Cove had a reading of more than 1,000, which is why they had a problem.  We instituted a weekly chloride test and included them on this report in order for all of you to see the trend.

            Ms. Dillon stated if you are referring to 500 milligrams per liter, we are nowhere near this level.

            Mr. Edge stated the fact that the water is transferred back into the canal on this side is positive.  The canal decreasing to a certain level and the high tide pushing it back over creates this problem.  However, we have not had this problem in a while, but this is the reason our chloride level decreased to 15.

            Mr. Dick stated we need to determine how it got to this level, but we cannot shut the pumps off since it can create a fire hazard.

            Mr. Edge stated I thought about this and perhaps we can put a note on the water bill stating chloride levels are high in the canal once we start to get to this level.

            Mr. Ziko stated perhaps you should look at the weir.

            Mr. Edge stated I noticed the water going back over the weir approximately one month ago, and I called the people at Orchid Cove and warned them to be careful with how much water they used.

            Mr. Dick stated we need to be careful they do not rely on us as a warning source.

            Mr. Ziko stated we cannot tell them when to boil water, let alone check the salinity.

            Mr. Dick stated we are going to test it on a weekly basis and supply the results to the Board.

            Ms. Dillon stated the blending process will be minimized once we get the water reuse on line.

            Mr. Mack asked was there any resolution with regards to the Newport Drive entry sign on the monument for Retreat Del Sol at Port of the Islands?

            Ms. Dillon responded I believe we are going to discuss this later in the meeting.

            Mr. Teague stated it is a commercial zone and we made the signage non-commercial, which the county prohibited.  I am scheduled to meet with them either Monday afternoon or Friday to discuss this.

            Mr. Bissell asked was the sign residential prior to them putting up this sign on our property without our permission?

            Mr. Cox responded we need to get some pictures of the prior signs, since I am not certain.

            Ms. Dillon stated they changed their sign permitting process subsequent to this.

            Mr. Ziko asked does someone here have any pictures?

            Ms. Dillon responded I believe there is a picture on the front cover of the Severn Trent contract proposal document.

            Mr. Ziko stated perhaps there are audience members who have pictures.

            Ms. Dillon stated their new sign says, Resort and Waterfront Community, and they do not believe resort is commercial.

            Mr. Lambert stated this has become a joke with Collier County.  I am not certain whether we all have to send letters to Mr. Colletta or if Mr. Cox should send a letter to their Code Enforcement Division.  We are almost back to where we were five years ago when this all started.

            Mr. Bissell stated perhaps we should invite him to a future meeting in which the audience and the Board can approach him on this issue.

            Ms. Dillon asked was he planning to attend the January meeting?

            Mr. Mack responded every second Friday he attends a special meeting which is booked through March.  He may be able to attend if the meeting is held at night or on a different day.

            Mr. Cox stated the sign permit or SDP application is reviewed at the staff level, and if you are denied they must give you a reason for the denial in writing, after which you have an appeal process which takes you before the County Commissioners Board of Appeals.  Since there is a timeframe for filing this, I am going to make a copy of the application and the letter of denial and see what I can do.

            Mr. Lambert stated we should have been grandfathered in considering the length of time those signs have been up there.

            Ms. Dillon stated there was a similar issue with the monuments on Cays Drive.

            Mr. Lambert stated I am not certain whether or not they approved Mr. Motwani’s sign.

            Mr. Teague stated I gave them Monday afternoon or Friday as options to meet and we will try to get approval.  If we are denied after this meeting, we will give everything to Mr. Cox.

            Mr. Cox stated they need to give you a written reason for denial.

 

FIFTH ORDER OF BUSINESS                               Old Business (Continued)

            C.        Review of Bad Debt Issues (Continued)

            Mr. Teague stated I will be following up on the debt payoff data I provided to you last time, and I will e-mail all of the information to you as soon as I receive it.  I will also e-mail you a copy of the revisions in the format of the CIP and cash flow projections.

            B.        Water Billing Questions and Turn On/Off Policy

            Ms. Dillon asked are you going to include some verbiage with regards to minimum payments on the water bill?

            Mr. Teague responded we can put anything on there you want.  However, I thought this issue had to do with the turn on/turn off policy.

            Mr. Ziko asked is the water billing and collection done in-house?

            Mr. Teague responded it is done through Mr. Dick’s division.

            Mr. Ziko stated I have an automatic debit on my water bill and last month’s’ bill was collected five days early and this month’s bill was collected 10 days late.  There does not appear to be any continuity.

            Mr. Teague asked is it on a 30-day cycle?

            Ms. Dillon responded it should be consistent.

            Mr. Ziko stated you should indicate the date for which the bill will be debited for.

            Mr. Dick stated I will talk to the billing department and see what can be done since I thought it was more consistent.  We have a billing cycle, but this is just one project among many and they all go out at the same time.

            Mr. Ziko stated I am not concerned with the date the bill goes out, but when you debit it from my account.  It is supposed to be debited on the 5th, but it was debited later on.

            Mr. Dick stated it should be debited when the bill is sent out or on the due date, not before or not 10 days later.

            Mr. Teague stated we can put anything on the bill within reason as long as it is not a dissertation.

            Ms. Dillon stated a two-line statement is sufficient.

            Mr. Teague stated we decided to bill in 1,000 gallon increments two meetings ago, which did not get done right away, but is being done now.  When I sent my meeting summary, I omitted the water department from my distribution list, for which I take responsibility.  I noticed a discrepancy in the minutes.  My notes from the August meeting reflected we were to send a bill with no return envelope if you did not owe anything.  The minutes state we are not to send a bill at all if nothing is owed.  Basically, the bill was still going to be sent out indicating you do not owe anything at this time because your water consumption was low.

            Mr. Lambert asked will I get billed for 2,000 gallons if I use 1,005 gallons of water?

            Mr. Teague responded you will get billed for 1,005 gallons.

            Mr. Dick stated if you use 1,999 gallons or it clicks over to 2,000, you will only get billed for one unit.

            Mr. Lambert stated it does not make a difference in the long run.

 

FOURTH ORDER OF BUSINESS                          Manager’s Report

            Ms. Dillon stated we have this one in contention with regards to the signs.

            Mr. Teague stated the two median signs are also in contention.

            Ms. Dillon asked which two are you referring to?

            Mr. Teague responded I am referring to the two large signs in the median identifying Cays Drive and Union Road.

            Ms. Dillon stated Mr. Motwani’s sign is changing this.

            Mr. Lambert stated we have not approved his signs yet.

            Ms. Dillon asked do you believe they will consider the sign on Cays Drive stating, The Cays at Port of the Islands as it once stated on the monument?

            Mr. Teague responded I did not ask them.

            Mr. Ziko asked why will they object to this?

            Mr. Teague responded it is not a commercial sign.

            Mr. Ziko stated the median is not commercial property.

            Mr. Teague stated they said the zoning is commercial.

            Mr. Cox stated I believe the sign code does not have a place for Port of the Islands.  Therefore, it must be taken to the next level.

            Mr. Teague stated I was told they could have gone ahead with the work in anticipation a permit was not necessary, but if the county did an inspection and found an illegal sign, there may have been problems.

            Mr. Lambert asked did they physically make up the signs?

            Mr. Teague responded they did not.  They made the two for which they received approval last week.  The Marina Hotel sign with the arrows were approved and they will install them next week.

            Mr. Ziko asked what is the status of the outside monuments?

            Mr. Teague responded the outside monuments were not going to be done since you decided to go with the median signs, which they have not yet approved; and they definitely rejected the arch.  However, we hope to have all of this resolved next week.

            Mr. Ziko asked did they indicate what they may want to see on the arch in order to make it commercial?

            Mr. Teague responded I did not speak to them.

            Ms. Dillon stated perhaps Mr. Benson should speak to them.

            Mr. Benson stated I talk to county personnel all the time.

            Mr. Bissell asked are they going to remove the old marina and hotel signs when they put the new ones up?

            Mr. Teague responded they should do so, but if not Mr. Edge will remove them.  I am not certain whether or not this was part of their contract.

            Ms. Dillon stated I understand Mr. Motwani’s sign was approved.  Where do we stand?

            Mr. Teague responded Martin, the sign representative told me he believes it was approved since they are making the sign, but a different salesman sold the sign.

            Mr. Cox asked have we given him permission to do this?

            Mr. Teague responded we have not.

            Mr. Cox asked where is he locating it?

            Mr. Bissell responded he is locating it on his property at the same location as the old one on Union Road.

            Mr. Benson stated it is going to be in the median on Route 41.

            Mr. Cox stated he does not own property on Route 41.

            Mr. Bissell stated I understand he was going to put the sign at the same location as the old one.

            Mr. Lambert stated we have not given him permission to put a sign up.

            Mr. Ziko stated I thought the county had specifics on sizes since they limited our Cays Drive sign to three by four.

            Mr. Cox stated we need to ensure we notify them it is our property.

            Ms. Dillon stated his sign was going to say, Port of the Islands Hotel/Restaurant/Bar.

            Mr. Lambert stated if you do not get any feedback after your meeting with them, I believe we should get Mr. Cox involved.

            Mr. Teague asked do you want me to try to get an answer from Mr. Colletta first?

            Mr. Cox responded they must give you a written statement of denial, after which I believe there is a 21-day appeal period.  If they already gave you a signed letter of denial with a reason, I need to get it as quickly as possible.

            Mr. Teague stated I will call Martin and ask if he has a written denial because it may only be a verbal denial at this point.

            Mr. Edge asked do you want me to remove the sign?

            Mr. Teague responded you should not remove it yet.  I will get with you if they are not removing the old sign.

            Ms. Dillon stated we took the old one down because they were going to use it for the new sign, as opposed to them making a new sign.

 

FIFTH ORDER OF BUSINESS                               Old Business

A.                 Stella Maris Assessment Questions

Mr. Teague stated I am not certain what Mr. Goscicki mentioned to you.  I am aware there is a discrepancy between the two condominiums not being charged O&M and Debt Service, even though it is considered a water standby.  It is listed as common ground which is the reason it is being charged this way.  I understand we need direction from the Board in order to change this.

            Mr. Ziko asked can we determine whether or not they are paying for the extra 13 ERCs?

            Mr. Cox responded they are being assessed according to the assessment roll.

            Mr. Teague asked are they being assessed for the water standby?

            Mr. Cox responded that is correct.

            Mr. Bissell asked is it being paid?

            Mr. Cox responded I cannot answer this question.  The tax bills just went out and taxes are not due until November 1st.  Therefore, we will not know if they are being paid until March 31, 2008.

            Mr. Lambert asked are they being assessed for O&M?

            Mr. Teague responded they are not.

            Mr. Lambert asked why is this the case?

            Mr. Teague responded it is common ground.

            Mr. Lambert stated it is not consistent with the other condominiums.

            Mr. Teague stated common grounds are always assessed for water standby only.

            Mr. Lambert asked should the assessment be spread over all of the units?

            Mr. Cox responded I believe so.

            Mr. Lambert stated I understand the failure was the fact it was not spread over all of the other units.

            Mr. Benson stated for example, if Collier County gave them a permit to add another building one story taller, they would have needed the ERCs to deal with the builder or we would have rejected it on utility grounds.  Therefore, they still could have used those ERCs before they built their last building if they had permits from the county.  I believe this was holding them back at some point.

            Mr. Lambert stated I understand this, but it is not the Board’s fault this was not done.  Therefore, we should receive a portion of the revenue.

            Mr. Cox stated this assessment roll contains 17 allocated debt units and 13.6 standby units which are being assessed at $6,474.79 for O&M.

            Mr. Lambert stated the spreadsheet which Severn Trent sent to us does not show this.

            Mr. Teague stated this was possibly not the case last year, but I will check on it.

            Mr. Cox stated this will be your 2007/2008 roll.

            Mr. Lambert asked does the county use this spreadsheet?

            Mr. Cox responded this is possible because you did not change any of your assessments this budget year and since there is a typographical error there, I believe Ms. Ellis may have changed the names.

            Mr. Lambert asked can you check on this?

            Mr. Teague responded I will do so.

            Mr. Cox stated there are still some utility ERCs on Tract 2 which were removed from the 17-unit bond debt.  Perhaps we should move all 17 of those and have them along with the bond debt in order for the utilities to remain consistent.

            Mr. Lambert stated I believe it was specifically 241 Stella Maris Drive.

            Mr. Benson stated it consists of two common property tracts, one for the land around the Phase 2 buildings and the other for the land surrounding the Phase 3 buildings.

            Mr. Cox stated the parcel over there was being assessed as a multi-family unit, but it was developed as a single-family unit.  However, Ms. Ellis updated this and the bill is going out as a single-family unit, which decreases it to 16.8 because we allocated it to .8 in order to make it one, increasing it to 17.

            Mr. Lambert stated this was originally part of the Stella Maris HOA of 50 units; and Mr. Burgesson broke off the condominiums from them.  I understand what you are saying, but I am not certain if it is less.  I am trying to determine why we should subtract from the condominiums.

            Ms. Dillon stated as I recall, several years ago the entire Board granted the owner of Lot 72 at Cays Drive an additional .2 in order to bring it up to one ERC to be used as a single-family home lot; and he paid us a certain amount of money to do this.  Therefore, it should be assessed as one ERC.

            Mr. Cox stated it was assessed the year before as one bond debt unit in .8 ERCs.

            Ms. Dillon stated this needs to be corrected since it is a single-family unit.

            Mr. Benson stated it has one bond debt and it just needs to be one ERC.

            Mr. Lambert asked what will it take to go through the entire list and clean this up if we are certain we are correct?

            Mr. Cox responded I believe we corrected much of this, but the issue is if you have a common area being assessed and it is not paid, it may go on the tax certificate.  Therefore, we can do some research and we may potentially have to remove some ERCs and assessments from the roll for next year in order to bill this correctly.  I believe once we tell him he has these ERCs, he is going to try to transfer 11 to Orchid Cove and six to the hotel.  However, our rule for transferring ERCs requires all assessments and taxes to be paid.  He has market value in those ERCs, which I believe is going to be significantly more than $30,000 which he may include as part of the consideration for transfer of the ERCs.

            Mr. Benson stated the properties he was referring to do not require ERCs.

            Mr. Cox stated true-ups must be done as your developer is doing the project and deciding to move things around.  If the developer gives you the final parcel and you have all of the paid-for debt units out there, you will only be billed for those assessed units.  You must re-do the methodology over the entire parcel and take the additional 10 units which were not used and spread them over the entire lot.  However, I do not believe we have the ability to do this.

            Mr. Ziko stated he just wants to sell these in order to avoid having to pay for them, which I believe artificially lowered the price of the ERC.

            Mr. Cox stated I think he is going to recognize the value of them.

            Mr. Bissell asked are there any ERCs on the corner lot of Cays Drive and Stella Maris Drive?

            Ms. Dillon responded this is the common area we are discussing.

            Mr. Benson stated the corner lot is now part of the larger common tract which surrounds all of the roads in the area.

            Mr. Bissell asked what happens if they want to build on this if it does not require ERCs?

            Mr. Benson responded if they want to build a home or condominium, ERCs are required.  However, they are not required for swimming pools or clubhouses.

            Mr. Bissell responded I believe they were going to build a pool and I was told they will be charged.

            Mr. Benson stated they are charged for the water, but not for ERCs.  The multi-family units have the right to have a swimming pool just like a single-family home.  Some multi-family units have amenities like this and some do not.

            Mr. Lambert stated a major concern was the two discrepancies on the documents.  If these documents go to the county, we need to ensure they are correct.

B.                 Water Billing Questions and Turn On/Off Policy (Continued)

Mr. Teague stated you are currently not charging anything.  Generally, many other areas charge approximately $20 for turn-on and turn-off of service.

            Mr. Dick stated $25 is usually charged during normal business hours, and $40 is charged after hours.

            Ms. Dillon asked what may cause this to happen?

            Mr. Teague responded non-payment may cause this to happen.

            Ms. Dillon stated we need to send everyone a notice we are going to be doing this.

            Mr. Dick stated we will also charge a turn-on fee in the event someone who had it turned off before leaving on vacation and returned earlier than expected; thereby requesting it to be turned on during off hours.

            Ms. Dillon stated most people I know turn their water off manually at the entrance to the house.

            Mr. Dick stated a renter of a unit will occasionally ask us to turn the meter off, but it does not happen often.

            Mr. Lambert stated we should charge people for this, since they are taken away from their regular jobs.

            Ms. Dillon stated they should also be charged for turn-off due to non-payment.

            Mr. Lambert stated we can charge a late fee if they do not pay on time.

            Mr. Ziko asked are you stating it is $25 during business hours?

            Mr. Dick responded that is correct.

            Ms. Dillon asked is this charged for turn-off as well?

            Mr. Dick responded you do not get charged for both.

            Mr. Ziko stated I believe $25 is inexpensive.  I believe we should charge $50 for both turn-off and turn-on fees.

            Mr. Dick stated you can charge any fee you want.

            Mr. Ziko stated this will eliminate the constant need to turn off and on, and if we bill on a 1,000 gallon basis, there is no reason to turn it off.

            Ms. Dillon stated I agree we should charge $50.

            Mr. Lambert asked are we going to charge more during off hours since it is going to cost us more to have someone come out?

            Ms. Dillon responded yes.

            Mr. Ziko stated we should charge $75 for off hours.

            Mr. Bissell stated for clarification, turn-off will cost $50, and turn-on will cost an additional $50 after the bill is paid.

            Mr. Dick stated it will not cost an additional $50 to turn it back on.

            Mr. Bissell asked why not?

            Mr. Dick responded this is typically a one-time fee.  We will turn it off and if they never pay, it stays off.  When they finally pay, we charge a fee in order reinstate their service.

            Mr. Bissell stated we paid for both turn-on and turn-off where I came from.

            Mr. Dick stated there is more involved with turning the service on as opposed to turning it off.

            Mr. Lambert stated I thought Severn Trent was going to get information from other Districts in order for us to do a comparison.

            Mr. Teague stated I have seen $20 for each transaction, which amounts to $40.

            Mr. Cox stated since this is considered rule development; we will have to hold a public hearing.

            Ms. Dillon asked can we amend the rule?

            Mr. Cox responded this cannot be done without going through the rule process.

            Mr. Lambert stated perhaps you should get us some information from other Districts.

            Ms. Dillon stated perhaps we should consider holding a workshop one hour before a regular meeting.

            Mr. Cox stated you can recess your regular meeting in order to hold the workshop.

            Mr. Bissell stated we should add this to next months’ agenda.

            Mr. Cox stated the requirements are somewhat lengthy and we can probably discuss it next month.

            Mr. Teague stated I will get a copy of all necessary information and I will do a survey of charges from five or six communities.

            Mr. Ziko asked can a person occupying a unit for which we turned off the service due to non-payment legally come back to the Board and accuse us of causing sanitary or other health-related issues due to the fact we are not providing them water service?

            Mr. Cox responded the Statute provides for the issue of remedy to turn off power.  However, if a property owner disconnects the sewer of a person who did not pay the rent, the property owner is liable.

            Mr. Ziko stated the utility is not liable.

            Ms. Dillon stated this is the case as long as this rule is in place.

            Mr. Cox stated the state law remedy for a person refusing to pay their bill is to turn off their service until they pay.  However, the late charge or re-connect fee is what applies to the rule.

            Ms. Dillon stated I agree there should be a late charge if the bill is not paid by the due date.

            Mr. Cox stated I believe our rule may address this.

            Ms. Dillon stated we should have something.

            Mr. Ziko stated we need to determine what Severn Trent will charge us if Mr. Edge has to take care of this during off hours.  For example, if you shut them off at noon; they call you at 4:00 p.m. asking for their water to be turned on by 6:00; and you go out there to do this, you must include travel time each way, which may amount to three hours of overtime.

            Mr. Cox stated this is exactly the way it should be determined.

            Mr. Dick asked when was the last time they did a rate assessment?

            Ms. Dillon responded it has been several years.

            Mr. Cox stated perhaps we should do a complete analysis of all of our rates while we are involved with this rule-making process.

            Ms. Dillon stated I agree this is a good idea.  Perhaps we should target the December meeting to do all of this.

            Mr. Teague stated I am not certain who will handle this in our firm, but I will check on it.

            Ms. Dillon stated we should have a target date to have something to work with.

            Mr. Lambert asked do we have any severe abusers of paying late or not paying at all?

            Mr. Edge responded I had one in 13 months which I actually had to shut off.

            Mr. Lambert stated we should not have to rush on this issue.

 

SIXTH ORDER OF BUSINESS                              Field Manager’s Report

            Mr. Edge stated, we poured the pads out there for the new MBR system.  All of the electrical work was done prior to this and the project is moving forward quite well.  The VFD drives which were approved by the Board a few months ago were installed at the irrigation station last week.  They are working on getting all of the controls installed correctly and will be done by the end of the week.  All of the old material was gutted out; the new material was put in; and the wiring of the regulation equipment is being done in order for the system to automatically turn on when the pressure demands.

            Mr. Lambert stated we have to use the 30-Horsepower as the main line and plug it with the 50-Horsepower line.

            Mr. Edge stated that is correct.  Once we are done with this project, you should see a decrease in the electric bill which is high right now since it is running 24 hours per day.  Instead, it will turn on only when people are in demand and it should be done by the end of next week.

            Mr. Lambert asked what is the status of the rest of the maintenance?

            Mr. Edge responded we are currently in the process of closing off the irrigation and getting ready to install an air conditioning unit in there to protect the new equipment.  The new equipment was ordered, but has not arrived yet.  However, we are moving forward.

            Mr. Lambert asked have we taken care of all DEP concerns?

            Mr. Edge responded we installed a generator status control on the alarm system at the wastewater treatment plant approximately four weeks ago.  The work is complete, and if generator failure occurs, I will be contacted immediately.  As a result of this work, DEP has told me they are satisfied.

            Mr. Bissell stated you told me yesterday you have not checked the open tank.  A few years ago they inspected these; we were written up; and we had to make the corrections.  This is a list of items which were quoted.

            Mr. Edge stated if you are referring to the tanks at the wastewater treatment plant, I was not here during this time, but I heard they had it cleaned out at one time and the sludge was removed, which is probably the reason we were written up.

            Mr. Benson stated it never was totally cleaned out.  This was a preexisting condition, and it had to be cleaned again.  Unfortunately, this needs to be cleaned on a regular basis.

            Ms. Dillon asked what will this cost?

            Mr. Dick responded we have to do a more thorough investigation as to how much sludge is there.

            Mr. Benson stated the tank must be drained and workers probably have to get in there with shovels since there is literally so much material at the bottom.

            Mr. Lambert stated perhaps it does not make sense to do this now if the DEP is not enforcing it.  Perhaps we should get our reuse water system ready to go first.

            Mr. Benson stated it needs to be cleaned and kept this way.  However, I believe with all of the water being produced and the enhancements Mr. Edge is making to the system, it will be able to be kept clean.

            Mr. Lambert asked will it have to be re-cleaned?

            Mr. Benson responded you will not have to perform a major cleaning, but maintenance will be required, and I believe their contract stipulates maintenance after a couple of years’ worth of accumulation.  However, I am not certain what is in their contract for maintenance.

            Mr. Lambert stated I do not want to clean it now if it has to be cleaned again before they start the work.

            Mr. Benson stated since the new tank will be covered, it will be less likely to require regular cleaning.  I do not believe most of the material blew in because it was an uncovered tank, although Mr. Stephens would tell them this.

            Mr. Bissell stated the blown-in material was not giving us a problem.

            Mr. Dick stated Mr. Stephens used this as a sub-standard.  The system was designed to use their treatment plan as a sub-standard, and they put effluent in there for many days.  Once he straightened up the plant he would close it out and allow the water to evaporate, and all the solids remained.  Again, he would put more water in there until he got one square inch off of the valve, after which it continued to evaporate and the solids continued to build up.  Some seed did blow in, which is why you have small trees and plants.

            Mr. Bissell asked is there a macerator pump to remove the solids when the effluent goes into the tank?

            Mr. Dick responded there is piping in the design which allows the rejected or sub-standard material to go back to the spare wastewater treatment pump, which can be re-treated.  This is what he should have been doing.  Once it is in there, you cannot bring it back.

            Mr. Ziko asked can you get some estimates for the cleaning cost?

            Mr. Dick responded we are in the process of doing this.

            Mr. Benson stated we wrote him letters and phoned him repeatedly about this issue, but he never really paid attention.

            Mr. Bissell asked is there a macerator pump to take care of the material coming into the tank?

            Mr. Benson responded since this material is not supposed to go into the tank in the first place, we do not have this type of pump.  The fact this material was getting in there indicates he was not operating the facility properly.

            Mr. Ziko asked can we physically remove the pipe which is bringing this material in there?

            Mr. Benson responded I do not believe we can physically remove the pipe since we must use it as a main backup in the event of an emergency.  However, you can store the extra water to be pumped back for re-treatment, as required by the rules.

            Mr. Ziko stated I thought Mr. Dick said this could not be done.

            Mr. Benson stated we now have two places for water storage.  One is a regular tank and the other one is part of a back-up system which is required to provide the operators flexibility.  We allow as many backups to each other as possible, and we also have different available tanks for holding purposes in order to minimize the need to build this other tank.  We have tried to use what we have in order to make the best of this situation.

            Mr. Bissell asked when should this be done?

            Mr. Benson responded I believe the cleaning should be done as soon as is practical, after which we should maintain the water quality.

            Mr. Bissell stated perhaps you can bring something to the next meeting.

            Mr. Edge stated our THMs at the water treatment plant came back failing, which I suspected was going to happen.  We are going to have to determine a way to alleviate this problem.

            Mr. Benson stated we installed the first two Hydro-Guard units as part of the system to promote automatic flushing.  The rules for most utilities have gradually become more stringent with regards to THMs.  Flushing is one of the main ways of alleviating problems in the distribution systems.  The state has adopted the same rules in conjunction with the EPA for Stage 2 EPT over the last couple of years, which refers to disinfection of by-products. There is an EPA report which deals with addressing this issue along with recommendations for staying in compliance.  It is entitled, The Compliance Guidance Manual, and one of the issues they specifically address has to do with systems similar to ours.  It discusses a long water age, which has to do with the length of time water is in the pipe from the time it leaves the water plant until the time it gets to the customer.  They specifically discuss optimization and management of flushing systems.  I am a representative of the company which manufactures Hydro-Guard and they are interested in doing some research.  I have given presentations for the American Water Works Association and at state meetings many times over the last five years on this subject.  We want to get some research data in order to assist with POI’s situation.  Hydro-Guard has offered to do the engineering which involves the mathematical modeling as well as the necessary evaluation to be done in order to optimize your system.  We will handle this free of charge.  You already have two Hydro-Guards today and have discussed installing additional Hydro-Guards over the next few years.  As part of this offer, we recommend you to purchase two more Hydro-Guards; after which we will do an analysis with your staff of the current condition in order to help us identify through the modeling how to optimize your system following the EPA’s standard protocol.  If you decide to purchase, we will recommend the two matching points for installation; and after it is installed, we will collect some more data.  In exchange for the pre-engineering and evaluation which you would otherwise have to pay for, we want to use the data and publish it in a paper for our presentation.  Each Hydro-Guard unit costs $2,695, and the total for two is $5,390 with free shipping and handling.

            Mr. Ziko asked are you offering a discount?

            Mr. Benson responded I am offering free shipping and handling as well as free engineering studies which are worth much more than $5,000.  Since you are having an engineer do a study to optimize your system, I will give your staff the correct buzz words to use in a response to DEP of what you are doing free of charge in exchange for the research data.

            Mr. Ziko asked do you eventually see one of these Hydro-Guards pay off in the long run?

            Mr. Benson responded this is a possibility.  I have done some preliminary computer modeling of the system and this appears to be the way to get the highest quality water.  The normal approach is to take the two worst points in order to add some benefit to the ones which are upstream, which may not solve the problem on these other tables.  The next step is to calibrate the calculations from the optimization study using what you currently have and using the other one in order to determine the benefits of purchasing two more units.

            Mr. Bissell asked how often do you currently flush those out?

            Mr. Benson responded they are flushed on a daily basis.

            Mr. Edge stated I program the Hydro-Guards at the end of Wilderness Cay and Newport Cay, which come on at approximately 5:00 a.m. for 15 minutes per day.  I do this because we have such seasonal residents here and the water does not move down fast enough.

            Mr. Bissell asked what about the ones which are not Hydro-Guards?

            Mr. Edge responded I do not handle those on a daily basis.

            Mr. Bissell asked how often do you handle the other ones?

            Mr. Edge responded I do them on a quarterly basis because we have six or seven streets which are not on Hydro-Guard.

            Mr. Bissell stated before Severn Trent became our operator, a staff member at one of the Board meetings recommended how often those should be manually taken care of.

            Mr. Benson stated we prepared documents for the flushing program in response to a requirement from the DEP to have one, in which we identified the locations of all of your valves, after which we were to install a generic program.  I am not certain whether or not the exact minimum length of time between flushing was mentioned.  We probably do it more often than necessary, which is the reason for these automatic flushing manufacturers.  One of these documents specifically addresses automatic flushing as something which basically must be done in some areas.

            Mr. Bissell stated this may be why it is so important they are not automatically flushed.

            Mr. Benson stated this is not costly, but you will have to pay Severn Trent to install them.

            Mr. Bissell stated they should be manually flushed until this is done.

            Ms. Dillon stated they follow a schedule.

            Mr. Bissell asked is quarterly often enough?

            Mr. Dick responded doing this on a daily basis will be extremely labor intensive.

            Mr. Benson stated I anticipate having one at each Cay, in order to avoid having to do this on a daily basis.  However, they may have to be done every other day.  If you did an optimization study having nothing, you may determine the need to send people out in the field everyday or every other day to do something, which may require an additional staff person.

            Mr. Bissell stated you are currently doing this every three months.

            Mr. Edge stated we do flushing on the end of these roads based on soaring residual as you open it and coring residual a few minutes later in order to determine whether or not there is a change.  If our study indicates the residual is 1.0 when we open it and 1.2 within five minutes, we know there is enough usage in which it is not changing and it is not necessary to flush.  I want to get away from wasting too much water since I have to make it at the water plant to be able to waste it on the ground.  Currently, Wilderness Cay and Newport Cay runs 2,200 gallons per day on each one of them to drain the water from the front of the road from Newport Drive to Newport Cay, which indicates fresher water is coming down automatically for the people using water in Sunrise Cay, Sunset Cay and Venus Cay; thereby decreasing the need to flush on the end of the Cays.

Mr. Benson stated this decreases the amount of water which is actually needed; thereby improving the water quality.  One of the specific issues the EPA manual addresses in this section is increased water loss, in which it states having a flushing program will lead to loss of water, but the energy savings outweigh the cost, and the system is made to minimize water loss through careful design of the flushing system.  The optimization they are referring to which has been proven is use of automatic flushing devices may help control flushing volume and reduce water loss.  Some of the water management districts in Florida have given grants for large utilities to help purchase these.  The purchase of a few Hydro-Guards is not worth going through the expense to get them to pay half and spend more money to try to get the grant.  However, if you are going to purchase 100 of them, in which you can get half of the cost, it is worth applying for the grant.

            Mr. Lambert asked can we get off the hook for quarterly testing if we do this?

            Mr. Edge responded we must do quarterly testing until we have four quarters of non-failure.  I am also going to do other things at the water plant even if we approve purchase of the Hydro-Guards.  We have a 132,000 gallon storage tank in which the water is pre-chlorinated, and we are currently averaging approximately 56,000 gallons per day coming to the consumers.

            Mr. Benson stated they tell you to keep your tank at different levels according to the season if you have one tank; or take some of your tanks off line for part of the year if you have multiple tanks.

            Mr. Edge stated I decreased the float system by approximately 8,000 gallons of water; thereby decreasing our retention time by approximately one day.  I may decrease this more since we are averaging approximately 56,000 gallons per day, leaving us with one day for storage instead of two.  One of the benefits to this is using less chlorine than necessary.  We are currently fitting 15 lbs. of chlorine per day for a 24-hour operation in order to get what is needed at the end.  If I decrease my retention time in those storage tanks, I can decrease the chlorine feed down to 10, 9 or 8 lbs. per 24 hours.

            Mr. Ziko stated we are losing our backup capability by one day.

            Mr. Dick stated we will lose all of the storage in the filter if we have a water main break.

            Mr. Lambert asked are we in a situation in which we may have to find a truck in order to haul water from another location if this happens?

            Mr. Edge responded in any event, since our alarming system at the water plant does not work correctly now, I will set the alarm float to turn on approximately one foot lower than the actual one in order to start making water float, and I can be there within a half-hour to ensure we are not going to run out of water.  I can also isolate the leak and man the system if a problem occurs during off hours.

            Mr. Dick stated the wells shut off at 23’, but you must start making water at 18’.  Mr. Edge can set the low level alarm to go off just below this to alert him to a problem.

            Mr. Ziko stated the alarm is not a shut-off.

            Mr. Edge stated that is correct, but it gives me time to get here.

            Mr. Dick stated he can adjust all of the floats, but we recommend running it at half or two-thirds full in order to reduce the retention time; thereby shortening the contact time between the free pouring and the organics in the water, and the length of our distribution system will allow a few days and nights before it ever comes out.

            Ms. Dillon asked are there two areas in the worst condition which require purchase of two systems?

            Mr. Edge responded our sampling plan designates an area just across from Mr. Gatti’s house and anywhere north of this is going to help.

            Ms. Dillon asked will we encourage Orchid Cove or the RV Park to install the same type of machine?

            Mr. Edge responded it is the same machine which is at the end of your street.

            Ms. Dillon stated you were going to check on this last month.

            Mr. Edge stated I changed the timer.

 


Mr. Lambert moved to approve the purchase of two HG-1 Integrated Units for the water distribution system at the water treatment plant from Hydro-Guard Automatic Flushing Systems in the amount of $2,695 per unit, for a total of $5,390 which includes free data collection, analysis and engineering to be done by the District Engineer and Ms. Dillon seconded the motion.

 

            Mr. Ziko asked will you be able to designate the location of these units in the engineering study since these units are probably readily available?

            Mr. Benson responded part of the study will be to recommend the appropriate procedure based on the mathematical modeling done on the computer.  It will also determine how many minutes each unit should run.

            Mr. Lambert asked will approval of your proposal include this study?

            Mr. Benson responded that is correct.  I prefer including this because we can use the research data and since the company is local, this is a good community to work with.

 

On VOICE vote with all in favor the prior motion was approved.

 

            Ms. Dillon asked what is the status of the bill for plumbing at the small real estate office?

            Mr. Edge responded this is still being worked on.

            Mr. Ziko stated perhaps you can send this material to us to look at prior to the meeting.

            Mr. Edge stated absolutely.

            Mr. Ziko stated perhaps you can send it the Friday before the next meeting.

            Mr. Edge stated I can do this.

            Mr. Benson stated Mr. Cox and I were looking at this and we had a couple of questions.  The left column is cut off on your spreadsheets under the water log.  Mr. Cox was looking at the second column which has a number in it.  Is this the water pump for the water plant?

            Mr. Edge responded the first column is the meter reading for our effluent lines or our water meters at the plant; the second column are those results in gallons; and the third column is going to be water sold for a particular timeframe.

            Mr. Benson asked does this include irrigation?

            Mr. Edge responded irrigation is not handled there.

            Mr. Benson stated the first one is a meter reading and a zero must added to it.

            Mr. Edge stated there is a formula inside which calculates this into gallons to be equivalent to 1,000 gallons.  The fourth column is a counter for water loss; and the fifth column is the difference in gallons.

            Mr. Cox asked does it include irrigation?

            Mr. Edge responded it does not.  This column tells us how much unaccounted-for water we are losing.  The next column is the percentage of loss for the month.  The last column is a 12-month running average.

            Mr. Cox stated this represents 30% in water loss which has declined slightly, but not much.

            Mr. Benson stated on the last page of this handout is the monthly water report.  There is a column entitled, Net Quantity of Finished Water Produced, and it contains daily amounts produced and the total for the month at the bottom is 1,724,000.  How does this number compare to the number on the other page we were looking at?

            Mr. Edge responded this may be an error.

            Mr. Benson asked did you produce 1.7 million even though you only accumulated 359,000?

            Mr. Edge responded this did not appear to be correct.  The water sold is calculated from September 14th to October 14th.  My meter readings on this report are the actual readings from day one to day 30 or 31, which is correct for this report which we send to the DEP.  However, since the numbers were inconsistent, it appeared my water loss was increasing, and I looked at our billing registry which showed me how much we sold in a certain timeframe.  My log book reflected a different billing cycle.

            Mr. Benson stated the meter which is being read and leaves the plant is what is pumped out of the storage tank.  The number you are using for the monthly report is the Net Quantity of Finished Water Produced.  Is this a different meter?

            Mr. Edge responded it is the same meter.  The two reports are different because the DEP gets a summary report first.  I am trying to give you more accurate data as to what we sell from September 14th to October 13th in order to get more consistency in the numbers of percentage of loss.  When I reviewed this report initially, it showed a 35% loss.  I went to my billing registry and accounted for how much they sold; looked at the dates; and went back to my log book and looked at the dates.  After I did the meter reading from the October 14th, October 13th and September dates and did the calculations, it started making more sense.

            Mr. Benson stated the only reason I asked is I worked with another plant which had two meters at the water plant, one meter coming at one point and another meter coming out at the tank.  These meters did not balance out when they were calculated over the month; and I just wanted to ensure we did not have the same problem.

            Mr. Edge stated we have only one meter for this purpose.

            Mr. Cox asked do you recall when you changed the methodology?

            Mr. Edge responded I changed it this past month.

            Mr. Cox stated it may be interesting to true up all of the previous months if it is not too much trouble because we have some odd numbers and I know you are also doing a running average and accounting for it.  Perhaps we are not looking quite as bad.

            Mr. Edge stated I will try this.

            Mr. Cox stated this is important because if we are on a running average of 30%, we may have some serious problems, and someone is going to come down hard on us.

 

SEVENTH ORDER OF BUSINESS                        Attorney’s Report

            Mr. Cox stated with regards to Orchid Cove, I have not heard back.  I sent the e-mail to him which I copied you on earlier this week three times over this month and he has not replied to me.

            Mr. Lambert stated I have a suggestion for Item #1 in the agreement.  It should be worded for the District Engineer to approve the location.  Perhaps Mr. Benson should determine the locations.

            Mr. Teague stated you are suggesting it to say, the automatic flush valves will be established by the District’s Engineer.

            Mr. Cox stated it should state, must be approved by the District’s Engineer prior to installation.

            Mr. Teague stated Mr. Lambert is suggesting Mr. Benson will actually establish it as opposed to approving it.

            Mr. Ziko stated you should refer to the valve location.

            Ms. Dillon stated the irrigation line was in the median.  Is it your understanding it goes all the way down Union Road since it does not state where it ends?

            Mr. Cox responded I believe we must have the locations for it as part of the negotiations because I do not think we can ask them to do the whole median from end to end.

            Ms. Dillon stated they have done everything else and it is their property.  I thought our negotiations with Orchid Cove included our expectation for them to do some road paving on Union Road.