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, December 16, 2005 at 10:00 a.m. at the Egret Room, 25000 Tamiami Trail, Naples, Florida.

 

            Present and constituting a quorum were:

 

            Richard Gatti                                                    Chairman

            Dale Lambert                                                   Vice Chairman (Via Telephone)

            Ted Bissell                                                        Assistant Secretary

            Norine Dillon                                                    Assistant Secretary

            Richard Ziko                                                    Assistant Secretary

 

            Also present were:

 

            John Petty                                                        Severn Trent Services

            Dan Cox                                                          Attorney

            Ron Benson                                                      Engineer

            Tom Mack                                                       Staff

            Christopher Shucart                                          POI Hotel & Marina

            James Shucart                                                  POI Hotel & Marina

            Samantha Marchand                                         POI RV Resort

            Bruce Holecek                                                 POI RV Resort

            David Lawrence                                               The Sunstream Group

            Barry Beagen                                                   Resident

            Roger Ducoffre                                     Resident

            Barbara Lagasse                                               Resident

            Duane Otto                                                      Resident

            Peter Saalprank, Sr.                                         Resident

            Numerous Residents

 

FIRST ORDER OF BUSINESS                               Roll Call

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

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the November 18, 2005 Meeting

            Mr. Gatti stated each Board member received a copy of the minutes of the November 18, 2005 meeting and requested any additions, corrections or deletions.

            Ms. Dillon stated on Page 13 in the motion box, ’16’ should replace ‘15’.  On Page 17 in the tenth paragraph ‘$16,000’ should replace ‘$1,600.

 

On MOTION by Mr. Ziko seconded by Mr. Bissell with all in favor the minutes of the November 18, 2005 meeting were approved as amended.

 

THIRD ORDER OF BUSINESS                             Ratification of Resolution 2006-01, a Resolution Amending the Port of the Islands Community Improvement District Debt Service Fund Budget for Fiscal Year 2005

            Mr. Gatti asked can you give the Board an overview of this resolution?

            Mr. Petty responded at the end of the year we ask for a resolution to amend the budget to what actually occurred during the year, and there were changes in the debt service fund budget, which are noted in the attached Exhibit A.  We are asking the Board to ratify this resolution in order to clear all the actions of this past Fiscal Year.

            Mr. Cox stated much of this was precipitated by the pre-payment and delinquent payments we received.  As you can see, the debt service fund improved substantially from what it has been in the past.

 

Mr. Bissell moved to approved Resolution 2006-01 amending the Debt Service Fund Budget for Fiscal Year 2005 and Mr. Ziko seconded the motion.

 

            Mr. Benson stated the debt service fund statement on the financials we received for this meeting shows the revenues as of November 30, 2005 at $883,900.

            Mr. Petty stated these figures are different from what is on Exhibit A because the update was done after the financial statements were done.

 

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

 

FOURTH ORDER OF BUSINESS                          Open Items

            Equipment Inventory

            Mr. Ziko stated since Mr. Stephens and Mr. Dick are not in attendance, we will hold off on this item.

            Reuse Water for Irrigation

            Mr. Benson stated there were questions with regards to what certain companies charged last month, and some of this related to reuse equipment.  One pump, which was to be delivered COD and had to be insured is still outstanding, but may have come within the last few weeks.  The electrical contractor gave us the anticipated proposals.  We should have received a proposal either yesterday or today from the mechanical contractor who installed the pressure equipment.  We originally thought on-site staff would do some work, but the contractor will do all the installations since we are short-staffed.  This installation should occur next month.  The last piece of equipment to be delivered in February or March 2006 is related to wastewater treatment plant modifications, and may be part of the first open item.

            Mr. Ziko asked how does this tie in with the work going on in Newport Cay, and have all the people been notified there are going to be two separate water lines going through their drives?

            Mr. Benson responded we currently have potable water for irrigation which will have a non-potable water source.  I sent the information to Mr. Dick after the last meeting as to which homes will be affected, and I am not sure if Severn Trent sent the notification letters.

            Mr. Gatti stated everyone in the neighborhood is aware of this and we have all been checking to ensure everything is being hooked to the correct meter.

            Mr. Benson stated I do not believe the meters were hooked up yet.

            Mr. Gatti stated I am aware of this, but this is currently the main concern.

            Ms. Dillon stated we also want to ensure residents receive a letter regardless of what you believe they may know.

            Mr. Benson asked since Mr. Dick is not in attendance and he was handling this, do you want me to comment on the remainder of the project now or wait until we get to my report?

            Mr. Ziko responded you can comment when we get to the Engineer’s report.

            Fire Station

            Mr. Ziko asked since Mr. Mack and Mr. Cox are handling this, do either of you have anything to report?

            Mr. Mack responded we are waiting on the appraiser.

            Ms. Dillon asked did you receive the appraisal?

            Mr. Cox responded yes.

            Mr. Bissell stated my telephone was out of order when you emailed the appraisal.  Please email me another copy.  Mr. Gatti did not receive a copy as well.

            Mr. Cox stated appraisals were $155,000 for 1 and four-tenths of an acre south of Route 41 near the staging area and $130,000 for 1 ½ acres north of Route 41 near the wastewater treatment plant.

            Mr. Ziko asked where do we currently stand?

            Mr. Cox responded I believe you have enough funds to purchase either one of the parcels.  It is a matter of preference for you and the fire department as to whether or not the south parcel is worth an additional $25,000.  As a reminder, the offer was to donate the parcel near the wastewater treatment plant, and use the appraisal as a basis for a tax deduction.  For tax purposes, do you need this transaction to be finalized for this year?

            Ms. Marchand responded you should probably ask Mr. Holecek.

            Mr. Ziko asked is the offer still available?

            Mr. Holecek responded I am not sure of the details of the offer.

            Mr. Cox stated there is a three-acre property between Union Road and the edge of your property south of the wastewater treatment plant, and we are interested in purchasing 1 ½ acres for the appraised value.

            Ms. Marchand stated it involved two parcels, which were divided in half because you thought the District may purchase a part of it for future facility expansion.  Was this a separate parcel?

            Mr. Cox responded this is the one for the fire station.

            Mr. Petty stated I believe she is referring to the appraised value.

            Mr. Cox stated they are equal and will cost $130,000 for each parcel.

            Ms. Marchand asked is the entire section worth $260,000?

            Mr. Cox stated that is correct.

            Ms. Dillon stated the property specified in the proposal was to be donated to POI in order for us to erect a fire station in Collier County.  Once the property is deeded over, we can build the fire station itself exclusively for POI, and it is possible to have EMS personnel there as well.

            Ms. Marchand asked are there any indications as to what you will allow them to do?

            Ms. Dillon responded we cannot become a training facility, and we set some stringent guidelines.

            Ms. Marchand stated we must decide if the District should buy it or if it should be deeded to Collier County.

            Mr. Mack stated the County felt it was better to go through them.

            Mr. Gatti asked is the property still available under the original offer?

            Ms. Marchand responded yes.

            Mr. Gatti asked is it possible you are going to proceed at the next meeting?

            Mr. Holecek responded Ms. Marchand recently made me aware of conditions and terms which I never heard of before.  I am not aware of all the details of this fire station, let alone the terms and ramifications.  I need to become more educated on this.

            Mr. Gatti stated the terms and conditions proposed protect your area as well as the rest of the community.  We do not want to see a training facility, and you may see something which will serve your interest as well.

            Mr. Cox stated Mr. Benson has some overlays which show the actual facility or probable facility based on what was done at other locations.

            Entrance Monuments

            Mr. Ziko asked do you know what is going to be done?

            Mr. Benson responded we all saw the renderings of the signs, which were emailed to the Board.  I intended on approving and telling the sign company to proceed with the work.  However, Mr. Ziko and other Board members had a comment on this.

            Mr. Ziko stated we thought the sign on the other side should be called ‘Union Road’, not ‘Port of the Islands’.

            Mr. Benson stated since Severn Trent is handling this, I am not sure whether or not they gave offers to the company based on the Board’s consensus.

            Mr. Gatti asked is the Board comfortable proceeding with this?

            Mr. Ziko responded we should wait until we get a status report from Mr. Dick.

            Mr. Benson stated Mr. Cox previously mentioned there are certain things County ordinances allow these signs to say, of which one is ‘Port of the Islands’.  It probably cannot say anything commercial.

            Mr. Ziko stated ‘Union Road’ is only the road’s name.

            Mr. Cox stated in terms of how we are approaching this permitting, in order to get the number of signs in proximity to each other, they must be residential subdivision signs with a unified theme.

            Mr. Ziko stated the original email stated ‘The Cays’, which was rectified.

            Mr. Bissell stated perhaps we can request the County put up these signs on the side of the road.  I have seen these signs in several places throughout the County where they identify the roadway.

            Mr. Ziko stated the sign which says ‘Union Road’ is appropriate to put at the entrance of Union Road.

            Mr. Bissell stated there are other rectangular signs before you come to the intersection.

            Mr. Gatti stated I do not think we want this type of sign out there.

            Mr. Benson stated I believe the CID is allowed to put up these street signs.

            Mr. Petty stated the signs cannot be put up on Tamiami Trail.

            Mr. Gatti stated it sounds as though we can take action on this.

            Ms. Dillon stated we did take action.

            Mr. Gatti stated we can direct staff to proceed.

            Mr. Petty stated I spoke to Mr. Dick before he went on vacation who told me staff has proceeded.

            Portable Generator for Sewage Lift Stations

            Mr. Ziko asked are these all in place?

            Mr. Benson responded I believe Mr. Dick reported last month after working with Mr. Stephens on this, the generator which is not yet installed is the one at the well field.  A special well field generator is required here by the DEP.  This generator required a filter to be placed before the generator can be set as it is located in a low level area.  I understand Mr. Stephens is going to use the backhoe for this.  However, I do not believe the work was done yet since he has been busy with hurricane recovery as well as being short-staffed.  The electrical contractor is going to install the generator at the same time they are doing work on the reuse pumps.  Therefore, we were able to get a reasonable price for doing both jobs together.

            Mr. Lambert asked is it possible to contract purchase of the bath board since Mr. Stephens is busy?

            Mr. Benson responded it is a small job which involves a small amount of filter to be placed on property owned by the District adjacent to the berm and the road out there.  If we hire a contractor and ask him to pull permits, we are going to start increasing the amount of permits we may need for a small job.

            Mr. Gatti stated we should direct Severn Trent to make this a high priority on Mr. Stephens list and proceed.

            Mr. Benson stated one of my staff is working directly with Mr. Dick on this project, and will work to get it done when he returns from vacation next week.

            Mr. Ziko asked is the portable generator for the lift stations on site, and if so, where is it?

            Mr. Petty responded Mr. Stephens needs to answer this question.  However, I know where he stores the portable pump, and if he received a generator within the last 60 days I assume he would keep it next to the portable pump with the rest of his equipment.

            Mr. Benson stated we were waiting on final delivery of one for the well field.  I do not remember what the optics for POI was with regards to the other generator.

            Mr. Ziko stated this is going to be held over to next month.

            DEP Letter – Compliance Inspection Report

            Mr. Ziko asked has this been taken care of?

            Mr. Benson responded we discussed a letter which Mr. Gatti received outlining new rules on disinfection at the last meeting.  Last month I stated we were going to take care of this and send the proper documentation which the DEP requested by the end of the calendar year.  As I previously stated, you meet the requirements necessary for sufficient disinfection based on this new rule.  We have to include this in the report, and you have to sign, seal and send it in.

            Ms. Dillon stated Severn Trent Services was going to handle the emergency preparedness plan.  You should check with Mr. Dick on the status.

            Mr. Petty stated Mr. Dick is still working on this.  Therefore, it is not complete.

            Mr. Ziko asked was it supposed to be complete by December 31st?

            Mr. Petty responded yes, and both Mr. Dick and Mr. Gosckcki told me it will be complete by December 31st.

            Mr. Ziko asked can you send an email telling me when it will be complete in order that I am aware we are in compliance by December 31st?

            Mr. Petty responded I will pass your request to Mr. Goscicki and Mr. Dick.

            Mr. Ziko stated this has been going on since February, and it is reasonable to complete by December 31st.

            Everglades Restoration

            Mr. Ziko stated it seems as though much of the money from this project has been diverted to the restoration which resulted from Hurricane Katrina.  Therefore, they will inform when this restoration will resume as soon as possible.

            Port of the Islands Mosquito Control

            Mr. Petty stated I am aware of the history of this project.

            Mr. Ziko asked can you give us any idea what can be done?

            Mr. Petty responded this has been researched many times since the early 1990s, and the County forbids this.  You are situated too close to the protected areas of the Everglades, and if we spray, the wind will automatically blow the chemicals into those protected areas.

            Mr. Ziko stated we understand this, but the problem still needs to be resolved.

            Mr. Petty stated we have this power within the District, and we implemented this through applications by staff.

            Mr. Ziko stated I understand staff currently has concerns with spraying for mosquitoes.

            Mr. Petty stated staff can do whatever you allow and fund them to do in accordance with State laws in relation to the chemical applications in this area.

            Ms. Dillon stated when we discussed this at the last meeting, he was trying to get additional people certified to spray chemicals.

            Mr. Petty stated this is a good idea so we do not have to rely solely on Mr. Stephens permit.

            Ms. Dillon asked do you know the status?

            Mr. Petty responded you should always encourage your employees to obtain as many credentials as possible in order to provide service to the community in relation to their field.  How many field operators do you have on site?

            Mr. Ziko responded as of the last meeting we had one field operator, and Mr. Dick was supplanting him with people from Severn Trent Services.

            Mr. Petty stated there is someone there today.

            Mr. Ziko asked is he a Severn Trent employee?

            Mr. Petty responded I did not ask him.  Is it possible he is a POI employee?

            Mr. Ziko responded Mr. Stephens is a POI employee.  However, we will discuss this with Mr. Dick when he returns.

            Proposal for Operation of Water & Wastewater Facilities

            Mr. Cox stated we were going to try to have those in today.  When I returned last month I realized we did not revisit the draft proposals for plant operations.  There were some questions about this previously, and one of the bidders had difficulty obtaining information.  Therefore, we wanted to create a different plan, and somehow Mr. Benson’s and a few other important addresses got tagged as spam in my email, and I thought I did not hear from him for approximately eight days.  It may actually be February before we can open the bids because it still needs quite a bit of work before we actually put this out for bid.

            Discrepancy Between Gallons of Water Pumped and Gallons Billed

            Mr. Ziko asked have we been able to establish procedures where we can check on this more closely than in the past?

            Mr. Benson responded we are replacing water meters in certain sections toward the end of the area where we are currently working.  Some of the oldest meters in the ground have been replaced, which may have helped.  When we were working on the water line project by the North Hotel, I discovered a line which was questioned in the past if it was metered and goes to the swimming pool.  Last month we authorized a change order for this work.  We replaced the line, and at this point if the hotel claims not have water to a certain area where it previously ran, it is because it was not metered.

            Mr. Ziko stated we receive our water bills every month.  Is it possible to set up a process of checking how much water goes out of the plant either on a monthly, bi-monthly or quarterly basis?  This discrepancy showed up and I do not believe we had a reading on it since then.

            Mr. Petty responded the water plant is required to take readings of how much water is produced on a daily basis, and the records are available to you.  Therefore, to compare them to the consumptive use for each month is asking for nothing more than a billing register from Severn Trent Services.

            Mr. Ziko stated this is what we thought, but we have not been able to receive it.

            Mr. Benson stated I obtained those records from your office when I did the Engineer’s Report last year.  I did a comparison, which showed we had a high percentage of water not accounted for.  Mr. Stephens and I will get together to resolve this issue.

            Mr. Petty stated when Mr. Benson and I worked together we did this on a monthly basis, and reported our findings to the Board.

            Mr. Benson stated Severn Trent should handle this.

            Mr. Ziko asked can you do this for two or three months to enable us to see where we stand since we have not had a recent report?

            Mr. Petty responded I will pass this along to Mr. Goscicki.  You are asking for a water audit on a monthly basis to show consumption against billables.  This has been an issue at POI historically because you are dealing with 40-year old pipes which have no prints.  Tracking down these areas and putting in meters has been a priority in this District since 1990, and every time we discovered an unmetered line, a new one was installed.  However, as you are digging up the lines to the north, you find lines which you previously were unable to find.

            Mr. Benson stated the oldest section of line is more than 40 years old, which are currently being replaced.  According to the developer, the code will be changed shortly, which may help us.

            Ms. Dillon asked does it make sense to do this audit now or should we wait until some of those lines are in?

            Mr. Ziko responded we can probably wait until after Newport Drive is complete.

            Mr. Cox stated you can probably get the last three or four months in order to have a baseline to work with.

            Mr. Petty stated I can highlight two or three months, but a water audit cannot be done on a monthly basis due to the possibility of misreads within a month.  It must be done over a longer period.

            Mr. Ziko stated we requested a statement be put on the water bill to boil water in case we have zero pressure.  This was not noted on the last water bill I received, and it covered 18 days.  The previous water bill covered 38 days.  Is it possible to make this consistent?

            Mr. Petty responded this is the way POI is set up, and it has money for the first time since its inception.  According to your contract, the amount we charge for doing utility billing is inexpensive, and you are the last District on the list.  We provided the service without charging the standard fee.  This is going to be the issue we will discuss when we do the budget this year.  POI is asking for services which a growing community wants, and we have not been able to provide much of these because of the fact that there was not enough money.  However, since you recovered from some issues you may want to consider those services and what you are willing to pay for them.

            Mr. Ziko stated there is a big discrepancy when you go from 38 days to 18 days.

            Mr. Petty stated the hurricane caused many problems.  A team of approximately three people were handling utility billing for approximately 10 districts along with being shut down for a period of time.  They are in the process of catching up, and POI was on the list which we processed in order to start another month.  Your future bills should be fairly regular, barring any emergencies.

            Grant from SFWMD

            Mr. Benson stated we have not heard from them.  Therefore, I will probably have to call them and follow up.

            Install Missing Reflectors for Fire Hydrant Location

            Mr. Ziko stated Mr. Dick was handling this, and I believe he received a supply of them.  Therefore, they are probably ready to go in place.

            Paint Fire Hydrants

            Mr. Ziko stated Mr. Dick was also handling this.

            Truck Decals

            Mr. Ziko stated I have not seen any POI decals on the trucks.  Has anything been done?

            Mr. Petty responded I have not received an update from Mr. Dick.  It was my understanding Mr. Stephens was going to check with a local sign company in Naples.  We will provide the logo and the artwork in order for them to do a cutout of the sign.

            Mr. Benson stated he already ordered them.  We are just waiting for him to get them put on.

            Portable Defibrillator

            Ms. Dillon stated Mr. Burgeson has still not returned my calls.  However, I will continue to try and get in touch with him.

            Review of Funds taken in from Back Payments

            Mr. Cox stated we have to get those memos.

            Auditor Fees

            Mr. Ziko stated we asked Mr. Goscicki to handle this one year ago.  He was supposed to get a contract with this auditor, we authorized it and nothing has been done.

            Mr. Petty stated in your package today there is such an agreement for the Board’s consideration with the auditor.

            Mr. Ziko stated the agreement was already considered last December and it was approved by the Board.

            Mr. Petty stated you get a new agreement each year.  As a matter of fact, in the legislative session which took place last summer the audit rules changed.  In the past, your manager selected your auditor.  Since there is supposed to be an independent audit, the legislators came down with a new rule which states only the Board can do this from their Auditor Committee position.  Therefore, you will sit as a Board during the regular meeting, and you will either appoint a selection committee or you will be part of the selection committee.  This is going to be done in a fashion as dictated by statute based on qualifications or other issues important to the District.  The process is similar to selection of your engineer.

            Mr. Ziko stated what you are describing is found in the motion we put forward at the December 17, 2004 meeting, in which we contracted this auditor for three years.

            Mr. Petty stated this is why you have a letter to agree to today versus going out for request for qualifications.

            Mr. Ziko stated we never signed a contract which was supposed to be attached to this motion.  We have never seen anything from Severn Trent indicating this company is our auditor.

            Mr. Petty stated you are asked to sign this letter every year.  Therefore, I believe you are referring to the original three-year contract which was signed in 2004.

            Mr. Bissell stated I do not believe we ever agreed to a three-year contract.  We were going to have a one-year contract, see how it worked out, and then decide if we were going to agree to three years.  In January 2005 we directed Severn Trent to negotiate a contract with the auditor, which was never done.  We also agreed on $4,750, which they increased to $5,500.

            Ms. Dillon stated their initial proposal to us was less money than what suddenly appeared in this contract.

            Mr. Petty stated the law changed which means you cannot hold them to the audit price of the prior year.

            Mr. Bissell asked when did this law change?

            Mr. Petty responded they have been changing for three years each year.  The issues which the auditor is required to audit increased considerably because of GASB 34, which came about last year.

            Mr. Ziko stated we were aware of this.  We signed the proposal.

            Mr. Petty stated the proposal you are referring to was for fixed assets and the beginning of GASB 34.  They also increased the monitoring, thereby creating a new audit section which has to be done.

            Mr. Bissell asked when was this passed?

            Mr. Petty responded it passed last year.

            Mr. Bissell stated we are referring to January 2005.

            Mr. Ziko stated there is a sentence in their proposal which states, “Our firm is well prepared to guide district management through the intricacies of GASB 34”.  This is what we are going by and they already included GASB 34.

            Mr. Petty asked when did you receive this proposal?

            Mr. Ziko responded it is dated January 25, 2005.  Therefore, GASB 34 was already in effect.

            Mr. Petty asked does this refer to your audit for Fiscal Year 2004?

            Mr. Ziko responded this is their proposal.

            Mr. Gatti asked what is the Board asking Mr. Petty to give us in order to resolve this issue?

            Mr. Petty asked are you asking for approval of a proposal which was given to you one year ago?

            Mr. Ziko responded we approved it, but Severn Trent never signed the contract or if it was signed, it was never shown to us.

            Mr. Bissell stated if we signed a contract we would not have this problem.

            Ms. Dillon stated there is a definite difference in the amount of money as well.

            Mr. Gatti stated please look into this and get us an overall picture.  I believe you understand the Board’s concern.

            Mr. Petty asked do you have in the minutes that it was approved in January?

            Mr. Ziko responded it is noted here.  It was approved in December 2004.

            Mr. Bissell stated we directed Severn Trent to negotiate a contract in January 2005.

            Mr. Ziko stated Mr. Goscicki told us we had to go through the auditor selection process, approve the one we agreed was most qualified, which we did.  We passed the motion and we never saw anything after this.

            Mr. Gatti stated please track this down and either you or Mr. Goscicki should address the issue.

            Mr. Lambert asked how long will it be before we have to get the auditors started on the process?

            Mr. Petty responded we have time.

            Mr. Ziko stated last year the audit went out three months late due to the fact that we had to prepare for the work to be done.  I do not want this to happen again.

            Mr. Cox stated I wrote a letter with regards to the 2004 Audit.

            Mr. Gatti stated Mr. Petty, please make this a priority.

            Mr. Bissell stated Mr. Cox, check to see if Severn Trent went through with our directive to negotiate the contract as of January’s Board meeting.

            Research Capacity of Facilities with Possibility of Adding Additional ERCs

            Mr. Gatti stated this item was tabled and I believe we will leave it this way for the time being.

            Mr. Lambert asked was this item on hold?

            Mr. Gatti responded yes.

            Mr. Bissell stated at the last Board meeting Mr. Lambert was going to speak to the Stella Maris Board President.  Did this take place?

            Mr. Lambert responded I had to leave before I was able to get in touch with him.

            Mr. Bissell asked should we get in touch with code enforcement and let them handle it?

            Mr. Lambert responded that is your choice.

            Mr. Bissell stated it is the Board’s choice.

            Mr. Lambert stated we can make it a choice, if we care to.

            Ms. Dillon stated we spent much time last month discussing liability issues.  We should advise them of the situation and get some sense of how they feel about this.  For the benefit of the audience, we are referring to the signs at the end of Stella Maris Drive off the tees.  One side had stakes in the ground to prevent cars from driving through, and someone from Stella Maris decided to remove them.  This situation leaves questions of easements, who owns the property as well as the possibility of considerable liability issues if someone drove through the sign and into the canal.

            Mr. Ziko asked since the roadway belongs to a Stella Maris association, what liability will we have?

            Mr. Cox responded we accepted responsibility for maintenance of the roadway, the asphalt surfaces and the drainage associated with our drainage facilities.  We do not have this liability.  However, we can assume the liability.

            Mr. Ziko asked will responsibility go to the Stella Maris HOA if something happens down there?

            Mr. Cox responded that is the likeliest scenario.

            Mr. Benson stated we do not have an easement in this section of the road.

            Mr. Lambert stated I will try to find an HOA Board member to relay this information when I return for the holidays.

            Ms. Dillon stated we should not drop this without speaking to them.

            Mr. Bissell stated I tried to discuss this with the Acting President of the Board without success.  There were signs on the other side, and the people who originally purchased the property removed them after a couple of years, and left them laying in the gutter.  I brought them to Mr. Stephens.  We have three signs noted on the development permit.  We can decide whether or not to put the signs back there, and that is the issue of liability.

            Mr. Gatti stated if we decide to do this, we are assuming the liability.  We do not have an easement there and therefore, we do not have liability.  Is that correct?

            Mr. Cox responded you have the liability to handle this in a reasonable manner, which is to notify the responsible party of your concerns.

            Mr. Gatti stated Mr. Lambert will notify the HOA.

FIFTH ORDER OF BUSINESS                               Discussion of a Public Hearing to Adopt a Resolution Setting Rules for Utility Rates

            Mr. Gatti asked do you have any information on this?

            Mr. Petty responded the earliest date you can hold this is at the January Board meeting since we must meet State requirements for publicly noticing this meeting.

            Mr. Cox stated that is the date of our actual Public Hearing and ultimately adoption of some form of a rule which we discussed at the last meeting.  When we returned from the holidays and tried to commence this process we did not have enough time between then and today to advertise because there is an additional advertisement period for the adoption of the rule.

            Mr. Ziko stated this was supposed to be done at the last meeting and Mr. Shucart asked for a one-month extension, which I would have extended to him.

            Mr. Cox stated I do not believe it was advertised for rule development.  Mr. Benson introduced the concept last month, and we were hoping to hold the Public Hearing in December.  Mr. Shucart asked for one additional month, and we then found out we did not have time to advertise it for December.  Therefore, the Public Hearing must be held in January.

            Mr. Benson stated the Board gave staff direction as to how this should proceed.  Mr. Cox, Mr. Goscicki and I worked together to decide what should be written, and we have a draft.  However, it must be advertised and voted on at a public hearing.

            Mr. Cox stated the advertisement is lined up to run for the January meeting.  We basically developed this using the same language we have always had.  We used this methodology as a matter of practice but never formalized it into a rule, which is a single-family at 1 ERC; multi-family at .8 ERC; party unit at .4 ERC; hotel room at .6 ERC; restaurants at 3.2 ERCs; and the bar, cocktail lounge and marina at .8 ERC.  We will formally adopt them for those specific uses and have the methodology of using 300 gallons per day as a single residential connection using the information provided, and the rules will determine specific usage and the number of ERCs.

            Mr. Gatti asked do you need any information from us today?

            Mr. Cox responded no.  This was informational to make you aware you are not voting on this today.

            Mr. Ziko asked can you send me a copy?

            Mr. Cox responded as soon as I review this, we will make copies available through the District Manager’s office.

            Ms. Dillon stated we will advertise the public hearing and hopefully adopt it in January.

            Mr. Petty asked was this item for the capacity rates?

            Mr. Cox responded this is for determining capacity.

            Mr. Petty stated I understand the ERC.  However, ERC is different from capacity.

            Mr. Cox stated the agenda is incorrect.

            Mr. Petty stated I was looking on the to-do list which noted consideration of evaluation of capacity at the plant which you were evaluating.

            Mr. Cox stated they got it correct in the rule ad.

            Mr. Petty stated if the engineer is specifying available capacity at the plant, this does not require a rule.

            Mr. Benson stated this was never the issue.

            Mr. Petty asked are we changing the capacity rate?

            Ms. Dillon responded we are changing the methodology.

            Mr. Petty stated I did the methodology which is why I am asking.  Is it the capacity rate or the commodity?

            Mr. Benson responded we are not changing the rates.

            Mr. Cox stated the allocation of the ERCs will remain the same, but contemplated uses are coming up for which we do not have an equivalency.  Therefore, we are adopting a methodology to determine their equivalency.

            Mr. Petty asked who is doing the rate study?

            Mr. Benson responded it is not a rate study.

            Mr. Petty stated the one which you have is a rate study.

            Mr. Benson stated I disagree.

            Mr. Petty stated there is a rate study which applies to your current rates.

            Ms. Dillon stated this is not a rate study.

            Mr. Cox stated this is the allocation of ERCs.

            Mr. Petty stated allocation of ERCs is done through an assessment methodology or adoption of a rate.  There is no other formal process which I am aware of.

            Mr. Cox stated we are not referring to allocating ERCs among properties.  For example, if we determine this property has 14 ERCs, and someone wants to build a mall within the development, we do not currently have equivalencies in our table for this type of structure.

            Mr. Petty stated all you have is a rate and methodology for assessments.  There is no such thing as a table because according to engineering standards at the time, this must be adaptable and not set by rules, and it must be adjustable to current standards.

            Mr. Cox stated the way the District is going to apply them to direct the engineer to apply them must be established by rule or it has to be done incipiem.  We prefer not to do things incipiem.

            Mr. Gatti asked do you need further direction from the Board?

            Mr. Cox responded no, we will work this out.

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

            Mr. Petty stated based on our previous conversation, I understand the Board wishes to hear back from us at the next meeting before they consider this approval.  Therefore, we will table this item.

            Mr. Ziko stated Schedule A states, “Assuming two funds, the total fee for the above-mentioned items will not exceed $14,000”, and now their proposal is $7,500 per fund.  It used to be $15,000 for two funds.  We cannot understand what Severn Trent puts in these packages, and perhaps this can be clarified at the next meeting.

            Mr. Petty stated you should speak to the auditor who is proposing this, and I have no problem with asking them either to attend a meeting by phone or in person, since they are independent of Severn Trent Services.

            Mr. Gatti stated we will table this item to the next meeting.

            Mr. Ziko asked do we have any idea who is attending the next meeting in order to get answers to these questions?

            Mr. Petty responded no one gave me the information as to who is going to attend the next meeting.

            Mr. Ziko stated we did not know who was going to attend these last two meetings, and we have not had consistency from Severn Trent Services.  Mr. Goscicki has not attended these last two meetings, which caused us much lost time and effort.  I want to get on track where we can go on an orderly basis in order to get this community back on its feet, and we are not getting much help from Severn Trent.

SEVENTH ORDER OF BUSINESS                        Staff Reports

A.                 Attorney

            Mr. Cox stated I have nothing more to report, since we covered everything previously.

            Mr. Gatti asked does the Board have any questions?

            Ms. Dillon stated we must bring up the question on the tax assessments which came up last month, for the benefit of those who were assessed for greater amounts.

            Mr. Gatti asked are you prepared to discuss this Mr. Petty?

            Mr. Petty responded yes, to a certain extent.

            Mr. Gatti stated we will discuss this when we get to the Manager’s Report.

B.                 Engineer

            Mr. Benson stated we are in the process of getting a renewal of your SFWMD comments for irrigation and potable water.  The first page is for the potable water well field.  This is the second letter I received, and I also responded to the previous letter.  We tried to ask them to utilize the information they had from previous permitting cycles with regards to computer modeling and issues in the well field, so we will not have to do this again.  The bottom line is they have one item on the list, and they are telling us we need to do the well field computer modeling.  The methodology they require for the modeling changed since the last time we did it.  I contacted a hydro geologist who our firm works with in Fort Myers and Cape Coral, and they did some work for the District in the past.  I asked them to provide a proposal and also plug the numbers in, and then I will ask them to inspect the condition of the wells, and verify the information prior to them doing the modeling in order for us to get the most benefit out of this model.  I hoped to have a proposal today, but I did not receive it.

            Mr. Gatti asked what are we looking for when the inspectors arrive?

            Mr. Benson responded they will verify the condition, depth and diameter of the casing.  There are two wells and this has not been done in many years.

            Mr. Gatti asked will they get involved in the geology?

            Mr. Benson responded they will base this on their understanding of areas which have gotten the most records for wells.  They have a directory database and do this all the time.

            Mr. Gatti asked is there a possibility we will have to drop those casings off?

            Mr. Benson responded this item was on my list for the last few years and eventually needs to be done.  We have been waiting for the right time, which is now.  There is always the potential at some point the SFWMD may take the position of not wanting us to continue with those wells.  We also discussed doing this once the existing water plant reaches its useful life over the next five to ten years.  We are going to use this opportunity to get the facts we need.

            Mr. Ziko asked will they determine a new area which will be feasible for us if we ever need new wells?

            Mr. Benson responded it is possible if we ever get to this point.  I will verify these wells have a long and useful life, and they are not going to impact the environment.

            Mr. Ziko stated if the Everglades restoration goes the way I observed, our wells can possibly be underwater, which is why I was curious whether or not an alternate area was chosen to replace these wells.

            Mr. Benson stated over the last year talked about preparing you for the possibility of relocating the wells and perhaps bringing them closer into the community in order to exert more control.  We are also in the position where they will be encouraging us to use a different aquifer along with the possibility of obtaining a new water treatment plant, which will be a large expenditure.

            Mr. Gatti stated when Mr. Lambert and I went to the initial hearing concerning this area, we pointed out the wells must be considered when they are berming this area, and they must be included within the berm.  They agreed to this on the record.

            Mr. Benson stated when the berm is on the road which you use to access the wells, I do not believe you will be cut off from your well.  However, there is a combination of issues which may make it at some point.  It may be five or ten years from now, but there are a few studies I advised you about which may come up.  Therefore, instead of doing the bare minimum with potentially questionable information, I suggest doing the work which must be done.  I will bring the proposal for the Board’s approval at the next meeting.  If it is a small amount of money which is within our normal budget, I will hire them as a sub consultant to our firm in order to keep the process moving.

            The next item is with regards to irrigation water and as we previously discussed, we evaluated historic irrigation rates and which parks and property are irrigated; what rate of water they used per month in dry and wet months and years, as part of the water use permit process and to apply the rates across the undeveloped properties and come up with the total amount of irrigation water we need to permit.  We sent this to the SFWMD.  They are telling us what I told you.  If your irrigation rate is higher than what is normally accepted, we already gave them one explanation as to how we calculated it and why both the rates and consumption are high.  They do this process for everyone who has irrigation and water supplies.  They are probably going to give us a permit for less than what we used per property in the past.  We need to educate and encourage people to comply with the Collier County ordinances, and some Board members reported in different meetings about public areas being irrigated, and hours and days they are not supposed to.  We need to tighten up our irrigation water use.  I will negotiate the best possible deal.  There is only so much they will give us per area which will be in the permit, and we will have to move forward with tightening up our systems, and the use of irrigation water.

            The answer to the question on the second item is yes.  This person should know about this since he is also the same person who signed the previous letter which was in the submittal.

            Item three is basically the same as item one in the first letter which states they need more information about our well field because we told them we are going to use the excess capacity from the well field during periods when you have salient water and want to blend reuse water and excess well water with the water from the canal in order to get it to where it is not salty for irrigation.  Since this was a 90-day letter we received November 30th, we have time.  Therefore, I will bring this back to the Board.

            Ms. Dillon stated in the first letter on irrigation and potable water, it seems they are concerned about us taking anymore water from the well.  They are saying they want to give us a finite amount of water.

            Mr. Benson stated withdrawal from the well cannot impact a series of issues.  One issue involves other users.  For example, if you take more water out of your well, this may potentially impact a neighbor who has a well.  The other issue, which is even more critical is impact on the environment and its wetlands.  Our wells are in the middle of wetlands.  Therefore, we are definitely being watched.  Aerial photographs of the well field and wetlands do not show visual impacts on these wells.  We will initially meet the requirements since there is one way out which is monitoring, and we do not monitor our draw downs adequately to update it this way.  We must do this through computer models.  However, they are concerned that if it impacts the environment, it will impact people.

            The new water line was installed.  We are waiting for the Orchid Cove developer to do the next portion.  A couple of weeks ago, I got a call from the Orchid Cove engineer.  They are using the same contractor POI used for the water line installation.  Therefore, the same contractor is going to extend the line through Orchid Cove at their cost.  In order to ensure we are coordinated, I told him to get in touch with Mr. Stephens and Mr. Joe Goetz, who is the engineer for the project.  I believe it is beneficial they are using the same contractor, as there is less chance of them doing something which does not fit together.  We are going to install the meters, and I spoke with Mr. Stephens earlier this week about the meters, and he is aware he has to have enough meters on hand for the contractor installing them.  We previously spoke to the contractor many months ago, and he agreed to install the new meters instead of re-hooking the old ones at no additional cost.

            Mr. Gatti stated I am concerned with the fact that people in the community are running other facilities off of the irrigation meters.  How do we guarantee they are going to hook up to the right meter?

            Mr. Benson responded Mr. Stephens must be involved with contractors and they are aware he is the contact person.  If something like this occurs, they will shut off the valve going through the meter which is supposed to be the potable water supply.  If there is no water in the house, they know it is the right meter.  They are going to get irrigation water from the meter they are paying for at a lower rate for irrigation water.  However, at some point it becomes the homeowner’s responsibility of what they do with their own plumbing.

            Mr. Gatti stated when this work is done in my area, I am going to turn the potable water off before I let them hook it up.  However, I want a guarantee this is addressed throughout the community.

            Mr. Benson stated Mr. Stephens must be involved because he is your utility operator.

            Mr. Ziko stated I believe liability commences when it comes out of the meter.  We are responsible for everything up to the meter, but after it comes out of the meter, it becomes the homeowner’s responsibility.

            Mr. Gatti stated it is our responsibility if it is hooked up to the wrong meter.  Can you look at your meter and tell the difference between potable water and irrigation water?

            Mr. Ziko responded yes, because they are color coded.

            Mr. Cox stated they are not color coded in Mr. Gatti’s section.

            Mr. Benson stated they have to shut off the water and see if it shuts off the water inside the house.

            Mr. Petty stated you are responsible for the consumer’s tap for potable water quality.  If the consumer has done a cross connection, they may be culpable but as a utility you are responsible for having quality water to meet the State’s standards at the tap.  We will take our bacteriological tests at that house to meet the test, which makes you liable.  The rule for other dual distribution systems in Collier County is the irrigation system is turned off when it is installed and it is locked.  Only a licensed operator such as Mr. Stephens can unlock it, and he certifies it is connected to a non-potable system.  He checks the connection and he will unlock it, but a homeowner or contractor cannot be allowed to do this nor can you give them this responsibility because they do not carry the license.

            Mr. Gatti stated I want to ensure this is looked into because we may have potential problems.

            Mr. Cox stated we should send the notice to homeowners via certified mail, and we need to be clear that if anyone is interconnected, their systems are using the irrigation system for potable water.

            Mr. Gatti stated I know of some homes which are interconnected.

            The Newport Cay roadway where the irrigation operation is taking place is being torn up.  Do you have all the plans and specifications ready to go for resurfacing?

            Mr. Benson responded that is correct.  Once this project is done we will let everything settle, and we are then going to come back and resurface the roadway.

            Mr. Gatti stated next summer will be a good time to do this.

            Mr. Benson stated we can choose a good time for the community to do this work with regards to spending the money and getting a contractor, but we have everything ready.

            Mr. Gatti stated the prices on all petroleum-related products are continuing to increase.

            Mr. Benson stated I am concerned, and we have discussed this in the past.  Every time I give you an estimate on the project, the price increases.

            Mr. Gatti asked will it make sense to sign the contract now?

            Mr. Benson responded this is hard to say.  Perhaps it has been a slow-down as to how fast it has increased.

            Mr. Bissell asked can they put a contingency in their contract that the price of materials increased?

            Mr. Gatti responded this is a possibility.

            Mr. Benson stated perhaps we should discuss this again in the next two months.

            Mr. Gatti stated I agree with your plan on letting the roadway settle before we resurface.

C.                 Manager

            Mr. Petty stated with regards to your question on the assessments of the 32 units at Sunrise Cay Villas, I believe Mr. Goscicki sent emails to some Board members explaining the issue, which I can convey to you.  Your assessments were done by hand for many years because of POI’s special requirements, and its assessment.  Last year’s 2005 assessments had a small error on those 32 units, where they were charged an ERU factor of .8, when their actual ERU factor was 1.  This amounted to a $2,028 difference, which is the difference between last year and this year.

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

            Mr. Ziko responded the problem is not the fact that the assessments have to be redone, but we have buildings down here which have .8 and other units which have different assessments.  There are three different assessments in one of the buildings, and Severn Trent Services does the assessments.  I have two different tax bill amounts for the same building.

            Mr. Petty stated if they prepaid there will be a difference.  POI residents have the option of pre-paying all or a portion of their taxes at one time, and this was taken advantage of by quite a number of people, and is one of the unique issues concerning POI.  Therefore, they can be different in the same condominium, or subdivision if the unit was pre-paid by the current or prior owner.

            Mr. Ziko stated the people I spoke to own the same unit, of which one is $1,653 and the other is $1,279.  This did not make any sense to us, which is why we asked for an explanation.  However, I am still not satisfied with your explanation.

            Mr. Petty stated the explanation I gave referred to Sunset Cay Villas.  Is this a new issue?

            Mr. Ziko responded this is not new.

            Mr. Petty asked did you raise this issue at the last meeting and ask for it to be addressed?

            Mr. Ziko responded yes.

            Mr. Petty stated this was not conveyed to me by Mr. Goscicki.

            Mr. Ziko stated this is where we have a loss of communication with Severn Trent.  We must discuss this and get it corrected.

            Mr. Lambert asked did Severn Trent bring the proper explanation to this meeting as Mr. Goscicki stated?

            Mr. Ziko responded I do not believe so.

            Ms. Dillon stated the facts are not here.  Were you also impacted?

            A resident responded yes.

            Mr. Petty asked at which development did this occur?

            Ms. Dillon responded this occurred at Sunset Lakes.

            A resident stated I specifically asked the question and Mr. Gatti said he would have an answer for me at this meeting and that they would have a representative explain the finances.  Last year I paid $1,081, and this year I paid $1,279.

            Mr. Petty stated I cannot answer this question since I was not in attendance at the last meeting.

            A resident stated an answer was promised to us.

            Mr. Gatti stated I apologize to the audience for not having the answer.  Do you understand our dilemma?

            Mr. Petty responded you may have a deep