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, March 10, 2006 at 10:00 a.m. in the Egret Room, 25000 Tamiami Trail, Naples, Florida.

            Present and constituting a quorum were:

 

            Richard Gatti                                                    Chairman

            Ted Bissell                                                        Assistant Secretary

            Norine Dillon                                                    Assistant Secretary

            Richard Ziko                                                    Assistant Secretary

 

 

            Also present were:

 

            Edward Goscicki                                              District Manager

            Dan Cox                                                          Attorney

            Ron Benson                                                      Engineer

            Bob Dick                                                         Severn Trent Services

            Tom Mack                                                       Staff

            James Shucart                                                  POI Hotel & Marina

            Craig Wrathell                                                  Wrathell, Hart, Hunt & Associates

            George Bogeny                                                Naples Fire Department

            George Cramer                                                Resident

 

FIRST ORDER OF BUSINESS                               Roll Call

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

 

SECOND ORDER OF BUSINESS                          Evaluation and Ranking of RFPs for Operation and Maintenance of Water and Wastewater Facilities

            Mr. Gatti asked how does the Board want to handle this?

            Ms. Dillon responded I understand from Mr. Cox we do not have to go through this evaluation ranking form which we have to use for a management company.  Since only two firms are bidding on the contract, I am in favor of the Board making a decision and voting in order to start the process.

            Mr. Ziko stated I agree.

            Mr. Gatti asked should we note on a piece of paper who we individually believe should be hired as opposed to discussing the evaluation?

            Mr. Ziko responded I believe we can do this with a roll call vote.

            Mr. Cox stated since this is for the operation and maintenance of the plant, there should be some discussion on the basis of your decision.

            Mr. Gatti stated I am not sure exactly how this is done.  Someone makes a motion to hire a firm.  The motion is seconded, and we vote on it.  The results of the vote will be evaluated.  How are we going to balance this out?

            Mr. Cox responded we always discuss the motion after we put the motion on the table.

            Mr. Gatti stated I will entertain a motion to direct the agency which is selected to proceed on this basis.

Ms. Dillon moved to approve Severn Trent Services Inc. to take over operation and maintenance of the Port of the Islands Community Improvement District’s Water and Wastewater Facilities and to direct Mr. Cox to draft an agreement and Mr. Ziko seconded the motion.

 

 

On Roll Call vote.

Mr. Gatti voted aye for Severn Trent Services, Inc.

Mr. Ziko voted aye for Severn Trent Services, Inc.

Ms. Dillon voted aye for Severn Trent Services, Inc.

Mr. Bissell voted aye for Severn Trent Services, Inc.

 

Mr. Goscicki stated we have a 4-0 vote in favor of Severn Trent Services, Inc.

            Mr. Cox responded we will bring a contract with Severn Trent to the next meeting for the Board’s consideration, which lays out all the final terms.  This is when the discussion will take place.

            Mr. Gatti stated we will negotiate a price since we selected a firm.

            Mr. Cox stated the RFP for operations includes the price component.  The management RFQs is where we discuss ranking so you negotiate the price with the top-ranked firm.

            Mr. Gatti stated we rank the person.

            Mr. Cox stated this is with management, not operations.

            Mr. Goscicki stated for clarification, Severn Trent submitted a price proposal.  We submitted a draft contract which laid out our understanding of the scope of work.  We will now sit down based on this direction from the Board along with Mr. Cox and Mr. Benson, and discuss the proposal which may include additions or deletions depending on the final outcome of those discussions and this is what will come back to this Board for consideration.

            Mr. Ziko asked is there any direction to Mr. Cox which can possibly be included when he is making up the contract since a couple of items were not included?

            Mr. Gatti responded we will negotiate the contract.

            Mr. Ziko stated if it is not in the contract prior to it getting here, we will need the inclusion of a maintenance person who will work at POI to upkeep with our infrastructure, such as Stop signs among other things, and that this person leaves the plant and actually physically does some work around the District to keep it in shape.  That is not in this contract.

            Mr. Gatti stated please give us some guidance Mr. Cox.  We are going to review the contract and adjust it to our needs.  We already accepted who the most qualified is.  Now we are going to enter into a contract.  As I understand we will negotiate the contract which includes final price as well as the scope of work.

            Mr. Cox stated you are correct within the parameters of what you put out.  If there are additional items you want to add to the scope of work they will be negotiated.

            Mr. Gatti asked is discussion necessary now?

            Mr. Cox responded if there are specific items you want to me to negotiate or if you want to send me a memo of what you think needs to be in there when we present the contract at the next meeting I can include those issues.

            Ms. Dillon stated we can do both.  Since we are all together we discuss and come to an agreement on some issues right now.

            Mr. Ziko stated I would like you to look into this future years’ price adjustment because this follows a pattern that if we had another 100 units to the water plant we are going to get charged for it; 100 more people coming on line does not directly affect major cost the way it shows in here.  It may affect a few more chemicals and meters, but it should not be based on a percentage increase.  CPI would be a better thing to base the future increases on.

            Mr. Cox stated Mr. Benson is not here and he should really address this, but as I understand there are thresholds under the permit which trigger additional staffing and monitoring requirements which can bring an incremental increase.

            Mr. Ziko stated I understand and discussed this with Mr. Dick over the past week, and our plant will have to double its capacity of water outlay in order to meet staffing requirements.  Therefore, I believe we should address how we are going to have these increases on a yearly basis in the contract.

            Mr. Gatti stated I would like for us to follow Mr. Ziko’s thinking.  Since you are obviously making a list of items which should be included in the contract, I would like for us to go around the table and voice our various concerns which we should consider.

            Mr. Bissell stated mosquito control is listed here.

            Mr. Gatti asked is there a price proposal for mosquito control included?

            Mr. Goscicki responded yes.

            Mr. Gatti asked what else do you have?

            Mr. Bissell asked will this be two full-time personnel and one hourly worker?

            Mr. Gatti responded in any activity which we direct to Severn Trent, the reason we are picking a consultant is to get out of the operation of these activities.  It is our job to overview whether or not they do the job correctly and to give them a level of work effort as well as the end product which we expect, but it is not our job to tell them how many people they should use.  If they do not get to the end product, then we step into the picture.

            Mr. Ziko stated I do not want to micro manage the plant, I just want to ensure it is run according to the State Statutes.  If they can run this plant as well the plant in Golden Gate is run, I will be happy.

            Mr. Gatti stated I agree with you and it does not conflict with anything else.  However, we have to stop micromanaging staff.  If a staff member is not doing their job, we should tell them what level of effort we expect in mosquito control or any other activity we handle.

            Ms. Dillon stated since the contract is going to Severn Trent, the Board does not really care how many people work at the plant, as long as the job is getting done as specified.  However, I agree with Mr. Ziko.  I would like something in there about a handyman for lack of a better term, or some definition of these ancillary projects which may not be directly related to running the plant, but are part of the community such as preparing signs and other small projects which we do not seem to be able to get done.

            Mr. Gatti stated when we enter into the contract I believe what you are saying is to maintain the CID properties in the community.  Properties is probably the wrong word.  I meant to say facilities.

            Ms. Dillon stated this may take some direction from the Board in the sense that we noticed something which needs to be done.

            Mr. Gatti stated this is where we cut off.

            Mr. Ziko stated we do not care who does it, but we want it done in a timely fashion.

            Mr. Gatti stated we should include this in our contract and Severn Trent is going to do it for us and tell us what it is going to cost.

            Ms. Dillon stated I do not completely understand what is included in the ‘outside services’ item.  The proposed amount is $65,000.  Can you elaborate?

            Mr. Gatti stated if the Board decides to look at certain activities above and beyond what is normally considered, they will come back to us.  For example, we had a meeting a couple of days which no one knew of, and we want Mr. Benson or the management to look into what is happening with the government in terms of putting these berms in.  No one has any idea what it is.  Therefore, it is going to have to be investigated.  If we direct the management to do this, we have to pay them for it.

            Mr. Goscicki stated the O&M side is typically subcontracted services.  We cannot do everything with our own internal forces to take on some of the heavy maintenance among other things.  Therefore, we would use this line item for outside contractors.

            Mr. Gatti stated they will come back to the Board, tell us what they have to do and what it is going to cost.

            Mr. Goscicki stated the purpose of the breakdown is to show how the costs were spread by us internally when we looked at it.  The contract itself is a lump sum dollar amount.

            Ms. Dillon asked will you come to the Board with regards to anything over the proposed amounts?

            Mr. Gatti responded they will come to the Board for anything which will be of any significance, even though it is included.  Is this correct?

            Mr. Goscicki responded we take a great deal of risk on this.  We are entering into a lump sum contract and we take the risk of operating within the specific dollar amount, of which there are some exclusions.  We create a maintenance budget with an agreed upon dollar amount.  If we spend less, we give it back to you, if we need to spend more we come to you for authorization to spend more.

            Mr. Gatti asked is this acceptable?

            Mr. Cox responded yes.

            Ms. Dillon stated the price proposal showed an annual amount of $337,800.  The data of the total cost which you gave us at our request is going to be considerably more than this.  Can you give me a ballpark figure as to where this extra money is?

            Mr. Ziko responded it is in this renewal and replacement which is obviously not part of the contract, and probably will be discussed with the Board if renewal and replacement were necessary along with Mr. Benson to do work in the community.

            Mr. Cox stated items which are outside of the lump sum which Mr. Goscicki was talking about refer to expenditures which exceeded the thresholds as well as your purchasing policy, and they come back to the Board for review.  This was for various items which are going to have to be replaced over the course of the year due to normal wear and tear.  Although we know about this, we still have to get approval for those items.

            Mr. Ziko asked are you going to negotiate this proposal which was put forward with Severn Trent at the same time?  Will this number change?

            Mr. Cox responded the lump sum contract will not change unless there are additional services which you request.  If this happens, you will have to do change orders.

            Mr. Ziko stated since I do not believe the repairman was included, the lump sum value is going to change.

            Mr. Cox stated we will negotiate the initial contract, which is based on this scope of work.  You will have to do a change order for the additional things which you are bringing up.  These change orders will have to be approved by the Board.

            Mr. Gatti stated our focus now is to include whatever we want in the contract now.

            Mr. Ziko stated Mr. Bissell made a good point with regards to mosquito spraying.  I do not believe this is defined in this contract either.

            Ms. Dillon stated it is on the form.

            Mr. Ziko stated this form does not mean anything.

            Mr. Cox stated I believe the RFQ had definitions of the expectations for mosquito spraying.

            Mr. Gatti stated pricing was also indicated in the proposal for mosquito control.  I want to include names of specific staff members in the contract who will be assigned to this project.  Is this reasonable?

            Mr. Goscicki responded we can obviously give you the initial names of people who will be handling this.

            Mr. Gatti stated I want to see both yours and Mr. Dick’s names in here.

            Mr. Goscicki stated this is not a problem.  We can certainly show you the staffing plan and team members who will be involved.

            Mr. Gatti stated with those changes to the Board, we will proceed with contract negotiations with Severn Trent.

            Mr. Goscicki stated I wanted to thank you for your vote of confidence in our operating services side and appreciate it.

            Ms. Dillon stated I visited a plant being run by Severn Trent under Mr. Dick’s supervision, and it makes ours look like Beirut.  I was impressed with the way it is managed and kept.  They service many households, and do not seem to have any problems.  In addition, the people who work there seem genuinely happy and proud of their surroundings.  I believe all of us feel this plant needs this kind of TLC.

            Mr. Gatti stated this aspect of the contract is updated.

            Mr. Goscicki stated I always like getting these comments on the record.

            Mr. Gatti stated Mr. Cox will explain the next aspect of this process.

            Mr. Cox stated the management proposal you received is strictly qualifications-based, and not on cost to the District.  We will ask you to rank the firms who presented to you at the last meeting in order of preference which you want me to negotiate the contract for management services.  Although this is not required by Statute, there is a Statute for a provision for consultant negotiations and retention of the consultants who provided this good framework to do it under.  In the past, this District was operated on a small budget, and was unable to afford the levels of services it may have wanted from the management staff.  Since we are operating on a considerably better financial picture, we left it open for you to negotiate the specific level of services which you are looking for with the management team.

            Mr. Gatti stated we have all made an evaluation of who we think it should be.  How do we want to handle this?  Do you want to add up the score and go from there; discuss it; use this score as the datum from which we are going to make a decision;  or is the scoring just a guideline?

            Mr. Ziko responded you created this matrix along with four questions, which I do not like.  They do not relate to what I expect to glean out of these proposals because two of them are based on geographical proximity to the plant, which will not enter into my rating of one of these companies.

            Mr. Cox stated not only are you ranking five individual questions, you are also going to evaluate those questions and determine which questions are most important to you.  Familiarity with the District as a general rule and how Chapter 190 Districts operate will be much more important to you than proximity to the District.  Although the criteria is not equally weighted, there is going to be some flexibility on which ones you believe are relative.

            Mr. Ziko stated I agree with what you are saying, but I do not agree with any of these questions.

            Mr. Gatti asked what is the best way to handle this?

            Ms. Dillon responded I also want to comment on the fact that I received this form on Tuesday, and I do not believe I had adequate time to make a decision.  Since this is an important decision I am not prepared today to do this ranking.  I have a couple of other questions.  I have a difficult time deciding this without dollars.  No matter who you pick, cost has to be a factor.  Although I am not going to go with the cheapest firm, if one outfit is considerably more money than that other, this is a factor.

            Mr. Cox stated this is a factor for you to consider.  Once we negotiate the level services you are looking for and we have the price the number one ranked firm is willing to do this for, we bring it back for your ultimate approval.  If you are dissatisfied with the price, you can try to negotiate with them, but if they finally tell you they cannot reduce the price, you may direct me to negotiate with the number two ranked firm.

            Ms. Dillon stated they have not submitted dollar amounts yet.

            Mr. Cox stated that is correct.

            Ms. Dillon stated this can go on for a long time.

            Mr. Ziko stated it does not seem fair to me to rank these firms.  We could be all over the scope on price, and price is a very important part of ranking.

            Mr. Cox stated this is the reason it is the ultimate factor which you will consider in making your decision.  You are looking for the most highly qualified firm capable of providing the level of services you want, and this is the ultimate goal in hiring someone who is as important as your management team.

            Mr. Ziko stated I agree with you, but running the plant is also important, and we had price proposals from both companies who submitted bids.  Can we get price proposals from these firms?

            Mr. Cox responded there are certain costs which are going to be incurred with running a plant.  You know what the required levels of services are to operate a wastewater treatment facility, and everything must be done in accordance with statutes and limitations of the permit.  The level of service is fairly well defined.  Where you are going to management and looking for the broader ranges of levels of service, the price needs to be secondary in order for you to ensure you are getting what you want from your management team.  Asking for a price-based proposal without having the level of service truly defined raises a wide range of issues.

            Ms. Dillon stated I noticed some of these gentlemen are in attendance, and to their chagrin we are probably not going to make a decision today.  This question is directed to Mr. Wrathell.  Since an outside firm will be running the plant, and we decide we do not have the same people as our management company, how do you see the interface?

            Mr. Wrathell responded your description today actually helped us clarify what our goal will be from an oversight perspective for an active operations manager.  The district manager will handle the accounting and all other financial components, and a hypothetical organizational chart will be structured from a staffing perspective as follows:  the community, the Board, the district manager and Severn Trent as both the operations and plant manager.  Many of our districts have an administrative and financial component in running a district from the general oversight of operations, and is actually sitting in the seat which you described of being the operations manager for the district.  From what I have gleaned from the discussions, Severn Trent will fill the operations manager role, and the district manager will have more of an oversight role over those two functions.

            Ms. Dillon asked if we select someone else to be the management company, will your interface be conducive to a friendly atmosphere?

            Mr. Goscicki responded we currently have these relationships.  As a matter of fact, we are the contract operator one of the districts managed by Special District Services.  We operate the Beeline Water and Wastewater Facilities under a contract to the district, and Special District Services is the contract manager.  We are comfortable working in this type of relationship.  Obviously, we believe there are advantages to you if we handle both areas.

            Mr. Cox stated Mr. Ziko indicated there were other criteria he felt should be evaluated, which the Board may want to discuss.

            Mr. Gatti stated following up on what Mr. Ziko said it is possible other Board members want to see some specific questions as part of the evaluation.  Will it be appropriate for us to write this down and ask you to consider this as part of our next level of looking at this?

            Mr. Cox responded you can write them down and send them to me, and I will revise the evaluation sheets.  However, if you raise issues not addressed in the RFQ, we will need to circulate it to each respondent.

            Mr. Gatti stated if we try to do this today, it is going to be difficult to come to a consensus.  On the other hand, perhaps we can write down our individual questions, sit down as a Board and determine what we want to include.  We may disagree on what is or is not important, but we can go through that list, knock out what we do not want, and proceed with our own matrix.  Does this make sense?

            Mr. Cox responded I am trying to understand the timing of what you are asking for.  We cannot go back and forth on this.  We will do as you asked and finalize your evaluation sheet at the next meeting.

            Mr. Gatti stated we can make this evaluation and come to a decision.

            Mr. Goscicki stated representatives of all four firms are in attendance today.  Therefore, if any Board members have specific questions of those individuals, it will be a good use of their time to address them.  This is appropriate and it will not hurt the process either.

            Mr. Gatti stated we have been through this and we should have asked all our questions when this was submitted.  We are going to look at this and come up with specific items we want to see in this evaluation.  We will go through them during the first part of the next meeting, and with this criteria we will make a decision and move forward.  Will adding up these numbers control who we select?  Are you satisfied with this?

            Mr. Bissell responded not necessarily.  Are we going to hire the firm with the most points?

            Mr. Gatti responded we are going to negotiate with the firm.  If we are not happy with their price, we will negotiate with the next firm.

            Mr. Cox stated this is the way the process is done.

            Mr. Ziko asked do we have to use the evaluation sheets?

            Mr. Gatti responded no.

            Mr. Ziko asked is there any state statute which indicates we have to come up with a number?

            Mr. Cox responded there is no state statute specifically governing how you hire a management team.  I used this model for convenience because it is a well used and tested methodology for ranking these firms and trying to give you focus on making your decision based on notable criteria.

            Mr. Ziko stated we had four presentations and brochures, and I believe can digest these things myself without having to put down a second grade evaluation sheet to come up with who I believe we should negotiate with.  I do not believe this is necessary for me.  However, the rest of the Board may use this if they so choose.

            Mr. Cox stated this is a tool for the Board to focus on criteria for making your selection.

            Mr. Gatti stated I want to know how we come to a conclusion.  You are stating what you want to see.  How do we accumulate this as a consensus without putting something down?

            Mr. Goscicki responded I believe there are two issues for consideration.  You have a rating and ranking form which identifies a number of criteria to determine in what numerical order each firm should be ranked.  Each of you, as Mr. Cox pointed out, are free to use the form in terms of what criteria you believe to be most important.  When it comes to making the final decision, each of you is going to come up with a ranking in numerical order, and those are the rankings you are going to add up.  You are not going to add up the points which you assign to each category, but you are going to come up with a ranking which says this firm got three #1 rankings; firm two only got two #1 rankings.  This is our #1 ranked firm and this is our #2 ranked firm.

            Mr. Gatti stated if the Board satisfied we will proceed on this basis.

            Mr. Cox stated it was my understanding at the last meeting you wanted representatives in attendance in the event of additional questions.  However, you do not foresee additional questions for the applicants, they do not need to be here.  Therefore, we are going to rank and notify them of our decision at the next meeting.

            Mr. Gatti stated we can continue to discuss this and never come to a conclusion.

            Ms. Dillon asked is it fair to ask the representatives of the firms today if they have any additional comments?

            Mr. Gatti responded it is not fair because we asked for this.  We received responses and it is not appropriate to open this up again.  Does anyone feel differently?

            A resident responded for clarification, the Board is looking to identify the questions or criteria for evaluation.  There will not be questions after hearing the presentations.  The questions will be distributed for each firm to respond to.

            Mr. Gatti stated as part of our negotiations with the #1 firm which we ranked, any questions we have will be directed to the selected firm, and you can ask questions, clarify any contract you are going to enter into, and we are still in control of what is going to happen.

            Mr. Cox stated if you tell me over the next couple of weeks there are additional criteria you want on the ranking sheet, I will look at those criteria, and if there is something which is not addressed in the RFQ, I either have to leave it off the ranking sheet or I have to give everyone an opportunity to give a written response.

            Mr. Gatti stated as far as the Board is concerned if you believe there is something necessary to include, we are not telling you we will not put this in.  However, we want to ensure we are covering all bases when we consider this evaluation.

            Mr. Goscicki stated none of these gentlemen will leave out of respect to this Board unless you give them permission to do so.

            Mr. Gatti stated we understand this, and there is no need for you gentlemen to stay, although you are welcomed  to stay.

 

FOURTH ORDER OF BUSINESS              Acceptance of 2004 Audit

            Mr. Goscicki stated I realize this is late.  There were a number of issues which involved the 2005 audit in terms of the final settlement which were not reflected.  The issues involved clarification they were trying to go through before they can get this audit finalized.

            Mr. Gatti asked does the Board want to go into detail or should we take our time, read it and develop questions since we just received it?

            Ms. Dillon responded this is an historical document, and has no basis for today’s reality because it was done when the District was not in good shape.  However, I spoke to Mr. Cox before the meeting, and he clarified some issues for me.  Therefore, I do not believe we should continue to discuss this matter.

            Mr. Ziko stated I want to know if this make us conform to State Statutes, and if it is acceptable.  Since we are not going to change anything, we might as well accept it as long as the State is not going to penalize us.

            Mr. Cox stated this is strictly an historical document with a snapshot view of where you were on September 30, 2004, which is nowhere near where you were on September 30, 2005.  There are two to three key issues you may want to focus on within the audit, but it is nothing more than a picture.  We are asking you to accept the audit.  You are not saying you agree with any of the conclusions or believe it is pertinent.  It is just you accepted the auditor’s presentation of this document in order for us to transmit it and keep you in compliance with the State.

 

On MOTION by Mr. Bissell seconded by Mr. Ziko with all in favor the 2004 Audit was accepted.

 

            Mr. Cox stated I want to mention a few issues you should be aware of when you are looking at the first couple of pages of the audit.  On Page 1 is the Independent Auditor’s Report, which describes the audit was conducted in accordance with GASB standards.  The paragraph near the end states the financial statements referred to in this audit accurately reflect the District’s activities, and are done in accordance with accounting principles as accepted by the United States of America.  Page 38 includes the report on compliance, and in the next to last paragraph they stated statistical tests were conducted to check the actual transactions, and the results of the tests discovered no instances of non-compliance.  The fourth paragraph on Page 43 above the signature line describes certain items which must be disclosed as of September 30, 2004, of which there were none.  However, next year’s audit should look better.

            Ms. Dillon asked when can we expect this?

            Mr. Goscicki responded they started the new audit for 2005 within the last month.  Therefore, it will be a couple of months before we see it.  I will be remiss in not bringing up to the Board the audit firm asked for additional compensation for the 2004 audit.  I told them they need to convince me why this is the case.  Perhaps the complexity of the financial situation of where the Board was in 2004, along with the status of funds was their justification, which I do not agree with.  I received the invoice for an additional $7,000, but I have not received the justification for this compensation.

            Mr. Ziko asked was this a contract?

            Mr. Goscicki responded this was a contract, and the Board owes nothing unless it is approved.  They did this in the previous year, and the Board did not approve additional compensation for the audit firm.  I believe since they gave us a price based upon certain assumptions, they must show me as these were the assumptions we made going into the audit.  We found the situation markedly different, which resulted in additional cost, and I believe we are obligated to review this.

            Mr. Ziko stated as far as I am concerned, they did not do the audit in a timely fashion either.  Since this is one year late, why should we give them more money when they were unable to live up to the contract?

            Mr. Goscicki responded I just wanted to make you aware of their request.

 

FIFTH ORDER OF BUSINESS                               Discussion of Open Items

            Equipment Inventory

            Mr. Dick stated this item is complete.  I will provide the Board with copies of the inventory.

            Mr. Goscicki stated the Board will recall we already submitted the more substantial list which included all fixed assets within the plant, along with the rolling stock.  These were the smaller items which supplemented them.

            Mr. Ziko asked if the swamp buggy is left on our property for 30 days does it become ours?

            Mr. Dick responded yes.

            Mr. Cox stated part of the development agreement to redevelop this property states off road vehicle access is prohibited.

            Ms. Dillon stated it is illegally parked.

            Mr. Ziko asked when is this going to be removed?

            Mr. Dick responded when Mr. Stephens was instructed to remove it he told me he has a friend who will allow him to store it.  However, they are out of town and he cannot take it there until they return, which is supposed to happen this weekend.  If it is still there on Monday, I will consider having it towed.

            Mr. Bissell asked did they purchase a computer?

            Mr. Goscicki responded it was purchased last year because Mr. Stephens’ computer stopped working.

            Mr. Bissell stated they have a 2003 here.

            Mr. Dick asked was it purchased in 2003?

            Mr. Bissell responded it says 103HS Computer.

            Ms. Dillon asked did we buy a new 03?

            Mr. Goscicki responded we purchased a new computer through Severn Trent to expedite the process.  We may have purchased the box itself and not the monitor and everything else, and it may just be carrying the old date.

            Mr. Bissell asked what did we purchase from Office Max?

            Mr. Dick responded it was a combination of office supplies and printer cartridges, and was not one item.

            Reuse Water for Irrigation

            Mr. Benson stated another contractor declined to provide us a price for installation of the pre-purchased equipment.  The Board gave me permission to ask Severn Trent to put together a price.  We called yesterday and they are still working on it.  We told them we needed it today, but they told us they will get it by Monday.  Therefore, it will have to be resolved next month.

            Fire Station

            Mr. Ziko asked do you have an update?

            Mr. Mack responded there is nothing new to report.

            Entrance Monuments

            Mr. Cox stated Mr. Dick gave me additional information to help us get the easements in place.

            Mr. Ziko asked which easements do we need?

            Mr. Cox responded one sign is located on the hotel property, and the two signs at the Cays are actually located partially on private property.

            Mr. Ziko asked did we have easements on those properties initially?

            Mr. Cox responded nothing is recorded in the public record.  However, the actual platted easements are where I believe they expected those signs to have been built, but there is some argument as to occupancy over time.  However, I believe they have been there for at least 25 years, but we can negotiate.

            Mr. Ziko asked what about the one on Union Road?

            Mr. Cox responded we actually own the property which it is located on, and we also own the property where the second sign is located.

            Truck Decals

            Mr. Goscicki stated there is some positive news on the signage.

            Mr. Dick stated we have the vehicle signs on all the trucks.

            Portable Generator for Sewage Lift Stations

            Mr. Benson stated this was completed last month.

            DEP Letter – Compliance Inspection Report

            Mr. Benson stated one of the items we discussed approximately two weeks ago was the fact that the generator at the well field was installed, the final watering was being done, and Mr. Stephens sent me an email a couple of days ago telling me the fuel is being delivered for testing.  We will send a letter to DEP as soon as we verify it is working.

            Everglades Restoration

            Mr. Ziko stated Mr. Gatti explained we were blindsided here when the office for the restoration called a meeting on Wednesday and never informed anyone from the CID.  I tried to reach Ms. Starnes to find out why we were not informed.  I have been talking to her on a monthly basis, but she is on vacation.  Therefore, someone in her office decided to have a meeting without informing anyone.  I believe the meeting consisted of five people.  I am disappointed in the way this is being handled, and I will talk to Ms. Starnes as soon as I can get in touch with her.

            Ms. Dillon stated I attended the meeting and received a handout.  They are still working on the project and expect to install the pumps within a couple of months.  I told them Mr. Ziko is our point man, and in the future if they wanted to have a meeting here to explain what is going on, they should tie it into one of our Board meetings.

            Mr. Mack asked did she mention there will be another meeting on March 16th?

            Ms. Dillon responded the meeting you are referring to is open to the public.  It will be at the Golden Gate Community Center starting at 5:00 p.m., and it is a just a public meeting about what is going on with the Everglades restoration.  This meeting was for POI residents only, but no one knew about it.

            Mr. Cox asked what will they discuss?

            Ms. Dillon responded at this meeting they mentioned they did not believe we needed berms south of Route 41 at this time, and the only berms they needed north of Route 41 were on the east side of the gun club, but we are not entirely sure.  We spoke about the berms again and the fact that any plans to put berms in would have to be discussed.  When do you think this will be done?

            Mr. Mack responded it will be done this year.

            Port of the Islands Mosquito Control

            Mr. Goscicki stated I believe you closed this item with the decision this will be part of Severn Trent’s responsibilities as your contract operator to take this on and get it done.

            Mr. Ziko stated Mr. Cox is working on this contract, and it has not been signed.  Can we get a confirmation from Severn Trent if the mosquito season comes before the contract is signed, something will be done?

            Mr. Goscicki responded yes.

Proposal for Operation of Water & Wastewater Facilities

            Mr. Ziko stated this should come off the list.

            Discrepancy Between Gallons of Water Pumped and Gallons Billed

            Mr. Goscicki stated we are going to take interim measures on our own without any call from the District.  We have a portable flow meter which we are going to set up at the water plant, take some instantaneous readings over the evening hours when there should be little or no flow going to any users, and check this for a period of time to confirm whether or not there is some consumption.  At the same time, we are putting a price together for two people to come out.  We pulled together an inventory of the physical addresses for all the meters, and our initial proposal calls for us to physically perform a check of each meter to each location, ensure it is connected and each occupied dwelling unit has a meter associated with it.  We are going to attempt to physically check on each meter by knocking on the doors in order to allow the property owners on site to turn the hose bib on to see if the water flows through the meter and make sure it is actually hooked up and working.

            Mr. Ziko stated before we went this far down the line on an individual basis, we have two major areas on the east side and the west side, where meters will be installed to determine if there is a big discrepancy between the west side or east side billing, rather than trying to chase down every house.

            Mr. Cox asked are you going to meter a 6” or an 8” meter?

            Mr. Benson responded this is a fairly expense meter which may cost thousands of dollars.

            Mr. Dick stated the rule is $1,000 per inch.

            Mr. Benson stated it can be done, but will be costly to install.

            Mr. Ziko asked how costly can it be for someone to check every meter and turn on hose bibs among other things?

            Mr. Goscicki responded the job will require two utility technicians for a couple of days, and I am certain it will not cost anything close to $20,000.

            Ms. Dillon asked if we wait until you have a contract will you be doing this?

            Mr. Goscicki responded we can do this as an additional service to the contract, but all terms will be defined making it easier for you to authorize.

            Mr. Dick stated we will certainly be tracking this on a monthly basis.

            Grant from South Florida Water Management District

            Mr. Ziko stated this is complete.

            Install Missing Reflectors for Fire Hydrant Location

            Mr. Ziko stated this is complete.

            Paint Fire Hydrants

            Mr. Gatti asked have we paid the contractor?

            Mr. Benson responded no.  Do you want me to report on the hydrants now?

            Mr. Ziko responded no, since this involves the painting of the fire hydrants.

            Ms. Dillon stated a representative from our local fire department, Mr. George Bogeny, is going to talk to us later.  According to him, they will be doing this.  Therefore this may be another item which we do not have to deal with.

            Truck Decals

            Mr. Ziko stated this is complete.

            Portable Defibrillator

            Mr. Ziko stated this is complete.

            Auditor Fees

            Mr. Goscicki stated I just updated you on this.  Therefore, this should come off the list.


Research Capacity of Facilities with the Possibility of Adding Additional ERCs

            Mr. Ziko stated I believe this can remain open, but there may be concerns due to the depth of the wells we have now.

            Mr. Benson stated we are still working on this with our hydrogeologist and do not have an update on the status of the wells as yet.  We will have a recommendation as to what we are going to do about this.

 

SIXTH ORDER OF BUSINESS                              Staff Reports

A.                 Attorney

Mr. Cox stated the only thing I have to report on today is Orchid Cove roads.  You need to write a letter to Mr. Wood and remind him since they did not think we had an agreement to cut our roads anymore, this must be the case.

            Mr. Ziko asked will this open cut be for the drainage to go to the new pond they are putting in?

            Mr. Cox responded it is probably for whatever purpose they need to run any type of utility which is their responsibility.

            Mr. Ziko stated they are inspecting the roads right now.

            Mr. Cox stated this is for the utility installation.  The vehicle damage must be documented as to how the road base was filling with an understanding the roads were in bad shape anyway.

            Ms. Dillon stated they were not as bad as they are right now after all the trucks were running back and forth.

            Mr. Cox stated I do not believe they will want to approach it this way.

            Mr. Gatti stated I believe we should try to make a case for them to be required to resurface the entire area because if you fix one part, it will not look right.

            Mr. Ziko stated I think they should fix the part past the entrance because they are going to have a septic entrance on Union Road into their property and if they pave it from Route 41 at the center entrance, that can make it look good for them getting in there, but there is a great deal of damage, and I think they should be responsible for that too.

            Mr. Cox stated I assume Mr. Benson or someone in his organization is in the best position to evaluate and determine what percentage of the road damage was caused by those activities.  Once we get the information, I can write a letter if you want me to.

            Mr. Ziko stated I do not think we can expect them to do anything until their project is almost complete.

            Mr. Benson stated we have to wait until all the damage is done to be able to make an assessment.

            Mr. Cox stated we need documentation.

            Mr. Bissell asked was this resurfaced in 1995 or 1996?

            Mr. Benson responded I believe it was more than 10 years ago.

            Mr. Bissell stated it was surfaced after 1994, when I came here.

            Mr. Benson stated there was some work done approximately 10 years ago, but I am not certain if it was a total resurface.

            Mr. Gatti stated we should ask them to resurface the entire area with the possibility of us sharing some costs.

            Mr. Ziko stated I disagree.

            Mr. Gatti stated we should keep this open, as they may make a case they did not touch certain parts of the road.

            Mr. Ziko asked have you been down there recently?

            Mr. Gatti responded I was down there yesterday and what you are saying is true.

            Mr. Bissell asked this is there any possibility Mr. Cox can send a letter to the State which says, ‘while participating in resurfacing the road, they have hosed up the back and they are using this road the same as everyone else’?

            Mr. Cox asked the State does?

            Ms. Dillon responded there are people who were bought out staying in those homes temporarily.

            Mr. Gatti stated referring to the State is a broad statement.  The people who do the paving have nothing to do with the Department of Transportation.

            Mr. Cox stated it is more complex and goes back to the whole determination of possible liens on your special assessments.  This property receives unique general public benefits from the existence of these facilities.  In fact, other people can use it as access property which goes beyond the District and is not relevant to our determination of how we assess costs.  The benefits the facilities provide is recognized, and you may assess costs against the residents which benefits other members of the general public.  However, the benefits you receive are peculiar to this property, and the improvements enhance the ability to develop out here.  They enhance your use and enjoyment of the property as well as the marketability and value of the property, where these general public benefits can get you from point A to point B, and does not really affect the property’s utility or value.

B.                 Engineer

Mr. Benson stated the project was not closed out because the work is not complete.

            Mr. Gatti asked how much of their money do we have?

            Mr. Benson responded I did not check this before the meeting.

            Mr. Gatti stated keep as much as you can.

            Mr. Benson stated we turned down their last pay request because it was more than we wanted to pay.

            Mr. Ziko asked do you have any idea what it was?

            Mr. Benson responded I do not.

            Mr. Ziko asked is there a chance they can walk from this?

            Mr. Benson responded I do not believe this to be the case.

            Mr. Ziko stated if they walked away we would have to get another contractor in to fix their errors.

            Mr. Benson stated we continued to notify the contractor about the yard restoration concerns, and we have done everything possible up to a point of some action where we would have to get involved, and I hope we do not get to that point.  They are working with Mr. Stephens on the meter installations, which have to be checked to ensure we hook everything up correctly before we hook up non-potable water to a meter they are not using appropriately.  This is being verified, and I do not believe it was finished yet.

            Mr. Gatti stated I received a call a couple of nights ago from a resident who told me part of their utilities are hooked up to the irrigation line, and he asked me what we are going to do with it.

            Mr. Benson stated we will have a plumber come out and fix their problem.  With regards to the fire hydrants, we have an area of the community toward the wastewater and water treatment plan where we are sill using the potable water system for fire protection until we get the line up there but we have not extended it out to actually set hydrants and we are holding off on this until the north part of the community develops, and at this point they will extend the fire and irrigation lines.

            Mr. Ziko asked are the hydrants up there opposite the plant on potable water?

            Mr. Benson responded that is correct.

            Mr. Ziko asked what about the one which is leaking water?

            Mr. Benson asked is there one leaking up there?

            Mr. Ziko responded it has been leaking for approximately 1 ½ months.

            Ms. Dillon stated I believe they finally turned it off.

            Mr. Ziko stated the hydrant up there is leaking, and I thought it was reuse water.  Otherwise I would have called Mr. Dick.

            Mr. Benson asked is it one of the hydrants which was relocated?

            Mr. Ziko responded yes.  It is sitting up above the ground.

            Mr. Benson stated I apologize, but it was not reported to me.

            Mr. Dick stated it must be turned off because it is not leaking today.

            Mr. Benson stated we had existing hydrants which the contractor relocated from the old waterline which was abandoned to the new waterline, in order to have fire protection along the corridor.  The fire hydrants were installed, but not adjusted.  There is a section which should come off those hydrants, and if it does not come off, we will have to get a new fire hydrant installed.  If we do this, it will be an extra justified to the contractor.  In fact he must buy a new hydrant, since they are currently relocating the old hydrants.

            Mr. Gatti asked can you cut out the spindles?

            Mr. Benson responded we have been working with the contractor for more than one month, and I expected it would have been taken care of by now.  However, I know the engineer who is the manager on the project has been working with the contractor and it should be resolved.  We are aware it is an issue.

            Mr. Ziko asked is the irrigation water hooked up at the end of Newport Cay?

            Mr. Benson responded the extended line is active for those who switched over at the meter when it is verified safe to do this.  Some people are getting this water off the new line and some are not.  We are still in the process of verifying this.

            Mr. Ziko asked are the people who are not getting water from the new line still using potable water?

            Mr. Benson responded this will be the case until we verify this is not causing a health issue.

            Mr. Gatti stated I am glad they lowered the hydrants.

            Mr. Benson stated the hydrants are supposed to be lower, and you must work with your contractor.

            Ms. Dillon asked does our contract clearly state we are going to reuse the old hydrants?

            Mr. Benson stated this is correct.

            Ms. Dillon asked what does the new hydrant cost?

            Mr. Gatti responded approximately $5,000.

            Mr. Benson stated this is per hydrant which is why we relocated the existing hydrants which were still functioning.

            Mr. Ziko asked is the new piping this much closer to the surface?

            Mr. Benson responded that is correct.

            Mr. Ziko stated I thought we were replacing it and if they had to dig up the old line, they could install the new line and have the hydrant at the same height.

            Mr. Benson responded we installed the new line at the normal depth of cover in this area. I have no idea why the old asbestos cement line was so deep in some areas.

            Mr. Ziko stated we had to get down to the line to take the hydrant out because the spool piece which is on the bottom went all the way down to the line.

            Mr. Benson stated the new line is much shallower and I have no explanation.

            Mr. Ziko asked why couldn’t they put the new line in the same hole they dug up?

            Mr. Benson responded I do not understand.

            Mr. Ziko stated when they dug up the hydrant they went down so deep to get the spindle off of the old line.  Therefore, they had the hole down there already.  Why didn’t they put the new line in the hole?

            Mr. Benson responded the new line was installed while the existing line was still in use, and they are not in the same hole.

            Mr. Gatti stated we did not get rid of the old line because we need it for potable water to our homes.  We put the new line up here and lifted it up.

            Mr. Benson stated I apologize, but I may not have been clear.  The hydrants in the area out by the plant were relocated.  They were moved to this area, and the hydrants on Newport Drive are now on the fire and irrigation system.

            Mr. Gatti stated the old lines which serve the homes are still there; since we did not remove any lines.

            Mr. Benson stated that is correct.

            Ms. Dillon stated some of the hydrants over by the plant were turned the wrong way, and the fire department cannot get to them.

            Mr. Benson stated we notified our contractor who is doing our work as your representative, and we are working with him to get things fixed.  He is not going to get all of his money until everything is taken care of.

            Mr. Ziko stated time is of the essence because if the hydrant located there is unusable and an emergency arises where we need to use the hydrant, we need to know who is responsible for the liability.  We have an unusable hydrant there.  Are there any hydrants on Newport Drive in the same condition?

Mr. Benson responded I do not know whether or not they are usable.

            Ms. Dillon stated the gentleman from the fire department will talk to us about this.

            Mr. Benson stated we told the contractor to take care of this, and we are withholding his money until he does so.

            Mr. Gatti stated let’s end this by saying we will not pay him anymore money until everything is done, and Mr. Benson knows what has to be done.

            Mr. Benson stated at the last meeting it was mentioned we received a price from Parkson for the filter at the plant which must stay in service even with the new project because it is a redundancy and a back-up for DEP.  I did not have a price at the last meeting, but we have since gotten the price.  Did you forward my email to the Board?

Mr. Goscicki responded no.

Mr. Benson stated I only sent it out on Wednesday, but the quote is dated March 7th.  I apologize it was late, but that is when we received it.  We have a price from Parkson for the materials, which is basically the supplies, and it looks like it is under $3,000, and is an itemized list of materials which are replacement parts.  We have a price from Filter One which is the authorized service company for parts and filters in Florida.  It is a good company who gives good pricing.  The labor to install the parts we will buy from Parkson is $12,947.  The total is approximately $16,000.  We need to do this immediately.  As I mentioned last month, I do not believe we have an option about this since we are currently not producing water which is in compliance because the filter is not working.

            Mr. Gatti asked is your recommendation that the pricing is reasonable and we do not have an option?

            Mr. Benson responded we do not really have an option.  We usually buy parts for the filter from Parkson, and we have some items down to $5 each.  I have a phone call from some of the Board members within the last week and there were a couple of items that I want to report on which were questions.  One is there is a property in the Cays that we have talked about before.  I do not remember the gentleman’s name and I believe his last name begins with a ‘K’.  Do you know the name?

            Mr. Bissell responded I believe it was Kelmack.

            Mr. Benson stated there is a house in the Cays which we talked about approximately four months ago which was even farther back, and at your request I got the information from the property owner.  We asked them to provide us a survey showing the locations of all the easements.  They acknowledged the easements and this was the easement at the back of the property for the swale, which I believe is a 20’ easement.  There is a 10’ easement on the side for drainage on one side and another for general utilities on the other side.  He provided us the survey which showed that he acknowledged where all our utility easements and drainage easements were located.  He also provided us the site plan for his house which he provided to Collier County for his permits.  His revised site plan showed the 20’ easement at the back of the property as well as the location of the house and pool.  According to what he submitted to Collier County, he was not going to build on our property.  There was a question in particular about piles which were driven on his property.  One of the engineers from our office looked at them, and said there are two piles driven adjacent to the seawall.  The two piles which were driven, as well as by recollection of discussions with this gentleman previously is not to build anything in the swale.  It is also my understanding there was action taken a number of years ago which granted your staff, in particular I believe it is myself and Mr. Cox, when people were going to build basically a bridge across the swale to connect their dock to the yard, as long as they were not impacting the drainage way, they could obtain a permit or some kind of a use agreement basically acknowledging they were not going to impact the drainage way as well.  If we ever need to do any work in there, they are at risk.  I assume this is going to be the same case since this structure is for a dock.  I believe there was another question about setbacks.  The setbacks on the documents which were submitted to Collier County clearly show they are not building within the swale and they are building to whatever the setbacks for Collier County are.  I do not believe there is any issue we have unless we choose to take issue with them putting piles down for support of a dock which is going to be built out into the canal.

            Mr. Gatti asked do they interfere with the float?

            Mr. Benson responded at this point without saying what they are building other than these piles, I do not think it is going to interfere.

            Mr. Gatti stated you can contour the ground to avoid having a flow affect it.

            Ms. Dillon stated they have to return the required swale.

            Mr. Benson stated part of what I am saying is based on the fact the Board said staff can deal with people who build these structures for docks as long as they are not interfering with the drainage water.  They did not ask for this, but at some point, we may have to write them a letter telling them we need a use permit as well as specifics of what they are building.  Mr. Cox and I will write the letter.

            Mr. Gatti stated that is fine.

            Mr. Benson stated with regards to Orchid Cove and some of their construction activities related to utilities, they will request to connect to our system and utilities.  They then turn it over to us for use.  In other words, they will ask us to accept it and donate it to us.

            Mr. Gatti asked what leverage does this give us in the form of other activities, such as the road paving which we were talking about.

            Mr. Cox responded you are looking at acceptance of utilities.  If they are billed according to your specifications in accordance with plans which have been approved by Mr. Benson, when they ask you to accept them, you should do so, but it should not be related to the road.  The road is a different issue.  It is the District’s personal property.  If they damage it they need to repair it, but it does not need to be tied to other aspects.

            Mr. Gatti stated I understand the two cannot be connected.

            Mr. Cox stated the open cut of the roads to place your utilities in gives you leverage.

            Mr. Benson stated I want to get to specific items of concern today, and one of them is the fact they installed the wet well for the sanitary sewer system, and they were concerned the wet well was not installed in plum.  I had the same engineer who has been working on waterline projects who also inspected the one which Mr. Gatti asked him to check on.  He determined it was not plum.  How far off it is from plum has not been determined.  We had this issue once before, and it was an item where a private developer was building something at his cost which he was then turning over to us.  There is a difference when we build something with a specification and a contract with wording of what he is supposed to do as well as some remedies if he does not do it appropriately.  When we are not building something without a contract, we do not have any leverage.  The only leverage we have is if something is built which does not meet our standards, we do not have to accept it.  We probably have to accept the sewage for the community, but we do not necessarily have to own and operate his lift stati