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 21, 2008 at 10:00 a.m. in the Egret Room; 25000 Tamiami Trail; Naples, Florida.

 

 

            Present and constituting a quorum were:

 

            Theodore Bissell                                               Chairman

            Dale Lambert                                                   Vice Chairman

            Norine Dillon                                                    Secretary

            Richard Gatti                                                    Assistant Secretary

            Richard Ziko                                                    Assistant Secretary

 

            Also present were:

 

            Calvin Teague                                                   District Manager

            Daniel Cox                                                       District Attorney

            Ron Benson                                                      District Engineer

            Robert Edge                                                     Field Operator

            Tonya Phillips                                                   Collier County Utilities Investigator

            Judy Haner                                                       SFWMD Media and Outreach Specialist

            Sue Beck                                                         Resident

            Corinne Connelly                                              Resident

            Keith Connelly                                      Resident

            George Cramer                                                Resident

            Yolanda DiBartolo                                            Resident

            Ron Gilbert                                                       Resident

            Larry Kane                                                       Resident

            Jean Kungle                                                      Resident

            Robert Magloy                                     Resident

            Dar Maehug                                                     Resident

            Jim Morris                                                        Resident

            Duane Ott                                                        Resident

            Victor Ptach                                                     Resident

            George Ricci                                                    Resident

            Brian Sheehan                                                  Resident

            C.R. Webster                                                   Resident

            The following is a summary of the minutes and actions taken at the March 21, 2008 Port of the Islands Board of Supervisors meeting.  A copy of the recording of the meeting is on file at the District Office.

 

 

FIRST ORDER OF BUSINESS                               Roll Call

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

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the

February 15, 2008 Meeting

            Mr. Bissell stated each Board member received a copy of the minutes of the February 15, 2008 meeting and requested any additions, corrections or deletions.

·                    On Page 1 in the first paragraph Dining should replace Egret.

·                    On Page 3 in the first bullet, per should replace and.

·                    On Page 8 under the third bullet, Ms. Kungle also inquired about the PILT dollars, which is not reflected in the minutes.

·                    Mr. Ziko expressed there is not enough detail in the summary minutes.

There being no further additions, corrections or deletions,

 

On MOTION by Mr. Gatti seconded by Mr. Lambert with all in favor, the minutes of the February 15, 2008 meeting were approved as amended.

 

 

THIRD ORDER OF BUSINESS                             Discussion of Bond Payoff

·                    The District collected enough money to pay off the bond, since there was approximately $557,000 available as of the end of February.

·                    There will be $44,000 remaining after the bond payoff and interest payments, which will be deposited to a CID-designated fund.

·                    Over the last two years the District assessed at a higher rate than necessary.

Ø                  An outsourced contractor over-estimated the payment, causing residents owing to pay at a higher rate.

Ø                  Some bad debt which was collected was applied.

·                    There is a provision within the Bond Indenture requiring the District to pay off the bond if it has sufficient funds to do so.

Ø                  The Trustee must be notified and is responsible for taking care of this.

Ø                  The District will be considered to be in breach of the contract if this is not done.

Ø                  This falls under the provisions of contract law as opposed to state law.

Ø                  The District may be challenged if they ask those who have not paid off their debt to continue contributing their share to the General Fund.

·                    The Debt Service Reserve Fund was depleted, leaving no funds to cover for the last balance owed.

Ø                  It was replenished through penalties and interest above what was accrued on bonds collected from the RV Park.

·                    Mr. Cox discussed special assessment issues.

Ø                  The valid special assessments, which are lienable under Florida law, must be determined.

o                   Lienable property must legally have special and peculiar benefits arising from the improvements to be applied to the special assessment.

o                   There is no longer a lien on the property once the bond is paid off; thereby providing no benefit.

o                   Any assessments will have to come from Operations & Maintenance.

·                    The Board discussed possible benefits for those who paid off their assessment early.

Ø                  The District is under no obligation to give special bonuses to those people.

Ø                  They receive the benefit through the remaining funds going into the Renewal & Replacement Fund.

Ø                  Those people avoided the additional interest by paying early.

Ø                  Early payoff has no bearing on whether or not the District needs to impose an assessment.

·                    The summary sheet indicates the District is short on funds as of May 1st.

Ø                  Collections for March and April have not yet been taken into consideration.

Ø                  There is a possibility of coming up short on May 1st by approximately $10,000.

Ø                  No other Districts are in the same situation.

·                    The Board wants to defer taking further action until all funds are received prior to the November 1st interest payment date.

·                    Once the Fiscal Year 2009 budget is adopted, the District will be in a position to determine whether or not to pay off the bond.

·                    If the funds are available after this date, the call date for the bonds will have to be November 1, 2008.

Ø                  Formal action will have to be taken 45 days prior to this.

 

FOURTH ORDER OF BUSINESS                          Public Hearing to Consider Adoption of a Proposed Rule to Implement a Tiered Rate Structure Relative to Block Rates for Water Utilities and Development of Utility Rates Relative to Late Fees and Turn On Fees – Consideration of Resolution 2008-1 to Adopt Said Rates

The first public hearing is for development of the rules.

·                    Mr. Benson submitted information which Mr. Cox incorporated into Resolution 2008-1.

·                    Mr. Teague outlined the goals to be accomplished.

Ø                  There will be a tiered rate structure for irrigation water in order to promote conservation.

Ø                  A late fee in the amount of $25 will be assessed 10 days after the due date.

Ø                  Water service will be shut off if the bill has not been paid after 45 days.

o                   A re-connection fee in the amount of $25 will be established.

Ø                  Mr. Benson gave a detailed overview of the program using a single-family unit as an example.

o                   The first 10,000 gallons of water used for irrigation per month will be at the current rate of $1 per 1,000 gallons.

o                   The next 5,000 gallons per month will be at $1.50 per 1,000 gallons.

o                   The next 5,000 gallons after this will be at $2 per 1,000 gallons.

Ø                  Collier County and other utilities have implemented Phases 2, 3 and 4 watering restrictions.

o                   The different phases reduce the number of days for watering.

o                   It encourages conservation.

o                   The SFWMD implements surcharges on water bills since the cost to produce water never changes.

Ø                  Reclaimed water in communities is used for parks, golf courses and medians.

o                   Some areas using 100% reuse water can be exempt from some conservation rules.

o                   Most people use potable water for irrigation and are being charged $88 per month.

§                     The water is removed from the wells.

§                     This water is treated to ensure it is drinkable.

v                 POI does not charge this fee since it is not necessary.

Ø                  Mr. Benson discussed single-family versus multi-family units.

o                   Multi-family units technically use less water per person since they have small lawns requiring less irrigation.

Ø                  The rates will decrease for residents conserving.

Ø                  The rates will increase for residents not conserving.

Ø                  Water restriction phases were discussed.

o                   The county will notify Severn Trent Services of changes in phase restrictions for water conservation.

o                   There is usually one-month’s notice of a change in phase.

o                   The county conducted a series of workshops to prepare communities for these water phase restrictions.

o                   Mr. Ziko suggested Severn Trent indicate which water restriction phase the CID must adhere to on each water bill.

Ø                  Ms. Judy Haner of SFWMD commented on water restriction issues.

o                   The District is in a Modified Phase 3 Restriction.

o                   Ground water levels will be reviewed next month in order to determine whether or not the District must move to Phase 4.

o                   Changes in restrictions are determined at the Governing Board meeting.

o                   She directed residents to look at their web site for changes.

o                   Notifications of change go to the utilities.

o                   The Governor is proposing a two-day per week, year-round watering restriction for the entire state.

o                   The restrictions prevent saltwater intrusion which takes many decades to alleviate.

o                   Collier County water levels are at historical lows.

o                   The steps the District is taking to implement this rate structure is a positive measure.

o                   Ms. Haner distributed brochures indicating the best landscaping to have under these circumstances.

o                   Grants are possible, depending on the circumstances and how many other communities apply for them.

o                   Residents may have a free and confidential assessment of their irrigation systems.

o                   Most plants are adaptable to watering changes.

o                   Ms. Haner and Ms. Tonya Phillips of Collier County Utilities will make a formal presentation at the next Board meeting.

Ø                  DEP makes it extremely difficult to authorize blending of reuse water with non-reuse water.

o                   This has been the case for more than 20 years.

o                   The District previously received a grant from SFWMD to put in part of the pipeline in order to make the connection.

o                   SFWMD changed their ruling and stated the other water must be treated to the same quality of disinfection as the reuse water.

Ø                  Ms. Haner and Ms. Phillips discussed citation procedures.

o                   They document and take photographs of the irrigation.

o                   They usually issue citations during the middle of the night when many residents are actually running their irrigation.

o                   The first citation costs $80.

o                   The second citation costs $255.

o                   The third citation costs $405.

o                   The fifth citation requires a court appearance, in which the Special Magistrate may impose a daily penalty of up to $1,000 at their discretion.

o                   They rely on other residents to ensure everyone complies with the appropriate restrictions.

o                   If there is a power outage, it is imperative to reset irrigation timers after the power comes back.

Ø                  Water restrictions relating to new construction were discussed.

o                   The county now prohibits digging for wells for new construction.

§                     Although the well may actually be dug for future use, it must be capped off until restrictions are lifted.

o                   New developers may still obtain permits for county water.

o                   The new golf course on Route 41 has been prohibited from further development.

o                   These types of facilities may be required to build on-site utilities with some form of RO capacity.

o                   Reuse water is going to be required immediately for new construction.

·                    Mr. Teague gave an overview of the Public Hearing.

Ø                  The Board must establish rates for the proposed rule.

o                   Mr. Ziko and Mr. Bissell recommended some changes, which require Board consensus.

o                   The Public Hearing will be open for audience input.

o                   The Public Hearing will be closed.

o                   The second Public Hearing for adoption of the proposed rule will be open.

o                   These Public Hearings may be continued to next month.

The first Public Hearing for establishment of rates for the proposed rule was open for Board discussion.

·                    Mr. Bissell believes the starting rate for both single- and multi-family units should be 10,000 gallons @ $1 per gallon.

Ø                  Mr. Lambert is not certain whether or not this is an accurate number since Mr. Bissell did not take the amount of water used for irrigation at Stella Maris into consideration.

o                   Mr. Benson determined Stella Maris’ water use is within the required allocation and they have been good customers.

·                    Mr. Ziko is proposing to delete the 10 to 15 gallon range and change the ranges to 0 to 10; 10 to 20; 30 to 40; and over 40; and multi-family unit ranges should be 0 to 6; 6 to 12; 12 to 18; 18 to 24; and over 24.

Ø                  Ms. Dillon concurs with these changes.

Ø                  Mr. Lambert concurs as long as Severn Trent Services can appropriately administer it.

Ø                  Mr. Gatti concurred.

Ø                  Mr. Teague outlined the following changes to Single-Family Residential Customer Class Irrigation Rate:

o                   0 to 10,000 gallons remains at $1.

o                   10,001 to 20,000 gallons at $1.50.

o                   20,001 to 30,000 gallons at $2.