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, May 12, 2006 at 10:00 a.m. in the Egret Room, 25000 Tamiami Trail, Naples, Florida.

            Present and constituting a quorum were:

 

            Richard Gatti                                                    Chairman

            Dale Lambert                                                   Vice Chairman

            Ted Bissell                                                        Assistant Secretary

            Norine Dillon                                                    Assistant Secretary

            Richard Ziko                                                    Assistant Secretary

 

            Also present were:

 

            Bob Dick                                                         Severn Trent Services

            Dan Cox                                                          Attorney (via Telephone)

            Ron Benson                                                      Engineer

            Tom Mack                                                       Staff

            Michael Lackey                                                OLM Landscaping Services

            Bruce Holecek                                                 POI RV Resort

            Dennis

            John Agnelli                                                      Power Corporation

            Peter Saalprank, Sr.                                         Resident

 

 

FIRST ORDER OF BUSINESS                               Roll Call

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

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the April 14, 2006 Meeting

            Mr. Gatti stated each Board member received a copy of the minutes of the April 14, 2006 meeting and requested any additions, corrections or deletions.

            Mr. Lambert stated on Page 39 in the first sentence of the second paragraph, the last word should be permit.  On Page 49 through Page 51, all comments stated by Chief Wilson were made by Mr. Mack.  On Page 56 toward the end of the minutes, there are two comments by Mr. Mack which I believe were made by Mr. Shucart.

            Ms. Dillon stated on Page 52 at the bottom Chief Wilson should be changed to Lieutenant Vogeny.  On Page 52 under Port of the Islands Mosquito Control in the fourth and sixth paragraphs Mr. Cox should be changed to Mr. Dick.

Mr. Ziko stated on Page 13 in the fourth paragraph Mr. Benson should be changed to Mr. Dick.

 

On MOTION by Mr. Lambert seconded by Ms. Dillon with all in favor the minutes of the April 14, 2006 meeting were approved as amended.

 

 

THIRD ORDER OF BUSINESS                             Manager’s Report

A.                 Report on Number of Registered Voters – 267

B.                 Consideration of resolution 2006-02 for General Election

Mr. Dick stated the first item is a report from Ms. Jennifer Edwards, the Supervisor of Elections stating, the total number of registered electors residing in the CID is 267, which is in compliance with Chapter 190.006 of the Florida Statutes.  This number is significant because once the District reaches six years of age and has 250 registered voters or more, the District’s electoral process for the Board of Supervisors is handled by the County Supervisor of Elections.  Resolution 2006-02 has to be adopted by the Board, and in November, Seat #2 and Seat #4 will be filled through the Board of Elections.

Mr. Gatti stated I thought this was already done.

            Mr. Ziko stated I believe this has to be done for every election.

 

On MOTION by Mr. Bissell seconded by Mr. Ziko with all in favor Resolution 2006-02 requesting the Collier County Supervisor of Elections to conduct an election for Seat Two presently held by Mr. Richard Gatti for a four-year term and Seat Four presently held by Mr. Ted Bissell for a four-year term in conjunction with the General Election to be held in November 2006 was adopted.

 

 

FOURTH ORDER OF BUSINESS                          Attorney’s Report

            This item was deferred to a latter part of the meeting since Mr. Cox did not yet call in.

 

SIXTH ORDER OF BUSINESS                              Field Manager’s Report

            Mr. Ziko asked are you sitting in for Mr. Goscicki?

            Mr. Dick responded yes.

 

FIFTH ORDER OF BUSINESS                               Engineer’s Report

            Mr. Ziko asked since the fire hydrants have not been repaired, how much money was held back?

            Mr. Benson responded we have retainage in excess of $35,000, and at least $30,000 of other money which has not been invoiced.  However, we are holding their retainage and will not release it until everything has been done.

            Mr. Ziko stated you made a strong statement at the last meeting these fire hydrants will be corrected by today.  Can you update us since they are not corrected?

            Mr. Benson responded we checked with the contractor.  The hydrants were ordered, but have not been received.

            Mr. Ziko stated this has been going on for three months.  Can you follow up with the contractor to ensure this gets done, or should we put this on the open items list?

            Mr. Benson responded there has been at least four communications in the last 30 days with the contractor, and there is only so much we can do.

            Mr. Ziko asked can you take the $35,000 retainage, hire someone else to repair them and subtract it from their bill?

            Mr. Benson responded when they do the work we can just deduct it from their contract.

            Mr. Ziko stated this is what we are trying to get done.  The fire chief told us they are not up to code.  Therefore, it is not a matter of the money, but it is a matter of getting it done.

            Mr. Lambert asked do we have anything in writing stating we are definitely in violation from the fire department?

            Mr. Ziko responded he said it was from the NFPA Code.

            Mr. Lambert asked have they sent us anything?

            Ms. Dillon responded they have not sent anything to my knowledge.

            Mr. Lambert stated we cannot get material here if the vendors do not ship it.  It does not do any good to beat on anyone if the vendor will not ship the material.  We have been discussing this for the past couple of meetings.

            Mr. Ziko asked are we going to let the hydrants sit illegally and then when there is a fire hook up the engine and break it off?

            Mr. Lambert responded no one has given us anything to indicate it is illegal.

            Mr. Ziko stated the fire chief told us they were not up to code.

            Mr. Gatti stated he indicated verbally they had to be a certain height off the ground or else when the hose is hooked it will snap off.

            Mr. Lambert stated we are beating this to death and we do not have the material to do it.  What are we going to do?

            Mr. Ziko responded I suggest we find another contractor to get this done and take it away from Florida Underground.

            Mr. Gatti asked is the contractor obligated to bring it down to code in your opinion?

            Mr. Benson responded when we brought this up, we negotiated the price to buy and install the new fire hydrants with the contractor.  Installing these fire hydrants is an extra because it was not part of the original contract.  When we realized the existing hydrants were going to be higher than what was going to work on the new installation, we had to make them as short as possible, giving us temporary fire protection.

            Mr. Gatti stated we are waiting for delivery of the new fire hydrants by Florida Underground.

            Ms. Dillon stated I spoke to the supervisor a couple of days ago who told me the hydrants have to come from Texas.  Since I can get things shipped from Europe in two days, I have trouble believing they cannot get these hydrants.

            Mr. Gatti stated it is difficult for us to second guess what can and cannot be done unless you are involved in knowing where the hydrants have to come from, making it difficult for us to second guess Mr. Benson and tell what should be done in such a period of time.

            Mr. Ziko stated the previous Board allowed these issues to continue.  Fortunately, we have a continued items list.  It is taking 90 days to replace six fire hydrants.  That is unbelievable since Mr. Benson guaranteed us at the last meeting they would be done by today.

            Mr. Gatti stated the only thing I take exception to is what you said about the old Board allowing issues to continue.  I am not going to listen to anymore negative dissertations of the history of this Board.

            Mr. Ziko stated these issues have not been accomplished because I was in the audience for three years and witnessed the old Board do nothing.

            Mr. Gatti stated I do not feel it is necessary to bring this up at every meeting.

            Mr. Ziko stated we have items like this which are 90 days late.

            Mr. Gatti asked what does this have to do with the previous Board?

            Mr. Ziko responded this is the way they operated.

            Mr. Gatti asked why do you keep bringing it up?

            Mr. Bissell responded I call a point of order.  We should get back to the business at hand.

            Mr. Gatti stated I agree with you, but I am not going to listen to these complaints about the previous Board.

            Mr. Lambert asked are the hydrants on order?

            Mr. Benson responded yes.

            Mr. Lambert stated I assume they will be installed in a reasonable time when they arrive.  We cannot control when the vendor sends the hydrants.

            Mr. Ziko stated we can exert some pressure.

            Mr. Gatti asked can you call the contractor to see if we can solidify the facts?

            Mr. Benson responded yes.

            Mr. Gatti asked does the Board accept this?

            Ms. Dillon responded we just want to get this done.

            Mr. Gatti stated I apologize for my language and outburst, but all of you know where I am coming from.

 

THIRD ORDER OF BUSINESS                             Manager’s Report (Continued)

            Mr. Ziko stated Mr. Goscicki told us he was going to bring the five-year budget to this meeting.  Do we have it?

            Mr. Benson responded in defense of Mr. Goscicki, he asked me to provide updated pricing for the various CIP projects.  We are in the middle of bidding one of the largest cost projects for the next year, and I will give you a report on the pricing when we get to the item, but I did not give him the update because I do not have all the information, and he did not receive everything from me he needed.

            Ms. Dillon stated we are going to have a budget meeting two weeks from today.  Are we going to have some data ahead of time to peruse before we sit down to do our budget?

            Mr. Benson responded I will get the best information to Mr. Goscicki early next week.

            Mr. Ziko asked are you going to cover this later in the meeting?

            Mr. Benson responded yes.

            Mr. Ziko stated Mr. Goscicki was going to report to us on the bond payoff procedure, but he is not here.  Has the evaluation of the metered customers been done?

            Mr. Dick responded it has not been done.

            Mr. Ziko asked why is this being held up?

            Mr. Dick responded it is a matter of scheduling and getting staff to do the work.  It is scheduled for next week, and I was hoping to have it done prior to this meeting, but this is not the case.

            Mr. Ziko stated I had a request for the bond status of individual lots.  He was going to provide the Board members with a copy of this.

            Mr. Dick stated I did not receive a copy.

            Mr. Ziko stated we should add them to the Open Items list.  If they are all opened, there are questions which should have been answered at this meeting and nothing has been done.

            Ms. Dillon stated we should put them on the open items list.

 

FOURTH ORDER OF BUSINESS                          Attorney’s Report (Continued)

            Mr. Cox stated we sent out the material for the sign easement request.  I am working with Mr. Benson on the pump station easement, and I understand you have questions regarding Orchid Cove.

            Mr. Ziko asked did you get the appraisal for the fire station land on the end of Cays Drive?

            Mr. Cox responded I received three copies of the report yesterday, which I can send down.  It indicates an estimated value for a 1.90 acre parcel at $250,000.

            Mr. Ziko stated we were supposed to receive a copy of the contract you were drawing up between the Board and Severn Trent for the water treatment plant operation two weeks ago in order for us to make a decision at today’s meeting.  However, I have not seen it.

            Mr. Cox stated I received it approximately two weeks ago, and it took me some time to review it.  I sent comments to Mr. Goscicki either last Friday or this Monday, and he responded back.  There were a few things which needed to be added in from the last meeting.  I believe one was mosquito spraying.  I also had questions for him on a couple of the terms, and I was in depositions for the rest of this week and have not had a chance to discuss those questions with him, but we are working on it.

            Mr. Ziko asked when will we be able to review it for our input?

            Mr. Cox responded I hope to have the opportunity to speak with Mr. Goscicki to work it out within the next week, and once we have the details I will circulate it around.

            Ms. Dillon stated this is also part of the budget process.

            Mr. Cox stated the numbers are efficient for your budgeting purposes.  It is possible they may change, but I do not believe so.  There are a few minor details which need to be worked out.

            Mr. Bissell asked what is the status of the bond issue you were going to check into?

            Mr. Cox responded I am still working on this, and trying to get these numbers down is taking longer than I thought.  I have it in front of me to try to continue working on it, but we will hopefully have this done by the end of the day.

            Ms. Dillon asked since it involves a critical question in terms of our ERCs, are you going to email this to us?

            Mr. Cox responded I am working on two issues with regards to the bonds.  One was the balance after we incorporate all monies which were paid down along with the settlement agreement with North Port.  I talked to a friend of mine who is a bond counsel for many of the transactions I am involved in, and he indicated the monies received from the sale of the ERCs will most likely be encumbered by the indenture.  Perhaps you can hold on for a moment while I check my bond book in order to answer this question definitively.

            Mr. Gatti asked what is the percentage of work done by Florida Underground, plus or minus?

            Mr. Benson responded they completed all the work.

            Mr. Gatti stated the restoration is complete.  The fire hydrant across the street from me was painted.

            Mr. Bissell stated that one was painted, but I have not seen any others.

            Mr. Gatti stated the one near my house has the white cap and the red stem.

            Mr. Ziko stated the other one up the street from you is also painted red.

            Mr. Dick stated red is not the appropriate color.

            Mr. Ziko stated it is supposed to be purple.  Where do we stand on the sign issue at Cays Drive?

            Mr. Cox responded I sent the request for the sign easements and have not heard back yet, but we should be hearing something from them soon.

            Mr. Gatti asked have you found your book?

            Mr. Cox responded I found it, but the definition does not mention anything either way on this issue.

            Mr. Gatti stated perhaps you can have it ready for us at the next meeting as opposed to doing this research now.

            Mr. Bissell asked can Mr. Cox email us his opinion?

            Mr. Gatti responded yes, put it together and email it.

            Mr. Ziko asked is this going to be critical on our budget workshop?

            Mr. Cox responded the money will be used in the capital improvement program, and you may look at projects you will consider for acceleration if the money is able to be used.

            Mr. Ziko asked are you going to attend the budget workshop in two weeks?

            Mr. Cox responded it may be difficult, but I can call in.

            Mr. Ziko stated just email some of this information in order for us to discuss it at the budget workshop.

            Ms. Dillon stated with regards to Orchid Cove, you were investigating what we can do legally since they cut the road among other things which they were not supposed to.  What are we doing?

            Mr. Cox responded someone has taken action which caused damage to property you own.  Your legal remedy is a civil lawsuit for damages.  You need to question what they have done which caused damage and if the damage is recognizable, which I believe it is.  You need to determine what the measure of damages is, and how much of a judgement you will receive if you are successful in pursuing this lawsuit against them.  Under the circumstances, you have a road which is obviously getting close to the end of its useful life.  However, it was still usable at that point, but you have plans to re-pave the road in the near future, and we are acknowledging the road needed work as it was, but the damages have done two things.  Firstly, it accelerated the need for you to go ahead with this project and secondly, it may have caused some damage beyond the road’s former condition.  Perhaps you could have put a layer of asphalt down along with a minor base repair.  However, you will have to do substantially more base repair as a result of the damage they have done.  All of this will be based on engineering testimony as to how badly they damaged the road and what the effect was.  I believe your appropriate legal remedy is to pursue damages in a lawsuit, but I am not certain a measure of the damages will justify it.  Alternatively, you can try to negotiate payment of some measure of damages.

            Mr. Bissell stated our agreement with them and their attorney, Mr. Wood, is they can cut the road if they install the water line from the south to the north.  This is in writing and I believe we should abide by it.

            Mr. Cox stated the agreement was being negotiated under the perception the water line was located on their property and had to be relocated to accommodate their project.

            Mr. Bissell stated this is not in the material I read this morning.

            Mr. Cox stated this was a substantial basis for them agreeing to this negotiation.  The fact the lines are located where they are, the argument is the agreement was made based on an error in the facts.  If you have error in facts in the negotiation, the basis of the agreement is flawed.  Therefore, the agreement itself is flawed.

            Mr. Bissell stated this is not in writing.

            Mr. Cox stated these arguments are going to be raised.

            Ms. Dillon stated we told them not to cut the road.

            Mr. Cox stated when we sent the letter we also said you are not going to live up to your end of the agreement, so we do not have an agreement.  The basis of trying to judge it on the replacement cost for the line is probably not going to be a successful position to take in litigation.

            Ms. Dillon asked what about the fact we told them not to cut the roads and they did it anyway?

            Mr. Cox responded it will go to the measure of damages, which is evident.

            Ms. Dillon stated it seems as though the contractor can do anything they want to do.

            Mr. Cox stated they cannot do anything they want to do without liability for damages.

            Ms. Dillon stated they are also not going to install a meter for the water they were taking.  It seems no matter what we tell them, they do what they want anyway.

            Mr. Cox stated the remedy in this instance is to file a petition for an injunction to prohibit them from hooking up without a meter.

            Mr. Lambert asked if they refuse to repair the road, are we allowed to stop turning on the valve which delivers water to them?

            Mr. Cox responded at some point they will have to come to you for services, and if you have issues related to the provision of those services you can refuse to provide them.  I suggest you raise the issue and ask what their intentions are with regards to the roads once all the heavy equipment is moved with the expectation for re-pavement.

            Mr. Gatti stated with the Board’s permission, perhaps we should take this approach.

            Mr. Ziko stated I believe we should proceed right now as long as it does not take 90 or 120 days.

            Mr. Gatti stated they should be told their water is going to be shut down unless they re-pave the street.

            Mr. Cox asked how much of the heavy equipment work do you believe is currently done?

            Mr. Ziko responded I believe it is 75%.

            Mr. Benson stated they did some significant work on utilities which are going to cross the road.  Perhaps you, the attorney and engineer for Orchid Cove as well as myself should sit down to try to address these issues.

            Mr. Cox stated I do not have a problem doing this.

            Mr. Gatti stated if the Board agrees, set a meeting up with Mr. Benson.

            Mr. Bissell stated you should record the meeting and have someone type and email it to the Board.

            Mr. Benson stated you and I should get together after the meeting and set up the appointment.

            Mr. Cox stated I will email you the dates when I will be in town.

            Mr. Lambert asked are the easement questions for the pumping station we discussed this morning going to be handled?

            Mr. Cox responded I spoke briefly to Mr. Benson, and the necessary exhibits with regards to the irrigation pump are prepared.  We will get them out to SWFWMD early next week.

 

FIFTH ORDER OF BUSINESS                               Engineer’s Report (Continued)

            Mr. Benson stated I am going to update you on the Orchid Cove issues.  I spoke to Mr. Mike Neely, the engineer with RWA working on the Orchid Cove project, and we also spoke again right before this meeting.  Mr. Neely contacted me a few weeks ago and asked for approval to cross the road with a storm sewer going from one pond to another with a 42” pipe.  I spoke with Mr. Cox, and we communicated back to Mr. Neely we needed to bring this request to the Board, and reminded him there were some outstanding issues between the CID and his client, and we did not give him authorization.  When I spoke to Mr. Neely today, he was not aware of the fact his contractor broke the water line.  They have the intention of a much larger excavation involving the installation of a 42” pipe across the road, which will be in potential conflict with our water line.  They have a proposed solution, which is one of the reasons I suggested Mr. Cox and I meet with the attorney and engineer for Orchid Cove since there is a series of outstanding issues needing to be resolved.

            Mr. Gatti stated they have to cut a 42” line because it will be too expensive to jack it.

            Mr. Lambert stated this is not our problem.

            Mr. Gatti stated I know this, but the point I am making is we have some leverage.

            Mr. Benson stated there is a series of issues which need to be taken care of and hopefully we can determine some kind of remedy at this meeting which we can propose to the Board.

            Mr. Gatti stated the remedy is to re-pave the street.

            Mr. Benson stated from what I heard a few minutes ago and at previous meetings, there is a question about this water line replacement, and we need to deal with all of these issues at once.

            Mr. Ziko stated there will also be an additional cut for the sewage to get over to the other side.

            Mr. Benson stated I believe you are referring to the force main crossing which was made earlier this week.

            Mr. Ziko stated I did not see the force main go in, but they were putting a saddle on the force main on the other side of the lake.

            Mr. Benson asked what line did they install earlier this week?

            Mr. Ziko responded they installed two electrical lines and an irrigation line.

            Mr. Benson stated it was in the vicinity of the pump station.  When Mr. Neely and I spoke before this meeting, we discussed what lines were in and what lines need to be in.  Again, I believe we should have a meeting and bring all of the facts back to the Board.

            Mr. Bissell stated we do not have plans at the plant on this project.  Does the CID have to furnish plans?

            Mr. Benson responded I thought I gave plans to Mr. Stephens.  However, I have plans in my office, but I am not certain whether or not they are final, but I will ensure we get another updated set.

            Mr. Lambert asked have they been talking to Mr. Stephens before they tap into these lines so we are aware of it?

            Mr. Benson responded they were told this was the procedure.

            Mr. Ziko stated they spoke to him, but did not give him correct information.  They said they were going to put the saddle on at 11:00 a.m. yesterday, but did this at 9:00 a.m. when Mr. Stephens was not present.  They do all of this before anyone from POI can view it, which is not right.

            Mr. Benson stated one of the issues I spoke to Mr. Neely about this morning was the procedures for our new water line.  When they install the new water lines for their community, they need to tie into our water line in order to take water from the line to flush the new lines and get them bacteriologically clean and tested.  I told him our concern is we need to meter the water, but we have not heard anything from either his client or him with regards to the temporary construction meter.  I told him this is going to be a sticking point in relation to your issue about turning on the valve among other things.  It was in anticipation of these other issues that I suggested to Mr. Neely we probably need to have this meeting, and I believe there are a few more items which have been added to the list of what we need to talk about.

            Mr. Lambert asked did we have to use a backflow preventer to avoid contamination of our system?

            Mr. Benson responded there is a standard detail required by the county on their drawings.  The main issue is whether or not the contractor does what he is supposed to do.  We need to know who is inspecting the work and at what level does the CID need to have an inspection.  We explained to the developers and contractors they need to contact Mr. Stephens.  He is the Field Manager and needs to be there in order to ensure work is done correctly.  They gave him a time, but did the work two hours earlier.  We will raise these items at this meeting and hopefully we will come to a satisfactory resolution.

            Ms. Dillon stated I believe you know where we stand on many of these issues.

            Mr. Benson stated Mr. Cox received a letter from Lane Wood with regards to the POI CID utilities on Orchid Cove property, and in particular reading from the third paragraph it says, “our primary concern as of now is the existing 4” force main encroaching along the northern boundary of our client’s property, where the District has no recorded utility easement whatsoever”.  Mr. Cox and I were in communication about this.  We have an easement which I believe is for the 4” pipe dated in October 1992.  I faxed it to Mr. Neely this morning because he did not receive it, and he said “I think that looks like it probably is in the place we found the pipe”.  They are going to verify this on their side, but it appears this concern is covered.  There was another concern in the same letter saying “the force main that runs along their eastern property boundary that goes up to the wastewater plant may not be in the easement in all locations”, and they had not located it.  However, once they did locate it they shared the information with us.  When I spoke to Mr. Neely again this morning, he told me they went out and did more locations, and it appeared the line is in the easement except for one or two small deviations, but it did not appear to be a major issue.  We will take care of all issues, but it appears the easements are acceptable.

            Mr. Bissell stated I do not recall receiving a copy of the letter.  Since we made it quite clear we should have copies of all correspondence dealing with the CID, why was the Board not emailed this letter?

            Mr. Benson responded it was reported last month by Mr. Cox.

            Mr. Bissell stated it may have been reported, but we do not have a copy.

            Mr. Benson asked are you listening to the Board’s concerns?

            Mr. Cox responded these are routine matters in which they requested and we provided information.  Since you have staff handling these issues, does the Board really need to get involved in routine details?

            Mr. Gatti responded we want to see correspondence of a critical nature which is going to require action at the Board meeting.  Is this a reasonable assumption?

            Mr. Cox responded that would be understandable.

            Mr. Ziko stated they are saying our force main on the northern side of their property is out of the easement.  Do they believe we are going move this force main or are they just trying to not do what they are supposed to be doing?  They seem to do whatever they want and tell us we are wrong.  I believe the Board should be informed of what they are doing.

            Mr. Cox stated they told us they found this easement.  We researched it and found them to be correct.  It is not necessary for the Board to take action, since it is not going anywhere.  We take care of these issues for you.

            Mr. Ziko asked what would they expect us to do if we did not find the easement?

            Mr. Cox responded this is an issue which needs to be brought to your attention.

            Mr. Benson stated this is an informational update.  With regards to the south hotel property, we heard from their representatives in previous meetings about their plans with regards to development of this property.  The engineer working on this project is with our firm in the Land Development Division.  They sent me a letter requesting a water and sewer service availability letter and I responded back telling them they do not have sufficient ERCs for this project.  They are aware of this, and they are going to work with their client.  The owner of the hotel is probably going to come back and say how many ERCs they need and we developed a property already up to a certain level.  There is a certain amount available and they are going to request whatever they need to utilize the ones they already have at the first phase.  I explained to them this needs to be done in writing and very clearly went through our procedures.

            Mr. Gatti asked are they asking you for the accounting letter required by the county stating they have utilities available?

            Mr. Benson responded they are going to follow our procedures and you will probably have something at next month’s meeting assuming they progress to this point.  We are going making sure everything is being done following your precedents.

            Mr. Gatti asked is the purpose to open a hotel?

            Mr. Benson responded they want to build new multi-family buildings and they have ERCs available allowing them to build one building.  They are going to come back with a request which follows our procedures.  I am being clear about this because the engineer involved is in another division of our company.

            I want to update our capital improvement projects.  With regards to the project at the wastewater treatment plant in which the CID has a contract with Parkson to supply equipment and do a certain amount of installation of the equipment, we also were authorized to design the project which is complete.  We solicited requests for bids and identified various parts of the project which need to be put in a sequence.  As a re-cap, a concrete slab was going to be installed and the equipment is going to be installed on top of it.  A metal building is installed around the equipment after some of the equipment is installed, which involves some interconnecting piping work.  Once this is done the electrical contractor will hook up all the electrical.  This is the way the project was designed and we solicited this for bid because it involved a series of small projects coordinating with the Parkson work.  We sent letters to all the contractors doing this type of work in the area, and requested they provide us written and sealed bids.  We received most of those prices.  However, we still have bids coming in, and I do not want to mention any numbers which could potentially poison the pricing we are still waiting for.  The combined price of these different pieces is probably going to cost just under $500,000, which is going to be higher than our original estimate.  We also received prices from two general contractors to do the entire job.  Their prices were both substantially higher than the sum of the pieces by taking a smaller contractor to do each part.  We have gone through extra effort for this and although I cannot give you the specific numbers at this time, I already have enough information to know the savings to the minimum is going to be more than $300,000, and could have been more than $500,000 additional if we solicited it out as a single contract.  Even though it is more than the budget, we received prices which were more than double in many areas.  This is the kind of market we are in with all the contractors being so busy.

            Ms. Dillon asked is this the work which was going to be necessary whether or not we received the free equipment from Parkson?

            Mr. Benson responded that is correct.  When Parkson offered pricing with an estimated discount of approximately half price on their material, it was a better deal because the price would have been higher than what we were comparing their original offer to.

            Mr. Lambert asked is this going to be fully enclosed in a building?

            Mr. Benson responded most of it is going to be open sided, with a roof over it.  It is comprised of a frame and roof.  Next month we will have these bids and recommendations to award, but it is going to be higher than the original budget.

            Mr. Lambert asked have we got our permit yet?

            Mr. Benson responded the process with the DEP is such they have certain timeframes they respond to, and often when they are not quite ready to give you something, they send a letter asking more questions which is part of their process.  We waited until the time was up to contact them and this time they told us we were correct.  Their time was up and they issued the permit.  There are no more rounds of questions to give them more time.  Although they will issue the permit, we cannot start construction until we have the permit which is going to happen soon.  One other item is the contract we have with you on this project.  We put in a budget which included time and expense because it was difficult to estimate, and we said we would do the work and bill you as the work progressed.  We are now at the point of awarding a contract and not actually doing all the installation, and we are running out of money.  When I come back next month I will have to request not only the cost and size of the project increased, but the engineering is also going to increase.

            Mr. Lambert asked will you be able to have some of this information available for the budget meeting?

            Mr. Benson responded I will.  When you asked about the manager having a CIP update, I told Mr. Goscicki I will get it to you as soon as I have it, but in order to try to save an additional $100,000 potentially we extended the bid time and received more bids.  If I stopped the process a few weeks ago instead of encouraging more people to give me sealed bids, we would have had a higher price.

            Ms. Dillon asked where do we stand on the DEP violations issue?

            Mr. Benson responded Mr. Dick will concur this issue is working out as well as possible.  Mr. Dick, Mr. Stephens and I met with DEP, and we went through the explanation of all things this Board authorized over the last year and reminded them the fact they have not issued the permit is delaying the project.

            Mr. Dick stated I believe it was a positive meeting which does not happen often.  DEP admitted the delay is their fault, and when Mr. Benson presented all the facts they had to acknowledge they were remiss in not getting us the permit to begin the process, and the issues they found during their inspections will be corrected with the improvements Mr. Benson put together.  They took responsibility for this which may be one of the reasons they are getting the permit out so quickly.

            Mr. Benson stated in some areas DEP told us they were not going to fine us unless someone in Tallahassee or EPA in Atlanta told them they had to.

            Mr. Lambert asked are you in the process of coming up with some condition reports for the plants before we transition?

            Mr. Benson responded we are in the process of scheduling this, but unfortunately some other issues arose.  However, I believe we probably can get it done this month.  Some of this needs to be documented prior to their entering into the contract for everyone’s security to understand the base condition.  In addition, we have to get our engineer’s report out in June.

            Mr. Ziko stated I noticed we paid for the engineer’s report in the last check register for $6,000.  Is it available?

            Mr. Benson responded in my invoice to the CID each month when we do work toward this effort we identify those as line items and the hours are clearly indicated.

            Mr. Ziko stated you charged $2,300 to each fund for a total of $4,600 for the annual engineering report, and I wanted to know if we could look at it.

            Mr. Benson stated this is not for the entire report, but for some work toward the report.  It has not been issued yet.  I do progress throughout the year toward the report, and issue it once per year as a document.

            Mr. Ziko stated with regards to the lift station we reviewed last month, it appears it was leveled out.  Do you know how it was done?

            Mr. Benson responded I spoke to the President of Florida State Underground on the telephone a few weeks ago after we sent the letter you asked us to send.  The owner and his engineers passed it to the contractor, who called me.  I explained our concerns and I told him I did not expect the structure to be taken out of the ground and started over.  I told him they need to do everything possible to make the pump station acceptable, and that we will look at it after this is done.  However, he has not called back to tell me it is complete.  The actual cylinder of the wet well has not been straightened.  I believe they leveled the bottom, put the equipment in that level and put the top in leveled to make it functional.

            Mr. Ziko asked can you look at it to ensure it is done properly?

            Mr. Benson responded I will do so when they tell me it is complete.  I want to give them a chance because I told them they need to do everything possible to complete this.  We will inspect it after they tell us it is done, and we will report our findings to the CID Board.  As indicated in the letter, if the developer comes to this Board in the future and offers to donate these utilities to the CID, we will have to make these decisions.  I wrote a letter to Orchid Cove before they started construction which stated they may consider acceptance of these utilities at some point in the future, but we will not guarantee them.  We sent them a letter telling them they need to fix the wet well in order for the Board to accept it.  At some point in time, it is their decision to propose acceptance of these utilities.  However, you always have the right to not accept it.  There was an issue regarding the newest phase of Stella Maris which happened earlier this month, and there were questions about the water line which I need to put on the record because I spoke to individual Board members.  This is not a system we have ever accepted nor ever will accept because the water lines under the various condominiums are not in public right-of-ways, but they are underneath a parking lot or driveway we have not in the past been offered nor have we ever to my knowledge accepted those systems.  The only time we accepted them in the past is at the same time you accept the roads in order for you to get in to service the utilities.  There is a difference between private systems and public systems which you accept.  The private systems will receive or be provided services like the condominiums, but at some point in time we may or may not have the issue of acceptance of those systems, and I think we will deal with it then.

 

SIXTH ORDER OF BUSINESS                              Field Manager’s Report (Continued)

            Mr. Dick stated I want to explain why we have not started the water loss project.  Initially we were going to use different technicians to do the evaluation, but since meter readers are more experienced in identifying where these meters should be connected, we are bringing in meter readers from Miami who will more quickly identify whether or not a home is being served, or if the meter is hooked to the wrong house.  However, due to scheduling conflicts it will not happen until next week.

We are on schedule with the valve exercising program for this year.  Mr. Benson put together a schedule and map broken up into quarterly exercises for us to follow.

            Mr. Ziko asked do we have a log?

            Mr. Dick responded yes.  The main flushing program which was brought up at the last Board meeting has been initiated.  We identified all locations with the exception of Morning Star Cay, and there are workers over there as we speak trying to find it.  If they cannot find it, they are prepared to tap the main and install a flushing point.  However, all the remaining ones have been initiated.  The rule requires a minimum of quarterly flushing.  However, it may have to be done more frequently depending on the water quality, but we will establish a schedule to determine the water quality.  During summer months when some of the residents go up north it may need to be done more frequently in order to maintain the water quality.

            Mr. Ziko stated I noticed the other day when they broke the water main Mr. Stephens manually set off the automatic flushers.  Is this procedure of flushing all the dead ends going to be instituted whenever we lose water?

            Mr. Dick responded without fire hydrants he has to find another location to do the flushing, which will be these dead end locations.

            Mr. Ziko stated when we break a main line containing potable water we do not care about flushing the fire hydrants.

            Mr. Dick stated since we do not have hydrants available, we have to use these points to flush out any sand or debris which has gotten into the mains.

            Mr. Ziko asked is he going to flush all the dead ends?

            Mr. Dick responded if all the hydrants were tied to the potable water lines, standard practice is to get upstream and downstream of the break.  It may not be necessary to go all the way to Newport Cay when the break is on this side.  It depends where the break is located.  They want to do an adequate job of flushing since bacteriological testing is required.  It will be on a case by case basis as to how many flush points will be used.

            Mr. Benson stated it sounds as if you chose the two farthest points in the system, which is the safest way to do this.

            Mr. Ziko stated this is great for residents living at the end of Wilderness and Newport, but the residents on Evening Star Cay and Venus Cay are dead-ended as well and the area was not flushed out.

            Mr. Dick stated the stream of water is going to go past your street, and the contaminants will go to the least point of resistance and out this particular point.

Mr. Benson mentioned the break on April 17th at the new Stella Maris project.  It was a 2” service line going to one of the condominiums.  We isolated the break to remain in compliance with pressure and storage.  Although we did not fix the line, it will be our practice in the future.  We were close to running out of water, and I want to thank Mr. Bissell for helping us.  He actually found the leak and we had approximately 45 minutes of storage remaining, and it was in a location which was difficult to see.  We received DEP certification for the water main from Mr. Burgesson and we have a copy at the plant.

There has been a lot of discussion about the Orchid Cove water and force main taps, and I believe we have gotten the contractor’s attention.  Whether they follow all of our requests and demands remains to be seen, but I believe they realize they cannot do whatever they please without repercussions from the Board.  We are asking them for schedules so we can witness and inspect taps or holding them accountable for the water and procedures they use.  Although I believe we have come a long way, we want to go further with this, but compared to other past issues we made many improvements, and we are going to have these projects done in a well-organized manner.  We will bill them for the water which is used whether it is for flushing or pressure testing.  I am pleased we made this progress on our end.  We established some procedures with Mr. Stephens and his staff.  For example, meters will not be set without proof of DEP certification on the new mains in order to avoid the problem we had at the Stella Maris project.

Mr. Benson discussed the filter rehab, which is actually complete.  All the new parts were put in and we are currently disinfecting the filter.  Although we have not put the new filter media on line, it is complete and we anticipate putting this in service in the next couple of days.

All of you received an electronic copy of the landscaping RFP put together by OLM, and I also brought a hard copy today for marking up.  Mr. Michael Lackey of OLM, Inc. is here from Atlanta today to answer any questions and explain the RFP.

            Mr. Lackey stated we prepared a Class A RFP for your property which we use through the state of Florida and at Disney World.  It was prepared for this site to be implemented and sent out for contractor form pricing.

            Mr. Lambert asked do you have contractors you have worked with previously in this area who will bid on this?

            Mr. Lackey responded we have several.  I come to the Fort Myers area once per month for a week-long period, and besides presenting RFPs and bidding out our company also does monthly inspections.  There is a performance payment section in this RFP, and if we were to institute those monthly inspections, the performance payment item will come into effect for this site.  Basically it says we will come once per month to review the entire site and provide a grade for the property, making deductions for items which are not correct or done properly.  If they do not meet a certain standard or score, they will fail for the month and 25% of the monthly payment may be withheld.

            Mr. Lambert asked are you the inspector we will see here?

            Mr. Lackey responded yes.

            Ms. Dillon asked will you be the first person we talk to if we believed something was not being done correctly?

            Mr. Lackey responded yes, and I will facilitate this procedure with whomever you decide to choose as the contractor.

            Ms. Dillon stated we have had a terrible problem with watering.  The sprinklers run on the wrong days at the wrong times.  I do not understand why this is so difficult, since most of us have sprinklers at our homes.

            Mr. Lackey stated it is a matter of proper management and maintenance of the system.  We did a site visit last month and again this month.  Before I came to this meeting I drove through the site and noticed several issues and problems which you are presenting.

            Mr. Lambert asked have we given you direction to issue this bid?

            Mr. Lackey responded that is correct and the reason for this meeting today was to present this to you.  We will be accepting any suggestions or revisions from you, which we hope to have back on Monday in order to be able to verify them.  I have set up a timeline with Mr. Dick from Severn Trent for the advertising of exterior landscape maintenance, receiving those bids and turning them over to Severn Trent for review.

            Mr. Lambert asked will any new employee coming to work on this site be drug screened or is it done randomly?

            Mr. Lackey responded a newly hired landscape contractor usually goes through an initial drug screen and any incident or issue gives cause for random testing.

            Mr. Ziko asked have you looked at the previous contract dated February 1998 to see how the breakdown was made on scheduled details of items?

            Mr. Lackey responded I did have a copy of it.

            Mr. Ziko asked can you possibly incorporate something like this into your bidding procedure in order for us to see what they are coming back with?

            Mr. Lackey responded the RFP we sent you has a breakdown in the back for pricing, a seasonal color breakdown, as well as a frequency chart which will give you the total unit cost for each item and the total cost for all items included.

            Mr. Ziko stated it looks good, but this one gives a breakdown of what should be done to each area, whereas yours is generalized.

            Mr. Lackey stated we can break it down into different sections and provide pricing phases for each area.

            Mr. Ziko stated if you sent your RFP to a landscape contractor it will be difficult for him to bid on whereas this one will be quite easy to bid on because of the way it is broken down along with the map of the area of what the landscape contractor is expected to do.

            Mr. Lackey stated the map and verbal direction will be included with this RFP, but we are going to revise the map and ensure it is correct before it goes out.

            Mr. Lambert stated supposedly the county is going to landscape the center area between the road and we agreed to maintain the area when this happens.  Obviously, this is going to require workers to wear reflective vests and add signage among other things.  I do not know where they are at with this process and I do not know how to incorporate it at this point in time with what we are doing with you.

            Mr. Lackey asked is there a landscape plan implemented for this?

            Mr. Lambert responded I do not know whether or not any Board member has this.  The woman previously in charge of this died.  However, I was able to pull out an email Patricia sent which basically listed all the people she worked with at the county and state to get this done.

            Ms. Dillon stated I wonder if Mr. Lackey can get with Dennis.

            A resident stated he can give him a call.  If anyone has input, it is Dennis and he has been working with Mr. Colletta.

            Ms. Dillon stated I have been looking for someone in the community to pick it up, but I will not do this now.

            Mr. Lambert stated this information has a list of people to contact.

            Mr. Lackey stated my only comment is if we did want to try to price this for the contractor, they will need a plan to see exactly what they are going to maintain because it is going to be difficult if it is not there for pricing.

            Mr. Lambert asked how difficult will it be to add that on later?

            Mr. Lackey responded it is not difficult.  You can always add amendments to the RFP.

            Mr. Lambert stated I do not recall seeing it in here, but as long as it is something we can add on without having to re-do the entire bidding process.

            Mr. Lackey stated you will be able to enter this in as an amendment to the contract.

            Mr. Lambert stated I do not know what this means as far as whether or not the contractor would want this job since it is an extra effort when it gets going.

            Mr. Lackey stated we will be able to price it with the contractor at that point.

            A resident stated I do not know if the sprinklers belong to the condominiums or exactly what the line is, but they are spraying all over the car.

            Mr. Gatti stated this is not part of this discussion, but it is the type of thing he will look at.

            Mr. Lambert stated I understand we had some water problems this past week when the line broke, and I asked my wife if anyone informed her we should be boiling water.  I did not see a sign on our sign post for our condominium.  Was there any alarm sent out to residents to boil the water?

            Mr. Dick responded I instructed Mr. Stephens to put it on all the local television stations and in addition, put a posting at all of the recreations rooms and areas where the sign postings are.  He told me he had already done the television stations.

            Ms. Dillon stated Mr. Stephens said he was going to have it put on Channel 11 as well.

            Mr. Dick stated you are correct, but he would also make the postings.

            Mr. Lambert asked does anyone here know if it was posted?

Some residents responded no, it was not done.

Mr. Lambert stated I believe we are failing when it comes to making a notice and posting it up on these boards.  This is not the first time we failed to do this, and I suspect unless we change things it will not be the last.

            Mr. Ziko stated we have also asked that a statement be included on the water bill saying “whenever you lose water pressure boil your water”.

            A resident asked for how long?

            Mr. Dick responded this varies, but we are supposed to rescind the notice once the bacteriological testing has been completed, which ideally should be done within 48 hours.  If a test fails, we have to re-test, and it may possibly be three or four days.  However, we are obligated to notify you the water is not safe to drink, but we do not want to have an open-ended boil water notice, because it defeats the purpose.  People assume they can now start using the water for consumption, which we do not want.  We want to rescind it once we have verified the water is bacteriologically acceptable.

            A resident asked do we still have to boil our water?

            Mr. Dick responded I will have to give this to the operative since he has to get the results back from the lab.  There is a 24-hour incubation period.  Once we deliver the samples, we do not get results for 24 hours and it requires two consecutive days.  We should have the results today which I assume are going to be acceptable and we can rescind the notice.

            Mr. Gatti stated if everything goes right, you have to boil water for 48 hours.

            A resident asked since I was not home when the water went off, how will I know?

            Mr. Dick responded this is a challenge we face and we use various methods.  In smaller and more manageable areas we will hand deliver notices door by door.  Unfortunately, this situation involved the entire system, which is difficult to handle.  This happened on Fort Myers Beach.  Two weeks later, a customer called and told me he just found the notice two weeks later, and he said, “you know I was not feeling well during that period.  I will bet my water was contaminated”.  I told him we went to his door.  He said, “you put it on my front door and I do not go in that door.  I go in the back door.”  The only ideal way is to leave the water off until we get the test results back two days later and determine it is safe to drink.  This is a precautionary notice, and there is no foolproof way unless we speak to each person.

            A resident stated there is a sign post in every area.

            Mr. Dick stated we try to get the message across as much as possible through television, radio and postings.

            Mr. Lambert stated in the past at one time in particular during the hurricane, Mr. Stephens told us he did not have time to do this.  Fortunately, the sheriff was driving around and took the task on for as many people as possible.  However, we have more help over there and 10 or 12 notices should be printed out and posted on these boards.

            Mr. Dick stated I agree with you.

            Mr. Lambert stated although this is not 100%, it is much better than what is currently being done.

            Mr. Dick stated I agree with you.

            Mr. Gatti asked does it make sense to make up an emergency flyer, which when people see it on the board they are aware something is happening.

            Mr. Lambert stated you can use a piece of colored paper, and when you drive by and see it, you will know to go over and read it.

            A resident stated you should have the same color flyer for all emergencies.

            Mr. Dick stated those are all good ideas.  In Gateway, there are two main entrances, and we put a sign up on the road so people driving home will see it.  There are several ways to do this.  The colored paper is a great idea.  However, we will also look at other ideas.

            A resident stated since renters do not pay the bills, they do not see notices on billing, and do not look at the boards since it is not of interest to them.  The notice has been focused on the owners, but there are a large amount of renters, which you may want to consider.

            Ms. Dillon stated people can tell the renters if they see a yellow notice on a board to read it.

            Mr. Lambert stated perhaps a realtor can sign something this size and we only need three to cover all the property entrances.

            A resident stated on the beaches they put a flag up when there is an undertow.  We have a large flagpole right across the entrance.  Perhaps you can run a red flag underneath the American flag which says “do not drink the water”, to notify the people as well because they need to know what this means.

 

SEVENTH ORDER OF BUSINESS                        Discussion of Open Items

Reuse Water for Irrigation

            Mr. Ziko stated I believe this is an ongoing item.

            Mr. Benson stated we told you the price from with the contractor last month, and someone said to wait until the other project was complete.  Do you want us to ask this contractor to do the work?

            Mr. Ziko responded I do not recall this.

            Mr. Benson stated we received three bids and the lowest bid was a little over $80,000, which was certainly more than we expected.  Do you want us to ask them to start the project?

            Mr. Lambert asked you have the bids and you are ready to start the work?

            Mr. Benson responded we have the prices and the other equipment which has been sitting at the plant.  Should we go ahead and do it?

            Mr. Lambert responded I have one comment, and I was hoping Mr. Goscicki would have the information here.  When you look at the revenues which were budgeted to be brought in this year and our actual amount of revenues which have come in at this point, we may not come close to what we budgeted.  I asked Mr. Goscicki to talk to the county and determine whether or not we have too much delinquency or when we should expect our last lump of money to come in from the county.  We may want to delay sending these contractors to work until we know what our income is going to be for the remainder of the year.

            Mr. Bissell stated when we meet on the budget in two weeks, someone from Severn Trent should be here with all of this information.

            Mr. Lambert stated unless we receive a sizeable amount of money from the county, we are going to be short on what we budgeted.

            Mr. Bissell asked is the money we received for the RV park in our report?

            Mr. Cox responded it should be since it was received last year.

            Mr. Lambert stated it is in last year’s budget.

            Mr. Ziko stated we should leave this item until we determine what we are going to do.

            Mr. Gatti stated let’s look to get the information at the budget review and go from there.

            Mr. Lambert asked do we have a timeframe on this estimate with regards to starting the work?

            Mr. Benson responded the contractor with the low price is probably going to have a low price on some work at the wastewater plant, and he agreed if he gets both projects he will do both at the same time.

            Mr. Lambert asked can hold off on this a while longer?

            Mr. Benson responded yes, and we also have not been producing irrigation quality water at the plant.  Therefore the pumps which will be installed will not be used immediately.  All of this relates to this permit which is going to clarify it, although the existing permit had some provisions to use the line.

            Entrance Monuments

            Mr. Ziko stated this has already been discussed.

            Everglades Restoration

            Mr. Ziko stated since our last meeting I have not been able to get in touch with the people involved.  We will try again and ask if they can give us a presentation.  However, I do not believe they know what is going on after reading the local newspaper.

            Discrepancy Between Gallons of Water Pumped and Gallons Billed

            Mr. Ziko stated Mr. Dick briefed us on this subject.  Since he is working on it, we will keep it on the list.

            Paint Fire Hydrants

            Mr. Ziko stated the fire department told us they wanted to paint them, but some of them were painted the wrong color, as we discussed earlier.

            Research Capacity of Facilities with Possibility of adding additional ERCs

            Mr. Ziko stated Chief Wilson is going to update us on the fire station.

            Mr. Mack stated Mr. Holecek will explain his position to the Board.

            Mr. Gasaway stated we have this parcel of land on the east side, north of your plant, which is approximately 2.9 acres.  Do you know what you will use for acreage?

            Mr. Mack responded the fire station needs approximately 1½ acres, so the balance will be what we talked about for the back of the plant.