MINUTES OF MEETING
COMMUNITY IMPROVEMENT
DISTRICT
The regular meeting of the Board of Supervisors of the Port
of the Islands Community Improvement District was held on
Present
and constituting a quorum were:
Richard Gatti Chairman
Bernard Wolsky Supervisor
Leonard Gross Supervisor
Ted Bissell Supervisor
Also present were:
Darrin Mossing Manager
Dan Cox Attorney
Ron Benson Engineer
Tim Stephens Field
Manager
residents
FIRST
ORDER OF BUSINESS Roll
Call
Mr. Gatti called the meeting to order at
SECOND ORDER OF BUSINESS Approval
of Minutes of the July 19, 2001 Meeting
Mr. Gatti stated the minutes of the
Any motions or statements made by Mr.
Bissell were amended to reflect Mr. Burgeson instead.
ON MOTION by Mr. Bissell, seconded by Mr.
Wolsky, with all in favor, the minutes of the
THIRD ORDER OF BUSINESS Public
Hearings
A. Consideration of
Adoption of Rule Amending Certain Rates and Charges of the District’s Water and
Sewer Utility System
Mr. Mossing stated over the past few
years the district auditors have requested that the District establish reserves
for the long-term renewal and replacement of capital equipment at the utility
plant. Dr. Benson has created a detailed long-term capital replacement program.
It outlines capital facilities and their useful life. The annual funding
requirement determined was $95,000. Those funds are to be collected as part of
the non-ad valorem tax roll. Since there are certain properties that are not
paying their annual property taxes, a rate of $378.77 per ERC has been
determined. The current rate, which represents the standby fees being
collected, is $240.25. To clarify, this is one of three amounts that make up
the non ad valorem assessment. The other two are the operation and maintenance
assessment for the General Fund and the debt service assessment for the bond
issue.
Mr. Gross stated I was under the
impression that we could not increase standby fees without demonstrating an
increase in the services rendered.
Mr. Cox responded we have to show that
the benefit to the property owners as a result of the payment exceed the amount
of the special assessment and that no property owner pays more than a similarly
situated property owner.
Mr. Gross asked what are the benefits
derived from the increase in the standby fees?
Mr. Cox responded the ability to maintain
the level of service of the utility facilities in order to provide the water
and sewer to the properties as they are developed.
Mr. Wolsky asked so the current users
will not receive any additional benefit from this?
Mr. Cox responded this is not related to
consumption. Fixed costs are funded through the standby fees. The utility
charges fund the variable costs.
Mr. Gatti stated we will now open this
hearing to questions from the audience.
An audience member asked how much will
the new standby rate be?
Mr. Mossing responded $378.77.
An audience member asked if I have
already paid the debt reduction what will be on my bill?
Mr. Mossing responded the operations and
maintenance of $309.50 and the standby of $378.77. Your total non ad valorem
assessment would be $688.27
ON MOTION by Mr. Wolsky, seconded by Mr.
Teneriello, with all in favor, the Board closed the public hearing.
ON MOTION by Mr. Wolsky, seconded by Mr.
Teneriello, with all in favor, the Board adopted the recommended standby rate
of $377.78.
B. Consideration of the Adoption of the Budget
for Fiscal Year 2002 (Resolution 2001-5 and Resolution 2001-6) and Levy of Non
Ad Valorem Assessments (Resolution 2001-7)
Mr. Mossing stated there are no major changes to the General
fund from the prior year other than increases and decreases based on actual
expenditures. The Debt Service Fund Budget has remained the same for all of the
property owners and is based on the debt allocated to their property. The Water
and Sewer Fund budget reflects the amended standby rate. That rate change was
the major change to that budget.
Mr. Gross asked where will the increase approved be
reflected?
Mr. Mossing responded we will have a separate investment
account set aside for those funds.
Mr. Gatti asked does the increase in usage, as a result of
the additional building that has been going on, offset the uncollectible
situation?
Mr. Mossing responded we are right on budget with the user
fees. Hopefully our position will improve when all of the new users come
online.
Mr. Wolsky asked why was the standby fee removed from the
monthly utility bill?
Mr. Mossing responded we could not discriminate between the
property owners. We either had to be entirely collected monthly or all of the
standby charge had to be put on the tax roll. We had been collecting it through
the monthly utility bills but many vacant lot owners were not paying it. We had
no recourse against lot owners until some future time when they would need to
connect to the water system.
Mr. Wolsky asked don’t you have the same problem if the
certificate does not sell?
Mr. Mossing responded yes but there are many more vacant
property owners that pay their tax bills. It has been a good decision of the
board’s part.
Mr. Cox stated the benefit of putting these fees on the tax
roll is that there is a legal mechanism for collecting those fees that do not
require us to get a judgement before we can file a lien against the property.
Mr. Bissell asked who gets the 6% discounts and commission?
Mr. Mossing responded the tax collected gets 2% and the
remaining 4% is allowed for discounts to the property owners who pay early. We
gross up the assessment by the 6%.
Mr. Bissell asked have we repaired any roads this fiscal
year?
Mr. Mossing responded no. That was in the prior year.
An audience member asked don’t we already have a reserve
fund? I believe it was $10,000 per year and if it was not used it would get
rolled over into the next year.
Mr. Mossing responded we have about $100,000 in the General
Fund. There are still two more months of operating expenses to be paid for this
fiscal year. At the end of the year any money that carries over would be
considered reserves but because of our collection problems we are keeping all
of the money in the system.
An audience member asked what is the problem with collection
of the assessments?
Mr. Gatti responded there are certain landowners that are
not paying their assessments.
ON MOTION by Mr. Gross, seconded by Mr.
Wolsky, with all in favor, the Board closed the public hearing.
ON MOTION by Mr. Wolsky, seconded by Mr.
Gross, with all in favor, the Board adopted Resolution 2001-5 Adopting Final
Road and Drainage Budget for FY2002.
ON MOTION by Mr. Wolsky, seconded by Mr.
Gross, with all in favor, the Board Adopted Resolution 2001-6 Levying an
Assessment for Fiscal Year 2002.
Mr. Cox stated last year we were directed
by the holder of the bonds to levy certain assessments directly to the property
owners rather than going through the tax collector’s system. We need to amend
this resolution to provide that those same properties are levied off the roll
again.
ON MOTION by Mr. Gross, seconded by Mr.
Wolsky, with all in favor, the Board adopted Resolution 2001-7 as amended
Adopting the Water & Sewer Budget for FY 2002.
FOURTH ORDER OF BUSINESS Consideration
of Resolution 2001-8 Establishing a Roadway Reserve Account with the State
Board of Administration
Mr. Mossing stated the State Board of
Administration is an investment pool for governmental agencies. It is an
overnight investment account that earns about 3.8% interest. What we are
suggesting is that we move any funds available for the roadway reserve into
that account.
ON MOTION by Mr. Gross, seconded by Mr.
Wolsky, with all in favor, the Board Adopted Resolution 2001-8 Establishing a
Roadway Reserve Account with the State Board of Administration.
FIFTH ORDER OF BUSINESS Consideration
of Engagement Letter with Hoch, Frey & Zugman to Perform the Audit for
Fiscal Year Ended September 30, 2001
ON MOTION by Mr. Bissell, seconded by Mr.
Wolsky, with all in favor, the Board approved the Engagement Letter with Hoch,
Frey & Zugman to Perform the Audit for Fiscal Year Ended September 30,
2001.
SIXTH
ORDER OF BUSINESS Staff
Reports
A. Attorney
Mr. Cox stated the original complaint against Allstate and
the District were dismissed. That gave leave to amend and refile. It has been
refiled. We have filed motions to dismiss and the hearing is set for September
6, 2001.
B. Engineer
- Presentation of Annual Engineering Report
Dr. Benson stated we had established that the cost to repair
the roads would be approximately $100,000, which was to be funded annually in
the amount of $10,000. That cost has gone up because we have not been
maintaining the roads. The cost of paving has also gone up. There is currently
about $40,000 designated towards this fund. I am suggesting that we begin
repairing roads where the lots are developed, which are generally the older
part of the community. We would minimize future costs by attacking problems
before they become worse. The following year the next area to be repaired would
be the east channel area. By that point the development that is occurring in
the last part of Sunset Cay and the hotel will be completed. That would be
repair during the third year. The fourth year would cover the remaining roads
in the developed areas. The undeveloped areas would complete the five-year
plan.
Mr. Gatti asked does that include the parking areas? The
area around the swimming pools for example.
Dr. Benson responded I think the parking areas are the
responsibility of the associations.
Mr. Gatti stated if we were to repair the roads and not the
parking areas it would damn water and look terrible. I would be in favor of paving those areas as
well.
Dr. Benson stated I will research what the boundaries of
your roadways system are.
Mr. Wolsky stated if that is not property of the District it
should not be paved unless we made an exception.
Dr. Benson stated I would suggest that you work with that
homeowners association and see if they would pay a portion of that. In regards
to the wastewater plant, it is meeting all of the DEP requirements. The
percentage of capacity is under 30%.
Mr. Wolsky asked what is the status of the expansion of the
irrigation system with the government grant?
Dr. Benson responded that contract was signed last winter
and does not have to be completed by this calendar year. We are waiting on the
permit from the state. The next step would be to bid the project assuming we
have the easements. We are working with Collier County on a project that is
going to replace an irrigation pump station. The will be installing their new
station within 30 days and their old one will be available to us then. The
understanding is that all the District has to do is pay to have it shipped out
here. The cost would be under $1,000.
ON MOTION by Mr. Wolsky, with all in
favor, the Board approved the purchase and shipment of a pump station from
Collier County.
A resident asked could we get sidewalks along Newport Drive?
Mr. Gatti responded that subject has come up often. Would it
be possible to assess only the property owners that benefit from that?
Mr. Cox responded yes, when we prepare the engineering study
to determine the benefits we can address that.
Mr. Gatti stated I suggest that each association discuss the
matter and then we can see what it would cost.
Dr. Benson stated the south hotel originally had 100.5
ERC’s. They have acquired 16 additional ERC’s for a total of 116.5. The north
hotel has 89 ERC’s. Sunset Cay has enough ERC’s for 186 multi-family units and
are in the process of transferring from the Stella Maris area. They will have
enough ERC’s for 6 more units. The rest of the properties make up the balance
of the 1032.6 ERC’s.
C. Manager
- Report on Number of Registered Voters and Consideration of Meeting Schedule
of Fiscal Year 2002
Mr. Mossing stated we have received a report from the
Supervisor of Elections stating that there are 255 registered voters within the
District as of June 1, 2001. We will now officially convert to a general
election in 2002for two of the three positions that will be up for re-election.
The third position up for re-election will be conducted as a landowner’s
election.
Mr. Gatti asked so this will be different than what we
normally do?
Mr. Cox responded yes, your voting location will have a
separate ballot. You will have to qualify just as if you were running for any
other office. The first year that we do this there will be two of you that will
be elected by electors. One of you will serve two years and the other for four
years. The landowner elected member would serve a four-year term. From 2002
through 2004 there will be two elector elected supervisors and three landowner
elected supervisors. Three will come up for election in 2004, one will be the
elector elected supervisor and the other two will be landowner elected.
Mr. Mossing stated we can continue the approval of the
meeting schedule for Fiscal Year 2002 to the next meeting.
D. Field
Manager
Mr. Stephens stated I am having a problem
pertaining to the water with the property owners at 185 Sunset Cay. They have
been building their house for about a year and a half and using our water
without a meter. It is an illegal tap.
Mr. Gatti asked what advice do you give
us?
Mr. Cox responded I would suggest that we
write them a letter and if they continue we will take them to court.
Mr. Gatti stated notify the owner and
inform them that before they hook up legally we are going to demand payment.
SEVENTH ORDER OF BUSINESS Supervisors
Requests and Audience Comments
An audience member asked is Mr. Stephens
an employee of the district? Are his evaluation mechanisms consistent with
others in the county?
Mr. Cox responded yes, he is an employee
of the District. He is subject to Chapter 112, Florida Statutes. That chapter
governs the types of benefits that he can receive.
EIGHTH ORDER OF BUSINESS Financial
Statements and Approval of Check Registers
ON MOTION by Mr. Wolsky, seconded by Mr.
Bissell, with all in favor, the Board approved the check registers as
presented.
NINTH
ORDER OF BUSINESS Adjournment
ON MOTION by Mr. Wolsky, seconded by Mr.
Bissell, with all in favor, the August 16, 2001 meeting was adjourned.
Darrin s Mossing Richard
Gatti
Assistant Secretary Chairman