MINUTES OF MEETING
PORT
OF THE
COMMUNITY IMPROVEMENT DISTRICT
The regular meeting of the Board of
Supervisors of the Port of the Islands Community Improvement District was held
Present and constituting a quorum
were:
John
Robinson Supervisor
Bernard Wolsky Vice
Chairman
Ted Bissell Supervisor
(via phone)
Richard Burgeson Assistant
Secretary
Also present were:
Darrin Mossing District
Manager
Daniel Cox District
Counsel
Ronald Benson District
Engineer
Tim Stephens Field
Manager
Numerous residents
The following are the actions taken
at the
FIRST ORDER OF BUSINESS Roll
Call
Mr. Wolsky called the meeting to
order. Mr. Mossing called the roll and
indicated a quorum was present.
SECOND ORDER
OF BUSINESS Attorney/Client
Session
Mr.
Cox stated that since Mr. Gatti was not going to be here today, I decided that
we would wait and have this session at the next meeting, so we will just
continue that item. We did have a
pre-trial conference yesterday, and the judge has set trial for the proceedings
for January 15, 16 and 17. It will be at
the Federal Courthouse in
Mr. Wolsky asked what happens at that time?
Mr. Cox responded that is the real dog and pony show.
Mr. Wolsky asked what do you mean? I thought the last one was the real dog and pony
show.
Mr. Cox stated now it is the real one. We will be calling witnesses and calling the
full trial on the merits of the case.
The judge will issue a ruling probably within sixty days after that,
somewhere around the middle of March we should be all done.
Mr. Mossing asked on the attorney/client session, are we
continuing that or will we have to re-advertise?
Mr. Cox responded we will re-advertise it.
THIRD ORDER
OF BUSINESS Approval
of Minutes of August 16, 2002 Meeting
Mr. Wolsky stated the next item is the approval of the
minutes of the August 16 meeting. I will
entertain a motion.
ON MOTION by Mr. Bissell, seconded by Mr.
Robinson, with all in favor, the minutes of the
FOURTH ORDER
OF BUSINESS Acceptance
of Engineer’s Annual Report
Mr. Wolsky asked is this a
continuation since last time?
Mr. Benson responded yes. That was I think an opportunity for the Board
to review the report summarized briefly last meeting.
Mr. Wolsky asked does anyone have
any questions about the report? Mr.
Bissell mentioned several items that he would like to get together with you
just for clarification afterward.
Mr. Benson responded OK.
ON MOTION by Mr. Burgeson, seconded by Mr.
Bissell, with all in favor, the Engineer’s Annual Report was accepted.
FIFTH ORDER
OF BUSINESS Acceptance
of the Audit for Fiscal Year 2001
Mr. Mossing stated Mr. Chairman,
enclosed in your agenda package was a copy of the District’s audited financial
statements from the District’s independent auditor, Hoch, Frey and Zugman. What
I would like to do is highlight some of the required reports, and if the Board
has any questions about any of the specific numbers, I would be happy to answer
those and keep in mind that you are just accepting this report. You are not approving it.
Mr. Wolsky asked what do you mean?
Mr. Mossing responded you are
accepting it on behalf of the District.
You are not approving it.
Mr. Wolsky asked we are not agreeing
with what he says; is that what you are saying?
Mr. Mossing responded not
necessarily.
Mr. Burgeson stated we are not
agreeing or disagreeing.
Mr. Mossing stated yes, you are just
accepting that. Let me go through this.
On Page 2 is the independent
auditor’s report. The third paragraph
states in our opinion the general purpose financial statements referred to
above present fairly in all material respects the financial position of the
Port of the Island’s Community Improvement District as of September 30, 2001,
and the results of its operations and cash flows; of its water and sewer
enterprise fund for the year-end; and conforming with U.S. Generally Accepted
Accounting Principles. Basically, it is
a clean opinion that they believe that these numbers accurately reflect our
financial position.
Then you have the various balance
sheets, income statements of the District.
If I could ask you to turn to the back starting on Page 22, there are
various disclosures that the auditor is required to make. The first one is to start on Page 22. The first item is compliance. The last sentence states the results of our
test disclosed no instance of non-compliance that are required to be reported
under the government auditing standards.
The next one is the internal control
over financial reporting. Again, the
last sentence states that we noted no matters involving the internal control
over financial reporting and its operations that we consider to be material
weakness.
Then on Page 24, this is the
independent auditor’s management letter.
Basically, this is where they take the opportunity to report to the
Board any items that may be immaterial or that they feel necessary that should
be disclosed to the Board of Supervisors, there are numerous findings and
recommendations, but basically they are all related to, as the Board is aware
of, our assessments, our collection problem with our assessments and the
financial emergency that the District finds itself in as it relates to the
repayment of the bonds.
Currently our operating funds all
have positive cash flows and we are meeting all of our current
obligations. The difficulty the District
has is collecting its assessments on certain property owners and the payment of
the District’s bond indebtedness as it relates to those specific properties.
Mr. Bissell asked when are we going
to start repaying the road fund that Mr. Benson was alluding to, the $68,000,
and they borrowed those funds to pay other bills?
Mr. Mossing responded no. We have that money sitting in the
account. In my discussions with Mr.
Benson, what we wanted to do is put off the starting of that road project until
next summer because we may need to borrow those funds as part of the completion
of the irrigation project.
As you recall, we signed an $185,000
contract for which technically we only had available $150,000. So there was $35,000 that may need to be
borrowed in the short-term to repay that.
If we did borrow those funds, I would pf recommend to take it from the
roadway reserve. We then simultaneously
increased our irrigation rates to replenish those funds.
We have not borrowed the money yet,
and there is a chance depending on how our utility fund goes, and the
collection of standby fees that there is a chance that we might not need to
borrow that money. We should be in a position to start the roadway improvement
project this time next year.
Mr. Wolsky stated one of the
recommendations that I sort of focused on was that they had recommended in the
past, the auditors had recommended in the past, that we increase our usage
rates. They point out that while we
increased our standby fees 58 percent, we have not increased our usage
rates. They sort of make a judgment
about that that we should increase our usage rates. What sort of credence do you give to that?
Mr. Mossing stated I at this point
do not agree with the auditors in their position on that. When we set those standby rates, I worked
with Mr. Benson and Mr. Stephens and we took our water and sewer budget and we
broke it down between the fixed cost, which would be covered by standby and our
variable cost, which I attribute to the user fees. Those are things like utilities and a large
portion of the District’s water operating expenditures is fixed.
The salaries and administrative
budget make up a large part of our budget, which are fixed cost. I did not necessarily agree with him and we
went back and forth on that. He felt it
was necessarily to place it in the audit.
I just told him that we would continue, as we have with this Board
keeping you apprised of the financial condition of the utilities and of our
cash flow.
I do not necessarily agree with that
at this point, but will again continue to look at that. Our cash flow, I believe at the end of this
year, we budgeted for a $95,000 reserve.
I think that we are probably going to end up with about $45,000 to
$50,000 of that in the reserve at the end of this year. The engineers really recommended $95,000, but
to have $50,000 in the reserve I do not think would call for an immediate increase
in user fees.
The only reason that we are not
putting the $95,000 in there is because we have a collection problem. I do not think we have a rate problem. Eventually those collection problems are
anticipated to be resolved; we are going to have a lot of funds flowing into
the District’s various funds at that time.
Mr. Bissell stated are we going to
have to foreclose on some properties?
Mr. Mossing stated yes. I think in either case that that cash flow
problem is going to be resolved. If
those properties are foreclosed on, they will then be technically – and these
are steps you get into a legal issue – but basically the property would be in
the District’s ownership debt free, and then I believe would be more marketable
and developable in the future. The
future property owner would be able to sustain the rate structure the District
has in place.
Mr. Wolsky asked any other
questions?
Mr. Mossing stated if the Board
doesn’t have any questions, we will ask for a motion to accept.
ON MOTION by Mr. Robinson, seconded by Mr.
Bissell, with all in favor, the Audit for Fiscal Year 2001 was accepted.
SIXTH ORDER OF BUSINESS Staff
Reports
A. Attorney
(There being none, the next agenda
item was addressed.)
B. Engineer
Mr. Benson stated I received a
letter for the Islands Resort and Marina regarding a drainage pipe that has
caved in over by the marina area. It is
a pipe that runs from a catch basin that is in the swale along the side of the
road. It is the outlet pipe that goes
over to the canal. That wall is over by
the dock. I viewed that and inspected
that.
Mr. Stephens and I talked. Mr. Stephens talked informally with someone
who does the construction activity. He
also made a couple phone calls to get prices for the pipe. We still have not got the full assessment
here yet, but it looks like it would be probably greater than $5,000 and less
than $10,000 to replace this, depending on how long of a section of pipe. I think it could be may end up being at least
$5,000.
Now that I know exactly what the
pipe is, what the condition is, my feeling is that that is part of the drainage
system for the CID, but I do need to verify with the documents in my
office. We have the easement, where that
pipe is located and again I will need to check this and also check it with Mr.
Cox. My understanding would be, that
that is part of the drainage system of the District.
Then the question is; is there a
legal document that says that we own that pipe and can do maintenance on that
pipe. I am going to need to talk to Mr.
Cox about that. As of this time, without
the verification, it looks like a part of the system of the CID and would
require our maintenance.
Mr. Wolsky asked you will proceed
with that depending on what you find out?
Mr. Benson responded yes, I guess we
need some type of authorization for Mr. Stephens to be able to arrange to have
the work done.
Mr. Mossing stated I think if the
Board is in agreement with the District to move forward with that work, I think
that is sufficient. I would, maybe if
you wanted a motion, that would certainly be acceptable and that maybe if you
said if it is not to exceed a dollar amount.
Mr. Benson stated it is 24-inch
corrugated pipe. The pipe there is
metal, which with the seawater, salt water, has caused it to eventually cave
in, you know the pipe will corrode. It
would be replaced with plastic material that is now available and serves the
same purpose.
That pipe is less than $12 a
foot. Mr. Stephens made two phone calls
for a price and they were both less than $12.
The question is how many feet. It
could be 30 feet up to maybe 200 or 300 feet, depending if you have to repress
the whole section. Mr. Stephens got a
price for the whole thing.
Mr. Stephens stated for about $4,500
for the work itself.
Mr. Benson stated and that partly is
dependent on how long of a section, but there is some minimum involved in that
because the part that is caved in is close to the sea wall, which would be a
little more expensive.
Mr. Wolsky asked do you want to
motion?
Mr. Benson responded I would say it
is going to be at least $5,000.
Mr. Bissell asked did I miss the
reason of the failure?
Mr. Benson responded because the
pipe is in excess. It is older than
twenty years and it is corrugated metal pipe and it is exposed to salt water
because it drains into a salt water area, so it is just part of the system that
will eventually happen at some point and would have to be replaced.
Mr. Burgeson asked would it be
possible to connect the metal pipe to plastic pipe?
Mr. Benson responded yes, this is
drainpipe.
Mr. Mossing asked do we have many
more of these types of structures throughout the District?
Mr. Benson responded well I need
numbers. A lot of the pipe is concrete,
but there is some that is metal mostly concrete under the roads. It is difficult at this point to say. There is not that many that the District has
that actually go out to the canal.
Mr. Stephens stated I know of three.
Mr. Benson stated I think there are
about three of these pipes or connections that actually drain the water out to
the canal.
Mr. Stephens stated there are five.
Mr. Benson asked is it five?
Mr. Stephens responded yes.
Mr. Benson stated I could think of
three, but there may be three more. It
is one of those things that will happen over the years and when they get
replaced, we recommend that they get replaced with material that doe not have
the corrosion but those materials were not available 20-25 years ago when it
was put in.
Mr. Bissell asked how Mr. Stephens
is going to do this work?
Mr. Benson responded he had received
a price for someone to do it. That is
also an option; I guess he would have equipment.
Mr. Bissell asked if we have other
corrugated pipe that is going to rust out, would it not be cheaper now to do
the whole job at once than to do it piecemeal?
Mr. Benson responded that is the
reason why I was giving you a price that would potentially be replacing the
entire length from the catch basin out to the sea wall, which would be
somewhere more than $5,000. I think our
first estimate would be $6,000 or $7,000 if you replace the entire
section.
I mean I am not sure I would
recommend going and just finding all the other ones.
Mr. Bissell stated no, but in that
area.
Mr. Benson stated that is why I want
to do a little more inspection other than what I was able to do this
morning. I guess one potential motion
would be to authorize an expenditure not to exceed some amount of money. Then I would hand this over to my company to
work with Mr. Stephens to get the thing done.
Mr. Bissell stated I move we allot
no more than $6,000 to that project.
Mr. Wolsky asked would that be
sufficient?
Mr. Stephens responded I do not know
until we start opening the pipe.
Mr. Bissell stated then there is no
need to make a motion to start with.
Mr. Mossing stated that we could
determine that this falls under our normal repairs.
Mr. Benson stated the entire length
to do the whole job is more like $7,500 if it is the whole length. I mean again, we are not sure of the
condition of the whole entire thing.
Mr. Bissell stated if it is in the
maintenance just go ahead and do it.
Mr. Benson stated that would be
hiring somebody to do the construction.
Mr. Burgeson asked how deep is the
height?
Mr. Benson responded it is 24-inch
pipe and it is not like a few feet of cover so.
It is probably five feet depth of digging.
Mr. Stephens stated we could not do
that in-house. It would too much for
us. It would need to be done quickly
because of the tides. It is way too much
for us take on. We have got a couple of
plants to operate on here.
Mr. Bissell stated go ahead and do
it then. It is maintenance.
Mr. Mossing stated I think we can
just do it as normal. The Board is in
concurrence that the work needs to be done.
Mr. Stephens can handle it under his normal repairs and maintenance.
Mr. Benson stated one thing I would
say it probably is a rule of check. I
have made copies of the easements. We
will make sure that there is an easement in that area. If there is not, I would get one from Mr.
Cox, as there should be. It is an outlet
for our drainage system.
Mr. Wolsky asked do you have
anything else?
Mr. Benson stated no.
Mr. Wolsky asked let me ask a
question then. At the last meeting you
were anticipating approval of the permit momentarily?
Mr. Benson responded thank you. I submitted a revised application after the
last meeting. The DEP would have another
week on their time clock to review that.
We have been making phone calls.
Basically what we propose at this point, or to try to comply with this
rule that kind of does not make a lot of sense for our application, but what we
have suggested is that we would install a chlorine bleach feed system at the
irrigation pump station.
That would work when the pump comes
on, there would be a 55-gallon drum of liquid bleach, which is a way to feed
chlorine. A little feed pump would come
on and inject the bleach into the pipe at the same time the water is being
pumped. The intention would be
disinfecting that water. It is basically a
way of not only keeping the cost low and try to get DEP there to say we are
complying with the intent of the rule, even though it is not 100 percent to the
letter. As I said before, complying 100%
to the letter could cost half a million dollars. I was hoping to hear by this
meeting. We have called and they have
not returned our call.
Mr. Mossing stated we are running
out of time.
Mr. Benson stated and we are running
out of time.
Mr. Mossing asked should we file for
another extension on that grant?
Mr. Benson responded I always think
that is a possibility, with Mr. Tier, at Cypress Basin.
Mr. Benson stated I wish I had a
solution. I think we are getting close,
but some of it does not make a lot of sense and obviously they know you do not
have the money just to throw money at something that would comply with a rule
that they are not even sure they agree with.
Mr. Robinson asked what do they
estimate the operating cost of the bleach system?
Mr. Benson responded it would not be
that expensive. I wish I had something
else to tell you. At this point, we have
made a number of phone calls in the last week and have not gotten a return
phone call.
Mr. Cox stated until they have taken
action to really know. I mean if they
deny our application then of course we have recourse through the administrative
hearing process to take that. Until they make a final agency action, I do not
have any place to get involved.
Mr. Benson stated that is what I
have been trying to push this month is that we have given you everything. This is all we are giving you. Approve it or turn it down. I was hoping based on the last meeting I had
with them in their office that they could approve this. We were trying to comply with the intent of
the rule.
Mr. Wolsky stated I think it is
absolutely crazy to have the Southwest Florida Management District declare a
policy to do thing in this fashion and to reward us with federal grants for
pursuing that course of action, and then to have another branch of the state
government come in and say that is not possible. To me that is a house divided against itself
and it is going to fall. I mean that is
absolutely stupid, certifiably stupid in my opinion, but what do you do?
Mr. Wolsky asked is there anything
else?
Mr. Benson responded there was one
other item that was brought up at the last meeting. It was a question about a drainage
feature. Over at Stella Maris, there is
a little dip as you cross. As that is
part of the drainage feature for that road, the way the roads are there is a
catch basin on one corner, but not on both, and that is a continuation of the
curb and gutter that is along the road that gets the water across that road
into that catch basin. That is a
standard detail for subdivisions in this part of the country.
After it was brought up at the meeting,
I did go over and look at it. It is a
standard detail. I would also, when I
went home the same day to where I live – I live in North Naples in Longshore
Lake Community – and I crossed the same type of thing in my own subdivision
that I live in. I had not even realized
that I was driving over that same feature, but I have seen it throughout the
community now that it was brought to my attention.
Mr. Burgeson stated you will notice
that in a few more years when you get more time on your hands.
Mr. Benson stated I drive over it
multiple times a day. It is like the
same thing.
Mr. Wolsky stated you will also be
able to watch the grass grow, name the blades.
Mr. Benson stated it is something
that should not be filled in, and that was the request to fill it in.
Mr. Bissell stated the County said
that it could be reconstructed there. It
could be a four foot wide so it is not a sharp dip. It could be wide until about four feet, you
know, with a slope. This is what they
told me about four or five months ago.
Mr. Benson stated I personally would
not see an engineering reason to make a change.
Mr. Burgeson stated they just need
to slow down. These people are driving
too fast.
Mr. Benson stated it is sort of the
opposite of a speed bump; it is a dip.
Mr. Burgeson stated traffic calming
device. Only bottoms out Lincolns.
Mr. Bissell stated there is a
problem. You see it should never have
been there. The county said they never would have approved that road, that
being there, if they knew that at the time.
That is the county engineer, Tom Cooke and Dick Roll. I do not know if you know those gentlemen.
Mr. Benson stated I suppose there
are always other options that could have been done. One would have been to have another catch
basin and a pipe under the road connecting two catch basins, but it does
not - in this area it is not as common
because we have such high ground water and things that most of the source water
is taken care of on the surface. I mean
there is a standard feature throughout subdivisions in this part of the state.
C. Manager
Mr. Mossing stated I have one
item. Last month the Board authorized us
to go out to bid for the landscape maintenance contract. After that meeting and talking to Mr.
Stephens I realized that they have raised the threshold for bidding for the
community development districts - local governments. I wanted to come back to the board because
Mr. Stephens said that the existing contractor is willing to hold this price
for three years.
If the Board would be interested,
rather than going out for bid and potentially getting another contractor out
here that does not perform as well, and everyone is happy with Big Cypress,
would the Board rather continue on with Big Cypress at their same price or to
actually go out to bid.
Mr. Bissell stated I think we should
do anything we can to keep what we have.
Mr. Burgeson stated Big Cypress does
a good job.
Mr. Bissell stated they do a good
job.
Mr. Wolsky stated I have never
signed a plan. Is there any legal reason
why we cannot do this?
Mr. Bissell stated because the ones
we had before, we had a lot of complaints.
Mr. Mossing stated I think he
reviewed last contract two years ago, but I will get with Mr. Cox.
Mr. Bissell asked are you talking
about a three-year contract?
Mr. Mossing responded two or three
year. It will have a thirty-day
termination clause in it so that if, for whatever reason we are unhappy, we
terminate. Currently we have 90-day
termination clause.
Mr. Bissell stated and you will hold
the price for three years? Great.
Mr. Mossing stated I need a motion
from the board to enter into a contract with Big Cypress for a three-year
contract at the existing price.
ON MOTION by Mr. Bissell, seconded by Mr.
Burgeson, with all in favor, the acceptance to enter into a contract with Big
Cypress for a three-year contract at existing price was approved.
D. Field Manager
Mr. Stephens stated everything that
I have has been taken care of.
SEVENTH ORDER
OF BUSINESS Supervisor's
Requests and Audience Comments
An audience member stated I want to
talk about drainage. On the cul-de-sacs
over there in Phase II, on the end of all those cul-de-sacs where they loop
around, there is a lot of growth building up on those things. The flow going through those drainage areas
is probably a shoulder job, not a machine job.
That should be looked at I would say just to help our drainage down in
that area. You know where I am talking
about?
Mr. Stephens stated we will look at
it.
Mr. Wolsky stated just an item as I
was going through the engineer’s report, there were a number of drawings of the
community, the standard drawing and you know there is a discrepancy between
reality and the drawing. On Phase II,
all the Cays and then three lots on the cul-de-sac, and that is not the way it
is. There are only two lots on the
cul-de-sac, on the point. It is
different than the Phase I plans.
Mr. Benson stated we could always
correct that. I thought that was taken
right from the plan. We will verify and
correct that.
Mr. Wolsky stated well you know, I
mean, I live in Venus Cay and my cul-de-sac ends in two lots. It is the representation on the drawing is
three lots. So where the extra lot comes
in and how they count those.
Mr. Benson stated we will get that
out and re-verify it.
Mr. Wolsky stated we need to redo
the property tax assessment. The
property tax assessment should go up then if there are only two.
EIGHTH ORDER
OF BUSINESS Financial
Statements
Mr.
Bissell stated the financial statements look fine as far as I am
concerned. I have gone over everything
pretty well and I do not know why, but they look pretty good.
ON MOTION by Mr. Bissell, seconded by Mr.
Burgeson, with all in favor, the invoices were approved.
Mr. Wolsky stated let me just introduce Jerry Worden.
Mr. Worden stated I am an inner over
outsider. I am not one of you at this
point.
Mr. Wolsky stated he is potentially
interested in doing something in the community here, but I do not know if it is
appropriate to discuss that. I would
guess not.
Mr. Worden asked does anybody have
an aerial photo that shows the north part north of 41? I have seen several aerial pictures that show
the south, real nice view down to the gulf.
If there such a thing, does anybody have one that looks out to the north
on an aerial photo.
Mr. Wolsky responded what you are
interested in is a slant.
Mr. Benson stated I think I do.
Mr. Burgeson stated all right. Mr. Bissell could crawl up that tower and
take a picture.
Mr. Wolsky stated but he is not
interested in the overhead photography that Andy has.
Mr. Stephens stated the County has
that on the Internet now. All you have
to do is get on the Internet. You can
see that.
Mr. Worden stated that is the
straight overhead, not an aerial photo.
I want a slant thing like you have on your phonebook and the postcards
that looks south that kind of depict the feel of the place a whole lot better
than just a rather sterile, straight-down view.
When they had the auction for the convention center, there were a couple
photos on that brochure they gave out; one looking somewhere north of the
convention center looking south; and then another one looking a little off to
the northwest, but none depicted the whole area.
Mr. Burgeson stated we have had some
aerials taken. I have to look. I might have.
Mr. Benson stated a couple of
companies take those photos.
Mr. Wolsky stated I can get in touch
with him by E-Mail.
Mr. Benson stated One Minute Aerial
Markings. One Minute Aerials is the name
of the company. They have an office up
at the airport in Naples. You can hire them for a couple hundred dollars to
take a bunch of pictures.
NINTH ORDER OF BUSINESS Adjournment
ON
MOTION by Mr. Bissell, seconded by Mr. Burgeson, with all in favor, the meeting
was adjourned.
Secretary / Assistant
Secretary Chairman
/ Vice Chairman