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 11, 2007 at 10:00 a.m. in the Egret Room, 25000 Tamiami Trail, Naples, Florida.

 

 

            Present and constituting a quorum were:

 

            Ted Bissell                                                        Chairman

            Dale Lambert                                                   Vice Chairman

            Norine Dillon                                                    Secretary

            Richard Gatti                                                    Assistant Secretary

            Richard Ziko                                                    Assistant Secretary

 

            Also present were:

 

            Cal Teague                                                       District Manager

            Dan Cox                                                          Attorney

            Ron Benson                                                      Engineer

            Robert Edge                                                     Field Operator

            Tom Mack                                                       Staff

            James Shucart                                                  POI Hotel & Marina

            Mr. Backus                                                      Resident

            Roger Ducoffre                                     Resident

            Barbara Henry                                                  Resident

            Jean Kungle                                                      Resident

            David Naske                                                    Resident

            Jerry Winters                                                    Resident

 

 

FIRST ORDER OF BUSINESS                               Roll Call

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

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the

April 13, 2007 Meeting

            Mr. Bissell stated each Board member received a copy of the minutes of the April 13, 2007 meeting and requested any additions, corrections or deletions.

            Ms. Dillon stated on Page 20 in the fifth paragraph do not want should replace prefer.  On Page 21 in the tenth paragraph plant should be added before failing.  In the next to last paragraph Genung should replace Dick.  On Page 22 in the paragraph before the fifth order of business U.S.41 should replace Portland Road.  On Page 24 in the third paragraph from the bottom or should be added before room.  On Page 26 in the fifth paragraph from the bottom, they should replace we in the last sentence.  On Page 27 in the sixth paragraph the should replace Cross Cove.  On Page 28, Seventh Order of Business should be deleted since this is not where we discussed the open items.  Page 32 is where we actually discussed the open items.

 

On MOTION by Mr. Lambert seconded by Mr. Ziko with all in favor the minutes of the April 13, 2007 meeting were approved as amended.

 

 

THIRD ORDER OF BUSINESS                             Consideration of a Request for a Variance of the Signage Rule

            Mr. Teague stated we have a request which was submitted by Mr. Shucart for a variance for two signs, of which copies of both signs are attached.

            Mr. Lambert stated I do not recall these signs being there for a number of years as the letter states.

            Mr. Ziko stated I do not know of this Angler’s Cove Restaurant which is stated on the sign.

            Mr. Shucart stated we repainted the sign, but the restaurant used to be there.

            Mr. Lambert asked was the sign there with different wording?

            Mr. Shucart responded that is correct.

            Mr. Lambert stated I do not believe we should have signage on our property relating to specific items such as the name of a restaurant.  I do not mind a directional sign for the hotel or boat launch, but it must be generic and informational if it is going to be on CID property.

            Mr. Gatti stated although we always agreed our signs should have the Heron and Egret logo, I am not certain how this one got off track.  I believe we should reestablish the fact this is the image we want to maintain and all of our signage throughout the community should be in the same mode.

            Mr. Ziko stated I agree.  I took pictures of the signs at Sanctuary Point, Sunrise Cay, The Cays of Port of the Islands as well as Eveningstar Cay.  I superimposed upon the sign at Sunrise Cay because I believe the signs which are looking to be grandfathered in should be replaced by these types of signs.  I will present this to Board members and see if they agree with me.

            Ms. Dillon stated I also agree they should look alike.  I am not certain how they got off track, but I thought we decided we were not going to have any signs on our property relating to a specific business.  They were going to be directional signage for the hotel, marina and boat launches, which should be covered by the marina.

            Mr. Gatti stated I believe we should encourage any commercial enterprises here to ensure their signage adheres to our standards even though it is on their property.

            Ms. Dillon stated I agree.

            Mr. Ziko stated I also agree.

            Mr. Lambert stated I believe the marina sign is too close to the road.

            Ms. Dillon asked are you referring to the one on the right which is on the edge of the pavement?

            Mr. Lambert responded if someone were riding a bicycle there and had to move off of the road in an emergency, they may hit the sign.

            Mr. Bissell stated I would like to see the two photographs you just distributed since they go along with my proposal.

            Mr. Lambert stated perhaps we should deal with this specific sign.

            Mr. Bissell stated perhaps we can put Port of the Islands with our logo on the front entrance sign along with Hotel/Marina in order to identify the area.  On the right-hand side we can have a sign which says, Hotel Entrance, along with a sign which says, Marina Entrance at the marina.

            Mr. Gatti asked should we reestablish or create a policy in order to ensure all signs on CID property are in compliance with this image?

            Mr. Cox responded the rule we adopted should cover this, and Mr. Shucart stated they were willing to add the logo to the signs.

            Ms. Dillon stated the signs will have to be redone if you add the logos.

            Mr. Shucart stated this may be true.

            Ms. Dillon stated we are proposing to have the entire sign redone in order for them to look like the others.

            Mr. Lambert stated the other signs in POI have raised lettering.  Perhaps they can be repainted to reflect our preferred signs.

            Mr. Shucart stated we will be happy to repaint them.

            Mr. Lambert asked do any Board members have a problem with the size or shape of the sign?

            Mr. Ziko responded it is probably a little large to say Hotel Entrance on it.  I do not want to see any signs with Ecotours or Marina Store on them.  I only want to see Hotel Entrance and Marina Entrance along with our logo.

            Mr. Shucart stated I would like to request the first sign to say Marina with an arrow because if the front sign says Hotel and Marina and the next sign says Hotel, people are going to think the hotel and marina are there.

            Mr. Ziko stated the arrow can go underneath Entrance and Marina Entrance pointing this way.

            Mr. Shucart stated if the sign does not state Marina Forward or Straight Ahead, people will be confused.

            Ms. Dillon stated perhaps you can have a sign which states Marina Straight Ahead.

            Mr. Ziko stated I do not want the wording to be in red.  It should be in the same colors we use on all our other signs with the logo.

            Mr. Lambert asked do you object to the hotel putting the sign on the right-hand side as opposed to the middle area?

            Ms. Dillon responded it should be on the same side as the Marina sign.

            Mr. Ziko stated I believe the hotel owner should inquire about this.  Are you representing the hotel again?

            Mr. Shucart responded I am representing the marina since it is indicated on the sign.

 

Mr. Lambert moved to reject the request by Mr. James Shucart of the Islands Marina, LLC for a variance to the signage rule pending submission of a revised request and Ms. Dillon seconded the motion.

 

            Mr. Ziko stated I believe we need directional signs to the marina and hotel.  They should be modified to our approved format and presented as soon as possible.

            Mr. Shucart stated I am happy to modify them for your approval as long as I know what you want in detail.

            Ms. Dillon stated I personally do not have a problem if they repaint the existing sign as opposed to making them build a new sign.  It must be in this shape and say, Port of the Islands along with our logo; Hotel with an arrow; and Marina with an arrow.  The other one which is too close to the road should be moved over and the wording can be the same with Port of the Islands, the logo and Marina with an arrow.

            Mr. Lambert stated alternatively, we can have the signs built, put up and maintained.

            Mr. Ziko stated there is a sign which says Manatee Ecotours at Hotel.  I want to make a motion later to have it removed today since it is an eyesore.

            Mr. Bissell stated Mr. Gatti took several pictures of these signs which are all wooden with the logo.  Perhaps this Hotel Entrance sign can be made the same as the other signs with wood along with the logo.  The Hotel Entrance and Marina signs can be like this instead of sideways.

            Ms. Dillon asked do you want them to replace the existing signs?

            Mr. Bissell responded absolutely.  The one in the entrance should say Hotel Entrance, and Marina with an arrow pointing forward.  You can have another sign closer to the marina entrance with the arrow pointing to the marina.  They will be wooden with our logo, similar to the other signs we currently have.

            Mr. Ziko stated I agree we want them to conform to the other signs we have.  If you look at Sanctuary Point, The Cays, Sunrise Cay and Eveningstar Cay, I do not believe we should divert from what is already here.

 

On VOICE vote with all in favor the previous motion was approved as amended.

 

            Mr. Gatti asked does your motion approve this sign?

            Mr. Ziko responded we are rejecting the sign.

            Mr. Lambert I have a motion it was rejected as submitted but open to a new submittal.

            Mr. Lambert stated we should ensure Mr. Shucart knows what we want.

            Mr. Bissell stated I want to see a wooden sign with our logo; Hotel Entrance with an arrow; and Marina on the side with an arrow, and then down at the marina, just Marina with an arrow.

            Mr. Gatti stated I believe your intent is for all of our signs to look like this, which I support.  Therefore, we are not changing anything and we have been discussing this for three years.  What motion is necessary?

            Mr. Bissell responded the Board needs to discuss my proposal.  Does each of you have different proposals?

            Mr. Gatti responded we all agree with your proposal.

            Ms. Dillon stated the first sign coming in would be this but it would have secondary directional arrows for the marina.

            Mr. Gatti stated I do not believe we should be designing the signs.  However, we should dictate their appearance.

            Mr. Ziko stated I believe we need to give direction.

            Mr. Bissell stated the residents have been extremely vocal with regards to signage.

            Ms. Dillon asked can we agree we are going to give Mr. Shucart direction as to what the signs should say and what they should look like in order to avoid revisiting this again?

            Mr. Bissell responded I agree.

            Mr. Ziko stated I believe he is already aware of our requirements.

            Mr. Shucart stated I have a general idea, but I am not certain about the size.

            Mr. Ziko stated the sizes are all different.  For example, the Eveningstar Cay sign is quite wide and The Cays sign is not as wide.

            Mr. Shucart asked is The Cays sign a painted or raised-letter sign?

            Mr. Ziko responded it is a raised-letter sign and my wife repainted The Sanctuary sign.

            Mr. Shucart asked are those raised-letter signs?

            Ms. Dillon responded that is correct and the logo is gray.

            Mr. Bissell stated if Mr. Shucart agrees, I believe the CID should hire someone to make the signs since we want them to be the same.

            Ms. Dillon asked should we pay for the signs?

            Mr. Bissell responded I believe so.

            Ms. Dillon stated by erecting and paying for the signs, we will get what we want as well as being responsible for maintenance.

            Mr. Lambert stated there was a size qualification.

            Ms. Dillon stated it is limited to 15 square feet in size and four feet in height.

            Mr. Cox stated this does not apply to your exempt signs.

            Ms. Dillon stated we want all signs to resemble the exempt signs.

            Mr. Ziko stated I believe three by five is sufficient to put anything on it.

            Ms. Dillon asked how big is this one?

            Mr. Ziko responded I do not believe it is three by five.

            Ms. Dillon stated I do not believe any of them are this size.

 

Mr. Gatti moved to approve the format for all signs on CID property to be three feet by five feet in size and contain the Heron and Egret logo with raised lettering in blue and white coloring.

 

            Ms. Dillon stated 15 square feet is the basic size.

            Mr. Gatti asked what if someone wants to put up a huge sign?

            Mr. Lambert responded it will not be approved.

 

Mr. Gatti restated the previous motion as discussed with all sign requests to be submitted to the Board of Supervisors for approval before they are erected.

 

            Ms. Dillon asked who will submit them for approval if we are going to put them up?

            Mr. Ziko responded we are missing signs at Eveningstar Cay, Newport Drive and Newport Cay.  If it is the Board’s intention to make more signs identifying community areas, we will have to put them up.

            Mr. Gatti stated you are confusing directional and informational signs.

            Mr. Ziko stated this is not a directional sign.  It is an entrance sign to The Cays.

            Mr. Bissell asked what is your opinion about the sign at the marina with an arrow?

            Mr. Shucart responded it looks architecturally plain and I would select something more colorful, but it looks fine.  However, since it is your property you have the right to designate any type of sign you choose.

            Mr. Bissell asked do you have any objection to it?

            Mr. Shucart responded I do not.

            Mr. Bissell stated with regards to the hotel sign we were discussing, you wanted to have Marina with an arrow forward.  Perhaps we can do the same with the hotel in which an arrow to the hotel is indicated.

            Mr. Shucart stated this is acceptable.

            Ms. Dillon asked do we have to obtain a permit for these signs in order to have them redone on our property?

            Mr. Cox responded I am inclined to say we do not have to obtain a permit, but I want to look at the sign ordinance and get back to you.

            Mr. Ziko asked does this involve a call to the county?

            Mr. Cox responded I do not believe so, but I will verify it.  However, the county does not usually get involved with directional sign issues for internal subdivisions.

            Ms. Dillon asked can we get a sign company to make these up without going through a permitting process?

            Mr. Cox responded I will verify this.

            Mr. Bissell asked can you let us know by Wednesday?

            Mr. Cox responded since I have other work to be done, perhaps I can get back to you toward the end of the week.

            Mr. Bissell stated I wish to designate Mr. Ziko to design a sign in the manner we discussed and send it to Mr. Teague, after which Mr. Teague can e-mail it to us.  If it is acceptable to us, we can respond via e-mail to Mr. Teague.

            Mr. Ziko stated we need to find a professional sign designer and give them direction as to what we are looking for.

            Mr. Lambert stated we need to decide whether the CID or Mr. Shucart is going to put them up.

            Mr. Bissell stated they should state what we want since they are our signs on our property.

            Mr. Shucart stated at this point it is different than before.  I also believe people will keep on driving when they are looking for the hotel as opposed to driving through the community and creating more traffic.

            Ms. Dillon stated for example, people are going to turn left into the marina.  You may want a sign inside which says Marina Store or whatever you are going to have there.  Therefore, it may be nice to get everyone to have the same type of signs which will be on your property.  However, I am not certain if you are planning anything.

            Mr. Shucart stated we will definitely have signs on our property indicating various areas as required for safety and other issues.

            Ms. Dillon stated I am not certain if we should get involved in this.

            Mr. Ziko stated the signs which state Marina Store and Ecotours are at the forward entrance of your marina.  The main entrance to the marina is an additional 100 yards down Newport Drive.  Therefore, the sign which will be replaced will be on the side and opposite the main entrance.  Do you prefer to have it at the forward part of the entrance?

            Mr. Shucart responded this is a good point.

            Mr. Ziko stated since your forward entrance is blocked off no one can enter there anyway.

            Mr. Shucart stated since the structure was already there and we never re-did the signs, I never thought about the location.

            Mr. Ziko stated the island separates at the marina entrance in which there is a sign on the median as you turn into the marina stating, Cays of Port of the Islands.  Therefore, we actually cannot put the marina sign there anyway.

            Mr. Shucart asked what do you suggest?

            Mr. Ziko responded perhaps we can put the marina sign on the other side of Newport Drive a short way down from where it currently is.

            Mr. Shucart stated this probably makes more sense.

            Mr. Ziko asked do you want to have it at the forward entrance or the entrance near the boat ramp?

            Mr. Shucart responded I believe the main entrance s for the boat launch is appropriate.

            Ms. Dillon stated I believe the sign company doing the signs for The Cays already designed the logo for those signs.  I am certain they should already have a template.

            Mr. Lambert stated I believe it is slightly different.

            Ms. Dillon stated it is still the same logo.

            Mr. Teague stated I believe enough direction has been given in which we know exactly what you want the sign to say and how it should look.  However, we must determine who is going to own the sign; whether the Board is going to give direction to the applicant; or if the Board is going to take on this task.

            Mr. Cox stated the other issue is if we do these signs for this project we must determine whether or not we are going to clear the signs for the North Hotel since Mr. Motwani wants to put up his sign since he also owns this property.

            Mr. Ziko stated he cannot put up a sign with commercial information.  It should just say Hotel.  Since we are going to put up a sign which says Port of the Islands on Union Road, perhaps we can put Hotel on the bottom in order to keep it generic throughout the community.

            Ms. Dillon stated I believe we will have to design the sign on Union Road the same way we design the sign out front.

            Mr. Ziko asked are those signs already designed?

            Ms. Dillon responded that is correct.  I agree with Mr. Bissell we should purchase the signs and put them up.

            Mr. Lambert asked what happens if the Stella Maris Drive HOA asks us to put up a sign in their area?

            Ms. Dillon responded we will have to do the same thing.

            Mr. Lambert asked is the Board willing to take on all of these requests?

            Ms. Dillon responded I do not believe there are many more.

            Mr. Lambert stated I can think of two areas.

            Mr. Bissell asked why would they want a sign?

            Ms. Dillon responded they will want one if everyone else has one.

            Mr. Lambert stated they already discussed it at the last Board meeting.

            Mr. Ziko stated I do not know where they are going to put it.  We are referring to specifics of our property.  I do not believe the CID has any property approaching Stella Maris Drive.  However, they will have to determine where they can put it on their property after which it must be built to our specifications.  We are doing this as a service to the land we own in order to avoid confusing patrons who are going to use the hotel and marina.  Stella Maris Drive as well as The Villages of Stella Maris is entirely private.  Therefore, the CID does not own any land there to put a sign.

 

Mr. Gatti restated the motion that all signs on CID property contain the appropriate image and logo as discussed and be put up, paid for and maintained by the CID and Ms. Dillon seconded the motion.

 

            Mr. Ziko stated I want to ensure we are going to get these signs done as soon as possible in order to keep up with the continuity of the community and remove the other ones which I consider eyesores.

            Mr. Lambert asked are you going to use the same firm you are currently contracted with?

            Mr. Ziko responded we need to determine whether or not they can do this.

            Mr. Cox stated I am certain they can.  Perhaps you can leave me the signs which are currently there until we can get thee new signs made.

            Mr. Lambert asked are you going to leave the Ecotours sign?

            Mr. Ziko responded this is a separate sign.

 

On VOICE vote with all in favor the previous motion was approved.

 

            Mr. Bissell asked are we going to do anything with the entrance sign?

            Mr. Gatti responded since the entrance sign is important to the entire community, from both a commercial and residential aspect, we should really think about this and have someone come up an appropriate design.

            Mr. Cox stated perhaps you can ask the sign company for which you have the contract proposal to provide their suggestions for design which they will be able to get permitted since it is going to be a key issue and they are aware of the rules.  They should submit a uniform proposal for what you are doing at The Cays, Union Road and the Newport entrance road.

            Mr. Ziko stated perhaps we can authorize someone to approach the hotel and ask them to pay for the new sign going up since our sign on the arch was removed by them and replaced illegally with their sign on our property.

            Mr. Teague asked have we definitely decided the arch is our property?

            Mr. Cox responded although I am going to discuss it during my report, I am still looking into this.  It is basically going to come down to whether or not you want this done.  I will be more comfortable if we got an abstract from attorney’s title or handle the entire project out here.  Since we cut it off at the point in which different parcels were platted, I am not tracking a change of title for the individual properties.  However, we should get all parcels squared up, along with the dimensions of the identified properties.  This will amount to approximately $2,500 to $3,000.

            Ms. Dillon stated you told us last month you were going to speak to Mr. Vogel.

            Mr. Cox stated I gave him the information I had, but I was out of town over the last couple of weeks and have not had an opportunity to follow up with him.  However, we asked him to proceed and he has done a Title Search Report which he is going to share with me.  The Title Search Report will identify only certain items in the chain of title.  An abstract search will allow me to obtain all documents of title affecting everything within District boundaries.  It will be in chronological order after which I will have to do the analysis.

            Ms. Dillon asked is this in conjunction with Mr. Benson’s work on the plat?

            Mr. Cox responded that is correct.  If I spend a couple of days at the courthouse searching the title records myself, you are going to pay me more than what I am going to pay the Abstractor for the Attorney’s Title.  They charged $75 per hour to prepare an abstract the last time they did this, which is significantly lower than my rate.

            Mr. Ziko stated I want to know how the county determines the boundary lines which show up on the Property Appraiser’s site and show the arch is on our property.  This is published information which is on the Internet.

            Mr. Cox stated their website contains a disclaimer which states this is based on non-bill verified information.  There can be a variance from actual property lines.  If you abide by the Property Appraiser’s lines on this map, you have some parcels of property between the area which the North Hotel owns and what we own.  I can amend this through the chain of title.  I can identify the owner of these small 10’ by 35’ or 40’ strips of land.  The best way to go about this is to have an Abstractor do the report after which we can do the analysis.

            Mr. Lambert asked will this cover the entire District out to the north side of the road?

            Mr. Cox responded that is correct.  I will search it from the point at which Port of the Islands, Inc. platted Phase II of The Cays because once it is platted we know the locations of the lots as well as what we have an interest in.  The same holds true for all platted areas on this side.  We cut it off at the filing of the declaration on the condominium properties in order to avoid having individual lot transactions.

            Mr. Ziko asked are you referring to the first 1,400’ of Newport Drive and all of Union Road?

            Mr. Cox responded I want to do the entire property.

            Mr. Lambert stated we will have no further questions regardless of the issue.

            Mr. Cox stated we can work with Mr. Benson to put together a definitive map showing every easement you have whether it was created by plat or Declaration of Condominium.

            Ms. Dillon asked how long will this take?

            Mr. Cox responded it is going to take approximately two months.  It will probably take one month to receive the abstract back, and I hope it will not be as bad as the worst one I dealt with which came in four bankers’ boxes.

Mr. Ziko asked can we push the abstract to start with the arch in order to be able to remove the sign as soon as possible?

            Mr. Cox responded I can probably narrow this down for them.  We will give them the property identification numbers which the property appraiser says we own along with the deed containing the identification number.  If I can obtain the chain of title from Mr. Vogel and provide it to them, perhaps they can help us reconcile it.

            Mr. Teague stated once this is done, Mr. Benson knows where to send his surveyors to stake it out, after which we will know what can be done.

            Mr. Ziko stated we will definitely set the monuments as well.

            Mr. Bissell asked is the work which is being done today null and void?

            Mr. Benson responded the work they are doing is for a private client out here.

 

On MOTION by Mr. Lambert seconded by Ms. Dillon with all in favor Mr. Cox was authorized to proceed with the Abstract Report in order to determine the location of CID property boundaries.

 

            Mr. Gatti asked can we authorize the sign company to commence work in the meantime?

            Mr. Cox responded perhaps you should get them to do the design in order for it to get permitted in a timely fashion.

            Ms. Dillon stated they should do the same for the other signs.

            Mr. Bissell stated we should let them know what we want on the signs we own.

            Mr. Ziko stated I penciled in what I want to see on the arch and perhaps the sign company can come up with something when you approach them.  It should say Port of the Islands over the top of the arch; have our logo in the middle; with Hotel and Marina at the bottom.  It is generic and has everything we want to tell people coming down the road.

            Mr. Cox stated it has been a while since I looked at the Ordinance, and the only concern I have when you are doing these is the signage must be correct.  When you have a number of signs which are close together in the same area, there are some specific standards which apply and we must ensure we are in compliance in order for the sign company to get it permitted since they do this on a daily basis.

            Ms. Dillon asked what is the sign on Union Road going to say?

            Mr. Ziko responded I am not certain.  I thought it was going to say Port of the Islands/Union Road.  This is a large sign and someone should have a copy of it.

            Mr. Cox stated we had some proposals which circulated back when we first started this.  Although I do not remember what they are, I am certain the sign company should still have them.

            Ms. Dillon stated I do not believe it is in the letter.

            Mr. Cox stated they had some proposals.

            Mr. Lambert stated all it says is Port of the Islands.

            Mr. Ziko stated this was when Mr. Motwani told us he wanted to put Hotel on it, at which time we told him anything on the sign must be generic.  It is a large sign in a different area of POI on the south side of Route 41.

            Mr. Bissell stated there is also going to be a mobile home park back there.

            Mr. Ziko stated you can put RV Park, which is generic.

            Mr. Lambert stated we must ensure the code allows it.

            Ms. Dillon stated you also have the gun club.

            Mr. Ziko asked are those generic enough to put on there?

            Mr. Cox responded I am not certain.

            Ms. Dillon stated they may have to state Port of the Islands, and when you turn in you may have signs which say Hotel and Gun Club with an arrow in order to avoid having signage on Route 41.  Perhaps the arch should just say Port of the Islands with our logo.

            Mr. Ziko stated I want it to say Hotel and Marina.

            Mr. Cox stated this is more complicated due to the mixed use nature of this development, and we will have to work with the county to get this done.

            Ms. Dillon stated you have residences on this side and in The Cays, as well as a hotel, gun club and possible RV Park on the other side.  Therefore, anything which is done on this side will have to apply to the other side.

 

FIFTH ORDER OF BUSINESS                               Attorney’s Report

            Mr. Mack asked have you heard back?

            Mr. Cox responded I have not heard back since I sent the request to their attorney approximately three weeks ago.  I was out of the office on business most of last week, but I e-mailed him again on Wednesday and did not receive a response by the time I left yesterday.  The owner’s representative, Mr. Wanklin, travels quite frequently.  The end of the due diligence period is May 21st.  I requested an extension through July 20th with no change to the closing date.  The major issue which the county is concerned with as they very well should be is the discussions which are taking place in the legislature with regards to restructuring funding of local government, and I do not believe we are going to get an answer from the county until the legislature resolves these issues in June.

            Mr. Ziko asked do you believe we will be able to get this done quickly?

            Mr. Cox responded they are calling a special session which will focus entirely on this issue.  Historically, there have been complications.  However, something will be done.

            Mr. Mack stated I discovered EMS has no money.  Perhaps they can get a loan from the county.  However, the conflict between EMS and the Fire Department has caused problems.  This is why everything is on hold.  He is prepared to pay two-thirds, after which we will pay one-third.  Mr. Gatti and I met with Mr. Colletta last Friday to discuss this entire issue.  Mr. Colletta has the funds in his budget, and he is prepared to raise $350,000, which puts us in the ballpark of what we are looking for.  He has the money to put up a temporary station, which will cost $50,000 to $100,000.  I will have to get Mr. Colletta a copy of the budget which I am currently working on.  Since Chief Wilson has been involved with the fires, he has not been able to get back to me.  As soon as he does, I am going to give this to Mr. Colletta so he can submit it for approval.  Although I am not certain with regards to the timeframe, Mr. Colletta is prepared to proceed when he is given permission by Mr. Mudd to put up two-thirds of the money.

            Mr. Ziko asked does this have to be approved by the Board of Commissioners?

            Mr. Cox responded it must be approved by the County Administrator.

            Mr. Ziko stated I do not know of any other community in Florida which has to pay for land for their own fire station.  This does not seem appropriate.

            Mr. Mack stated I think it has something to do with being incorporated.

            Mr. Cox stated the county funds all components for fire services and fire stations, through a special assessment on the tax roll.  Since they each have their own area of jurisdiction, each community pays for their own fire station through the special assessment process, and they do not use general revenue fund dollars to build them.

            Mr. Ziko asked are we already paying for this on our tax bill at 4.1%?

            Mr. Cox responded this is for your existing fire services.  It is well within your powers as a District to purchase this land, build a fire station and fund out the special assessment.  However, it depends on how quickly you want to accomplish this.  You may not get an answer in time to do this project if you wait for the county.  You have to decide whether you want to purchase the land and hold onto it until the fire district is ready to proceed.

            Mr. Ziko stated if we go through this process and purchase the land, we do not have any ERCs.  If the county and fire district back out, we may have to hold onto this land for an indefinite period if we cannot sell it because there are no ERCs and we do not have the funds to build a fire station.

            Mr. Cox stated you have a valid concern.

            Mr. Ziko stated if this gentleman is really interested in selling this property, I believe he should include ERCs.  I do not want to be financially responsible to this community for raising $200,000 to $300,000 and having it sit there.

            Ms. Dillon stated if we cannot get an extension beyond May 21st, I believe we should wait until we get permission from the county.  I do not believe we should proceed with this purchase until we have a clear understanding of what the county is going to do.  Will we lose $5,000 if we back out of the process now?

            Mr. Cox responded you are currently not at risk of losing any money.

 

Ms. Dillon moved to renege on the land purchase for the fire station if the District cannot be granted an extension on the contract to July 31, 2007 subject to reconsideration upon approval by the county.

 

            Mr. Mack stated I can tell them we discussed this with Mr. Gatti and you may want to come back when and get a better price later.  Therefore, I recommend you cancel it and start over if we cannot get their attention.

            Mr. Lambert asked can Chief Wilson guarantee we are not going to be in this by ourselves?

            Mr. Mack responded I am trying to get permission through Mr. Colletta in which he can talk directly to Mr. Mudd without getting Chief Wilson involved.

            Mr. Lambert asked is there enough room for him to set up a temporary station behind the lot where they are going to put the new building?

            Mr. Mack responded there is plenty of room.

            Mr. Lambert asked will he be able to locate it in such a way that they could finish the building once the time came without having to find another location?

            Mr. Mack responded there is 2.1 acres, which allows plenty of room.

            Mr. Lambert stated this is not all usable land.

            Mr. Mack stated I believe 2.1 acres is usable.  He is prepared to proceed with this project, but he must get permission and he is currently blocked by EMS.

            Mr. Lambert stated he only has funds budgeted for the fire station, two-thirds of the property and anything necessary to set up a temporary station.

            Mr. Mack stated that is correct.  However, it is going to take three to five years to build a permanent station.

            Mr. Cox stated this can be done through the assessment levy process, but since the project has never been funded before, you will have to send certified letters to each property owner describing the project.  Since the estimated cost amounts to $800,000, funding over three or four years will cost approximately $200 per year for an ERC.  A public hearing will have to be held.  You have to prepare an assessment methodology which can be funded as part of your powers in the statute to do so, but it probably involves a four to six month process in order to get the assessments levied.  Since we will not be able to put them on this year’s tax roll, you will not start to generate revenue until next year unless you decided to do this off roll which will be an administrative nightmare for Mr. Teague.  I am certain it will be more costly than paying the taxes.

            Mr. Mack stated the fire department can borrow the money from the county and you will be paying this back as if you were leasing the property.  Therefore, you will benefit from the county’s tax revenues.

            Mr. Cox stated they will probably adjust your assessment levy over the course of time when they do this project.

            Mr. Mack stated we are up against the combination of these different factions together into one with the ultimate goal of getting the Commissioner’s approval, which is going to change down the line.

            Mr. Bissell asked does Chief Wilson have $400,000?

            Mr. Mack responded he told me he has $350,000, and if possible, we can try to come up with the additional $30,000 to $40,000 in order to proceed.

            Mr. Bissell stated this is going to cost us close to $600,000 after we pay all fees and get everything taken care of.

            Mr. Cox stated I believe the actual sales price of the property is $485,000.  The cost for document stamps at 70 cents per $100 amounts to $3,300.

            Mr. Ziko stated I thought it was more than $485,000.

            Mr. Bissell stated I thought the cost was $550,000 plus expenses.

            Mr. Cox stated title insurance fees are approximately $3,000 and miscellaneous recording fees are approximately $200.  You do not have any issues with intangible third documents on the mortgage.

            Mr. Bissell asked what about your fees?

            Mr. Cox responded I will not charge any fees because I receive part of the title insurance premium since I am acting as the agent on this transaction, which is sufficient.

            Ms. Dillon stated we agreed it was going to cost $550,000, but I still maintain it is important we know all of this information.  However, we have until May 21st on our current offer, and if we do not hear back from them on an extension I still want to adhere to the motion I just made.

            Mr. Cox stated I can write them a detailed letter with regards to the purchase and explain to them the county and the CID are ready to proceed.  However, the county is not willing to extend until the legislature issues are resolved which will show how everything is going to be affected, which is currently out of our control.  Therefore, we do not want to be locked into a deal which dictates planning with no ERCs.

            Mr. Ziko stated it may possibly sit there for an indefinite period.

            Ms. Dillon stated I will not authorize the purchase of this land unless we have a commitment from the county.

 

Mr. Lambert seconded the previous motion.

 

            Mr. Ziko stated this is now going to be dependent on a July 31st extension date.

 

On VOICE vote with all in favor reneging on land purchase for the fire station if the District is not granted an extension on the contract until July 31, 2007 subject to reconsideration upon approval by the county was approved.

 

            Mr. Mack stated I hope to get a response from Mr. Colletta and Chief Wilson by the next meeting.

            Ms. Dillon stated Chief Wilson has a Fire Board meeting on Monday evening.

            Mr. Cox stated the county is absolutely not going to do anything until the legislature acts and restructures their budget.

            Mr. Ziko stated they do not come back until June 15th.

            Mr. Cox stated we are probably not going to know anything until the July meeting.

            Mr. Ziko stated perhaps July 31st is a tight timeframe since we are not meeting until the second Friday, in which case we are going to be in the same situation with the county.

            Mr. Cox stated the actual closing is scheduled for August 20th.  We can extend the closing date which always poses more difficulties.  However, when I represent a seller during a transaction in which the party asks for an extension, I usually tell them to make a second deposit.  A July 31st extension puts you at approximately $20,000 at risk if they ask for it, but I am not going to offer it unless they request it.  Therefore, I need some direction since I may not have time to get back to you.

            Ms. Dillon stated I believe we should withdraw the offer and start over.

            Mr. Ziko asked does this gentleman understand what we are going through?  Does he really want to sell the property?

            Mr. Cox responded I believe he thinks he has a good deal here since he is willing to sign the contract, but you should not give anything away.  However, since I previously represented him, I have a great deal of respect for him and I know he is a reasonable person.  Basically, we either must get the extension through July 31st or we will have to back out.

            Mr. Lambert asked do you require anything else from the Board?

            Mr. Cox responded if he asks about deposits going forward, I need direction.

            Ms. Dillon stated he should not be given anything else at this time.

 

FOURTH ORDER OF BUSINESS                          Manager’s Report

A.                 Distribution of the Proposed Budget for Fiscal Year 2008 and Consideration of Resolution 2007-4 Approving the Budget and Setting the Public Hearing

Mr. Teague stated I cannot attend next month’s meeting.  However, Mr. Goscicki will attend.  Recently, Management Services restructured itself and Mr. Bob Koncar was appointed General Manager.  Therefore, on Friday, June 8th, he is holding his first meeting with all District Managers with Coral Springs staff.

            Mr. Cox stated I will have to attend next month’s meeting via telephone.  A city which I represent is meeting at 7:00 p.m. on Thursday, June 7th, and we do not get out until after 11:00 p.m.

            Mr. Teague stated we have Resolution 2007-4 which sets the public hearing and adopts this budget.  Although it will be essentially approved with this resolution, any necessary changes can be made at the public hearing.  Today’s meeting will commence the budget process and we will work from this document in order to make any necessary changes.  Since Mr. Benson was out of town when we started this process, we just received the updated CIP information.  The first page should replace Page 9; the second page should replace Page 10; the third page should replace Page 11; and the fourth page should replace Page 12, after which there are three pages which should replace the three documents after the budget narrative.  Two projects were added under Capital Improvements, one to be done in 2008 and other to be done in 2009.  The project for 2008 involves construction of the second effluent storage tank as required by the FDEP in the amount of $400,000 along with permitting and engineering costs in the amount of $86,250.  The project for 2009 involves electrical upgrades for the new wastewater treatment plant generator which includes permitting and engineering costs in the amount of $172,500.

            Mr. Benson stated for clarification, these are projects which have been on our list for a few years, but were unintentionally delayed.  However, I want to ensure they do not get delayed any further.

            Mr. Teague stated the electrical upgrades are going to start shortly.

            Mr. Benson stated they are already underway.

            Mr. Teague asked is the generator part of this?

            Mr. Benson responded this is the part we delayed, but I want to ensure we deposit some funds in order to prevent it from being further delayed.  I do not want you to run out of irrigation water once we make these changes, especially during periods of high salinity which is difficult to predict.

            Ms. Dillon asked can you elaborate on the second storage tank?

            Mr. Benson responded it was in the CIP before we started modifying things.

            Ms. Dillon stated we discussed this last month.

            Mr. Teague stated we prepared a summary of all existing contracts and amounts from the Field and Administrative columns, which we used to identify many costs within the budget.  The change in the budget from previous years includes an Actual for 2006 which is the column on the left; after which you have the adopted budget we are currently working from.  The Actuals go through March 2007, after which we forecasted expenditures for the remainder of the year.  The total projected amount will include the amount we are projecting to be expended at the end of this current fiscal year and are being proposed for the Fiscal Year 2008 Budget.  There are a couple of smaller items which will probably need to be adjusted, such as the four supervisors’ salaries which should be $6,000 in the General Fund.  We put the amount between the two funds.  The Capital Reserve figure of $1 million in the General Fund is just an estimate, but there is absolutely nothing there.  The Capital Reserve in the Water & Sewer Fund will increase.  We have $150,000 which will increase to $486,250 since we are moving up the CIP project for the effluent storage tanks.

            Mr. Bissell asked do we have to do anything with our mill rate?

            Mr. Teague responded the millage or assessment is identified collectively one page after the Amortization Schedule.

            Ms. Dillon stated since the pages are not numbered, I recommend pagination once this is redone.

            Mr. Teague stated there is a proposed increase in the General Fund.  The service is being proposed to decrease from $718 to $408.  The Water & Sewer Special Assessments will remain the same.  The net effect of the total assessments per unit will decrease from $2,101 to $1,829.

            Mr. Lambert asked how will we reduce our costs?

Mr. Cox responded when you levied off the assessments for the RV Park property and the Motwani property with the March 1st due date, they accrued interest at the rate of 1% per month, plus the penalty.  Those penalties and interest which we collected were included in the Debt Service Fund.  Therefore, we actually paid down more debt for those properties, even though it cost us more time and money to resolve.  Therefore, it actually wound up being a net benefit for all property owners here since this action reduced everyone’s assessments.  This schedule confirms the bondholders insufficiently paid down the remaining debt.

            Mr. Lambert stated this is what we can expect in years to come until we pay it off.

            Mr. Cox stated your annual debt service is approximately $220,000 for the next three years.  Since it was previously closer to $800,000 per year, we made some significant headway.

            Mr. Lambert stated I noticed over the last couple of years we over-estimated Water & Sewer revenues.  I believe we did it again this year, and I am curious how we determine the correct number.

            Mr. Teague stated we took this consideration and reduced the Water & Sewer Revenues from what they were budgeted at last year, but it just has not been holding up to the budget.

            Ms. Dillon stated we still are faking the interest on our investments, but not in the budget.

            Mr. Cox stated there are certain things which should not be budgeted.  For example, you have zero on the line item for Meter Fees because if the real estate market continues to bottom out, no one will set a meter next year.  You never know when you may have to withdraw interest on investments in the event there a damaging hurricane takes place.  You will have to withdraw on all of those investments in order to receive your FEMA refund, which will leave you with zero interest income.  Therefore, you should not put yourself at risk by budgeting for those particular line items.

            Mr. Lambert stated with regards to assessment revenue, I do not believe we accounted for the fact that we never collect our entire levy, but we are currently at approximately 85% for this year.  Therefore, we are past the point of income coming in for all intents and purposes.

Mr. Cox stated I thought we put into our budget a line item for uncollectible debt at some point.

            Mr. Teague stated we only receive the discount prepayment.  Although we may not lose the money, we do not receive it in a budgetary form, but we may be able to reduce it.  I am not certain how other CDDs determine this, but we apparently received15%.

            Mr. Ziko stated we started at $141,000 on the reduction, but we received $911 out of the $1,053,000.  Was this for Mr. Motwani’s property?

            Mr. Lambert responded I looked at two other properties which are delinquent and I believe this just happens sometimes.

            Ms. Dillon stated the number is just not going to be as high.

            Mr. Lambert stated this may be true, but there are a lot of other properties other than those two.

            Mr. Teague asked does the county supply this information?

            Mr. Cox responded I am not certain.  However, we discussed this briefly a couple of weeks ago, and they will give us a list of all the other properties out here which we will check on.

            Mr. Teague stated I spoke to someone at the Tax Collector’s office a couple of days ago when I was looking at the website, and they have some databases which can be power-loaded.

            Mr. Cox stated I believe they published a list in the newspaper, but they should also be able to plug in their spreadsheet which will indicate the properties in this township and range.  It should be fairly easy to find this on their published list.

            Mr. Ziko stated there is one on the first and third pages according to the list in the newspaper.

            Ms. Dillon stated it appears they deliberately opted to do this.  Can we find out who they are and send letters?

            Mr. Cox responded we can send a letter warning them a tax certificate will be auctioned resulting in the possibility of losing their property within three years if they fail to pay their taxes.  They are going to get it from the Tax Collector, since it is his job to collect the money, not ours.

            Mr. Lambert asked are you going to determine whether or not we can get these delinquent properties taken care of?

            Mr. Teague responded yes.

            Mr. Bissell asked what about the mill rate?

            Mr. Cox responded you do not have a millage rate.

            Mr. Bissell asked what about the assessment?

            Mr. Cox responded since you are not required to include this on the trim notice, since it does not need to be published separately.  However, we will indicate it when we advertise the public hearing, which will serve as sufficient notice to property owners.

            Mr. Bissell asked are we going to collect more this year than last year?

            Mr. Cox responded it appears you are going to have a net reduction of special assessments.

            Mr. Bissell asked why is this going to happen when we need the money?

            Ms. Dillon responded the debt service decreased.

            Mr. Bissell stated I do not agree with it since we have additional expenses.

            Mr. Cox stated we can discuss this at the public hearing if you wish to accelerate a couple projects which are in your Capital Improvement Plan.  The possibility of net reductions of 12.9% on residential assessment rolls gives you the ability to increase your available revenue to these capital improvement projects without increasing the burden to property owners.

            Mr. Bissell stated several years ago we made a motion to request a certain amount of money for a certain length of time which I believe is coming up within one year.

            Mr. Cox stated there was no timeframe.  When I looked at those records, I made it absolutely clear you were not making any promises this would be the only amount for five years.

            Mr. Bissell stated there are many people here who do not agree with this.

            Mr. Ziko stated I do not see these people at our meetings.

            Mr. Lambert stated these people attended the meeting in which this was passed.

            Ms. Dillon asked what does this reduction in debt service amount to for ERCs on the tax bill?

            Mr. Cox responded it amounts to $310 per ERC.

            Ms. Dillon stated if we decided to keep $310 for use on other projects, and at the same time we are paying out less in debt service, we will see an increase in funds.

            Mr. Ziko stated $310 per ERC is much more than 12%.

            Mr. Cox stated it amounts to 43%.  There was a 10.7% increase in the General Fund and a 0% increase in the Water & Sewer Fund, which is where the CIP funds come from.  Therefore, it nets out anywhere from a range of mostly 12% to 13% which looks small and the increase did not apply to some properties.  The 10.7% increase in the General Fund only floated to an increase of approximately 2.5% on the tax bill.

            Mr. Ziko asked is the real savings on an ERC going to amount to $300?

            Mr. Cox responded that is correct.

            Mr. Ziko asked is it going to decrease the tax bill?

            Mr. Cox responded their assessment per ERC will decrease from $2,100 this year to $1,830 next year for a total of $270 per ERC.  However, they vary by property because of the type of unit they have.

            Mr. Ziko stated it does not vary by ERC.

            Mr. Lambert stated you mentioned an issue with zoned property in which there was a sewer plant and water plant.

            Mr. Cox stated I believe they did not pay a connection fee.  Do you recall what the connection fee was which you were required to pay when you purchased your property?

            Mr. Gatti responded I do not recall.

            Mr. Cox stated it was a certain amount which they paid when they purchased their property and capacity into the system.  Therefore, they transferred this capacity into the new systems when the old ones were removed.

            Mr. Lambert asked were those particular lots involved in the bond process?

            Mr. Cox responded although they were involved in the bond process, the assessment methodology determined they paid their pro rata share.

            Mr. Ziko asked are they still paying the maintenance fee?

            Mr. Cox responded that is correct.

            Mr. Lambert stated if we obtain another bond once the previous one is paid off, it will start over again with everyone, which I was not certain I understood.

            Mr. Ziko asked are 22 properties involved?

            Mr. Cox responded I believe 37 properties are involved.

            Mr. Gatti stated there are 33 properties which were part of Phase I.

            Mr. Lambert asked will we be able to comment on and discuss this at the next meeting?

            Mr. Teague responded absolutely.

            Mr. Cox stated several districts actually hold budget workshops which are separate from the regular monthly meeting due to the time involved with going through the budget line by line.  You may consider going back to a zero-based budget in order to build it back up; try to determine exactly where you are spending and where you may be able to save money; or look at other options.  However, you will have to hold a budget workshop if decide to pursue any of these options.

            Ms. Dillon stated I do not believe it is necessary to go back to a zero-based budget.  Most of our expenses are directly tied to Mr. Benson and the CIP.

            Mr. Lambert stated we have two meetings between now and the public hearing.  Does this give us enough time if we discover at the next meeti