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, June 8, 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:

 

            Edward Goscicki                                              Severn Trent Services

            Dan Cox                                                          Attorney (Via telephone)

            Ron Benson                                                      Engineer

            Robert Dick                                                     Field Manager

            Robert Edge                                                     Field Operator

            Robert Migdal                                                  Severn Trent Services

            Tom Mack                                                       Staff

 

FIRST ORDER OF BUSINESS                               Roll Call

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

 

FIFTH ORDER OF BUSINESS                               Engineer’s Report

            The record reflects the Board continued the meeting during which Mr. Benson took the Board to the entrance in order to show them the boundary lines.  This portion will not be recorded unless significant issues warrant discussion.

            Mr. Benson stated we looked at the property lines along Newport Drive in the vicinity of the South Hotel with regards to the entrance sign which has been discussed over the last few meetings.  We concluded it falls on the CID’s property as opposed to the hotel’s property.  The aerial photograph with the property lines in this area showed two lines for this section.  You can disregard the straight line for now since it was based on Mr. Cox’ research.  There were conflicting deeds and he determined which one had precedence over the others.  Therefore, it is the line which gives you a narrower width of Newport Drive, as opposed to the one which gave you a width of 184’.  Those are the main conclusions of Mr. Cox’ research as to the location of the survey stakes and which corners take precedence.

            Mr. Lambert stated the accurate line is over here which goes around and straight down.

            Mr. Benson stated there are two different descriptions.

            Mr. Lambert asked should this line stay in?

            Mr. Benson responded that is correct.  The other issues we looked at which were discussed over the last few meetings were the small walls by Route 41 and Newport Drive.  The wall on the east side is on the hotel’s property and the wall on the west side is on the CID’s property.

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the

May 11, 2007 Meeting

            Mr. Bissell stated each Board member received a copy of the minutes of the May 11, 2007 meeting and requested any additions, corrections or deletions.

            Mr. Lambert stated on Page 6 in the sixth paragraph from the bottom, and Ms. Sue Beck’s husband repainted should replace by Ms. Sue Beck and my wife.  Did we get the extension from the property offer to July 20th or July 31st?

            Mr. Bissell responded we got the extension to July 20th.

            Mr. Lambert stated on Page 17 in the tenth paragraph, fire station should replace kitchen.  On Page 31 in the fifth paragraph from the bottom, Newport should replace Union.  On Page 40 in the fourth paragraph from the bottom, compacted should replace contacted.  On page 47 in the second paragraph under the first motion box, driveways should replace side rocks.  On Page 48 in the third paragraph, electricity should replace water at the end of the sentence.

            Mr. Ziko stated on Page 6 in the sixth paragraph from the bottom, by Ms. Sue Beck should be deleted and my wife should be left in.

            Ms. Dillon stated on Page 41 in the sixth paragraph, I was unable to determine the meaning of the statement.

            Mr. Benson stated this was a question in response to my statement in which the county was forcing us to prove we were able to provide water and sewer service to our own plant.

 

On MOTION by Mr. Lambert seconded by Ms. Dillon with all in favor the minutes of the May 11, 2007 meeting were approved as amended.

 

 

THIRD ORDER OF BUSINESS                             Manager’s Report

A.                 Questions and Comments on the Revised Budget

Mr. Bissell stated for the record, we decided to ask for the same amount of funds for next year as we did for this year.  I just want this to be clearly reflected since this did not occur in the last year or two.

            Mr. Lambert stated if I understood correctly, we will need to increase the budget for the General Fund.

            Mr. Bissell stated I thought we had to increase the Water & Sewer Fund.

            Mr. Goscicki stated we were going to transfer funds from the General Fund to the Water & Sewer Fund.  We did the major shift in the assessments one year ago and kept the total the same but took a significant shift out of the General Fund, reduced it and increased the Water & Sewer Fund.  The total came in at slightly less than the previous total assessment for the last fiscal year.

            Mr. Lambert asked are the items in which nothing is being proposed for 2008 under the Water & Sewer Fund only there for reference to earlier items?

            Mr. Goscicki responded that is correct.

            Mr. Lambert stated we will not see those blanks once the budget is approved.

            Mr. Goscicki stated those line items will be deleted once the budget is approved.

            Mr. Lambert stated we are proposing $250 for the capital outlay in the proposed General Fund Budget.  We indicated $500 in the past.  I do not believe $250 is a practical number.  I would rather see $500 or $1,000.

            Mr. Goscicki stated anything under $1,000 will not be considered a capital expense in most governmental entities.  You will consider it an operating expenditure to charge for supplies and materials.

            Mr. Ziko stated the 2006 Budget does not indicate we spent anything.

            Mr. Goscicki stated I believe it is a carry-over from the previous years and should be deleted.

            Mr. Lambert stated if we are going to continue to collect the same amount of money for the Water & Sewer Fund, I wonder if we must identify the projects we are going to spend it on.  We talked about moving a couple of projects up if we were going to entertain assessments.

            Mr. Bissell stated I do not believe we identified them in the budget.

            Mr. Goscicki stated the Capital Improvement Program on Page 22 identifies projects you were planning to double-budget for in 2006; budget for in 2007; and what you are planning to spend in 2008, 2009 and 2010.  These projects are identified in terms of what you want to move forward on.  This Board certainly has the right to move funds within the Capital Improvement Program and determine whether or not you are going to proceed on a certain project, as long as you stay within the budget.

            Mr. Lambert stated I want to ensure we can justify continuing to collect on these.

            Mr. Goscicki stated you can certainly justify the amount you have.  However, I am concerned whether or not you have sufficient funds since you are running a deficit in the Water & Sewer Fund over the next couple of years until 2009.  You are still in a deficit spending mode in the Water & Sewer Fund and on borrowing money from the General Fund to cover this in 2007 and 2008.

            Mr. Lambert asked is budgeting for depreciation expense something municipalities and governments do?

            Mr. Goscicki responded I am not certain.

            Mr. Lambert stated I do not care if we call it Contingency.  I am not certain how depreciation is budgeted.  It appears to be more of a balance sheet item.

            Mr. Goscicki asked what line is this on?

            Mr. Lambert responded it is on Page 12 under Water & Sewer in the Administrative category.  I do not understand how we budget for depreciation.

            Mr. Ziko asked is this just to adjust the net value of the plant?

            Mr. Goscicki responded I am not certain since I have not seen this in other budgets.

            Mr. Lambert asked can you ask Mr. Teague to look into this and get back to us?

            Mr. Goscicki responded yes.

            Mr. Lambert stated I do not care if we use Contingency, but I do not like depreciation.

            Mr. Goscicki stated I will make a telephone call this morning before the meeting is adjourned in order to try to get some clarification on this.

            Mr. Lambert asked has the list of Capital Improvement Projects on Page 22 been recently updated than the one we currently have?

            Mr. Bissell responded Mr. Benson usually has the data.

            Mr. Benson stated this is the one which Severn Trent is keeping with input from me.  I believe this is the canal pump station project as well as the second reuse pump we combined which shows us spending $250,000 this year and $150,000 next year since it is a $400,000 project which is scheduled to start this year and finish next year.  Although we are not going to spend $250,000, I will update you later about the project.

            Mr. Ziko stated I noticed the special assessment levy collected with the taxes by Collier County did not show anything in April or May.  I thought the hotel across the way caught up with what they owed us in April.  However, I do not see anything here which indicates we have this money.

            Mr. Lambert stated they paid off what they owed for the previous year, but they are delinquent for 2006.

            Mr. Ziko stated this should show up in the levied year.  We cannot put back revenue from one year ago into our funding.  We should see it when it comes due.  A portion of the revenue should come out of the tax certificate.

            Mr. Goscicki stated I will find out where it is and why it is not showing on here.  If you received revenue from this year, it should be in this year’s financials.

            Mr. Lambert stated it is approximately $150,000.

Mr. Goscicki stated I recall this amount as being outstanding.

Mr. Lambert stated the amount is not indicated on this documentation.

            Mr. Goscicki asked are you looking at the budget itself?

            Mr. Ziko responded I am looking at the revenues and expenditures in the General Fund, since it shows the actual income coming in.

            Mr. Goscicki stated it should show on the financials.  I will determine why this amount has not been booked yet, but it certainly should have shown up as being received.

            Ms. Dillon asked should the information from the line item for Information Technology be included under Management Consulting Services?

            Mr. Goscicki responded this fee is for your utility billing which is currently provided by the Coral Springs Improvement District, which is the fee they were charging as part of and in addition to what we are billing under our contract.  This was their fee for the use of their computer system, which should be deleted from your budget for next year since we are removing the billing system from their computer and installing it on our system.  Therefore, we will provide this service directly through our own utilities.

            Ms. Dillon stated the line item should not be on either one.

            Mr. Goscicki stated it should not be there, but I am not certain whether or not Mr. Teague assessed moving of the billing system onto ours, which is a more expensive process.  There are a couple of reasons for doing this.  First of all, there is no contract between Severn Trent and the Coral Springs Improvement District.  This evolved over time before Severn Trent purchased the business from Moyer & Associates.  They had a small billing package with Coral Springs Improvement District, which is basically a utility district.  We are concerned there is no backup or redundancy on their system, which may cause problems in the event of a hurricane.  The capabilities are somewhat less than what we have.  We actually use this software in our Texas operations, and since you have a contract with Severn Trent to provide the service, we believe it is necessary to get this on our own billing system.  We will go to an envelope system as opposed to a postcard system, and as we get more involved with the requirements for public information on water conservation, annual reports and public notifications, we can do this as part of the monthly bill as opposed to doing it separately.  We are actually moving forward with this, which is my goal since I am on the operating side providing the service.  We are looking at a July timeframe to have this done.

            Mr. Ziko asked will we see the same information on a bill as opposed to a postcard?

            Mr. Goscicki responded that is correct.  We are looking to set up other features which we will discuss with you as we move forward.  Currently, the goal is to convert the same level of service on a one-page bill which will be in an envelope as opposed to a postcard.  Another benefit to this billing system is being able to do electronic meter reading through the use of a hand-held computer in which you are providing data entry directly.  Since nothing is being done on paper, accuracy should improve.

            Mr. Bissell asked will Mr. Daly be involved anymore?

            Mr. Goscicki responded Mr. Daly will be out of the loop with regards to the new system.  It will be handled by the Utility Billing Manager in the Sarasota office, Mr. Larry Daszynski.  We will be setting up customer service in Sarasota to handle all customer service issues as opposed to the Coral Springs office.

            Mr. Ziko stated if we receive an envelope along with a piece of paper, the postage will increase from the postcard rate to the first class rate.  Will there be an increase in administrative costs thereby increasing the bill?

            Mr. Goscicki stated it will increase slightly.  You are currently paying us less than I am paying Mr. Daly.  Since Mr. Daly just increased our fee significantly, we would have to increase the rate if we stayed with them because Coral Springs Improvement District looked at actual service costs for subsidizing POI as well as two other districts they provide this service to and increased the fee.  In fact, they tried to do this last year and we refused to pay since we were not given any advance warning and there was no money to pay it in this budget.

            Mr. Ziko asked what are the chances of going to a quarterly billing fee in order to save some of these costs?

            Mr. Lambert responded we discussed this once and decided it was not worth it to change.

            Ms. Dillon stated it was too much of a problem for people who were not here year-round.

            Mr. Lambert stated I personally do not believe it is a problem.

            Mr. Ziko stated I believe quarterly billing will save us money.

            Mr. Goscicki stated billing on a quarterly or bi-monthly basis can cut your costs in half.

            Mr. Bissell stated I agree with this but if a resident has a leak which they did not know about for three months, their bill will be astronomical.

            Mr. Ziko stated you are looking at a hypothetical situation.  If you have a leak the day after the meter is read, it is still going to amount to the same problem since it will not be read for an additional 30 to 31 days.

            Mr. Lambert stated I believe the real concern was for people not here during the summer.

            Ms. Dillon asked what is involved in deciding to do this?

            Mr. Goscicki responded if we stay with Coral Springs Improvement District the cost will increase.  We are required to transfer the service to Severn Trent as part of our agreement with you.  I thought the costs were already related to you.  Mr. Teague and I apologize for this oversight.  I will get a memorandum to the Board members this coming week which will outline terms of the billing if you stay with Coral Springs Improvement District.  First of all, we will have to increase the amount and we will have to enter into an interlocal agreement with them to provide the service.  I currently do not have this agreement with them and I cannot recommend you use them since I do not have the security and redundancy in the system to get your records and assure the appropriate services are being provided.

            Mr. Ziko asked will we also be reducing the meter reading?

            Mr. Goscicki responded it will free up the field staff but not reduce the cost since it is part of the utility operating costs.

            Mr. Lambert asked is there an option in the future of going to quarterly billing?

            Mr. Goscicki responded if the Board wants to change it we can come back with a credit as soon as we determine the reduction in price.

            Mr. Lambert asked are you allowing some time to test this?

            Mr. Goscicki responded we will run parallel for one month.  We perform system conversions on our billing system routinely and this system has been operational for 20 years.

            Mr. Lambert stated I am concerned about our last experience with your system conversion changes.

            Mr. Goscicki stated we are not creating a new billing system.  Our company has been using this system for 20 years, and upgrading it on an annual basis.  It is a tried and true technology.

            Mr. Ziko asked can someone from Severn Trent give us an estimate of the cost for quarterly billing as opposed to monthly billing?

            Mr. Goscicki responded I will get a report to the Board next week outlining the new cost for the monthly billing along with a price comparison for both bi-monthly and quarterly billing.

            Mr. Bissell asked can you put this on the agenda for next month?

            Mr. Goscicki responded I will put it on the agenda and ensure you receive the information ahead of time since you will need this information for the budget.

            Ms. Dillon asked are you referring to the Special Services Utility Billing in the proposed budget under Water & Sewer?

            Mr. Goscicki responded that is correct.

            Ms. Dillon stated we increased the budget under this category.

            Mr. Goscicki stated Mr. Teague did indicate this increase in the proposed budget.

            Ms. Dillon stated the purpose of this increase is to comprehend the change in the billing method.  If we went bi-monthly or quarterly, the number will decrease.

            Mr. Ziko stated I thought you mentioned this billing was part of the Information Technology category.

            Mr. Goscicki stated I will have to determine the purpose of Information Technology since this was the only place I have seen this reference for other districts.

            Ms. Dillon stated according to the explanations, this is for the estimated cost of computer services provided by Severn Trent for accounts payable, general ledger and electronic archiving.  I thought it was part of the contract which is the reason I questioned it.

            Mr. Goscicki stated the billing terms of all of our contracts are set up differently.  Some contracts are set up as lump sum agreements, which include all work.  Others are set up as base contracts in which supplies and materials are billed separately.  Therefore, I will have to defer back to Mr. Teague since I have not looked at this contract and budget in over one year to ensure this is an agreement with our contractor.

            Mr. Gatti asked will $600,000 be spent this year for the membrane system?

            Mr. Benson responded we anticipate substantial completion by September 15, 2007.

            Mr. Gatti asked are those numbers still accurate?

            Mr. Benson responded I believe a small amount of money may have to be shifted from this year to next year.

            Mr. Gatti asked is the entire cost still at $1.5 million?

            Mr. Benson responded this is for the total wastewater program.  The cost of the membrane is $1 million.  The total for the wastewater program will not be spent this year.

            Ms. Dillon stated we are certain many of these projects will not come in under this budget.

            Mr. Benson stated we will start projects, but we will not spend as much as we had in the budget this year.  However, you will spend the remainder through the early half of next year.

            Ms. Dillon stated on Page 22, Item I-2, Fire-Irrigation Pump Station – Modify canal suction intake to a floating system, no amounts are indicated.

            Mr. Benson stated this project was deleted.

B.                 Field Manager’s Report

Mr. Edge stated I want to discuss the irrigation for the fire protection system.  We approved a $25,000 repair last month and our technician from Severn Trent is here to discuss this with you since he was involved with this.  His name is Mr. Robert Migdal.

Mr. Migdal stated my original assignment was to design a system at the water treatment plant to replace all degrading or deficient equipment at the water plant which runs the high service pumps.  We also remove wells.  However, the DEP asked for generator status alarms, which I added to the system.  Since we are currently having difficulties with the irrigation system, this proposal covers all repairs.  I am seeking your approval to repair the irrigation system which is described in Examples #3 and #4.  We can discuss this entire proposal if you so choose, but Examples #3 and #4 are considered to be the most important portion of this repair since the controls for the irrigation and fire control system are sitting on the canal.

Ms. Dillon asked did we approve replacement of the irrigation control panels last month in the amount of $20,000?

            Mr. Edge responded that is correct.

            Mr. Migdal asked do you consider these to be irrigation control pumps?

            Mr. Edge responded it is the fire protection system, which is the most important function.

            Mr. Migdal stated this is for both the irrigation control and the fire control pump station sitting on the canal.  It consists of the work of variable sized pumps which are 10-horsepower, 30-horsepwer and 250-horsepower.  At this time, the controls which start and stop those pumps in order to maintain pressure in the line have malfunctioned, and we have been doing everything possible to make them work properly.  Mr. Edge discussed with you during your last meeting the need for funds to replace and upgrade all of those controls to a more reliable system in order to give us better control in maintaining pressure in the line, which is what Example #3 does, and we will also remove all existing electro-mechanical controls and install electronics which will monitor and control the variety of existing pumps in order to maintain the system at a cost of $16,417.28.

            Mr. Ziko stated my booklet goes from Example #3 to Example #5.

            Mr. Migdal stated Example #5 is an option to Example #3 in the event we want to add a radio telemetry system for the future which will send generator alarms back to the plant and allow the operator to monitor the station.  In other words, we will have the wireless radio system added to the electronics.

            Mr. Ziko stated I understand this.  Example #4 costs $29,000 and does not have a breakdown.

            Mr. Migdal stated the last page of the booklet contains details of Example #4.

            Mr. Bissell asked does Example #4 include everything in Examples #3 and #5?

            Mr. Migdal responded we have had some malfunctions with other electrical equipment used to start motors for transformers and motor contactors, which is not part of Example #3.  This is all heavy duty electrical equipment contained in the panel which malfunctioned as a result of wearing out.  One of the 50-horsepower and 30-horsepower pumps is currently not running.  Therefore, we are currently running on a 10-horsepower and 50-horsepower pump to maintain pressure on the line.

            Mr. Bissell asked why are they breaking down since we replaced them five years ago?

            Mr. Migdal responded you may have replaced the motors and the pumps.

            Mr. Bissell stated we replaced the control panel.

            Mr. Migdal asked was the entire control panel replaced five years ago?

            Mr. Bissell responded it was not completely replaced, but the switches which started the motors when the pressure dropped to start another pump were replaced.

            Mr. Migdal asked are you referring to the little pressure switches which are mounted on the pipes?

            Mr. Bissell responded I do not recall.

            Mr. Benson stated I believe it involved replacement of some parts as opposed to a total replacement.

            Mr. Bissell stated I believe the cost was approximately $5,800.

            Mr. Migdal stated I am not certain what was replaced.  I was over there and noticed broken circuit breakers and motor starters which are falling apart.  Two pumps do not run because the two multi-stage transformers which start the pumps in multi-stages in order to avoid a rush of power when you start the pump are definitely bad and I do not know whether or not they can be replaced.  I have not looked into this yet because I do not believe it is fair to you to try to piece this together.  You spent $5,800 last year to piecemeal this back together and you are still experiencing problems.  My proposal for a worst case scenario is to take the two 50-horsepower pumps and the 30-horsepower pump and completely gut all of the motor starters and transformers, and replace them with variable frequency drives.  A variable frequency drive is similar to a dimmer switch, and as the light gets bright the motor will speed up and as the light gets dim the motor will slow down.  In this scenario it is not necessary to have a variety of pumps starting and stopping in order to maintain pressure for a system.  You can pick up a set point for the pressure and the variable frequency drive will speed up or slow down the motor in order to achieve the desired pressure in the line.  All of these electro-mechanical motor starters and transformers along with the equipment which is in there are currently failing.

            Mr. Bissell asked will the 50-horsepower pump automatically come on if the 30-horsepower pump fails?

            Mr. Migdal responded that is correct.  If they are unable to meet the pressure, the 50-horsepower pump will turn on and speed up to meet the pressure.  If this one cannot meet the pressure, the second 50-horsepower pump will turn on.  Therefore, both 50-horsepower pumps will run.

            Mr. Ziko asked what about the 10-horsepower pump?

            Mr. Migdal responded this will probably render the 10-horsepower pump obsolete.  Although we can leave it there as a backup, I really do not believe we need it because the 30-horsepower pump can run at such a slow speed it can maintain the pressure in the line all the time and the electricity consumed will be less because the motor is running at a slower speed, which consumes less electricity than a motor running at full speed.

            Mr. Bissell asked how much will it cost us to repair this up to grade?

            Mr. Migdal responded if you want the three VFDs, the cost is $29,266.60.

            Mr. Bissell stated this amounts to $9,000 more than we already approved.

            Mr. Migdal stated Example #3 is completely separate from Example #4.  You have to take care of Example #3 even if you keep the equipment the way it is and piecemeal the electrical equipment currently in place.  Example #3 must be done in order to upgrade the controls on the control panel.

            Mr. Lambert stated I understand the equipment which was installed over there came from somewhere else.

            Mr. Benson stated this was brand new equipment more than 15 years ago, which unfortunately, was not kept up as well as it should have been.  As noted in some of my reports years ago and Mr. Bissell reminded us, some parts were purchased which served as a temporary repair at the time.

            Mr. Lambert stated I want to ensure the motors were sized for our needs out here and we do not have someone else’s motors which may be too big.

            Mr. Benson stated this is not the case.  However, Mr. Migdal wants to coordinate what he is doing in order to go along with the modifications coming up later this year at the pump station which slightly changes the operation, and we gave him some of those conditions.  Once we have the water coming from the wastewater plant as the primary source of irrigation, the water from this station will be treated at a lower flow rate pumped up to the tank at the wastewater plant during the day.  At night, it will then be pumped back out, but the smaller pumps will still come on sometimes during the night when high demands occur.  The large pumps are your backup in the event there is a fire and the other pumps cannot keep up.  You need all pumps.

            Mr. Lambert stated I want to ensure we are working with the appropriately-sized equipment for POI.

            Mr. Benson stated I believe you are referring to a few years ago when we tried to get some used equipment from Collier County, which they gave to Everglades City instead.

            Mr. Gatti asked are we going to have a current and operational system which you will be comfortable with if we give you everything you ask for?

            Mr. Migdal responded that is correct.  We are experienced with this equipment since we have these identical systems throughout the state.  As a matter of fact, this type of equipment pumps wastewater as well as irrigation.

            Mr. Gatti asked do you believe we are going to experience more problems with the overall system beyond what you are currently looking at?

            Mr. Migdal responded this equipment will allow the potential of installing some sort of telemetry system at the wastewater plant as the drawing shows if you elect to automate the water treatment plant in the future.  We will also have the capability of monitoring and controlling it.

            Mr. Gatti asked will it be compatible?

            Mr. Migdal responded yes.

            Mr. Gatti stated we are obviously concerned about money, but the water and sewer treatment plants are extremely vital to our community.

 

Mr. Gatti moved to approve the entire electrical upgrade of the irrigation and fire control panel in the amount of $51,560.52 at the water and wastewater treatment plant.

 

            Mr. Ziko asked are we replacing three motors?

            Mr. Migdal responded you are replacing three variable frequency drives.

            Mr. Ziko asked are you referring to the motor which drives the pump?

            Mr. Migdal responded the motor and pump are connected.  This is an electrical device providing power to the motor to be able to turn.  If I can use the scenario of the dimmer switch again, the light bulb is the motor and the pump, while the dimmer switch is the variable frequency drive.

            Mr. Goscicki stated the correct industry terminology is variable frequency drive.  However, a more common terminology is variable frequency controller.

            Mr. Ziko asked is this a sophisticated motor starter?

            Mr. Migdal responded that is correct.

            Mr. Benson stated it replaces the motor starter with a device which is not giving a constant load of power to make the pump go at a constant speed.  It allows you to adjust the speed to your needs.  It is more sophisticated and gives you more operating flexibility.

            Mr. Bissell asked will there be two new motors at 30- and 50-horsepower?

            Mr. Benson responded no.

            Mr. Bissell stated the motors are in two parts, and they are variable with open chassis.

            Ms. Dillon stated they are referring to the drives as opposed to the motors.

            Mr. Benson stated this is a sophisticated motor starter, as opposed to the actual motor or pump.

            Mr. Bissell asked is this part which you want to install considered to be the latest technology?

            Mr. Benson responded that is correct.

            Ms. Dillon stated I understand we are going to get these new motor starters, but I want to know what condition the motors are in.

            Mr. Benson stated the motors were rewound or replaced at one time.  However, we have no way of knowing when they may burn up.  I cannot predict the future in this respect.

 

Mr. Bissell seconded the previous motion.

 

            Mr. Lambert asked if we were to go with Examples #3 and #4, are we in a position to approve Example #5 in the future when we commence improvements on the water plants?

            Mr. Migdal responded that is correct.

            Mr. Lambert stated we have not eliminated the ability to set up for radio control information.

            Mr. Migdal stated doing Example #3 gives you the capability of adding this option.

            Mr. Lambert stated in other words, we cannot go to Example #5 until we have something at the other end to receive the information.

            Mr. Migdal stated that is correct.  If you install it now, it will be sitting there since there will not be any function at this time.

            Mr. Ziko asked how will we control it?

            Mr. Migdal responded it will be locally controlled.  This proposal includes a touch screen controller for the operator to change the set points in order for the pumps to maintain pressure in the line at his discretion.

            Mr. Ziko asked are there any alarms?

            Mr. Migdal responded the only alarm we will rely on outside of the telemetry system is the telephone dialer which is currently there and in working condition.  You must discuss the remainder of this proposal in order to add a telemetry system to the plant which will eliminate the underground cable which runs out to the wells.

            Mr. Ziko stated this is a project in the additional amount of $6,000 in order for it to run properly, which is Example #5.

            Mr. Migdal stated Example #5 is useless without Example #1.

            Mr. Goscicki stated you should break this down in order to make it clear to the Board as to what must be done; work to be done which is both beneficial and a requirement by the DEP; and enhancements which are being recommended to the Board.

            Mr. Ziko stated I can see we need Examples #3 and #4, but we also want to ensure Mr. Edge does not have to run his truck to the other side too often.

            Mr. Migdal stated I do not believe this will be a problem.  It will be self-sufficient once it is programmed.  In fact, it will be so reliable once it is established, he will not have to go out there often at all.  When we first came on board those pumps did not shut off.  As a matter of fact, they ran throughout the evening with no irrigation or fires.

            Mr. Ziko stated this is the reason I questioned the 10-horsepower pump.  One pump will have to run anyway.

            Mr. Midgdal stated although the system is tight, if there is a small leak and the pressure drops from a set point of 70 PSI, the horsepower kicks on both and brings the pressure back to 70, after which it shuts off.  If there is a large drop in pressure, the 30-horsepower comes on.  With a VFD, any slight drops in pressure are going to ramp up the pump to satisfy the little bit of demand.

            Mr. Ziko stated one pump will have to run if it is variable.

            Mr. Migdal stated it all depends on the demand.  Theoretically, if all dimensions are not leaking and no one is using water, the system should maintain its pressure and everything should shut off.

            Mr. Edge stated the pressure is currently maintained and all pumps are off.  They may turn on once per hour.

            Mr. Migdal stated we have done a lot of work to make it more reliable, but when we first came on, those pumps ran constantly without shutting off even though you were not using any water.  Mr. Edge and I believe it is imperative to replace all controls in order for the pumps to turn on and off at the appropriate times.

            Ms. Dillon asked what is the down side of delaying Example #5?

            Mr. Ziko responded Example #5 cannot be done until further work is done at the water plant.

            Mr. Migdal stated we can do Example #5 while we are installing the controller, but it cannot be used yet.

            Ms. Dillon asked what is the advantage of installing Example #5 immediately?

            Mr. Migdal responded the only advantage is a small savings in the labor and of course, I am not certain what the equipment prices will be in the future.  I am certain the prices will increase.

            Ms. Dillon stated in my experience, equipment which sits without being used deteriorates horribly.

            Mr. Migdal stated we do not intend to charge you an exorbitant amount for many of the improvements and enhancements which need to be done at some point in time.  Some improvements are more critical than others.  Some are really not discretionary, as it is necessary for them to be done.  However, it is necessary to upgrade your system to the current standards.  Almost everyone is doing this, not only for fire and irrigation systems, but at water and wastewater plants.  Your current technology is old.  We are at a disadvantage since we do not have records from five years ago, and some of those transformers are no longer available.  Therefore, it is imperative to bring this up to today’s technology.  The reliability will increase by 100%.  We are in constant communication with the fire department, and we want to let residents know we are going to do the best we can with our fire protection in the event of a fire.

            Mr. Gatti asked will we need to look at replacement of the motors after this is up and running?

            Mr. Migdal responded we are maintaining the motors and pumps on a continuous basis.  If the motor fails, we replace or repair it.  However, the controls in those panels contain a lot of redundancy.

            Mr. Gatti stated I am concerned other equipment is going to fail in the future.

            Mr. Migdal stated this project is going to upgrade the entire fire protection system.

            Mr. Lambert asked have some of the items on this drawing been dictated to us by DEP?

            Mr. Migdal responded yes.

            Mr. Lambert asked which ones have been dictated?

            Mr. Migdal responded I am not certain how Example #1 can be done without a wireless telemetry system, since it involves getting the well status and controls and the generator status and alarms back in the remote well field.

            Mr. Lambert asked is this required by the DEP?

            Mr. Migdal responded since they require it to be alarmed, this is my recommendation.  I am not certain whether or not you can get the telephone company to install a telephone line and dialer out there, which may be an option as well.  However, I am proposing we eliminate all underground wiring since it is lightning-prone and extremely corroded. Going with the wireless communications system from the water treatment plant out to the wells allows you to get the status of and control the wells; and to get the generator alarm status back to the pump.  In order to do this, we must install a receiver or control system at the water plant to replace the existing controls.  I hope you know the condition of the existing equipment.

            Mr. Bissell asked will Example #5 take care of this?

            Mr. Migdal responded I do not want to disagree with you, but I worked in many plants throughout Florida, and this panel is the worst I have ever seen.  I am extremely concerned about it because if one thing goes bad in the panel, you may not be able to pump water to the system without the help of an operator’s hand to turn the switch.

            Mr. Goscicki stated they are convinced there is more equipment back there in need of repair or replacement.  It is actually good news everything else is not as bad as the control panels.

            Mr. Lambert stated if we are considering spending more than $50,000, I believe we should get a second opinion.  I hate to have three companies involved with different aspects.

            Mr. Goscicki stated I do not believe you are required to do this.  One of the benefits we brought when you hired Severn Trent as your contract operator was our ability to provide additional services such as this along with additional value in the work with a defined markup, giving the Board the ability to look at and solicit prices from us to do this work.  You certainly have the option to authorize Mr. Benson to solicit bids, but one of the benefits with Severn Trent is our ability to come to the table and provide you these services.

            Mr. Lambert asked does this price consist of your cost plus an agreed-upon markup in our contract?

            Mr. Goscicki responded that is correct.  Mr. Benson can also comment on the cost.

            Mr. Benson stated I do not recommend soliciting bids for a project this small since you will likely get higher prices.  I believe this is a good price.  Are you going to do any work to the 10-horsepower pump?

            Mr. Migdal responded we were not going to do anything to the 10-horsepower pump because I believe it will probably become obsolete and only be used as a backup.

            Mr. Benson stated once the new project is complete, we may need to replace the 10-horsepower pump with a new 30-horsepower pump at some point in the future for reliability and redundancy purposes.

            Mr. Ziko stated I agree Examples #3 and #4 should be done as soon as possible.  Should Example #1 also be done now?

            Mr. Migdal responded that is correct.

            Mr. Ziko stated we will increase the expense from $50,000 to $200,000.

            Mr. Migdal stated it is unfortunate this irrigation happened at this time because I was in the middle of putting #1 together, and I was concerned with getting it done immediately.  However, the irrigation issue is also important since it involves fire control, which suppressed work on Example #1.  However, Example #1 needs to be done sooner than later as well.

Mr. Benson stated we designed the generator project as well as all the electrical upgrades to bring power to the water and wastewater plant, and the Board asked us to defer the generator installation part of the project.  If we were authorized to install the new generator, the status and the alarms would have been part of this project.  Obviously, this is something we knew needed to be done.

            Mr. Ziko asked do we have this money in the budget?

            Mr. Benson responded a small portion of the work will overlap other than the generator status and alarms portion.  I brought this up because we discussed this issue as part of these items in advance, and we have some money put away.

            Mr. Ziko stated $153,000 has probably already been budgeted for.

            Mr. Benson stated I disagree.  We pushed $150,000 to 2009 for purchase of the generator which probably would have come with the status alarms done.  If you recall, we put the generator at the well field as required.  We discussed the condition of the line which sends the signal back and forth from the water plant to the wells for a number of years and there was a discussion at one point of installing a cellular phone, which was an inexpensive way of doing things which really should be done with radios.

            Mr. Ziko stated I want to know whether or not the high cost for Example #1 involves getting electricity out to the well heads.

            Mr. Bissell asked perhaps we should discuss this after we vote since it has nothing to do with the motion.

            Mr. Ziko stated I believe it does because we are tying in Example #1, which we need from DEP.  Mr. Edge mentioned if we do not get this approved, the DEP is going to come down on us.

            Mr. Bissell stated I agree with you, but I do not understand why Mr. Migdal only presented Examples #3, #4 and #5.  It seems apparent that Example #1 is as important as the others.

            Ms. Dillon stated we authorized $20,000 last month for Examples #3 and #4, but things have changed.

            Mr. Lambert stated perhaps we should authorize Examples #3, #4 and #5, in which we install everything we need with the radio transmitter near the well heads and we come back into the water plant area, set up a place to receive the information from the wells and irrigation system.  Have we got ourselves in a corner with regards to the remainder of Example #1?  Will anything eventually have to be redone because of the location we put it now?

            Mr. Migdal responded I need to upgrade some of the electrical distribution equipment because everything which is mounted on the wall in which I want to put my control panel contain many high service pump controls which are all corroded with the wires falling out of wire troughs.  I am going to clear the entire wall of all existing electrical equipment, install my panel as well as the high service pump motor control center behind the existing motor control center, which is the way it should have been done in the first place.  The completed wall leaves me enough room to do anything which needs to be done.  Example #1 is completely expandable to take care of additional items which may come up.

            Mr. Goscicki stated the Board does not have $150,000 to spend on this entire project.  They want to move forward with the remaining portions of Examples #3, #4 and #5, but there are some aspects of Example #1 which need to be done and there are portions which can be done now without any significant loss of efficiency or complications.

            Ms. Dillon stated you still need to satisfy DEP.

            Mr. Goscicki stated perhaps the Board can proceed with the authorization on the other aspects and come back to restructure how it may be done.

            Mr. Ziko stated I want to know what the high ticket item in Example #1 is which is increasing this to $150,000 and whether or not it is really necessary.  If we get the work done on the irrigation system and get optional radio equipment controls back to our unit for $5,000, I believe you can probably do the same thing at the well fields for $5,000.  Where does the additional $145,000 we are looking to spend on Example #1 go to?

            Mr. Migdal responded it involves replacement of the corroded electrical equipment on the walls which I just described to you; putting up a radio tower in order to receive the signal back; installing a cabinet for the PLC Programmable Launch Controller which is the device taking all these signals and making decisions as to when the high service pumps and wells should start.

            Mr. Ziko stated I thought this was all done locally.

            Mr. Migdal stated this device handles local controls as well as remote controls and it also provides the information to a fiber optic loop back to the wastewater plant lab in which there will be a computer in order for the operator to monitor and control what is going on at the other side.  This type of equipment is expensive.  It costs $16,000 just to do the controls of the irrigation system, but the type of equipment which is currently in your irrigation system cannot handle the sophistication necessary at the water plant and the electrical controls which need to be replaced for many high service pumps is considered an expensive item.

            Mr. Ziko asked can you explain high service pumps?

            Mr. Migdal responded there are three high service pumps which pump water into the system for potable use.

            Mr. Ziko asked is this being done in the building with all of the electrical material on the left-hand side?

            Mr. Edge responded it is the last building on the road.

            Mr. Migdal stated those are the pumps which pump water to your house.  The controls which are driving the process are in extremely bad shape and they are on this wall.  All of this needs to come off and be put into a new motor control center which is expensive.

            Mr. Lambert asked will the pumps remain as they are when it comes time to replace our water plant?

            Mr. Benson responded if we retain the same wells for 10 years, everything you do to keep your well field intact under this project will be able to be used in the future.  The parts related to the high service pump station may or may not be usable depending on if and when we put in the water plant.  Most of this is probably going to be usable.  However, at the time you build a new water plant you may also put in new high service pumps.

            Mr. Migdal stated you can retain the controls in the motor control center, and those parts will not need to be replaced.

            Mr. Benson stated there is a project already out there in which the contractor is to bring the power supply with generator backup along with everything else up to this point, and he was aware he had to pick up from this point in order to upgrade this equipment which is obsolete and dangerous, which is known as the power supply.  The point at which this contractor stops is the power distribution.  Mr. Migdal is referring to the power distribution.

            Mr. Lambert stated you are capable of handling the distribution which is included.

            Mr. Ziko asked will Mr. Edge be able to sit in the main building in order to control the pumps in the other building with Example #1?

            Mr. Migdal responded no.

            Mr. Ziko stated he will still have to go from the main building down to the pump house.

            Mr. Migdal stated that is correct.

            Mr. Lambert stated eventually he will not have to do this once we do Example #2.

            Mr. Migdal stated Example #2 gives us communications from the water plant to the waste lab as well as the capability of monitoring the RO plant, the relief system which I believe you are going to put there as well as the new MBR system.  I had a discussion with Mr. Andrew Ball at Parkson as to whether or not the computer system will be able to communicate with the new MBR system.  He was going to recommend this be installed because his system requires the same system to monitor and control the MBR system which was not included in his original project.

            Mr. Lambert asked what is involved with updating a controlled maintenance operation?

            Mr. Benson responded this will bring everything to the most current technology in this industry, since what you have at the water plant is probably 20 years old or older.

            Mr. Migdal stated if you look at Page 2, under Storage Tank Level – Milltronics HydroRanger Ultrasonic Level Transmitter, when the pressure starts to drop in the distribution system, these pumps kick on and there are flow balls which are dangling down in the tank.  Mr. Migdal is proposing installation of this Ultrasonic Level Controller which will remove these flow balls from your tank.  There is material in there which we want to get removed which make contact with the water.  The handle, the PFVs, as well as a variety of other things are necessary to bring it up to current standards and improve the reliability.  There really should be nothing dangling down in the storage tank since there is a risk for potential contamination.  The lid which is currently opened and exposed should be sealed closed in order to prevent any dirt and debris from getting into these tanks.

            Mr. Ziko stated we just want the budget to be consistent.  Perhaps you can move some money or delay projects which do not have to get done next year in order to bring the plant up to the standards we want.

            Ms. Dillon stated the most expensive item on next year’s budget is for the second storage tank in the amount of $400,000.  This is an expensive item which is also required by DEP.

            Mr. Benson stated I do not believe it was a DEP item.  I believe it is an operational item for your irrigation system to ensure you have enough water during peak demand days so you do not run out of water.  Additionally, the current tank is open to falling debris from the air and the trees.  It is not large enough to handle the peak irrigation demand at its current usage, although we should be getting some conservation.

            Mr. Bissell asked are we ready to vote?

            Mr. Lambert responded tell me again what items we are going to vote on today.

            Mr. Bissell stated we are going to vote on Items #3, 4 and 5, which is covered by the motion.

            Mr. Lambert stated I do not believe we need to vote on Item #5 today.

            Mr. Bissell stated it is already part of the motion.

            Ms. Dillon asked can the motion be restated?

            Mr. Bissell responded yes.

 

Ms. Dillon moved to amend the previous motion to approve the funding of Examples #3 and #4 only in the total amount of $45,683.88.

 

            Mr. Bissell stated I do not understand why we cannot approve the entire project.

            Mr. Ziko stated we do not have the new panel which is part of Example #1.  If we do not accomplish Example #1, Example #5 is useless.

            Ms. Dillon stated the equipment will be sitting there which may possibly deteriorate.

            Mr. Bissell stated if we pay $5,000 to $6,000 now, three years later we may pay $10,000 to $15,000.

            Mr. Migdal stated I hope Example #1 is going to be done before three years.

            Mr. Lambert stated I believe this should be done in two steps.  Examples #3 and #4 should be done first.  Example #5 should be done out at the well heads as well as a location at the plant in order to receive information.

            Mr. Migdal stated I am really going to have to think about this since it is going to be difficult to break it down this way.

            Mr. Lambert asked can you look into this?

            Mr. Migdal responded I must remove the controls from there in order to mount a handle on the wall.

            Mr. Lambert stated I understand this, but you are looking at it from your standpoint and we are paying for it.

            Mr. Dick stated since the chemical storage room is part of the MCC room, it involves isolating this room since some chemicals are contaminating and deteriorating the electrical controls and you do not want this to happen to new equipment.  Therefore, we are going to modify the building and do what you are suggesting, which will not include securing the building since chemical fumes can affect new equipment.

            Mr. Ziko asked is this where the chlorine feed is located?

            Mr. Migdal responded the chlorine feed as well as the lime feed is located here.

            Mr. Dick stated we are going to make the room specifically for electrical components isolated from any chemicals.

            Mr. Lambert asked are we physically able to accomplish this?

            Mr. Dick responded yes.

            Mr. Benson stated I believe we identified a project to build the dividing wall and possibly air condition the area.  I planned on sealing up the wall and the window, but not to put in air conditioning in the ceiling of the other windows.  However, I was hoping this would be done in the future in order to help protect the equipment.  I am just reminding the Board this item has been on our list of projects.

 

Mr. Gatti seconded the previous motion.

 

            Mr. Ziko stated I recommend approving the entire package in order to start the project as soon as possible if we can determine where the funds will come from.

            Mr. Goscicki stated I want to look at the budget in more detail and ensure I am comfortable with what projects can be moved and discuss with Mr. Teague on Monday in order to be able to give a recommendation at the next meeting, which I assume will be the public hearing to adopt the budget.

            Mr. Ziko stated the public hearing is in August.

            Mr. Goscicki stated you have time on the budget, but I believe we can come back at the next meeting and clarify whether or not the money is there and how it can be moved around without impacting future budgets.

            Ms. Dillon stated we can approve Examples #3 and #4.

 

On VOICE vote with all in favor Work Authorization #060807 for Severn Trent Environmental Services to upgrade the irrigation control system in the amount of $16,417.28; and Work Authorization #060801-A for Severn Trent Environment Services to install an irrigation control system VFD in the amount of $29,266.60 in order to upgrade the irrigation and fire control panel was approved.

 

            Mr. Benson stated Project W-4 which was going to be done in this year’s budget involving various structural and architectural repairs to the building roof, doors, windows and painting, included building of a wall to segregate the rooms as discussed.  Project W-7 for the air conditioning is showing as zero because I believe it was deferred.  However, this can be added on later which will make the equipment last that much longer, as Mr. Migdal stated.

            Mr. Lambert asked are you referring to the wall unit?

            Mr. Benson responded that is correct because we need to control the climate in the room in order for the equipment to last longer.

            Mr. Edge stated we are proceeding with hurricane preparations, of which most has to do with our lift stations.  We have a pole behind the truck generator which will supply enough power to run a lift station in the event we have a large power outage here.  Unfortunately, three or four of our six lift stations cannot be used for this purpose, and we need to be able to upgrade those lift station panels in order for our generator receptacle to be able to plug into the panel box to energize the lift station.  For example, the lift station on Stella Maris Drive cannot be run with our current generator because the receptacle on the box itself will not allow it.  We propose to put the appropriate receptacle there for this purpose.  The lift station on Newport Drive halfway down the road is also not compatible.  Therefore, we propose to upgrade the incompatible lift stations in order for them to continue running with several backups in the event of a lengthy power outage.

            Mr. Lambert asked are you just recommending changing of the receptacle where it plugs in or additional equipment inside the house?

            Mr. Edge responded there will be switches and receptacles involved for a couple of them.  One of the lift stations near the North Hotel has no means to run emergency power, which will require more of an upgrade.  Our goal is to ensure all of these lift stations are compatible for use with this new generator.

            Mr. Ziko stated the one on Cays Drive appears to be corroded and ready to fall off.

            Mr. Edge stated I checked it and it appears to be rusted.

            Mr. Bissell asked why did we purchase generators which cannot be used?

            Mr. Lambert responded Mr. Stephens told us it would work.

            Mr. Edge stated it works for three of the six lift stations we currently have.

            Mr. Gatti asked how much will this cost?

            Mr. Edge responded it will cost approximately $4,500.

 

On MOTION by Mr. Ziko seconded by Mr. Lambert with all in favor Work Authorization #009 for Severn Trent Environmental Services to furnish and install manual disconnects on six lift stations and generator receptacle plugs on three of the lift stations; along with a start-up and test in the amount of $4,475 was approved.

 

            Mr. Lambert asked what is the status of the telephone lines?

            Mr. Edge responded they were ordered and should have been installed yesterday, but I believe they were busy.  However, they will be installed next week.

            Mr. Ziko asked how do you do your mosquito control?

            Mr. Edge responded I have been waiting for calls from people complaining about them.

            Mr. Dick stated we count the mosquitoes which land on our arms for a 30- to 60-second period.

            Mr. Lambert asked have you also gotten set up with the people doing the billing for water meters at zero usage?

            Mr. Edge responded we are currently working on this.  As a matter of fact, we changed a couple of meters which were not working.

            Mr. Bissell stated the cement covers which are part of the landscaping between the entrance and the marina on the west side are loose.  Is there anything we need to do as a Board to allot money to take care of this?

            Mr. Dick asked are you talking about adding or maintaining landscape?

            Mr. Bissell responded I believe we may have to add some landscaping, since we do not have much grass there.  What is the status of the drainage?

            Mr. Edge responded we need to order a new cover since it was broken.  The area also needs to be filled in quite a bit.  I am going to try to determine where we need those concrete covers this week since it just sits on top of a base which receives the rainwater.

            Mr. Dick stated we can ask the landscaper to put together a design or extension consistent with what is already there to be brought to the Board for approval.

            Mr. Bissell stated we need to beautify this area since almost everything else looks great.

            Mr. Dick stated we will ask the landscaper for some recommendations.

            Mr. Lambert asked is it possible to put a couple of straps and bolts into the concrete so the new covers cannot be moved around?

            Mr. Edge responded I do not know how this one came off since I believe it weighed between 300 and 400 lbs.

            Mr. Bissell asked which one are you referring to?

            Mr. Dick responded we are referring to the storm drain.

            Mr. Bissell asked is the one by the hotel also damaged?

            Mr. Benson responded it was broken a number of times.

            Ms. Dillon asked did you speak to the county with regards to the drainage issue within the landscaping of the median on Route 41?

            Mr. Edge responded I did not hear back from them, but I will call again.

 

FOURTH ORDER OF BUSINESS                          Attorney’s Report – Discussion of Purchase of Fire Station

            Mr. Cox stated I believe the special session is beginning on Monday.  I am not certain whether or not much has happened.  I be