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, October 13, 2006 at 10:00 a.m. in the Egret Room, 25000 Tamiami Trail, Naples, Florida.

            Present and constituting a quorum were:

 

            Richard Gatti                                                    Chairman

            Dale Lambert                                                   Vice Chairman

            Ted Bissell                                                        Assistant Secretary

            Norine Dillon                                                    Assistant Secretary

            Richard Ziko                                                    Assistant Secretary

 

            Also present were:

 

            Ed Goscicki                                                      District Manager

            Dan Cox                                                          Attorney

            Ron Benson                                                      Engineer

            Bob Dick                                                         Field Manager

            Tom Mack                                                       Staff

            G. Russell Weyer                                              Fishkind & Associates

            James Vogel                                                     Sunstream, Inc.

            Christopher Shucart                                          POI Hotel & Marina

            James Shucart                                                  POI Hotel & Marina

            Dennis McKay                                     Resident

            Susan Beck                                                      Resident

            Edith Bolton                                                     Resident

            Neil Bolton                                                       Resident

            Charles Custer                                                  Resident

            Mr. Gasaway                                                   Resident

            Nannette Gatti                                                  Resident

            Charles Hawkins                                              Resident

            Barbara Lagasse                                               Resident

            Duane Otto                                                      Resident

            Kay Otto                                                          Resident

            Peter Saalprank                                                Resident

            Sandy Taylor                                                    Resident

            Tom Weir                                                         Resident

 

 


FIRST ORDER OF BUSINESS                               Roll Call

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

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the August 11, 2006 Meeting

            Mr. Gatti stated each Board member received a copy of the minutes of the August 11, 2006 meeting and requested any additions, corrections or deletions.

            Mr. Lambert stated on Page 18 under the fourth order of business there was a discussion about the ponds, which I do not recall.

            Mr. Goscicki stated I am not aware of any ponds needing to be relocated, but I will check with Mr. Cox and get some clarification.

            Mr. Lambert stated on Page 31 we were discussing the trucks.  In the second sentence of the twelfth paragraph CID should replace Severn Trent.

 

On MOTION by Mr. Lambert seconded by Mr. Ziko with all in favor the minutes of the August 11, 2006 meeting were approved as amended.

 

 

THIRD ORDER OF BUSINESS                             Manager’s Report

A.                 Discussion of Draft Developer’s Agreement

Mr. Goscicki stated the Board will recall this issue came up several months ago in which we suggested the creation of a developer agreement to act as a legal framework for dealing with any major new development within the District.  The District has an established set of rules which detail policies for the District with regards to issues and terms of ownership of the utility systems, installation requirements for the developer which meet District standards, transfer of ownership and where the meters can be set.  There is no existing formal document to memorialize the relationship with a new developer who is interested in redeveloping a property.  This is an attempt to create a legal agreement between the developer who wishes to develop property and the District.  This will be a framework for dealing with anything involving facility infrastructure development on a parcel they already own.

Mr. Bissell stated I understand we have to furnish them with water and sewers if they have the ERCs.  Does the CID have to accept their sewer system, water system or fire hydrants?

            Mr. Goscicki responded I prepared this document which Mr. Benson and Mr. Cox reviewed, and I incorporated a number of comments.  First of all, you define the limits of what will and will not be accepted in the developer’s agreement.  You define the extent of the District’s infrastructure and what remains private.  Therefore, it depends on the nature of the development.  If it is single-family development, typically you own up to the meter box which serves the single family.  If it is a condominium development, you may only own up to a master meter which feeds multiple buildings.  If the buildings were each individually metered, you own up to the meter which served each individual unit.  The purpose of this agreement is to lay all of this out in the engineering plans which get reviewed and approved by the engineer, and brought back to the Board for review and approval to clearly establish what is owned, what is not owned, what stays private and what stays under the District’s ownership.  The agreement further states one of the plans need to be reviewed and approved by the engineer after these issues are resolved as part of the initial phase.  The developer’s engineer, who is the engineer of record, must inspect those facilities and certify back to this Board and the District engineer they were constructed according to those plans.  After they are accepted by their engineer, your engineer will transfer ownership to the District.  This sets up a process where you clearly define the bounds of the ownership.  You establish they must be built to the District’s specifications.  You establish they must be reviewed, inspected and paid for by their engineer, including all infrastructure costs.  When it is deemed acceptable to the District, all standards are met and the construction completed, tested and approved, there will be a transfer of ownership at no cost to the District.

            Mr. Bissell asked is a transfer of ownership required?

            Mr. Goscicki responded I believe it is an applied transfer of ownership, and if all requirements are met you are obligated to accept it.  However, if they do not meet the requirements, you do not have to accept.

            Mr. Bissell stated for example, we say it has to be built to the county’s specifications.  If the county signs off they inspected the construction does the county inspector have to sign off?

            Mr. Benson responded the design engineer has to sign the application according to the state permitting process.  They must also ensure the plans are signed and sealed.  After the permits are issued, the project engineer must ensure everything was completed according to the plans.  All changes must be noted at the end of the construction.  This responsibility is already established according to the rules of the DEP and Health Department.  Therefore, I believe Mr. Goscicki is trying to establish a formalized process which partially takes on the accepted and regulated process.  The engineer who designed the project must inspect it, even though this was not always the case.

            Mr. Bissell asked if the engineer works for the developer, why wouldn’t he sign off and state the work was done correctly?

            Mr. Benson responded at times they were not signed off because the engineer did not accept it, and the engineer’s license may be at stake if something is falsified.

            Mr. Bissell stated I just wanted to ensure we do not need to accept the development.  All we have to do is give them water and sewer service at our point.

            Mr. Benson stated the CID has rules and policies which were adopted many years ago.  For example, Stella Maris was accepted when the developer offered it.  In the process of doing this some things had to be done before we accepted it in order to bring it up to our accepted standard.  There are other areas where conditions are considerably different.  For example, condominium meters are set up along the street, and all of their water and sewer lines are underneath public or community spaces, parking lots and driveways which all condominium owners share.  According to the county process, the engineer must review the utility plans, and since it is not the condominium’s utility, the CID engineer handles it.  When we approve those plans, I always try to be careful in stating exactly what we are approving.  I try to write a letter stating we have approved this according to specific policies.  Mr. Goscicki is trying to formalize the process.

            Mr. Lambert stated accepting everyone’s system as long as they meet the criteria may not be appropriate in some situations.  There should be something in this agreement with regards to roads and other infrastructure we own and maintain which ensures they are left in a similar condition when the work commences, and we should have some review of what they are going to do with regards to crossing our properties.  We should try to eliminate some problems which arose with the Orchid Cove situation.

            Mr. Goscicki stated this is an excellent point because this developer agreement deals with new development on virgin land, and the restoration issue deals specifically with what we have.

            Mr. Lambert asked did you and Mr. Benson make some comments and changes to what we have in this folder today?

            Mr. Goscicki responded all changes were made prior to you receiving this today.

            Ms. Dillon stated nothing is mentioned with regards to property damage.

            Mr. Gatti stated we are going to deal with anything which affects our property, including damage.

            Ms. Dillon stated on Page 3 I did not understand this comment which says, may not need to include this section, applies to only Area 1.  I do not know what Area 1 is.

            Mr. Goscicki stated I need to get more background information from Mr. Benson and Mr. Cox with regards to this, which is why I included the note.  This refers to connection fees which are currently part of your rate structure.  Since I did not have a personal knowledge of Area 1, I had to go back to the history of the District to determine where they are not covered by the water and sewer assessments.  I found out they were paying a connection fee in order to pay their fair share of the impact.  I believe this only applies to a few remaining lots, in which case a developer’s agreement cannot be used.  This entire section can probably be deleted.  However, I left it in this draft as a reminder to clean this up and to make you aware we probably do not need it in there.

            Ms. Dillon stated Page 1 refers to EDUs.  Should it be ERCs?

            Mr. Goscicki responded it should be ERCs.

            Mr. Lambert asked will this be signed by the developer before Mr. Benson submits his letter to the county?

            Mr. Goscicki responded this will be signed by the developer before any work can commence.

            Mr. Lambert stated we should sign off on this before the developer signs it.

            Mr. Benson stated I believe we should get this done before they submit their plans.

            Mr. Gatti stated I suggest including the developer have all county approval and permits in place before we invest in this.

            Mr. Benson stated they cannot get all approvals until they get all of their sign-offs.

            Mr. Goscicki stated I will work this out.  We have been reviewing it mostly for content at this point.  I suggest the next step is for Mr. Cox to do a complete legal review since I do not want to make any legal judgement calls on this document.

            Mr. Bissell asked can the Board be emailed a copy so we can fine tune it before the next meeting?

            Mr. Goscicki responded absolutely.


B.                 Field Manager’s Report

Mr. Dick stated we are having problems at the wastewater plant with the removal of ammonia from the wastewater with regards to the total nitrogen requirement.  There is a control problem in the process which is not allowing us to de-nitrify.  Mr. Benson has some recommendations which can be implemented to correct the problems, and he will go over those in more detail.  We are in the process of doing a total assessment of the facilities within 90 days of taking over the operation which we owe the Board at the end of this month.  We have a draft which will probably be completed over the next week, and we will make it available to the Board.  Our main concern is the reliability of the fire station across the street.  We have done an analysis and there is some malfunctioning equipment.  The subcontractor is supplying us with some of the original data, and I will submit a report as to what the system may or may not need to improve the reliability of the controls and installation.  We currently have four pumps, of which two are not operating.

            Mr. Goscicki stated I spoke to the fire chief and advised him of the current status.

            Mr. Dick stated we need to approach this with an abundance of caution.  At worst, we have hydrants with plenty of volume and pressure, but it is not perfect.  We must ensure everything works as it was designed, which is why Mr. Benson is involved.

            Mr. Goscicki stated we also want to ensure the fire department has all contact information for Mr. Dick and our operators.  In a worst case scenario if a pump fails during off hours, they will be able to contact us immediately and we will be on site until these issues are resolved.

            Mr. Lambert asked was one of the items on our to-do list to check some of the equipment?

            Mr. Benson responded we have a list of items which need attention on the annual engineer’s report, such as repair of the pump station and the valves.  We also may have to do a CIP project with a dollar amount to a point where there are enough repairs which need to be done.  We will probably need to replace the generator at the pump station, for which we have a plan.  I will discuss this during my report.  In answer to your question, we have a project involving improvements to the station, which are not different from the items which Mr. Dick discussed.  Those were covered generally in our annual report.  Specifically, we are adding a filter and disinfection system to meet DEP rules for reuse and irrigation water quality.  There are a number of items which are all related, and at some point we may roll them all into one project if there are enough funds available.  It is probably going to cost more than $200,000, not including these smaller items.

            Mr. Lambert stated Mr. Benson should combine his report with Mr. Dick’s report, in order for the Board to determine what we want to do.

            Mr. Dick stated the August Operations Report touches on operations highlights.  It also includes the Discharge Monitoring Report for the wastewater plant which is sent to the state on a monthly basis.  The Monthly Operating Report for the water plant is also submitted.  There is also a flow graph which trends the water and wastewater flows on a daily basis.

 

FOURTH ORDER OF BUSINESS                          Attorney’s Report

            Mr. Cox stated I spoke to everyone concerning the sign easements, and they are still looking at them, but we should find something out soon.  I also talked to Mr. Franklin about the fire station property.  Although it is still under consideration, he did not refer to the price we discussed and may come back with a counter-offer.

            Ms. Dillon asked did we offer him the assessment?

            Mr. Cox responded we offered the true value.

            Mr. Gatti stated while we are discussing this issue, does Collier County have anything?

            Mr. Mack responded I spoke to him on Wednesday.  I believe we need to discuss prices, which I am not sure you will want to do at an open session.

            Mr. Gatti stated give us a status.

            Mr. Mack stated I am waiting for him to get back to me with the accounting.

            Mr. Gatti stated when you get the information, perhaps you can brief the Board.

            Ms. Dillon asked was this going to be one of the items for the Executive Session?

            Mr. Cox responded no.

            Mr. Lambert stated discussing what we consider to be our high or low offer in public defeats the purpose.

            Mr. Mack stated we have to work with him in order to get the best possible prices in order to be able to work with you.  We need to know first where the Board stands and whether or not we should continue to pursue it since we currently have no direction.

            Mr. Lambert stated we need to pursue it since there are not many other options.

            Mr. Ziko stated I believe we should pursue it since it will be a much cleaner operation.  We were promised this for the last two years by Ms. Marchand and the people who purchased the RV park.  So far, we have nothing and we need a fire station out here.  I do not want to wait two more years.  I believe Mr. Mack and Mr. Cox should pursue negotiations.

            Ms. Dillon stated I agree we should pursue it, but I am also holding out hope for the donated land.

            Mr. Mack stated I thank Mr. Gasaway for standing up for us and bringing new developments to the table.  He will allow us a spot somewhere around the plant, but I am not certain of the exact location or size.

            Mr. Mack stated I saw a site drawing last week for the project, and he has a piece of property designated for the fire station to cover your plan.  He needs to get HUD approval as well, and they think it is going to take two to three years.  A permit for a home takes one year to get approval.

            Mr. Lambert asked is this north of the plant?

            Mr. Mack responded it is south of the plant.  This is where we stand.  When we make something happen you will be able to see what we can fit on the property in the corner.

            Ms. Dillon stated we want to continue to pursue this.

            Mr. Mack stated we need some guidelines.

            Ms. Dillon stated we should continue to pursue the purchase of this property, but I do not want to shut the door on the possibility of the community not spending more than $200,000 on a piece of property if they do not have to.

            Mr. Lambert stated I believe we need to pursue it.  Some of these options may or may not come about in the future, and I do not want any strings attached to someone giving us something.

            Mr. Bissell stated I believe we should pursue it.  According to the property appraiser it will probably appraise at $244,000, but I do not know what he is asking.

            Mr. Mack stated he is asking $900,000.  I explained where we stood.  I told him what the appraised value was and offered him $180,000 which I thought was a good price considering there are no ERCs involved.  He told me he will get back to me after he talks to the owner.

            Mr. Ziko asked if we pursue purchasing the property under an eminent domain as we previously discussed, how close to the appraised value will we be able to come to?

            Mr. Cox responded the law requires you first pay the fair market value of the property along with your legal fees.  They challenge your fair market value.  You go through a jury trial where both of you give expert testimony, and it is actually established by a jury as opposed to the judge.  Therefore, it is impossible for me to predict what is going to happen.

            Mr. Gatti stated it seems to be the consensus of the Board we should pursue this, which makes sense.  What direction does he require?

            Mr. Mack stated as a first step Mr. Cox should make a firm offer, and I recommend starting with $180,000.

            Mr. Cox stated I do not understand where you came up with $180,000.

            Mr. Mack stated the price was $240,000 with ERCs.

            Mr. Gatti stated perhaps we should authorize Mr. Mack to negotiate within a certain range not to exceed a certain amount.

            Mr. Goscicki stated I believe you can leave it more generalized.

            Mr. Mack stated I would rather leave it until we find out exactly what he wants to do.

            Mr. Ziko stated time is of the essence here.  This has been going on for two years and nothing has happened.

            Mr. Mack stated I understand timing is an issue, but if someone negotiates with the same strength as you it is going to be difficult to force the issue.

            Mr. Lambert stated we should move forward.

            Ms. Dillon stated the appraisal I have states $250,000.

            Mr. Goscicki stated I believe it is worthwhile to have a formal motion by the Board authorizing Mr. Cox and Mr. Mack to represent the Board to pursue negotiations for acquisition of this fire station property.

            Mr. Gatti stated we are looking at a reasonable number.

            Mr. Goscicki stated it is clearly understood they cannot commit the Board.  However, they can pursue negotiations without a commitment.

            Mr. Cox asked are we trying to obtain the entire 1.9 acres on that side?

            Ms. Dillon responded that is correct.

            Mr. Mack stated he paid $134,000 for it less than two years ago, so he must be realistic about this.

            Mr. Gatti stated it seems to work out well in terms of what we are offering.

            Mr. Mack stated the area around the community center is a large piece of land to build on.

            Mr. Ziko stated I hope the building design is open to change if we want to incorporate the community center in the building rather than keeping it separate.

            Mr. Benson stated if you are referring to the fire station building, I am not certain.

            Mr. Ziko stated in Everglades City we used to vote in the fire station.  Although a separate building to house the community center may be good, it does not make sense to keep it separate if it is empty most of the time.

            Mr. Benson stated it depends on what we work out with the fire department and what their rules are.

            Mr. Goscicki stated I have seen a number of fire stations in which they use it as a training room for the firefighters.

            Mr. Gatti stated we do not want any training in this area except for the people at this station.

            Mr. Ziko stated I believe he is referring to training for the people on site.

            Mr. Gatti stated this was one of our provisos when we were negotiating with the county for their use of the land.

            Mr. Ziko stated we do not want a firefighting tower behind there.

            Mr. Lambert stated I do not believe instructional classroom training will be a problem.  Did you take care of the easements for the pump station work we are going to be doing by the weir?

            Mr. Benson responded we are still working on it, but we need to get a use agreement as opposed to an easement.

            Mr. Lambert asked is this the only issue delaying the project?

            Mr. Benson responded the other issue was the DEP permit, of which I have an update.

            Mr. Ziko asked where do we stand on the other easements for the signs?

            Mr. Cox responded I spoke to the property owners and they are still looking at them.  As soon as I hear from them I will let you know.

            Mr. Ziko stated we have a new sign on our property in front of the sales office.  How did it get installed?

            Mr. Cox responded it is on their property.

            Mr. Ziko stated it is on our property and we were never consulted to get an easement for the sign.

            Mr. Benson stated there is some history to this sign and I recall Mr. Cox gave us an update a few years ago.  It may be on property which is part of the wide road area.  When they built the sales center, some rights were withheld.  Therefore, they had to get a new sign permit which was not allowed to be connected to the archway.  They had to build a free standing sign inside the archway and there were many technicalities involved.

            Mr. Cox stated they had some type of easement in this area which allowed them to do this because the sign has always been there, but it was replaced a couple of times.

            Mr. Ziko stated I have a picture of the lot and this is definitely on our property.  We cannot get an easement to put up our own signs.  How did they get an easement to put up this sign?

            Mr. Cox responded I assume this was done years ago.  Collier County proved when they permitted the sign they had a legal right to put it up, just as they made us prove we had a legal right.

            Mr. Ziko stated I am not so sure they have because I spoke to the signage people up there, and they are not certain how it got done.

            Mr. Cox stated it needs to be determined.

            Mr. Ziko asked did we give them an easement to put the sign there or do they have to come to us if they want to change it?

            Mr. Cox responded if they were given an easement, they probably do not have to come to us.

            Mr. Ziko asked how will we find out?

            Mr. Cox responded I will look into it.

            Mr. Lambert asked will the easement spell out what can and cannot be done?

            Mr. Cox responded if it was done many years ago, it probably did not get an easement.

            Mr. Gatti asked is there an issue here which we want to address?

            Mr. Ziko responded it is a commercial sign which does not reflect the community of the POI.  It is a commercial advertising sign to sell a hotel.

            Mr. Gatti stated Ms. Marchand was after us for 10 years to put up her sign.

            Ms. Dillon stated they still had to get a permit for the sign.

            Mr. Goscicki stated before you proceed, we did not vote on a motion for the fire station.

            Mr. Gatti asked can you voice the motion for us?

            Mr. Goscicki responded I suggest a motion to authorize Mr. Cox and Mr. Mack to pursue negotiations for the acquisition of property for a fire station site.

 

On MOTION by Mr. Ziko seconded by Ms. Dillon with all in favor Mr. Cox and Mr. Mack were authorized to pursue negotiations for the acquisition of property for a fire station site.

 

 

FIFTH ORDER OF BUSINESS                               Engineer’s Report

A.                 FDEP and Wastewater Treatment Plant Permit Issues

Mr. Benson stated we received two water use permits from SFWMD, one for our potable water and one for our irrigation.  I did not make a copy of the entire permit, but the first couple of pages provide the most detail.  It came in on September 11th after one year of waiting.  We previously did not get what we asked for, other than on irrigation.  We were reduced to the amount I informed you of a few months ago which we negotiated with them.  However, it is a 10-year permit.  The second item relates to the wastewater treatment plant permit which was also delayed.  The permit is approximately 40 pages long and contains mostly technical and standard details.  We received the intent to issue on October 3rd.  Since we advertised the intent to issue as required, timing is in our favor.  Unfortunately, this permit is taking a long time to obtain.  Since DEP has been understaffed, they have not been processing permits for anyone in a timely manner.  DEP also sent us an enforcement action relating to some of the items which started all of this a few years ago, in which we had some violations.  They sent us a letter approximately one month ago stating we have 60 days to take care of this or we are going to be penalized.  We put them on notice they need to approve $1 million in order for us to take care of this.  As a result, we did get their attention.  Every time we send them a monthly report about what is happening at our facilities, they have to enter the information into a computer database which goes to both Tallahassee and the EPA regional office in Atlanta.  The EPA noticed we were having problems, and they contacted DEP in Tallahassee and asked how much we are going to be penalized to take care of the problem.  They finally contacted us.  I copied all of you with some of the emails we received because I believe these are important to keep since the top people in the local agency are telling us they will not fine us since it was inadvertently their fault.  We have a schedule, and we will advertise the permit on the 9th.  The newspaper will approve the legal form of publication and send it to DEP.  We anticipate getting this on Monday.  We will submit it on the same day to DEP, and they have a 30-day public comment period which commences at the beginning of October.  However, we do not anticipate any complaints about our permit since it does not impact anything.  We are changing out existing equipment to new equipment.  We are not changing our capacity, or where the water goes.  We anticipate having an intent to issue the final permit before Thanksgiving.  Actually, the final permit should be recorded by the state sometime in December.  However, this is not going to stop us from keeping the project going since we have the intent to issue as well as a contract which the Board approved with Parkson and Encore Construction.  They will file shortly with the county for a building permit to commence work.  We anticipate materials and some site work will start soon even though we cannot legally install equipment until the final permit is issued in December.  Since obtaining a building permit in Collier County takes time, I believe we are dovetailing all of the schedules.  However, we are meeting all of the necessary timelines to be within the law.

            Ms. Dillon stated I advised Mr. Kleinmann not to seek any penalties.  Do we have anything in writing which defines this?

            Mr. Benson responded this is all we have, and I believe this is probably as good as you are going to get.  I met with them, and they told me technically at the high end they can charge us $80,000 in penalties which I told them we would oppose.  They said it is going to be approximately $200 because we had a violation for which they are required to penalize us for.  The penalty is a minimum charge of $250 under the category of department costs.  We are likely going to get a consent order which states we will do all required work according to a schedule, with an administrative cost in the amount of $250.

            Ms. Dillon stated it says only administrative cost is included.

            Mr. Benson stated $250 covers this cost.

            Mr. Cox stated they changed the rules, but we did not change what we were doing.  Therefore, they dropped the fine.

            Mr. Benson stated they may have increased the minimum, which we will probably have to pay since we did have a violation two years ago.

            Mr. Lambert asked does the Board have to approve the penalty?

            Mr. Benson responded we are in a position to negotiate with them.  I will work with Mr. Cox on the terms of the consent agreement, and I will tell them I am not authorized to enter into the agreement.  I will negotiate the terms, at which point I will bring the consent order to the Board for approval.  Since both parties have to agree to it, we can stall.  It will not be problematic for me to say I have to wait for the next meeting to seek approval.

            Mr. Lambert asked is this a separate issue which may delay construction?

            Mr. Benson responded it will not delay construction.

            Mr. Gatti stated be sure to tell them you do not approve penalties.

            Mr. Benson stated I already told them if the penalty was larger than a small and negligible amount this Board will probably submit it to their attorney for handling.

            Ms. Dillon stated it does not seem right they forced us wait this long and came back to threaten us with a penalty.

            Mr. Benson stated with regards to the problem at the wastewater plant which Mr. Dick discussed, I wrote up a recommendation and sent it to him to ensure it was on record we are working together on this.  If anything needs to be done, they may likely have to bring a proposal to you for an additional cost.  I anticipate Severn Trent has a category under the terms of their contract for these items.

            Mr. Goscicki asked is this considered an additional service?

            Mr. Benson responded I believe there is an amount for which you have to do an authorization, which is likely to happen.  There are some blocked pipelines which need to be cleaned or replaced.  Mr. Dick and I created a record stating these items should be taken care of, along with the cost details.  We had some problems a few years ago with nitrogen removal when the plant was small, and Mr. Stephens and I found a supplemental carbon source.  If this was done at a larger plant, industrial chemicals such as Methanol in drums would have to be purchased.  For safety reasons and the small size of the facility, we literally added bags of sugar which is considered a quick fix in the event Severn Trent recommends long-term repairs, such as installation of a Methanol feed system and there is a cost for the pump.  The other item which Mr. Dick mentioned was recommendations for ongoing maintenance at the fire and irrigation pump station.  One of the items in our annual report was related to some necessary electrical and control repairs.  I also noted in the annual reports over the last few years the generator has some issues, and some valves and pumps need to be repaired.  We are planning an electrical improvement project at the wastewater plant which is primarily to improve the service.  We will bring power from the Lee County electrical co-op.  Part of the project is a recommendation which is in the CIP to install a new generator at the water and wastewater plant to provide power for today, power for all anticipated needs for boating facilities and repairs to the power feed at both plants.  We recommended relocating the generator to the fire and irrigation pump station, which Mr. Dick’s staff will look at.  They may tell us the generator needs many repairs or it cannot be repaired at all.  The last item relates to the plan review for redevelopment of this property.  We talked about this for a number of months, and I want to update you.

            Mr. Gatti asked what property are you referring to?

            Mr. Benson responded I am referring to this corner of POI at the hotel area.

            Ms. Dillon asked are you referring to the marshalling area?

            Mr. Benson responded I am referring to the property which is bounded by the canal.  We were working with the developer’s engineer to ensure the utilities were taken care of.  This is Route 41, this is the canal and this is Newport.  The pink line is our water line in the U.S. 41 right-of-way.  The pink line going down to Newport is our water line.  This area was built many years ago before the existence of the CID.  Water gets from this area to this area through some lines running through the property.  We convinced the developer’s engineer to agree to provide these plans, which are part of the site development plan process with Collier County in which we work through the utility review.  We must write a letter stating we approved these plans.  An easement needs to be dedicated to us for any of these water lines in order for us to have clear rights to them.  As Mr. Cox may be able to tell you, we probably have a definite claim to them since we purchased the utility system from the prior owner.  Since we did not find any easements, we are going to have a survey done at their cost to do the easements.  Also, they are going to clarify and do improvements to the interconnections where the lines are serving us, as well as serving different buildings which exist on the property today.  We are also going to add some isolation valves, and we are going to ensure all of these connections are placed correctly in order to provide everyone the most reliability.  We will relocate a section of this line, and we are going to ensure the isolation valves are there because if there is a break on any of these segments, we can isolate it.  There is one valve here, and we are probably going to have to put one there.

            Mr. Gatti asked how much will it cost to complete the loop around the property and totally divest ourselves from everything at the back of the property?

            Mr. Benson responded part of the issue may be trying to get use agreements with FDOT to start building new infrastructure immediately.  This is not always an easy process, and we will have to work with DOT in order to get our line before the edge of the pavement for the highway.  However, we may never get an agreement from them.  Actually, if they ever want to widen the road, they may tell us to move our line.  I am not certain this is necessarily an easy process.  This line is currently close to the edge of the pavement.  There is a cost involved, which I am unable to determine.  I actually recommended they complete the loop here and give us another way to get our water since they have some lines which are fairly large.  Of course, they did not offer to do this.

            Mr. Gatti stated I believe you should submit this for consideration for a couple of reasons.  First of all, it puts it all on our property and totally under our control.  Secondly and more importantly, when you have lines like this on a campus, you never determine who is getting water where.  If we have our own loop, every time you come up off of our water line there is a meter, and you have a point there which controls how much water is going into a campus.  Once you go into a campus like this, there may be all kinds of connections which we are not aware of.

            Mr. Benson stated this relates to one of the other items I included.  Since we do not have standard language, I put in the letter the property owner should hire an engineer to prepare a record drawing of the locations of all the water meters for this property.

            Mr. Gatti asked do we have four sources of water off of our main line?

            Mr. Benson responded since this is the oldest part of the property, much of this is preexisting, and there are all kinds of water meters.  We are also asking them to clean up all the water meters.

            Mr. Ziko stated if we went with Mr. Gatti’s suggestion of moving the line down on U.S. 41 and connecting it on Newport Drive, we will have one meter coming off of Newport Drive and the other two meters which are on 41.  Therefore, we would not need all of these meters on the property.

            Mr. Benson stated you can install a master meter on each connection point.

            Mr. Ziko stated those lines run underneath the parking lot.  If something were to happen with one of those lines, I am not certain whether or not they want us to dig up their parking lot.

            Mr. Benson stated I indicated in the letter they will have to provide us an easement having a use and maintenance agreement defining all of this.

            Mr. Lambert asked have we determined what type of piping is at this point?

            Mr. Benson responded you may remember we talked about this at a previous meeting.  We determined it may be too difficult to do as a result of the location of the line.

            Mr. Lambert asked is this the case with the process of putting in some isolation valves?

            Mr. Benson responded when it became apparent we were not going to do the potholing, I basically asked them to take care of all possible issues, and make this as reliable as possible for both parties.  It is the oldest part of the community and it is possible for a line to break within the next five years and require replacement.

            Mr. Ziko asked will we be responsible?

            Mr. Benson responded we are responsible since it serves everyone on Newport Drive.

            Mr. Ziko stated this is all the more reason to come down 41 and straight down Newport Drive.  If it breaks it is their problem, not ours.

            Mr. Benson stated I will be happy to start the process with DOT to see about installing this line.

            Mr. Gatti asked can we get an easement to install it outside of the property?

            Mr. Benson responded we can run it on private property across here.

            Mr. Gatti stated this is an issue which may never get resolved, and we will have to pick up future generations.  We have to depend on private property to serve our needs, which puts us in a position of having to maintain it.  As Mr. Benson told us, some of the material contains asbestos cement, which we want to get rid of anyway.  I believe we should take it all down, clean it up, install the two meters, and everyone will know where everything is located.

            Mr. Benson stated I also indicated in my letter we did not want to be responsible for anything which we did not have to.  Generally, it is a new development where we have taken no responsibility.  For example, the condo association is responsible for the condominium property down the road.  Historically, before I was involved, there were decisions made to put the water meters on the water lines in some of these condominium developments where the water line which feeds the meter is not ours.  Every condominium has its own water meter, and they get their own bill.  However, the water line from the road is the CID’s water line, but we said since it is private we do not want to maintain it since we did not want to have to potentially dig up someone’s driveway, parking lot or all of their landscaping.

            Mr. Gatti asked did they get cut off at the property line?

            Mr. Benson responded no.  This goes back to the precedent which was set when the first buildings were built in which every unit got its own meter.  We should ensure their engineer tells us the locations of all the meters and that everything is hooked up properly.

            Mr. Gatti stated I appreciate all of your efforts, but this is not a good approach.

            Mr. Ziko stated since they are building a 10-story building, we are going to have a lot of pile-driving activity where the yellow lines are.  If they crack and break what will we do then?

            Mr. Gatti responded we will never know what the problems are going to be on this project.

            Mr. Bissell stated you have two pink lines over on the right coming down.  Are they coming across the road?

            Mr. Benson responded the road is up here.  This is the south edge.

            Mr. Bissell asked is it all on this side of the highway?

            Mr. Benson responded that is correct.

            Mr. Gatti stated I do not believe it will be the end of the world if we install an 8” water line down the edge of the right-of-way, and then go down.

            Mr. Benson stated the sanitary sewer force main is right here and the irrigation lines are here.  This is the force main over here.

            Mr. Gatti asked when you cross the west side of Newport Cay going out what is the blue line to the pink line?

            Mr. Benson responded it is not a water line.

            Mr. Ziko stated if you are referring to the blue line on the north side and the short area between the pink line and Newport Drive, this is all our property.  We do not even have to get an easement.

            Mr. Benson stated the sales center is not our property.

            Mr. Ziko asked what about the area north of the sales center?

            Mr. Benson responded north and south of it is our property.

            Mr. Ziko stated the only place we have to get an easement is in the area where the sharp blue line runs parallel to U.S. 41.

            Mr. Gatti stated I submit to the Board we give Mr. Benson the authority to pursue this as part of the development of this property, which will give us an opportunity to clean up the problem we have here.

            Mr. Lambert stated perhaps Mr. Benson can put a plan together and we can see how it fits on our things to do list.  It is not something which needs to be done immediately.  It appears there may be a couple of other solutions.

            Mr. Benson stated I believe it is a good long-term solution.  I thought about adding this as a CID project.  At this point in time we have water service which we have to maintain to everyone in the community, and I want to protect the water line since it provides water to everyone on this side of the development.  A longer term solution is to install a new line.  The line out here is newer and the lines in here are older, to the best of my knowledge.  I believe it is a separate line from this development.

            Ms. Dillon stated you should ensure this entrance also has water.

            Mr. Benson stated they are in the middle of the SDP Process, which is a Collier County development process.  Collier County has other issues which they are resolving, but they need the CID to state we are no longer private.  They also need a letter from the CID stating we reviewed the plans of how they are serving their buildings within their property, and we approved them making those connections, which they already requested.  They also requested a DEP application.

            Mr. Goscicki stated I want to recess momentarily to discuss this privately with Mr. Cox.

            Mr. Gatti stated I want to talk to the Board about this because the more we think about it the less we get done.  We have to potentially take on the responsibility.

            Mr. Ziko stated if we come down here or right over here this is our property.

            Mr. Gatti stated this is our property over here.

            Mr. Ziko stated this is not our property.

            Mr. Gatti stated this side is our property.

            Mr. Ziko stated we come up here and we run this piece of line.  Now we have one meter here, one meter here and another meter here.

            Mr. Gatti asked why do we have two meters here?

            Mr. Ziko responded this is going to eliminate all of the meter reading and everything else which goes on the property and create a clean connection.  The line is not far from this building.  We are going to have some big piles going down here, and if we crack this line everyone on Newport Drive is going to be without water.

            Mr. Gatti stated there is also a lot of asbestos.

            Mr. Bissell asked did he say this pink line is on the south side of the road?

            Ms. Dillon responded the roadway is above it.

            Mr. Gatti stated I believe this will be easy and we are not talking about too much money.

            Ms. Dillon asked how much is it going to cost?

            Mr. Ziko responded it will probably cost $150,000.

            Mr. Gatti stated there is very little restoration involved.

            Mr. Ziko stated $150,000 is inexpensive if we break the pipe here.  This is all repaved and if we had to dig around here in order to determine how to fix it, we are better off doing this.

            Ms. Dillon stated we should also get a new line.

            Mr. Gatti stated I believe we should give direction to do this.

            Mr. Lambert asked is it an 8” pipe?

            Mr. Ziko responded it is an 8” existing water pipe.  What is the scale on this?

            Mr. Gatti responded it is probably a 40” scale.

            Mr. Ziko stated it is 14” x 40” which comes to 560’.

            Mr. Gatti asked is this for the entire thing?

            Mr. Ziko responded yes.

            Mr. Gatti stated we can round it off to 600’.  An 8” line is $60, for a total of $360,000.

            Mr. Ziko stated perhaps we can get this out for bid in order to get a better price.  This project will certainly clean the big mess out here.

            Ms. Dillon stated from the developer’s standpoint, I am sure they prefer this in the long run.

            Mr. Gatti stated I suggest we give Mr. Benson direction to come back with more detail.

            Mr. Lambert stated I want to see where he is on some other issues we have out here.

            Mr. Ziko stated he has a fire main coming in here.

            Mr. Goscicki stated Mr. Cox and I discussed other options which the Board may pursue with regards to approval of this overall site development plan.  One suggestion is to ask the developer to run this new water line and create the loop for the District.  The District will then deed back to the developer all on-site pipe in the event you run out of it, and allow them to proceed with their development.

            Mr. Benson stated you want them to basically approve what they have.

            Ms. Dillon stated I believe it is in their best interest not to mess around with the old pipe.

            Mr. Ziko asked do you believe they will be willing to do this?

            Mr. Goscicki responded there are pros and cons to this.  There is the obvious cost of installing the water line.  There are benefits to moving forward with this development as well as benefits to not using some of these water lines with isolation valves which may break.

            Mr. Ziko stated it will be a clean operation.

            Mr. Gatti stated I suggest we do this on a participation basis.  Asking the developer to incur the entire project is going to make it difficult to sell.

            Mr. Ziko stated Mr. Benson does a good job of negotiating and we should leave it up to him.

            Mr. Benson stated I want to make one thing clear.  The connections to the utilities for each of these buildings are shown here, and we are not going to change this.  The CID purchased these water lines as there is an existing bill of sale, but it may not be clear where the lines were located because probably no one knew at the time.  Basically, you are going to give him back those lines in exchange for completing the loop and everything else he is doing here.

            Mr. Gatti stated be careful with the ERCs.

            Mr. Benson stated this does not relate to ERCs.  This will allow the CID to sign his DEP application and for us to write a letter saying we approve it.

            Mr. Gatti asked does everyone agree to the concept?

            Ms. Dillon responded I agree.

            Mr. Gatti asked do you need some action on the Board’s part?

            Mr. Goscicki responded we need a motion from the Board to authorize the engineer to negotiate looping the water system as part of this site development approval process.

            Mr. Benson stated you should also allow me to issue the letter, which I will revise.  You should also issue the approval for the two buildings they requested which are within the ERCs.

            Mr. Ziko stated the letter is contingent upon this being done.

            Mr. Benson stated you are correct.  I will revise the letter to accommodate and authorize us to proceed.  I also need Mr. Gatti to authorize signature of this application for the sewer on the same property.  It is for removal of 200’ of pipe and installation of 152’ of pipe.

            Mr. Lambert asked who is doing this?

            Mr. Benson responded the developer is doing this.  It is on their private property, but their engineer believes we may be able to get a DEP application since private counties pass more applications.

            Mr. Lambert asked is there anything else with regards to the sewer which is involved with this project?

            Mr. Benson responded they are booking the existing manholes on their property.

            Mr. Lambert asked are you referring to the area which is fairly clean?

            Mr. Benson responded yes.

 

On MOTION by Mr. Lambert seconded by Mr. Bissell with all in favor Mr. Benson was authorized to negotiate looping of the water system as part of the site development plan approval process in order to restore the underground water lines in the area of the hotel and Mr. Gatti was authorized to execute a DEP application requesting approval to remove 200’ of old sewer pipe and install 152’ of new sewer pipe.

 

B.                 Fire Hydrant Relocation

Mr. Benson stated the contractor who is doing our road rehabilitation work is mobilized and he is fitting us in between two large projects.  There were some fire hydrants which needed to be relocated.  We discussed in general at the previous meeting we were going to get this taken care of.  I arranged for the contractor, Kyle Construction, who has done miscellaneous work for us in the past to do this work.

            Mr. Goscicki stated in terms of the process, Mr. Benson came to me, I went to Mr. Gatti and got his authorization for the emergency action to authorize the relocation.  We are bringing this back to the Board now for ratification.

            Mr. Ziko asked is it three or four hydrants which have to be relocated?

            Mr. Benson responded I believe it is four hydrants.  The water line is running this way, they come off over on this side of the line, and now we are going to have to bring them off to the other side of the line and extend them in order to get them out of the way.  We thought all of it could be done on the same side of the pipe, and it is $1,500 per hydrant which is the exact same price we paid Florida State Underground when they did this work.  Since they are doing additional work, it is going to cost more than $1,500, but I do not have the exact cost.  However, we are negotiating with them based on what projects in the area are bidding for.  I believe we are getting a fair price.

            Mr. Lambert asked will we be able to do the work so as not to delay the paving?

            Mr. Benson responded yes, which is why we had this done without seeking formal authorization from the Board.  Mr. Goscicki, Mr. Gatti and I discussed this and believed the Board would agree to the work under the circumstances.  Kyle Construction relocated four fire hydrants.

            Mr. Goscicki stated Mr. Gatti already authorized us to do the work, and this motion will ratify the authorization.

 

On MOTION by Ms. Dillon seconded by Mr. Ziko with all in favor authorization by Mr. Gatti for Kyle Construction to relocate four fire hydrants so as not to delay the roadway paving was ratified.

 

            Ms. Dillon stated you were working with Mr. Goscicki on the water conservation brochure we authorized a couple of months ago.  Where does this stand?

            Mr. Goscicki responded I am actually working on this and I sent it to our graphics department to put together.  I looked at the material Mr. Bissell sent from Marco Island, and I was impressed with what they did.  Therefore, I am trying to incorporate some of what Marco Island did rather than just a simple folder which we discussed reproducing.  I need to customize it for this District, which I will try to get done over the next month.

            Ms. Dillon stated we discussed a cost of approximately $1,200.

            Mr. Benson stated this was in the permit you received.  We said we will do this.

            Mr. Lambert asked do we have any other open items with the DEP at this point once we get this permit issued and the work done at the wastewater plant?

            Mr. Benson responded we have the permits which allow us to do this work, and everything is tied to this one permit.  We also anticipate proceeding with the project across the way at the fire irrigation station.

            Mr. Lambert stated I want to ensure everything is done since there was a whole list of items on one of those letters we received some time ago.

            Mr. Benson stated we will bring you the items for doing the work within the next two months since we do not have bids on all of the work yet.  Some of these are CIP projects which are in line to be done next.

            Mr. Lambert asked will we be moving forward in taking some more items off the list?

            Mr. Benson responded we will be taking items off of the list, but you will be spending money.  Some of these items will cost $200,000 each.

 

SIXTH ORDER OF BUSINESS                              Discussion of Open Items

            Reuse Water for Irrigation

            Mr. Benson stated it has been permitted.  The item across the street is basically designed and we need to get the use agreement from SFWMD.  We are probably going to have to bid the project, and I believe it was on the CIP in the amount of a quarter million dollars.  We will be able to move forward on this and it will get built in 2007.

            Entrance Monuments

            Mr. Lambert stated we should tell the landscaping company to plant some flowers there this year.  We were holding off doing this out of concern someone was going to walk on the flowers, which I do not believe we should worry about.

            Ms. Dillon stated I believe we should also have the lights installed.

            Mr. Ziko asked what will happen if we put our signs on the monuments?

            Mr. Cox responded we will be penalized.

            Mr. Ziko stated I was going through some old paperwork.  This item has been on the open items list for two years.

            Mr. Lambert stated this has been going on for close to four years when they came here with a whole packet of what was wrong.

            Mr. Cox stated we fought with them for two years.

            Mr. Ziko stated there is still no closure.

            Discrepancy Between Gallons of Water Pumped and Gallons Billed

            Mr. Dick stated I put a spreadsheet together which shows an average of 30% to 40% of the water still being lost.

            Mr. Benson asked is this the combination of irrigation and potable water?

            Mr. Dick responded this is just potable water.  I broke the numbers down per day, hour and minute, and it literally works out to 19.3 gallons per minute since January.  That is not a volume which you are going to potentially see bubbling out of the ground if there is a cracked pipe.  The leaks are probably minimal in nature.  Cumulatively, this is a big number, but on a gallons per minute basis it is small.

            Mr. Ziko asked was this measured on a 24 hour per day basis?

            Mr. Goscicki responded it is equivalent to a couple of hose beds running full time.

            Mr. Dick stated this means it may be difficult to find.  There is an irrigation meter in one of the medians which is possibly tied into the potable water line and is being billed as irrigation.

            Mr. Ziko stated the GPM at your house is approximately five GPM.  Are you looking at four of these leaks?

            Mr. Dick responded I do not believe so since you are not using five gallons per minute, 14 hours and 40 minutes per day.  It may be four unmetered connections to a house.

            Mr. Ziko stated 19 rounded off to 20 GPM is the equivalent of four of those running all the time.  Could it possibly be tied to unmetered connections?

            Mr. Dick responded the volume is too high.  You must have several hundred unmetered connections.

            Mr. Ziko asked have you noticed a decrease since the RV park was taken down, as there were many connections in there which were unmetered?

            Mr. Dick responded we found some which were leaking continuously.  If you look at the chart under water loss in the next to last column, there are two entries made in June which were positive.  We actually sold more water than we made.

            Mr. Ziko stated I am not certain about this because the financials show we never received any income in July.

            Mr. Dick stated the March and April bills were actually done at one time.

            Mr. Goscicki stated you have some continuous data for a period of time in one of the columns.  We are going to add to this a six month running average since it starts showing you some real trends.  We look at the water produced from the first day to the last day of the month, but the meter reading and billing is across the month and the dates do not line up.  Depending on what happens during the month, they may never line up with exactly how you are producing the water and measuring the production.  A three to six month running average determines whether the trend is increasing or decreasing.

            Mr. Ziko asked since we lost one entire billing cycle this year already, where does this figure in?

            Mr. Goscicki responded it is determined as if you averaged across those two months.

            Mr. Benson stated in April we took the homes using potable water for irrigation and put them under the irrigation system, and the total gallons decreased and stayed there.  Also, those were the old meters which we replaced because we were concerned we were not charging for all of the water going through them.  Therefore, there is a chance we may see some improvement in the long term.  Starting in May the percentage of lost water was less than it used to be.

            Ms. Dillon asked why was July so high?

            Mr. Benson responded some of the water which showed as negative in the months before was unmetered, and you cannot sell more water than you make.

            Mr. Dick stated we brought in our meter readers from Miami, and you are all aware we were having problems with meter readers.  They did an audit on every meter and got accurate readings.  This indicated someone was estimating the readings and not recording true and accurate usage previous