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Draft Meeting Minutes for April 9, 2021

Port of the Islands
Community Improvement District

The meeting of the Port of the Islands Community Improvement District was held on Friday, April 9, 2021 at 9:30 a.m. at the Orchid Cove Community Center on 25005 Peacock Lane, Naples, Florida 34114 and also via web conference.

Present (or by web conference) and constituting a quorum were:
Russell Kish – Chair
Teri O’Connell – Vice Chair
Ray Jensen – Assistant Secretary
Michele Holloway – Assistant Secretary
Sam Leishear – Assistant Secretary

Also present (or by web conference) were:
Cal Teague – District Manager
David Schmitt – Engineer
Mitch Gilbert – FL Utility Solutions
Christopher Dudak – Assistant to the District Manager
Nancy Dudak – Premier District Management
Residents

The following is a summary of the discussion and actions taken at the Port of the Islands Community Improvement District (CID) Board of Supervisors meeting.

FIRST ORDER OF BUSINESS Call to Order and Roll Call

The Port of the Islands Community Improvement District meeting was called to order and District Manager Cal Teague called roll. All Board members were present. Also in attendance were David Schmitt from Hole Montes (Engineer) and Mitch Gilbert from Florida Utility Solutions.  Participating via web conference were Nancy Dudak and Christopher Dudak from Premier District Management.

SECOND ORDER OF BUSINESS Pledge of Allegiance

THIRD ORDER OF BUSINESS Approval of the Agenda

The Board reviewed the Agenda.

On MOTION by Supervisor Leishear, seconded by Supervisor Holloway, with all in favor, the Agenda was approved with the addition of 13C, Pothole Repairs, and Item 6 was moved to Item 10.

FOURTH ORDER OF BUSINESS Audience Comments on Agenda Items

There being none, the next Order of Business followed.

FIFTH ORDER OF BUSINESS Approval of Meeting Minutes

A. Draft Meeting Minutes from March 19, 2021

The Board reviewed the Meeting Minutes from March 19, 2021.

On MOTION by Supervisor Jensen, seconded by Supervisor Holloway, with all in favor, the Board approved the Meeting Minutes from March 19, 2021 as amended with a change on Line 61, striking the word “but.”

SIXTH ORDER OF BUSINESS Attorney Interviews

The Attorney interviews were discussed after the Engineer’s Report. While each Attorney was interviewed, the other Attorney was excused from the room.

The District Manager introduced Thomas Hart, who he works with in another District with Premier District Management. He has been in practice for 33 years and has eight members in his firm, with a ninth being hired. He said he would attend meetings, if requested, or would be online. He said that his hourly rate is $330, but he would cut that to $300 and propose they work together for three-six months before an agreement is formalized. He answered questions from the Board.

The second Attorney was Anthony Pires, who also has experience working with the District Manager. His firm primarily works with governmental clients and has done a good amount of work on Marco Island. He has lived in Collier County since 1971. He mentioned that the CID website is very informative and has done a good job of providing information. The Board asked questions and Mr. Pires emphasized his experience with wastewater facilities and real estate development. Other questions included protection from community default by developers, adding restrictions to the contract and design phase, allowing Board review and approval.

On MOTION by Supervisor Jensen, seconded by Supervisor Holloway, with all in favor, the Board authorized the District Manager to enter into a contract for Anthony Pires (Woodward, Pires & Lombardo, PA) to represent the CID as their Attorney.

SEVENTH ORDER OF BUSINESS Landscape Maintenance

A. Landscaper Notes

Mr. Soto did a drive-around inspection. He stated that he will send the notes in the future earlier so that the Board can review them before the meeting. He mentioned the fiber optics installation on Highway 41, but the Board was unaware of it. He felt that by State law, they are supposed to be notified of installation using the right of way. Supervisor Jensen mentioned they run along Route 41 coming from Miami. The Board agreed that they need to keep track of any damage that is done so it can be charged back to whoever is doing the installation. Mr. Soto said he will monitor the situation.

Mr. Soto stated that currently there is no electricity for the staff to perform their work. He provided a list of residents who will need to have tree trimming completed. The list will be used by staff to send letters to the residents who have trees obstructing vehicle visibility. Mr. Soto also submitted a proposal for trimming CID hardwoods within the community for $3,315.

On MOTION by Supervisor Jensen, seconded by Supervisor Holloway, with all in favor, the Board voted to accept a proposal from Soto’s Lawn Service for $3,315 to trim trees on Cays Drive, Newport Drive and Union Road, and to remove a stump on a median. The District Manager requested he add an e-verify statement to the estimate.

B. Washout Repairs Catch Basin on 41 Median

This work is being completed today.

C. Cays Drive Landscape Lights Repair

This item was not discussed.

EIGHTH ORDER OF BUSINESS Utility Operations

A. Utility Report

Mr. Gilbert reported that the plant is running well. He said that there was an issue last week for a day, but it was resolved. The air compressor had a minor issue and is now working. He said it will cost $6,800 to replace the VFD – variable frequency drive. (Its purpose is to regulate speed control so that motor speeds can be ramped up and ramped down at a controlled rate and only using the energy required.) He stated that they are at least 20 years old and all three have been rebuilt. They are run once a month to ensure that they are working. He confirmed that the system could work on one pump, but it would be a fire hazard. The Board asked if a hurricane came through, how well prepared would they be with this equipment and what type of exposure would this be for the Board if equipment failed. The Board discussed replacing the #2 VFD of the fire station pumps.

On MOTION by Supervisor Jensen, seconded by Chair Kish, with all in favor, the Board approved a not to exceed amount of $10,000 to replace the #2 VFD of the Fire Station pumps.

B. Water Meter Changeout Program Update

Mr. Gilbert reported that six meters have been installed. The next shipment of meters are due to arrive next week. He said that his team will place notices on individual resident’s homes two days before the work commences that will include his phone number in case of issues.

NINTH ORDER OF BUSINESS Engineer Report

A. New Home Construction/Drainage Issues

The Engineer reported that a sidewalk that was damaged has since been repaired. He said that new homes on Sunset Cay may have some drainage issues, which he will address.

B. CIP Development Update

The Engineer reported that the inventory is complete. He will review the facilities with Mr. Gilbert to see what improvements need to be added to the Capital Improvement Plan (CIP). He said he has started to talk to the permitting agencies to identify compliance issues. He said that drainage in the area of Newport Drive has some areas that need to be addressed. He also said that the roadways are generally in good shape but some areas need to addressed in the next four-five years. They also will need to start looking at the generators. A draft of the CIP will be available for the Board to review in May. Mr. Schmitt also said that the CIP needs to be flexible, that projects should be able to be moved around depending on need. The District Manager stated there are two funds to fund the CID, general and water/sewer. They are separate funds used to fund different capital needs. The plan will be forward thinking looking out over the next 20 years.

C. Bridge Lighting/Speed Reduction on 41

The Engineer said that this is a bit of a dead end, that the CID may need to pay for the signage on their own versus asking for the Department of Transportation to address the lighting. He said that maybe the signage will be enough. The Board agreed to drop the speed reduction on the 41 bridge for now.

D. Possible Drainage Issue on Sunset Cay

The Engineer said they should wait until some of the new construction is completed to address this.

TENTH ORDER OF BUSINESS District Manager Report

A. Monthly Financial Report

The Board reviewed the financials for March 2021. There was a question regarding the over budget in chemicals. It was explained that the purchase would carry over to the next fiscal year.

On MOTION by Vice Chair O’Connell, seconded by Supervisor Leishear, with all in favor, the Board voted to accept the March 2021 financials.

B. Recommendation on Assessment Reduction

Vice Chair O’Connell met with the District Manager to discuss what a “safe” assessment reduction would be. The proposed amount is $300 per ERC. The total reduction was $220,000 for the community with no reduction in the General Fund.  This reduction is recommended for the FY2022 Budget.

C. FY 2022 Budget

Supervisor Holloway asked about the projected expense for mosquito control in 2022. She did not think enough was budgeted based on this years’ spending, so the District Manager adjusted it for next year. The following adjustment for mosquito control was discussed:

  • Contracts increased to $12,000.
  • Chemicals increased to $10,000.
  • Mosquito Control remain at $2,000
  • Total becomes $24,000, which is an increase of $4,500.
  • This will decrease excess revenue over expenditures to $4,947 which will be put into Capital Outlay to balance the budget.

The District Manager suggested that the Board contact him directly if there are any additional questions or suggestions for the proposed budget.

ELEVENTH ORDER OF BUSINESS Field Manager Report

A. Field Report for March

The District Manager reviewed the Field Report with the Board:

  • Supervisor Jensen said that the road regrading seems to be taking too long. The District Manager said it will be finished this week.

B. Other Follow-Up Items

i. Electrical Panels Repair Update

The permit for the electrical panel replacement on Newport Drive is still being reviewed by the County. They are running about two weeks behind schedule. Excel Electric hopes to have the permit by mid-month.

ii. Main Entrance Sign Repair

The sun crest repair is expected to be installed on April 19.

iii. Union Road Regrading Update

The project started April 7 and is expected to be complete by April 10. The Engineer will do a final inspection before payment is made.

TWELFTH ORDER OF BUSINESS Legal Updates

The new Attorney is expected to be at the next meeting.

THIRTEENTH ORDER OF BUSINESS Old Business

A. Parcel 13 Purchase Agreement Update

The District Manager discussed the new purchase agreement that was sent to the Board. The time frame was questioned, and the District Manager stated that he thinks they will offer that information at a later date. The Board expressed that they do not want this process to be prolonged after the 90-day due diligence. They agreed that a timeline would be helpful. The District Manager said he will send the purchase agreement to the new Attorney for review and inform Zeman of new legal representation.

B. Meeting Schedule Discussion

The Board agreed that the second Friday of each month at 9:30 a.m. will work best for everyone. The District Manager stated that another schedule can be adjusted during the summer, but the ad has already been paid up for the year. They also discussed continuing to have the meetings offered online for those who cannot attend. Supervisor Jensen asked about switching the meetings to Zoom, but the District Manager said that Go to Meetings is more popular for governmental meetings and both are equal in ease and popularity.

C. Pothole and Roadway Repairs on Stella Maris

Dan Truckey addressed the Board with his concerns about billing just the residents on this road. He presented the previous agreement that the Board is responsible for the repairs since they adopted the road knowing its condition. There was discussion about having the Stella Maris road work combined with other upcoming road work projects. The District Manager asked the Engineer to do an analysis of the roads to make a recommendation. There is a proposal to address the cul-de-sac for $24,000. The Engineer and Field Manager will coordinate a plan to address the Stella Maris situation. The Board agreed to have the CID address the entire issue rather than split the project costs with the Condo Association.

FOURTEENTH ORDER OF BUSINESS New Business

A. CID Purchase of C4 Property on 41 at Cays Drive

The Board discussed purchasing two parcels adjacent to Stella Maris North, five acres of land referred to as South East Commercial Property. The Chair said he considered “giving back to the community,” possibly making this a park green space. This area currently generates $42,000 in taxes, but the Chair said as a green space, there would be no County tax liability. With the reduction in asking price being reduced from $759,999 to $500,000, the Chair stated that he would rather control what goes into that location to protect the values and image of the entrance to the community.

A resident (developer) said the current zoning could be used as a diesel fueling station, a boat launch, gas station, etc., or anything C4 zoning that may not be desirable for the community. He suggested that the Board take ownership of this area for $500,000 so they can control what happens at the entrance to this part of the community. There is currently some interest in this property, which has 275′ of waterfront. The resident said that they have about 45 days of due diligence, and then can request a 90 day extension. Vice Chair O’Connell asked if the seawall has been inspected by an Engineer. The District Manager emphasized that the Board needs to decide if they want to pursue this option so it can be addressed at the next meeting.

Another resident voiced concerns about the Board being in the business of buying and owning land, how they will control fishing in the park and if they have similar concerns for other locations in the community. Supervisor Jensen asked about the cost to create a park and maintain the land. Another resident suggested going to the County and asking them to lease the land for $1 a year or leasing with an option to buy the property. Someone else mentioned that the seawall is a potential expense as well. The District Manager said he can inquire about financing and get with the Attorney and the Engineer for the next meeting.

On MOTION by Supervisor Holloway, seconded by Chair Kish, with all in favor, the Board authorized staff to work with the Attorney on a purchase agreement for the C4 Property on 41 at Cays Drive to be brought before the Board at the next meeting.

FIFTEENTH ORDER OF BUSINESS Supervisor Requests and/or Comments

Supervisor Leishear voiced a concern that at Sanctuary Point, boats, boat trailers and RV’s are parking in driveways. He said they have no HOA rules regulating this. The District Manager said they are probably covered by a deed restriction, so the County would enforce this. It was suggested to get code enforcement involved.  A letter to the offending residents will be sent to let them know that the CID will report them to code enforcement if it is deemed a violation.

Chair Kish left the meeting at 12:46 p.m. as he had to be at work.

SIXTEENTH ORDER OF BUSINESS Audience Comments

A resident asked about how they came up with the amount of $2 million to pay for Parcel 13. The District Manager answered that the amount was determined to be the target point by an experienced local realtor with a long history at POI. Vice Chair O’Connell also stated that when the hotel was there, they were not getting offers for the property. She said that if this deal does not go through, they decided at the last meeting to get an appraisal. Supervisor Jensen also said the developer is in their due diligence period.

Supervisor Jensen called the listing agent for the C4 property on 41 at Cays Drive and found out that the due diligence was up, and a that they would have to execute the purchase agreement and pay the $10,000 deposit today.

Supervisor Jensen said he was told there are two other buyers. They also discussed that a land purchase agreement would allow them time to have it appraised, and that the purchase was intended to protect the homeowners in the community. Supervisor Leishear stated that he would feel more comfortable with public input in the way of due diligence.

They also discussed that to repair the seawall could cost less than $200,000. The realtor for the property came to the meeting. She confirmed the closing date would be July 1.

In deciding to proceed now, it was decided that all Supervisors should be included, so Chair Kish was called at work to participate by phone.

On MOTION by Supervisor Holloway, seconded by Supervisor Jensen, with all in favor, (4-0), the Board voted to allow Chair Kish to join the meeting by phone to participate in the discussion of the C4 land purchase.

On MOTION by Supervisor Holloway, seconded by Supervisor Jensen, with all in favor, the Board voted for the CID to accept the assignment of the purchase agreement from Joe Levy for the C4 property, which includes the guarantee of the $10,000 down payment.

SEVENTEENTH ORDER OF BUSINESS Adjournment

There being no further Orders of Business, and

On MOTION by Supervisor Holloway, seconded by Supervisor Jensen, with a vote of 4-0, the meeting was adjourned at 2:07 p.m.

Next Regular Meeting: Friday, May 14, 2021 at 9:30 AM

Secretary/Assistant Secretary
Chair/Vice Chair