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Draft Meeting Minutes for September 10, 2021

Port of the Islands
Community Improvement District

The meeting of the Port of the Islands Community Improvement District was held on Friday, August 13, 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:
Anthony Pires, Jr. – Attorney
David Schmitt – Engineer
Alana Faircloth – FL Utility Solutions
Christopher Dudak – Assistant to the District Manager
Nancy Dudak – Premier District Management
County Commissioner Rick LoCastro
Fire Division Chief Caleb Morris
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 by Chair Kish and all Board members were present with Supervisor Jensen participating via web conference. Caleb Morris, Division Chief and Chief Sapp were also at the meeting. Additionally, David Schmitt from Hole Montes Engineering, Tony Pires, the Attorney, Mitch Gilbert from FUS, and Nancy Dudak and Christopher Dudak from PDM participated via web conference.

On MOTION, by Supervisor Holloway, second by Supervisor Leishear, with all in favor, to acknowledge Supervisor Jensen participating via web conference.

SECOND ORDER OF BUSINESS Pledge of Allegiance

THIRD ORDER OF BUSINESS Approval of the Agenda

Approved with the addition of 6B, which is the consideration of a planting proposal from Soto Landscaper Maintenance.

On MOTION by Supervisor Leishear, seconded by Supervisor Holloway, with all in favor, the Board approved the amended agenda as presented.

FOURTH ORDER OF BUSINESS Audience Comments on Agenda Items

There were no comments from the audience.

FIFTH ORDER OF BUSINESS Approval of Meeting Minutes

A. Draft Meeting Minutes from August 13, 2021

The following changes are needed:

  • In Line 17 correct spelling errors as identified by Attorney Pires in a handout.
  • In Line 84 strike “and his legal team has advised him”.
  • In Line 64 change Stella Maris HOA to The Villages at Stella Maris.

On MOTION by Supervisor Leishear, seconded by Supervisor Holloway, with all in favor, the Meeting Minutes from August 13, 2021 were accepted as amended.

SIXTH ORDER OF BUSINESS Landscape Maintenance

A. Landscaper Notes

  • In Robert Soto’s absence Supervisor Holloway reviewed the report with the board.
  • Supervisor O’Connell stated that the grass near the Airplane Club is high. Client Services Manager Dudack will contact the Club about cutting the grass.
  • Field Manager Pepin reviewed his Field Report. Several issues on the Report need to be addressed by Robert Soto. Field Manager Pepin will contact Mr. Soto and obtain a progress report on these issues.

B. New Planting Proposals

A proposal for plantings on Newport Drive was submitted for $900.

On MOTION Supervisor Leishear, seconded by Supervisor Holloway, with all in favor, the Board agreed to accept the proposal.

SEVENTH ORDER OF BUSINESS Utility Operations

A. Utility Report

Mitch Gilbert from FUS reviewed the following items from the report:

  • The water usage for the current month and the previous month were presented for comparison. It was noted that there is never a shortage of water, just an overage. Mr. Gilbert stated that he will prepare a proposal for an inexpensive way to control the water flow. ???
  • Mr. Gilbert discussed needed upgrades to the fire irrigation pump at the old fire station. Also, an upgrade is needed for the panels at lift stations 4 and 6. He will get estimates for the upgrades at the pump stations and lift stations and present it to the Board.
  • Mr. Gilbert discussed the preventive maintenance performed and also conducted health and safety checks.
  • A comparison of the meter usage for the last billing cycle of 2020 and 2021 was conducted by Mr. Gilbert. This compares the old meters to the new ones, to identify if those meters reflect a higher or lower usage.

B. Water Meter Changeout Program Update

Mr. Gilbert reported that they have changed out 647 with another 139 to be done. Mr. Gilbert distributed water consumption comparisons year by year, but there was not a totaled comparison. He doesn’t have access to billing information, so he has usage counts only. The usage numbers will vary per home.

C. Sinking Sewer Cleanout Repairs

This project should be completed in September, but it is not scheduled yet.

D. Orchid Cove Backflow Preventer Repairs Update

This is a slow process because the original were not made of stainless steel. It’s possible that they will need to replace more than anticipated.

E. Area Lights at Plant and Security Issues Update

The original quote was for four cameras at $12,000, needed addition of two more at $6,000. The rest is electrical, so that needs to be added to the cost. The total would be $16,500. Mr. Gilbert will bring quotes from ADT for the two additional cameras at the next meeting.

EIGHTH ORDER OF BUSINESS Engineer Report

A. New Home Construction/Drainage/Sidewalk Damage Issues

Engineer Schmitt will be sending letters to contractors building homes concerning sidewalk damages, drainage swales, silt in the gutter pans, and other issues that arise. He will reference Field Manager Pepin’s Field Report.

B. Stella Maris Drive Asphalt Repairs Rebid

  • Engineer Schmitt reported that this has been delayed because the pricing now is very high. They will take the bond requirement out of the bid requests and solicit rebids when the market is less expensive. The cost will be separated between road repair and drainage.
  • Engineer Schmitt reported that the drainage ditches are dry now.
  • The silt in the drainage ditches will also be addressed with the builders by Engineer Schmitt.

NINTH ORDER OF BUSINESS District Manager Report

A. Monthly Financial Report

The financials were reviewed and accepted. It was suggested that all cash accounts be together. District Manager Teague will check with Jennifer and report back.

On MOTION by Vice Chair O’Connell, seconded by Supervisor Holloway, with all in favor, to accept the financials as presented.

B. Discussion of Historical Issues

A proposal was made by District Manager Teague that Engineer Ron Benson compile a history of several community issues. This would be prepared at $100/hour with expected hours of approximately 50, not to exceed $5,000. District Manager Teague will compile a list of these community issues as presented to him by the Board. The Board will prioritize them, then District Manager Teague will send them to and Engineer Benson.

Division Chief Caleb Morris introduced Chief Nolan Sapp and stated that the Fire Station will remain fully staffed. They hope to buy more property in the next four to five years for another fire station. To answer Vice Chair O’Connell’s question, Chief Sapp stated the interlocal proposal was killed in the Florida legislature.

On MOTION by Supervisor Holloway, seconded by Supervisor Jensen, with all in favor, the Board agreed to have a history of community issues compiled by Engineer Ron Benson, not to exceed $5,000.

TENTH ORDER OF BUSINESS Field Manager Report

A. Field Report

  • Earthguard still has not completed planting and maintenance on torpedo grass. Since they are so far behind, they said they will do it for free.
  • The dirty sidewalks will be power washed.
  • Mitch Gilbert will clean out the culverts.
  • Engineer Schmitt has been cleaning out the drainage swales.
  • We are now acquiring mosquito chemical from Duet. Vice Chair O’Connell pointed out that the mosquito spray is over budget. District Manager Teague stated that they started earlier than usual this year.

B. Other Follow-up Items

i. Cays Drive Landscape Lights Repair Update

Lights have been ordered. The contractor will install them when they arrive.

ii. Monument Painting Proposal

Marco Island Painting submitted an estimate of $2,100 for pressure washing, crack filling, cracking repair and painting. Because of the E-Verify Gratkowski Painting, Gulf Coasst Painting & Pressure, and Charlie MI Handyman Services were no longer interested.

Vice Chair O’Connell asked if the monument is on our property. It will be detemined if there needs to be a license agreement or easement on the monument. It is tabled until next month.

ELEVENTH ORDER OF BUSINESS Attorney Report

A. Prepmac Lawsuit Status

Attorney Pires, Chair Kish, and District Manager Teague met in a confidential, closed door session with Prepmac. It was determined that the district does not have to respond to the findings until 30 days after the settlement. There may need to be other closed door sessions for negotiation.

Binders have been provided for the bankruptcy document history.

TWELFTH ORDER OF BUSINESS Old Business

A. Parcel 13

i. How to Proceed

On MOTION by Supervisor Leishear, seconded by Chair Kish, with all in favor, Resolution 2021-04 Adoption of FY 2022 Budget was approved as amended.

B. Resolution 2021-05 Approval of FY 2022 Assessment Levy

On MOTION, by Supervisor Jensen, with second by Supervisor Holloway with all in favor, Resolution 2021-05 FY 2022 Assessment Levy was approved.

NINTH ORDER OF BUSINESS Landscape Maintenance

A. Landscaper Notes

Supervisor Holloway gave an update on behalf of Robert Soto. The center median landscape work will begin on Wednesday. The clean up on Well Field Road will begin within two weeks. An agave plant was repotted on Newport Drive. Mowing of the Wellfield Road has been delayed due to the rains.

TENTH ORDER OF BUSINESS Utility Operations

A. Utility Report

Alana Faircloth from Florida Utility Solutions reported on behalf of Mitch Gilbert. She reviewed the monthly report and presented a proposal for additional security cameras on the building. Chair Kish asked if a webcam could be installed and the response was “no” due to security concerns. Additionally, a conversation about lighting needs for the cameras ensued. Attorney Pires suggested that neither cameras or maps should be made public due to security reasons and the proposals given to the Board should be collected back after the meeting. It was agreed that a lighting proposal was needed and the Board asked for Mitch to present one at the next meeting.

On MOTION, by Supervisor Jensen with second by Supervisor Holloway, with all in favor, the proposal for new cameras was accepted to include the additional cameras as discussed.

B. Water Meter Changeout Program Update

The District Manager stated that there are 80 residents that have now received a full billing cycle. The readings are not available yet but when they are they will be presented to the Board for a year over year review as requested by Vice Chair O’Connell. There are approximately 80 more meters that need to be installed after this current billing cycle.

The District Manager requested that Florida Utility Solutions provide in its reports a section that includes how much water is pumped and consumed.

C. Sinking Sewer Cleanout Repairs

This project is scheduled for the end of the month.

ELEVENTH ORDER OF BUSINESS Engineer Report

A. CIP Review

David Schmitt presented the CIP report at the previous meeting. The Board reviewed to ensure their priority items were included. After discussion and

On MOTION by Supervisor Holloway with second by Supervisor Jensen, with all in favor the CIP plan was accepted as submitted.

An electronic version of the CIP report will be sent to the Board and posted on the District website.

B. New Home Construction/Drainage/Sidewalk Damage Issues

Mr. Schmitt continues to monitor new home construction. He stated that some of the damaged sidewalks have been repaired but he needs to inspect them to ensure all are repaired and any drainage issues have been addressed. Vice Chair O’Connell stated that the silt issue in the gutter pans still needs to be addressed. She also asked if contractors are held accountable to repair sidewalks and in neighboring lots. The Engineer responded this is on a case by case basis and it depends on if there is proof or evidence that they are responsible.

C. Stella Maris Drive Asphalt Repair Proposals

The bids received came in higher than expected. Chair Kish suggested holding on moving forward with this project until general construction costs come down as the work is not critical at this time. After discussion and

On MOTION by Chair Kish, with second by Supervisor Holloway, with all in favor, the Board rejects all bids and will solicit new bids at a future date.

A resident commented to the Board that he would ask the Board to include recommendations and comments from the community and the sub association’s lawyer for suggestions regarding the project when they do begin the work. The sub association understands that they have drainage work that must be completed at the same time and they would like to ensure they approach the project working collectively to have the best results. The Board asked Supervisor Leishear to be a liaison and work with the District Manager, the Engineer, the Attorney, and the Stella Maris HOA representatives to coordinate the project.

D. Maximum Height above Crown of the Roadway Memo

Chair Kish had previously asked about height restrictions on building a home at this location as it appeared a home was being built on stilts. The Engineer reported that building code typically references minimum heights versus maximum heights but 35′ was typically the maximum used. A resident spoke up and stated that, at the location being discussed, it appeared the contractor was doing soil surcharging to force the soil to settle sooner. The stakes were being used for approximately 30 days to help the soil settle before building.

TWELFTH ORDER OF BUSINESS District Manager Report

A. Monthly Financial Report

Vice Chair O’Connell had a follow up on a question regarding the financials that had been previously addressed by Jennifer Miller, the controller. One of the entries dealing with utility general fund had been reversed. Vice Chair O’Connell stated the same issue appeared on the June statement and needs to be corrected.

Supervisor Leishear questioned on page 7 of the utility report that year to date the Board had spent $52k on a budget of $72k. Would the Board be over budget by year-end? Also on the general fund the Board has spent $20k to date with a budget of $19k and they will be overspent by year-end.

On MOTION, by Vice Chair O’Connell, second by Supervisor Holloway, with all in favor, to accept the June and July 2022 financial statements as presented.

B. FY 2022 Meeting Schedule Resolution 2021-06

The District Manager presented a proposed meeting schedule for the 2022 fiscal year. After discussion to keep it on the second Friday or to change to the third Friday of the month and

On MOTION, by Supervisor Leishear, with second by Supervisor Jensen, with all in favor, to approve Resolution 2021-06 to set the meeting schedule with meetings on the 3rd Friday of the month, was approved as submitted.

C. ERC Discussions

The District Manager stated that rule 4.35 defines or gives guidance on the utility ERCs. The attorney clarified two topics: ERC allocation versus ERC use. Chair Kish stated he wants the Board to consider changing the assessments of ERCs allocated to parcel 13. The District Manager stated there are currently no ERCs assigned to parcel 13, however Chair Kish stated that developers are walking away from a purchase agreement due to the cost of ERCs associated with the property. Detailed discussion followed which included the Engineer’s statements on how the developer had initially established assignments.

D. Newsletter on Meter Testing Fees and Easement Restrictions Update

The District Manager presented the proposed newsletter that will be sent in the next utility billing for the Board to approve. The District Manager proposed listing himself as the point of contact, adding notification on robocalls for boil water notices, and a statement on residents’ ability to enroll in autopay. The letter was approved by the Board.

E. Mowing at the Model Airplane Club

The mowing was completed the first weekend of August.

F. Record Retention Policy

The District Manager and the Attorney presented the general rules and guidelines on record retention policy and requests for public records. The formal process on how to request public records was also reviewed. The District Manager stated he would not accept requests via text messaging. All requests had to be in writing or via phone call to the office.

The Attorney clarified that the request needed to state what records the person was looking for. There could be charges for time, copies, etc., and a deposit for those charges could be requested. The Attorney also explained that the District Manager has a responsibility of protecting the integrity of the public records and therefore could not just “open” all records and allow someone to look through them without first redacting the records for private and proprietary information such as social security numbers, etc.

Resident Steve McNamee stated his requests are being “stone walled” and his legal team has advised him that his rights are being violated and the way he is being treated and the denial of access to the records he wants is illegal.

The District Manager clarified that Mr. McNamee has not stated what records he is looking for specifically, just that he wants access to all the records. It was also stated that Mr. McNamee’s attorney could contact the office and state what records they would like to have access to. Once that is received, the District’s Attorney would review the records and release access once they have been vetted. It was stated that a charge could be assessed for time involved by the staff to produce the records.

Mr. McNamee’s written request for records was read to the Board and in the request there were no specific records requested by name. Just a request for general access to “records”.

After additional discussion the District Manager addressed the Board and stated that he wanted the Board to be assured that he was handling the public record requests legally and protecting the integrity of the records.

G. Utility Billing Discussion

The District Manager stated he would like to resume charging for utility fees, as the rule is written and in place, for utility fees including late fees, as well as turning on and off utilities. He explained that many residents are turning the meters on and off on their own when leaving for an extended period of time and then questioning the water utility billing usage while out of town. It was explained that the District could not be responsible for water usage if they have not officially had the water turned off by FUS and the meter secured with a lock.

Chair Kish stated while he agreed in general with the fees, there may be extenuating circumstances due to the recent uptick in COVID-19 cases.

Supervisor Leishear asked that a reminder of the fees be added to the utility newsletter/billing statement. He also suggested including a statement of auto-pay options in each utility bill, as this may alleviate late fees.

THIRTEENTH ORDER OF BUSINESS Field Manager Report

A. Field Report

Due to time constraints, the Board will submit any questions to the District Manger on the Field Report.

B. Other Follow-up Items

i. Cays Drive Landscape Lights Repair Update – New Proposal

It was reported that Excel Electric has not been able to locate a matching light fixture, so they provided an estimate to replace all of the older LED light fixtures on the entrance side of Cays Drive with new X34 3,500 lumen 3000k fixtures. The proposal included replacing 10 light fixtures at $1,800.

On MOTION by Supervisor Holloway, seconded by Supervisor Leishear, with all in favor, the Board approved the proposal from Excel Electric.

ii. Monument Painting Proposal

The Field Manager is having a difficult time finding a company that is willing to travel out to Port of the Islands and that participates with the E-Verify program.

FOURTEENTH ORDER OF BUSINESS Attorney Report

A. Prepmac Lawsuit Status

The Attorney gave a quick update. He is working on setting up a meeting with Prepmac legal counsel and the District Manager.

B. Legislation Updates

The Attorney had no additional updates other than what was included in the packet.

FIFTEENTH ORDER OF BUSINESS Old Business

A. Parcel 13

i. Appraisal

The Appraisal has been received and was sent to the Board prior to the meeting. The property was appraised at $1,850,000.00.

ii. Commercial Real Estate Broker Proposals

Additional proposals were presented and a total of 5 proposals were submitted. The decision on selection was tabled until after the decision on acceptance or denial of the Brian Jones offer on Parcel 13.

ii. Brian Jones Offer

Mike Carr, realtor, and Mr. Brian Jones were present and submitted a Letter of Intent with a revised offer from $2,100,000.00 to $1,850,000.00 (the assessed value presented by the appraisal).

Mr. Jones stated they want to develop a high-end RV park and gave general details of the development concept. Mr. Jones stated they are prepared to fund the cost of re-zoning the portion of the property from conservation to tourist.

Supervisor Jensen state he would like to see a commercial real estate agent hired and see what the property can sell for at market pricing.

Vice Chair O’Connell stated she doesn’t think the Board should wait since they have a legitimate offer with a LOI.

Supervisor Leishear stated he is interested in accepting the LOI.

After additional discussion, and

On MOTION by Supervisor Jensen, with second by Supervisor Holloway, to reject acceptance of the Brian Jones LOI and hire a commercial real estate agent to go out to market on the sale of the property; the motion failed 2 to 3 with Chair Kish, Vice Chair O’Connell and Supervisor Leishear dissenting,

On MOTION by Supervisor Leishear, second by Supervisor Holloway, to further consider the second offer presented by Brian Jones for $1,850,000.00 for Parcel 13 and directing the District Attorney to prepare a purchase and sale agreement to be presented to Mr. Jones; the motion passed 4 to 1 with Supervisor Jensen dissenting.

iv. RFP process

The District Manager will ensure any future purchase offers for land sales include a description of the proposed development.

B. Rules Change Discussion

The District Manager, Engineer, and Attorney met to discuss the changes they recommend making to the rules and are presenting to the Board. One of the rule changes would allow for an easier process to change the rates of fees in the future without having to advertise a rule change. The current process is cumbersome and costly when it doesn’t legally need be this way.

The District Manager also sated that there are several changes in billing that he would suggest that would require further discussion. The Attorney suggested a workshop to consider all proposed changes.

The Board agreed that a workshop to discuss the rule changes was in order and

On MOTION by Supervisor Leishear, seconded by Chair Kish, with all in favor, to have a workshop to discuss rule changes on Friday, September 17, 2022 at 9:30 am at the Orchid Cove Clubhouse was accepted.

C. Mosquito Control Discussion

The District Manger stated the County approved the extension of he coverage of the Mosquito Control Board to include POI. Now the vote goes to the Legislature. If it passes the CID has no choice of acceptance or denial. It would be a millage tax for mosquito control services provided by Naples. The POI community could supplement at their own expense additional mosquito control services.

SIXTEENTH ORDER OF BUSINESS New Business

A. Dormitory Vandalism and Trespassing Issues

Chair Kish stated he called the police on the vandalism and trespass issues he witnessed at the site. Vice Chair O’Connell asked for the building to be secured by a fence for liability reasons. Staff will contact the county regarding a fence. The Board agreed that no trespassing signage should be posted.

B. Area Lights at Plant and Security Issues

This topic was discussed earlier with the camera discussion with the utility report. Mitch Gilbert will present a lighting proposal at the next meeting.

SEVENTEENTH ORDER OF BUSINESS Supervisor Requests and/or Comments

There being no additional items the Next Order of Business followed.

EIGHTEENTH ORDER OF BUSINESS Audience Comments

Deb Janson asked if the Letter of Intent and the property appraisal would be posted on the website. She stated that she was surprised the Board accepted the letter of intent at appraised value, versus going out to market, as most properties are sold at higher price than appraised value. She will be making a public statement on her disappointment of the decision. The District Manager stated that the items would not be posted on the website but she could complete a public records request.

There being no additional comments the Next Order of Business followed.

NINETEENTH ORDER OF BUSINESS Adjournment of the Meeting

On MOTION by Supervisor Holloway, seconded by Supervisor Leishear, with all in favor the meeting was adjourned at 1:50 pm.

The Next Regular Meeting: Friday, September 10, at 9:30 a.m.

Secretary/Assistant Secretary
Chair/Vice Chair