MINUTES OF
MEETING
NORTH SPRINGS IMPROVEMENT
DISTRICT
The regular meeting of the Board of Supervisors of the North Springs
Improvement District was held on
Present and constituting a quorum
were:
Salvatore Mendolia
President
Steve Mendelson
Secretary
Also present were:
John Petty
Manager
Dennis Lyles
Attorney
John McKune
Engineer
Cedo DaSilva
Engineer
Jean M. Rugg
Severn
Janice Larned
Severn
Don Henderson
Cliff Drysdale Management
Cliff Drisdale
Cliff Drysdale Management
Michael Hessler
WCI Communities
Karen Mazurek
Ed Josack
Cindy Dennis
Michael Hollander
Resident
Several Residents
FIRST ORDER OF BUSINESS
Roll Call
Mr. Petty called the meeting to order and called the
roll.
SECOND ORDER OF BUSINESS
Approval of the Minutes of the February 2, 2006 Meeting
Mr. Petty stated each Board member received a copy of the minutes of the
February 2, 2006 meeting and requested any corrections, additions or
deletions.
There not being any,
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor the minutes of the February 2, 2006 meeting were
approved.
THIRD ORDER OF BUSINESS
Consideration of Award of Contract for
Mr. DaSilva stated this consideration is for the award of contract to the
only responsive bidder for lake excavation in Heron Bay North Plats 3 and
4. The bid is from Triple R. Paving
in the amount of $9,416,194.00.
Mr. Petty asked how close is this to the engineer’s
estimate?
Mr. DaSilva responded our estimate was for
$9,275,000.
Mr. Petty stated it is close to the estimate. The last paving award we looked at was
30% to 40% higher than the engineer’s estimate.
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor the contract for Heron Bay North Plats 3 and 4
drainageways was awarded to Triple R. Paving in the amount of
$9,416,194.00.
FIFTH ORDER OF BUSINESS
Consideration of Management Services for the Heron Bay Commons Clubhouse
Facilities
Mr. Petty stated we have a request from the tennis committee to consider
a license process. They do not have
an agreement or process for us to look at.
They are looking to open a discussion with staff. They brought it to my attention and I
told them I would bring it to yours.
Mr. Josack stated I am the Co-Chairperson of the Tennis Committee. When the municipal bonds are paid off
for this facility, will the
Mr. Lyles responded taxes and bonds were issued by an agency of
government, which is NSID, to fund, construct and maintain this facility. Because it is being built and run with
taxes and bonds, it will remain the property of NSID. This District only works for the
residents. Technically it will
remain a publicly owned and run facility.
Mr. Josack stated we had a meeting last night and I had a discussion with
Mr. Hollander. He insisted when the
bonds are paid off, the residents will own it. You are telling me it is not
true.
Mr. Lyles stated that is not accurate.
Mr. Josack stated when Mr. Hollander comes here to complain about WCI’s
mismanagement, he is not representing the majority. The majority of people do not feel this
way. In the past we provided the
Board a petition with over 100 signatures saying we are happy with the way
things are running. We had a
meeting last night. It was
unanimous that we all like the way it is run and we do not want changes. Mr. Hollander admitted WCI is doing a
good job running the facility. We
are happy with the way things are and we are not looking for change. I am asking two things from the
Board. Unless there was fraud or a
crime committed by WCI, I ask their name be cleared. I would like to ask the Board to
consider granting a license with the HOA or the tennis committee to continue to
run the facility in the manner it has been.
Mr. Mendolia stated what you are saying has some merit, but you have to
realize this is not
Mr. Hollander stated as far as ownership of the building and property,
that is not what I said. I said
once the bond is paid off, the Heron Bay HOA, which will be the residents, will
run and manage the clubhouse.
Mr. Lyles stated it will only be the case if an agreement is entered into
by NSID and the HOA. We currently
have such an agreement between the District and the HOA. It has not been turned over yet. It is pursuant to a contract, which has
been negotiated and is part of an existing structure.
Mr. Hollander stated the HOA at some point will run and control the
clubhouse.
Mr. Lyles stated only if the agreement is still in
place.
Mr. Petty stated they may operate it under a management contract, but it
does not give them ownership. It
does not give them carte blanche on operation. The District is still the responsible
entity.
Mr. Hollander asked when is the District going to fix the hurricane
damages?
Mr. Petty responded the hurricane did not do enough damage to cause great
concern. The time has been spent on
insurance matters and inspectors to make sure we do not loose out on any of our
current insurance capabilities. We
have structural damage to the roof.
It is not a simple matter of staff putting out a bid. We asked the engineer to do so and I
anticipate it going out in the next week.
The tennis facilities, canopies and fencing will go out at the same
time. Staff feels good with water
and sewer drainage issues, but they do not feel good with structural
issues.
Ms. Mazurek stated we are three months away from hurricane season and we
are not out for bids.
Mr. Petty stated I know you want it fixed and I
agree.
Ms. Mazurek asked what are the odds of the building and the courts
getting fixed within the next 90 days?
Do you not run the risk of having water damage if there is any more
damage to the roof?
Mr. Petty responded we have the ability to put on temporary repairs such
as tarps. We are more concerned
with getting it fixed correctly.
When you have a government facility, we have a responsibility to use your
tax dollars to make sure the repairs are done correctly. This is why we have the engineer looking
at it and we had the insurance agent look at it.
Ms. Mazurek asked why do the tennis courts have to go out for bids with
the roof?
Mr. Petty responded because it is over $4,000, which is the District’s
minimum requirement to go out for bids?
Ms. Mazurek asked why can it not be done
separately?
Mr. Petty responded they can be done separately, but it will still have
to go out for bids.
Mr. Mendolia asked do we have funds available for something like
this?
Mr. Petty responded the issue is to go through the process. The budget for this particular special
taxing District has some funds available.
We are going to be stretching some of it, but the District as a whole has
funds.
Ms. Mazurek stated we are in multiple leagues who have had their courts
repaired. It is embarrassing to be
a
Mr. Mendolia stated I am surprised you just brought it up now instead of
months ago.
Ms. Mazurek stated I should be at all of these meetings. I need an answer from the
Board.
Mr. Petty stated the bids will be available within 10 days. Depending on the availability of
contractors, we want to see the repairs done as soon as possible. I will defer to the engineer, but I
believe we will give them approximately 90 days to comply.
Mr. McKune stated 90 days should be more than
enough.
Mr. Mendolia stated I agree with her. Is there any way we can move it
up?
Mr. Petty stated you will pay a little more for expedited
repairs.
Mr. Mendolia stated the hurricane was October 23, 2006 and here we are in
March. Can we do it in 30
days?
Mr. Petty responded it has to go out for a public bid. We will be glad to do it in 30
days. The bid will go out for seven
to ten days with the specification it has to be completed within 30 days of the
award. The soonest we will be able
to award it will be at the next Board meeting. If we award at the April meeting, it
will hopefully be completed by May.
Mr. Mendolia stated as soon as we pick the contractor, I will personally
work with him.
Ms. Dennis stated I want to address what you spoke of earlier in regard
to the majority of the people not knowing if they are happy. We brought petitions in the past to show
you how the tennis world was feeling.
The rest of the community does not know what is happening with this
contract and with WCI. If we put it
out there, they will be upset.
Mr. Mendolia stated they might be happy. You do not know.
Ms. Dennis stated we have to find out. Currently no one knows anything except
for the tennis world. Before you
make a decision on a management company, we need to address this
issue.
Mr. Petty stated this is a division of local government. These are elected officials who
represent the people of this community.
They live in the community and they are in charge of making decisions for
the community after listening to input from the public as well as professionals
over a long period of time. It is
not by public vote or popular vote.
They are charged with doing what they feel is best for the District. There is nothing wrong with talking to
your fellow residents or asking this Board to communicate with them. I will not advise you to ask for
decisions to be made by popular vote.
Ms. Dennis stated we need to let the community know what is going
on.
Mr. Petty stated communicating with residents is a good
idea.
Ms. Dennis stated it is important and it has not been communicated. A new management company is going to be
put in and we have no idea what has been set up for this management
company. Will it run the same
way? Will it continue to be
non-profit? It needs to be
communicated to the residents.
Mr. Petty stated the Board is to decide how the contract should run. The contract is currently being
considered in its existing form with no changes over what has been done over the
last several years. You will not be
shocked by a different way. You
will see different faces, but the requirements for the process of management
will be the same for the new entity as they were for WCI. We are not dramatically altering what
previous decisions the Board made.
As far as possibilities of the future, they are discussed at public
meetings which the residents are entitled to attend.
Ms. Dennis stated WCI operates to provide the facilities as amenities to
homeowners. Many of us bought our
homes with the idea it will be part of an HOA and not a club type
situation. Whether you are part of
the tennis community or just a homeowner, the concern is what type of management
company will come. Will a
for-profit company be able to run the facility at a level of excellence without
changing the homeowners’ fees? If
they cannot change our fees, will they open it up to the community in order to
generate money? Most of us know the
courts are booked and there is not much availability. Most of us do not want people from
outside of the community to come in.
Ms. Mazurik asked did WCI commit any crime we are unaware
of?
Mr. Petty responded it is appropriate for them as a contractor of ours to
ask for a clean bill of health and declare it during transition. You cannot opine it in this public
meeting. We can address the issues
of reconciliation.
Ms. Mazurik stated I had to address the residents as to why WCI is
leaving. What Ms. Dennis tried to
tell you is we have been here before as residents telling you we are happy with
the way WCI is running the building.
We were confused other than knowing you had consistent negative
complaints from a couple of residents.
I read the minutes for the past two years and there are two individuals
by name in the minutes who have been complaining. We can produce more numbers at every
meeting to tell you it is not the case and we are happy with WCI. I could not answer the question as to
how we got here other than to say there were two individuals who have been
persistent in complaining about the way the building is run. I ask the Board to reconsider the voice
of two as representing the overwhelming community. The support of the community I heard
last night was loud and clear.
Everyone is happy with the way it is. Are we here because of the voice of
two?
Mr. Mendolia responded no. A
company like WCI is not in business to run clubhouses and tennis courts. They are in business to build
houses. They were using the area as
theirs and it belongs to the people.
Ms. Mazurik asked can the Board reconsider and hear our voices by
allowing WCI to continue running the facility?
Mr. Mendolia responded we have RFPs for clubhouse management. We have someone here. We have to address these things to see
what they are. Maybe you are right
and this does not work. What do we
do? The idea was to have WCI set up
another property management team.
They have management teams all over
Mr. Hessler stated we manage clubhouses all over the State of
Mr. Mendolia asked it seems most of the people here are for this, but are
there other people who are saying no?
I am trying to find out.
Mr. Hollander stated 18 months ago Mr. Lyles told us there were three
audits being performed. My concern
was where all the money was going and why the building had a $600 a month phone
bill. I was assured by Mr. Lyles
and the Board we were going to see an audit. Let us find out where the audit is. Let us find out how much money was
squandered away and give it back to the residents. This Board decided to let them out
without an audit and get another management company. I still want the audit. I want to know where all the money
went. Why did we pay $600 a month
in long distance phone bills? I saw
the bills. I was told by Mr. Lyles
we were getting these audits. Where
are the audits?
Mr. Lyles responded the audit was ordered through the management of the
District and was supposed to be performed in addition to the audit we get
annually by an outside auditor.
Along with the District’s audit, a special audit for Heron Bay Commons
was being commissioned. You met
with Mr. Petty in the past month or you were supposed to have a discussion about
where it was.
Mr. Hollander stated Mr. Petty sent me an audit, but it had nothing to do
specifically with the billing I am concerned about. Why are there so many long distance
phone calls going out of there?
They are using the building for their business.
Mr. Mendolia asked what business?
Mr. Hollander responded their building company business. There is a ten line phone. Why do we need a ten line phone in the
building for? I was assured by the Board and District Management these audits
were ordered. Where are they? I do not think the residents in
Ms. Mazurek asked if a new management were to come in, will you still
look for the audits?
Mr. Hollander responded yes, because it is money owed to us. I recommended WCI pay for the
audits. They should have been done
every year. Mr. Keller said Severn
Trent Services was going to pay for it.
I have not seen the audit.
Mr. Petty stated there are many different versions. We sent the audit done by the HOA as
directed by staff because we could not find it in our files. A copy was sent by Mr. Hessler. We sent it to the Board members, made it
a part of the public record and sent it on to you along with all of the meetings
we had on file electronically for the last six to seven years in case there was
some direction we missed. The Board
has responded to address the issues.
WCI has looked at the issues in-house in a reasonable and professional
matter. They submitted what they
believe is proper accounting. They
sent a check to the District for what they believe was their time used for
business conferences in the room.
They are looking to resolve this and regain their stature in the
community. It is inappropriate for
a resident to continue in this manner asking for a continued investigation when
the Board has looked at these matters and moved on. If you wish, we can go backwards. I feel you have passed this
point.
Mr. Hollander stated Mr. Petty is telling me the Board feels $60,000 in
phone bills should be paid by the residents. Is that your understanding of the
audit? I do not believe I should
pay the phone bill for WCI as a resident.
Look at the bills. They are
all long distance calls. Mr. Petty
is saying it is okay and the Board is condoning it. I feel the Board said instead of having
an audit, we will replace WCI and then look into what we feel they may owe
us.
Mr. Petty stated the audit is done every year by an independent third
party. We talked with this
gentleman about this issue. We have
told him this repeatedly. This
District, as a form of local government, is required to have an independent
third party audit done every year and we do so. We have gotten a clean audit every
year. We asked for a special audit
to be done under the contract conditions.
A copy was sent out and it shows no material deviations. You have done your due diligence of the
accusation. The rest may be
concerns, but I do not feel they are valid unless we want to become detectives
in this issue. Our audit tells us
it is not necessary.
Mr. Hollander stated I do not want to pay WCI’s phone bill. If you feel it is unreasonable, this
Board should look at some of the bills.
They use this facility as their office. I feel it is outrageous for me to pay
$60,000 for part of their phone bill.
Ms. Mazurek stated the issue at hand is the management contract. I want to get back to the issue at
hand. WCI just stood up and said if
they are asked, they will continue to run it. It is still a viable option. The audit issue is not going to go
away.
Ms. Dennis asked do we only have one bid for a management
company?
Mr. Mendolia responded yes.
Ms. Dennis stated you are not going to find many for profit management
companies, which will look at the way Heron Bay Commons has been operated to
benefit the homeowners and see it as an opportunity to make decent
money.
Mr. Petty stated there are few companies doing professional contract
services for recreational facilities.
Severn Trent Services is one of the few which does. We only provide it for the City of
These people submitted the proposal. Mr. Henderson visited the site and
talked with staff. They received
high marks from the staff at the City of
For standard management they are offering to provide it for almost an
identical fee to what we have now, which is $20,000 a month and 90% of the
programming revenue. The existing
programming revenue is from pilates and yoga. The facility manager gets a percentage
of it and the teacher gets approximately 60% to 70%. We get 10%. They are offering the same basic fee of
$20,000 a month plus 90% of the programming revenue. They will provide the
staff.
The alternative is a turnkey management contract. We would pay them $49,000 a month, which
amounts to $588,000. Commissions
from certain programs generating revenue will be paid to the District at an
approximate amount of $51,951. The
total cost to the District will be approximately $536,000. It is a $160,000 drop from our current
budget position. It is similar to
the arrangement they have in Weston.
They typically charge fees for those services. We had discussions during their
consideration of the RFP. I told
them no fees are currently being charged and the Board will have to approve
it. There is a way you can contract
this out and bring revenue back to the District to lessen the costs to all
homeowners. The people who use it
the most might see a slight increase.
Mr. Henderson stated we bid because we are a tennis management company
and we were asked to submit our proposal.
We do not want to upset anyone in any community. We want you to visit us in Key
Biscayne. We stepped into the same
thing in Weston as well. It is a
nice proposal. It will make us
plenty of money without charging fees.
We made the proposal with the understanding there will not be fees. We feel very friendly towards WCI. They are an outstanding company. We talked to WCI about running their
tennis facilities. The quality of
people we can attract will not detract from anything happening in tennis. We will enhance things for your
community.
Mr. Petty stated the Board should ask questions regarding the package
before the residents do.
Mr. Mendolia asked how many clubhouses have you taken care
of?
Mr. Henderson responded we run the tennis facility and clubhouse at the
Ritz Carlton in Key Biscayne.
Mr. Mendolia asked just the tennis area or is it property management for
the entire operation?
Mr. Henderson responded the entire operation. We handle the turnkey operation with the
deli and the entire sports facility.
Mr. Mendolia asked do you handle yoga classes and other things which come
along?
Mr. Henderson responded we do not.
It is not brain surgery for us to add it.
Mr. Petty stated the programming we are referring to is provided by a
third party and not your contract manager.
These people go on a tour to all of the municipal parks and offer their
classes. It is like a summer
program. The management group
oversees it, schedules it and makes sure the rooms are
available.
Mr. Mendolia stated there are other things involved with the clubhouse
such as the pool.
Mr. Drisdale stated we do different things aside from tennis. We run a kids camp. We manage the pool and beach for the
Ritz Carlton. We currently do not
do spa or gym facilities, but we consult for the gym. We are capable of running the pool and
other operations. It is not
difficult. Our main focus is
tennis. We are good at
it.
Ms. Mazurek asked why did we go out to bid? You had financial concerns. There were no tennis concerns. We are here in regard to tennis. We asked you for a license agreement for
the tennis committee to take over the tennis element. It will remove it out of their
hand. They are a tennis
company. We do not have problems
there. What are we fixing by
accepting this contract? They are a
reputable tennis company. They have
a reputation for firing the existing pros, bringing in six pros to run six
courts, which will leave us four for play.
We do not want help like this.
Ms. Dennis stated we have two great pros. They are very involved in our
program.
Mr. Mendelson stated this is the first time since I have been sitting on
the Board that I am hearing positive feedback about WCI. Everything else up to this point has
been negative. The bottom line for
the Board is to satisfy as many people as possible.
Mr. Hollander stated what the residents are looking for is a status quo
situation on the tennis courts. I
am looking for WCI to square up with us.
This Board has not looked into it.
I am here every month thinking if you do this audit, they might owe us
more money.
Mr. Mendolia asked are you saying there is no problem with the tennis
facility?
Mr. Hollander responded I never came here to complain about the tennis
facility except three years ago when I wanted to bring in my own
pro.
Mr. Drysdale stated the idea we will take over six courts and leave four
for the residents is far from factual.
If we do not do the job for you, we do not want to be a part of it. We are a good company. You have a good company with you
now.
Ms. Dennis stated many of us are frustrated because we felt over the last
two years by signing petitions it was our voice in contrast to having one or two
people physically here at every meeting.
For most people to take time off work or out of their lives to come to
every one of these meetings is not possible. We felt we were expressing our voice by
signing the petitions. It does not
feel as if we were heard.
With this contract, they are leaning to the tennis side of it. It is the one piece they want to
do. In addition there are classes,
racquetball courts and meeting facilities which need to be booked all of the
time. There is more to management
of the property than tennis. The
proposal you have is a solution to the one thing which is going
well.
Mr. Mendelson stated you are saying if it is not broken, do not fix
it. It seems to be how the majority
of the people feel.
Ms. Mazurek stated we are not advertising, but this facility is a public
park. I do not feel it is in
anyone’s best interest to advertise it.
The residents are happy with the way it is
operating.
Mr. Mendolia stated you are talking about tennis. What about the rest of the
clubhouse?
A resident responded I bought two houses from WCI. They have been good to me with both
houses. I live in
Mr. Hollander stated I have been here eight years. In my original document it was written
that Heron Bay Commons is a private club for the residents only. In the new documents, WCI has changed
it. We all know it is open to the
public. WCI mislead everyone in
this room.
Mr. Petty stated we are looking at a community recreation facility. The intended use was typically like
community parks are in other communities, which are built with public
funds. We are not going to invite
them. The intent was for it to be
paid for and used by the residents.
Because the residents are part of the public, you are using tax
dollars. If someone finds out about
it, wishes to play and walks up, they are to be allowed in. We have not had a great demand and the
place has been opened for sometime.
Mr. Holland stated there is no record from WCI of guests who walk in or
drive in. Why should I pay for
someone to come off the street and have the same amenities I have without
paying.
Mr. Petty stated you are spending tax dollars for a facility. The City of
Mr. Hollander stated most of the residents who bought there did so under
the assumption this is a private club.
Mr. Mendelson stated we determined it is not a private
club.
Mr. Petty stated we never said anything different here. If there is a problem between someone
who bought a house and the seller of the home, they need to talk to the seller
and not bring it to this Board meeting.
A resident stated I play tennis and it is running fine. I also use the gym in the clubhouse and
it is running fine. I do not know
about the telephone bill. It is not
good, but as far as the other facilities in the clubhouse, it is
fine.
Mr. Medolia asked I hear you, but where were these
people?
Ms. Mazurek responded they signed petitions.
Ms. Dennis stated when we were getting the petition signed I did not go
only to the tennis people. I went
to people using the pool. There are
people on the list who do not play tennis.
I do not know what else we can do.
We came to you with 100 signatures.
Do you want us to come with 200 or 300 people to the meeting? We will do it if
necessary.
Mr. Mendelson stated it seems to me the people here are satisfied with
the way the facility is being run by WCI.
Mr. Henderson stated the idea we will try to turn it into something other
than what it is, is not correct. It
is not our intention.
A resident asked how are you going to make your numbers with no
additional fees or charges?
Mr. Drysdale responded there is ample money in the management fees WCI
was getting. You have $200,000 in
salaries budgeted for this facility.
The level of services you are going to get will be equivalent to the Ritz
Carlton and the Four Seasons. You
will have impeccable services. It
is a public facility, but we are going to go in whatever direction the residents
want us to go in. If we need to
find ways to keep the facility exclusive, we will do it.
Mr. Petty stated the fees for WCI are at a premium level and you can get
premium service for it. I believe
the residents are saying they feel they are getting a premium response. Both entities are in the top tier for
providing these services. Drysdale
can provide excellent services under the existing budget as they proposed
without incurring extra charges.
You can make it part of the contract.
Mr. Drysdale stated every facility we have taken over has been brand new
except for Weston. The management
team left. There were employees who
are still with us. We do not get
rid of everyone. Everyone who left
chose to do so. We are not going to
fire everyone and hire new pros. We
go through a regular hiring process.
If there are talented professionals, we need them in our organization as
well. If there is nothing wrong
with the tennis facility because you have great pros, we will consider bringing
them on staff. They will be part of
a bigger organization with better benefits. It may be good for their careers. You cannot say we are going to get rid
of everyone.
Ms. Mazurek stated you are good at what you do. We like what we have. We do not want you there at the
moment. I am not afraid of
change. I know what we have today
works.
Mr. Drysdale stated you assume we are going to do something different,
which will not make it work. That
is not true. You will find we are
experts at what we do. We make
people happy. We are not going to
go anywhere and do things which do not make people happy.
Mr. Petty stated Drysdale has done nothing, but provide professional
level services for every client we checked with. I can find no faults. The residents are legitimate in stating
what they feel is their preference without putting any type of hindrance on the
ability of Mr. Drysdale to provide this service elsewhere. You are both coming out on top and we
are not going to satisfy anything further by having exchanges between the
residents and a possible vendor.
Mr. Hollander stated most people are under the assumption you are going
to come in, level the place and rebuild.
They are concerned because the tennis pros are well liked. Is there a possibility for them to join
your team? WCI is not running this
facility as a professional service, the residents are. I would like to see a professional group
run it. If this man’s group can
come in for the same money, and we are aware of the accounting errors which went
on, let us go forward.
Mr. Mendolia stated I am seeing everyone wants WCI to control it the way
it is. Everyone is happy the way it
is. Because we only had one
response, maybe we should keep what we have. If we keep it the way it is, WCI has to
approve they will do it. I would
like to have Mr. Petty be the “watch dog”.
Mr. Hollander stated my point is the facility should not be dialing
Mr. Mendolia stated in the future, if we go with WCI, I want Mr. Petty to
be in the hen house with the people.
A $600 phone bill is not going to happen if it does not have
to.
A resident stated you are talking about the services this company will do
for us and what services WCI does for us.
I do not know what WCI does for the tenants or what they will do for the
tenants. Saying services is not
enough for me. I can look at a
shopping list and say something is better than something else. If WCI is just letting the tenants run
whatever they want to, it is not good.
If a tennis group comes in, what will they provide differently than what
we have?
Mr. Mendolia responded if we have to go back to WCI, we will lay out what
we want. They will tell us what
they are going to do just as Mr. Drysdale has.
Mr. Petty stated if WCI is amenable to going forward, this contract will
be at the Board’s pleasure. There
will be termination agreements within whatever terms we come up with in the
contract, which we will have to do because we do not have
one.
Mr. Lyles stated we have a contract with the HOA. It is the HOA which entered into a
contract with WCI’s subsidiary to manage the Heron Bay Commons facility. There is no contract between the
District and WCI.
Mr. Petty stated the resident’s satisfaction is paramount to this
Board. If the residents are not
happy with whomever we ask to do this job, they will come to this Board and the
Board will decide whether or not there will be changes made to the agreement or
if termination is necessary. This is not a lifetime
commitment. This is an agreement to
give someone an opportunity. Before
we make a decision, we need to ask Mr. Hessler if it is something he will feel
comfortable with. We currently have
them set for a March 15, 2006 termination.
They did not extend another 30 days.
Mr. Mendolia stated we are going to have to make a decision
today.
Mr. Hessler asked are we talking about continuing or drawing a contract
with the HOA? The description,
which went with the indenture, recorded this in the description of the
property. I can take the proposal
back to the HOA Board.
Mr. Petty asked because March 15, 2006 is eight days away, can you give
us a handshake agreement to stay on post while you take this to the HOA Board
for a decision?
Mr. Hessler asked can we do a contract with the
HOA?
Mr. Petty responded I believe we can.
Mr. Mendolia stated Mr. Petty needs to watch what is going
on.
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor the termination letter previously authorized to
terminate WCI regarding management of Heron Bay Commons was
rescinded.
Mr. Lyles stated we are now status quo as of three months ago. We have our agreement with the HOA. With the input from the residents, the
Board’s direction should be to tweak our agreement a bit. We will work upon it at the staff level
between now and the next meeting.
We will meet the deadline of having this done. Hopefully, we will not have a lengthy
drawn out discussion about a subject everyone seems to agree on in the
future.
Mr. Petty stated I ask we reject all bids
submitted.
On MOTION by Mr. Mendolia seconded by Mr
Mendelson. with all in favor all bids submitted for management services of the
Heron Bay Commons Clubhouse were rejected.
FOURTH ORDER OF BUSINESS
Consideration of Funding Agreement #441 for
Mr. DaSilva stated this is a funding agreement for a continuation of
design services for the Heron Bay North Plat #4
drainageways.
Mr. Petty stated there are no changes from past funding
agreements.
Mr. Mendolia asked is Mr. Ditthardt with WCI?
Mr. Lyles responded yes.
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor Funding Agreement #441 for Heron Bay North Plat
#4 was approved.
SIXTH ORDER OF BUSINESS
Consideration of Permits
A.
Mr. DaSilva stated this permit is for an addition to an existing
school. It is for the addition of
classrooms. They complied with the
requirements. There are special
provisions required for the permit.
B.
Mr. DaSilva stated this is for the Coral Springs Target’s drainage
review. The new target is being
proposed for the corner of
C.
Mr. DaSilva stated this is a final permit for the Heron Bay North Plat 3
Spine Roads.
On MOTION by Mr. Mendolia seconded by Mr.
Mendelson with all in favor the permits for Park Trail Elementary School Surface
Water Management and Heron Bay North Plat 3 Spine Roads were
approved.
SEVENTH ORDER OF BUSINESS
Staff Reports
A.
Attorney – Interlocal Agreement with CSID
Mr. Lyles stated we discussed the possibility of entering into an
Interlocal Agreement between NSID and CSID to provide for emergency work, which
needs to be done at the water plant.
CSID has a contractor in place doing work at this plant at favorable
prices. The concept is for them to
agree to allow NSID to borrow the contractor they have under contract to do the
necessary repairs in our plant.
After our meeting last week, CSID approved this concept and authorized me
to go forward. We will be preparing
the agreement and getting it ready for final execution for the next meetings for
both boards. We should have an
Interlocal Agreement in place by your next meeting. We will be able to use our funds, our
engineers and our staff to manage the project on our site, but using the
contractor in the terms and conditions CSID has.
B.
Engineer – Informational Only
i.
ii. Parkland Commons Surface
Water Management Site Plans Revision
Mr. DaSilva stated I will have to table this because Ms. Early is not
present.
C.
Manager
Mr. Petty stated there have been actions brought against one of the
sister districts, which you have been partner to in recent years. In 2003 there was a bill submitted to
change CSID into a dependent district from an independent District. There was funding for a lobbyist in
Mr. Mendolia asked do you have a comment?
Mr. Lyles responded I have not had a chance to discuss this with the
manager. I can give you the
information I have independent of what Mr. Petty presented. The Sunshine Water Control District had
a bill filed with the legislative delegation to turn into a dependent district
and take away many of its powers, particularly the power to budget. It is between the Sunshine Water Control
District and the cities it is in.
They are in a difficult situation with
During the discussion the issue of CSID having a lobbyist involved
arose. There was negative comment
and promise of further action coming from some of the cities because their
perception is CSID is taking its taxpayer’s money and using it to fund something
which affects the Sunshine Water Control District instead of the residents of
CSID. As of today there is no bill
pre-filed, filed or any action being taken with regard to CSID. The CSID Board authorized a lobbyist to
watch activity in
Mr. Petty stated the issue of a special district being converted into a
dependent district at the whim of the municipality is not allowed by law. It must be a special bill. It has not been done successfully in the
past. Municipalities and the county
have been chipping away at this since special districts have been around. When they came after CSID, we did help
them out with a lobbyist in 2002.
You did so because you were protecting your interest. If they can take down CSID, they can
take you down. If they can tell
CSID what to do, they can tell you what to do. Your District sits across two municipal
borders. It does not mean it cannot
be broken up. This is all done by a
special bill.
There is not a number you have to score each year to keep your
independent status. You are
independent according to the establishment by the Florida Legislature under a
special act. There has been an
attack made on Sunshine Water Control District similar in nature to the attack
done on CSID to try to make it dependent.
This is a district which sits on the same facility and shares maintenance
personnel with you. They share an
identity with you in parts of
Mr. Mendolia stated we should have Mr. Lyles investigate what you have
said and let him come up with a proposal.
Mr. Lyles stated we can give you a full report at the next
meeting.
Mr. Mendolia asked can we wait until the next
meeting?
Mr. Petty responded it is the Board’s pleasure. The actions are ongoing as we
speak. The Delegation adopted it
and will be taking it to
Mr. Mendolia stated this is all new because it just happened. Mr. Lyles should be looking at it. I cannot make a decision on something I
am not positive about.
Mr. Lyles stated we will have it on the agenda for your next
meeting. We will give you a
complete report.
B.
Engineer (Continued)
i.
Mr. McKune stated last month we recommended award of a contract for
Mr. Mendolia asked what is the amount?
Mr. McKune responded $943,248.30.
Mr. Petty asked are you asking for determination?
Mr. McKune responded this is for informational purposes in response to
last month’s questions.
ii. Parkland Commons Surface
Water Management Site Plans Revision
Mr. DaSilva stated this permit was issued in January, 2006. They submitted revised plans. We reviewed it and ask the Board to
acknowledge the site plan has been submitted and approved by
us.
Mr. Petty asked are you looking for action from the
Board?
Mr. McKune responded to acknowledge the revised site plan has been
submitted by the consultant to the engineer. It has been reviewed and
approved.
Mr. Mendolia stated thank you, so be it.
EIGHTH ORDER OF BUSINESS
Approval of Financials, Requisitions and
Invoices
Mr. Mendolia asked what are all of these refunds?
Mr. Petty responded that is for water and sewer. It is the deposits for people who
moved. They get their deposits
back. If they do not pay their
final bill we keep the deposit.
On MOTION by Mr. Mendolia seconded by Mr.
Mendelson with all in favor the financials, requisitions and invoices were
approved.
NINTH ORDER OF BUSINESS
Supervisor’s Request and Audience Comments
Mr. Hollander asked I am getting an audit on Heron Bay Commons, are you
satisfied with the audit?
Mr. Lyles responded that is not correct.
Mr. Hollander asked are we going to see an audit for Heron Bay
Commons?
Mr. Petty responded you asked me to monitor the operations. We have a budget which includes
monitoring all of the bills. If we
spent $4,000 for phones last year and we spend $300 this year with people
monitoring the operations, we know we have an issue to go back on. You will get a more accurate detail of
your current operations and expenses if you compare them to the
past.
Mr. Hollander stated I looked through all of the bills. There were bills approved by WCI and
paid by Ms. Walker without receipts.
How do we know we received the merchandise. There was a $15,000 a year
contract. It was paid over $100,000
a year. There were no checks and
balances. Why did they not shop it
around? The residents paid for
services WCI received from the vendor and I do not see where we were
refunded. I was told the Board was
going to look into the $60,000 refund.
I do not see a record of where you looked into it. When WCI used this building, they paid
the janitorial company to set up and take down chairs. I do not feel the residents should have
paid for it. I do not see where the
vendor returned the money. This is
why I asked for the audit. It is
this Board’s responsibility to look into it. If you tell me from this day forward Mr.
Petty is going to do the right thing, I respect that. What about what
happened?
Mr. Mendolia responded the past is hard to come by and get the
information. They gave us audits
back and forth, but none of them satisfy you.
A resident stated I never saw an audit specifically on Heron Bay
Commons.
Mr. Mendolia stated it was the one which came in the
mail.
Mr. Hollander asked did anyone look to see what the numbers were applied
to?
Mr. Mendolia asked is there any chance you can sit down with Mr.
Hollander and show him what we have?
Mr. Petty responded I prefer our auditor sit down with him. I believe Mr. Hollander is not looking
for an auditor to explain why they did this. I feel he has other issues. Would you like to speak with the
auditor?
Mr. Hollander responded I would like to know how the auditor came up with
these numbers without the bills and the information. I could not find them in the bills I
looked through.
Mr. Petty stated it is a sampling to check procedures at certain
levels. It is a sampling of checks
for checks and balances. If we come
up with an expense per category, we will be more accurate than any audit you can
order.
Mr. Hollander asked if you tell me the building cost $5 Million a year to
run because WCI is using it as their office, why should the residents pay? From what I saw, it is not right. Tell me how I can get out of paying the
dues in the club and I will not use it.
If you are going to make me use it and pay for it, I want to get these
questions answered.
Mr. Petty responded WCI has worked with us on every question we asked
them. If we have questions in the
future, WCI will come to the plate and be the professionals they have always
been. We are going forward with the
best case scenario we can. I am
going to be looking at systems the District can put in so we can answer these
types of questions.
Mr. Hollander stated you are going to offer WCI a new contract or bid
proposal. Is anyone writing
safeguards of what we learned of what was done?
Mr. Mendoila responded we are going to start it
now.
Mr. Hollander asked will this be public information before the agreement
is signed?
Mr. Petty responded before the Board approves the transaction, it will be
open to the public.
Mr. Hollander asked is the Board satisfied with the $68,000 WCI
paid?
Mr. Mendolia responded we are going to look at everything. We are trying to get everything
organized for the new contract with WCI.
Mr. Petty will be watching them.
If there is a $600 phone bill, Mr. Petty will know why $600 worth of
phone is being used.
Mr. Hollander stated this Board dragged this on.
Mr. Mendelson stated you are the majority of one. The buck stops here. It is where we will be going from
here. There is nothing written down
we can find which is going to remedy your situation. We will table this and it is going to be
from this point on. Mr. Petty will
be checking what is going on and if there is a discrepancy, we will have proof
to go back and investigate.
Mr. Petty stated I am going to ask the Board for a motion to close this
matter so we do not spend 45 minutes at the end of every meeting doing
this. I believe we may have just
lost the possibility of working with WCI, which is what the people who were here
wanted us to do.
On MOTION by Mr. Mendolia seconded by Mr.
Mendelson with all in favor Mr. Holland’s concerns regarding WCI’s past expenses
in regards to Heron Bay Commons was deemed addressed and closed for further
discussion at future meetings.
TENTH ORDER OF BUSINESS
Adjournment
There being no further business,
On MOTION by Mr. Mendolia seconded by Mr.
Mendelson with all in favor the meeting was adjourned at 6:30
p.m.
Steve Mendelson
Salvatore J.
Mendolia
Secretary
President
FOR NEXT
MEETING:
- Consideration of Bids for Repairs of
Heron Bay Commons
- Agreement with WCI for Management
Services of Heron Bay Commons
- Consideration of Permit for
- Interlocal Agreement with
CSID
- Budget Line Item to Fund Lobbyist on
behalf of the District