BCC Minutes 09/12/2001 B (Pelican Bay MSTBU Budget)
September 12, 2001
TRANSCRIPT OF THE MEETING OF THE
BOARD OF COUNTY COMMISSIONERS
NAPLES, FLORIDA, SEPTEMBER 12,2001
LET IT BE REMEMBERED, that the Board of County
Commissioners, in and for the County of Collier, and also acting as
the Board of Zoning Appeals and as the governing board( s) of such
special districts as have been created according to law and having
conducted business herein, met on this date at 6 p.m. PELICAN BAY
SERVICES DIVISION, BUDGET HEARING, The Foundation
Center, 8962 Hammock Oak Drive, Naples, Florida, with the
following members present:
CHAIRMAN:
VICE-CHAIRMAN:
ALSO PRESENT:
JAMES D. CARTER, Ph.D.
PAMELA S. MAC'KIE
JIM COLETTA
DONNA FIALA
Tom Olliff, County Manager
David Weigel, County Attorney
Michael Smykowski, Division of
Office of Management and Budget
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COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
~
PELICAN BAY SERVICES DIVISION
BUDGET HEARING
TO BE HELD AT
THE FOUNDATION CENTER
8962 HAMMOCK OAK DRIVE
NAPLES, FLORIDA
AGENDA
Wednesday, September 12, 2001
6:00 p.rn.
NOTICE: ALL PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM MUST REGISTER
PRIOR TO SPEAKING. SPEAKERS MUST REGISTER WIm THE COUNTY MANAGER PRIOR
TO THE PRESENTA nON OF THE AGENDA ITEM TO BE ADDRESSED.
COLLIER COUNTY ORDINANCE NO. 99-22 REQUIRES THAT ALL LOBBYISTS SHALL,
BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES (INCLUDING, BUT NOT LIMITED TO,
ADDRESSING THE BOARD OF COUNTY COMMISSIONERS), REGISTER WITH THE CLERK TO
THE BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT.
REQUESTS TO ADDRESS THE BOARD ON SUBJECTS WHICH ARE NOT ON mIS AGENDA
MUST BE SUBMIITED IN WRITING WITH EXPLANATION TO THE COUNTY MANAGER AT
LEAST 13 DAYS PRIOR TO mE DATE OF mE MEETING AND WILL BE HEARD UNDER
"PUBLIC PETITIONS".
ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A
RECORD OF THE PROCEEDINGS PERTAINING THERETO, AND THEREFORE MAY NEED TO
ENSURE THAT A VERBA TIM RECORD OF mE PROCEEDINGS IS MADE, WHICH RECORD
INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED.
ALL REGISTERED PUBLIC SPEAKERS WILL BE LIMITED TO FIVE (5) MINUTES UNLESS
PERMISSION FOR ADDITIONAL TIME IS GRANTED BY THE CHAIRMAN.
1. PLEDGE OF ALLEGIANCE
2. ADVERTISED PUBLIC HEARING _ BCC
A. PRESENTATION OF FISCAL YEAR 2002 PELICAN BA Y SERVICES DIVISION BUDGET.
B. RESOLUTION CONFIRMING THE PRELIMINARY ASSESSMENT ROLL AS THE FINAL
ASSESSMENT ROLL AND ADOPTING SAME AS THE NON-AD VALOREM ASSESSMENT
ROLL FOR PURPOSES OF UTILIZING mE UNIFORM METHOD OF COLLECTION.
3. ADJOURN
1
September 12,2001
September 12, 2001
CHAIRMAN CARTER: Good evening, ladies and gentlemen.
Thank you for joining us for this Board of County Commissioners
meeting to review the Pelican Bay Services Division budget,
commonly referred to as MSTBU. Municipal Services Taxing
Benefit Unit is the translation. And we begin all our meetings with
the pledge of allegiance, so will you please rise and join with me.
(The Pledge of Allegiance was recited in unison.)
CHAIRMAN CARTER: Mr. Ward, if you will be good enough
to take us through the process this evening, I think for all of you who
were here since last year, we have two new commissioners,
Commissioner Coletta to my far right and Commissioner Fiala to my
immediate right. You all know Commissioner Mac'Kie who is a
veteran --
COMMISSIONER MAC'KIE: I think he just called me old.
CHAIRMAN CARTER: I said you were a veteran.
Unfortunately, Commissioner Henning sends his regrets. He was
unable to attend tonight because of a prior speaking engagement in
his district.
So with that, Mr. Ward, would you take us forward please.
MR. WARD: Sure. Thank you, Mr. Chairman. First, on behalf
of the Pelican Bay community, I would like to welcome the
commission to Pelican Bay for your annual trek to review our budget
and to consider the adoption of the necessary resolutions for our non-
ad valorem assessments. My name is Jim Ward. I'm the department
director for Pelican Bay Services Division.
Your consideration tonight is for our budget for fiscal year 2002.
I will briefly go through it with you and then briefly go through with
you the proposed assessment rates for the next fiscal year.
We have essentially two general funds for Pelican Bay Services.
Our first general fund includes both water management and
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September 12, 2001
community beautification services in it. That consists of the
maintenance of the water management bodies here in the Pelican Bay
community. Our community beautification program includes all of
the maintenance of the public road rights-of-way, parks, and other
common areas within the community, all of its landscaping activities.
We do maintain the beach facilities in Pelican Bay, essentially the
beach-raking operation, and we do some street operations within the
community beautification general fund.
We have two other general funds that are ad valorem based.
The first is our streetlighting system, which is a system that is not a
standard Florida Power and Light system. And this past year the
Pelican Bay Services Division has completely replaced the whole
streetlighting system within the community, and if you've driven
around, you've seen all of that.
We have also a security fund which is the additional officer that
we have that's provided by the Collier County Sheriffs Office that
provides the community with one additional deputy 7 days a week,
365 days a year in the community.
In addition to those general funds, we have three separate capital
projects funds, two of which are active funds. The first is for the
restoration of the Clam Bay system, and that includes two parts of it.
One is the ongoing operations of maintenance of Clam Bay system,
and second is the completion of the restoration efforts.
Through the efforts of the commission, you are funding the
operations and maintenance portion of the Clam Bay system this
coming fiscal year. And that is coming from Natural Resources
Fund -- I believe it's called Fund 111 and some additional funding
from tourist development funds, and the balance of the monies are
coming from the Pelican Bay Communities in public/private
partnership with WCI Communities.
We have another fund that is used for asset restoration here in
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September 12, 2001
Pelican Bay, and we do ask that restoration -- such as the landscaping
restoration -- and if you came in Pelican Bay Boulevard at the south
entrance to the community, you'll notice we have a half-a-million-
dollar project ongoing right now for the restoration for the
landscaping and irrigation system within the community that will
continue through this fiscal -- next fiscal year putting such additional
items such as restoration of the U.S. 41 berm that we're talking about
and additional restoration of the balance of the public road rights-of-
way.
We also maintain what we call an "uninsured assets fund." And
as I'm sure most you all know, in this business a landscaping program
is not an insurable asset in the event of a natural disaster, and so we
maintain monies in an uninsurable assets fund, and it now has a total
value of just slightly over a million dollars on an asset that's probably
worth well over four or five million dollars at this point in its life
cycle.
As I indicated before, we raise our funds in two separate ways.
First is through a non-ad valorem assessment that's placed on the
community for the general operations and some of our capital
operations. This coming fiscal year, the proposed assessment rate for
maintenance and our capital reserves is $291.97 per year. That is up
from the prior fiscal year, which was $382.14 per year. It's a 4.81
percent increase or $11 per home per year. (Sic.)
COMMISSIONER MAC'KIE: That's the flat.
MR. WARD: That's the flat amount.
COMMISSIONER MAC'KIE: Thank you.
MR. WARD: In addition to that, the millage rate for streetlights
and security is .1994 for this coming fiscal year on the taxable value
of $3.109 billion for the community. And that is up 1.76 percent
from the current fiscal year of 1.9597.
If we just go back, I did make one mistake. If you just look at a
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September 12,2001
home valued at a half-million dollars in Pelican Bay combining both
the ad valorem tax and the non-ad valorem assessment in the prior
year, you paid $382.14, and this coming fiscal year you would pay
$391.68 for all of the services provided by the Pelican Bay Services
Division.
One other point that I need to put on record for you, your
resolution has the proposed non-ad valorem assessment rates and the
number of equivalent residential units contained in it that are correct.
There's 7,811 equivalent residential units in Pelican Bay factoring in
both the commercial and the hotels that are in the community. That
is slightly up from what was noticed to the residents, which means
the non-ad valorem assessment rate goes down slightly . We
indicated in the mailings that are required pursuant to law that the
community's non-ad valorem assessment rate would be 293.54, and
pursuant to this resolution it is 291.97 per equivalent residential unit.
With that, Mr. Chairman, if you have any questions, I'll be glad
to answer them. That completes my presentation.
CHAIRMAN CARTER: Thank you, Mr. Ward. First I will go
to the public and ask them if there are any questions or comments
that they want to bring in front of the commission or directly to
Mr. Ward.
Yes, sir. Mr. Spanier.
MR. SPANIER: Thank you. I'm Donald Spanier. I'm the
property owner of 812 Pitch Apple Lane in the Oakmont section of
Pelican Bay.
I would like to read into the record or at least state for the record
some observations without getting into detailed questions in this
forum for Mr. Ward. I want to address the economics of what's been
proposed, the politics of it, and certain community aspects.
As far as the economics are concerned, an examination of the
budget that's proposed for 2002 shows proposed expenditures of
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September 12, 2001
$4,093,299, which equates to $524 based on the 7,811 units that were
mentioned.
The comparable figure for this year, 2000, is three million
seventy one thousand and change, a million dollars less. And that
equates to $436.55 per assessable unit. That is a 20 percent increase
in the expenditures projected by MSTBU on your behalf for the
forthcoming year in comparison to last year. The implication that it's
somehow less, which we have heard, is really a result of some very
ingenious accounting, fund and reserve shifting. In effect, it's done
by smoke and mirrors.
The bottom line is that the proposal before you proposes to
spend a million dollars more in the forthcoming fiscal year. That's
Item No.1.
I'd like to point out that this budget proposal presented by Mr.
Ward is the product of the MSTBU Advisory Board, as you know,
which is the old board substituted with a few new faces, all named
and nominated by the old board. I'd like to also point out that one of
the few points of consensus that Judge Brock (sic) has illuminated in
his evaluation of the dispute in this past year in Pelican Bay was that,
other things aside, the board -- the advisory board should be elected
by the property owners, and it should be done at the time that most of
them are in residence here in Naples.
My conclusion is that the present board for which Mr. Ward is
the spokesman can only be viewed as a caretaker board pending the
implementation of whatever changes you see fit to accept from
Mr. Brock. It does not speak for the community. The members of
the board were designated in the fashion you know about, although
many others, including myself, put themselves forward for your
consideration. The consideration, however, was done by the old
board.
A proper budget proposal in the light of these indisputable facts
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September 12, 2001
would be status quo until a new board is designated, organized, and
empowered. The budget that has been in effect for the last year
should be extended status quo. No increase of another million
dollars. Let it stay at the expenditure level dollars of three million,
not four million, until we can deal with this deplorable process.
The final word I'd like to say has nothing to do with process or
economics. It has to do with the fact that all of us are in a difficult
economic time. Those of us who live in this" glitzy enclave," to use
the words of the Naples News, are not pressed the same way as the
people in East Naples are. Nonetheless, we are retired by and large.
We live on the income of what used to be impressive portfolios that
have collapsed. This is not the time to increase the public
expenditures which we support.
I thank you for your patience. That's my presentation.
(Applause from the audience.)
CHAIRMAN CARTER: Thank you, Mr. Spanier. I appreciate
your comments. Mr. Ward, you may like to address the financial part
of it. I will come back and address issues raised about how the new
members that were appointed to the MSTBU out of 17, how that took
place, and I also will address Mr. Brock's report, which he has sent to
the community, and it's there for the community to digest, to go
through, and determine a course of action.
So, first, let me go to Mr. Ward and let him deal with the
financial questions.
MR. WARD: Sure. Thank you, Mr. Chairman.
First, let me -- for the purposes of the public just for the benefit
of the Commission -- give you just a little bit of background as to
how this budget is developed. As you do know, you have an 11-
member advisory committee. In the beginning of generally March or
April of this year, I began the process with the advisory committee of
developing the fiscal year 2002 budget. That starts with essentially a
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September 12,2001
goals and objectives presentation for the advisory board trying to
ascertain from the board and the community what it would like from
the Pelican Bay Services Division for the ensuing fiscal year.
From the development of the goals and objections and the
board's review and approval of that, I then go and develop a
preliminary budget across all of the funds of the division for that
year, and I present that to the advisory board, usually at two or three
different meetings -- I think this year it was about two meetings if I
recall correctly.
The advisory board goes through it line by line ad nauseam and
says "I like that" or "I dislike that" or "Increase that" or "Change
" , , , ,
that," or whatever it works out to be. And at the culmination of that
process pursuant to your ordinance the advisory board votes to
recommend this particular budget to the Board of County
Commission. That was a unanimous vote by the advisory board this
year for purposes of a recommendation to you.
F or purposes of financial information, our budget in the prior
fiscal year in terms of total appropriations was about 5 -- slightly
under $5.2 million. For fiscal year 2002, it's roughly $4.2 million, so
it's slightly less than what it is. The primary reason the assessment
rates have gone up slightly is because of not -- and as we talked about
it at the advisory board level -- a reduction in actual cash reserves we
have available moving forward into the next few years. And I
advised the board and the residents at that time that we probably will
start to see some increases in our assessment rates as the reductions in
our cash reserves happen through the ensuing fiscal years.
So that's sort of the basic process that we used for years and the
process that the advisory board used this year to determine the budget
and the assessment rates that are recommended to you tonight.
CHAIRMAN CARTER: Commissioners, any questions that
you would like to ask?
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September 12, 2001
COMMISSIONER MAC'KIE: It's the process I am familiar
with and comfortable.
CHAIRMAN CARTER: Okay. Let me address the other two
issues, if I might.
Seventeen people came forward when we had four vacancies on
the MSTBU. Because of the decisions and desires of community, at
that time I had turned over the process to Dwight Brock to determine
what the community wanted to do in the future. But in the interim
we did two things: One, we went back to the original ordinance that
has governed this community since, I think, 1992 . We also, as a
board then, looked at the 1 7 candidates. I spent an awful lot of
agonizing hours going through that. I did not accept the
recommendations of the current MSTBU on the top four that they
desired. I did a mix. I selected a gentleman from Bay Colony
because that is the highest taxed group within Pelican Bay, and I felt
that since they're such major contributors to this taxing authority, that
they should have representation.
I recommended the reappointment of another gentleman who
had been on the MSTBU for some period of time who is desirous of
seeing through the final decision of the community. I honored that
request. The other two gentlemen -- one was from -- in fact, I had
three from the Oakmont area including Mr. Spanier. So I supposed
-- and that's where I live -- you could say that was a no-win situation
for me.
I set that aside. I looked at all the credentials. They are all
excellent people, Mr. Spanier included, a former professor at MIT, all
top-notch individuals, no question about it. The gentleman I did
select was the president-elect of the property owners' association who
had been very active through the entire process, who's well respected
within Pelican Bay, certainly had taken what I considered a moderate
position in terms of trying to heal and bring the community together.
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September 12,2001
So I recommended to the board his appointment.
The fourth gentleman was an individual who had run -- if we
would have had an election -- had signed up to run as an elected
official of the community. He had never served before on MSTBU.
He was a completely fresh face. He had great credentials, and I
admire an individual who's willing to step up and serve his
community through an elected process.
So those were the recommendations I made to the Board of
County Commissioners. The board reviewed those and at our
meeting went through and discussed it, and those were accepted. So
you do have some different faces on your new board.
Dwight Brock -- who is, of course, our clerk of courts is an
individual who is well respected in the total Collier County
community -- volunteered his time and his staff to come and sit with
this community, take all the inputs to determine what do you want in
terms of appointments to your M STBU. In other words, how do you
want to do it? All appointed or do you want to go through an
electoral process?
He completed that report. It is now up on the Internet. It has
also been delivered to the leadership of all factions -- and I say
factions -- all interest groups within the community. That does not
mean they are divided. It just says that there are different areas of
concerns and desires. All those people now have that copy, and it is a
draft. It is what the clerk did was go to our county attorney; county
attorney looked at it and signed off; went to our county manager,
Mr. Olliff; he signed off. Clerk of courts is the outside monitor and
monitor of funds that would take place under our jurisdiction as the
Board of County Commissioners. He reviewed it, of course, and says
it passes litmus test. Whatever the residents of Pelican Bay want to
do with this within this framework, it is acceptable to county
government and the constitutional officers it services.
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September 12, 2001
My checklist that I sent to the community some time ago said,
""A," we had to do that, "B," now that it is in the community it will
be up to the Foundation, the property owners, the MSTBU, and all
other parties to have town hall meetings here and determine what do
you want to do. I will take the desires of this community back to this
Board of County Commissioners, and we'll act accordingly, and until
that's decided by this community, nothing further as far as the Board
of County Commissioners will take.
Ultimately, regardless of whether you keep the existing
ordinance or whether you make some changes in adding up --
electing your representatives, that ultimate authority comes to the
Board of County Commissioners for anything like we're doing
tonight, your budget -- and even the people that you would elect,
ultimately, still has to pass the approval of the Board of County
Commissioners. The Board of County Commissioners, regardless of
who sits in these chairs, has the ultimate responsibility for all taxing
authorities in Collier County.
So I hope that will clarify and give you some understanding that
we want to do what the community wants to do. We, the Board of
County Commissioners, will look for you to tell us what you want to
do in terms of how you finally look at this MSTBU. Do you keep the
appointment process in place, or do you select an alternative method,
which would allow you through a staggered schedule to elect
representatives by the property owners as it's currently constructed.
That means if you own property here you could do it.
The other point is, there would be two members on that board
from the business community. So you need to read the proposed
ordinance. You need to spend some time with it, go through it,
underline what you don't like, ask the questions.
What the clerk has done, what I asked him to do, if you would
be as an unbiased outside person, take us through the process. I have
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September 12,2001
completely divorced myself from the situation. I am here to serve
this community and the rest of the communities in District 2.
Whatever you want, fine. I will take it forward, but it had to
meet the checklist. This met step 1. But until you process in the
community I cannot in all due respect in carrying out the duties of my
office take it to the Board of County Commissioners until you put it
through your own community -- of which I live and I am a part of it
-- but I'm only one citizen here. And I am stepping aside as I have
done for months. I want the decision to come from this community.
So I hope that clarifies it. Questions from the board or anyone
else?
COMMISSIONER MAC'KIE: Do we have other speakers?
CHAIRMAN CARTER: Other speakers or who would like to
address the board tonight?
MR. OLLIFF: That was your only registered speaker,
Mr. Chairman.
CHAIRMAN CARTER: Okay. Thank you, Mr. Olliff.
COMMISSIONER MAC'KIE: In that case, I move the
resolution confirming the preliminary assessment roll as the final
assessment roll in adopting the same as the non-ad valorem
assessment roll for purposes of utilizing the uniform method of
collection.
CHAIRMAN CARTER: Do I have a second?
COMMISSIONER FIALA: I'll second that.
CHAIRMAN CARTER: I have motion by Commissioner
Mac'Kie and a second by Commissioner Fiala. Any discussion by
the members of the board?
(No response.)
CHAIRMAN CARTER: Hearing none, seeing none, I call the
question. All in favor signify by saying aye.
Aye.
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September 12,2001
COMMISSIONER MAC'KIE: Aye.
COMMISSIONER COLETTA: Aye.
COMMISSIONER FIALA: Aye.
CHAIRMAN CARTER: Opposed by the same sign.
(N 0 response.)
CHAIRMAN CARTER: Motion carries 4-0.
Thank you all for being here. Meeting stands adjourned.
*****
There being no further business for the good of the County, the
meeting was adjourned by order of the Chair at 6:30 p.m.
BOARD OF COUNTY COMMISSIONERS
BOARD OF ZONING APPEALS/EX
OFFICIO GOVERNING BOARD(S) OF
SPECIAL DISTRICTS UNDER ITS
CONTROL
JAMES D. ARTER, Ph.D., CHAIRMAN
irt~~?tr,,'
/I)wlsnJ~4BROCK, CLERK
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AttlS''H(tQ:CIW 1J'1ta11' s
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Trte"se mInutes approved by the Board on ~ ~/ , as
presented ~ or as corrected
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September 12, 2001
TRANSCRIPT PREPARED ON BEHALF OF DONOVAN COURT
REPORTING, INC., BY PAMELA HOLDEN, COURT REPORTER
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