Agenda 07/28/2009 Item #10DAgenda item No. 10D
July 28, 2009
Page 1 of 13
EXECUTIVE SUMMARY
To receive Board approval of staffs recommendation to resolve sewer back charges
within the Tall Oaks community with property owner, Hill Crest Estates, Inc. in the
amount of $180,000.
OBJECTIVE: To receive Board of County Commissioners (Board) approval of staff's
recommendation to pursue collection of sewer back charges within the Tall Oaks
community from property owner, Hill Crest Estates, Inc. in the amount of 8180,000.
CONSIDERATIONS: At the June 9, 2009 Board meeting, a Public Petition (Agenda
Item 6. B.) was presented by Ms. Naomie McFarland requesting that the Board only go
back one year in collecting sewer back charges for the tenants of the Hill Crest Estates
development known as Tall Oaks. Per Board direction on June 9, 2009, staff attempted
to coordinate a meeting among Hillcrest Estates Inc., the tenants of the property, and
County staff, to ensure all parties involved understand the responsibility for paying the
sewer back charges in the accounts of Hill Crest Estates as the property owner (see
attached letter from the County Attorney's Office, dated June 10, 2009, Exhibit A). In
response to this letter, Hill Crest Estates has declined to attend the meeting (see attached
letter, dated June 15, 2009, Exhibit B).
As background the following facts are pertinent:
• In September 1989, the Collier County Water -Sewer District assumed
responsibility for the sewer system in Tall Oaks. Tall Oaks has a unique
infrastructure in that it has a single property owner but individually metered
tenanted lots.
• All the utility accounts in Tall Oaks are in the name of the property owner.
Agreements exist between Hillcrest Estates and each tenant that require the tenant
to pay utilities.
• On January 6, 2009, staff attended a homeowner's association board meeting to
explain the legal basis for the accounts being in the name of the property owner.
• An anonymous letter, dated January 7, 2009, from a "concerned citizen" alerted
staff that some tenants in the Tall Oaks community were not paying for sewer
services.
• An audit of the Hill Crest Estates accounts revealed that the utility was
erroneously not billing 132 accounts for sewer services rendered.
• 138 accounts have been properly billed historically and have paid for sewer
services rendered.
Agenda Item No. 10D
July 28, 2009
Page 2 of 13
On April 30, 2009, staff again met with the tenants in the community who had not
been billed for sewer services to explain the back charges. Management from Hill
Crest Estates did not accept an invitation to this meeting. At that meeting, staff
also offered an installment pay plan up to seven years in addition to the four year
pay plan offered initially.
All accounts in the community are being billed for sewer charges since April
2009.
As of the writing of this Executive Summary, 18 accounts have been paid in full,
98 accounts have an active installment pay plan with the utility that is signed by
the property owner and tenant, and an additional 9 installment pay plans are
awaiting property owner signatures. There has been no response on 7 accounts.
Further, on June 13, 2009, Mr. William Hicks, President of the Tall Oaks Homeowners
Association (Association), spoke with the County Attorney's Office and staff. Mr. Hicks
made it quite clear that the Association does not consider itself a party to this issue, as it
only impacts some of the tenants in Tall Oaks. The remainder of the tenants have paid
sewer bills since the Water -Sewer District (District) assumed responsibility for waste
water treatment. Mr. Hicks noted that tenants have been receiving a $9 per month sewer
credit from Hill Crest on their leases in exchange for the removal of sewer service from
the tenant's base rent. This is confirmed in the letter from the Hill Crest Attorney, dated
June 15, 2009.
Staff has offered installment pay plans of up to seven years to recover the outstanding
sewer back charges.
FISCAL IMPACT: Revenue received in the amount of approximately $180,000 will be
recorded in the Collier County Water -Sewer District User Fee Operating Fund (408).
GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact.
LEGAL CONSIDERATIONS: This item is legally sufficient for Board action. This is
a regular item requiring a majority vote. Section 95.11, Florida Statutes (Statute of
Limitations), supports the Water -Sewer District's ability to collect four years of back
sewer charges from Hill Crest. Staff is authorized by the Uniform Billing, Operating and
Regulatory Standards Ordinance 2001 -13, as amended, Section 1.3 F, to offer a
reasonable payment plan for the sewer back charges with the property owner ultimately
being responsible for the charges. -JBW
RECOMMENDATION: That the Board approves staff's recommendation to pursue
collection of sewer back charges within the Tall Oaks community from property owner,
Hill Crest Estates, Inc. in the amount of $180,000.
PREPARED BY: Tom Wides, Director, Operations Support, PUD
Jennifer B. White, Assistant County Attorney
Agenda Item No. 10D
July 28, 2009
Page 3 of 13
04-REV-01084/83
Page 1 of 1
Agenda Item No. 10D
July 28, 2009
Page 4 of 13
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number: 10D
Item Summary: To receive Board approval of staffs recommendation to resolve sewer back charges within
the Tall Oaks community with property owner, Hill Crest Estates, Inc.. in the amount of
180,000. {Joe Eellone. Manager, Utii!ty Billing and Customer Service)
Meeting Date: 7/28/2009 g 00 00 AM
Prepared By
Jennifer A. Belpedio
T homas Wides
Operations Director
Date
Public Utilities
Public Utilities Operations
612312009 7:31:13 AM
.Approved By
County Attorney
County Attornev Office 7/8/2009 2:46 PM
Thomas Wades
Operations Director
Date
Public Utilities
Public Utilities Operations
6/25/2009 12:24 PM
Approved By
Peter Lund
Operations Analyst
Date
Public Utilities
Public Utilities Ciperations
6/26/2009 9:54 AM
Approved By
Joseph Bellone
Operations Supervisor
Date
Public Utilities
Public Utilities Operations
6/2612009 10:00 AM
.Approved By
Jennifer A. Belpedio
Assistant County Attorney Date
County Attorney
County Attorney Office 7,712009 2:57 PM
Approved By
Office of Management & Budget
Jeff Klatzkow
County Attorney Date
County Attorney
County Attornev Office 7/8/2009 2:46 PM
Approved By
James W. Delany Public Utilities Administrator Date
Public Utilities Public Utilities Administraticn 719/2009 8:53 AM
Approved By
Ort>IB Coordinator
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
719/2009 9:38 AM
Approved By
Randy Greenwald
Management/Budget Analyst
Date
County Manager's Office
Office of Management & Budget
71912009 4:07 PM
Approved By
Leo E. Ochs, Jr. Deputy County Manager Date
Board of County
County Manager's Office 711312009 10:53 AM
Commissioners
file: / /C: \AgendaTest \Export\ l 33 - July %2028, %202009\ 10. %2000UNTY %20MANAGER %... 7/22/2009
Deputy CmmtyAlt+omey
Scott R. Teach
Section chi'eb
Heidi F. Ashton- Cicko'
Jacqueline W. Hubbard`
' Board Certified City, County
and Local Govenunent law
Office of the County Attorney
a �t
Jeffrey A. Klatzkow
County Attorney
VL4 REGULAR & CERTIFIED MAIL
RRR #70001670 0003 2640 4581
Lee D. Williams
c/o Andrew G. Elliott
9115 Coresa Del Fontana Way
Suite 100
Naples, FL 34109
VIA REGULAR & CERTIFIED MAIL
RRR #7000 0520 0016 1426 1625
Lee D. Williams
1590 Canary Road
Quakertown, PA 18944
June 10, 2009
Agenda Item No. 10D
July 28, 2009
Page 5 of 13
Assistant CouutyAttomeys
Colleen M. Greene
Jennifer B. White
Steven T. Williams
Jeff E. Wright
Robert N. Zachary
EXHIBIT
VL4 REGULAR MAIL ONLY
Lee D. Williams
P.O. Box 60
Spinnerstown, PA
RE: Public Petition Request to Discuss Back Sewer Charges for Residents of Tall Oaks
Mr. Williams:
On June 9, 2009, the Board of County Commissioners considered the attached Public
Petition from a resident of Tall Oaks.
At the meeting, the Board directed that all interested parties meet to discuss payment
responsibilities related to the back sewer charges. As you may know, the County's Utility
Billing Ordinance requires the property owner, Hill Crest Estates, Inc., be responsible for water
and sewer charges. To that end, I am writing on behalf of the Board to request that you or a Hill
Crest representative with decision making capability attend the meeting.
The meeting will be held at:
The Clubhouse located at 525 Barefoot Williams Road
3301 East Tamiami Trail —Naples, Florida 34112-4902 — Phone (239) 252 -8400 — Facsimile (239) 252 -6300
Agenda Item No. 10D
July 28, 2009
Page 6 of 13
Lee D. Williams
June 10, 2009
Page 2
Please contact my assistant, Kathy Crotteau, at (239) 252 -8400 to let her know which of
the following dates and times are acceptable:
June 17, 2009 at 9:00 a.m. or 1:00 p.m.
June 26, 2009 at 9:00 a.m. or 1:00 p.m.
July 1, 2009 at 9:00 a.m. or 1:00 p.m.
If you would like more details about the meeting, please contact me directly. Presently an
attorney with the Office of the County Attorney is not scheduled to attend the meeting.
However, should you desire your legal counsel to attend on Hill Crest's behalf, please let us
know and I will also attend. We look forward to hearing from you.
Very truly yours,
Jennifer B. White
Assistant County Attorney
JBW:kc
cc: Jeffrey Klatzkow, County Attorney
Jim DeLony, Administrator, Public Utilities
Tom Wides, Director, Fiscal Operations, Public Utilities
Joseph Bellone, Manager, Revenue Services, UBCS
Peter Lund, Manager, Revenue Services, UBCS
04- REV -01084/834
3301 East Tamiami Trail - Naples, Florida 34112 -4902 — Phone (239) 252 -8400 — Facsimile (239) 252 -6300
Agenda Item No. 10D
July 28, 2009
Page 7 of 13
LUTZ, BOBO, TELFAIR, EASTMAN, GABEL & LEE
ATTORNEYS AT LAW
J. ALLEN BOB O
JOHN R. DUNHAM. LII
DAVID D. EASTMAN
JODY B. GABEL
LAURA L. GLENN
SCOTT E. GORDON
CAROLS. GRONDZIR
RICHARD P. LEE
H. ROGER LUTZ
SUSAN E. RICE
KARL M. SCHEUERMAN
CHARLES W. TELFAIR, IV
215$ DELTA BOULEVARD
SUITE 210-0
TALLAHASSEE,PLORIDA32303
TELEPIIONEI(850) 521 -0890
TOLL FREE (877) 521 -0890
FAX: (850)521 -0891
E -MAIL: INFO @FLORIAAHOUSINOLAW.COM
PLEASE REPLYTO: TALLAHASSEE
June 15, 2009
Jennifer B. White
Assistant County Attorney
Office of the County Attorney
3301 East Tamiami Trail
Naples, Florida 34112 -4902
SARASOTA OFFICE
ONE SARASOTA TOWER
TWO NORTII TAMIAMI TRAIL
SUITZSCO
SARASOTA, FLORIDA 34234
TELEPIIONEt (9410 951 -1800
TOLL FREE; (877) 95L-1800
r•Ax:(941)366 -ISo3
E-MAIL: LAW @bLUTZ1105 O.COM
ROOERP. CONLEY, OF COUNSEL
O.JOSEPH CALMRACR, OF COUNSEL
EXHIBIT
a
Re: Public Petition Request to Discuss Back Sewer Charges for Residents of Tall
Oaks of Naples
Dear Ms. White:
This is in response to your letter of June 10, 2009, regarding the requested meeting
of the owner of Tall Oaks of Naples (`Tall Oaks") with certain Tali Oaks residents regarding
charges for back billed sewer services.
Contrary to anything which may have been stated or implied by Ms. Naomi
McFarland at the June 9, 2009, meeting of the Collier County Board of County
Commissioners, officers of the Tall Oaks Home Owners' Association, Inc., ("the Association ")
and a representative of the Community Owner have met several times regarding the sewer
back billing issue. In fact, as part of the process of working through this issue between the
Association and the Community Owner, the president of the Association, Mr. Bill Hicks, has
had several telephone conversations with Peter Lund, the Collier County Manager of
Customer Service & Utility Ordinance. The Association is now satisfied with the resolution
of this matter as proposed by the Community Owner.
Under Chapter 723, Florida Statutes, a duly formed and incorporated homeowners'
association has the authority to represent all Community residents as to matters affecting
them. [See section 723.075(1), Florida Statutes.] Ms. McFarland does not represent the
"AV" RATED BY MARTTNDALH- HUBBELL
LTT1Z. OODO, TELPAIRt EASTMAN, CAREL & UM 19 A PART OF LUTZ, 8080 & TELFAIR, P.A.
Agenda item No. 10D
July 28, 2009
Page 8 of 13
Jennifer White, Esq.
June 15, 2009
Page 2
association and has no authority to represent or to speak on behalf of that organization.
Originally, sewer service in Tall Oaks was included in the homeowners' base rent.
Homeowners individually contracted with the County for sewer service and the Community
Owner was billed for the service. However, the nature of sewer service in the Community
changed effective April 1, 2001, as the result of a September 24, 1999, mediation
agreement with the Association (copy attached). Pursuant to that Agreementthe base rent
payable by all Tail Oaks residents was reduced by $9.00 per month in exchange for the
removal of sewer service from the homeowners' base rent. The Tall Oaks residents have
continued to receive the monthly reduction since that time even though as the result of the
error in sewer billing by the County now at issue, the residents did not pay for sewer
service from April 1, 2001, through March 315' of this year. In fact, no bill from the County
for sewer or water service to Tall Oaks homeowners was sent to the Community Owner
until April of this year. In sum, the homeowners have received eight years of monthly base
rent reductions and four years of no sewer billings as the result of the County's billing error,
and are now being billed for the last four years of sewer service.
The change in sewer service in the Community was implemented pursuant to
section 723.037(1), Florida Statutes, regarding reductions in service, and to the following
provisions found in the Tall Oaks prospectus which governs the tenancy of all Tall Oaks
residents:
6.5 Sewage Disposal.... The Park Owner reserves the right, upon
ninety (90) days written notice to each Home Owner, to (i) charge each
Home Owner separately for the sewage disposal services provided by Park
Owner through an equitable apportionment of the cost of such services, or
(il) discontinue the provision of sewage disposal services by the Park Owner
[sic] and cause each Home Owner to be separately billed directly from the
governmental facility or company providing such services.
6.9 Changes to Utilities and Other Services. The description of the
utilities and other services at the Park set forth above reflects the manner in
which such services are provided and charged, and the parties responsible
for the maintenance of the facilities necessary to provide such services, as
of the filing date of this Prospectus. The Park Owner reserves the right,
upon 90 days prior written notice to each Home Owner, to discontinue the
provision or maintenance of any utility or other service described above that
is presently provided and/or maintained by the Park Owner, so long as such
service or utility is replaced by a comparable service or utility. In the event
of such discontinuance and replacement, the Home Owners may be billed
"Av" RATBD ayMArarNDAm- HuBBC[.L
LU M DODO, TaYA[R, EAMMN, OADEL & LEE 13 A PART OP LDTly BOB O & T=YAIR, P.A.
Agenda Item No. 10D
July 28, 2009
Page 9 of 13
Jennifer White, Esq.
June 15, 2009
Page 3
separately for utilities or services that are billed to the Park as of 11 -ia filing
date.
In that the Community Owner has complied with all lawful obligations regarding
notice to the Association regarding the change in sewer service in the Community and has
met with the Association regarding both the change in sewer service and the current back
billing issue, and that these matters have been resolved to the satisfaction of the
Association, the Community Owner respectfully declines to schedule or participate in a
meeting with other Tall Oaks residents regarding these matters.
Please fee free to contact me if you have any questions regarding any of the above.
cc: Rick Tull
""" RATED BYMARTIND J- HUBEMA.
LUTZ.110130, TMXAIQ, FAMUN, OARM & IFC ISA PART OF LDTZ, BOBO &TT'1FAIR, P.A.
49/28/1999 10:13 9417930107
THIS AI$REEMENT is made thls
Maples (her;elnafter "Park Owner"'), and th
Assoclatlon') on behalf of Its members.
WHEREAS, Park Omprgnd the
lot rental amount charged at Tall Oaks Mot
maintenance of Park facilities and Improvr
WHEREAS, Park Owner and the
tot rental amount, the ISrdviti66 of securer w
WHEREAS, Park Owner and the A
matters without the necessity of litigation; E
WHEREAS, the Association hereby
the residents of Tall Oaks of Naples to the
THEREFORE, Park Owner and
(1) Increaso in Base month
,January 1, 2000, the monthly base lot ree
Increase dose not include a $ 9.00 par mo
the eAmination of sewer service from th(
Implemented on the first day of the month
serer system
(2) Inclnase in Hnsn'MonllWy
of January 1, 2001 and Jan
shall be increased by $15.(
(3) Increase In Base Monthly
of January 1, 2003 and Jan
shall be increased by a smo
The CPI Index shall be th
195" 00) for the period of
(4)
ClubhouBa -A dUbiwuse ;
the sole dikoaffan of pans r
will be coneylited as to the
(5)
Maintenance - Mainteuzanc
safety, operation and apps
(B)
Monthly Meeting - park
committee, not to exceed b
(7)
Corporate amce - Homeau
of oli'lc;e during business ho
(8)
Amenities - mmerwill not i
(9)
Lost* - the agreement Is
reserves the right to incram
Cave) E- w/ W- i3E- m
TALL OAKS OF NAPLES
AGREEMENT
th day of Saptemhvr, 11
all Oak3 Hume Owners'
oclation desire to resnlva
Home Parr, the provision
lion wish to avoid
and Park mafnte,
agree that it is
zns that it has the
set forth herein;
hereby agree
Lot Rental Amount for tt
amountshall be increased
i reduction in monthly base
services provided by the
ter the connection of the of
it Rental Amount for>fhe 9
ry 1, 2002, respectively the
(fifteen) dollars).
.ot Rental Amount for the 2
ary 1.2004, respectively the
M egWl to a minimum of $5.
r US Department of Labor
luty to JWy of the year Imme
Neon of epprvxlmately of AU
mar. A homeowner commit
sign and configuration of 016
of all park facilities shall be l
anager will have monthly
number.
on Assocletton Officars can
s at215- 53(1-8933.
suss stated servicas and or
relgrwbie for current residE
rent on all future tenants or
f L%f SE-ZtJEFR 0 /k.A.
1 or - 2
Agenda Item No. 1 O
July 28, 2009
PAGEPa= 10 of 13
r',
and batwaen Tall Oaks cf
atlon, Inc., �here;n�,;,er "tne
hg isaues regarding the
service In the Paris, and
regarding payment of
beneficial to resolve these
to represent and bind all of
2000 Rental Terris - As of
$30.00 (TbUty dollars). This
rental amount resulting from
ark This reduction will be
to the Collier County public
& 2002 Rental Terns - As
thly base tot rental amount
9 & 2004 Rental Torms - As
and* base lot rental amount
or CPI not to ex=cd $15.00,
Urban Gonsvmers (1982 -
tely preceding the (ntuease.
sq R the design of Which will
not to exceed 3 in number
ted In a state of proper 81
d�
is with a homeowner.
N
owner at the corporate �{
to their assigns. Owner
ant lots,
KS
7HE f- 0,q ffC1 GU,(jE�e.S ,
09/28/1999 iH:19
9417930107 TALL DAl6 of NAPLES r
Agenda Item No, 10D
July 28, 2009
PAGEPAM 11 of 13
(10) GO*d Faith - Both Park
forth herein in good faith and subject to eel
0 mar and the AssoclsUPh agre
lion 723.021, Florida Statute
I to porfnrm the obilgations set
and tv make theft beat efiorw
to ensure that matters addressed herein a
Parts Owner end the Association agree th
petfonned in an expeditious
failure
nd proressional manner. Both
breach of thfo Nreament, and that tha not
this Agreemed Park Owner agrees that
it to perform In good
° breaching party shaft be rc
lith shall constitute a rnetertaf
0 for further performance of
in conformance with Section 723.081, Flor
threat of eviction shat! be
a Statutes, as amended.
de to any homeowner except
(11) U40 of Agnmment -This
be uned as evidence or acknowledgment of
r reament is the result or sattt
mr, omission, or wrongdoing
ant negofiiatlons and may not
n any judloiai or administrative
proceeding.
IN WITNESS WHEREOF the
Baas,
HILL CREST ESTATE$, INC.
(iitie) `
Dale
t
set their hands and oasis # Z Y 'c4 day of September,
TALL OAKS M BILE
OME VNEWkSSOCIATION, INC.
13y: �.
Date
19AC,(;F Qtar-x_
L
k 4etC- t SC,(A%, sCLVC-7
UL-4 nw a�/)�
Dupre. I6kklir,00t,
Agenda Item No. 1 O
July 28, 2009
Page 12 of 13
Tall Oaks Mobile Homeowners Association, Inc
591 Black Bear Road
Naples Florida 34113
Board of County Commissioners
CIO Jennifer B. White
Office of the County Attorney
3301 East Tamiami Trail
Naples Florida 34112 -4902
Re: Public Petition Request to Discuss Back Charges for Residents of Tall Oaks of
Naples.
Dear Ms. White:
In accordance with a September 24, 1999 Agreement between the Tall Oaks Mobile
Homeowners Association Inc. the representative of all the homeowners in Tall Oaks with
respect to matters set forth in Chapter 723 Florida State Statutes, and Hill Crest Estates,
Inc, owners of the Tall Oaks Property, rent for lots in the Park were reduced by nine dollars
($9.00) per month to reflect the assumption by the county for provision of sewage treat-
ment for the community.
This Agreement effectively removed the provision of sewer services by the owner and
transferred the responsibility to the county. At the same time it eliminated the issue as a
matter which fell under the provisions of FS 723 and permitted bargaining between the
Parties for that purpose.
. Therefore, the Tall Oaks Mobile Homeowners Association Inc, neither approves or disap-
proves any settlement of Back Sewer Charges between the county and the individual
homeowners
Sincerely
William J. Hicks
President
Agenda Item No. 10D
July 28, 2009
Page 13 of 13