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Minutes 07/17/2019 MINUTFiS OF MEETING KEY MARCO COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Key Marco Community Development District was held Wednesday, July 17, 2019 at 8:30 a.m. at the Key Marco Center, located at 505 Whiskey Creek Drive,Marco Island,Florida. Present and constituting a quorum were: Mary Beth Schewitz Chairperson Luanne Kerins Vice Chairperson Maureen McFarland Treasurer/Assistant Secretary Dawn Aitkenhead Assistant Secretary Corrie Grado Assistant Secretary Also present were: Justin Faircloth District Manager Greg Urbancic District Attorney Several Residents The following is a summary of the discussions and actions taken at the July 17, 2019 Key Marco Community Development District's Board of Supervisors Meeting. FIRST ORDER OF BUSINESS Roll Call Mr. Faircloth called the meeting to order and called the roll. A quorum was established. SECOND ORDER OF BUSINESS Approval of Agenda Mr. Faircloth presented the Agenda for the meeting and the following amendments were requested: • Supervisors Grado requested the addition of an index of page numbers on agendas going forward. • Mr. Faircloth indicated there will be a proposal from Marco Island Painting for the gatehouse repairs, to be included under Old Business. There being no further amendments, On MOTION by Supervisor McFarland, seconded by Supervisor Aitkenhead, with all in favor, the Agenda for the meeting was approved as amended. July 17, 2019 Key Marco CDD THIRD ORDER OF BUSINESS Fiscal Year 2020 Budget Public Hearing A. Open the Public Hearing for Public Comment On MOTION by Supervisor McFarland, seconded by Supervisor Grado, with all in favor,the Public Hearing to consider adoption of _the Fiscal Year 2020 Budget was opened. • A resident addressed the procedure for public comments. Mr. Urbancic explained the procedure. • Residents addressed issues with the irrigation system. It was reported that the pumping station at the end of Blue Hill Creek Drive was not working. Mr. Faircloth noted that the maintenance agreement with Hoover Pumping Systems expired on April 30, 2019 and was not renewed. Mr. Faircloth previously requested a new contract from Hoover for this system and also sent an email prior to the meeting starting to Hoover Pumping Systems to have them repair the system. • A resident commented there needs to be better communication between the HOA and CDD regarding the irrigation system. • A resident commented there needs to be full-time staff. Mr.Faircloth commented this may be done at the Board's request. B. Close the Public Hearing for Public Comment There being no further comments from the public, On MOTION by Chairperson Schewitz, seconded by Supervisor McFarland, with all in favor, the Public Hearing to consider adoption of the Fiscal Year 2020 Budget was closed. C. FY 2020 Budget D. Supervisor Schewitz FY 2020 Budget Options Document • Chairperson Schewitz noted that the landscaping proposals are not responsive to the budget and that Landscape Florida was closest to the budgeted amount. • Chairperson Schewitz noted that the CDD will likely have to spend approximately$1.3 Million on roads and the bridge in the next six years. • Supervisor McFarland noted that any changes may be made to the line items, as long as the assessment remains the same. • Management of irrigation was discussed. 2 July 17, 2019 Key Marco CDD D Mr. Faircloth commented the CUD may ask the new engineer to investigate, ask the landscaper to oversee irrigation or hire an irrigation company. D The CDD may also transfer the day to day responsibility to the Community Association. ➢ Supervisor McFarland noted, that as Chairperson at the time, she previously directed Inframark to handle all items regarding the District, including irrigation. ➢ Mr. Faircloth mentioned that upgrades to the irrigation system could be made to improve the performance and management of the system. D Mr. Urbancic commented there can be an operations maintenance agreement with the HOA, in which the HOA can take over responsibility. Mr. Faircloth would work with the HOA to ensure the CDD's part is taken care of. The CDD would be responsible for any capital expenditures. D It was noted that future FEMA reimbursements may be affected. • Mr. Urbancic discussed dissolution of the CDD. Mr. Urbancic indicated he has not seen the process being used before. There is some inherent risk because of the way the public assets are being dealt with. The Statute does not dictate this process. If assets are transferred inappropriately,it can be challenged in court. Supervisors may be challenged individually. Residents may challenge this if they do not want the CDD to be dissolved. Someone may move for an injunction,which may be costly. If challenged,the CDD may possibly be reinstated. ➢ The budget may be reduced if the CDD goes into an operations maintenance agreement with the HOA,but the HOA budget will have to increase. D Any substantial expenses fall back on the CDD as long as it exists. • The Board discussed items to transfer to the HOA. ➢ Supervisor McFarland suggested the line items of the budget pertaining to maintenance and landscaping, and irrigation services be reduced if the HOA takes over responsibility. D Mr. Urbancic commented this is possible, and that the agreement being contemplated will include those items. There will be an exhibit which outlines exactly what the HOA will maintain. Mr. Urbancic will draft the agreement. 3 July 17, 2019 Key Marco CDD ➢ Supervisor Grado suggested the CDD can slowly reduce the capital to be spent on the roads. ➢ The HOA will be given an easement on the right-of-way. • The budget assessment will have to be reduced. • Mr. Urbancic discussed timing issues. • Mr. Faircloth warned that if this agreement did not work out for some reason, the District would have to go out for a special assessment or draw from reserves since it had already reduced its budget. • Mr. Urbancic suggested continuing the budget Public Hearing to the next meeting. • The agreement with the HOA should be effective as of January 1, 2020. On MOTION by Supervisor McFarland, seconded by Chairperson Schewitz, with all in favor,the Public Hearing to consider adoption of the Fiscal Year 2020 Budget, was continued to Wednesday, August 21, 2019 at 8:30 a.m. at the Key Marco Center, located at 505 Whiskey Creek Drive, Marco Island,Florida. • Mr. Urbancic will prepare an agreement with the Key Marco Community Association to oversee the maintenance, landscaping and irrigation needs of the District commencing January 1, 2020. The draft agreement should also be submitted to the HOA for their review. On MOTION by Supervisor McFarland, seconded by Vice Chairperson Kerins, with all in favor, the Key Marco Community Association Manager and Mr. Herb Krutisch, shall be authorized to have access to the Hoover Pumping System. E. Consideration of Resolution 2019-9,Adopting the Budget for Fiscal Year 2020 F. Consideration of Resolution 2019-10,Levying Non-Ad Valorem Assessments These items shall be considered at the continued meeting. FOURTH ORDER OF BUSINESS Public Comments on Agenda Items • Mr. Krutisch commented on the lake management proposals. ➢ Responsibility for the lake was discussed. 4 July 17,2019 Key Marco CDD ' This item should be included in the agreement with the HOA. D There are current agreements with Hoover Pumping Systems, which may not be assignable. Mr. Urbancic will determine the termination period, and at the next meeting, the Board should be prepared to terminate the contract with Hoover, probably as of October 1, 2019. The HOA will have to solicit their own contracts. FIFTH ORDER OF BUSINESS Old Business A. Streetlight Project Discussion This item was tabled until after hurricane season. B. Annual Landscape Contract The current landscaper will be continued on a monthly basis. C. Ground Lease Agreement • Mr.Urbancic discussed past conflicts and the Board's responsibility regarding payment of HOA landscaping expenses. D It may be difficult to determine what was already spent. D It may be approximately$40,000 per year,going back two years. ➢ Technically, if the HOA was unjustly enriched, the CDD should have been paid, but from a practical standpoint,the situation should be fixed going forward. • Mr. Faircloth and the Board concurred with Mr.Urbancic's proposal. D. Key Marco CDD/Inframark Contract Discussion This item was postponed. E. Guardhouse Painting • Mr. Faircloth presented a proposal Marco Island Painting that was lower than the previously approved proposal from Koala-T Painting. He will see if Koala-T will match the price of Marco Island Painting. On MOTION by Supervisor McFarland seconded by Chairperson Schewitz,with all in favor, the District Manager was authorized to negotiate a lower price with Koala-T Painting for painting of the guardhouse, and the District Manager and Supervisor Aitkenhead were authorized to make the final decision based on said negotiations. 5 July 17, 2019 Key Marco CDD SIXTH ORDER OF BUSINESS New Business A. Cyclists/Road Safety • A complaint was received that cyclists are veering over two lanes of traffic in the CDD. • The CDD does not have any enforcement rights here, but rules can be established, in which case the CDD will have to go through the rulemaking process. • Mr. Urbancic indicated the rules have to be consistent with State law. • Mr. Faircloth indicated there is no signage for towing. He recommends the Board consider developing a policy on towing for safety reasons, which also requires rulemaking. • Overnight parking may be permitted at the discretion of the CDD as part of a new rule. • There should be no parking on the grass,only on the roadway. • There are liability issues with pedestrians walking on the roadways. • The owners of 1247 Blue Hill Creek Drive requested Mr. Faircloth investigate their property,as the swale does not appear to be draining properly. This is an issue for the engineer or landscaper. The swales may need to be reevaluated. Mr.Faircloth will go to the property to determine whether there is an issue in the right-of-way. More details were provided by the owner. Mr. Faircloth will work with the owner to resolve this issue. • Mr. Urbancic will prepare rules for safety on the roadways to include towing, to be reviewed at the next meeting B. District Engineer Draft RFQ • Mr. Faircloth presented a draft RFQ for the Board's review and approval. • This will have to be advertised. • The Board will rate each potential engineer based on the attached schedule. • Mr. Urbancic requested changes. > The contract was replaced with one recommended by Mr. Urbancic. > Irrigation should be included after Item C. • The Board would like clectricallstreetlighting experience. • Various firms will be notified,including Johnson Engineering. 6 July 17, 2019 Key Marco CDD On MOTION by Chairperson Schewitz, seconded by Supervisor McFarland, with all in favor, the District Manager was authorized to proceed with the RFQ for District Engineering Services, as amended. C. Securitas Wage Increase Request • Securitas has not hired a replacement for the manager who gave his notice. They are planning to use existing staff. • There was a rate increase in December. • The Board declined the request from Securitas for a wage increase. D. Lake Maintenance Discussion i. Aquagenix Communications(4/10/19 &6/6/19) ii. Lake&Wetland Management Proposals This item was tabled since lake maintenance will be transferred to the Master Association. E. Russowatch Communication(6/25/19) • The proposal will be kept on file if the need for replacement arises. F. Holiday Lighting Discussion • Mr. Faircloth discussed the history behind the agreement presented in the agenda packet. • The consensus of the Board was not to renew the Holiday Lighting contract with Trimmers Holiday Decor,Inc. • Mr. Faircloth will proceed with terminating the contract without having to make a partial payment. • The attorney indicated the agreement states 2017 and 2018. Therefore, the CDD may not be liable for a payment. SEVENTH ORDER OF BUSINESS Attorney's Report A. Updated Draft Rules of Procedure • They have been scaled back to just being procedural items. • Rules for roads will be presented at the next meeting. The planters were discussed. • The planters should be declared surplus property,and the District should be authorized to dispose of them pursuant to Section 274.06 of the Florida Statutes, declaring the 7 July 17,2019 Key Marco CDD property obsolete or unable to be used,is uneconomical,inefficient or serves no further usable function, and the estimated value is under$5,000. On MOTION by Supervisor McFarland, seconded by Chairperson Schewitz, with all in favor, the planters previously moved to the Clubhouse shall be declared as surplus property authorizing the District to dispose of them pursuant to Section 274.06, Florida Statutes, ratifying any prior action of District staff in order to dispose of them under chapter 274. EIGHTH ORDER OF BUSINESS Manager's Report A. Approval of the Minutes of the June 19,2019 Meeting Mr. Faircloth stated each Board member received a copy of the Minutes of the June 19, 2019 Meeting and requested any additions,corrections or deletions. • On Line 259,braking should replace breaking. • On the last page under the signature line,Schewitz should replace McFarland. • Mr. Faircloth discussed the No Outlet sign previously approved to be installed by the Board. There is no issue with proceeding, however, there are issues with Collier County regarding traffic calming devices. This can be included on the engineering RFQ. The No Outlet sign will be installed per the requirements. On MOTION by Chairperson Schewitz, seconded by Supervisor McFarland, with all in favor, the Minutes of the June 19, 2019 Meeting were approved as amended. B. Acceptance of the Financials Mr.Faircloth presented the June 30,2019 Financial Statements for the Board's review and approval.The District has collected 100%of its assessments. On MOTION by Chairperson Schewitz, seconded by Vice Chairperson Kerins, with all in favor, the June 30, 2019 Financial Statements were accepted. C. Fiscal Year 2020 Meeting Schedule Mr.Faircloth noted that additional meeting can be noticed,as they can always be cancelled if not necessary. 8 July 17, 2019 Key Marco CDD On MOTION by Chairperson Schewitz, seconded by Supervisor Aitkenhead, with all in favor, the Fiscal Year 2020 Meeting Schedule was approved. D. Follow-Up Items • Mr.Faircloth met with Crawford Landscaping and made them aware the District is not happy with the way things look. Mr. Faircloth did a drive-through with both the irrigation manager,Tommy Hugo,and account manager,Brian Stork. ➢ Trash needs to be picked up by the landscaping company three days per week. • Mr.Faircloth was contacted by the Chamber of Commerce regarding entrance into the community for their Leadership Marco event. There was Board consensus for the Chamber of Commerce to come in as a guest. • The guardhouse is in need of new supplies. The Board approved issuance of a credit card to the District Manager for Board expenses only. ➢ Mr. Faircloth will sign the CDD up with Staples in which supplies may be ordered and delivered. • Mr. Faircloth discussed a possible credit from Securitas because they inappropriately called for service from Cypress Access. Travelers Insurance Communication 6/17/19 • Mr.Faircloth requested proposals from Egis and the current provider,which he hopes to have available at the next meeting. ii. Document Turnover Update • All communications received regarding emails were requested from the previous management company. • This is not considered a public records request. • Mr. Kevin Kerins noted there are 15,000 emails, some associated with the CDD and others associated with the HOA. Each one would have to be forwarded individually. • Mr.Faircloth does not need these communications at this time. • The Board agreed not to seek emails from the Key Marco Association and just work with them on an as needed basis going forward. • Mr.Faircloth recommended that the Board have CDD email addresses. 9 July 17, 2019 Key Marco CDD NINTH ORDER OF BUSINESS Supervisors' Requests and Comments There being none,the next item followed. TENTH ORDER OF BUSINESS Audience Comments Board members were thanked for all of their work with the community. ELEVENTH ORDER OF BUSINESS Adjournment There being no further business, On MOTION by Chairperson Schewitz, seconded by Supervisor McFarland, with all in favor, the meeting was adjourned at approximately 11:00 a.m. Maryl h Schewitz u in Fa(ircloth 1 Secretary Chairperson 10