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10/21/2019 Minutes MINUTES OF MEETING THE QUARRY COMMUNITY DEVELOPMENT DISTRICT The regular meeting of the Board of Supervisors of the Quarry Community Development District was held Thursday October 21, 2019 at 12:00 p.m. at Quarry Beach Club located at 8975 Kayak Drive, Naples, FL 34120 Present and constituting a quorum were: George Cingle Chairperson Stanley T. Omland Vice-Chairman Timothy B. Cantwell Assistant Secretary William G. Flister Assistant Secretary Lloyd Schliep Assistant Secretary Also present were: Bob Koncar District Manager Jere Earlywine District Counsel Albert Lopez District Engineer The following is a summary of the discussions and actions taken at the October 21, 2019 Quarry Community Development District's Board of Supervisors Meeting. SHADE SESSION FIRST ORDER OF BUSINESS Roll Call • Mr. Koncar called the roll and a quorum was established. SECOND ORDER OF BUSINESS Litigation"Shade"Session • Mr. Earlywine stated the first part of today's meeting is the Shade Session. The Florida Law provides a limited session to the Sunshine law which allows them to meet in a Shade session outside the public session for the purpose of discussing some matters and litigation expenditures with ongoing litigation. This is the purpose of the Shade session that the Board is going to undertake today. • This Shade session was requested at the last meeting on September 16, 2019 it was requested at the advice of the litigation counsel Mike Troponte. The District has provided l October 21,2019 Quarry CDD reasonable public notice of todays' Shade session and there was a publication in the Naples Daily News on October 14, 2019. Today's Shade Session will be transcribed by a court reporter who is set up in the adjoining room. The estimated length of the Shade Session is 60 minutes and in attendance will be the five Board Supervisors who are present today, Bob Koncar, the District Manager, Jere Earlywine, Michael Troponte, the Litigation Lawyer and the court reporter. Upon the conclusion of the attorney client session, the public meeting will reopen and announce attorney client session has concluded and will continue the public meeting at the end of the Shade Session. On MOTION by Mr. Cantwell seconded by Mr. Omland with all in I favor to close the regular public meeting to start the Shade Session was approved. Let the record reflect that the regular board meeting commenced at 1:00 pm. FIRST ORDER OF BUSINESS Roll Call • Mr. Koncar called the roll and a quorum was established. SECOND ORDER OF BUSINESS Approval of Agenda • Under the Manager's Report, Mr. Koncar requested to remove item 6D from the agenda for now. • Also requested to reinstate including the Pledge of Allegiance in the agenda. • The Pledge Allegiance was recited. • Mr. Koncar asked if there were any additional changes to the agenda as presented. There being none, On MOTION by Mr. Cantwell and seconded by Mr. Omland with all { in favor,the meeting agenda was approved as amended. 5-0 THIRD ORDER OF BUSINESS Public Comments on Agenda Items • Public comments were received. 2 October 21,2019 Quarry CDD FOURTH ORDER OF BUSINESS Litigation "Shade"Session A. Instructions B. Discussion Regarding Settlement Negotiations or Strategy Related to Litigation Expenditures • Mr. Earlywine stated they opened the public meeting at 12:00 p.m. and went into the Shade session and are now continuing the regular meeting. • Mr. Earlywine asked if there were any questions in relation to the litigation which the Board would like to take up. He was asked to explain the purpose of a Shade Session. • Mr. Earlywine explained the litigation against the contractors involved with the Phase I work which resulted in a settlement and that piece was approved back in late August/September timeframe. Subsequent to that,the District filed a lawsuit against EB Mining who was involved in the work, but not subject to the settlement agreement. • A Shade Session was announced at the September meeting. • Mr. Earlywine explained the purpose of a Shade meeting. FIFTH ORDER OF BUSINESS Consideration of Matter Regarding Litigation • This was discussed during the closed Shade meeting. SIXTH ORDER OF BUSINESS District Manager's Report A. Approval of the Minutes of September 16, 2019 • Mr. Koncar asked if there were any changes,corrections, deletions to the minutes. There being none, On MOTION by Mr. Cantwell and seconded by Mr. Omland with all in favor, the minutes of the September 16, 2019 meeting were approved. 5-0 B. Financials for September and October will be presented at the November meeting • Due to the transition period the financials were not available from SDS for September so financials for September and October will be presented at the November meeting. C. Consideration of Financial Audit Proposals • This was done some time ago, but the concern Mr. Koncar has, and he has discussed this with the District Attorney is under Chapter 218 there are some specific requirements on how the Board or any type of local government entity procure services for audits. Mr. 3 October 21,2019 Quarry CDD Koncar suggested the Board authorize staff to go back and re-advertise the audit services but instead of an RFP to do a SOQ. • Under the statutory requirements,the Board will receive statements of qualification from qualified firms, rank the firms and then decide which one to negotiate. • Audit committee members, meeting date and time were selected and Mr. Koncar indicated this meeting will be posted in the newspaper. On MOTION by Mr. Omland and seconded by Mr. Schliep with all in favor, authorizing staff to advertise as a SOQ for audit services, appointing the Supervisors Cantwell, Flister and Schliep as the Audit Committee and post a meeting for 12:00 p.m. on November 18, 2019 for the Audit Committee to meet was approved. 5-0 D. Consideration of a Revised Spending Resolution 2020-01 • Item was removed from the agenda. E. Consideration of Resolution 2020-02, Registered Agent • This resolution is changing the registered agent as this is important for legal documents and notifications. On MOTION by Mr. Cantwell and seconded by Mr. Omland with all in favor, resolution 2020-02 authorizing changing the designed , Registered Agent and Registered office of the District to Wesley Haber of Hopping, Green and Sams P.A.was adopted. 5-0 F. Campus Suite ADA Website Compliance • A proposal from Campus Suite is included in the agenda package. Campus Suite will create a new website. • Mr. Koncar made the recommendation to go with Campus Suite to create a new website for the District, as well as making all the documents ADA compliant and keeping those documents required under Florida Law. He will provide the list of the required items as stated by Florida Law at the next meeting. • Mr. Earlywine explained they are also trying to meet an insurance regulatory requirement. In order to provide insurance defense against these ADA lawsuits, the 4 October 21,2019 Quarry CDD insurance company is requiring the District meets certain standards, one of which is having the website reviewed and approved by one of these firms. It has to have a policy seal on it and periodically and quarterly monitored. If those three criterias are met, the insurance will continue to apply. • Discussion ensued regarding the Supervisors' notebook. Mr. Earlywine discussed items listed and will provide the Board the index so they can review this. Mr. Lopez's office has prepared a maintenance map to get started and he is hopeful to have all this information to the Board by December. • Further discussion ensued regarding the website. On MOTION by Mr. Omland and seconded by Mr. Cantwell with all in favor,the contract with Campus Suite for ADA compliance of the District website was approved. 5-0 V • Mr. Koncar stated all contracts for the Boards' approval are subject to final review by District Counsel. Mr. Koncar stated the only additional thing, which other Districts have done,is include a 30-day or 60-day termination for convenience clause and Inframark will work with Mr. Earlywine to have this done. G. Update on Transition Issues • Transition items have been discussed earlier in the meeting, which were: o Website o Audit o Financials • Discussion ensued regarding the meeting schedule on the website. Mr. Koncar stated this advertisement is placed in the newspaper for the entire year for all the meeting dates in order to keep the costs down. However,by Statute, all meeting dates are to be posted on the website. H. FEMA Update • Mr. Omland provided an overview to the Board regarding the FEMA update. He shared his discussion with Mr.Tony Ettore on this matter and indicated he will provide an update on a monthly basis until this item is concluded. 5 October 21,2019 Quarry CDD I. Presentation of Avid Xchange—Accounts Payable System • Ms. Paula Davis,the Accounts Payable's Manager provided a presentation and a handout on Avid Xchange. She explained the process of this accounts payable system. • She mentioned an email was sent to the Board members providing them access except for the Chair as he is providing approval. • Mr. Cingle expressed the importance of the items being coded to the appropriate account. For example, District Counsel does work on the Lakeshore, supervisor manual. This needs to be properly coded so that the Lakeshore cost is charged to the Lakeshore account. J. Ratification of Phase II Additional Expenditures • None. SEVENTH ORDER OF BUSINESS Attorney's Report • Mr. Earlywine's report is covered under other agenda discussions. EIGHTH ORDER OF BUSINESS Engineer's Report • Mr. Lopez presented his report to the Board. • Extensive discussion ensued regarding the change order credit and the dollar amount. The request was made to CPH from QE to make the phone call to see if his office is going to provide technical reasons why$60,000 is not the appropriate number versus$55,000 as a precursor to their Phase Ill vote. • Mr. Koncar discussed the claim request he received from a resident who resides close to construction. He reached out to the resident and asked that he provide receipts; one receipt was provided, but he was unable to open the other receipt. He will, however, work with Mr. Earlywine on this matter to bring it back to the Board at the next meeting. • Further discussion ensued regarding the credit from QE. On MOTION by Mr. Omland seconded by Mr. Cantwell with all in favor change order credit for Stone Lake and rock relocation for a total credit of$60,000 was approved. 5-0 6 October 21.2019 Quarry CDD NINTH ORDER OF BUSINESS Old Business A. All Change Orders to Florida Evergreen • There were several classified emergency change orders issues for Florida Evergreen. The sod on the shorelines was revised. • The new sod necessitated sprinkler modification to ensure that the sod lived and in order to do that, they had to issue some emergency purchase orders to Florida Evergreen because they are the sprinkler maintenance group for Quarry. • There were new ones for Copper Rock and Copper Canyon but they would like the Board to authorize a purchase order to Florida Evergreen in the future of an unknown amount as it has not been estimated due to the time. • Marblestone was a unique situation, all the other sprinkler systems around Stone Lake belong to the QCA who has granted authority to the CDD. However, Marblestone has individual ownership of sprinklers, and emails were sent to all affected homeowners asking if they had any objections to the CDD taking responsibility for both installation and payment for the revisions required for those sprinkler systems and they have not received any objections. On MOTION by Mr. Omland seconded by Mr. Schliep with all in favor authorizing the change orders described for Florida Evergreen works in an amount not to exceed$5,000 was approved. 1_0 B. QE Marblestone Change Orders • The shoreline was redone which was dirt and sod. They realize the rock is not perfect and would like to improve this to make it perfect for those homes that were affected by the recent work. In order to do that they are doing what is called a rock relocation where an excavator is going to come in and place rocks better than what exists today and it is going to look a lot smoother and provide better protection. • The District has come to an agreement with QE and would like the Board to consider a change order for QE. 7 October 21,2019 Quarry CDD On MOTION by Mr.Omland seconded by Mr. Flister with all in favor authorizing the QE change orders for the rock relocation on Marblestone in the amount not to exceed $30,000 was approved. 5-0 C. Discussion on Change Order in General • Mr. Earlywine indicated there was a revised spending resolution that was prepared for the meeting but Mr. Koncar had stated at the beginning of the meeting this resolution was pulled. • Mr. Koncar stated after his discussion with the Chair it was the understanding of the attorney that this was already covered under the existing resolution so we did not need to make an amendment to it. • Mr. Earlywine stated the approval was already covered in the language of the revised spending resolution so he did not make a further change to that resolution, but he still thinks they need to approve this resolution. He continued to state back in the Spring the Board adopted a resolution that authorized the Chair to make certain expenditures. With that being said this is not typical or common for most Districts. Most Districts authorize the Manager to spend up to $5,000 and above that the Chair along with the Manager's approval, as well can go beyond that for emergencies and health safety welfare reasons. • Mr. Earlywine read resolution 2020-01 to the Board. On MOTION by Mr. Omland seconded by Mr. Cantwell with all in favor resolution 2020-01 the amended spending resolution authorizing the District Manager to make expenditures in the amount not to exceed $5,000 and the Chair to make expenditures with no limits for emergencies and health safety welfare reasons was adopted. 5-0 D. Discussion on Phase III Change Order • Mr. Cingle discussed the change orders. He discussed phase I, II and III. • The change order is in the amount of$1,057,400 to QE and Mr. Omland explained why Phase III is a change order not a RFP. • Mr. Cingle indicated this is going to be based on a unit cost concept. He continued on to say they are going to pursue a unit cost concept for Phase III which has the opportunity 8 October 21,2019 Quarry CDD to reduce our cost but it will require an extreme level of oversight. Further discussion ensued regarding this matter. { On MOTION by Mr.Omland seconded by Mr. Flister with all in favor the change order for Phase III for QE in the amount of$1,057,400 was approved. 5-0 • There are two areas which have come up recently in the Phase III change order. There is an amount specified for work to be determined, it is approximately$150,000. It is not contingency, it is a little bit more defined than contingency, but nonetheless they do not have specific information on it so an amount was included in case they found some things and they have. Two items have cropped up and Mr. Cingle would like authority from the Board to pursue costing these items out for consideration under the$150,000 of work to be done potentially in Phase III by QE. The two areas are: o T-box side of hole number three. o Gaps in the seawall near Spinner Cove. • CPH has a design done and estimated cost is $3,000 to$4,000 total. Mr. Cingle would like to pursue this with QE and get this going. On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor the QE change order for Phase III in the amount of$150,000 for potential negotiated services as an addendum on the tee box hole, number three and the gaps in the seawall at Spinner Cove was approved. 5-0 • These two jobs, Spinner Cove and wash-out area are within the scope of the$1,057,000 change order. There are additional change orders which Mr. Cingle would like the Board to consider for the execution of Phase III. • CPH will need a change order to perform construction management services at an enhanced level. CPH has exhausted their order on Phase II for the construction manager. 9 October 21,2019 Quarry CDD • Mr. Cingle stated they would inspect the docks. As an insurance policy, he would like an independent inspector to go around and inspect the docks, provide a report with a photograph of each dock that is inspected around Stone Lake. He has obtained a quote from J&M Docks who have done 90%of the docks in the Quarry and he would like the Board to consider a not to exceed amount of$10,000 based on a$250 a dock inspection and report generating a quote prepared by J & M for that work and this will be outside the$1,057,400. • Mr. Lopez was asked if he understood the scope of work for Phase III and when will they receive an estimate for that work. Mr. Lopez responded the cost will be the same amount as they did for the first phase. However,subject to a receipt of a formal proposal he will be okay with this. • Mr. Omland provided his input on this matter. On MOTION by Mr. Omland seconded by Mr. Cantwell with all in favor the QE change order for execution of Phase III for ECS quality management services, CPH change order for construction management services and engineering in the amount not to exceed $120,000, subject to a receipt of a formal proposal, and dock inspections from an independent contractor to obtain other proposals in the amount not to exceed $10,000 were approved. 5- 0 • Comments and discussion ensued regarding the docks. E. Discussion on Insurance Payments for Homeowners • Item was deferred to the November meeting. F. Approve Fieldstone Order to Florida Evergreen; Additional Homeowner Requests for Fieldstone and Ironstone • Mr. Cingle shared where they were with this project. Discussion ensued regarding the budget, reserves and the increase for fiscal 2020. • Discussion ensued regarding the poor drainage in Fieldstone. A study was done by CPH and a quote was received from Florida Evergreen for 1,000 feet of a new drain line to be added with additional drain boxes. 10 October 21,2019 Quarry CDD On MOTION by Mr. Schliep seconded by Mr. Flister with all in favor Fieldstone drainage revision for $17,000 to be done by Florida Evergreen sometime in the next quarter and to be inspected by CPH was approved. 5-0 On MOTION by Mr. Cantwell seconded by Mr. Flister with all in favor to pursue drainage improvement design for Fieldstone in the amount of not to exceed$5,000 was approved. 5-0 G. Discussion on Maintenance Transition from QCA H. Discussion on Vendors to Quote for Lakes and Preserve Maintenance I. Discussion on Lake Weeds and Harvester • Items G, H, and I were discussed collectively. • Mr. Flister provided his comments regarding his work with the preserve committee. He attended a seminar run by the Cassa Group and one of the speakers was Elizabeth Quinter who is the Environmental Analyst for the Water District. He provided an overview of his discussion with Ms. Quinter. • Discussion ensued regarding the lake management and lake weeds. • Mr. Earlywine stated Mr. Flister has been working on the scope of service and explained how the logistics is going to work but feels it would be helpful to have Mr. Lopez review this from a technical standpoint. From a legal prospective there are a couple of different agreements Mr. Earlywine has been working on. Discussion ensued regarding the agreements,one being the one between QCA and the CDD which needs to be terminated. He has prepared a termination letter which goes into effect January 1, 2020. The other agreement that is out there is between the golf club and the CDD which is a cost-share of services. Further discussion ensued regarding this matter. J. Discussion on Repairs for Spinner Cove • Item was discussed earlier in the meeting. K. Discussion on my Visit with Ed Hubbard (Chairman of Heritage Bay CDD) • Mr. Cingle met with Ed Hubbard the Chairman of Heritage Bay CDD. They discussed the similarities of the Districts and what they can do to work together as a team. 11 October 21,2019 Quarry CDD • The question was asked about the differences in agenda between The Quarry and Heritage Bay. Mr. Koncar provided his feedback on this matter. L. Update Regarding CDD Supervisor Notebooks and Related Property Ownership Analysis and Maps • Mr. Earlywine will provide the latest index to the Board for their feedback. TENTH ORDER OF BUSINESS New Business • Discussion ensued regarding the ponds and lakes on the golf course. On MOTION by Mr. Cantwell seconded by Mr. Flister with all in 1 favor appointing Mr. Schliep as the Liaison for the Golf Club was approved. 5-0 On MOTION by Mr. Cantwell seconded by Mr. Flister with all in favor appointing Mr. Flister as the Liaison for Preserve Maintenance, Lake Maintenance, Strategic Lake Planning and Strategic Asset Planning was approved. 5-0 • Mr.Cantwell questioned whether a motion had been taken on the termination of the CDD and QCA. The other document will be presented at the next Board meeting. On MOTION by Mr. Cantwell seconded by Mr. Omland with all in favor authorizing staff to send out the termination notice to the QCA was approved. ELEVENTH ORDER OF BUSINESS Supervisor Requests • None. TWELFTH ORDER OF BUSINESS Audience Comments • None. 12 October 21,2019 Quarry CDD THIRTEENTH ORDER OF BUSINESS Adjournment On MOTION by Mr. Omland seconded by Mr. Cantwell with all in favor the meeting adjourned. 5-0 Secretary/Assistant Secretary C airperso /Vice-Cha' person 13