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03/16/2020 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 Monday March 16, 2020 at 1:01 p.m. at Quarry Beach Club located at 8975 Kayak Drive, Naples, FL 34120 Present and constituting a quorum were: Stanley T. Omland Chairman Lloyd Schliep Vice-Chairman Timothy B. Cantwell Assistant Secretary Rached Karanouh Assistant Secretary Also present were: Bob Koncar District Manager Wes Haber (on the phone) District Counsel Albert Lopez District Engineer The following is a summary of the discussions and actions taken at the March 16, 2020 Quarry Community Development District's Board of Supervisors Meeting. FIRST ORDER OF BUSINESS Call to Order • Mr. Koncar called the roll and a quorum was established. SECOND ORDER OF BUSINESS Pledge of Allegiance • The pledge of allegiance was recited. THIRD ORDER OF BUSINESS Approval of Agenda • Mr. Omland added under the 15th Order of Business discussion item related to the 2021 budget and scheduling. • Mr. Haber indicated the Closed Litigation "Shade" Session had been cancelled due to an advertisement issue, but the Board can have discussion on the settlement negotiations. Mr. Omland indicated they were no longer having a closed session discussion but will March 16,2020 Quarry CDD discuss in open session limited items as it relates to the BG Mine, as the Fourth Order of Business on the agenda had been modified. • Mr. Cantwell had five items which he will bring up within the agenda discussion. Mr. Omland informed the Board they have now added new and old business on the agenda. These are good places to put in new or start business as well as old business where items may fall in either of those categories or deeper in the agenda. On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor the agenda was approved as amended. 3-0 FOURTH ORDER OF BUSINESS Close Litigation "Shade"Session A. Discussion of Settlement Negotiations/Strategy Related to Litigation Expenditure • Mr. Haber indicated as the Board is aware, the District is in an open outstanding litigation with BG Mines. The Board has held previous Shade Sessions to discuss various aspects of the litigation, District strategy and proposed settlement. • The purpose of today's discussion is not to have a discussion regarding strategy or anything they would not discuss at an open processing. The reason why this is included on the agenda is because after some hearings which went favorable for the District and was discussed at the last meeting related to communications between counsel for the parties and the Vice-Chair, Supervisor Omland and representatives from BG Mines. • A non-lawyer meeting occurred and after a number of days, the Mine made a settlement offer of$99,000, in exchange for both parties agreeing to waive and not bring any claims that may stem from the litigation. This means the CDD will not be able to bring any further litigations against the Mine, and likewise, the Mine who presently has a motion for attorneys' fees against the CDD will not be able to bring any claims including the claim for attorney's fee. Both parties will file a motion to dismiss with prejudice,and with prejudice language which is relevant as it relates to any future claims related to this litigation. On MOTION by Mr. Cantwell seconded by Mr.Schliep to discuss the settlement offer in the amount of $99,000 from B.G. Mines was approved. 3-0 2 March 16,2020 Quarry CDD • The $99,000 settlement which is specific to BG Mine is the last of the defendants which the CDD has pursued relative to Phase I. Mr. Schliep feels it would be appropriate for Mr. Omland who conducted these discussions with the owner and was involved with all the litigation for both parties to provide a brief statement and recap. • Mr. Omland has had several phone calls and meetings with BG Mine starting back in May 2019. This summer they stated they did not want to meet with the District or settle with the other three parties. Mr. Omland continued to provide a brief overview of events which were discussed leading up to the decision. • Further discussion ensued regarding the motion made. Mr. Cantwell asked for another motion for acceptance or denial to vote. Mr. Omland stated if there was such a motion accepted it would be subject to attorney review, and four or five agreements between the BG Mine and Mr. Omland as to the terms of such a settlement. • Mr. Omland indicated the importance of this occurring today and thanked Mr. Haber for coordinating with the Board but with preamble to the motion to accept the settlement offer of $99,000 with legal conditions. Audience had questions for which the Board provided responses. • Mr. Cantwell indicated the move to accept or deny the proposed $99,000 settlement. On MOTION by Mr. Cantwell seconded by Mr. Schliep with all in favor to accept the settlement offer in the amount of$99,000 from B.G. Mines was approved. 3-0 FIFTH ORDER OF BUSINESS Reconvene of Regular Meeting • Not required. SIXTH ORDER OF BUSINESS Public Comment on Agenda • Public comments were received on the agenda. SEVENTH ORDER OF BUSINESS Organizational Matters A. Acceptance of Resignation—George Cingle • Mr. Omland suggested a plaque of recognition for the service provided by Mr. Cingle during his tenure on the CDD Board. The Board will consider this. 3 March 16,2020 Quarry CDD On MOTION by Mr. Cantwell seconded by Mr. Schliep with all in favor accepting the resignation of George Cingle was approved. 3-0 B. Discussion and Consideration of Vacant Seat#2 i. Rached Karanouh • Mr. Koncar received the resume of an applicant for consideration of the vacant seat. • Mr. Schliep invited the candidate to address the Board. • Mr. Karanouh provided a brief overview and shared his interest and what he will bring, in terms of experience to the Board. • Further discussion ensued on this matter. On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor accepting Rached Karanouh to fill the vacant seat 2 on the Board was approved. 4-0 • Mr. Koncar being a notary for the State of Florida administered the Oath of Office to Mr. Karanouh. C. Consideration of Resolution 2020-04, Designation of Officers • Mr. Koncar presented Resolution 2020-04 for designation of officer. Since the vacant seat was that of the Chair this position will have to be filled. Mr. Koncar stated they will open the floor for discussion on nominations for the position of Chairman of the Board. On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor to open the floor for the Chairman nomination was approved. 4-0 • Mr. Cantwell and Mr. Schliep both nominated Mr. Omland as Chairman for the Board. On MOTION by Mr. Cantwell seconded by Mr. Schliep with all in favor to appoint Mr. Omland as Chairman of the CDD Board was approved. 4-0 4 March 16,2020 Quarry CDD On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor to close the floor for the Chairman nominations was approved. 4-0 • Since Mr. Omland was the Vice-Chair and has now been appointed as the Chair, the Vice- Chair position needs to be filled. Mr. Omland nominated Mr. Schliep as Vice-Chair. On MOTION by Mr. Omland seconded by Mr. Cantwell with all in favor to appoint Mr. Schliep as Vice-Chair to the CDD Board was approved. 4-0 On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor Resolution 2020-04, designation of officers was adopted. 4-0 On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor to appoint Mr. Karanouh as Assistant Secretary to the CDD Board was approved. 4-0 EIGHTH ORDER OF BUSINESS Written Reports • Mr. Omland discussed this with Mr. Koncar as it relates to written reports. • Mr. Omland suggested for future agendas to have written reports which would be under the Attorney's, Engineer's and District Manager's report going forward thus removing a specific written report section on the agenda. NINTH ORDER OF BUSINESS District Manager's Report • Mr. Koncar discussed several follow-up items in his meeting notes which was sent out to the Board. • A draft regarding the website was sent to the Board and corrections were made as received from the Board, additional changes and corrections can be made as deemed necessary. Mr. Omland requested a hard paper copy of the website in order to make additional corrections. Mr. Koncar will obtain this from Campus Suite and provide it to not only Mr. Omland but the entire Board. 5 March 16,2020 Quarry CDD • Further discussion ensued regarding having the links for the engineer and attorney on the website as well as various QCA application forms. • Records retention and maintenance of records was discussed. The Board discussed this further and the attorney provided his input on this matter. • Mr. Koncar mentioned having a policy for plants and trees within easement areas, however, Mr. Lopez is still working on this. A. Approval of the Minutes of January 22, 2020 • Mr. Koncar asked if there were any corrections, deletions or changes to the minutes. There being none, On MOTION by Mr. Cantwell seconded by Mr. Schliep with all in favor the minutes of January 22, 2020 were approved as presented. 4-0 B. Approval of the Minutes of February 17, 2020 • Mr. Koncar asked if there were any corrections, deletions or changes to the minutes. There being none, On MOTION by Mr. Schliep seconded by Mr. Cantwell with all in favor the minutes of February 17, 2020 were approved as presented 4-0 C. Acceptance of the Financial Report, February 2020 and Approval of the Check Register and Invoices for February 2020 • Mr. Koncar asked if there were any changes, questions as it relates to the financial report, check register and invoices. • Mr. Omland provided comments on the financial report. He asked for a list of projects similar to that of Heritage Bay CDD's report to see what projects are completed and which ones are still outstanding. 6 March 16,2020 Quarry CDD On MOTION by Mr. Cantwell and seconded by Mr. Schliep with all in favor the financial report and the check register and invoices were approved. 4-0 D. Discussion of District Website—links & revisions E. Discussion of Action Item List from Meeting Notes • Items were discussed in the Manager's report. F. Update on Bridge Coverage • This was discussed at the last Board meeting. A letter was received from South Florida Water Management District and the District was determined as the one to mostly likely take over the permit from Centex for the bridge. This required the District the right-of- way permit to obtain insurance as well as post a bond in the amount of$62,000. • Mr. Koncar has been in touch with the new right-of-way representative for this will continue to follow-up on this to see if there are any precedents in other Districts in similar situations and what is being done. • Mr. Omland stated this is something which came up in October 2019. The former QCDD engineer,Josh Evans forwarded this to him as he was pushed by the County to renew this because he was the agent for Centex and Pulte. Mr. Omland has forwarded the latest email as it relates to this matter to Mr. Koncar and Mr. Haber and they along with Mr. Lopez are working on this as Mr. Omland would like this matter looked after to ensure the District is not in default and some closure is initiated. G. Update on Records Retention H. Discussion of Minutes Format • These items were discussed in the Manager's report. TENTH ORDER OF BUSINESS Attorney's Report A. Update Regarding Property Due Diligence Items • Mr. Haber went over his report which was included in the agenda package. He informed the Board there was a change order for Quality Enterprises extending the date of completion to March 7 and there was a $5 correction which increased the prices of the contract which was a result of a typo of a prior change order. 7 March 16,2020 Quarry CDD • The other item in his report was the update stemming from the question asked at the last meeting with respect to the Districts ADA website specialist Campus Suite and namely what the Districts' rights are if there is a document, link that has been determined not to be ADA compliant. Mr. Haber provided a brief synopsis which was included in this report regarding the ADA compliant issue. • Mr. Haber stated when a new Board member joins the Board his company goes over the public record laws, the Sunshine law, some of the ethics and considerations on being a new Board member. Mr. Karanouh and Mr. Haber will exchange contact information and Mr. Haber will follow-up with Mr. Karanouh on all the items related to be a Board member. • Mr. Omland asked Mr. Haber for an update on the CD101 book now called the Quarry CDD Manual. Mr. Haber indicated they have made significant progress. His office along with the District Engineer and the Chair have all been working on various parts so presently his office is trying to assemble it into a complete notebook with all the support documents. He is hopeful to have this together to provide to the Board for review and consideration by the next meeting. ELEVENTH ORDER OF BUSINESS Engineer's Report A. Status of Phase III Project and Progress Report • Mr. Lopez provided a report on the status of Phase III. He indicated this project is coming to an end and all shoreline work has been substantially completed with some punch list items to be added. He mentioned there are some docks which need bolts added and some landscape and sod issues which are being addressed. • There was an area along Graphite Circle identified which was overlooked during Phase II due to highwater levels. This is being addressed and they are making progress getting that repaired. • The other project he had pending or to be completed is the Spinner Cove repairs. There were some seawall and berm which needed to be done and was completed on February 28th There is a Fieldstone drainage repair and some punch list items to be taken care of which will be forwarded to Down to Earth so these issues can be addressed. 8 March 16,2020 Quarry CDD • There is also a preserve area assessment which was completed February 26th and a final report is expected by March 31St • Mr. Omland responded to Mr. Cantwell's inquiry if they are studying the ponds and lakes, Mr. Omland indicated they are only studying the preserves as of now.The lakes study will be taken on in the coming months or year and they are doing some pipe cleaning projects which is something they have to add to the ongoing list. • Mr. Omland added to Mr. Lopez report and stated the work they need to do on Graphite is under the lump sum portion on Phase II. He indicated one of the residents affected by the access was present at today's meeting. Mr. Omland, QE and Mr. Lopez walked the area this morning and met with the three neighbors who are affected. They will have a three-day effort in repairing this affected area and are going to insure there is no damage and minimize the disruption and complete this project within QE's project. They were originally scheduled to have this project completed February 28th and this was extended to March 6th, we are now at March 16th and it appears it will be another week before this is completed. • Further discussion ensued on cleaning estimates, claims and damages received by residents. Mr. Omland provided the Board and Mr. Koncar copies of costs based upon the exposure of construction on staging areas over two years and two contractors. He feels QE has an obligation to pay for half of each of the resident's claims if the Board feels these claims are fair. Further discussion ensued on this matter. • Mr. Schliep stated he would make a motion since it is an insignificant amount of money and it is within Mr. Omlands' signing power, as both homeowners' discussions come to an end, if it stays at the values that they are asking for then Mr. Omland can go ahead and take care of it but as stated by Mr. Cantwell to be included are the terms for full release. • Mr. Omland stated some of these expenses have already been undertaken and the residents want the work done this week because they want the area restored. Mr. Omland asked Mr. Haber to provide his input on this discussion. 9 March 16,2020 Quarry CDD On MOTION by Mr. Schliep and seconded by Mr. Cantwell with all in favor cleaning bills for two residents as presented if the residents sign a full release and authorize the Chair to make the settlement within 5% of the amount presented was approved. 4-0 • Mr. Cantwell circled back to the Mr. Omlands' comments about QE in relation to March 6th. He indicated the need to conclude this and discussion ensued on the liquidated damages. Mr. Cantwell stated getting this done correctly and getting the punch list done properly are far more important than the liquidated damages. Further discussion ensued on this matter. Mr. Schliep provided his input on this matter. Mr. Omland asked Mr. Karanouh for his input due to his expertise. He provided his input. • Further discussion ensued regarding closing out and finishing of this project. TWELFTH ORDER OF BUSINESS Business Items A. FEMA Update • Mr. Omland stated a lot is going on with FEMA. At the last meeting, he mentioned FEMA had dropped their funding from 3.2 million to $785,000 to $195,000. He reported at the last meeting their attorney in Tallahassee was working on a comprehensive package which would be given to FEMA explaining everything from beginning to end. He is currently revising their application for funding up to 4.8 million from what was earlier 3.2 million but he is including administrative costs which were not included when Josh Evans submitted the original application. This will now include Phase I & II but not Phase III as they are not entitled to get compensated for fixing what was done incorrectly in Phase I. • Further discussion ensued regarding the bond as it relates to the FEMA recovery. • Mr. Cantwell asked Mr. Haber that they do some homework so the homeowners can understand what impact this will have on the non-ad valorem portion of their tax bill. He feels there is a need to research so they can answer specifically what that impact will be. THIRTEENTH ORDER OF BUSINESS New Business Items • Mr. Cantwell asked about the final certification which CPH, ECS and others are working on for the project in release of the bonds. He had a thought that this, which relates to documentation for their own records for FEMA, is having a video or photographic 10 March 16.2020 Quarry CDD documentation of the lake as it stands for Phase II and III once they are completed. He wants it memorialized in videography, still photography or both. Mr. Lopez stated this part of QE's closing documents. • Mr. Cantwell received a call from the project manager for Jan in boatlift. He shared with the Board the issues this resident is having in terms of having their dock built. Further discussion ensued on a process and policy which can assist homeowner in terms of easement access. • Mr. Cantwell discussed the 2020 upcoming elections. For all the current Board seats the Board members were appointed and there has never been discussion on the election process. Mr. Koncar will follow-up with the Board and have the District's recording secretary provide the Qualifying to Run for Office information to the Board members whose seats are up in this General Election. • On the Collier Supervisors of Election, he noted the names of the individuals for Quarry CDD is incorrect and has asked Mr. Koncar to follow-up on this. • Mr. Omland had two items, one is HBUA Best Practice meeting. Laura mentioned they are moving it online,this was done this morning and she asked each organization that attends this meeting to provide a written report of what they did last year, and their plans are for this year and any outstanding questions they have for their fellow members of the Best Practice. Once she obtains all the information, she will put it together and send it out as a complete package. • The other item if the Board recalls, former Chairman Cingle stated the difficulty he had with the contractor on the water testing and if they did not pay then the beach will be closed. They spoke with the QCA at the meeting who volunteered to take care of it but they need to go through the expense side of it. • In the ensuing month Gerry Soloman and the QCA have provided Mr. Omland information which supports what was a $129,000 annual expenditure which the QCA undertook each year and transferred to the CDD to undertake those same responsibilities. One of the line items was a $8,000 water quality testing charge which was included in the budget. Based upon the understanding the District is picking up on the QCA obligation which is $8000 11 March 16,2020 Quarry CDD and in the Districts' budget. Mr. Omland's recommendation is to give that$8000 back to QCA as the CDD does not want to be held responsible for recreational items. On MOTION by Mr. Cantwell seconded by Mr. Schliep with all in favor to return the funds in the amount of$8,000 to QCA for water testing and request they continue to perform this service subject to QCA comments was approved. 4-0 FOURTEENTH ORDER OF BUSINESS Old Business Items A. Update of CD101 Book • Item was discussed under the attorney's report. B. Mr. Omland is aware that there is an ongoing discussion regarding the echo harvester. He wanted to brief the Board on what he knows. Mr. Flister has taken this under his wing but is currently out of the country and unavailable so, Mr. Omland has no definitive answer to provide the Board at this time. FIFTHTEENTH ORDER OF BUSINESS Action Items A. Reserve Fund • Item not discussed but other action items were discussed during the Manager's report. SIXTEENTH ORDER OF BUSINESS Supervisor Request/Reports • Mr. Omland had this placed on the agenda as it is his vision he would like to see for the coming year. He has spoken about the supervisors taking on individual roles which they can own, and along with the Attorney, Engineer and District Manager provide a written report. If there are written reports included in the agenda package it reduces time unless there are questions related to report and cuts down the meeting time. Admin: There may be nothing to report on this. Finance: Every single month has budgetary issue which he would like someone to own, indicating they have reviewed and Mr. Koncar's office has done great. There may be questions on an item. Lake& Preserve: Mr. Flister is currently responsible for this. Legal: Mr. Omland is uncertain that there is a lot of legal, Mr. Haber and Mr. Koncar provides them any legal items that arise. 12 March 16,2020 Quarry CDD Engineering:There will always be things going on with Mr. Lopez, projects, studies. Complaints: Will require follow-up to emails, voicemail messages. Construction/Projects: Liaison — QCA, HBCDD, HBVA, SBDE, Lake Utilization: A Board member is currently a liaison on one of these. • Mr. Omland is not committed to this list but would like the Board to think about it and divide it up the best way it makes sense and bring this forward to the Board. SEVENTEENTH ORDER OF BUSINESS QCA Modification Committee/CDD Easement Requests A. Pending Approvals B. New Approvals • This report has been added and probably falls under the previous order of business. A Board member can take this one following up with Mr. Lopez on this and reporting back to the Board. It was decided this item will remain as a separate item on the agenda as it currently is, but combine A and B. EIGHTHTEENTH ORDER OF BUSINESS Audience Comments • Audience comments were received. • Mr. Omland mentioned they are currently in a crisis and he is uncertain whether they will meet again, and for that reason he did not want to cancel this meeting. However, going forward he wants to make their meetings shorter by having written reports and more concise discussion. • The one thing they need to do is to plan for their budget presentation in hopes that they could cancel one or two of their summer meetings. By planning that budget session now, and getting Mr. Koncar to follow up on this they might be able to cancel June, July or August meetings knowing that they have to introduce a budget, send it to the county for review, wait 60 days then come back and adopt it and get it to the County before September 15th 13 March 16,2020 Quarry CDD • Mr. Koncar reviewed the budget process. All the meetings are public, but the second meeting of the budget is a public hearing on consideration of the budget. The big issue is whether there will be an increase in assessments. • Mr. Omland stated he believes given their performance this past month and knowingthey cannot utilize funds for the budget from a settlement or FEMA those have to go back to the bond; he believes Mr. Cingle has given them a very good budget to start from and he does not believe there will be an increase. He has provided each Board member with a calendar and circled the third Monday of the month. • The next meeting is April 20 and he would like a preliminary budget presented for that meeting. Mr. Koncar will follow up on this with Accounting. NINETEENTH OF BUSINESS Adjournment On MOTION by Mr. Cantwell seconded by Mr. Schliep with all in favor the meeting adjourned. 4-0 A, WI fo Chairperson 14