PBSD Minutes 11/09/2022BUDGET COMMITTEE
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NOVEMBER 9, 2022
The Budget Committee of the Pelican Bay Services Division met on Wednesday,
Nov. 9 at 1:30 p.m. at the Truist Building, 801 Laurel Oak Drive, Suite 102, Naples,
Florida. In attendance were:
Budget Committee
Michael Fogg, Chairman
Joe Chicurel
Denise McLaughlin
Michael Rodburg (absent)
Pelican Bay Services Division Staff Dave Greenfield, Interim Supr. —Field II (absent)
Neil Donill, Administrator Karin Herrmann, Ops. Support Specialist II
Chad Coleman, Operations Manager Lisa Jacob, Project Manager II
Darren Duprey, Project Manager I (absent) Barbara Shea, Admin. Support Specialist II
Also Present Michael Weir, PBSD Board
APPROVED AGENDA (ASAMENDED)
1. Pledge of Allegiance
2. Roll call
3. Agenda approval
4. Approval of 5/04/2022 meeting minutes
5. Audience Comments
6. Review of October Financial Statements
a. New format
b. Year-end adjustments
Financial impact of Hurricane Ian
a. Update on Hurricane Ian Clean-up (add -on)
Budget impact of Oakmont Lake Project close-out
Review of plans for draw down of financing
a. Timing of cash flow requirements by major project for FY2023
b. Options for budget amendments to defer future loan draw down
10. Ten-year financial projection
11. Adjourn
ROLL CALL
Mr. Rodburg was absent and a quorum was established.
Pelican Bay Services Division Budget Committee Meeting
November 9, 2022
AGENDA APPROVAL
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Ms. McLaughlin motioned, Mr. Fogg seconded to approve the agenda as
amended. The motion carried unanimously.
Ms. McLaughlin motioned, Dr. Chicurel seconded to approve the 5/04/2022
meeting minutes as presented. The motion carried unanimouslv.
UPDATE
ON
HURRICANE
IAN
LOSSES
ANll
RELATED
FINANCIAL
IMPACTS
Mr. Coleman provided the following updates related to Hurricane Ian.
•
Replacement irrigation equipment has been ordered at a cost of approximately $116,000.
Our in-house crew will complete the installation. This purchase order is being funded
through our operations budget.
•
Aerators need to be replaced in 17 lakes at a cost of approximately $215,000. Staff will
complete the aerator installation.
•
Our tide gauges in Clam Bay need to be replaced at an approximate cost of $22,000.
•
Our Operations Building has been completely gutted. Only the bathrooms continue to be
used by staff. No offices are in use. Two microwaves and two refrigerators were purchased
for the maintenance staff, which are FEMA reimbursable. Workstations have been set up
in the Truist Building PBSD Office for maintenance staff needs. Staff is working on
leasing a temporary trailer; the estimated annual lease cost is approximately $50,000.
•
The Replacement Operations Building Project will be put out to bid in December/January.
It is hoped that we receive a project bid under $4 million. Ms. McLaughlin questioned
whether we could add solar capability to the specs and suggested that federal subsidies may
be available for this additional expense. Mr. Dorrill will follow up with our engineer,
Davidson Engineering on this issue.
•
Our replacement costs for the aerators, tide gauges, and temporary maintenance trailer will
likely be FEMA reimbursable. Replacement costs for lost equipment for "life, safety, and
health" are generally FEMA reimbursable.
•
PBSD staff removed approximately 800 cubic yards of horticulture debris in Pelican Bay.
•
A purchase order for Hart's Electric has been opened for approximately $35,000 for street
lighting repairs, in order to get the lights back on. Streetlights and irrigation are our #1
priorities.
•
The Pelican Bay Beach has been cleaned by outside contractor, Earth Tech, hired by the
County's Coastal Zone Mgt. Dept. A new beach survey has been completed. The elevation
of the beach has been reduced. It is expected that the County will make a decision on beach
renourishment sometime in early 2023, and the PBSD will piggy -back onto their project.
The dune along our shore is gone and will need to be restored. Although the County will
seek FEMA reimbursement for the needed dune restoration and sand replacement, Mr.
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Pelican Bay Services Division Budget Committee Meeting
November 9, 2022
Dorrin commented that he feels it is unlikely that FEMA will provide reimbursement for
these items.
• County beaches are currently closed. The County is hoping to open Vanderbilt Beach for
the Thanksgiving holiday. Signs will be posted, warning of possible objects in the sand.
• Post -Ian aerials of Clam Pass have been taken. Our Coastal Engineer, Dr. Dabees will
have a new survey of Clam Pass performed. The Pass does appear to be flowing.
• Our Oakmont Lake Project is nearing completion. The lake bank work is completed. The
contractor has some remaining work to complete in the park area. The project is expected
to come in within budget.
• Mobilization of the Sidewalk Phase 2 Project is expected to begin on Monday, Nov. 14.
The contractor is planning to start the project by removing the sidewalk on Ridgewood
Drive, starting at the south end, and working northward. All planned tree removal has been
completed. Some stump grinding work remains to be completed.
AUDIENCE COMMENTS
None
REVIEW OF OCTOBER FINANCIAL STATEMENTS
Mr. Fogg provided a newly formatted 10/31/2022 PBSD balance sheet, which was added
to the record. This new format provides two columns to separate out "assessment funded
activities" and "Pelican Bay financed capital projects, Fund 323." Mr. Fogg commented that he
worked with the Clerk's Office to produce this format which shows our outstanding debt as well
as the amount (currently $4 million) which we have available to draw down. Ms. McLaughlin
emphasized that we cannot go out for bids on our projects unless we have the funds available in
our budget, to pay for them. Mr. Fogg commented that we must draw down funds in advance of
our receiving contractor invoices. Currently we have more cash than we need on our balance sheet,
as a result of the delays of our Sidewalk Phase 2 Project and our Operations Building Project.
Mr. Fogg reviewed unspent balances of projects and reserves for future planned projects.
Or. Coleman suggested that no new lake bank projects are planned this year, and therefore funds
in reserve for such future projects may be used for this year's beach renourishment needs.
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Mr. Coleman reported that we will need approximately $300,000 each month going
forward to pay for• invoices related to our Sidewalk Phase 2 project. He noted that we may not
need any additional draw downs this fiscal year, as a result of the delay in both the start of this
project and our Operations Building project. Mr. Fogg questioned whether we could pay back
some of the funds already drawn down, without a prepayment penalty fee. Mr. Donill commented
that he will research whether a payback is possible, without a penalty fee. He also noted that if we
choose to use funds currently earmarked for other projects this fiscal year, that we will need to
process a budget amendment (requiring BCC approval) no later than July 1, 2023. Mr. Dorrill
noted that the interest rate on our borrowed funds is 2.6% and that we are earning a lesser interest
rate on our cash on hand.
Pelican Bay Services Division Budget Committee Meeting
November 9, 2022
TEN-YEAR FINANCIAL PROJECTION
Mr. Fogg reviewed his "10-year assessment and capital project projections" document
which was included in the agenda packet. He noted that his 10-year estimates do not include
inflation. All estimates as well as debt service will need to be adjusted for inflation in the future,
where applicable. Mr. Fogg suggested that we will need to build reserves for street lighting at
sometime in the future. He noted that his assessment estimates for the next two years require a
3% increase in the assessment for capital needs (which would be in addition to any inflation
required increases).
FUTURE TREE REPLACEMENT
Mr. Dorrill commented that Mr. Griffith has been tasked to prepare a proposal to
enhance/add canopy trees on Pelican Bay Blvd. as well as other residential streets. I-Ie noted that
we will need professionally prepared exhibits of his proposal, which include "road right-of-way"
and private property lines. Ms. McLaughlin suggested that we review the tree species on our list
of approved trees, and eliminate those which are not storm -resistant. Mr. Coleman also suggested
that any new trees should be maintenance friendly. Mr. Dorrill commented that the Landscape &
Safety Committee will need to develop a tree replacement policy, which would include a
discussion of who would be responsible for the maintenance of newly planted trees on private
property (inside the right-of-way). This issue may require a legal opinion.
The meeting was ad.iourned at 2:29
Minutes approved
OR L_j as amended ON �� date
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