Agenda Page 2 Enterprise Community Development District Board of Supervisors K. Todd Rimmer, Chairman Gary L. Moyer, District Manager Russell Stokes,

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1 Agenda Page 1 ENTERPRISE COMMUNITY DEVELOPMENT DISTRICT AGENDA PACKAGE DECEMBER 5, 2018

2 Agenda Page 2 Enterprise Community Development District Board of Supervisors K. Todd Rimmer, Chairman Gary L. Moyer, District Manager Russell Stokes, Vice Chairman Jason Walters, District Counsel Kimberly Locher, Assistant Secretary Raj Singh, District Engineer Gregg Harkness, Assistant Secretary Keith Trace, Assistant Secretary November 27, 2018 Board of Supervisors Enterprise Community Development District Dear Board Members: The regular meeting of the Board of Supervisors of the Enterprise Community Development District will be held Wednesday, December 5, 2018 at 4:00 p.m. at the District Office, located at 313 Campus Street, Celebration, Florida. Following is the advance agenda for the meeting with support material included for your review. 1. Roll Call 2. Pledge of Allegiance 3. Public Comment Period 4. Consent Agenda A. Acceptance of the Minutes of the November 6, 2018 Landowner s Meeting B. Approval of the Minutes of the November 7, 2018 Meeting C. Check Register 5. Staff Reports A. District Manager i. Financial Statements ii. FEMA Update B. Field Operations i. Field Management Report C. Utility Operations i. Utility Report ii. FOG Report D. Attorney E. Engineer i. Approval of Engagement Letter and Fees from GAI for District Engineering Services ii. Approval of Ancillary Agreement with Atkins for Hydraulic Modeling iii. Termination of GAI s Agreement for Interim Services F. District Representative 6. Other Business and Supervisor Requests 7. Adjournment I look forward to seeing you at the meeting. If you have any questions, please feel free to contact me. Sincerely, Gary L. Moyer Gary L. Moyer District Manager

3 Fourth Order of Business Agenda Page 3

4 4A. Agenda Page 4

5 Agenda Page 5 MINUTES OF LANDOWNERS MEETING ENTERPRISE COMMUNITY DEVELOPMENT DISTRICT The landowners meeting of the Enterprise Community Development District was held on Tuesday, November 6, 2018, at 4:00 p.m. at the District Office, 313 Campus Street, Celebration, Florida. Present were: Gary L. Moyer Todd Rimmer Members of the Public FIRST ORDER OF BUSINESS Call to Order Mr. Rimmer called the meeting to order at 4:00 p.m. Mr. Moyer stated the purpose of today s meeting is to assemble the landowners to cast votes for the election of three people to the position of Supervisor. SECOND ORDER OF BUSINESS Determination of Number of Voting Units Represented Mr. Moyer stated at this time, I will canvass the landowners to determine the number of voting units represented. Anyone who is a landowner within the Enterprise CDD needs to declare the number of votes they represent, which is one vote per acre of land. If you own less than an acre of land, you are entitled to one vote. Mr. Rimmer stated by proxy for The Celebration Company, I represent acres, or 555 votes. Mr. Moyer stated no other landowners are present at today s meeting. THIRD ORDER OF BUSINESS Election of Chairman for the Purpose of Conducting the Landowners Election Mr. Moyer stated Chapter 190, Florida Statues, requires that when the landowners are assembled, someone needs to serve in the position of Chairman for the purpose of conducting the landowners meeting. Since Mr. Rimmer is the only landowner present, I will ask if he is willing to serve as Chairman. I will continue to walk you through the rest of the agenda. Mr. Rimmer stated I will so serve.

6 Enterprise CDD November 6, 2018, landowner meeting Agenda Page 6 FOURTH ORDER OF BUSINESS Nominations for the Position of Supervisors (3) Mr. Moyer stated three positions expire today: Seat 1 which is vacant, Seat 3 held by Ms. Kimberly Locher, and Seat 5 held by Mr. Gregg Harkness. I will ask you to make nominations for three positions. You can nominate anyone you would like as long as they are residents of the State of Florida and citizens of the United States. Mr. Rimmer stated I nominate Mr. Keith Trace for Seat 1, Ms. Locher for Seat 3, and Mr. Harkness for Seat 5. Mr. Moyer stated hearing no further nominations, we will close the nominations. FIFTH ORDER OF BUSINESS Casting of Ballots Mr. Moyer stated I will ask Mr. Rimmer to complete his ballot and cast votes for those candidates. You may cast up to 555 votes for two candidates and a number less than that for your third candidate. The two candidates who receive the highest number of votes will serve four-year terms, and the third will serve a two-year term. SIXTH ORDER OF BUSINESS Tabulation of Ballots Mr. Moyer stated Mr. Rimmer has given me his ballot indicating that Mr. Trace received 155 votes, Ms. Locher received 200 votes, and Mr. Harkness received 200 votes, such that Ms. Locher and Mr. Harkness will each serve four-year terms, and the Mr. Trace will serve a two-year term. SEVENTH ORDER OF BUSINESS Landowner Questions and Comments There being none, the next order of business followed. EIGHTH ORDER OF BUSINESS Adjournment On MOTION by Mr. Rimmer, with all in favor, the meeting adjourned at 4:05 p.m. 2

7 4B Agenda Page 7

8 MINUTES OF MEETING ENTERPRISE COMMUNITY DEVELOPMENT DISTRICT Agenda Page 8 A special meeting of the Board of Supervisors of the Enterprise Community Development District was held Wednesday, November 7, 2018, at 4:00 p.m. at the District Office, 313 Campus Street, Celebration, Florida Present and constituting a quorum were: Russell Stokes Gregg Harkness Kimberly Locher Keith Trace Vice Chairman Assistant Secretary Assistant Secretary Assistant Secretary Also present were: Gary L. Moyer Jason Walters Maria Fuentes Marty Pawlikowski Russ Simmons Alex Zlatic Members of the public Manager: Moyer Management Group Attorney: Hopping Green & Sams Inframark, Management Division Walt Disney Imagineering Inframark, Management Division Inframark, Operations Division FIRST ORDER OF BUSINESS Call to Order and Roll Call Mr. Stokes called the meeting to order at 4:00 p.m. Mr. Stokes called the roll and stated a quorum was present for the meeting. SECOND ORDER OF BUSINESS Mr. Stokes led the Pledge of Allegiance. Pledge of Allegiance THIRD ORDER OF BUSINESS Public Comment Period Ms. Karen Riley stated I live on Honeysuckle Avenue. At present, this District has a policy of taking a deposit equal to three months of the average bill in order to obtain water service. These deposits are not returned until the customer discontinues service, which can be years. You do not pay interest on these deposits. I am here to request a change of that policy. I have contacted some local water companies, and none of them has this policy. For example, the Public Service Commission handles over 100 water companies in Florida. They let each individual company decide what the deposit amount will be. However, they pay interest on the deposit, and it is returned after 23 months of good payment. If you pay late, you will not get your deposit back. If you pay on time, then you get it back with interest. Toho Water Authority ( Toho ) has a minimum of

9 Enterprise CDD November 7, 2018 Agenda Page 9 $100 deposit. It does not pay interest, but after 24 months of good payments, you get your deposit back. St. Cloud Water does a credit screening for all new residential customers to obtain a deposit recommendation. Their deposits do accrue interest, and it is refunded to the customer after 24 months of good payments. I also checked with Duke Energy, which is not a water company but rather an electric company. But it is a local utility. They pay 2% on their deposits that customers pay for service, and they are returned after 23 months of good payment. It is my understanding that Enterprise CDD does collect interest on a customer s deposit, and it uses that money for working capital. I do not know exactly what you use it for. I spoke to Mr. Moyer who indicated this is correct. If you live in Celebration for 20 years, the District will keep that deposit for 20 years and will earn money on it, but the customer gets nothing. This policy or practice of keeping customers deposits is not shared by other water utility companies in the area, and I would like it to be changed. I really do not think this is in the best interest of the customer. Mr. Moyer stated I had a discussion with Ms. Riley, and I understand her point. I will share what I conveyed in that discussion with her. First, I have been doing this for 45 years, and in my experience, the most vulnerable time for a utility is when the customer moves out of his house. He will move, and he will not pay the bill, leaving the District stuck with it, which means all customers have to cover that delinquency. I explained that I am not in favor of giving back deposits after 24 months. As public policy, the companies she referenced are governmental utilities; that practice is, quite simply, bad public policy. Why do they do it? They are political. We are not political. We try to run this as a good business operation. What we are trying to do is protect people like Ms. Riley from having to cover delinquent utility bills when someone leaves the community. The reason for the deposit being based on three times the average water bill is, under our current operating policies, we want to give people a period of time to bring their bills current. When you play that out over time, the bill is not delinquent until it is 30 days late, and then we send them notices for being shut off. When you run that process out, it is pretty much three months. The issue in my mind comes down to paying interest and the frequency of paying that interest. Ms. Riley contacted the Public Service Commission. They only regulate investor-owned utilities. They do not regulate government-owned utilities. 2

10 Enterprise CDD November 7, 2018 Agenda Page 10 Ms. Riley stated they regulate single-owner utilities. Mr. Harkness stated the Public Service Commission does not regulate any government-owned utility. Ms. Riley stated it is still a public utility. Mr. Moyer stated the difference is, an investor-owned utility makes profit. In that profit, they put things like deposits, interest, and things of that nature. From the Public Service Commission s standpoint, that investor-owned private utility is making money on the customers. A public-owned utility does not do that. We do not have investors. We do not write checks to stockholders. All that money stays within the utility system itself and ends up being used to pay the operating costs of the system and the principal and interest on the debt service payments. The bottom line is that it does not go to individual private owners. That is where I am coming from. The first and overriding concern is that we protect our existing user base from paying other people s bills. If the Board feels strongly that you want us to look at paying interest and the frequency of paying interest on the deposits, we will be glad to do that. Mr. Harkness stated I think paying interest is fairly common. The frequency is another question. I think once a month is too much because it would be administratively inefficient. If it was done on an annual basis, that might be fine. I am trying to see how often the County pays interest, which they pay as a credit on the bill. I think we need to probably look into paying back interest. I understand the deposit principle, but I fully understand Ms. Riley s position if someone has been here paying on time for 10 years. When a house sells is when the turmoil is, but maybe two years is not long enough. Mr. Stokes asked how much is the deposit? Ms. Riley stated it depends on the average bill. Mine was about $250. Mr. Harkness stated it is the equivalent of three months of bills. Ms. Riley asked how many of your accounts go delinquent? Mr. Moyer stated we can get that information. I do not know off the top of my head. At one time, it was more than you would expect. I was involved in trying to collect those non-payments, and it was more than one would think. Ms. Riley asked you still have that problem today? Mr. Moyer stated yes. Ms. Riley stated this District is still considered a government agency. 3

11 Enterprise CDD November 7, 2018 Agenda Page 11 Mr. Moyer stated that is correct. Ms. Riley asked do these accounts wait a few years before they go delinquent, or are they delinquent from the beginning? Mr. Moyer stated generally if they continue to be residents within our system, if they do not pay, we go through a fairly lengthy process of giving them the opportunity to pay, giving them notice of shut off, and leaving door hangers. We came up with this policy because we wanted to be overly generous to the customers in not taking advantage of them. Our ultimate control over people who are residing in Celebration is to turn off and lock the water. Ms. Fuentes stated it is a generous policy because other utility companies give you 30 days, and if you do not pay, they shut you off. They do not give you the same notice the District does. Ms. Riley asked how many months do you give them before you turn off the water? Mr. Moyer stated it is usually 30 days before we determine it is delinquent. After 30 days, we start sending letters and following a procedure, which probably takes another 30 or 45 days. By the time we actually get serious about this to the point where I send someone out to shut off the water, it is pretty close to three months. We were very liberal in trying to protect our customers, to give everyone the opportunity to pay before we turn the water off. If you would like us to look at that at this point, we can do that. We can start turning water off sooner. Two weeks after it is delinquent, we can send them a letter and then turn them off if they have not paid within 30 days. Mr. Stokes stated we can look at other communities similar to ours and see what their policy is. I appreciate Ms. Riley doing all her research. We can consider paying interest. Mr. Moyer stated if we can do that by a credit at the end of the year or other timeframe, that would probably be a fairly easy thing to do. Ms. Locher stated that sounds like a good balance. I tend to agree with Mr. Moyer that the deposits are instituted for a reason. It is not when times are good but when they have other expenses and things are going downhill. That is a much harder thing to collect, as well. Giving the interest as a credit at the end of the year might be a good thing to look into. Ms. Riley stated thank you; I appreciate it. 4

12 Enterprise CDD November 7, 2018 Agenda Page 12 FOURTH ORDER OF BUSINESS Administrative Matters A. Oath of Office for Supervisors Elected in the Landowners Election Mr. Moyer stated for the record, I am a Notary of the State of Florida, and as such, can administer oaths of office. Mr. Moyer administered the oath of office to Mr. Trace, Ms. Locher, and Mr. Harkness. Mr. Moyer stated I will provide the written oath to the Supervisors to sign, and I will notarize and make a part of these meeting minutes. Supervisors of this governmental unit are considered to be public officials of the State of Florida. As such, there are a couple key laws that govern the way we do business. One is the Sunshine Law, which simply means no two elected officials serving on the same Board can meet outside of a public meeting like this to discuss District business or to form a consensus of what this District will be doing in the future. All that has to take place at an advertised meeting like we are having today. The second is the Public Records Law, which means anything in your possession we provide to you agenda packages, s, other material is all public record. Anyone who wants to see it has a right to see it, and you need to provide it to them. You are not even permitted to ask them why they want to see it; you simply need to provide it to them. Generally, that function comes through my office as the manager. Seldom does it go to Supervisors of a District, but I have seen that happen in the past. s are considered to be public records. We will setup a separate account or you can setup your own. We recommend you do that so you do not comingle CDD information with your other personal or business information. If you ever have to turn that over, it is a matter of going to that address or that file and doing a file dump to turnover whatever you need to provide. Those are the cornerstones of local government in the State. Included in the package of information is a Form 1 disclosure, as well as a brochure on ethics for public officials in the State of Florida which describes a lot of the things I just mentioned. Welcome aboard. Mr. Trace is with Mattamy Homes, which is developing Island Village. We usually see Mr. Bennett Ruedas at our meetings, and Mr. Trace is part of that same operation. B. Consideration of Resolution Canvassing and Certifying the Results of the Landowners Election Mr. Moyer read Resolution into the record by title. Mr. Moyer stated the District held a landowners election yesterday; Seats 1, 3, and 5 were up for election. Mr. Trace received 155 votes, Mr. Harkness received 200 votes, and 5

13 Enterprise CDD November 7, 2018 Agenda Page 13 Ms. Locher received 200 votes. The reason for the differentiation is to determine the terms of office. The two seats receiving the highest number of votes will serve four-year terms, and the third will serve a two-year term. We will fill in the Resolution with the names, votes, and terms of office I just entered into the record. On MOTION by Mr. Stokes, seconded by Ms. Locher, with all in favor, unanimous approval was given to Resolution canvassing and certifying the results of the landowners election. C. Consideration of Resolution Designating Officers Mr. Moyer read Resolution into the record by title. Mr. Moyer stated you are required to have a Chairman, which is Mr. Todd Rimmer. Mr. Stokes currently serves as Vice Chairman. I serve as Secretary. Mr. Stephen Bloom, Mr. Bob Koncar, and Mr. Alan Baldwin are management and accounting employees of Inframark, which is the management company for the District. They will serve as Treasurer and Assistant Treasurers. Anyone else on the Board who is not otherwise an officer I recommend be an Assistant Secretary. If that organizational structure is acceptable to the Board, you can do that by motion of the Resolution. On MOTION by Ms. Locher, seconded by Mr. Harkness, with all in favor, unanimous approval was given to Resolution designating officers, as described. FIFTH ORDER OF BUSINESS Consent Agenda A. Approval of the Minutes of the August 15, 2018, Regular Meeting Mr. Moyer reviewed the minutes included in the agenda package which are available for public review in the District Office during normal business hours, and requested corrections, additions, or deletions. B. Check Register and Invoices Mr. Moyer reviewed the check register and invoices included in the agenda package and are available for public review in the District Office during normal business hours. On MOTION by Mr. Harkness, seconded by Ms. Locher, with all in favor, unanimous approval was given to the consent agenda, as presented. 6

14 Enterprise CDD November 7, 2018 Agenda Page 14 SIXTH ORDER OF BUSINESS Matters Pertaining to Engineering Services A. Ratification of Staff s Actions in Soliciting RFQs Mr. Moyer stated as you are aware, Atkins (formerly Post, Buckley, Schuh & Jernigan then PBSJ) has served as the District engineer since the District s inception in Lately, we have been experiencing some problems with responsiveness of Atkins, to the point where I think we kept the Celebration Residential Owners Association waiting a couple months to get approval of their plans to extend the civic corridor. I talked with Mr. Rimmer and told him it was my recommendation that Atkins is too busy and cannot provide the necessary time. Frankly, the key people we dealt with at Atkins are no longer there. Mr. John Classe is with Reedy Creek. Ms. Kathy Leo is with GAI. I will ask the Board ratify staff s actions in moving forward with requesting qualifications. GAI is one of the firms that provided their qualifications. Mr. Harkness asked when will this start? Mr. Moyer stated we are still under contract with Atkins. We will not issue to them the notice of termination until after the Board makes a decision on the ranking order of these qualifications and we negotiate a contract. As you are aware, another item later on the agenda is a proposal from Atkins to provide the hydraulic model update. Mr. Harkness stated I want them to finish that. Mr. Moyer stated yes. Mr. Stokes asked other than hydraulic modeling, is there anything pressing that might come up we would need to address? Mr. Harkness stated Mr. Raj Singh was working with staff and Toho on the large-user agreement. That is the only other issue I can think of. Atkins has the background of this issue. If we stop that process, then the next company will need to get up to speed pretty quickly. Mr. Moyer stated that is correct. If we find we need their services for that, we can retain them for it. Mr. Harkness stated we can have a separate agreement to have Mr. Singh on call for that issue. Mr. Walters stated this is for District engineering services. We have had ancillary services with other firms before, and we can certainly do that with Atkins for this. Mr. Harkness stated we may need to so that. 7

15 Enterprise CDD November 7, 2018 Agenda Page 15 Mr. Trace stated I did not receive a copy of the proposals, but I am looking at the evaluation criteria. Did Atkins not submit their qualifications? Mr. Moyer stated they did not submit. Mr. Trace asked so they chose not to participate. Mr. Harkness stated the request was published in the newspaper. Mr. Moyer stated yes, it was advertised in the newspaper, and we ed them as a courtesy a notice that we are going through this process. Mr. Harkness asked these are the only responses we received? Mr. Moyer stated that is correct. Mr. Trace stated they chose not to submit. Mr. Moyer stated that is correct. On MOTION by Mr. Harkness, seconded by Ms. Locher, with all in favor, unanimous approval was given to ratify staff s actions in soliciting RFQs for engineering services. B. Review and Ranking of Qualification Statements Mr. Moyer stated we provided the three proposals we received from engineering firms. I know Mr. Rimmer has reviewed these. I was hoping he would be here to provide his expertise in the review of these. This is more a personal opinion than a detailed study, but the person who probably has the most expertise besides Mr. Singh would be Ms. Leo. I do not want to reinvent the wheel. Mr. Stokes stated I agree. She has all the history, knowledge, and experience. She can bring all the forces to bear at GAI. I am totally comfortable with her. Mr. Harkness stated as a matter of full disclosure, GAI approached me about doing some part-time work with them. I told them if this comes about, then my work cannot involve anything related to Enterprise CDD or the Celebration community. I am totally out of the picture. Their primary interest was with RCID. Two of their staff came to talk with me and listed me as being part of their team. I want to let you know I have not signed anything with them, and I do not know that I will. I want to disclose that information, and it will not affect my decision on who is retained. Mr. Moyer stated worst-case scenario, if something did come up and Mr. Harkness was not comfortable with it, you would just disclose it as a conflict of interest. 8

16 Enterprise CDD November 7, 2018 Agenda Page 16 Mr. Stokes stated as long as GAI s rates are in line with what we have seen in the past. Mr. Moyer stated at this point in the process, we cannot ask for rates. It is just to evaluate their qualifications. After the Board makes your decision on the ranking, then I will negotiate a contract with their rates, and I will bring it back to the Board. Ms. Locher stated I have not worked with CPH, but I have worked with Poulos & Bennett for many years. They are very good. What makes GAI #1 is having Ms. Leo with her historical knowledge and ability to do things in a timely manner. Mr. Harkness stated I have worked with CPH a lot, and they are very good. They have a lot of depth. They do not have the background on Enterprise CDD itself, but CPH has great technical expertise. I know three-fourths of the staff. Mr. Moyer stated the process is to rank them #1, #2, and #3. Mr. Stokes asked has staff looked at this at all and have a recommendation? Mr. Harkness stated I am also interested in a recommendation from staff s point of view. Mr. Moyer stated I have not worked with CPH or Poulos & Bennett. I read through the material, but I have not worked with them and have no direct knowledge. In that case, I will defer to the Board members who have experience with them. My recommendation is to rank GAI #1. Mr. Harkness stated in my experience, I would rank CPH #2. I have also worked with Poulos & Bennett; they did some work for Disney. Ms. Locher stated having CPH s knowledge that they have worked on a lot of Reedy Creek projects gives them an advantage. I agree with Mr. Harkness. I would rank GAI #1, CPH #2, and Poulos & Bennett #3. Mr. Harkness stated I agree with that ranking. Mr. Trace asked who is the engineer for Celebration CDD? I realize that has nothing to do with this process. Mr. Moyer stated Hanson Walter & Associates. They were also familiar with this process. I was a little surprised they did not submit their qualifications, but part of the reason is they are not as strong in utilities. 9

17 Enterprise CDD November 7, 2018 Agenda Page 17 Mr. Harkness stated that is true. They deal more with land developers than utilities. They are primarily in the development business. They do some incidental utility work, but not like we need dealing with Toho and the treatment plant. On MOTION by Ms. Locher, seconded by Mr. Harkness, with all in favor, unanimous approval was given to rank the engineering firms as follows: GAI Consultants #1, CPH #2, and Poulos & Bennett #3. Mr. Walters stated we have a consulting agreement with GAI. Once we negotiate a final contract with them for District engineering services, we will terminate the consulting agreement. Mr. Harkness stated we would do both at the same time. Mr. Walters stated yes, it dovetails nicely because they are doing a lot of review of the Celebration Boulevard extension and the work going into Island Village. C. Authorization to Negotiate with the #1-Ranked Firm On MOTION by Ms. Locher, seconded by Mr. Harkness, with all in favor, unanimous approval was given to authorize staff to negotiate a contract with the #1-ranked firm GAI Consulting for engineering services. SEVENTH ORDER OF BUSINESS Staff Reports A. District Manager i. Financial Statements (September 30, 2018) Mr. Moyer reviewed the financial statements included in the agenda package, which are available for public review in the District Office during normal business hours. Mr. Moyer stated our fiscal year ended September 30, 2018, so the financial statements represent the total year s activity for the District. Under the general fund, in previous years under right-of-way fees, we had budged $65,000 but we actually received $275,000. The reason for that is Duke Energy had not billed some of their electric accounts. They performed an audit of that accounting, and the amount received is the result of that audit. They did the same thing with the Celebration CDD. We ended up $258,000 over what we anticipated receiving when we prepared the budget. Mr. Trace stated on agenda page 47, it shows we have $2 million in unassigned funds. Is that reserves? 10

18 Enterprise CDD November 7, 2018 Agenda Page 18 Mr. Moyer stated yes, it is in the general fund. We have a general fund, which revenues are derived from non-ad valorem assessments. We also have a utility fund an enterprise fund which revenues are derived from user fees, connection fees, and other utility-related fees. Based upon our audit, that is where we came up with $7 million for future utility line expansion. Mr. Harkness stated agenda page 46 shows fixed assets with $25 million in infrastructure and $11 million in depreciation. Is $25 million the original cost to install the utilities? Mr. Moyer stated yes. Mr. Harkness asked how have they been calculating depreciation? Is it straight line? Mr. Moyer stated it is basically straight line. They look at the property and determine if it has a 15-year life or 20 years or 25 years. Mr. Harkness stated mechanical items are usually 10 years. Infrastructure itself can be 20 or 25 years. Mr. Moyer stated that is correct. Mr. Harkness stated as long as there is a reasonable calculation. Mr. Trace stated it looks as though we have $1 million in utility deposits. Is that what Ms. Riley mentioned earlier? Mr. Moyer stated yes. Mr. Trace stated it looks like it earns between 0% and 1.5% interest. Mr. Moyer stated yes. Mr. Trace asked what is a capital lease fund? Mr. Moyer stated when Celebration CDD constructed this building, we did an analysis of the utilization of square footage within this building, whether it was Celebration CDD related or Enterprise CDD related. Because we were in such a strong position with the utility system and with the general fund position, we paid to Celebration CDD our share of this building that it cost to construct on a 50-year lease. Mr. Trace stated Celebration CDD built it, and Enterprise CDD pays its share. Mr. Moyer stated yes. ii. FEMA Update Mr. Moyer reviewed the FEMA update included in the agenda package, which is available for public review in the District Office during normal business hours. 11

19 Enterprise CDD November 7, 2018 Agenda Page 19 Mr. Moyer stated Ms. Brenda Burgess has been tracking our FEMA reimbursement request, with assistance from Ms. Fuentes and Mr. Simmons. We did not spend a lot of money due to Hurricane Irma, but what we did have was already filed with FEMA. It is working its way through the process. Those of you who have worked with FEMA in the past know this could be a multi-year endeavor; they do not act very quickly. We have at least made our application. Ms. Locher stated you will not get any money unless you submit for it. Mr. Harkness stated we are in the queue, so it needs to work through the queue. iii. Motion to Assign Fund Balance Mr. Moyer stated this is for the general fund, and we do this every year. By assigning these reserve funds from fund balance that we generate through the operations of the District, we are recommending to put this in the operating reserves. To the extent we need these funds for any other purpose, we can move that money simply by a motion from the Board. There is nothing special about the operating reserve account. On MOTION by Mr. Harkness, seconded by Ms. Locher, with all in favor, unanimous approval was given to assign fund balance, as presented. iv. Consideration of Resolution Amending the Budget for Fiscal Year 2018 Mr. Moyer read Resolution into the record by title. Mr. Moyer stated this Resolution reallocates some of the line items within our budget to areas in which we have expended more than we anticipated. In total, it is about $70,000, although you can see that we were well under the revenues we collected. In theory, we do not need to do this, but it is an accounting way of trying to true up the budget. On MOTION by Ms. Locher, seconded by Mr. Harkness, with all in favor, unanimous approval was given to Resolution amending the budget for fiscal year 2018, as presented. B. Field Operations i. Field Management Reports Mr. Simmons reviewed the field management reports included in the agenda package, which are available for public review in the District Office during normal business hours. 12

20 Enterprise CDD November 7, 2018 Agenda Page 20 ii. Consideration of Proposal for Underpass Landscaping Enhancements Mr. Simmons stated we previously provided proposals for the underpasses; the Board essentially agreed not to go with the other proposals costing about $150,000 for the medians and underpasses. We received four proposals from Yellowstone. It is for the west side of the overpass at Celebration Place, the median on Celebration Avenue, and the median on Celebration Place on the west side and the east side. This follows Mr. Tom MacCubbin s recommendation. As you can see in the pictures, this material has been here for 25 years, and it could use a facelift, especially on Celebration Avenue since it is the first thing you see when you come into town. better. Ms. Locher stated I agree. How has Yellowstone been doing? Mr. Simmons stated they are doing fine. I am having to push them a little. Ms. Locher asked as compared to what we had, are they better? Mr. Simmons stated they are a little better, and hopefully they will be doing a lot Mr. Stokes stated at least they respond to your coaching, which is good. Mr. Trace asked is this property owned by Enterprise CDD under the overpass? Mr. Simmons stated technically is it FDOT s right-of-way, but it is our responsibility to maintain it. Mr. Trace asked a lot of the other medians and areas are owned by Celebration CDD? Mr. Simmons stated everything north of S.R. 417 is Enterprise CDD, but we are not going to split it in half. Mr. Stokes asked do we have enough in the budget to cover this? Mr. Moyer stated yes. Mr. Stokes asked do you feel it is a reasonable cost? Ms. Locher stated pricing in Raleigh, North Carolina, is a little different, but I have never seen prices this low for this work. On MOTION by Ms. Locher, seconded by Mr. Harkness, with all in favor, unanimous approval was given to the proposals from Yellowstone Landscape: Celebration Avenue underpass north in the amount of $4,782; Celebration Avenue underpass sidewalk area in the amount of $2,760; Celebration Place overpass median in the amount of $4,385; and Celebration Place overpass wall area in the amount of $3,175, for a grand total of $15,102, as presented. 13

21 Enterprise CDD November 7, 2018 Agenda Page 21 iii. Consideration of Street Sweeping Scope Ms. Fuentes stated we requested proposals for street sweepers, as we discussed briefly at our last meeting. Mr. Moyer, Mr. Simmons, and I met with Facilities Pro- Sweep, who had the lowest price. We thought it was a reasonable price, but we provided all three for the Board s consideration. The service will be twice a month from October to April. From May through September, they will sweep once a month. Mr. Harkness asked is this the company Celebration CDD has hired? Ms. Fuentes stated yes. Mr. Moyer stated most people think the reason you sweep the streets is to get the leaves up, but the real reason is to keep pollutants out of the water management system. Mr. Stokes stated the contract term is for two years. Is the price per year or for the contract term? Ms. Fuentes stated it is an annual fee. Mr. Stokes stated so Facilities Pro-Sweep is $8,500 for two years. Mr. Harkness asked will the agreement have a termination provision? Ms. Fuentes stated yes, every agreement has the provision that we can terminate. I provided the agreement to Mr. Walters for his review. If the Board decides to award the contract to Facilities Pro-Sweep, we will get the contract executed. Ms. Locher asked have we budgeted monies for this service? Mr. Moyer stated yes. On MOTION by Mr. Harkness, seconded by Ms. Locher, with all in favor, unanimous approval was given to award a two-year contract to Facilities Pro-Sweep for street sweeping services in an annual amount of $4,256, and to execute said contract. iv. Consideration of Mosquito Control Contract Renewal Ms. Fuentes stated the agreement with Clarke Mosquito Control expired September 30, 2018, so we are on a month-to-month basis. If the Board decides to renew the contract, then Clarke Mosquito Control agrees to keep the price the same. Would the Board like to extend the contract, or would you like us to go out to bid? Mr. Stokes asked what is staff s recommendation? Mr. Moyer stated keep Clarke Mosquito Control. Ms. Fuentes stated they have been doing a great job. 14

22 Enterprise CDD November 7, 2018 Agenda Page 22 Mr. Stokes asked how long will the contract be extended? Ms. Fuentes stated two years with an optional two-year extension. Mr. Stokes what was the previous contract duration? Ms. Fuentes stated five years. It is the same for Celebration CDD. The original contract term was for two years, plus a two-year renewal and a one-year extension. Mr. Stokes stated so we could go four to five years. Mr. Harkness asked the agreement allows for the extension? Mr. Walters stated it provides for renewals upon terms mutually agreeable to the parties. Mr. Trace asked is this mosquito control for the whole community? Ms. Fuentes stated only for Enterprise CDD. They also have a separate agreement with Celebration CDD. Mr. Trace asked does the County give a rebate or something because we have our own mosquito control? Mr. Moyer stated they indicated a fair trade off is they would consult with us on what they were doing and try to help us on technical matters related to mosquito control. Mr. Trace stated we will provide a higher level of service than they will. Mr. Moyer stated yes. Mr. Harkness asked are the costs in line with what we have seen? Mr. Moyer stated they will keep the cost the same. Ms. Fuentes stated it will be no additional cost to the District. Mr. Stokes asked does it include a cost-of-living increase each year? Ms. Fuentes stated I asked that question, and they said the price would not change; it would stay the same. Mr. Stokes asked is this included in the budget? Mr. Moyer stated yes. On MOTION by Ms. Locher, seconded by Mr. Harkness, with all in favor, unanimous approval was given to award a contract to Clarke Mosquito Control for mosquito control services for a two-year term with an optional two-year renewal, at the current contract price. 15

23 Enterprise CDD November 7, 2018 Agenda Page 23 C. Utility Operations i. Utility Report (September 2018) Mr. Zlatic reviewed the utility report included in the agenda package, which is available for public review in the District Office during normal business hours. Mr. Zlatic stated we continue to repair many minor leaks on a weekly basis. The trend is starting to taper down, but it is elevated from months prior. Mr. Harkness asked what kind of leaks are they? Mr. Zlatic stated P-lines; they are on the small lines, before the meter up to the main line. They are not major leaks. Mr. Harkness asked what material are the P-lines? Mr. Zlatic stated polyethylene. They seem to be concentrated east and south right on the barricade. I can list the streets they are occurring on. It could be from the type of trailer that was used in the installation and construction of that area of Celebration. Mr. Moyer stated at one time, they had bad polyethylene pipe, and a lot of utilities got killed with it. Mr. Simmons stated it is usually on the potable lines, not the reuse lines. Mr. Zlatic stated that is correct; generally, it is the potable lines. The conversation can develop in more detail at some point. If we have to shut off the water for these repairs, it will affect other streets and homes. We side skirted that issue on a couple occasions because fortunately, it was a smaller leak, and we were able to isolate it with shut-off tools. It did not have a big impact. As we continue, I would like to develop a program of putting in isolation valves in appropriate places. water. money. Mr. Harkness stated that is fine, then you can make the repair without shutting off the Mr. Zlatic stated yes. Mr. Harkness stated you can use insertion valves, and it may well be worth the Mr. Zlatic stated we had a conversation with Mr. Moyer that we might be doing that if I have to go that route. We did not at the time, but we thought it would be a future conversation, especially once we get the engineers involved. Mr. Harkness stated it is more reasonable. Mr. Zlatic stated from a repair perspective, we did not have any major repairs of equipment in September or October. The lift stations have been running quite smoothly. 16

24 Enterprise CDD November 7, 2018 Agenda Page 24 Any repairs we had to do were done and brought to 100% operating capacity the same day. From a leak perspective, we have an increasing frequency of contractors hitting our main lines. On September 24, a contractor hit a potable line off Indigo at the Terraces. It was repaired the same day. The contractor was at fault, and they paid for the repair with no cost incurred to the District. In October, we had two. One was on a sewer line, and the other on a potable line. Both were due to contractors. The repairs for one were directly billed, so the District will not see those costs. The other one was subsequently paid, and we passed on our labor costs and the charges for the boil-water notices. The District will not be incurring any of those costs. Mr. Harkness asked were the lines marked? Mr. Zlatic stated yes, they were marked. Actually, the incident was front of the storage unit, where they reported a sewer backup. We responded, and in the process of investigating, we found quite obvious impact damage to our sewer main, a 10-inch line, with a bucket in front of it and a crack in the pipe. It was very obvious when they were excavating to put in their connection to the gravity sewer that their backhoe operator noticed it and tried to cover it up. I took pictures, and it is well documented. The contractor onsite saw it and did not say anything except to acknowledge it was their fault. They took ownership of the problem, and the costs were passed through to them. Mr. Simmons stated these minor repairs, even though it is a one-inch P-line, are very expensive to fix. It is usually between the sidewalk and the curb, but the tree roots are 10 to 20 years old. I do not see how we can use a backhoe to make those repairs, but in that reality, the company that is coming out also brings a machine and loads up a trailer with dirt which we are providing to keep the costs down. We would like to do the calculations to see if we can have a backhoe onsite the whole time to see if it would be cheaper. I am thinking it would be, and then we can share some of that cost with Celebration CDD for issues they have that will require a backhoe. It might be better to buy a trailer, too, so they can bring their truck, and we will have the other equipment onsite they will not need to charge us for. We are getting charged $900 or so just for the trailer and the backhoe. Mr. Zlatic stated we are trying to coordinate it so when they do come in, they can address three or four issues, but that does not always work if one is more complicated. The repairs are on the edge of the concrete curb where we are cutting concrete. We have to choose between digging it by hand or bringing out a backhoe. Lately, with some of 17

25 Enterprise CDD November 7, 2018 Agenda Page 25 these leaks that have been leaking for a while, the soil is saturated, and then we also find other things during the repairs. Mr. Trace asked what is the approximate cost for one of these repairs? Mr. Zlatic stated about $2,000. Mr. Trace asked about half that cost is the equipment rental? Mr. Zlatic stated yes. Mr. Trace asked do you keep track of what services are repaired or if it is a systemic issue? Mr. Zlatic stated yes, we have been trying to formulate a pattern. In terms of the meters, they are all the same meters, so that is really no pattern. Some areas have older meters that are failing in the same way; the backflow seems to be failing. Residents will call us when they have no flow, and that has become a predictable pattern. When we replace the backflow, we are replacing them with new meters and new backflows. Mr. Trace asked is the backflow the District s responsibility? Mr. Zlatic stated yes. Mr. Trace asked where does the District stop service: after the backflow? Mr. Zlatic stated yes, from the curb stop to the backflow. Mr. Harkness stated we stop on the customer side of the meter, and the backflow is right there. Mr. Zlatic stated it gets tricky with customers who have pressure-relief valves, which is another source of failure. When they call and say they have no water, we walk up to that point and tell them they are fine up to that point. We show them and explain where their responsibility starts. Mr. Harkness asked does the District require backflows to be inspected annually? Mr. Zlatic stated I will need to get back with you on that. If it is a double-check backflow, yes, but we are migrating away from that. AWWA has a single-check valve that is approved for inground use. Those do not need to be checked annually, but it is tough to get to them. I do not know the rules on the pressure-relief valves. Mr. Stokes stated related to the backhoe, we will ask staff to put some numbers together for the cost to purchase or lease or whatever. Mr. Trace asked do you call the same people for the repairs? 18

26 Enterprise CDD November 7, 2018 Agenda Page 26 Mr. Simmons stated yes. Occasionally one out of 25 times we will use someone else because this company could not get here or the other company is already onsite doing something. Mr. Zlatic stated they are the most responsive companies, and they have a better price comparison, as well. Florida Septic is the company we use. They may go by another name, too. We use other companies, but they are usually the fastest and most economical. Mr. Harkness asked if the District bought a backhoe, would we have an issue with a private firm using it? Is the intent for the contractor to use our backhoe? Mr. Simmons stated it is more for doing the digging and hauling the wet dirt. Right now, we are dumping it in the swamp here, and they are providing dry dirt and hauling it on the trailer. Mr. Zlatic stated they also unload it from the trailer to the dumpster. Mr. Stokes asked would Inframark staff operate the backhoe? Mr. Simmons stated I do not have a problem with them operating it. Mr. Harkness stated we would have to work something out where they would release any liability for using our equipment. I do not want us to get sued if their operator fell off the backhoe or something. Mr. Walters stated I would like to review the underlying agreement. If we have an ongoing services agreement, it might be covered. If not, we can add an addendum to it. Mr. Zlatic stated I do not believe we have an ongoing services agreement with them. Mr. Harkness stated it can be an on-call services agreement. Mr. Zlatic asked do I need to request that, or will it come from the District? Mr. Walters stated I would rather it come from the District, especially if we are going to have an equipment issue. I will coordinate something. Mr. Trace stated the report shows 652 customer service calls out of 2,700 bills, which is 25% of the customers. I have lived in my house nine years, and I have not called once. Mr. Zlatic stated the calls seem to be focused toward customer service. I do not think that is a spike in calls because an earlier report had 900 calls. I think it is pretty consistent. Ms. Locher stated people like to call the office, and the staff is fabulous. It is your very typical small town. It is calls for anything. We had this discussion before, thinking it was really high. We realized it is normal. 19

27 Enterprise CDD November 7, 2018 Agenda Page 27 Ms. Fuentes stated it includes simple calls for customers wanting to know their account balance or if they can pay two days after the due date. Ms. Locher stated the online billing system recently changed, so a lot of people will call about that. Mr. Zlatic stated those letters just went out regarding the change. Ms. Fuentes stated it was effective on Monday, and they are still in the process of the transition. They are getting questions about how it is different from the previous system. Mr. Trace asked the odor issue at the lift station by Arby s, is that a Toho lift station or the District s? Mr. Zlatic stated it is Toho s lift station. They have officially started construction and relocated the old unit to its temporary location and replumbed it. To be honest, it was an eyesore, but it is fenced off pretty well. Over the next weeks, we will see a new unit erected and a secondary scrubber off the corner, and the old one temporarily placed there will eventually be moved offsite. Staff and others have noticed it smells quite a bit less already even though work is not complete. They just replumbed it and provided a new water supply. It is something we will monitor going forward. I mentioned my concerns on their plans and the configurations that were proposed by Toho s engineers with this water control unit. It went through Atkins who provided their comments and concerns. At this point, we have no interferences with our utilities. The only issue that came up is, we have a buried bypass line that runs on the western side of the perimeter fence. We asked them to locate a new concrete pad with a three-foot clearance on all sides. Mr. Harkness stated I see we are still having a problem with non-flushable materials. Mr. Zlatic stated yes, there is no change for this month. Yesterday, one of the pumps cracked. We responded to a vibrating noise and escalating amperages. We pulled the pump to see why it failed. It is a warranty issue we will be pursuing. The good news is, one of the old pumps is identical and is a spare for parts. The older pumps have a slightly shaved propeller, which gives more clearance space, and the new pumps have zero tolerance. We will observe what happens over the next week to see if the issue continues on which pump. If it is not an issue as it was not in the past, then we will pursue shaving the propeller and will run it going forward. There are some problems with the pump vibrations because of the type of pump we have; they are very tall and top heavy. They tend to vibrate, which carries noise upward and also has a tendency for the pump to rotate 20