GATEWAY SERVICES COMMUNITY DEVELOPMENT DISTRICT

Transcription

1 Minutes of Meeting The regular meeting of the Board of Supervisors of the Gateway Services Community Development District was held on Thursday, at 4:00 p.m. at the Gateway Services CDD Offices Meeting Room, located at Griffin Dr., Ft. Myers, Florida CALL TO ORDERIROLL CALL Mr. Lamb called the regular meeting of the Board of Supervisors of the Gateway Services Community Development District to order on Thursday, at 4:05 p.m. Board Members Present and Constituting a Quorum: Peter Doragh Chairman Robert Nielson Vice Chairman Patty Gedra Supervisor Staff Members Present: Brian Lamb Tony Pires Bill Knight Andy Tilton Audience Members Present: Philip Burnett David Caldwell Delores Linscott Ed Tinkle Various Residents District Manager, District Management Services, LLC District Counsel, Woodward, Pires & Lombardo, P.A. District Operations Manager, GSCDD District Engineer, Johnson Engineering, Inc. Representative, Philip L. Burnett, P.A. Representative, WCI Communities Resident President, Gateway Country Club 2. BUSINESS ITEMS 1. Update on WCI Communities Mr. Doragh stated that WCI Communities filed for bankruptcy earlier that week. He stated that the Board had anticipated that it was a possibility at the last meeting and asked District Counsel to locate bankruptcy counsel for the District to retain so that their questions throughout this process could be answered. Mr. Doragh stated that they were able to locate a proposed bankruptcy counsel that can provide the Board with advice throughout the process. Mr. Pires introduced Philip Burnett, Esquire to the Board and stated that the proposed non-refundable retainer would be $5,000 and the hourly rate would be $300. Mr. Burnett provided the Board with a brief overview of his history and the services that he would provide for the District.

2 Page 2 Authorize the Chainnan to execute the retainer agreement with Philip Burnett, P.A. as Bankruptcy Counsel with a $5,000 non-refundable retainer and an hourly rate of $300. Mr. Doragh briefly reviewed the rules and procedures for public participation during the Board of Supervisors meeting. 3. APPROVAL OF CONSENT AGENDA ITEMS CONSENT AGENDA ITEMS A. Approval of June 19,2008 and July 10,2008 Meeting Minutes (Tab 1) B. Approval of Operations and Maintenance Expenditures, August 2008 (Tab 2) C. Approval of Enterprise Fund Expenditures, August 2008 (Tab 3) Approve the Consent Agenda Items: Meeting Minutes from June 19, 2008 and July 10, 2008; Operations and Maintenance Expenditures for August 2008 ($328,134.63); Enterprise Fund Expenditures, August 2008 ($153,120.71). 4. ITEMS FOR DISCUSSION A. Fiscal Year 2009 Budget Mr. Lamb stated that the assessment revenues are collected using two methods - Operations and Maintenance assessments and debt service fees are collected via the tax roll. Mr. Lamb stated that Enterprise funds are collected via bi-monthly utility billing. He stated that the total assessments collected through the tax roll for Fiscal Year 2008 were $3,534,678 and is proposed to be $3,689,982 for Fiscal Year Mr. Lamb stated that the Enterprise fund projected to collect $3,223,805 for Fiscal Year 2008 and is projecting to collect $2,896,556 for Fiscal Year He stated that assessments collected through the tax roll are based on Equivalent Residential Units ("ERUs"). Mr. Lamb stated that platted lots and gross acres (not intended for commercial use) are given a weight of 1 ERU per unit/acre. He stated that commercial square footage or gross acres planned for commercial are assessed a weighted factor of 5.8 that is multiplied by the assessable acres.

3 Page 3 Mr. Lamb presented an overview of the Fiscal Year 2009 Proposed Operating Budget. Discussion ensued regarding the effect that WCI Communities filing for bankruptcy will have on the debt service assessments. Mr. Caldwell stated that when the Board adopted the Amended Engineer's Report earlier this year it had a significant refunding and deduction to the construction fund. He stated that all of those funds have been sitting in a reserve account because they are waiting for the date of when bonds can be paid. Mr. Caldwell stated that the District already has the funds to payoff the B Bonds in their entirety. Mr. Lamb reviewed the proposed Fiscal Year 2009 Assessments without the termination of the agreement with Pelican Preserve and with the termination of the agreement with Pelican Preserve. Mr. Lamb stated that Staff has received a copy of the Pelican Preserve HOA budget and have utilized the numbers to come up with estimations for the District to takeover the maintenance of those facilities that were assigned to the HOA for maintenance. He reviewed the budget without the additional costs for the Pelican Preserve and the budget with the additional costs. B. Update on Pelican Preserve Assessments Mr. Caldwell recommended that Staff meet with Wayne who is the property manager for Pelican Preserve to discuss the budget and any questions they may have. He stated that there are provisions under the agreement that the District needs to abide by including notice provisions. Mr. Caldwell stated that the District has not informed WCI Communities of what their intentions are. C. Update on Pipeline Project Mr. Caldwell stated that WCI Communities has been working with Staff and the contractor Mitchell & Stark on an assignment of the contract. He stated that prior to WCI Communities filing for Chapter 11 bankruptcy there were issues relative to about 40% of the waterline was installed several years ago and the District owes WCI Communities a substantial amount of money for it. Mr. Caldwell stated that the Mitchell & Stark contract only covers new work and new materials that have been stored on site. He stated that it does not cover the materials that have been stored on site for two years and they have found that there is a shortage of pipe and a need for more pipes to be ordered. Mr. Caldwell stated that all these issues need to be sorted out between the parties or they don't have an agreement. He stated that if Staff was looking to present an agreement today it is not feasible. Mr. Caldwell stated that he does not know how these kinds of agreements are affected by the current filing of Chapter 11 bankruptcy. Mr. Caldwell stated that hopefully they can have a signed agreement and proceed with the work shortly but right now there are too many loose ends. Mr. Doragh stated that the reason that WCI Communities has not received any notification is because the District has no plan at this time but they have reached the conclusion that as they got closer to the deadline with WCI Communities and the situation was not resolving itself that in the course of the budget process and from a budgeting point of view look at what would be necessary if the District had to take over the funding of those services. He stated that the District has several options. Mr. Doragh stated that the budget could remain as is and nothing changes. He stated that the District could assess based on the idea that they are going to use the assessment methodology to collect the revenue but they modify the existing agreement so that the only change is how the revenue is collected and the service delivery model doesn't change. Mr. Doragh stated that the third option would be a complete termination of the agreement, the District collects the revenues, obtain and pay vendors, etc.

4 Page 4 Mr. Pires stated that one of the issues that complicate this matter is that at the last meeting the Board was trying to convey a written assessment notice as required by Florida Statutes in the event that the Board decides to terminate the agreement based upon some concern about WCI Communities having a funding deficit with Pelican Preserve. He stated that the Pelican Preserve Homeowners Association is not listed as one of the affiliates or subsidiaries of the debtor in the bankruptcy petition. Mr. Pires stated that WCI Communities asked the court for the authorization to use certain cash that it has available to help pay for association obligations, golf course obligations, and other amenity obligations. He stated that in the bankruptcy filing WCI Communities asked for authority to pay up to $4,700,000 but the court only authorized $3,600,000. Mr. Pires stated that the District does not appear to be hampered in its ability to modify or terminate the agreement because the parties to the agreement are not the debtor or an affiliate or subsidiary of the debtor in the filings. He stated that the debtor is the primary landowners that property would be assessed to help pay for the operation and maintenance costs under the agreement. Mr. Caldwell stated that within Pelican Preserve there are two levels of assessments done under the Master Association. He stated that there are facilities that are outside of the gated community that are all commercial properties and they are part of the general assessment number. Mr. Caldwell stated that the costs related to the services inside the gate including all the landscaping, security, and street lighting is not apportioned to the commercial properties outside of the gate. Mr. Lamb stated that the District is under the understanding that there are described as completed offsite improvements at Pelican Preserve that the District will be purchasing under the process. Mr. Caldwell stated that when the Board considered an Amended Engineer's Report earlier this year there was some remaining construction items to complete. He stated that one of the specific items is a right hand tum lane on Tree Line Avenue for the northbound lane and it has been designed, engineered, and permitted and was ready for construction approximately a week ago. Mr. Caldwell stated that he suggested to Mr. Lamb that they assign those plans to the District and the District move forward with the bid out and construction of the tum lane. He stated that normally WCI Communities would have built the improvements and would have sought reimbursement from the District a year later. Mr. Caldwell stated that the other item identified in the Amended Engineer's Report was golf cart signage to allow proper DOT signage that would warn travelers in the roadways that there are golf cart that travel on the roadways. He stated that it has been engineered, permitted and is ready for construction and have a bid from a contractor for approximately $11,000. Mr. Caldwell stated that they could assign these plans to the District also. Mr. Pires stated that the Board could authorize the contract to be entered into subject to review by Mr. Lamb and Mr. Knight. Authorize Staff to prepare the necessary documents to assign the contracts to the District, obtain the execution of the Chairman as appropriate, obtain whatever bids are appropriate, and bring back before the Board for ratification both projects as presented.

5 GATEWAY SERVICES COMMUNITY DEVEWPMENT DISTRICT August PageS D. September/October Newsletter Discussion Mr. Knight asked the Board if there were any specific items that they would like to see included in the September/October newsletter. Ms. Gedra suggested that they include an item regarding the Adopt a Road program in the newsletter. Mr. Doragh suggested that they include an item regarding WCI Communities filing for bankruptcy and what the District is doing about it. He asked when the September/October newsletter would be sent out. Mr. Knight stated that it is anticipated that the newsletter will be sent out the week of September 15th. Mr. Doragh suggested that they include more information regarding hurricane season in the newsletter. 5. STAFF REPORTS A. District Counsel No further report. B. Operations Manager Mr. Knight reviewed the plant replacement program for the Board. General discussion ensued regarding the kind of landscaping the Board would like to see and the existing landscape. Mr. Knight stated that the 2008 landscape plant replacement program was budgeted at $150,000. He stated that they are on target to spend the $150,000. Mr. Knight reviewed the projected plant replacement costs. He stated that once they complete the major landscape replacement this year, they should be able to go back to budgeting $50,000 per year for landscape improvements. C. District Manager 1. Financial Statements Ending June 30, 2008 and Summary Analysis (Tab 4) and Summary Financial Ending June 30, 2008 (Tab 5) Mr. Lamb reviewed the unaudited statement of revenue of expenditures from October 1, 2007 through June 30, General discussion ensued. Approve Financial Statements Ending June 30, 2008 and Summary Analysis and Summary Financial Ending June 30,2008. D. District Engineer No report. E. Committees No report.

6 GA TEW A Y SERVICES COMMUNITY DEVELOPMENT DISTRICT Page 6 6. SUPERVISOR REQUESTS AND AUDIENCE COMMENTS Mr. Doragh asked if there were any audience comments. Ms. Linscott stated that they had a homeowner complaint about the dam on Gateway Boulevard being full of pepper trees and mangles so they cleared it out. She stated that they are going to plant five flower trees and bring sod up to the bank. Ms. Linscott stated that they are requesting permission for Mr. Knight to put rip-rap or stones around the bank to make it more aesthetically pleasing. She stated that they would also like to request the installation of a fountain with lights in the pond near the 9 th hole. Ms. Linscott asked if they spent the money to purchase the fountain if the CDD would pay the maintenance. Mr. Doragh stated that if the neighbors were okay with it he supported it but that it was a Board decision. Mr. Tinkle asked questions regarding the operating budget and the ERU's. Mr. Doragh asked if there were any Supervisor requests. Mr. Nielson asked questions regarding the Gateway Gazette from August 3, He stated that there are comments reflecting "the Gateway Board of Supervisors has made no progress with the Christian Soccer Association (CSA) in their contract negotiations to use the field". Mr. Nielson stated that it is not his understanding that there has not been any progress. Mr. Knight stated that he has meet with two representatives of the CSA and there has been progress. Further discussion ensued regarding the status of the agreement with the CSA. Mr. Nielson asked questions regarding the fees for the upcoming flag football league season and the proposed dog park in the Gateway soccer complex. He stated that he will prepare a memo for the next meeting stating his opinion regarding the CSA agreement. Mr. Doragh stated that Lennar still has a sign in the District's right of way on Gateway Boulevard that needs to be removed. 7, TASK REVIEW Mr. Lamb briefly reviewed the items for follow-up. General discussion ensued. 8. ADJOURNMENT Chairman Doragh, with unanimous consensus of the Board, adjourned the meeting. *These minutes were done in summary format. *Each person who decides to appeal any decision made by the Board with respect to any matter considered at the meeting is advised that person may need to ensure that a verbatim record of the proceedings is made, including the testimony ~nd evidence upon which such appeal is to be based.

7 Page? Meeting minutes were approved at a meeting by vote of the Board of Supervisors at a meeting held on q - y.o"j bjiciy noticed Printed Name Title: t,(chairman o Vice Chairman Printed Name Title:!isecretary o Assistant Secretary 'O~ Servic,,'" e", ~ (l (j Established May 22 '6 SEAL 1986 Signature q I ij-b(()~ Date "