Minutes for June 6, 2005
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DRAFT
Chairman Bruce Bolon called the meeting to order at 7:00 p.m.
Mr. Bolon requested a moment of silent prayer. Amen
Mr. Bolon led the Pledge of Allegiance.
Ms. Weglein called the roll. All Trustees were present. No legal counsel was required.
Mr. Hunt explained the Board asked staff to come back with a capital budget recommendation. Management identified 22 capital improvement projects totaling approximately $2.8 million. The Board of Trustees prioritized 5 of those projects as “urgent” totaling about $1 million and to be completed in 3 to 5 years. The District’s share of the 5 projects the Board has identified as urgent is $1,155,000. They consist of the seawall, Pool 1, the pier (which is predominantly a Federal project), the golf course maintenance barn, and ADA compliance. There are 3 recommended options.
The first is a $6.50 increase in the monthly maintenance fees. That
will fund the ADA compliance, the golf course, the pool, the pier, and the seawall over 4
years. To make this work, the District will need another $2.59 in year four. [Reference:
Addendum 1A]
With this option, a minimal amount is placed in the hurricane reserve. Pool 1 construction would begin in January 2007. This will be coordinated with the seawall engineering. Access is limited to vote by the Board. The rules for a special revenue fund per GASB 34 have been implemented.
The second is the $9.00 increase over 4 years. [Reference: Addendum 1B] It will fund ADA, the golf course, the maintenance facility, the pier, the seawall, and Pool 1 in 3 years. The loan is less, the income is more, there is no need for a $2.59 increase in year 4. This option allows construction to start earlier on the seawall and Pool 1. $237,696 goes into the hurricane reserve.
The third option is an increase of $18.00. [Reference: Addendum 1C] This option allows the District to fund the entire capital improvements program within 5 years, and removes necessity for further increases until 2010-2011. In this option, staff recommends hiring a Clerk of the Works because 22 projects in 5 years requires full time oversight. $356, 544 goes into the hurricane reserve.
A capital spending account has been proposed. Expenditures from this account require prior approval by the Board. Unexpended funds automatically roll over into next year’s capital projects budget, reassuring residents and the Board that capital funds are spent on capital projects. The account complies with the auditors’ comments for the 2004 audit with regards to capital spending. At the June 20th Charter meeting, the emergency contingency account that will raise revenue for hurricanes, tornadoes, fire, and emergency building will be assessed. A one-time or reoccurring annual assessment or reoccurring monthly increase until the threshold is met can fund it.
Mr. Glashauser asked if the “no increase” held for operations as well as the contingency fund. Mr. Hunt responded that $1.25 would transfer to the operations budget each year. This is accounted for in the fund expenditures. There would be no increase in the monthly maintenance fees for 6 years. Mr. Bleau commented that the $18.00 option did not include Pool 4 in the amount of $750,000. Mr. Hunt responded that in 4 years the District would collect approximately $4.7 million dollars. That amount includes Pool 4 . The $18.00 option includes all the projects on the priority list. Mr. Nunez asked about projects that are not on the list, such as the tennis courts, the Lounge, and other things “that might happen during that period of time”. Mr. Hunt responded there was approximately $400,000 built into the program for “wiggle room” because priorities may not remain the same for 5 years.
Jeanne Osborne commented she is in favor of the $9.00 option, with $1.00 for the Stormwater water fund, so the increase totals $10.00. Ms. Osborne proposed using the COLA for annual increases. She urged the Board not to transfer any of the special funds monies into the General Fund. Mr. Hunt responded the fund was set up in a separate bank account requiring a Board resolution to withdraw money.
Roland Boas asked what the District’s cash position would be on September 30th, 2005. Mr. Hunt responded the District’s cash position is $2.2 million dollars. However, a cash position isn’t identical to a budgeted position. $897,000 of the $2.2 million is debt service reserve which, by bond covenant, the District cannot spend until 2026. $558,000 is in the Shopping Center fund and can be spent only on Shopping Center related expenses. $180,000 in the Stormwater fund is obligated to the weir project. $342,000 is budgeted this year in the Recreation fund. As of September 30, 2004 the District had $337,000 left in the fund. Technically, the District budgeted $5,000 more than there is in that account. Mr. Hunt assured the Board he was doing his best not to spend the “lion’s share” of that money.
Bob Armbruster addressed concerns that resources be maximized. He said that in the RV lots some vehicles utilize 2 spots. Mr. Armbruster asked Mr. Hunt to explain the parenthetical number in the $18.00 proposal. Mr. Hunt responded that in each of the 3 proposals the $1.00 extra is for operations. The “Clerk of the Works” is also addressed in the $18.00 proposal. Mr. Hunt budgeted an extra $40,000 for the Lounge next year. The final plans for the RV lot are not in yet. The impact fee for new homeowners has been raised from $319.00 to $495.00.
Sue McCahan questioned the $7.50 increase option. Mr.
Hunt responded this option requires a $2.59 a month increase for capital alone in
2008-2009. Ms. McCahan asked why, with the $8 and the $10 options, the District
wouldn’t raise the assessment fee $1.00 annually to collect revenue incrementally to
fund the projects. Mr. Hunt responded the
incremental method produces about $60,000 a year. By collecting needed revenues up front,
the capital program will cost less because the projects are done sooner.
Ms. Weglein commented that Holiday Park is a special district with amenities like ours whose residents pay $460 a month. Lakewood Village residents who own their property pay $145 a month; rental residents pay $300.00 and up.
Bill Sandt encouraged the Board to accept the $18.00 option as a potential bargain for repairing 30-year-old facilities.
Nancy Eisele commented on the fees other parks pay. Ms. Weglein responded the other parks receive some of their money back in ad valorem tax breaks from the County. Mr. Bolon commented the District could have done that, but it would cost too much to have the County administer the same services that staff does. Ms. Eisele requested that the public at Board meetings receive a copy of the financials. Mr. Hunt responded this should be feasible by the next meeting. Ms. Eisele urged accountability.
Mr. Bleau asked if the financials were being run on the new computer server. Mr. Hunt responded that the problems were glitches in the IMS software. Mr. Morgan and Mr. Hunt are running the “repaired” program this evening.
Min Bolon addressed a concern regarding cost overruns. Mr. Hunt responded the budget has $291,000 in it for that purpose. Ms. Bolon asked if those funds could be used in the contingency fund in case of hurricanes. Ms. Bolon concurred with the $18.00 increase. She is not in favor of swim stickers, but suggested guest passes could be $2.00 for one week rather than two weeks. Ms. Bolon feels that renters’ fees should be looked into.
Louise Crouse asked for accountability. Mr. Hunt replied the various funds were set up so money could be spent only as the Board designates, usually at the end of a bid process for a specific contract. Money for the Lounge and Building D&E that was designated in Fiscal year 2004 is part of the $337,000 currently in the special revenue fund. The fund balance is normally used for capital projects. The Board committed $40,000 yearly for the golf course. Money saved with insurance and FEMA is remaining in that fund balance. $168,000 can be spent. The District received a FEMA check in the amount of $70,000 last week. This reimburses what the District paid to clean out the canals after the hurricanes.
Valerie Burch concurred with hiring a Clerk of the Works for the capital projects construction. She is a certified project manager.
Gary Gadsden concurred with the $18.00 option. Mr. Gadsden offered his services as a volunteer to help the Clerk of the Works when construction starts. He maintains many residents in the Bay have construction experience and could help out much as the volunteers on the Code permit board do. Mr. Bolon asked Mr. Hunt to look into a construction oversight volunteer committee. Mr. Bolon commented there is a clause in the Charter that says use volunteers whenever possible.
Shirley Vince was generally dissatisfied with the Board’s performance. Mr. Bolon concurred that the Board needs to budget, vote, and get going with real construction. Mr. Carillion commented it has happened that previous Boards voted a certain way, then a new Board came on and swept it all away. Members that carried over from a previous Board are not responsible for that. How will this Board ensure that does not happen with monies allocated in this budget when a new Board is voted in? Mr. Hunt replied the Board has flexibility up until it passes a resolution appropriating money for a contract that has been approved. Mr. Carillion feels that the $10.00 option is fairest.
Mr. Helmerich objects to the county lowering water behind the weirs without notifying the District. Lowering the water below 17.5 feet dries up the canals. Mr. Bolon asked that the item be put on the agenda for the Board meeting on Friday, June 10th.
Mr. Bolon commented if the District is going to become ADA compliant, changing the site plans of the buildings, it may cost a good deal more money than anticipated. The seawall is a case in point where there may be more hidden than is showing. The contingency money will need to be available. Mr. Bailey urged the Board to consider the seawall first. Mr. Smith expressed his displeasure with Building A, saying it can be used for very little. Mr. Bleau commented RV storage should be raised another $10.00. Mr. Bleau asked if the “$45 per month” reference should read “$46 per month”. Mr. Hunt replied that the extra dollar is accounted for in the Stormwater fund. Mr. Bleau commented on the Golf sponsor signs for $250 each. Mr. Hunt responded they are proposed for next year. Mr. Bleau commented on the FPL increase. Mr. Hunt responded the increase in the utilities budget applies to lighting in the complex. Mr. Bleau asked about the Code Enforcement director’s salary. Mr. Hunt responded the salary would be the same as the former director received, $25,000 per year.
Mr. Carillion asked if the ARCC were included in the expenses shown for Code Enforcement. Mr. Hunt replied they were. ARCC does not come under Administration. Mr. Bleau asked what the salary would be for the proposed Food and Beverage director. Mr. Hunt responded it would be about $35,000, and explained the person would be a working director. Mr. Hunt commented about 70 applications had been received, some of them residents of the Bay. Mr. Bleau commented on the A/C in the 19th Hole kitchen, saying the building is only 2 years old and the existing A/C should be sufficient. He commented general maintenance was budgeted at $15,000 for all buildings, whereas in the Shopping Center, the budget is $1,064 a month for only 3 buildings. Mr. Bleau asked if the District was to be reimbursed for the greenhouse. Mr. Hunt responded the District would be reimbursed, and it had not been determined if the work would be done in-house.
Joan Barbuscio concurred with the $18.00 option. She urged the Board to accountability.
Jim Hayes objects to hiring an outsider to run the Food and Beverage operation. He suggested putting a deck on the 19th Hole and keeping it open longer hours. Ms. Weglein concurs that any jobs available at any level should be posted on the Building A board for sufficient time to give residents a clear shot at responding.
Sue McCahan commented it was mentioned in several public meetings the District was looking for a Food and Beverage director. Mr. Glashauser concurred that the subject was discussed. Ms. McCahan said she wanted to make sure the public understands it was discussed publicly, and several times.
Mr. Bolon reminded the audience of the regular Board meeting on Friday, June 10th, the public hearing on the budget June 13th, and the Charter meeting on June 20th.
Mr. Bolon adjourned the meeting at 9:05 p.m.
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