SUN N LAKE OF SEBRING IMPROVEMENT DISTRICT BOARD OF SUPERVISORS REGULAR MEETING Friday, October 26, 2018 MINUTES
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1 SUN N LAKE OF SEBRING IMPROVEMENT DISTRICT BOARD OF SUPERVISORS REGULAR MEETING Friday, October 26, 2018 MINUTES The Regular meeting of the Board of Supervisors of Sun n Lake of Sebring Improvement District was held Friday, October 26, 2018, at the Community Center, 3500 Edgewater Drive, Sebring, FL The meeting was called to order at 9:00 a.m. by President Camp. SUPERVISORS PRESENT: Mr. Mark Camp, President Mr. Joseph Branson, Vice-President Mr. Michael Gilpin Mr. William Stegall Mr. Raymond Brooks The General Manager, Tanya Cannady; Board Secretary, Chrissy Hardman; Omar DeJesus, Finance Director; Ariel Starling, Community Services Director; Michael Hurley, Facilities & Security Director; Cliff Easum, Billy Casper Golf and District Attorney, David Schumacher were present; there were approximately 22 people in attendance. 1. Call to order-9:00 a.m. 2. Pledge of Allegiance 3. Announcements: a. Next regular meeting is scheduled for Friday, November 9, 2018, at 9:00 a.m. at the Community Center, 3500 Edgewater Drive, Sebring, FL b. Please silence or turn off your cell phones. 1
2 4. Consent Agenda Minutes of the Board of Supervisors Regular meeting held Friday, October 12, Supervisor Gilpin moved to approve, Supervisor Stegall provided the second. With no board or public comment, the motion was put to board vote. Roll Call: Supervisor Stegall- Y; Supervisor Branson- Y; Supervisor Brooks- Y; Supervisor Gilpin- Y; President Camp- Y With a vote of 5-0, the motion to approve the Consent Agenda passes. 5. Action Agenda a. Resolution No /26-43: A resolution of the Sun n Lake of Sebring Improvement District to approve agreement with Polston Engineering for Architectural services related to remodeling the Clubhouse lanai. Supervisor Branson moved to approve, Supervisor Gilpin provided the second. Ms. Cannady reviewed the proposal made by Architect Michael Griffith of which services would include design work and construction drawings for the lanai expansion (enclosure) for $18,590. Specific illustrations would incorporate all architectural, engineering and electrical drawings. Also included would be site visits, interior finish schedules (with materials), bid reviews and field observations. Supervisor Branson asked if the timetable provided would coincide with current expectations to which Ms. Cannady confirmed, adding Mr. Griffith could work the week of October 29 th. Supervisor Branson asked when he will be finished to which Drew Jones replied by the end of November, or the first week of December. Supervisor Stegall suggested a meeting with Mr. Griffith before he applies work already completed by Cliff Scholz. Mr. Jones replied the plan is for him to be on site October 29 th to which President Camp asked if design B (previously approved) was no longer applicable. Supervisor Stegall suggested including a partition which would permit a smaller meeting room for groups of 20, or 30 individuals. 2
3 Supervisor Brooks voiced his confusion because he was of the belief they had already decided on a design via board vote. Ms. Cannady responded how he was correct, design B was approved to which Supervisor Brooks asked if that is going to change? President Camp said it would require an amendment to the approved resolution to which Ms. Cannady reviewed the events of the vote and explained how Supervisor Stegall s statement related to interior work. During a discussion on October 25 th, Mr. Easum mentioned that it may be nice to create a meeting space in the area. They could use doors to close the space off (when necessary) and leave it open during normal dining hours to which Supervisor Brooks asked if she was discussing the lanai. She confirmed, elaborating it would be a meeting space within the building structure to which Supervisor Brooks questioned why that would be necessary? President Camp agreed, voicing his surprise that the subject was only now being mentioned to which Ms. Cannady responded that Mr. Griffith will move forward with design B. Mr. Easum elaborated how the idea was to work a small meeting place within the existing blueprint (already approved). He referenced feedback received from Florida Hospital representatives which led to his conspectus. Supervisor Brooks voiced his disagreement with the idea because they had already taken a vote and decided to which Supervisor Stegall countered it was only an idea. If the cost was not too exorbitant it may offer the board flexibility. He voiced his indifference either way to which President Camp agreed that it is ideal to keep options open; however, deliberations began two years ago. He recalled previous discussions concerning safety, menus and expansion, then voiced his concern that the idea may be more a benefit to Sebring residents rather than District denizens (or golf members). He referenced a business plan and surmised that if the idea to add a meeting space is part of it, then it should be outlined and presented with justification. Supervisor Brooks voiced his disagreement with closing off the lanai in this way and voiced his uncertainty it is even possible to do so within the parameters approved. He asked how management plans to section off the area to which Ms. Cannady replied it would be through a door system. She reassured him that a majority of the time the area will remain open and reminded the board how the idea only came to light the day prior. 3
4 President Camp agreed with the consideration; however, he was disconcerted that he was not given an opportunity to consider it. He reminded the audience that he could only speak for himself to which Supervisor Brooks asked if this work would cost more than $18,500. Ms. Cannady answered she had not mentioned the idea to Mr. Griffith. She reassured the board that design B (as approved) would be the layout. Supervisor Brooks suggested addressing the interior of the clubhouse (first) because it is in poor condition. He referenced lighting and furniture, asking how management plans on addressing this subject to which Supervisor Stegall extended an apology for having brought up the idea. Ms. Cannady asked Mr. Griffith to introduce himself to which he complied, reviewing his collegiate background with Virginia Tech and professional qualifications as an architect for almost 40 years. He moved from Hilton Head, South Carolina to Sebring in 2017, and a majority of his designs are for commercial projects. Current design work includes the Hilton True on the lake, and collaborations with contractors on projects such as the Ashely Oaks retirement building and Plaza shopping center. Supervisor Branson asked if they involved him with the previously mentioned conversations to which he confirmed, then reviewed his affiliation with Polston Engineering. Supervisor Branson clarified his question, stating he was referencing the lanai and the separate meeting room to which Ms. Cannady responded that was not the case. Supervisor Branson expressed his stance on the subject, stating the board agreed to pay the previous architect $20,000 to complete the drawings. With that said, Mr. Griffith has agreed to complete the drawings for $18,500. If they can accomplish this new concept for the pre-approved $20,000, then the board would be ill-advised not to try. Supervisor Stegall said he wanted to have the ability to discuss it. It was his opinion that if the board has flexibility, there could be additional uses for the building to which Supervisor Branson replied he did not disagree with the statement, adding it must be driven by cost. Supervisor Brooks was adamant they approved design B and announced that if it is changing, then he will rescind his vote. President Camp stated a resolution is on the table for a scope of work on the lanai as presented in design B. He questioned if that was an accurate statement to which Ms. Cannady confirmed. 4
5 He asked if it would require amending the resolution, should the board request drawings with the additional design to which Mr. Schumacher said a site meeting will take place the week of October 29 th. It can be discussed then as the contract includes concept work. The resolution already establishes that design B is the chosen layout. As long as the work does not cost more than $18,500 then the contract will not require a change. Supervisor Brooks asked if his constituents believed that the additional work would be at no extra cost to which President Camp acknowledged his understanding that outlay would increase. Supervisor Branson explained that if it is possible to perform the work while remaining at $20,000, then it should be considered. He expressed his preference to approve the resolution (as presented), then examine what they can do for additional meeting space. Mr. Schumacher elaborated that if the board agrees it is a workable option, then a change order can be executed. President Camp asked for an explanation on how the discussion came up (and between whom) to which Supervisor Stegall affirmed he had spoken with Mr. Easum. It was mentioned (casually) that the Club could increase revenues via a private meeting space. He asked that Mr. Easum find out if the board could meet with Mr. Griffith to determine the feasibility and cost. President Camp explained how his only contention was that he was finding out at a meeting. Supervisor Stegall referenced the Sunshine Laws and that he never said either way whether to proceed. He only wanted the ability to discuss it with the architect to which Supervisor Branson reminded his peers that there are no costs in considering it. President Camp asked if the decision would have to come back before the board (i.e. if the change is $1,500) to which Mr. Schumacher answered it would come back as a change order. Ms. Cannady elaborated how she already has the budget to support the change but she would communicate. She asked that the board allow her to discuss it with Mr. Griffith and if a change order is necessary, then she will review it at the next meeting. Supervisor Branson voiced his favor with the idea to which Ms. Cannady reiterated how she can approve change orders for items less than $10,000 (without board approval). 5
6 Supervisor Brooks asked for a clarification on the resolution s commitment to which President Camp answered the vote would be for the resolution as written ($18,590) for design B. He called for public comment. Tom Kosty- Asked if the contract will be made between Mr. Griffith and the District (or Polston Engineering) to which Mr. Schumacher answered the agreement would be between Mr. Griffith and Polston Engineering. Mr. Kosty asked if management will purchase architectural services from the architect to which Mr. Schumacher confirmed. Mr. Kosty asked if Polston Engineering will mark up pricing to which Mr. Jones replied that was not the case. Mr. Griffith elaborated how the architect has arranged for a structural engineer (if needed), they will include this engineer in his services. Mr. Kosty referenced architectural drawings for the building and asked if the District has provided them to Mr. Griffith to which Ms. Cannady nodded in confirmation. Bill Norcross- Referenced Supervisor Stegall s suggestion of a separate meeting room (similar to Inn on the Lakes) to which he elaborated that his interest is in having a multi-use facility that can be open/closed as necessary. He stipulated that it will only be pursued if it makes financial sense. Mr. Norcross concurred that it could be an option and agreed with Supervisor Brooks statements on updating the interior of the Clubhouse (painting, lighting). With no further board, or public comment the motion was put to board vote. Roll Call: Supervisor Branson- Y; Supervisor Brooks- Y; Supervisor Gilpin- Y; Supervisor Stegall- Y; President Camp- Y With a vote of 5-0, the motion to approve the resolution passes. b. Discussion: Global Golf Ms. Cannady asked if the board wanted to review each bullet point to which President Camp said she could; however, he was well aware of the changes. 6
7 Supervisor Stegall acknowledged his understanding of the revisions to which Supervisor Branson said there were no issues he could find; however, he would not be able to identify if there were any because he did not review Global Golf s data. He voiced a desire to see the data, specifically outside play totals (i.e. how many patrons paid full, resident, Tanglewood, hotel and player card rates). He also expressed a need to know if software will produce a report exhibiting data on items purchased in the Pro-shop. He further requested an account of last year s totals to measure the effect of increases. His preference was for the Club to charge $70 per round rather than $60. He recommended that the board think about how to get to that level within the next few years because the draft assured him revenue enhancement will determine the Club s future. He asked that Mr. Easum spearhead the initiative and figure out a way to present this information on a monthly basis to which he confirmed. Supervisor Brooks referenced notations on page 12 and asked Ms. Starling if he can have (by the next meeting) an update on where operations is as it relates to the website (including a timetable) to which she agreed. Supervisor Branson asked that it not be website specific but focused on other marketing directives previously discussed. President Camp called for public comment. Bill Norcross- Referenced line 5 and cited the excerpt to reach larger metropolitan areas. He expressed his opinion that it is a factor of importance for the Club. He recounted a conversation he had with another golfer relating to playing conditions and surmised if Global Golf can reach the hospitality demographic, it would be an effective action. 6. Add-on item 7. Petitions and Communications 8. Staff Reportsa. Mike Hurley- Public Works Report: Mr. Hurley began his report with reviewing Security Watch orders, stating they are decreasing in frequency because northern residents are returning. 7
8 He reported that the Security Watch orders proved effective because there were no break-ins. He reviewed positive feedback received from returning residents concerning the dog park, then confirmed work on the corner of Sunrise Drive should be completed by the end of the day. Mr. Jones and he will continue working on drainage in other areas of the community to which Supervisor Brooks asked if he was speaking about the area behind the newly built condominiums. Mr. Hurley confirmed, elaborating the area is District property. Supervisor Brooks asked what is being cleaned up to which Mr. Hurley recounted dumping practices of previous administrations. He confirmed operations is cleaning up the area so it will look better to which Supervisor Brooks asked if the area will remain barren? Mr. Hurley replied that is not the case, the location he was referencing had trees removed for drainage to which Supervisor Brooks said he was trying to visualize and understand it. Mr. Hurley reminded him that they did not complete the work which will make drainage flow through that area. President Camp asked if they will install a culvert to which Ms. Cannady replied a swale. Supervisor Gilpin mentioned that local contractors have been sitting on their houses and asked if the District has a policy to address the problem (specifically the property on Granada Boulevard) to which Mr. Hurley replied the contractor has been gone for 3 months. Mr. DeJesus elaborated it is a subject that Mr. Schumacher and he will discuss. In the permit wording there is a provision stipulating that any construction must begin within a 90- day period and be concluded within 365 days. With that said, the contract does not confirm what the consequences or penalties are should that not occur. This matter will come before the board and there will be further tries to get the county involved. Other provisions such as utility billing stipulate that charges will not incur the first 6 months; however, once that time period is up sewer fees accrue (even if there is no usage). President Camp reviewed Mr. DeJesus statements, observing these provisions were given without consequences to which he admitted the policy had not been reviewed since He reassured the board that research is underway (as far as legal regulations) and what the District can, or cannot do. President Camp asked if contractors are current with their assessments to which Mr. DeJesus confirmed. He advised the 2018 tax roll has only just gone out, so delinquency is yet to be determined. 8
9 Supervisor Gilpin complimented Mr. Hurley for the work at the corner of Sunrise Drive. b. Omar DeJesus-Financial Report: Mr. DeJesus began his report with confirmation that assessment notices have gone out. He encouraged citizens to pay in November to take advantage of the discounted amount. The year-end financials are underway and should be ready by November 15 th (the deadline). He agreed to present an update at the November 9 th board meeting, adding the plan is to have the formal (adopted) budget books out by the end of the following week. c. Ariel Starling- Community Services Report: Ms. Starling announced the Trick-or-Trot 5K, Kid s Monster Mile will take place in the evening. Registration is still underway and totals (as of the morning) were just short of 100 participants. Coffee and Conversations is a new social initiative where local businesses can speak to District residents. Businesses are signed up all the way through February and invitations to the social have been extended to residents of Fairway Pines. Starting October 29 th, Community Services will focus on promoting Christmas events to which Supervisor Brooks asked how many, Coffee and Conversation seminars have taken place? She replied 2 to which he asked about attendance. She admitted there is room for growth, and confirmed she will continue pushing the social as there are no costs incurred by the District. Supervisor Brooks complimented Ms. Starling on her efforts and voiced his approval of the concept to which she reassured them that once more northern residents return attendance should increase. d. Cliff Easum- Golf Report: Mr. Easum referenced a membership update sent to each supervisor and recounted how the data reflects the Club trending within a 2% to 2.5% increase. He voiced his pleasure with the results of renewals and announced that he is close to completing September financials. He attributed the delay to two pending invoices but confirmed that October and November figures are strong. 9
10 He is confident that 2018 will have the strongest revenue totals experienced in years. He referenced the equipment lease, stating it has become a more complicated process than expected. As bids came in, many were lacking trade-in values leaving questions on warranties. Earl McMinn is trying to present comparable results within District guidelines. He affirmed that he will continue to focus on member values and events, then complimented Mike LaMere for his efforts on promoting. Scheduled entertainment includes Tacos and Tequila and Guest Appreciation night. Also on the schedule for November is a Thanksgiving buffet and Mentalist. Supervisor Brooks asked if Mr. Easum received negative responses from members because of rate increases to which he replied that is not the case. Supervisor Branson complimented the member social held October 21 st and asked if it will continue to which Mr. Easum confirmed. 9. General Counsel Report: Mr. Schumacher started his report advising that they have completed demand letters for Unit 12 which they expect to go out by the end of October (for the new billing cycle). The notices will include the 2019 fees. Supervisor Branson and he will attend another meeting the week of October 29 th which is in an effort to present information regarding new methods of implementation for Code Enforcement (by the next board meeting). 10. General Manager s Report: Ms. Cannady began her report with updates on 2019 projects, the first of which is the Deer Run Pump station. They expect the completed designs by Tony Altum to go out for bid soon (specifically for the electrical upgrades). Greens loops will be the next focus with an expected commencement by the Spring/Summer season. She confirmed the next Recreation and Parks Advisory Committee meeting will be held November 29 th. Ms. Starling and she will submit the application for the Bocce and Shuffleboard courts, the current budget for the endeavor is $235,000. The project is contingent upon funding from R.P.A.C. She moved onto Unit 2 drainage, confirming that the vendor is still laying sod which they should finish by the end of the following week. 10
11 She referenced Ms. Starling and Supervisor Brooks previous discussion concerning marketing (and the website), elaborating that another meeting will take place with Ms. Starling, Mr. Easum and herself October 30 th. Polston Engineering is working on bid specifications for current year drainage projects (listed in the Phase III drainage plan). Included in the outline are 11 projects of which it will include 9 on a single bid. They expect completed bid specifications within the next 6 weeks. Water Plant Electrical upgrades have begun and they expect completion by the end of December. The biggest obstacle for the project is purchasing parts which are diverse and spread out amongst manufacturers. She will request an update from the Project Manager, Jim Orth for the December meeting. This represents movement on a project that has taken 3 years to come to fruition. President Camp asked why 9 of the 11 drainage projects will be included on one bid to which she explained though the projects are unrelated, it would cost more to bid out each project (individually). 10. Unfinished Business 11. New Business 12. Committee Reports 13. Public Comments- Tom Kosty- Referenced Ms. Cannady s previous comments on the General Manager s ability to execute change orders up to $10,000 without board approval, then asked if the General Manager can (for instance) make a $200,000 project increase to $210,000 without board approval to which she replied the change would have to be under $10,000. He asked if the General Manager can make incremental increases over an extended period to which she confirmed she would have to research the information. He mentioned the Public Record policy and how the District could not locate records in recent years (within the last 10 years). He asked if there is a formal policy concerning records disposition to which Chrissy Hardman replied the District adheres to the minimum requirements of the state of Florida. Depending on content within the document, it is categorized accordingly. He asked who the Public Record officer is to which Ms. Hardman confirmed that is her responsibility, she then offered to meet so he may inspect records. 11
12 Mr. Kosty asked for an update on the Retirement Committee program to which Mr. DeJesus replied a meeting will take place October 31 st. Bill Norcross- Spoke of a newspaper article where President Camp was quoted as stating the golf operation should be self-sufficient. He asked for a clarification on the statement to which President Camp responded the comment was made based on Global Golf s recommendations. Any business has expenses (and revenues), his point was that in time it would be nice if the golf operation was more self-sustaining in its subsidies. He was of the opinion, the goal should be for it to break even at some point. His statement did not reflect (in any way) a desire to increase assessment or utility fees. 14. Discussion to/from Board Supervisor Brooks suggested that a survey go out to all residents polling them on what they feel priorities should be moving forward with capital projects. He affirmed how he would have more confidence taking part in board votes, if he knew citizens supported the action. With no further board or public comment, the meeting was adjourned. The meeting was adjourned at 10:12 a.m. 12
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