Our Covenants state that the POA shall be responsible for the mowing and edging of all lawns. However, it has been the practice of the developer and the association to also provide weed and pest control. This is being done as we require uniform treatment to all residential and common area lawns. It is doubtful that all residents would maintain their lawns to an acceptable level if we eliminated weed and pest control.

Shortly after the transfer of the common areas from the developer to the residents (association), Southwest Lawn advised the board that if they continued to provide lawn service, they would require $312,000 annually. This was a huge increase compared to what the developer had been paying. Our annual assessments would not cover this increase. There were many resident complaints about poor service. At that time, there was no mechanism in place where the developer would address these complaints, and they went unanswered.

Instead of accepting the increase requested by Southwest, the board negotiated a contract for the same services at an annual cost of $ 240,000 with TruGreen in Ft. Myers, Florida. The price increased as additional homes were built. They at first performed satisfactorily, but in the second year of the contract, service deteriorated to a poor level. TruGreen was put on notice by the board that the service was unacceptable. The main problems were lack of proper supervision on their part and allowing weeds and pest damage to rise to an unacceptable level. There were numerous residents’ complaints.

The board interviewed other lawn contractors and secured two bids, and a contract was issued to Greenscapes for the period March 15, 2003 thru March 14, 2004. The annual cost was $263,000. As new homes were completed, they were added to the contract at an additional $52.34 per month. The cost of the contract increased to $273,214 annually.

The board negotiated a new two-year firm priced contract with Greenscapes, revised some of the specifications and the price was $282,636. This new contract was negotiated before the previous contract expired in order to incorporate revised specifications.

The board negotiated a new two year firm priced contact with Greenscapes at an annual cost of $291,108. Again some of the specifications were revised.

After interviewing two other landscape contractors, the board negotiated a new contract with Greenscapes at a firm price for two years. The interviews with the two other contractors caused doubt if they had the capabilities to service a large community like Seminole Lakes. The annual cost from Greenscapes was $305,364. The reason for the price increase, aside from inflation, was that we recognized the fact that unless a special effort was made to control the sugarcane grubs, we could not maintain healthy lawns.

Greenscapes had the University of Florida visit and trap some beetles, and they gave the recommendations of using specific chemicals to control the grubs. It was discovered that the sugarcane grub was resistant to those chemicals previously used. Applying two applications annually of this special chemical approved by the board was an added cost to us at $36,346 annually. For whatever reason, the sugarcane grub made a home in Seminole Lakes and is not common in other communities.

DRY PRODUCTS ANNUAL COST

143 - 50# bags of Aloft (pest control) $10,066

190 - 50# bags of Area (pest control) $11,000

12 - 50# bags of ant bait & fire ant control $800

804 - 50# bags of turf fertilizer $14,442

250 - 50# bags of Lock-Out weed control $4,113

TOTAL $40,421

$11,000

These liquid chemicals (Arena, Allectus, Manor, Quick Silver, and Certainty) are used in spray applications to control weeds and pests. They are used to supplement the granular chemicals.

Cost of chemicals used in 2009 from January to October 31 was $51,421. There is one additional application of weed control remaining to be applied this year.

Spray technicians work 27 days per month or 270 hours.

Granular fertilizer and weed control applications take a 3 person crew 14 days or 420 hours.

The mowing crews (5 to 6 men) are used 40 times a year or 2000 hours.

The irrigation and inspections take 13 days or 130 hours.

The pruning crews (used to prune bushes and trees on common areas) consist of 2 persons working 14 days or 280 hours.

Truck drivers work 200 days or 2000 hours.

The on-site supervisor works 500 hours per year.

Total hours worked per year is 5600.

Using a loaded hourly rate of $18.00 this equates to $100,800 labor costs.

Fuel costs average $250 per week or $10,000 annually.

The direct costs equal $162,221 per year.

Added to the direct costs are the cost of capital equipment and tools used. The cost to Seminole Lakes is $75,000. Added to their costs is overhead which includes client manager, insurance, taxes, building maintenance and office staff.

We do get complaints from some residents about the condition of the lawns. Our management company works directly with Greenscapes to address these complaints. Some of the complaints were about carpet and Bermuda grass growing in their lawns which cannot be controlled by using chemicals. I meet with Greenscapes monthly to review complaints, and to resolve them if possible. The complaints are similar in type and volume that other communities experience. How do I know? Well, I am familiar with numerous directors from other associations and we compare notes.

The soil in Seminole Lakes is of a poor quality with a very high level of calcium. That can lead to hardpan soils, which will restrict the flow of air and water through the soil profile. This has a negative effect on the grass roots which causes dead grass and bare spots. Some soil samples were taken this August which showed the chemical composition of the soil.

We also started a program based on" Best Management Practices" which Greenscapes is certified in. Greenscapes, with our approval, continually change the mix of chemicals to control chinch bugs and grubs. In our fertilizer application, we have reduced the percentage of phosphates to between 0 and 2 and reduced the amount of nitrogen used in the rainy season. Both of these changes were recommended to reduce the amount of nitrogen and phosphates that drain into our lakes which cause algae blooms. These are not only State recommendations but also from the County.

The purpose of all this information is to assure you that this board and past boards have worked hard to give our residents the best value for spending your money to maintain your lawns and common areas. There is no perfection achieved in maintaining the lawns due to our climate, and lawn pests are active year long. The poor condition of our soil is another factor. Adding to the problem are those residents who leave for the season and lock out their sprinkler system. This is harmful to the grass, especially after applications of pest control and weed killers are applied, as they do not get into the soil at the proper time due to lack of water.

There are only a few companies with the capabilities to handle a community the size of Seminole Lakes. There are two that we do not consider qualified. A third large nationwide company who has started doing business in Southwest Florida would have the size to meet our requirements. I met with them and explained our requirements. They stated they could not offer a lower price as their chemical costs would be similar and their labor costs would be higher, but could offer improved performance.

In order to reduce the costs of our landscape contract, Greenscapes has agreed to lower their annual price from $305,364 to $281,760. This was based on our request to find ways to lower our costs. It was achieved by reducing the hours spent on sprinkler inspections from 13 to 6.5 days per month. Your systems will now be inspected every two months instead of every month. You should not notice any difference. The balance of the reduction comes from using a different mix of chemicals for pest control.

The new contract price equates to $48.00 per month per parcel. Bear in mind this also includes maintaining all the common area lawns including shrubs and trees up to 14 feet tall. The cost per month per parcel is similar to what we paid five years ago. This price reduction equals $4.00 per month per parcel which is reflected in our 2010 budget.

The new agreement also incorporates the previous separate agreement to keep our streets open in case of vegetation debris caused by a hurricane. Greenscapes would remove the vegetation to the side of Highway 41 which would be picked up by the County at a later date. As Greenscapes now has a location near the airport, this makes it convenient to move in quickly. There are separate time and material rates for this service.

Based on this reduction and our need to continue to work closely with Greenscapes to maintain our property, I am making a motion that we enter into a two year firm price contract with Greenscapes effective January 01, 2010 thru December 31, 2011 at a cost of $281,760 annually.

Thank You

Bob Toth