MINUTES OF MEETING
regular meeting of the Board of Supervisors of the Coral Springs Improvement
District was held on
Present and constituting a quorum were:
Robert D. Fennell President
William Eissler Vice President
Glen Hanks Secretary
Also present were:
Gary L. Moyer Manager
Roger Moore Engineer
Hal Anderson Attorney
Rich Hans Staff
Dan Daly Staff
Bill Joyce Staff
John McKune Gee & Jenson
Mr. Fennell called the meeting to order at , and Mr. Moyer called the roll.
SECOND ORDER OF BUSINESS Approval of the Minutes of the August 18, 2003 Meeting
Mr. Moyer stated that each Board
member had received a copy of the minutes of the
There not being any,
ORDER OF BUSINESS Public
Hearing to Consider the Adoption of the Water and Sewer
Mr. Fennell opened the public hearing.
Mr. Moyer stated the budget basically determines the number of gallons of water that we pump and the number of gallons of wastewater that we treat. We apply various factors to these amounts for electrical, chemical and other items that are currently under contract and identify the revenue sources. A great deal of projection is not necessary on the revenue side this year because the District is close to build out. It used to be a challenge because we did not know the number of units that were coming on-line, and this affected the cash flows of the District. Since we are approaching build out, revenues are locked in because we have been experiencing said revenues for a number of years.
We make debt service coverage on our bonds, and we fund $200,000 to a renewal and replacement account, which is necessary as part of our trust indenture. One noteworthy item that is not shown under revenues is when we did our last consumptive use permit and rate increase approximately 12 years ago, we came up with penalty pricing scheme. We have users who use an excessive amount of water; therefore, they will pay more at certain thresholds. For example, if the average use is 9,500 gallons and they reach 12,500 gallons, they step up to another price. If they exceed this amount and reach a third category, they will pay a higher price. Historically, we have generated more revenues in the system than we budget becuase we assume everyone will use the average, but in many cases it is not true. Our revenue picture is good under the worse case scenario, which is average usage. The way we have been able to build up our renewal and replacement account to permit us to do the modifications that we are doing to the wastewater system and the water system is from the revenues we collect from excessive use.
Mr. Fennell stated it seems that we are close to $1 million less in revenues from last year.
Mr. Moyer stated this is driven in part by the penalty pricing. We anticipated the carry forward surplus from the prior year to be $560,000, but it ended up being $842,000. A transfer from the renewal and replacement fund is $316,000, and we are not showing any of this as a revenue source. Adding these two numbers will bring us close to the revenues that we projected last year.
Mr. Fennell stated because of the security issues, we took on an additional $250,000 per year. Is the $7.7 million amount okay?
Mr. Moyer responded yes, given the expenditure profile, which will generate $2,555,000 in profit. Every year as we pay down principle, we cut debt service.
Mr. Fennell stated plant operations are down. How are we saving money there?
Mr. Moyer responded the system is more efficient. Additionally, we will continue with the renovation program, and staff will prepare a separate budget on what we are going to do on a capital basis. This is where the renewal and replacement fund will come in.
Mr. Fennell asked are we going to transfer the renewal and replacement fund from the operating budget to the capital projects budget?
Mr. Moyer responded the $200,000 figure listed on page five will be transferred to the trustee. Under the bond indenture, if we need that money, we will requisition monies from the trustee for the capital projects expansion. We have to do this because of the trust indenture. In addition to what the trustee holds (the renewal and replacement requirement is $1 million), we have $7.5 million in surplus funds to continue the renovations of our system. These are monies that are held by the District since we exceed the renewal and replacement fund requirement under the bond issue. When we start the audit, we will be able to determine what the net revenues of the District have been. With the surplus revenues that we generate through the penalty pricing system, we are hopeful that what we spend on the renewal and replacement fund is covered by what we make in profit from the operations of the utility system.
Mr. Fennell stated there are trips and various lobby groups that we as a Board should become more active in going forward. Various meetings are held around the state from time to time. I wonder if we have any monies budgeted for this.
Mr. Eissler asked did we allocate money to a lobbyist last year?
Mr. Moyer responded yes. We paid $21,135 for a contract lobbyist. North Springs paid the other amount. However, we did not budget anything for next year.
Mr. Fennell stated we should add $30,000 for the concerns of how the District is affected at the state level. We are a state group, and we need to attend meetings and state functions to protect the interests of the District.
Mr. Moyer stated we can add it to the contract lobbyist line item or the contingency fund.
Mr. Eissler asked do we get our money’s worth from the lobbyist?
Mr. Moyer responded based on reports that I received from Ms. Archer, Mr. Book is a well-respected lobbyist. I think you have the best that you can get for the purpose. However, I am not aware of any way of quantifying this value.
Mr. Fennell stated we discussed possible changes to Chapter 189, and we should sponsor this.
Mr. Eissler asked is North Springs in favor of this, too?
Mr. Moyer responded they have a larger area that is not developed. The language that would be added to Chapter 189 is at the option of an existing seated Board, they may convert. It would then be up to the Board to make this decision, which you already represented you would make.
Mr. Fennell stated adding this fund shows good faith and that we are thinking ahead.
The public hearing was closed.
FOURTH ORDER OF BUSINESS Discussion of the Audit for Fiscal Year 2002
Mr. Fennell stated the Board accepted the audit at the last meeting.
Mr. Eissler stated it was prepared by a new firm different from whom we have been using.
FIFTH ORDER OF BUSINESS Consideration of Change Orders
A. Change Order No. 6 with Intrastate Construction Corp. for the Water Treatment Plant Improvements Contract for a Net Increase of $36,903.70
B. Change Order No. 1 with MGI – Morgan General Mechanical Group for the Water Supply Wells 8, 9, 10 & 11 Contract for a Net Increase of $39,476.81
Mr. McKune stated we have not addressed the water plant expansion for some time. This job is coming to an end. Change Order No. 6 is a reconciliation of the smaller jobs. The original contract amount was $1,447,502. The amount of this change order is $36,903.70, which brings the total contract amount to $1,760,670.92. The items specifically within this change order are listed on page three.
Mr. McKune outlined the items contained in Change Order No. 6.
Mr. McKune distributed a revised Change Order No. 1, which contains two additional items resulting in a net decrease and stated the $10,000 represents an allowance that was included in the contract for landscaping that would be required by and would be satisfactory to the City of Coral Springs at the conclusion of the job since these four wells have been constructed within the park. The wells are located on the four corners of the soccer fields. The contractor has received his final signoff from the City, and Mr. Moore has done a good job working directly with the park department personnel. They indicated to Mr. Moore what they would like to see in the way of landscaping, and they prefer that it be done by a contractor they use. However, we have yet to get with that contractor and get his price, but we do know that we want to take that out of this contract.
Mr. McKune outlined the items contained in Change Order No. 1.
D. Complaints - Letter from Jerry Graulich
stated enclosed in the agenda package is a letter from Jerry Graulich with regard to well number four, which is an
existing well located on the south side of
Mr. Eissler stated Mr. Graulich’s big complaint is the visibility of the crane. Who owns that crane?
Mr. McKune responded AMPS. It is gone, but it will come back when we do the remainder of the work. I called Mr. Graulich the day we received the letter and we spoke for 20 minutes. He wanted me to make it clear to the Board that this letter is not a complaint but instead a request to obtain information and to get a time frame. At the conclusion of our conversation during which I told him that everything would be done by the end of this year, he said that is fine and that he would tell his neighbors.
Mr. Moyer asked notwithstanding what you said, is a year reasonable to do that?
Mr. McKune responded it was done in bits and starts, which is why it took so long. In addition, we had to wait for him to bring in the heavier rig. This project did not have a fixed time frame during which he had to perform. We went into it with our eyes open knowing that it was going to be a sequential project. Similar to the four new wells, it is now producing more than it was.
Mr. Fennell asked what does the site look like now?
Mr. Eissler responded the Areca Palms are hiding it now.
Mr. Fennell asked is there anything we can do at this time?
Mr. McKune responded no because we are finishing a bid package. We are putting the rest of the work out to bid, and we anticipate this contractor being the low bidder.
Mr. Fennell stated we need to respond to Mr. Graulich’s letter. You should write him a letter explaining what we are going to do and call him every couple of months to find out if everything is going right. Let’s make sure this does not become an issue.
Mr. Anderson stated Mr. Lyles is still under advisement in regard to the dock issue. There is information that still needs to be submitted from an attorney on behalf of some of the residents. Mr. Lyles asked me to reassure the Board that he is working on this and that this is underway. Hopefully, he will receive information by the next meeting.
Mr. Eissler stated we gave Eagle Trace $5,000 to plant trees along the berm. This was supposed to happen in July, but it has not happened. Upon my last check, they were waiting for a permit from the DOT.
Mr. Joyce stated I spoke to Warren Craven from WCI and learned that they have still not received the permit. This is the only thing holding them up.
1. Monthly Water & Sewer Charts
Mr. Moore stated I will distribute a report at the next meeting that shows the results of the first phase of our lining project. 1/3 of our system is clay pipe, and we have successfully lined 20% of that. Indications show that we made headway.
Mr. Hanks asked are you trying to identify the worst sections?
Mr. Moore responded we did a study. Eventually, all of the clay pipes will need to be lined because clay pipes deteriorate and breakdown.
Mr. Hanks asked is there a way of getting the private owners to handle their sections?
Mr. Moore responded at this time, we are leaving private sewers out of it. We are doing the worst ones first. At some point, we will have to look at the run times of the stations taking all or part private. If the run times are up considerably, then we may have to do a study to see if we have severe leakage through a private pipe. At that point, the Board will have to determine whether we write a letter to the private owner and explain that they are exceeding their flows to our system and that we may need to do something.
2. Update on Construction
Mr. McKune stated the steel tank is complete. We will probably wait until the new automatic screen is delivered in 1-1/2 months and installed before we put the headworks system in operation. We would rather have it screened before we put it into the new plant. However, if we need to run the plant, we could.
Mr. Joyce stated to run it now without it being screened, we will have to take it down and get it cleaned. Running it now will cause more problems than it will solve.
There not being any, the next item followed.
SEVENTH ORDER OF BUSINESS Supervisors Requests and Audience Comments
Mr. Moyer stated I asked Dan Daly to join us today. He sent you an email on a situation on a delinquent water bill that dates back to 1991. This item may come before the Board next month.
Mr. Fennell asked what exactly happened?
Mr. Daly responded a resident called to find out what they can do to get their water turned back on. I told her that she needs to pay the bill. She said there was a problem with the bill at that time because the balance from the old computer was not carried over. I explained that it was carried over and told her that I personally sat with her father and went through the billing history with him. At that time, we went from billing every two months to billing every month, and we went from the old system to the new system at the same time. Additionally, the department did not do well with collections so if they were two bills behind, they were four months behind. Because we were behind in billing, we accelerated the billing so that we even though we had meter readings in the books, we would bill twice a month but the readings were for readings for a one month period of time until we caught up. The problem is when it came time to shut people off, we had to make a threshold. We could only go after certain residents who owed a great deal of money because we only had so much manpower, etc. We went through the entire billing history with them as to how they owed money, where it came from, what the meter readings were, etc. They sat with Mr. Moyer and Ms. Archer and we talked to them numerous times about it. Unfortunately, we had to turn them off along with other residents in that area. Everyone seemed to get turned back on except for the residents who did not have the wherewithal.
Mr. Fennell asked what are they doing for sewer and water?
Mr. Daly responded they put in a well. Ms. Archer and I talked about this a few years ago, and we sent someone out there. He turned on the hose and said it smelled like well water. Ms. Archer contacted the city and explained the situation, but the City did not get back to us, and we did not feel it was our right to call the health department. The minimum charge has built up over these years in addition to the time they have been turned back on due to the personnel in our field office inadvertently forgetting to lock the meters when they were changed out. The point is, if they are using well water, then they are using sewer service. She wants the water turned back on and asked if we could decrease the bill. I explained to her that we do not have a habit of being selective enforcement and that we have to do this with every customer across the board regardless of the situation. I told her that we would work with her but we cannot waive the bill. I also have a letter from them that they would pay $400 and a second $400 within the next two months but they never came in and signed it. This is when they owed $800. We did everything in our power to keep from turning them off. There is a mention in the email that her mother will be getting out of the hospital due to leukemia. I also have notes indicating that she had the same illness in 1992. We also received a call from someone claiming to be a renter who said that the water should be turned on for them. We told the caller that the lease should not be binding because we cannot turn the water on because they have not lived up to their end of the agreement as landlords. It turns out that the caller was his daughter.
Mr. Moyer stated we always try to work with people. We understand from time to time that people have problems and cannot make a payment and we have always come up with payment plans. I do not think we have ever been unreasonable. As long as they make a good faith effort to make the payment, we will not turn them off.
Mr. Fennell asked do we have a social obligation?
Mr. Anderson responded you have complied with the procedures. Unless we are apprised of different circumstances or a special situation that might change the picture, then this is simply an outstanding bill where service has been discontinued, and this is where we stand.
Mr. Daly stated the bill is based on usage only. Penalties and late charges have not been applied to this account.
Mr. Eissler stated they owe us the money, and they should pay. If you do not collect it in some fashion, word will get out and someone else will do it.
Mr. Fennell stated some money is better than none. I suggest making a settlement right now for money down and owing the monies per month but conditionally find a way that you have an account to debit every month.
Mr. Eissler stated I received a letter from Wright Security and Protection saying that there was not a competitive bid for security. I did not respond because I do not know if we should. They want to be notified when the contract is up because they want to bid on the project. Are we obligated to respond? It was not competitive because of security reasons.
Mr. Fennell responded we will look at this contract and advertise.
There being nothing further,
Glen Hanks Robert D. Fennell