The regular meeting of the Board of Supervisors of the Coral Springs Improvement District was held on Monday, February 28, 2005 at 4:05 p.m. at the District Office, 10300 NW 11th Manor, Coral Springs, Florida.


Present and constituting a quorum were:


Bob Fennell††††††††††††††††††††††††††††††††††††††††††††††† President

Bill Eissler†††††††††††††††††††††††††††††††††††††††††††††††††† Vice President

Glen Hanks††††††††††††††††††††††††††††††††††††††††††††††† Secretary


Also present were:


Gary L. Moyer†††††††††††††††††††††††††††††††††††††††††† Manager

Dennis Lyles†††††††††††††††††††††††††††††††††††††††††††††† Attorney

John McKune†††††††††††††††††††††††††††††††††††††††††††† Engineer

Dan Daly††††††††††††††††††††††††††††††††††††††††††††††††††† Utility Billing

George Keller†††††††††††††††††††††††††††††††††††††††††††† Severn Trent Services

Ed Goscicki††††††††††††††††††††††††††††††††††††††††††††††† Severn Trent Services

Jean Rugg ††††††††††††††††††††††††††††††††††††††††††††††††† Severn Trent Services

Scott Jones†††††††††††††††††††††††††††††††††††††††††††††††† Severn Trent Services

Joni Hayworth††††††††††††††††††††††††††††††††††††††††††† District Staff


FIRST ORDER OF BUSINESS†††††††††††††††††††††††† Roll Call

††††††††††† Mr. Fennell called the meeting to order and Mr. Moyer called the roll.


SECOND ORDER OF BUSINESS††††††††††††††††††† Approval of the Minutes of the January 24, 2004 Meeting

††††††††††† Mr. Fennell stated that each Board member received a copy of the minutes of the January 24, 2004 meeting and requested any additions, corrections or deletions.

††††††††††† Mr. Eissler stated these minutes are not verbatim.

††††††††††† Mr. Hanks asked do you have any corrections?

††††††††††† Mr. Eissler responded you will have to go through the minutes; they are minor, and it may be insignificant.

††††††††††† Mr. Hanks stated we need a comfort level and the essence of what we said is accurate.


On MOTION by Mr. Hanks seconded by Mr. Eissler with all in favor the minutes of the January 24, 2005 meeting were approved.


THIRD ORDER OF BUSINESS†††††††††††††††††††††† Consideration of Work Authorizations

††††††††††† A.††††††† CH2M-Hill W.A. #25 Design Proposal for Wastewater Plant Improvements Phase 2 (Sludge Processing, Effluent Pump Station No. 1 and Electrical Distribution)

††††††††††† Mr. McKune stated this is for the design process for the solid process handling system to conform to federal and state regulations, upgrade pump station #1, upgrade the electrical system on the wastewater plant side which is 15 to 20 years old.This is for the plans and specifications as outlined in the work authorization.

††††††††††† Mr. Fennell stated you estimate the work to be $250,000.First you are going to prepare the plans and then go out for bid.

††††††††††† Mr. Moyer asked what is the estimated construction cost of the project?

††††††††††† Mr. McKune responded $6 million, and is money that is on hand.

††††††††††† Mr. Fennell asked is there any discussion from management about what we are doing and where we are going?

††††††††††† Mr. Goscicki responded STS has been working with the engineer on your capital improvement program, the phasing of the projects and the cost of the projects.We agree these two projects are critical to the facilities.As we move forward, we will come with a fiscal plan to correspond with the capital plan and bring that back to the Board over the next several months [i.e., here is the program as recommended by the engineer, the options to phase the program given your resources, the risk in doing so, and the impact financially].We are working cooperatively with the engineer.

††††††††††† Mr. Fennell stated we have engineering services by several different groups [CH2M-Hill and STS].I do not have a problem with different recommendations.It is not necessary they all be resolved.I prefer diversity of opinion and we are capable of making these decisions.In some cases the Board has hired a different firm to review what we are doing to make sure we do not have a monochromatic viewpoint of things.

††††††††††† Mr. Eissler stated the $238,000 is your estimate for the scope of services and for things that will be charged accordingly.I have a problem with an open-ended agreement.I donít know how many hours this will take.

††††††††††† Mr. Hanks asked who sees the hourly back-up supporting documents?

††††††††††† Mr. McKune responded STS reviews the invoices.

††††††††††† Mr. Goscicki stated the 5% they have is a reasonable estimate for design costs.

††††††††††† Mr. Hanks asked can we request this be a not-to-exceed amount?

††††††††††† Mr. Lyles responded yes.If you want to provide this as a not-to-exceed, you are within your powers as Board members to do that.

††††††††††† Mr. Fennell asked is the $238,000 proportional to the $6 million?

††††††††††† Mr. Goscicki responded the $238,000 will be spent to design the documents for the $6 million project.

††††††††††† Mr. Hanks asked how long will it take to complete the project?

††††††††††† Mr. McKune responded approximately 120 working days from the award date except for delays.

††††††††††† Mr. Eissler stated I would like to approve the work authorization amended to not to exceed $238,000.

††††††††††† Mr. Hanks asked who owns the documents after completion?

††††††††††† Mr. McKune responded CSID.


On MOTION by Mr. Eissler seconded by Mr. Hanks with all in favor CH2M-Hill Work Authorization 25 in an amount not to exceed $238,000 was approved.


††††††††††† B.††††††† CH2M-Hill W.A. #26 Design Proposal for New Lower Zone Monitoring Wells (Effluent Disposal System)

††††††††††† Mr. McKune stated we have one 24Ē injection well that is 3,000í deep, and a requirement is to have a separate monitoring well to monitor any migration of injection fluids if that were to occur.After construction was completed, we had to dig a deeper hole to get it below the salt water and it was a retrofit to the existing well.It has lasted about 9 years and during the monitoring sequence we discovered there was a fracture and we have negotiated with DEP for 6 months to come up with a method of monitoring the well.This is the cheapest method.It requires grounding and abandoning of the deep zone monitoring well, and install a new free standing well.We need to go through permitting with the state and federal governments.

††††††††††† Mr. Fennell asked how much is it going to cost us for that monitoring well?

††††††††††† Mr. McKune responded $350,000 to $600,000 for the well through a competitive bid.Unfortunately there are only a few companies who do this type of work.††

††††††††††† Mr. Fennell asked how many wells do we have?

††††††††††† Mr. McKune responded two. [12Ē and 24Ē]Both wells were monitored during the mechanical intergrity testing process when it was discovered.

††††††††††† Mr. Hanks asked what percentage is the design phase?

††††††††††† Mr. McKune responded 10% design drawings/ 80% bidding/ 10% permitting.

††††††††††† Mr. Fennell asked can you put in one monitoring well to monitor two wells?

††††††††††† Mr. McKune responded the way they are spaced, no.

††††††††††† Mr. Eissler asked how much do we put down a well?

††††††††††† Mr. McKune responded 5 million gallons a day.

††††††††††† Mr. Fennell stated it bothers me if we lose that well.There may be a need for another well.Can we position it where it may save us some money in the future?Is that possible?

††††††††††† Mr. McKune responded you will need multiple zones, and we can project it to a site where we may put another well in.

††††††††††† Mr. Moyer asked are you running the risk if you use one well that has some incursion that they will shut both the wells down?I would not want to have a common well.

††††††††††† Mr. Fennell responded it is a bet that we will put it in the right spot to save us money later on.

††††††††††† Mr. Hanks asked how much is this injection well?

††††††††††† Mr. McKune responded $4.5 million.

††††††††††† Mr. Hanks asked does that include monitoring?

††††††††††† Mr. McKune responded as of 18 months ago it included monitoring.

††††††††††† Mr. Hanks stated if you have one well and there is a violation, is there any way to determine which well has the problem, or do you have to shut them both down?

††††††††††† Mr. McKune responded you can test each well and use one as 100% backup.

††††††††††† Mr. Goscicki stated with monitoring wells and deep injection wells, is it a well failure or a formation failure?If the formation is lost, they will shut down all the wells.You do not want to build another deep injection well.

††††††††††† Mr. Fennell asked what is the lifetime of the wells?

††††††††††† Mr. McKune responded 50 years.

††††††††††† Mr. Hanks asked do the design documents become the property of CSID?

††††††††††† Mr. McKune responded yes.


On MOTION by Mr. Eissler seconded by Mr. Hanks with all in favor CH2M-Hill Work Authorization 25 in an amount not to exceed $65,000 was approved.



SEVENTH ORDER OF BUSINESS††††††††††††††††† Approval of Invoices

††††††††††† Mr. Fennell asked if we donít approve these, are they paid?

††††††††††† Mr. Moyer responded you are ratifying the invoices.The checks are already processed.

††††††††††† Mr. Lyles stated these checks are cut and sent to various services, such as electric, phone, etc.The practice over the years has been to ratify the invoices.If there are any questions, staff can present clarification and in some cases get a refund.


On MOTION by Mr. Eissler seconded by Mr. Hanks with all in favor the February Invoices were approved.


FIFTH ORDER OF BUSINESS†††††††††††††††††††††††† Staff Reports

A.                 Attorney Ė Lake Maintenance Agreement with Lake Coral Springs Association

††††††††††† Mr. Lyles stated on the transition issues is the requested breakdown on historical costs and Mr. Moyer has informed me to take that up with Mr. Keller and we will get that information to Lake Coral Springs in order to bring back an agreement to be approved by them and obtain your signature.


B.                 Engineer

††††††††††† 1.†††††††† Monthly Water & Sewer Charts

The monthly charts are made part of the public record and attached hereto.


††††††††††† 2.†††††††† Update on Construction Analysis and Capital Improvement Plan for Next Five Years

††††††††††† This item was deferred until next meeting.


C.                 Superintendent

††††††††††† There being no report, the next item followed.


††††††††††† D.††††††† Complaints

††††††††††† There not being any, the next item followed.


FOURTH ORDER OF BUSINESS††††††††††††††††††† Discussion of Severn Trent Management

††††††††††† Mr. Fennell stated the District has gone through a lot of changes since I have been on the Board.It has gone from a paternalistic arm of the developer, and one of the things we do is buy services.Since my tenure on the Board we have changed our lawyer, our engineering firms, the management firm and the Board members every three years.CH2M-Hill was bought out even though they picked up the same people, and the same thing happened with the management firm.We have changed a lot and are continuing to change.There was a grand old structure long before this with the people who originally started the group.From now on, as a business, our management services may change at our consent or be changed, and that can happen with any of the types of services we do.We need to come up with a more structured way of evaluating the services we go after in an organized way.All the changes were not initiated by us, they sort of happened.

††††††††††† We have a sizable number of people who report directly to the Board, CSID employees.Going forward, we need to look at how we project that.It is important for us to have long service and there are issues of whom in effect they really work for.Do they work for us, STS, the engineering firm?Who do they work for and what are the procedures to handle any kind of problems?I did see a personnel manual a while back because there was an issue of terminating an employee.We do have some other general problems, and one of the things we have to understand is that we will probably end up changing services again and we should be reviewing them on a normal basis every few years rather than having continuing contracts that get automatically renewed to make a conscious decision.

††††††††††† As we know, there has been turnover in personnel in the management group, various issues of hurt feelings, and I propose that at this point no employee be terminated from CSID or transferred without direct approval of the Board.I want to make sure there are no problems with anyone coming forward and speaking their mind about what is going on.

††††††††††† Mr. Hanks asked who has the hiring and firing authority for District personnel?

††††††††††† Mr. Fennell responded theoretically, I, as president, and you, as vice president, probably do.We have a management service and our current manual uses the term ďat will.Ē

††††††††††† Mr. Lyles responded the agreement you have with Gary L. Moyer, P.A., that was assigned to STS with the Boardís approval, provides that the management company is responsible for appointment, supervision, and removal of all District personnel.While the ultimate authority rests with the Board as the legally constituted Board elected for that purpose, you have contractually given that responsibility to your District manager.While you can make a change in that, it will require a revision to the management contract in place.

††††††††††† Mr. Fennell stated that is one of my proposals.The second, it is convenient from a management standpoint to have employees ďat willĒ, it is poor management and personnel policy.We need an open door policy where people can bring forward their issues, either up through management or if necessary up to the Board.Even thought we have employee ďat willĒ issues, we need to define the offenses within the organization such as theft.Most organizations have Class I, II or III offenses that are written out.Mr. Jan Zilmer needs to come to the Board and make proposals for handling those things.

††††††††††† Mr. Eissler stated I believe this is in the personnel manual.

††††††††††† Mr. Moyer stated we have a comprehensive personnel manual that Mr. Zilmer put together and under those requirements of the contract STS has followed those requirements.We seldom, if ever, are at conflict with our employees.It is fine what you are suggesting, but I take some exception to the discussion of changing this employment ďat willĒ issue because there is a legal ramification.

††††††††††† Mr. Fennell stated we will leave that there, and we will talk about normal procedures for talking to people.Given the conditions we are in, I donít want someone who is talking to the Board about problems feel that they will be fired for doing that.Is that understood?

††††††††††† Mr. Goscicki responded yes, Mr. Chairman.

††††††††††† Mr. Fennell stated we are a big enough organization where we can discuss where things are going.There are certain offenses that are an obvious result in termination and unpaid suspensions.We need to be clear on what those are.In an organization like we have, it is important people can freely come forward with their concerns and issues, even if it is about another group within it.

††††††††††† Mr. Eissler asked do CSID employees report directly to the Board or the management company?

††††††††††† Mr. Moyer responded traditionally in this type of a management structure, the Board sits as the policy makers and management in whatever form it takes, be it contractor or you hire your own manager who is charged with the duties of implementing those policies you set.Mr. Fennell suggests because of the changes I do not disagree with for a period of time to give access to our employees, but truly the manager should have ultimate control over the productivity and personnel policies of the employees that STS or the manager will be managing.We are in a period of time where there is some discomfort.I recognize your concerns.I am hopeful that is not an issue in the long run.

††††††††††† Mr. Eissler stated there are a number of things such as the benefit package.CSID has their benefit package and STS has their benefit package.We are hiring a management company to manage this on a daily basis, which we are not going to do.We either have faith in our management company, as Mr. Moyer is saying, that we are paying to run the whole operation, but we have a dilemma that we have gone through a lot of resignations which always indicates a problem.Some of us have investigated the problem to get one side of the story.How do we do this?

††††††††††† Mr. Hanks responded by the simple statement the Board is open to other opinions.

††††††††††† Mr. Moyer stated I look back at where we have been and we have been blessed with having a group of people who have worked together their entire career.There are people in this organization, Mr. Daly, Mr. Zilmer and others, who have been together for a long time; and some of us have chosen different career paths.The reality is at some point will you be faced with the situation regardless of whether it is STS, another management company or another manager and employees who have been here do not like the management style of the new manager.That is the reality of where we sit today.We need to recognize those concerns of the employees, work with it, and if you are the court of last resort that is fine for a period of time; but ultimately that power needs to be left under the contract of whomever you hire as the manager.

††††††††††† Mr. Fennell stated I have to disagree.We can have other managers come in.It worked for you because you are a powerful individual, with good leadership skills.The fact is Mr. Moyer left; we had another manager, then another, and now another.I need to have our employees know that if necessary that is a last court of resort all the time no matter who is in charge; and that is not unusual for any kind of group of management anywhere today.It is unusual for a management group, by themselves, be the last court of resort.

††††††††††† Mr. Moyer stated the power was there, but we always tried to work with employees.Sometimes we did fire people.

††††††††††† Mr. Fennell stated that can still happen.We probably need to be more formal and is why I want to get our personnel manager involved.We need formal reviews of people.We need a way to tell people what kind of job they are doing, how to improve, put people on notice when they are not, and a way to say they donít agree and go up to the next level.I donít want a situation where the manager uses his power not for the good of the corporation, but for his own standings or his own viewpoints.That is the problem with absolute power.You need a court of resort.

††††††††††† Mr. Eissler stated we are entering into a $17 million expansion program.Stability is key, certainly with personnel and engineering.Our engineer is a STS employee [Mr. Roger Moore].Mr. McKune is a consultant that works out fine now and may for 20 years; however, when you go into a $17 million project I have to convince myself that stability is going to be here.I realize anyone can leave for whatever reason.If our engineer is with the management company, they can change the engineer and put someone else in.With a $17 million project it is too big a deal to chance that.

††††††††††† Mr. Goscicki stated one of the benefits you have is hiring CH2M-Hill as your engineer.One of the benefits of hiring a company is to bring those resources to the table.If you have one engineer on staff, and that one engineer decided to leave, you lose the entire institutional memory.When you invest in a company, whether it be engineering, legal or management, you have the institutional framework within the company to continue.STS is a good example.We had a turnover in managers, but we keep the organization moving forward and meeting our obligations.There are plusses and minuses to both scenarios.

††††††††††† Mr. Eissler stated from a personnel standpoint on the plant site, we do not have the talent in house so we hired a consultant which worked out very well.For the second plant site, it was a nightmare.There are plusses and minuses to both.We probably cannot afford our own engineer, that is why we draw from STS.This is something we should think about before decisions are made.We are spending the citizens of Coral Springs money and I want to spend it well.Stability is prime.You cannot have employees nervous about losing their jobs.There are a lot of things to think about and I donít believe we need to decide these issues today.I want to put them on the table.Mr. Moyer makes a good point.You may not want to do some of these things.They sound good on the surface and if you think about the long range it may not be the best thing to do.I want to come up with some kind of plan.

††††††††††† Mr. Hanks stated institutional memory is good if it is in tack.To compliment your record, there should be a full set of records at the District.If STS or CH2M-Hill decides to leave, we need to make sure we have enough records for the incoming services.

††††††††††† Mr. Moyer stated all of the records are yours.They are all public records.

††††††††††† Mr. Eissler stated we do our own billing, but we donít own the software for the billing.

††††††††††† Mr. Moyer stated you have the license for the software, and so does North Springs Improvement District.

††††††††††† Mr. Fennell stated we do not own the machine.

††††††††††† Mr. Eissler asked who signs the checks?We lost a few people who used to sign the checks.

††††††††††† Mr. Goscicki responded Ms. Karen Ellis is our accounting manager and resides down the street.

††††††††††† Mr. Eissler asked who is the second signatory?

††††††††††† Mr. Moyer responded the checks are signed by a check-writing machine with two signatures.The use of the machine and the protocol has been reviewed by the Districtís auditors and they do that every year to make sure there are sufficient controls on that.I donít want to you think I am signing 4,000 checks.

††††††††††† Mr. Hanks asked is this getting into a detail we donít need to be concerned with?We are looking at invoices and verifying the invoices.If there is something fraudulent---

††††††††††† Mr. Moyer stated that is the exposure STS has.They bear the risk.

††††††††††† Mr. Eissler stated we have auditors that do this every year.

††††††††††† Mr. Moyer stated yes sir.

††††††††††† Mr. Fennell stated as Mr. Hanks mentioned, I hope we have all the prints somewhere from an engineering standpoint.

††††††††††† Mr. Lyles stated it should not be just documents produced by CH2M-Hill, or STS.It should be documents we approve.

Mr. Goscicki stated we maintain a complete set of records for you and those are your records.

††††††††††† Mr. Fennell asked where are those kept?

††††††††††† Ms. Rugg responded they are across the street, and at offices down the street.

††††††††††† Mr. Moyer stated they are also stored in an off-site warehouse because we have 30 years of records.††

††††††††††† Mr. Hanks asked as a Board do we want to get into hiring and firing decisions, or do we want to focus on the big picture and the direction for the Improvement District?

††††††††††† Mr. Fennell responded it has to be both.I have had customers at these meetings complaining about various different problems.We are the court of last resort for our customers.If we get involved with every hiring and firing decision, I know where the problems are.We have a management system that cannot deal with consensus and leadership.I donít expect to see very many, but I want the employees to know if they have an issue they can come to us.We delegate our tasks, but in reality I have to sign the agreements.We have a responsibility that when services come and go we have enough of the core system in our group that we can take a change over in management, engineering, accounting or legal.We also need to do a formal evaluation every two years of each group.In some cases, we should be opening it up to bids to confirm to ourselves we have the right people here.STS may be the best group for us, and there is nothing wrong with them having some competition.We may have a new District manager where we did not have a choice or a selection of candidates, or maybe we want to do something else.We need to think along those lines.

††††††††††† Mr. Eissler asked donít we have to agree on the manager?

††††††††††† Mr. Lyles responded that is in your contract.They cannot submit someone to do the primary duties as District Manager without your approval.

††††††††††† Mr. Eissler stated right now, we are absent a District Manager.

††††††††††† Mr. Fennell stated we have given temporary approval for one, but we want to think over these issues and we have taken this opportunity to have a review of what STS offers us, what the costs are and benefits.I did ask for this information six months ago and I did find some information.We need to understand how much money we are paying them, what are the prices, what are the costs, what are the services we are buying, who are the people, and what are the savings.Without further ado,

††††††††††† Mr. Goscicki stated let me start by saying STS has no plans or designs to start firing any employees of ours, the districts, or shared employees.I know you received some information, and we have seen the information; unfortunately, some of the information is erroneous but there is no value in us going through point by point on those types of things; there is no value to us to fire employees.Our goal, as manager, is to look at how we can provide services efficiently, effectively, and your needs are met through District employees, our employees and shared employees.As I go through the presentation the allocation of resources has been scrambled over the last 8 to 9 years, and this is the opportunity to tell you who works for who and how the structure is set up.

††††††††††† I will talk about STS, the resources we have locally and nationally, the issues you asked us to discuss and how to move forward together.

††††††††††† CSIDís primary role is as a water utility and drainage service provider.You are operating a water and wastewater system, a drainage system for over 9,500 utility customers, 85 miles of canals, 65 employees of which 44 are CSID, 12 are shared employees, lift stations, pipes, force mains, hydrants.You have a lot of infrastructure because you are a utility and drainage district.

We talked to some of the Board about STS's core value and we hold this in high regard, and I bring this out due to concerns of staff and the Boards.ďWe value high performance, hard work, honesty and teamwork.We hold ourselves accountable to the highest standards of ethics, trust and quality.We respect and always strive to do what is right for our customers, our employees, suppliers and community.ĒWe take this very seriously.

††††††††††† STS is the company you are contracted with and it is a US company based in Texas, with our headquarters in Fort Washington, Pennsylvania outside of Philadelphia.We have 5,000 employees nationwide.We are owned by Severn Trent PLC, which is a British company, which owns Biffa, Severn Trent Water, Severn Trent Labs, Severn Trent Systems for IT and utility billing.Severn Trent PLC has stayed close to our knitting.We manufacture water and wastewater equipment, filtration equipment and metering equipment.Contract operations manage water and wastewater facilities around the world and we have 600 facilities.We have a pipeline services company for utility pipelines, and management services which is the company you are contracted with.I oversee contract operations and management services in Florida.We also have a technical services group for environmental health specialist, personnel specialist, planning and process control, transition, etc.Mr. Scott Jones, who is with us today, is part of the technical services group and worked with Mr. Moore on process efficiencies here.Our largest operations are in Florida, Texas and the Northeast.

††††††††††† On management issues you asked us to discuss, we have two contracts with CSID; one is from 1996 for management services and fiscal management services.In 1996 management was a $135,000 contract and fiscal services was $86,000 for a total of $212,000.The scope of services include general consultation, coordination, policy implementation, manage and attend meetings, budget preparation and analysis, negotiation of contracts and administration of contracts, consultation on operations and maintenance, staff supervision and records management on the management services side.On the fiscal side, accounting, budgeting, risk management and insurance, special assessment rolls maintenance and methodology, utility billing [was part of our contract initially] and human resources management.

††††††††††† The STS personnel actively involved in this District is Mr. Gary L. Moyer, Mr. George Keller of 1 year with STS however has 27 years experience, myself for 3 years, Mr. Roger Moore for 10 years, Ms. Jean Rugg in records management for 8 years, Ms. Karen Ellis in accounting for 8 years, Mr. Michael Szymonowicz in fiscal analysis, assessment methodology and rolls, and budget analysis and review for 8 years, Mr. Luis Hernandez, Ms. Reesa Weaver and Ms. Luvina LaCap in assessment roll work, Ms. Scott Jones and Mr. Mike DeCosta in technical support, and Mr. Mike Murphy for 15 years.

††††††††††† The District is managed through contract services with STS employees, CSID employees and employees shared with other districts.You have an attorney, Mr. Lyles, and your engineer, CH2M-Hill.Your shared employees are not just CSID employees.They get a paycheck from CSID, North Springs Improvement District [NSID], some from Turtle Run, Pinetree, Sunshine and STS.This is one of the challenges this District and we, as your manager, are facing.These employees cross over multiple lines.These employees include field technicians, maintenance, field supervisors, utility billing, and human resources for a total of 12.†† On the CSID team of the 56 employees 44 are sole employees, 12 are shared and from the contract employees [STS, your attorney, CH2M-Hill] 18 to 20 individuals are actively involved.From 1996 to today some of these responsibilities have shifted between STS and CSID.We have taken on some responsibilities and lost others which evolved over time.In 1996 we handled everything except operations.As we move forward, accounting is a shared responsibility; utility billing was a shared responsibility and Mr. Daly moved in 1998 from STS to CSID/NSID/other employee; human resources, Mr. Zilmer, moved from STS to CSID/NSID/other employee.Records management is still STS, the physical operations is CSID and we provide operational consulting advice; budget fiscal management is STS responsibility.

††††††††††† Mr. Fennell asked who is the Director of Operations?

††††††††††† Mr. Goscicki responded Mr. Roger Moore with STS.The sharing of employees has blurred some of the responsibilities and reduced efficiency, and is one of the areas we want to work on.We need to clarify these responsibilities and what is raising some of the anxieties in terms of goals and roles because they are serving multiple masters [multiple districts and STS is contributing funds for use of these employees on other projects].It is not necessarily bad, but we need to clarify the roles so everyone understands what those roles are.STSís fee structure from 1996 to today has remained flat.Our fee was $221,000 and today is $242,000 and we rebate back $20,000 for shared resources.

††††††††††† Mr. Eissler asked is it also true that the $221,000 does not include Mr. Moore?We get billed directly for Mr. Mooreís salary.

††††††††††† Mr. Goscicki responded that includes his salary.

††††††††††† Mr. Fennell stated we have two positions that are key, District Manager and Operations Manager, and accounting.

††††††††††† Mr. Hanks stated Mr. Moore is also involved in NSID and Sunshine.

††††††††††† Mr. Fennell stated there is roughly $221,000 in management fees; how much is accounting?

††††††††††† Mr. Goscicki responded that is the sum total for all management.Our fee has remained flat.The increase in cost and services has been picked up by the District by taking these employees on and moving forward that way.We need to look at reconciling the services being provided to the District by shared employees and by STS.I am not sure the fees reflect the services you are expecting from us, what we are doing, and if the fee is appropriate.

††††††††††† Mr. Fennell stated we asked what percentage of time people worked for us.It was 10% for the District Manager.That can be an issue if we are paying half of his salary.Obviously, that varies from time to time.

††††††††††† Mr. Goscicki stated it does and that is why I listed the individuals you do not see that are spending time and effort on District projects on a regular basis.This is the behind the scenes work you hire a management company to do for you.

††††††††††† Mr. Fennell stated we can cooperate with other districts around us, but we cannot become the super district.

††††††††††† Mr. Lyles stated you can enter into Interlocal Agreements to jointly exercise power and discharge responsibilities with other government entities such as other improvement districts.As part and parcel of that there could be a donor relationship to a smaller district that does not have the ability to meet you half way to borrow or purchase some of your services.

††††††††††† Mr. Fennell stated I am not sure from a legal standpoint how much we can take on.Mr. Zilmer is working as the personnel manager here, but also for NSID and could be for someone else in the middle of the state.I do not know if I have exceeded by mandate from the state.I did exceed where I want his loyalties to lie, which is CSID as opposed to other areas.

††††††††††† Mr. Lyles stated as I look at your newly adopted special act [2004-469] it uses another word besides Interlocal Agreement or contract, it also says to cooperate with.As long as you stay within the four corners of the duties you have to own and operate drainage systems and water management, you can cooperate with or contract with other government agencies to jointly discharge some of those responsibilities.

††††††††††† Mr. Hanks stated NSID provides water, we can work something out with NSID to share operators to cut back expenses and overtime, etc.

††††††††††† Mr. Moyer stated the mode of operation for the initial three districts in Coral Springs was to recognize where we can provide those types of efficiencies, and gauge the amount of time available to the employee to serve each of the entities without overburdening the employee.††

††††††††††† Mr. Hanks stated balancing that with the broad range of experience for the particular job at hand.

††††††††††† Mr. Goscicki stated as Mr. Fennell pointed out, these employees are shared among a number of districts and who is looking out for which district.These employees are multiple District employees and I am sure is some of the confusion that is out there.

††††††††††† Mr. Hanks stated STS contract reads that you are responsible for the hiring, firing and supervising of these employees.We write the checks and you tell them what to do.

††††††††††† Mr. Fennell stated we could also be in competition with you because CSID can contract to manage other groups if we wanted to.We have other people doing jobs for other districts.The path of the money is a little mysterious.

††††††††††† Mr. Goscicki stated they are doing it on your behalf.They are not working as CSID employees on behalf of NSID.They are working as NSID employees.They get three paychecks.

††††††††††† Mr. Eissler asked how do I get a job like that?

††††††††††† Mr. Goscicki responded now you see our apprehension is trying to bring some understanding to the issue to make sure we have an understanding of the roles and responsibilities.

††††††††††† Mr. Fennell stated I want them to be loyal to CSID.

††††††††††† Mr. Moyer stated as it relates to the field operations, generally if you ask any of the employees who they work for, they will tell you they get three paychecks, but they work for the districts in Coral Springs.If there is a problem in CSID, we will pull who we need to from NSID or Sunshine to solve the problem, and vice-versa.They are interchangeable and we have been able to leverage a lot of expertise without hiring redundant staff in three districts.

††††††††††† Mr. Hanks stated it is a pot of employees and STS is operating as management.

††††††††††† Mr. Goscicki stated STS as management, was the facilitator of that to make sure the allocations were there.Mr. Moyer moved to Orlando a number of years ago, Ms. Archer moved to Tennessee two years ago, and we had a couple of other employees leave recently.You are seeing new faces and getting nervous.The common denominator that linked them together is the management company and they are seeing these changes.We understand that and appreciate the anxiety.We think it is a valid goal for the Board and STS to go through this process to get clarification to make this work affectively where everyone understands the level of service they are getting and what our roll is in making that happen for you.The shared employees are Ms. Susan Walker, accounting; Mr. Dan Daly, utility billing and 1 shared and the meter readers; Mr. Jan Zilmer, human resources.

††††††††††† Mr. Fennell stated I understand the viewpoint we had before and even more how we got here.What kind of agreements do we have with NSID?Do we have any?Are we just cooperating?Is anything written down?

††††††††††† Mr. Lyles responded there are no specific agreements with NSID.

††††††††††† Mr. Fennell stated this is more confusing than I knew we were getting into.

††††††††††† Mr. Lyles stated the reason you do not have any agreements with NSID is because you have your employees and some of them are only working part of their time for CSID and they get paid on a prorate basis by CSID for what they do, and NSID pays them for what they do for NSID.If they were your full time employees and you leased them on an intermittent basis to NSID there would be a necessity for an agreement between the two districts.That is not the breakdown or situation you currently have.

††††††††††† Mr. Fennell asked does Mr. Zilmer get three paychecks?

††††††††††† Mr. Goscicki responded at least two.

††††††††††† Mr. Fennell asked who does he think he works for and how do you fund such things as retirement and benefits?Does his paycheck vary from week to week?

††††††††††† Mr. Goscicki responded he is on salary.

††††††††††† Mr. Daly stated if an employee is making $70,000, has been here for 20 years and works for one District that is $70,000; if he works for two it is $35,000 for each District.

††††††††††† Mr. Fennell asked where does he know where is job is each week?

††††††††††† Mr. Daly responded it depends on how muddy the water is.

††††††††††† Mr. Goscicki stated that shows you the challenge on the management side.

††††††††††† Mr. Eissler stated salary and benefits are all allocated between the districts.

††††††††††† Mr. Moyer stated the budget will give you those figures.

††††††††††† Mr. Eissler stated if you look at the budget, you say, ďThis doesnít make sense.ĒI am sure STS would like to change all that.

††††††††††† Mr. Goscicki stated we want to make sure the Board understands and the employees understand and we understand the expectations.NSID can change their retirement plan, benefit plan, etc.Right now they are the same, same personnel policies, benefit package, etc.You can change; they can change.Are these full time employees, or two sets of part time employees?Do they get full time benefits or part time benefits from both districts?There are human resource management issues that need to be put to rest and resolved.

††††††††††† Mr. Fennell stated it can get more complicated if they are working for STS, the districts or jumping back and forth.

††††††††††† Mr. Goscicki stated STS is not giving the shared employees a paycheck, but we pay the District $20,000 for a little of Mr. Dalyís time and Mr. Zilmerís time.

††††††††††† Mr. Fennell stated STS also pays us rent for use in this building.We are also in a service business to ourselves and other groups.This is a question we need to think about.How much do we want to be in the service business for other groups?

††††††††††† Mr. Lyles stated you are not in the management service business.There are a pool of employees here and you are getting part of their services and paying for part of their total employment costs and other districts are paying their part on a pro-rate service incurred basis, but you are not paying anyone to work in some other district.That is my understanding of how the accounting has been, how the employees are set up and whom they are working for.You are not in the management business.

††††††††††† Mr. Fennell stated this comes down to what business are we in and the issue of the need to share what employees.

††††††††††† Mr. Eissler stated you cannot afford to have all full time employees in this operation.It will be too expensive.This is where the management service comes in and what it does for us.

††††††††††† Mr. Goscicki stated we need to come back with some structured options as to how to clarify this.These are all good options.What you are doing now, there is nothing wrong with it.We need to tidy it up and make sure we all have the same understanding.We also can present to you other options.

††††††††††† Mr. Eissler stated I think we have 25 miles of canals, not 85 miles.Can you check that?I would be curious.

††††††††††† Mr. Fennell stated we pay roughly $240,000 a year and you will re-evaluate how you bill us.Engineering bills us on an hourly basis.I donít know how I am getting billed here.

††††††††††† Mr. Goscicki stated it is a lump sum basis 1/12th each month.I am proposing to look at the $240,000.We need to come to an understanding of the shared employees, how they work, and what our role is?I have concerns as your manager where you have a full time accountant and we still have fiscal management responsibilities.I would like to clarify that because I donít want to be responsible for what your accountant does unless I can devote enough of our management time to oversee and manage that employee.If that is not the desire of the District we can reduce our fee and provide general oversight and budget preparations.

††††††††††† Mr. Fennell asked who is deciding who shares an employee?It has mostly been management services.

††††††††††† Mr. Moyer responded that is correct.The evolution of shared employees has reduced over the years.At one time CSID had 2,000 people and NSID had 500 people, that type of talent build you could not afford.CSID has some charged employees, but is it half of what it used to be.As each District grew we were able to add those individuals.Those shared employees are skilled positions than operating positions.

††††††††††† Mr. Hanks asked are we trying to identify the key services and key positions?Are we looking to identify areas of cost savings?Are we looking at all of the above?

††††††††††† Mr. Fennell responded we are reviewing the services for a couple of different reasons.How policies affect our employees?Also understand the old guard is gone.

††††††††††† Mr. Eissler stated when Mr. Moyer was here, I was comfortable and what he said was fine with me.Now we are going through a change.Mr. Moyer is not with us full time.Some employees are upset.Are we doing the right things?Can we do something else?Prior to this, I donít think it would have ever come up.

††††††††††† Mr. Fennell stated we just grandfathered everything in.

††††††††††† Mr. Moyer stated I request the Board, as you go through this analysis, to keep it in the perspective of reality, and identify the options [is it STS or another manager].A lot of the issues you will wrestle with are the same.I frankly think STS because of the extensive utility background is a nice fit for a utility operation.They may not be the greatest from a District management perspective, but they do have that expertise.They brought on Mr. Keller who has a more impressive background than I have.You need to give Mr. Keller the opportunity to tell you what his credentials are and marry those credentials, his governmental service credentials, with STS utility operating credentials.I think it is a pretty good team, but that doesnít mean you cannot look at other options.All those options come through the front door with the same type of problems or opportunities.That is where you are at where I see it.

††††††††††† Mr. Fennell stated we had a management change, and we have to re-evaluate it periodically.We want to look at what we get from STS.How much are they costing us?Where are those funds?Is there someone else better?Will we be better off doing it ourselves?Should we hire our own District Manager?Hire our own operations manager?Should we have an agreement with NSID sharing certain positions and we will pay half the salaries?We need to formally have that to move forward.We need to have viability.We need to have another management group come in.You brought up a good idea about the finances.We need to know what those services are going to be.In the corporate sector we did our own finances, but every six months someone came in from headquarters and did an internal audit, and there was an external audit beyond that.We need to structure those things.We need to decide how we want to move forward.There are other issues, such as engineering records being on hand.As a Board, our job is to hire and review management.

††††††††††† Mr. Eissler stated STS might be the best company we can have.We need to go through the exercise to be sure.

††††††††††† Mr. Goscicki stated we suggested holding a workshop with the Board.One of the things you are grappling with is, ďWho do I have to manage the District, and qualify and quantify what that management means.ĒAs your current management company we can facilitate the definition of what the management of the District entails, what you want to do internally, what through consultants, what through contract management, internal staff, shared staff.That is an important first step so you are comfortable with moving forward.Once the map is drawn and you want to test the waters, we are happy to compete with anyone.We think we are the best.

††††††††††† Mr. Fennell stated you may well be.I would like to see us have an open contest every two to three years.There is also a strong case to hire two employees with NSID and we are done.If we are getting these other kinds of resources that a large company brings, we need to see that a little bit more.

††††††††††† Mr. Goscicki stated that is part of the conversation we want to have with you.As Mr. Moyer mentioned, one of the strengths we bring is utility management and operating expertise.Our contract was written in 1996 with Gary Moyer, PA and there is one line about oversight of operations.We would like to talk about how we can help on the oversight of the utility side of the operation, and formally bring these services to light.There is nothing in our contract that says we have this technical service support group and we will bring them in to do evaluations.We do it because we have that level of expertise.Those are the things through a workshop we would like to bring forth.What are you looking for in a manager?If you are looking for a management firm to bring utility expertise to the table that is an important differentia.

††††††††††† Mr. Fennell stated we need the workshop to decide what we want to do.We need to reconfigure where we are going with management services and how we review all our contract services.We also have an employee issue and we need more feed back from them.We need to understand their concerns.Mr. Eissler has been doing that.What have you found out?

††††††††††† Mr. Eissler responded there are concerns.Anytime you go through a transition people have to know whom they work for.It is very hard to serve two masters.They get nervous.In the middle of your career the thought of not having employment is scary, whether it is real or imagined it doesnít matter.I am concerned about that.I am concerned about people and without people you have zip.Before we do any changes in our contracts, we should have a workshop, as you suggested, and go over these issues.I believe it will iron itself out and things will be fine.We need a better understanding of who does what, how we want to move forward and what STS would like to do.Maybe there is more you can do for us.Maybe the price is right.

††††††††††† Mr. Fennell stated at the workshop I would like to have some of our basic CSID employees.

††††††††††† Mr. Goscicki stated the senior decision makers of CSID, Mr. Zilmer, Mr. Daly, etc.It is appropriate and in a workshop format you want to bring all these ideas to the table.

††††††††††† Mr. Fennell stated they should be a part of the concept of how we want to move forward or if we stay the same.In the end, those are the people I am counting on to turn the pump on at the right time, and they need the feeling they are working for a good organization.

††††††††††† Mr. Daly stated it is a good idea.In the past we knew whom we were working for and the integrity of people.With the changes, there is no foundation for integrity, trust, etc.Between Mr. Moyer and Ms. Archer we knew where we stood and what was expected and how to get there.

††††††††††† Mr. Fennell stated you are working for an organization where management could change.We need to look into that and probably have more of an institutional structure as opposed to charismatic.††

††††††††††† Mr. Goscicki stated we would like to bring in a facilitator who does this professionally.We can poll the Board individually to see what dates work.

††††††††††† Mr. Fennell stated I have spring break the middle of March.Who is going to set this up?

††††††††††† Mr. Goscicki responded we will.Iíll have Mr. Keller get with each of you to come up with a date that works for everyone.Iíll get with the facilitator and we will get it scheduled as soon as possible.

††††††††††† Mr. Fennell stated this will be a good four hours or longer.

††††††††††† Mr. Eissler stated I would like to have counsel present.

††††††††††† Mr. Lyles stated my pleasure.

††††††††††† Mr. Hanks asked will you be able to get back to us by the end of the week with a date?

††††††††††† Mr. Goscicki responded sure.


SIXTH ORDER OF BUSINESS††††††††††††††††††††††† Supervisorís Requests and Audience Comments

††††††††††† There not being any, the next item followed.


EIGHTH ORDER OF BUSINESS†††††††††††††††††††† Adjournment

††††††††††† There being no further business,


On MOTION by Mr. Eissler seconded by Mr. Hanks with all in favor the meeting was adjourned at 6:03 p.m.




††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††† ††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

Glen Hanks††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Robert Fennell

Secretary††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Chairman