MINUTES OF MEETING

CORAL SPRINGS

IMPROVEMENT DISTRICT

 

            The regular meeting of the Board of Supervisors of the Coral Springs Improvement District was held on Monday, July 16, 2007 at 4:00 p.m. in the District Offices, 10300 NW 11th Manor, Coral Springs, Florida.

 

            Present and constituting a quorum were:

 

            Bob Fennell                                                President

            Glen Hanks                                                Secretary

 

            Also present were:

 

            Dan Daly                                                    Interim Manager

            Ed Goscicki                                                Co-Manager – Severn Trent Services

            Dennis Lyles                                               Attorney

            John McKune                                             Engineer

            Jane Early                                                   CH2M-Hill

            David Green                                               CH2M-Hill

            Isabello Rodriguez                                      Ch2M-Hill

            Randy Fredericks                                       Field Supervisor

            Doug Hyche                                               District Staff

            Roy Gold                                                   Vice Mayor of Coral Springs

            Kay Woodward                                         Severn Trent Services

            Jan Zilmer                                                   Severn Trent Services

            Numerous Residents

 

FIRST ORDER OF BUSINESS                         Roll Call

Mr. Goscicki called the meeting to order and called the roll. 

 

SECOND ORDER OF BUSINESS                    Approval of the Minutes of the June 18, 2007 Meeting

            Mr. Fennell stated each Board member received a copy of the minutes of the June 18, 2007 meeting and requested any additions, corrections or deletions.

            Mr. Fennell stated on page seven, in the second paragraph from the bottom of the page “$10,000” should be “$500,000”.

            Mr. Hanks stated on page eight, “ASE” should be “ESE”.

            Mr. Hyche stated on page 13, the fourth paragraph should say “Approximately $1,200 to inspect.  I can check on the cost for a pressure tank.  You are required to inspect the fuel system every five years.  The cost for inspection was $100 per tank after all was said and done”.

            Mr. Daly stated at the last meeting, Ms. Woodward and Mr. Zilmer were in attendance and will be attending future meetings.

 

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor the minutes of the June 18, 2007 meeting were approved as amended.

 

THIRD ORDER OF BUSINESS                       Public Hearing to Consider Adoption of the Budget for Fiscal Year 2008, Resolution 2007-5 and Levy of Non Ad Valorem Assessments, Resolution 2007-6

            Mr. Fennell stated Ms. Zich could not make the public hearing but sent me an email.  She agrees to stay on the Board permanently.  Ms. Zich is a good contributor to our accountants.

            Mr. Fennell opened the public hearing.

            Mr. Hanks asked is this for the General Fund Budget?

            Mr. Fennell responded yes.  We are responsible for adopting two budgets; one for the General Fund and another for the Water and Sewer Fund.  The General Fund Budget is for the canals and pumps.  The way we collect revenues is by charging each household a certain amount of money for water.  We spent the most money on the canal bank maintenance.  The canals were built by us and we are responsible for them.  The city does not maintain them nor does the state or the federal government.  We report to SFWMD and have certain restrictions put upon us in terms of how much water we can pump out and the quality of our water.  You and I pay for this.  The canals have been here for 55 years.  The first thing the developer did was to dig out the canals.  Then they created a public agency, which was the CSID to take care of the bond issues.  There are now 11,000 homes and you and I are now responsible for the canals, which were turned over by Westinghouse.  Every individual within the District pays an equal assessment.  Part of this has to do with the fact of us having severe flooding issues. 

            Even though we had some severe wind hurricanes in the last couple of years, we have not received much water from them.  What astounded us was the number of trees damaged and went into our canals.  It cost us millions of dollars to remove the trees from the canals, which diminished our reserves and had us wondering what could happen next.  In 1979, we did not have as many trees around here.  We recently found out a significant amount of trees were planted by homeowners along the canals.  Those trees fell down.  We wondered what would happen if in fact they blocked our pumps and culverts.  We commissioned an engineering firm to look at the original water flow plans to see if we have any problems.  From a study costing us $175,000, we found out we need to maintain our pumps and the water flow through the culverts and making sure they are adequate.  If they are not, our water is going to back up to our houses. 

            We paid off our taxes and bonds and were down to an assessment of $90 per year.  However, Hurricane Wilma came along and depleted our reserves.  Our plant is 35 years old.  We have been replacing and/or refurbishing the pumps and engines.  Those of us who live east and west of University Drive, live in separate districts.  Each one has a pump station.  If the pump station does not pump, we are flooded.  Therefore, we want to make sure those pump stations work as well as making sure there are no blockages.  This is the primary responsibility of the District.  The safety of our property and lives are the foundation of this District.  Above that, we make sure those canals are beautiful.  We depleted our reserves in order to remove the trees from our canal banks.  Thank goodness we had this money because the first thing we had to do after the hurricane was to hire a contractor to remove the fallen trees.  In order to do this work, we had to go out for bids.

            Mr. Hanks stated we needed to have the money in hand as opposed to borrowing money.  Part of the discussion we went back and forth on was in regards to the appropriate amount of reserves to have on hand.  We know we are in an active hurricane season and have to quickly build those reserves back up.  Being an engineer, I do not like sitting out there without a Reserve Fund.  This is why we sent out the notice informing the residents there would be an increase in the ad valorem assessments.  We are not seeing this as a long-term increase but as a short-term increase to bring the reserves back up to a point where we are comfortable should we get hit with another hurricane.

            Mr. Fennell stated we directed our engineering firm to prepare a report on the status of our canal systems.  I want someone from the engineering firm to discuss the results of this study.

            Ms. Early asked on the pump stations?

            Mr. Fennell responded yes.

            Ms. Early stated I have a copy of the report.  Our Mechanical Engineers evaluated all of the pump stations and prepared a summary of what needs to be refurbished and the costs involved, which we provided to the Board. 

            Mr. Hanks stated you found the buildings and roofs were 30 years old and recommended repairs being made to the roofs and having hurricane proof doors.

            Ms. Early stated kids vandalized the buildings.

            Mr. Hanks stated we had dry hurricanes, which gave us 6” of rain.  You see staff pumping down the water into the canals.  If we were to get hit by a hurricane, which was a huge rainmaker, those pump stations would become useless.  We are looking at what we can do to provide a level of safety to the residents.

            Mr. Fennell stated we need somewhere between $500,000 to $1 million to do such improvements as replacing fencing, trash rack replacements at the pump station, replacing bypass lines and seal pipe penetrations.  These improvements recommended by the engineers.  We already spent down our reserves.  We are currently in a position where we did not want to go out for long-term bonds because frankly we do not need much money.  Furthermore, it costs a great deal of money to borrow in order to pay off Bond Counsel and other professionals. 

            The question was what we wanted to do.  We decided to increase the per unit assessment over and above what we originally planned, which was $150 or $12 to $13 per month.  We want to increase the assessments so we can afford to do these improvements right now and build up the reserves, although our reserves will not be back up to where we want them to be.  When we had to hire people to remove all the trees from the canal banks, we discovered they wanted to be paid immediately.  We ended up bidding for this work, which ended up saving us some money.  However, this caused us a partial delay.  The bottom line is no one helped us pay for this work and we had to come up with the money.  The city certainly did not assist us.  Luckily we had the reserves at the time in order to get things done.  The budget we are proposing is a compromised budget, which will start funding back some of our reserves and paying for the $500,000 we expended.  Unfortunately, this requires us to raise assessments.  We will only assess what is needed and even though our property values increased, our assessments did not increase with them.  They only increase in times like these.  Therefore, this is a need based assessment. 

            For the benefit of the audience, the Board is made up of three supervisors.  We are elected to our seats.  We usually only meet once or twice a month and receive supervisor fees of $200 per month.  We live in this area and want to make sure it is safe, we have good water and the canals are properly maintained.  We do this as a public service.  In terms of what we proposed for the fiscal year 2008 budget, the most important items are the two items at the bottom of the page.  This refers to the capital improvements, which amount to $580,000.  However, what we are actually doing is refurbishing.  The other item is the reserves for R&R, which are $301,000.  Frankly, we have been spending these reserves, which we are not happy about.  Both of these items total $800,000.  At this time, I will open up the floor to comments.

            A resident stated when you were talking about the pumps, there are two pumps.

            Ms. Early stated there are two pump stations and four pumps at each station for the entire District.

            Mr. Hanks stated the District runs from Royal Palm Boulevard south to the C-14 Canal and from Margate west to the Sawgrass Expressway.  This includes the Coral Square Mall, Shadow Wood, Oakwood and the Oaks.  Around the outside of the city, each district has a berm, which is designed to keep water from other cities out.  For example, Margate does not have a pump system like we do.  We are required by regulations of the state and national level to maintain our own runoff.  We have to provide treatment lines for it and are allowed to discharge at a set rate.

            Mr. Goscicki stated this setup is similar to New Orleans.  However, the difference is we are not sitting below sea level. 

            Mr. Hanks stated whatever comes from the sky we have to worry about.

            Mr. Goscicki stated you do not have to worry about the ocean coming in as the water will have to rise up 12 to 13 feet in order to get in here.

            The resident stated I assume if a hurricane hits, the water will drain.

            Mr. Fennell stated the only way the water can drain out is if we pump it out.

            The resident asked how many inches of water can we handle without it flooding?

            Ms. Early responded the District has a great deal of storage.  This is why in the winter months, we try to hold the water, while in the rainy season, we try to pump the water down.  We try to be prepared so all of a sudden, we do not have an influx of water. 

            Mr. Frederick stated rainfall events like you see on the news in other areas flood with just a couple of inches of rain.  We get two inches of rain every day.  On the fourth of July, we received 4” in rain.

            Ms. Early stated NSID received 12.5” of rain in the month of June.  The water did not end up on the road because they pumped two billion gallons of water out.  This is a great deal of rain in one month.  NSID pumps to the L-36 Canal while CSID pumps to the C-14 Canal.

            Mr. Fennell asked when are we in trouble?

            Mr. Goscicki responded the District conserves as much water as it can.  During the wet season, we are hesitant to draw down lines in the canals to keep the water level to where you are maintaining as much supply as you can but still be conservative so if you get some rain, you can fill up the canals but not overflow it.  During the dry season, we are not pumping any water.  We try to build as much storage as we can.  This is very much a balancing act of trying to anticipate the rainy season and keeping the storage as high as we can but leaving enough room for heavy rainfalls.

            Mr. Frederick stated in order to pump water out of the C-14 Canal; SFWMD has to approve it.  Unless you have plenty of rain but the lake is not getting rain, there is no way to take the water back to them.

            Mr. Goscicki stated this is a big issue in South Florida because the land is flat and there are limited amounts of storage.  We will get all of this rainfall in the next couple of months but not have much storage so we try to maximize every little bit of storage as we can.

            The resident asked what about going through the everglades.

            Mr. Goscicki responded this is the big question in terms of whether we can clean the water well enough to get it to the everglades.  We also need to compare this to the costs involved in doing so and who will pay for it.  This becomes a regional statewide issue in terms of how to manage this water supply.

            Mr. Fennell stated there are a couple of instances where water is back pumped into the everglades but this conflicts with an Environmentalist’s viewpoint of having pure water.  Sometimes rain water is not pure enough for the everglades.  Probably the smart thing to do is to pump processed water from a Water Treatment Plant.  However, this is just a small amount.  The amount of water we actually have in the canals is a large amount.  If SFWMD wanted to do this, we could back pump, if they have pumps there.  Currently, this is not the way the thinking is going.  I agree with you.  SFWMD should look at ways of retaining more water and holding it.  Frankly we receive a great amount of water and most of the time; we are more worried about flooding than having a drought.  However, 20% of the time or once every five or ten years, we have a drought like this and then suddenly we get concerned.  The concern is not so much for us than it is for our metropolitan areas towards the ocean.  What happens with them is when the water drops; they get saltwater intrusion into their well fields.  Most of the wells are shallow wells 100 to 150’ down.  We do not have this problem here. 

            Our well field goes up and down during the drainage seasons but we store water and release it when SFWMD wants us to.  We have two issues; how to conserve water and how to make sure it stays.  It looks like 15” of rain is the maximum we were originally designed to hold over a two to three day period.  The analysis run by our engineering group recommends some improvements, especially for the east area for drainage.  The north part of our area goes through canals and if you block any of those canals, the water does not reach the pumps.  I moved here in 1979 and two months later we received 15” of rain from a tropical storm.  The water was backed up along my street.  Ms. Zich had flooding in her garage.  This is why we are so cognizant of maintaining these structures to make sure they are working and our budget.  We want to make sure we adequately fund the pumps so we can pump out the water when we need to and have the money on hand to handle these types of emergencies. 

            CSID was well designed versus other areas by limiting the number of homes in each community and having strict housing specifications.  When people built houses here, they had to specify the type of drainage, storage and percolation going into the ground.  Nevertheless, going forward for next fiscal year, we directed our engineers to come back to us with an assessment.  It could cost us $4 million or $10 million to have concrete improvements made to the drainage system, especially in the east basin where we feel there are issues and in the north part where the houses are older.  New Orleans had issues with flooding from surrounding drainage districts when their walls were blown out.  What assessment amount are we going to charge the residents?

            Mr. Goscicki responded the new proposed assessment is $187.70 per unit per year for a single family resident compared to $150.71, which is on the current tax bill.  This means, you are looking at a $37 increase from last year to this year.  Our primary goal is not increasing expenses to spend more money on a day to day basis.  We are rebuilding reserves to be able to deal with the next major storm after depleting our reserves after dealing with the last one.

            Mr. Hanks asked with the increased assessment amount, how much revenue will be generated?

            Mr. Goscicki responded it will generate $400,000 in additional revenue over last year’s assessment.  To put this into perspective, the amount of money the District spent dealing with the last hurricane was over $3 million, of which we received reimbursements of over $1.5 million from the federal government.  We are trying to build up this reserve by generating another hundred thousand this year and another hundred thousand next year.

            Mr. Fennell asked are there any comments from the public?

            A resident responded yes.  I live on 100th Drive in back of a canal, which looks like a sewer.  People come and clean it but it looks awful.  

            Mr. Hanks asked is this off of Ramblewood Drive?

            Mr. Fredericks responded from here you make a left on Ramblewood Drive and your first right onto 100th Drive.

            Mr. Fennell stated we will talk with you after the meeting.

            A resident asked did you go through a bond issue?

            Mr. Fennell responded we went through a bond issue for the Water and Sewer Fund.  We spent a great deal of money borrowing bonds.

            Mr. Hanks asked what fees were we looking at?

            Mr. Goscicki responded your fees were 3% to 4% for Bond Counsel and Underwriter and another fee for the Engineer’s Report.  You are looking at significant dollars to move forward with a bond issue.  This is for a much larger bond issue.

            Mr. Fennell stated it is not a big enough bond issue.

            Mr. Goscicki stated the other concern the Board discussed was a timing issue.  This Board was fortunate enough to have monies in reserves to be able to re-build our equipment with the hurricane issues.

            Mr. Daly stated you had a draw in 2006.

            Mr. Goscicki stated correct.  It slows the process down if you do not have the funds available.

            Mr. Hanks stated keep in mind, even if we pursue the route of borrowing money, whether it be by a loan or bond or other method, we still have to pay it back.  At some point, we have to find the dollars within our budget to pay Bond Counsel and the Underwriter.  We are talking about a “what if” scenario.  Would it be much better to use the interest to build the reserves back and decrease assessments at a later date?

            Mr. Fennell stated this $500,000 is more for remedial work as opposed to long-term capital improvements, like building another canal.  The benefits will last 10 to 15 years, is a substantial amount of money and a bigger budget than what we currently have.  I feel this is a case of needing to pay as we go since we have 30 year old buildings.

            A resident asked did you say we acquired a bond years ago and have now paid it off?

            Mr. Fennell responded yes.

            The resident asked can we use this money to decrease assessments?

            Mr. Fennell responded no.  We decreased our rates seven to eight years ago once we paid off the bond because we did not need to pay it off anymore.  We need to pay off the shorter term items.  We are conscious of the need for this project to be well maintained.  If it is not, the amount of money we will spend on replacing items in our homes will increase.  If you get 2” of water in your home, it will go onto the carpet and walls and you are suddenly talking about spending $50,000 in repairs.  We all know how hard it is to get reimbursed for flood damages.  It is better for us to spend the money and do what we can to prevent flooding from occurring as opposed to trying to argue with the insurance company for damages.

            Mr. Gold stated I am the Vice Mayor of Coral Springs as well as a resident.  I appreciate seeing all of the plaques you received for your support of the Waterway Cleanup.  This Board supported the Waterway Cleanup for a number of years.  Last year we had 450 volunteers, which was the single largest number of volunteers for such an event.  I appreciate all of your support.  I do not have any specific comments on your budget but we received complaints about District property.  One suggestion was to enhance and improve the landscaping, at least around the borders of the Water Treatment Plant so when people look into this property, it is something they can be happy to look at as opposed to not being happy.  I appreciate it if this property can be included in this year’s budget.

            Mr. Goscicki stated this property is included in the budget as part of the Site Development Plan for the Wastewater and Water Treatment Plant improvements.  Perimeter landscaping is provided for to meet the city requirements. 

            Mr. Gold stated during our conversations, we talked about certain systems in place within our District.  I have lived in Coral Springs for 30 years in Maplewood.  You mentioned some systems are not adequate.  In other words, if one of those pipes fail, the water backs up.  There is more than one redundant system lacking pipes.  One of the quicker fixes we discussed was to put one pipe under Maplewood Elementary.  This will only affect one homeowner and the school.  I request this Board consider my suggestion.  There is a greater picture of the redundant systems because if our waterways are blocked, we have water flooding into people’s homes.

            Mr. Hanks stated this is one of our bigger issues in identifying where we can make the best efforts to make improvements.  It is not a small feat as you can imagine the dollars associated with it.  We will go through our due diligence to make sure what you are proposing as a solution is a good solution.

            Mr. Gold stated Mr. Fennell has approached City Hall on a number of occasions and we certainly appreciated his candor and courage to come and listen to the five members of the commission and discuss our differences and similarities.  We also work with the SFWMD on alternative water scenarios.  Do you have any money set aside in the budget for this purpose?

            Mr. Fennell responded this budget is strictly for the operations of the District.  We have a separate budget for the sewer and water.  To answer your question, we are currently looking at having some fairly large bond issues in order to replace our Water Treatment Plant.  We plan to remove the older system and install a membrane filtration system.  This type of a system is instrumental from the standpoint of installing one section and then adding more sections at a later time.  This will mean better quality and cost effective water and will meet future specifications.  We are only planning at this point, to install this type of system at the CSID plant.  However, in the future, we can look at having some type of joint system.

            Mr. Goscicki stated this Board has been proactive in looking at the possibility of alternative water supplies to effluent reuse to create irrigation quality water and is in partnership with surrounding communities.  We have a Wastewater Treatment Plant capable of producing effluent quality water, which can be used for reuse.  Certainly SFWMD is aware of this as well as DEP.  As we move forward, we are anxious to work with the city and the other districts to start looking at cooperative regional programs in regards to how we can turn this waste product into a resource, which can be used for irrigating golf courses.  There are monies budgeted in the Water and Sewer Budget for these purposes, which we can start working with the city on.

            Mr. Gold stated you are the only District using wastewater, which can be reused in the City of Coral Springs.  In order for us to benefit, we have to bring our pipes towards the Dells and the Meadows.  The practicality of this occurring is a challenge.

            Mr. Fennell stated many people have canals behind their house and it is hard to sell them something for $50 a month when they are already getting it for free.  We are under pressure and with good reason from SFWMD in looking at better ways to use the water we currently have.  We have some ideas.  It may come down to some fairly strange requirements both from you and us about water re-usage.  On the other hand, we are underway with plans to build a new drinking water facility, which we feel is going to be first class at a lower cost.  It will give us the water we need to get us through future years.   As you well know, we have tie-ins.  Are you looking for some type of general procedure?

            Mr. Gold responded I am here as a resident and wanted to hear about the issues coming forward.

            Mr. Hanks stated if this leads to an increase in their withdrawals and there is an issue with the water levels in the canals, we may want to introduce an intraconnector or Cross Pumping Agreement between our canals.  There are benefits to being able to pump into the canals rather than pumping it out.  There are many different options out there and I will not commit to anything because we do not know if people are going to help and whether the dollars are going to be there for any one of those systems.  We want to make sure you know the system is right for us, comes at the right time, for the right amount and for the right purpose.

            Mr. Gold stated I serve on the Water Advisory Board as Vice Chairman and I am aware of the issues.  One issue we talked about at the city was the fact most people still do not have rain sensors, especially in the older part of Coral Springs.  I heard about cities giving people $100 for every toilet they switch out to a low use toilet.  This is not what I am suggesting.  I think most people do not know how to regulate their timers on sprinklers.  Mine are off because I thought I knew how to regulate them and then I came out one morning and they were sprinkling on the wrong day.  As a result, I turned them off two months ago and they are still off.  The other issue is these rain sensors not being installed in the appropriate area and not triggering.  This is another point where you can come up with a program to supply the sensors and install them.  These are only suggestions to your budget.

            Mr. Fennell stated thank you very much for coming.  We appreciate your comments!  I met with the Vice Mayor a number of times and he is interested in all of the water issues and has been cooperative and understood our study.  We presented our engineering studies to him on a private basis as well as to the City Manager and other city staff.  The city is also aware of our issues.  In regards to the study, we saw areas in the east basin where there should be some improvements.  These will probably cost $6 million to $8 million.  We only have $1.5 million in our budget and are not going to spend $8 million.  However, maybe this is the right thing to do and we will make sure it happens.  The purpose of this budget is to make sure the system is working.  Are there any further comments about the budget?  Not hearing any,

 

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor the public hearing was closed.

 

            Ms. Fallis complained about the hedge around her property not being maintained.

            Mr. Fennell stated we will have someone check out your complaint.

            Mr. Daly stated I will make sure someone takes care of the hedges immediately, preferably first thing tomorrow.

            Mr. Goscicki asked are you familiar with this area, Mr. Frederick?

            Mr. Frederick responded she is talking about the hedges at the end of the canal where the guardrails are.

            Mr. Fennell stated this may not be our responsibility.  It may be the city’s responsibility.

            Ms. Fallis stated the city cuts the hedges.

            Mr. Fennell stated you need to speak with Mr. Gold.  There are two separate bodies; the City of Coral Springs and CSID.

            Ms. Fallis stated this is your canal.

            Mr. Hanks stated if there are shopping carts in the canal, it is our responsibility to remove them.

            Ms. Fallis stated there is also debris in the canal.  It has to come from somewhere.

            Mr. Frederick stated when we get the southeast wind everything blows into this one canal.

            Ms. Fallis stated I pick up trash and palm fronds from the canal bank.  Are your landscaping people supposed to pick up the palm fronds?

            Mr. Hanks stated they are not under our control.

            Mr. Daly stated we do not have landscapers.  I can send someone out there tomorrow to survey the property to determine whether or not it is our responsibility.  I understand your concerns.  You have every right to give us a call at any time as we are here to serve you.  Unfortunately we can only do what we are allowed to do.  If it happens to be a city issue, we know people who are very responsive and can take care of this matter.  We would be happy to call them on your behalf.

            Mr. Goscicki stated as part of the budget process, we have some resolutions for the Board to consider.  The first resolution is 2007-7, which by title is:

 

 “A RESOLUTION ADOPTING THE FINAL GENERAL FUND BUDGET OF THE CORAL SPRINGS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2008”

 

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor Resolution 2007-7 as stated above was adopted.

 

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor Resolution 2007-8 Levying a Maintenance Assessment for the Payment of Maintenance Expenses for the Water Management System from the Period of October 1, 2007 through September 30, 2008 was adopted.

 

FOURTH ORDER OF BUSINESS                    Consideration of Engagement Letter with Keefe, McCullough & Co., LLP to Perform the Audit for Fiscal Year 2007

            Mr. Goscicki asked is Keefe, McCullough the current auditor for CSID?

            Ms. Rower responded yes.

            Mr. Goscicki stated this is their engagement letter to perform their audit for next fiscal year.  The amount they are requesting is a not to exceed amount of $16,500.

            Mr. Fennell asked do we have to go out for bids?

            Mr. Goscicki responded not every year.  A formal process was adopted a couple of years ago requiring us to go through a competitive selection process.  This is similar to the CCNA process for selection of the engineer.

            Mr. Lyles stated this is due process based on price.

            Mr. Hanks asked how does this price compare to last year’s?

            Mr. Daly responded we pay them half now and half later.  The budgeted amount was $8,500 and this is what it will come in at.

            Ms. Rower stated the engagement letter reflects a higher amount because it is a two part audit.

            Mr. Goscicki stated it is comparable to last year’s budget amount.

            Ms. Rower stated they are an excellent firm and we have excellent rapport with them.

 

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor the Engagement Letter with Keefe, McCullough & Co., LLC. to Perform the Audit for Fiscal Year 2007 in the amount of $16,500 was approved.

 

FIFTH ORDER OF BUSINESS                         Discussion by CH2M-Hill of the Final Conditions and Assessment Report for Pump Stations 1&2

            Ms. Early stated included in your agenda package are two color coded charts.  We met with staff several times and prioritized all of the items based on our assessment report.  FPI will provide the labor at no cost to the District for the items shown in blue.  The District only has to pay for the parts.  The items in yellow are of a high priority.  We removed the items in red.  One of the items removed was the LP gas replacement, which is a big ticket item.  I believe Mr. Hyche has information on the detangler we tested.

            Mr. Hyche stated the work has not yet started.

            Ms. Early stated there is the possibility we can just add a tank.  In speaking with Mr. Goscicki and Mr. Daly, we are going to decide which items can be performed by staff.

            Mr. Fennell stated we just passed the budget with reserves of $580,000.  Is this money in anticipation of some of these items?

            Mr. Goscicki responded any unspent money from your capital program will go into reserves.  When the budget was created, we were looking at a higher number.  It does not include any additional LP tanks.  This is strictly a refurbishment. 

            Mr. Fennell asked how many days of fuel do we need?

            Ms. Early responded three.

            Mr. Hanks stated we have to look how much water we can move.  We know what a three day storm event can do.  In a five year storm event, I do not know if there is much of a difference in how much water we can move.

            Mr. Hyche asked is it possible to get the tanks installed this season?

            Ms. Early responded I can find out.

            Mr. Fennell stated we need to make sure we keep them full.  You are currently keeping the canals high due to restrictions from SFWMD.

            Mr. Frederick stated we want to keep them fairly high.  If a hurricane is coming, we will pump the water down and have the gas tanks topped off before the storm gets here.

            Mr. Hyche stated it is all part of the preparations prior to the storm.

            Mr. Fennell asked are there any other comments?

            Mr. Goscicki responded no.  This is an informational item so the Board knows what the improvements are.  With the Board’s concurrence, we will proceed.  There are some monies we can use within the existing budget in order to move forward so we do not need to wait until October.

            Mr. Fennell stated we can do some things ourselves.  Do we need to go out for bids on others?

            Mr. Goscicki responded yes.  We are currently meeting with CH2M-Hill in terms of breaking these items out and deciding what needs to go into a general contract in terms of mechanical, electrical and structural expertise.

            Mr. Fennell stated we should expect bid specs.

            Ms. Early stated we will bring a work authorization to the Board.

            Mr. Fennell asked what is the status of the pump study you were completing for us?

            Ms. Early responded we met with Mr. Fredericks and are completing this report.  He knows how long it takes to pump. 

            Mr. Frederick stated it takes a couple of hours to get the pump moving.

            Mr. Fennell asked does your experience match their report?

            Mr. Frederick responded yes.  One number was fairly close. 

            Mr. Fennell asked do we own the model?

            Ms. Early responded yes.

            Mr. Fennell stated I want to make sure we have a copy of the model in our files.

            Ms. Early stated I will provide a copy to Mr. Hyche.

            Mr. Hyche stated this is one issue.  We should think more about the items Mr. Gold suggested and have more District-wide improvements.

            Mr. Fennell stated I agree.  He is correct in saying we discussed this and showed him the results of the study.  I do not feel the berm matter was resolved to my satisfaction. 

            Mr. Hanks asked did we get the surveyor out there?

            Ms. Early responded the surveyor went out there and did some perimeter measurements and it is down to 11.5’.  According to SFWMD, the water should be at 9.8’.  I know you disagree but this is the number we obtained.  In talking to Mr. Bob Higgins who worked for Gee & Jenson years ago, about how they determined this number, he said they modeled it based on the 100 year storm and added a couple of feet.  It is not documented by the SFWMD that the berm has to be at this elevation.  I cannot find where they say we need to put the berm back to this level.

            Mr. Fennell stated it is three feet lower than the C-14 Canal.

            Mr. Hanks asked what is the predicted stage for the 100 year storm in this area?

            Ms. Early responded 11.5’.

            Mr. Hanks stated we are going to have flooding there.  You are going to have water levels at 11.5’ regardless.

            Mr. Fennell stated I understand the rationale.

            Ms. Early stated this was permitted through SFWMD.  Somehow this developer got them to agree to take the level down.  If we put it back to 9.5’, we are going to have to put some type of drainage in back of this house and all along the dike.  Otherwise, the water is going to sit there.  It is not just a matter of putting 3’ of fill on the dike. 

            Mr. Fennell stated it is still 3’ less than the C-14 Canal.  I want a guarantee that the water will never be any higher.

            Ms. Early stated they never promised us because the highest the water ever reached was 9.8’.  This is according to their gauge.

            Mr. Hanks stated you need to open the gates coming out of the everglades in order for Coral Springs and Tamarac to pump their water in there and hold it up at the other end.  You can have a severe storm surge and have problems getting the water out of there by everyone pumping.

            Mr. Fennell stated you need to measure it again because I cannot see it happening.  You are already telling me you believe the water is going to get up to 12’.  What is really happening is this canal is hooking up to the district north of us.

            Mr. Hanks stated you need to look at what the hydraulic losses are in this canal using the SFWMD’s levels to determine the theoretical pump rate for Sunshine.  This is what we need to know.

            Ms. Early stated I understand what you are suggesting but I am having a difficult time finding where it says we need to have this berm.  It was probably designed to retain our own storm water.

            Mr. Fennell stated I think the water was illegally dumped recently.

            Ms. Early stated we have a permit but it was based on the dike being at this level.

            Mr. Hanks stated you should have them provide the as-builts at the end of the job.  They do not care if your berm is higher.  They only care if it is lower.

            Ms. Early stated when Maplewood was completed by the developer, the berm was lower and they received a certification from SFWMD.

            Mr. Hanks stated if we start touching this berm and a storm blows in, we are opening ourselves up to problems.  Is this berm the same height as the ones on the east side?

            Mr. Fennell responded no.  It was built to the C-14 Canal height, however on our side, the canal was lower.  The other side was at a higher level.

            Mr. Hanks asked what is the lowest elevation on the C-14 Canal side?

            Ms. Early responded I have to look at the data. 

            Mr. Hanks stated we have to look at the problems the districts who pump water into us have.  The west outfall canal in Sunshine cuts right through our District.  They may be encountering a similar problem to what we are encountering in CSID where the stages vary higher than what they were predicted at 30 years ago.  We do not need this extra water.  Before we repair this one location, we should take a look at Sunshine.

 

SEVENTH ORDER OF BUSINESS                  Consideration of Non-Exclusive Easement Agreement for Coral Springs Honda Parking Garage

            Mr. Goscicki stated we will pull this item from the agenda as it has not gone through complete staff review.

            Mr. Hanks stated before this goes through, we are dealing with a 15’ wide easement between Atlantic Boulevard and University Drive.  The non-exclusiveness is for other utilities to have the right to go in there.  How will we gain access if we have to worry about going around FP&L or Bellsouth?  Was this agreed to previously about this being a non-exclusive easement?

            Mr. Goscicki responded you are bringing up reasons for this item being pulled from the agenda.  We have not gone through an in-depth review with staff.

            Mr. Hanks stated when we do development projects adjacent to canals; we should request an easement from the affected property owners.

            Mr. Fennell stated make it a condition of them taking ownership.

            Mr. Hanks stated this way we can get extra access.  Broward County is starting to install guardrails at all of our canal crossings and you are going to find it increasingly difficult to get access to some of these locations.

            Mr. Hanks stated good point.

 

SIXTH ORDER OF BUSINESS                        Current Status and History of Open Work Authorizations

            Mr. Daly stated we looked at this briefly last month as more of an informational piece as opposed to a discussion item.  Staff discussed the ongoing work authorizations, which keep getting amended and turning into seven year old work authorizations.  It is hard to keep track of them and hard for the Board to know what these approved.  We are trying to come up with some solutions such as closing them out at the end of the year to make sure they are easily digested by the Board.

            Mr. Hanks stated we need to note the outstanding work authorizations.  We will have change orders on some of them but I agree keeping a seven year old work authorization open is cluttered.

            Mr. Daly stated this started when Mr. Hanks asked us to clean up some of these work authorizations and listing them on a monthly report in regards to the percentage of completed ones.  You cannot be expected to recall every work authorization, especially if they are three years old.

            Mr. Fennell stated this has to be part of our financial reporting.

            Mr. Daly stated it will be in each month’s agenda package.  When the Board makes a decision to approve a work authorization, it will be based on a budgeted number.  Every month CH2M-Hill will update the list and have discussion if necessary.

 

 

 

 

 

EIGHTH ORDER OF BUSINESS                     Staff Reports

            A.        Manager

i.       Ratification of Billing Services Contracts with Lake Powell Residential Golf Community Development District, Bayside Improvement District and Bay Creek Improvement District

            Mr. Goscicki stated CSID has been providing utility billing and customer service for these districts.  We have been doing this in the past through Severn Trent Services.  As part of cleaning up some of these relationships, we thought it would be much more appropriate for CSID to contract directly with the other districts. 

            Mr. Hanks asked Mr. Lyles, have you reviewed the form of these agreements?

            Mr. Lyles responded I worked with staff on these agreements and they are basic forms of Interlocal Agreements by which this District will provide certain services to these districts.  Our input has been incorporated and these agreements are ready for consideration by the Board at this time.

            Mr. Hanks asked do we need to approve them individually?

            Mr. Lyles responded one motion for all of them is sufficient.

            Mr. Fennell asked how do we bill for this?

            Mr. Daly responded we send a monthly invoice to each District.

            Mr. Fennell asked how did we reach an agreement on how much to charge them?

            Mr. Daly responded I used Severn Trent’s contract.  We are not receiving a great deal of money and frankly, not performing a great deal of work.

 

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor the Billing Services Contracts with Lake Powell Residential Golf Community Development District, Bayside Improvement District and Bay Creek Improvement District were approved.

 

            Mr. Fennell stated we have some outstanding issues such as getting another District Manager.  I think you owe us an understanding of what Severn Trent Services bills us for.  When can we discuss these items?

            Mr. Goscicki responded next month.

            Mr. Daly stated you will also see the Water and Sewer Budget at the next meeting.

ii.         Discussion of Lake Coral Springs HOA Maintenance Agreement

            Mr. Daly stated this issue was settled with Mr. Lyles.  

            Mr. Lyles stated Mr. Daly wanted to revisit some of the operational aspects of the agreement, which had previously been drafted and circulated.  We have been negotiating back and forth with the HOA for Lake Coral Springs and their attorney.  Mr. Daly still has some comments but it is same framework.  Staff wanted the Board to understand, the only item the Board was going to be involved in, pursuant to this agreement was managing the water but not maintaining landscaping or banks like the HOA does.  We discussed some of the previous services we provided such as removing palm fronds, coconuts and pulling boats off of sandbars were not going to be performed on a routine basis by this District.  If it is, a service fee will be charged.  I think this is an update for staff to check and see where the Board wants us to be.  If this is the case, we will go to the HOA with the current version of this agreement.  A motion from the Board to authorize execution of this agreement can be done at the next meeting.  There is nothing of substance in this agreement, just some operational tweaking from the current management structure.  This is slightly different from what you received from previous managers involved in this exercise.

            Mr. Fennell asked why are they charging us $10?

            Mr. Lyles responded it is probably the cost for the recording of this agreement.

            Mr. Fennell asked what are we going to take care of?

            Mr. Daly responded at Mr. Frederick’s discretion, at the same time he takes care of the other canals, he will do chemical treatments.  We have no land rights and cannot pick up coconuts or palm fronds.  We are not involved in the beautification part; only the drainage aspect.  The first thing I said to Mr. Frederick was “they are assessed like anyone else is but we do not own any of the land to my knowledge so there is nothing we can do other than get in/get out and treat the water”.  This is exactly what the contract says.

            Mr. Goscicki stated we met last week with Mr. Frederick and Ms. Early to make sure staff had a good understanding of what we are maintaining.  The consensus we came to from our review of the documents and structures out there, is this is a drainage easement and the District may own sections of the bottom of these lakes to permit drainage but we do not own the entire surface of the lake.  In our opinion, we are not required to maintain the entire surface of the lake but only to maintain the water flow through the lake.  To the extent we need to control flowage, we will do so.  To the extent debris removal is needed to maintain flowage, this is what we will do.  We want to make sure we are on the same page as the Board where if there is a high buildup of algae on the bank and it is not impacting anything, there is no harm in us going out and treating it.

            Mr. Hanks stated it makes sense to take care of it so we do not have a problem throughout the District.

            Mr. Daly stated Mr. Lyles told me this document was sent to his office out of the blue.  We were both caught by surprise.  Because of the management changes, I was not involved.

            Mr. Lyles stated when you say “out of the blue”; you are referring to a status check from our office on where we are with this and whether we had any final comments.  We discussed this agreement many times in the past and this is just an update as to where we are.  We are ready to finalize it as it has been reviewed by the new management team.  When it is final and they signed it, we will ask the Board to approve and sign it. 

            Mr. Daly stated when I spoke to Mr. Frederick about this he asked “how did it get drafted because as far as I am concerned this issue has been dead for two years”.  This is why we were surprised.

            Mr. Hanks asked do we need a written agreement?

            Mr. Lyles responded yes, because it needs to be clear we are not the appropriate entity to take care of aesthetic problems on this water body.  You may recall an issue with their Declaration of Restrictive Covenants, which said they needed our permission to do aquatics or anything affecting our water.  We are also making sure they do not do anything we find harmful or objectionable in how we maintain these waterways throughout this District.

                        iii.        Monthly Water & Sewer Charts

            Mr. Hanks asked what about the change in the color of the water?

            Mr. Hyche responded we changed to a digital meter.

            Mr. Daly stated with our current water restrictions with SFWMD, there has been a 5% decrease in water usage.  I believe this will start coming back up once they lower the restrictions.

            iv.        Utility Billing Work Orders

            v.         Complaints Received/Resolved

            Mr. Hanks asked were there any complaints?

            Mr. Daly responded there was only one complaint.

            Mr. Hanks asked do we still have our sprays in place?

            Mr. Aversa responded Plants C&D are bare and the lines were removed. 

            Mr. Hyche stated it would not have mattered because we were re-seeding and there was only one day of odor. 

B.        Attorney

            There not being any, the next item followed.

C.        Engineer

            There not being any, the next item followed.

 

NINTH ORDER OF BUSINESS                       Supervisor Requests and Audience Comments

            Mr. Fennell stated I see you received a compliment.  You sent a nice letter to Ms. Valvano.

            Mr. Daly stated thank you!  I spoke to Ms. Marion Wolford several times in regards to the canal issue.  It was nice of her to take the time to write her letter.  The reason she wrote the letter was because Mr. Frederick and his crew have become her personal irrigation company.  This is fine with us because she was originally mad with us in regards to the staging taking place on her property.  This is what you call customer service.

            Mr. Fennell stated I guess someone likes us putting Fluoride in our water.

 

TENTH ORDER OF BUSINESS                       Approval of June Financials and Check Registers

            Mr. Fennell stated we are still going out for our bonds and will have them in September.  What is our current cash flow situation for meeting our construction projects?

            Mr. Goscicki responded we spent a great deal of time with the engineer and the accountant looking at these numbers to make sure we had a good understanding.  Our current cash flow position is if we get the long-term financing in place in September, as our Bond Counsel and Underwriters believe they can do, we will not need to move forward with the short-term financing.  We are moving along a parallel path, which will allow us to go out for short-term financing but we will wait until August to see where we are with the long-term financing to make sure there are no issues in terms of modifications to the bond resolutions.  The concern we have is we get significant requests for additional information from the Underwriters and/or Insurance Agencies as we go through this process.  The Underwriters are comfortable they have those bases covered but will work this parallel with the financing.

            Mr. Hanks asked what happens if we do not get our funding in September?

            Mr. Goscicki responded we will make a decision next month if we need to proceed with the short-term financing.  We should be able to get the money in place fairly quickly.

            Mr. Fennell stated according to the letters, $2.3 million is restricted because of the bond issue.  We are supposed to have three coupons of 7.5%.  Do we have this?

            Ms. Rower responded yes.

            Mr. Fennell stated then there is another $2.4 million in the bank.

            Ms. Rower stated correct.

            Mr. Goscicki stated but you cannot use most of this money or rather you cannot use it indiscriminately.  They are restricted in their use for a lot of these funds. 

            Mr. Fennell asked what happens to the $2.3 million and when can we use it?

            Ms. Rower responded it is restricted for the principal and interest payment on your 1992 and 2002 debt, as required by the bond covenants.

            Mr. Fennell stated it actually sits there but we never actually take any money out.

            Ms. Rower stated we take the money out for the principal and interest payment.

            Mr. Fennell asked do we have to make these payments four times per year?

            Ms. Rower responded we funded those on a monthly basis.

            Mr. Goscicki stated the payments are made twice a year.

            Mr. Fennell stated it concerns me we have $2 million to $3 million sitting there earning 6% interest.

            Mr. Goscicki stated you are putting in money each month and accruing it against this account.  Twice per year you are pulling out large amounts to make your debt service payments.

            Ms. Rower stated if you look at your Water and Sewer Fund income statement, you will notice under the debt service category, this is the month we pulled out $2 million from those reserve funds to pay off the principal and interest.

            Mr. Fennell stated this will leave us with $350,000 in reserves, which will build up monthly.

            Ms. Rower stated it has already been taken out.  When we have a bond payment in November, we need to have the money built up because you are not getting your assessments in October.  We make sure when we prepare the budget, we have this money in place. 

            Mr. Fennell stated the net we have to spend is $2.4 million.

            Ms. Rower stated correct.  This is part of the cash flow you are allowed to work from now through the end of the year and the early part of next year.

            Mr. Fennell stated I want to see a cash flow sheet from the prior year to this year.

            Ms. Rower stated we do one every month internally.

            Mr. Fennell stated I want one matched up to our budget, capital expenses, bond payments and upcoming projects.

            Ms. Rower stated Mr. McKune, Mr. Daly, Mr. Goscicki and I have been meeting on a monthly basis to see where we are on the $6.8 million we originally had.  Ms. Kay Woodward is working on a spreadsheet showing what work authorizations have been paid and how much is still outstanding at this point.

            Mr. Fennell stated this is something you use in small business because it is the cash flow that determines whether you win or lose.

            Ms. Rower stated every time the financials are generated, our cash flow is updated.  Our revenues are running slightly behind the budget so we actually look at what is taking place and not what was budgeted.

            Mr. Fennell stated I want to see this report.  If you can include a simplified report for just the budgeted items and another for the other major cash flow items, this would help us so we can see what is going on.

 

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor the financials and check registers for June 30, 2007 for the General Fund in the amount of $324,108.64 and for the Water and Sewer Fund in the amount of $811,718.93 were approved.

 

ELEVENTH ORDER OF BUSINESS               Adjournment

            Mr. Daly stated you will notice the supervisors of each department will be here for each meeting should you have any questions.

            Mr. Michael Hoffnagel stated I feel you missed an opportunity for providing community service for high school students to clean up the canal banks when the water levels in the canal get low.  Perhaps, you can do this in the future.  As the father of high school students, there are not enough things to do in Coral Springs in the summer or during holiday breaks.

            Mr. Daly stated great idea.  There is a Waterway Cleanup every year when financial institutions and other drainage districts are out in full force.

            Mr. Hoffnagel stated it looked like an easy way to clean up the canals.

            Mr. Hanks stated another group who may be interested are the Boy and Girl Scouts.

            Mr. Hoffnagel asked was any thought given to giving bonuses to people who are consistently prudent with water?

            Mr. Fennell responded our current system is a graduated system where if you use less water, you pay less. 

            Mr. Hoffnagel stated I have not gone over 4,600 gallons of water a month in over a year.  If I did, I would call you because something is wrong.  I suggest having a bonus program such as what credit card companies’ offer.  There should be an incentive program for consistent individuals.  I understand you need to charge a minimum of $21 just like FP&L charges but at the same time, you can give a one month credit if there is some consistency.

            Mr. Daly stated this is not a bad idea but I am not sure how practical it is with our rate structure, only because unlike most cities and districts, the first 3,000 gallons is included in the base charge.  In your case, you are only paying for 1,800 gallons of water or less than 2,000 gallons per month per household, which is great.  Most people use 100 gallons per day or 2,000 gallons per month per person.  You rarely see bills for less than 6,000 gallons.  It is a good concept but not many people are as conscientious as you are.  This has to be a rate structure for the masses.  As Mr. Fennell stated, we have a graduated rate structure.  If we had the same rate, we could probably do what you are suggesting.  We send you a postcard bill because it does not cost us 50 cents to mail you a bill in an envelope.  It only costs us 26 cents.  Everything we do here is saving us money.  We look at this in different ways to make sure we are serving the customer and keeping our prices low.  For 15 years, we have not had a rate increase.  I do not know of any other company who can say this.  Mr. Gold was just here telling us ways to conserve water such as installing rain sensors in sprinkler systems.  Maybe we can help fund it.

            Mr. Fennell stated I was trying to get my sprinkling down to one day in a 30 year old sprinkler system, which was tough.  It turned out these rain sensors only work with newer sprinkler systems.  The old mechanical sprinklers do not have them.  You have to replace the entire system.  In order to put in a rain sensor system, you need to spend $300 to $400.

            Mr. Hanks stated another option is to change the overall rate structure and make it more of a conservation rate.  This is something we debated about when we adopted the water and sewer rates.

            Mr. Hoffnagel stated I understand the sewer charge because it has a unique maintenance factor. 

            Mr. Daly stated we have more water breaks than sewer costs.  The fact anytime day or night, whether you are there or not, this service is available to you but there is a cost involved.  When the Board looked at the rate structure, it used exactly the same rate structure as far as the price and tiers with a percentage increase. 

            Mr. Hoffnagel stated where if someone is at $21 for 12 months, they should be rewarded for staying under this threshold consistently.

            Mr. Fennell stated it is understood the amount of water you and I use in our house is a small amount compared to the amount of water used outside.  A good amount is used outside.   I have a well to water my lawn and it exceeds the actual amount of water you and I use.  The savings from this is good for you and me but to be honest with you, the big savings is with the irrigation water.  Not much of our water goes towards watering people’s lawns.  We saw a 5% drop.  Most people are either getting their irrigation water from wells or out of their canals.  Other cities have a much greater percentage of their water going into watering lawns.  The amount of water going into our canals is minuscule. 

            There being no further business,

 

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor the meeting was adjourned.

 

 

 

 

                                                                                                                                                      

Glen Hanks                                                               Robert Fennell

Secretary                                                                   President


Notes for 7/16/07 Meeting

 

AGENDA ITEMS FOR NEXT MEETING

1.            Discussion of STS Charges

2.            Distribution of Water and Sewer Budget & Setting Public Hearing

 

Accountant

1.Provide a list of outstanding work authorizations in the financials.

2.Provide cash flow sheet for prior year expenses to this fiscal year showing budgeted items and major cash flow items.

 

Engineer

1.      Provide to a copy of the model to Mr. Fennell.