A meeting of the Board of Supervisors of the Coral Springs Improvement District was held on Monday, July 21, 2008 at 3:00 p.m. at the District Office, 10300 NW 11th Manor, Coral Springs, Florida.


            Present and constituting a quorum were:


            Robert Fennell                                                  President

            Sharon Zich                                                      Vice President

            Glenn Hanks                                                     Secretary (Via Telephone)


            Also present were:


            Kenneth Cassel                                                District Manager

            Dennis Lyles                                                     District Counsel

            Jane Early                                                         District Engineer

            Brenda Schurz                                                  Severn Trent Services

            Sean Skehan                                                    CH2M Hill

            Cory Johnson                                                   CH2M Hill

            Dan Daly                                                          CSID

            Randy Fredericks                                             CSID

            Doug Hyche                                                     CSID

            Kay Woodward                                               CSID Accountant

            Jan Zilmer                                                         CSID Human Resources


FIRST ORDER OF BUSINESS                               Roll Call

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


FOURTH ORDER OF BUSINESS                          Public Hearing to Consider the Adoption of the General Fund Budget for Fiscal Year 2009, Resolution 2008-5, and Levy of Non Ad Valorem Assessments, Resolution 2008-6

            Mr. Fennell stated we are going to skip over the minutes.  We will hit those later.  We will get into the fourth item, which is the public hearing to consider the adoption of the general fund budget for fiscal year 2009.  We have been looking at this.  Are there any additional comments or questions on this?

            There not being any, Mr. Fennell opened the public hearing for general comments.

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

            There not being any, Mr. Fennell closed the public hearing.

            Mr. Fennell asked is there anything from the Board?

            Ms. Zich responded no.  It is fine with me.

            Mr. Hanks asked can you please speak up?

            Mr. Fennell responded yes.  We opened the public hearing.  There were no comments from the general public so we closed the public hearing.  We are back to any additional questions from the Board.  Do you have any questions on the general fund budget or any comments?

            Mr. Hanks responded I looked over the general fund budget.  I do not think there were any major questions.  The biggest issue is with regard to the lease acceptance for the trucks.  Are we buying those things out at the end of this year?

            Mr. Cassel responded that is correct.

            Mr. Hanks stated okay.  Does staff still think they can get a good rate to pursue these things from here on out rather than to continue to lease?

            Mr. Cassel responded that is correct. 

            Mr. Hanks stated okay.


On MOTION by Mr. Hanks seconded by Ms. Zich with all in favor Resolution 2008-5 adopting the final general fund budget of the Coral Springs Improvement District for fiscal year 2009 was adopted.


            Mr. Fennell stated given we adopted our budget we now have to levy the non ad valorem assessments, which is Resolution 2008-6.  Did we resolve the exact amount?

            Mr. Cassel responded yes.  It is the same as last year’s.

            Ms. Zich stated not exactly.  There is a few cents difference. 

            Mr. Fennell stated it still builds up our reserve for the coming year.  Are there any other questions on this?  Do I have to open this up to the public?

            Mr. Lyles responded not on the levy.  We already had the public hearing on the budget.  This is the mechanical act of levying the assessments pursuant to the budget you adopted at the conclusion of the last public hearing.




On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor Resolution 2008-6, levying and imposing a non ad valorem assessment for the Coral Springs Improvement District at an amount of $186.79 per unit, was adopted.


FIFTH ORDER OF BUSINESS                               Distribution of the Proposed Water and Sewer Budget for Fiscal Year 2009 and Consideration of Resolution 2008-7 Approving the Proposed Budget and Setting the Public Hearing

            Mr. Lyles stated this is just to set the public hearing.  You need to adopt Resolution 2008-7 in order to approve the proposed water and sewer budget as well as set the date of the public hearing for, I believe, your August meeting.

            Mr. Daly stated we might as well do it in September.  We can hand you a real clean one in August.  We can make changes with any additional comments you have on it.

            Mr. Fennell stated we need to adopt the resolution setting the public hearing for the September meeting.

            Mr. Cassel stated September 15, 2008.

            Mr. Hanks asked do we have to accept the budget first?

            Mr. Cassel responded no.  It is all in the same resolution.

            Mr. Hanks stated okay.  What type of flexibility do we have should there be other issues?

            Ms. Zich responded they are still working on the water and sewer budget.  There is some fine tuning they want to do.

            Mr. Daly stated we can have a finalized one for you in August.  It is not a problem.  You as a Board may have questions.

            Ms. Zich stated we may have questions in August after they finalize the budget.  This is the reason they want to go into September.

            Mr. Hanks stated okay.  We want to go to September and we do not need a final number on this yet.

            Mr. Cassel stated not at this time.

            Mr. Hanks stated I am going to defer to someone who has a calendar in front of them to set the date of the public hearing. 

            Mr. Cassel stated it will be September 15, 2008 at 3:00 p.m.


On MOTION by Ms. Zich seconded by Mr. Hanks with all in favor Resolution 2008-7, approving the proposed water and sewer budget and setting the public hearing for September 15, 2008 at 3:00 p.m. at the District Office in Coral Springs, Florida, was adopted.


            Mr. Fennell stated we will come back and talk about this in a few seconds.


SIXTH ORDER OF BUSINESS                              Consideration of Work Authorizations

A.                 Work Authorization No. 34.3 – Piloting Services to Evaluate Membrane Performance on CSID Well Water

B.                 Work Authorization No. 45 – Water and Wastewater Capital Improvement Program Bidder Pre-Qualification

C.                 Work Authorization No. 46 – Groundwater Modeling in Support of the Water Use Permit

            Mr. Fennell stated we have a whole bunch of little things we are doing here.  Are these part of the engineering costs or are these costs in addition to?

            Mr. Skehan responded Work Authorization No. 34.3 is for additional costs.  This was not initially planned to have been done.  Because of the water quality changes and the changes to the wells, we feel it is prudent to do this in order to make sure we do not get any surprises with the water quality. 

            Item B is in addition to as well.  This evolved because we think it is very important to pre-qualify contractors right now.  With the current situation in the building industry we do not want to have every small contractor showing up who is not qualified to do this kind of work.  This is really important.

            Item C is Work Authorization No. 46.  The groundwater modeling is part of the work we knew would be coming along.  We did not know to what level and extent it would be.  It is based on what we learned from the South Florida Water Management District.

            Mr. Fennell asked did you hear all of this?

            Mr. Hanks responded I got most of it.

            Mr. Fennell asked what are the changes you think have happened to the quality of our water?

            Mr. Skehan responded we collected water quality samples from our wells initially.  We want to make sure we are not picking up sand, fine silt or materials that would be loose, which has a severely detrimental effect on the membranes.  We want to know before hand.  The wells are working more efficiently now, but we want to take the precaution of doing this piece of the study to make sure we do not find any unforeseen conditions.

            Ms. Zich asked I do not understand this exactly, but are there $90,000 we were not expecting?

            Mr. Skehan responded Mr. Johnson, you can add some details to this if you would like.

            Mr. Johnson responded sure.  What we have in the scope and budget are several staff.  One of those is to set up a system for testing and then for a couple of months of continuous testing.  With this testing we have to be onsite once or twice a day to fine tune the instruments and make sure they are operating to the parameters prescribed in the testing.  We are assuming there is going to be a certain level of involvement from staff here to maintain those levels at a constant rate.  We have an added alternate so if we get to a certain point and we find problems with the water quality, then we have an additional task.  It is an added alternative to have if we run into issues.  We are not anticipating spending it right now.

            Mr. Skehan stated this is a preventative type of testing.  If we were to find something, it is better to find it right now so we can add a physical component in front of the membranes.  The membranes are big skids with big long tubes on them.  The water goes through them.  The membranes are microscopic in nature.  When you start getting silt and the possibility of sand in the front part of the system, the feed water coming in has the potential to plug off the membranes.  This is a verification to make sure because the wells have changed conditions.  They have improved as far as productivity, but we do not know if everything done to the wells recently has released something.  There may be some barrier there and it is coming out of the wells in small amounts. 

            Mr. Hanks asked do you think we may have disrupted the cleaning activity?

            Mr. Skehan responded it is a possibility.

            Mr. Hanks asked is there anyway we could have foreseen this before we created the initial work order for the treatment plant?

            Mr. Skehan responded we did not know the wells were going to be in a condition where they were not pumping up until the time we got into sampling the wells and evaluating the wells.  We had done some of it.  Mr. Hyche was able to go out.  He was saying productivity was down in some of the wells in the measure of going through to make sure the wells are operating at their optimum. 

            Mr. Hanks asked what opportunity do you think we have of implementing with this test unit, the pilot plant?  Is this going to be a sum cost or are we going to be able to incorporate this into future units?

            Mr. Skehan asked are you talking about the equipment?

            Mr. Hanks responded the pilot plant.

            Mr. Skehan stated the equipment which will be used is very small scale.  It is desktop, if you will, model scale for testing the water quality.  Everything we are doing for the plant is room size equipment.  When there are changed conditions in a well field there is some level of uncertainty as to how those conditions changed.  They may not have changed, which would be fine.  If we got to the wells coming on line, the plant coming on line and then there is a bunch of silt or sand coming through, we would not have taken it into consideration. 

            Mr. Hanks stated if we did not perform this testing and something was to foul the system, it would be on the CSID dime because you brought this to our attention and we selected not to pursue it.  Is this accurate?

            Mr. Skehan responded it would be accurate if you chose not to pursue it.

            Mr. Hanks stated okay.  I think this is a small cost and certainly something we should be looking at considering there may have been a change in water quality.  I request in the future when you have a potential where you want to consider doing water testing, or there is a potential for change, you include it in your initial services and then we can back it out if we have to.  I would much rather know these things up front, but I am comfortable with the scope of it.  If we were to make these changes after we have the plant on line, the cost would be much more than this.  Is this right?

            Mr. Skehan responded yes. 

            Mr. Hanks stated okay.

            Mr. Fennell asked suppose the water has changed, then what?

            Mr. Skehan responded we are able to incorporate it into the design now.  There are certain provisions we will make into the design which will adapt to it.  We will make sure it is there.  The project is close to going to bid.  We do not want to have a change order after the fact at the end of the project.  We do not want to pay a premium price for a change order because we know this is where contractor’s can take advantage of the situation.  We are trying to avoid change orders down the road and looking at where they can possibly be. 

            Mr. Hanks stated okay.  I am comfortable with Work Authorization No. 34.3.

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor Work Authorization No. 34.3 for piloting services to evaluate membrane performance on CSID well water was approved.


            Mr. Fennell asked what clued you up that there was a water change?

            Mr. Skehan responded we know there is higher productivity coming out of the wells right now. 

            Mr. Fennell asked do you mean more water?

            Mr. Skehan responded more water.

            Mr. Fennell stated you see that and you think there is more sand coming in.

            Mr. Skehan stated it could be.  It could be silt.  It could be that it is being produced from a different zone.

            Mr. Fennell stated you have a number of different wells.

            Mr. Skehan stated right.

            Mr. Fennell asked are you worried about them all?

            Mr. Skehan responded we are looking at how to arrange the operation of these wells as they all work together.  There will be a certain sequence of wells, which will be established in how they operate together and in what grouping to get a certain amount of water.  It is trying to come up with an operating sequence that will be similar to what will be taking place in the future. 

            Mr. Fennell stated if we are in a situation where we cannot handle a fairly different change in water input, we would be in a lot of danger.  I was hoping this would be a little more flexible.

            Mr. Skehan stated we do have flexibility with it, but the constituents we are talking about are things we want to totally eliminate as any possibility of being there.  We will never totally eliminate everything, but we will be much more certain as to what is there and what is not there. 

            Mr. Fennell asked if you do this test, and suppose it comes out negative, what guarantees do you have that the results will stay negative for a long period of time?

            Mr. Skehan responded we can only use the information we gather at the time to be able to move forward with the design we have.  There is flexibility within the design.  We are trying to look out for how operations will actually take place in the future.  We will have some filters which can be installed.  There will be provisions made.  If we see we do not need it right now, we will have provisions made in the design so other components can be added if it becomes necessary. 

            Mr. Fennell stated that is my point.  You have contingency planning.  The fact you already strongly suspect the data can change or the water can change; one point of data at one particular time will not insure it will not change. 

            Mr. Skehan stated we are trying to get the best information for this period of time.

            Mr. Hanks stated I am going to need to sign off.

            Mr. Fennell stated okay.

            Mr. Hanks stated thank you very much.

            Mr. Fennell stated alright.

            Mr. Hanks stated goodbye.

            Mr. Fennell stated goodbye.  It will be interesting.  Obviously you are serious about this; otherwise, you would not be asking us to spend $90,000 or $100,000.

            Mr. Skehan stated right.

            Mr. Fennell asked my question to you is given the results of this test, how predictable  is it?  The answer is if it is predicted you have a negative answer, but if you  have an answer that says, “well we do not have a problem” does this really do a good job of predicting future water quality?  Probably, the answer is no.

            Mr. Skehan responded that would be the answer.  We will completely understand what the conditions are at this point in time.  The wells are operating now and we know they have been operating for a couple of months.  They did not have this work done on them when we collected samples six months ago.  We collected samples at that time and wanted to make sure certain precautions were being taken care of.  Now we feel there is a certain amount of operation which has taken place and we should get fairly representative samples from what we are seeing.  The testing will take place for over a month’s period of time.  We are collecting samples which are representative of what is going into the plant right now.  They will go through a smaller system than what will be out there ultimately in the plant. 

            Mr. Fennell stated if the test proves you have sand, you definitely need it.  The problem is if it goes the other way, it does not prove you do not need it.

            Mr. Skehan stated that is right. 

            Mr. Cassel stated they are still going to make sure there is space in the plant.  Next time we need to redevelop the wells we may have to add something back in, but there will be space.

            Mr. Fennell stated we are going to need at least a provision to handle the new welling we have to put in.  I guess we will just finish this up.  Let us go into Work Authorization No. 45, water and wastewater capital improvement program bidder pre-qualification.  What I gather from this is you do not think our current specifications are adequate to actually prevent us from getting bidders who are not qualified.

            Mr. Skehan stated we want to be absolutely certain because an ounce of prevention now will take a whole bunch of pounds to cure later on.  The way the market is contracting right now for construction work there are small homebuilders, large homebuilders and commercial builders out there.  Builders are out there without any experience in constructing work in wastewater plants or water plants of this magnitude.  A $20,000 investment right now for a $20 Million plus project helps us to  be able to qualify the contractors who are capable of doing this work. 

            Ms. Zich stated I am trying to understand why it costs us $23,000 to pre-qualify these people.

            Mr. Skehan stated it is taking the time to get a document out.  There is a document we will prepare which is going to be publicly noticed.  We will give it three or four weeks of public notice.  We will collect the information, verify the information and go through the evaluation of what is in the package.  There is a package prepared to go out.  These contractors will be interested in seeing where the scope of work is going to be.  That is what it is all going to circle around.

            Mr. Fennell stated you must see some holes in our current qualification process.

            Mr. Cassel stated I do not think it is the current qualification process per se.  When times are great and you put out an RFP of this type, you get the three or four guys who do this as their bread and butter.  It is all they do.  When things are tight you get another 25 firms who will submit bids.  Instead of getting bids from your typical four, five, six or eight well qualified contractors, you are getting bids from 25 contractors.  You are also having to go through those 25 contractors and see if they are qualified or not.  Then it becomes an interpretation issue back into who is qualified and who you throw out.  You are narrowing your pool of potential contractors. 

            Mr. Lyles stated I think this is the first time you have seen pre-qualification as an issue.  We do not have a set criteria because we did not do pre-qualification as a rule in the past.  As the manager is explaining they, with the engineer, have determined that given the climate right now we may end up getting a lot of bid packages which have to be reviewed by engineering.  In order to rule out people who are not really qualified to do this work, we have to go through each one in detail and have a position on each one.  In order to avoid this work, which takes time and therefore costs money, they are proposing in this instance and the first time in this particular Board’s experience to develop the necessary package to be used in this project only.  It is not a set criteria you will use for other projects.  They will make a value judgment as things go along as to whether or not pre-qualification makes sense.  It is something which is allowed by Florida Law.  It rules out a number of bidders from submitting a bid for staff and for consideration.  It narrows the range of potential qualified bidders which you will have to be dealing with.  It conceivably minimizes the potential for litigation when people do not get the job and they claim their bid was $150,000 lower than the person it was awarded to.  It is something which is more cumbersome and requires more effort on the front end.  I think what they are suggesting to you is it should avoid complications and potential exposure at the back end. 

            Ms. Zich asked so if we pay $23,000 for this, will we only get high grade people bidding on this?

            Mr. Skehan responded only qualified people.  The purpose is not to get only high grade people.  The purpose is to get people who meet a set of engineering based objective criteria, which are directly tied to the nature and extent of the infrastructure project this proposal is associated with and to keep a guy with a pick-up truck and a tool belt from submitting a bid.  This is an extreme example, but it is something government agencies like this one are concerned about on a regular basis.  If this guy comes in and puts the necessary paperwork together, even though he has never done a job like this before, we have to contend with potentially telling a court why we did not award him the contract.

            Mr. Cassel stated in economic times such as we are in right now, you will find somebody who is what I call a consolidator.  I may come in with a license and hire Mr. Johnson who has done it for several years on another project, but he does not have sufficient financial footing.  Then I team up with another person.  Basically, I put together a firm for one project as an offer.  I ran into a couple of those in the past.  They do not work.  Part of what this helps to do is eliminate this kind of consolidation effort where you get two or three different contractors putting together something just to land one bid.  You can set the parameters so you have someone where they are not a brand new operation which is being consolidated.  You can specify the exact times, and things like it, which again gives you a pool of bidders you have confidence in where any one you select will give you the product you are looking for when you are done.

            Mr. Fennell stated so you are for it, obviously.

            Mr. Cassel stated I have been there.  I have done it a couple of times in the past and I have been bitten by not doing it.  With the scope of this project and the current economic conditions I think it is a prudent utilization of District funds at this time. 

            Ms. Early stated we just did a bid for SWCD two months ago.  Like Mr. Skehan said, there were people coming out of the woodwork.  People I have never heard about and I have been here for 20 years doing construction.  There were 14 bidders.  We had a pre-bid meeting and they all brought five people.  My office was packed with all these people.  It backfired because they saw all of these people coming in with a tool belt as well as smaller companies.  They only got one bidder because they all got scared off saying, “I am not going to waste my time to put in a bid when you have some small operation here that is trying to get some work because they do not have anything going on.”  It kind of backfired for us whereas, like Mr. Skehan is saying, if we pre-qualify people, you are only going to get qualified bidders and they know who they are bidding against.  There are only so many people who can do this type of work. 

            Mr. Skehan stated we recently bid a project where we did not go through a pre-qualification.  It is down in Fort Lauderdale.  It was in front of the court services, right next to the wastewater plant by the 17th Street Causeway, with a 300 foot stretch of 40 inch force main raw sewage which has to be tapped into.  The low bidder at the time bid a $100,000 low.  We asked him what his qualifications were to be able to do some of this and the most he had ever done was a four or six inch pipeline.  The magnitude was significant.  He was actually happy he was not going to be awarded the bid at the time and backed out of it.  We learned our lessons along the way at different times and in different places.  You can get into a protracted bid protest.  Bid protests are timely.  They cost money also.  We do not need every small contractor showing up for something like this.

            Mr. Fennell asked are there any other comments from staff?

            Mr. Hyche responded we ran into this problem when we were doing Well #4.  The low bidder was not able to complete the job.  We had to go out and get someone else to complete the job. 

            Mr. Fennell stated be careful because this is also an opportunity to weed out qualified competition.  I can remember some issues when working with a firm and we would go to competitive bid.  We would hand them our specification and only we could make the particular product.  Be very clear that you can actually get more than one or two people who are qualified.  Do you know what I am saying?

            Mr. Skehan responded yes, absolutely.

            Mr. Fennell stated there is a real opportunity here for not just cutting off unqualified competition, but cutting off qualified competition.  That can get pretty messy too.  Are we also doing something from a financial standpoint? 

            Mr. Cassel responded it is part of the pre-bid qualification; not only the ability to do the work, but the financial funding status of the company.  All of this can be taken into the pre-qualification scenario. 

            Mr. Fennell asked so what are we going to end up with?  A document you are going to come back to us with or what?

            Mr. Skehan responded we will be working with the manager to move forward with the package and we speculate the package will be advertised in the next two weeks.  Keeping with the schedule we have we will be advertising and sending this out in August.  Then in early September we will be able to say we have a list of contractors.  Anyone who is pre-qualified will be required to bring their qualifications.  At that point we will be able to have the pre-qualification list and be able to send them the documents for the projects.

            Mr. Fennell asked how many companies do you intend to have as a minimum number for pre-qualifications?  It better be more than one.

            Mr. Skehan responded the last time I worked on a project like this we went through a pre-qualification and there were probably 20 contractors who showed up at the pre-qualification meeting.  We ended up with eight to ten bidders for a plant similar to this.

            Mr. Fennell stated if we get below three, something is wrong. 

            Mr. Skehan stated that will not be the case.

            Mr. Lyles stated staff is telling you their expectation.  We cannot set a threshold.  If we do a pre-qualification process, just as if we did a straight competitive bidding process, and we only get one bidder, then it can put you in a position of rejecting all of the bids and going out again.  You cannot say the whole process relies on getting a set number of qualified bidders.  It is not how this works.  That is their expectation and their experience, but they cannot guarantee you this process will generate any particular number of qualified proposals.  In fact, it will stop people from being able to pick up a package.  It is part of the purpose.  We do not have to assess and analyze their proposal.  They are not entitled to a package unless they meet the pre-qualification standards. 

            Mr. Fennell stated I guess I am putting my own spin on  the term competitive.  We need more than one, at least a minimum of three. 

            Mr. Skehan stated we anticipate a high level of  interest in the project based on the vendors we have seen who have been involved in some of the discussions throughout the design, contractors calling us to inquire what is coming up as well as what projects we have active in our books right now and there has been a handful of contractors who have done this already. 

            Mr. Fennell asked are there any questions?

            Ms. Zich responded no.

            Mr. Fennell asked do you want to make a motion?


On MOTION by Ms. Zich seconded by Mr. Fennell with all in favor Work Authorization No. 45 for the water and wastewater capital improvement program bidder pre-qualification was approved.


            Mr. Fennell stated now let us go to Work Authorization No. 46, groundwater modeling in support of the water use permit. 

            Mr. Cassel stated this is part of the three way split.  You actually come out ahead because you already fronted some money.  CSID’s portion is down to 16% of this particular piece since you already fronted money to get it started. 

            Mr. Fennell asked what was the response from the other parties?

            Mr. Cassel responded they are positive.  NSID already approved and signed it.  They are in.  Coral Springs is waiting to go.

            Mr. Skehan stated we anticipate that with your acceptance of this we will be bringing this same document to Coral Springs.  We think by the end of the week they will be signing this and will be on board to move forward.

            Mr. Fennell asked does this go before their board?

            Mr. Cassel responded I believe they already authorized their public works department and their Director of Public Works to get this done through their engineering firm.  They already authorized Eckler Engineering to do a model.  As part of the deal we work with Eckler Engineering and the department over there.  They needed to do it, we needed to do it, let us see if we can do some cooperative work to save money. 

            Mr. Fennell asked what part of the budget is this coming out of, the general fund or the water fund?

            Mr. Cassel responded this will be from the water and sewer fund.

            Mr. Fennell stated I am not sure what the appropriate one is.

            Mr. Cassel stated it will be water and sewer because it has to do with your water use permit. 

            Mr. Fennell stated it kind of affects both as far as I can see. 

            Mr. Cassel stated the groundwater modeling affects what you can pull out of the aquifer.

            Mr. Fennell stated it is also our canal structure and stuff like that too.

            Mr. Cassel stated that is correct, but it is primarily as part of getting our use permit redone.  We have to do this for the use permit, regardless.

            Mr. Fennell stated okay.  Are there any other questions or comments?

            There not being any,


On MOTION by Ms. Zich seconded by Mr. Fennell with all in favor Work Authorization No. 46 for groundwater modeling in support of the water use permit was approved. 


SECOND ORDER OF BUSINESS                          Approval of the Minutes of the June 23, 2008 Meeting

            Mr. Fennell stated there are two types of minutes this time; summary minutes and the normal type minutes. 

            Ms. Zich stated I looked at both and, to be perfectly honest, I am not sure.  Summary does leave some things out you sometimes want to know.  I think if we are going to figure out if we are going to go to summary, we wait so Mr. Hanks has input too. 

            Mr. Fennell stated okay.  I kind of thought it lost the flavor.  Maybe that was the goal.

            Ms. Zich stated I am so used to seeing everything, it kind of lost a little flavor for me too.  This is why I would not want to change it without Mr. Hanks’ input.

            Mr. Fennell stated my only opinion is it kind of lost the intent and a lot of the flavors that were there, even though I know it cost a little bit more.  Somehow, what our real thinking was at the time does not really come out.  It is just a summary.  I know 90% of districts are doing them, but I think we want to continue with the regular minutes. 

            Mr. Cassel stated that is fine. 

            Mr. Fennell stated we can bring it up again.

            Ms. Zich stated it was kind of interesting to go and see what the two would be like.  I am so used to having everything here.

            Mr. Fennell stated it was nice in a way to have a summary because you can actually pick out the key points.  I will not say who on this Board gets a little long winded.  There is a little pontification going on here, but it is not always me.  Anyway, I am kidding.  Are there any changes?

            Ms. Zich responded I looked through them and I thought they…

            Mr. Fennell stated yes, they were pretty good.

            Mr. Daly stated on page 14, about the third line down, it says, “we put out a bill for 5,600.”  It should be 56,000.

            Mr. Fennell asked is there anything else from anybody?

            There not being any,


On MOTION by Ms. Zich seconded by Mr. Fennell with all in favor the minutes of the June 23, 2008 meeting were approved as amended.


FIFTH ORDER OF BUSINESS                               Distribution of the Proposed Water and Sewer Budget for Fiscal Year 2009 and Consideration of Resolution 2008-7 Approving the Proposed Budget and Setting the Public Hearing (Continued)

            Mr. Fennell asked we voted on this, but are there any comments on it?

            Ms. Zich responded I had a couple of things to say and there are a couple of things pending so I think we should hold off discussing it fully until next month.  I think there are quite a few things Mr. Hanks could be changing here. 

            Mr. Daly stated health insurance has not come in yet.  They cannot bid until the beginning of August.  They cannot start looking at the numbers for us.  They still have not gotten back to us with real numbers.  We are bidding out the worker’s compensation this year.  We hope to get it underneath $100,000.  The highlight is Mr. Grimmel from our insurance company offered us a 15 month policy this year, beginning July 1, 2008 before the hurricanes hit.  Even though we are paid through the end of September, we will get $8,000 back from the $192,000 bill from last year.  This new year we are in now comes out to approximately $169,000.  We went from $290,000 two years ago to $169,000.  By the way, it is a $5,000 deductible now should we ever enter into a lawsuit with employees like we have.  That is just a highlight of what is going on with that.

            The lowlight is if you look at electricity, it is 16% across the board for FPL.  Chemicals, including cost increases and money to get it here as far as transportation, is really affecting us this next year coming up.  We have a $200,000 testing of the two injection wells.  Is this correct Mr. Hyche?

            Mr. Hyche responded yes.

            Mr. Daly stated this is once every five years.  It is not reflected in this budget.  It will be in there for next time.  It will be a little tight, but it will be within the realm of where we need to be with regard to debt service.

            Mr. Fennell stated refresh my mind with the rate increases.  We did one already.

            Mr. Daly stated two.  Both were done on July 1, 2008. 

            Mr. Fennell stated okay.  When is the next one?

            Mr. Daly responded 2009.

            Ms. Zich stated July 1 of next year. 

            Mr. Cassel stated as a point of clarification earlier, Ms. Zich, your motion was to approve Resolution 2008-7.  Is this correct?

            Ms. Zich responded yes. 

            Mr. Lyles stated that resolution approves the proposed budget, which is attached to it.

            Ms. Zich stated right.

            Mr. Lyles stated you were focusing, I think during the discussion, on the date of the public hearing.  The resolution both sets the public hearing and approves the proposed budget.  It is a two step process.  You have to approve the proposed budget and the final adoption is not until you have a public hearing. 

            Ms. Zich asked do we have to approve the preliminary budget?

            Mr. Lyles responded you have to do that before you have the public hearing.  It is part of the notice process.

            Ms. Zich asked can we accept this and make changes to it next month?

            Mr. Cassel responded yes.  This does not lock you in like your assessments, which you cannot exceed.

            Mr. Fennell asked what do we need to do now?

            Mr. Lyles responded in light of the discussion and the formal action previously taken setting the public hearing, someone needs to move to approve resolution 2008-7.

            Mr. Cassel stated or just clarify it.


On MOTION by Ms. Zich seconded by Mr. Fennell with all in favor Resolution 2008-7 approving the proposed water and sewer budget and setting the public hearing for September 15, 2008 at 3:00 p.m. was adopted.


            Ms. Zich stated I have a question on Wachovia again in light of everything which has been happening recently.  If something happens to Wachovia, we have an awful lot of money there.

            Mr. Cassel stated whatever funds become available, public depositories get paid first versus the rest of the people after.

            Mr. Fennell stated that is good for us, but it makes me scared for my own money.

            Ms. Zich stated after watching the people in California make sure it is less than $100,000.

            Mr. Daly stated I was under the impression the state would back it up.  A listing of banks are guaranteed by the state for government funds. 

            Mr. Lyles stated the state process is to develop qualified public depositories.  Unless a banking institution is on the state’s list of qualified public depositories by state statute, a local government entity such as this one cannot deposit its operating funds in the institution. 

            Mr. Fennell asked does this list exist now?

            Mr. Lyles responded the list exists.  It is against the law for a special district such as this to put its funds with somebody who is not a qualified public depository.  This is not a guarantee.  The state will not step in and back it up.  It just develops the criteria to make sure they are qualified to hold public funds.  It is more of a comfort level, but it is also a statutory requirement.  It is not the same thing as an FDIC, up to $100,000 per account, guarantee.  There is no guarantee.  There is vigilance. 

            Mr. Fennell stated there is insurance in other accounts above those amounts and stock accounts, but it is a private insurance. 

            Ms. Zich stated I was concerned because we have an awful lot of money in Wachovia.  I heard some things about Wachovia having bad months.

            Mr. Lyles asked is the money in an operating account or trust accounts?

            Ms. Woodward responded with Wachovia it is all operating.  With the general fund we do have one money market account holding the designated funds, which is roughly $875,000.  It is all operating.  All of the bond funds are with US Bank. 

            Mr. Lyles stated you are right to be concerned.  I think the word ‘vigilance’ is the operative one here.  At the first sign of trouble you will see staff making changes. 

            Ms. Zich asked is Ms. Rower aware of this?

            Mr. Cassel responded yes.  I spoke with Ms. Rower the other day.  She said the public depositories are protected better than everybody else, as much as they can be.  It is not just Wachovia.  If we jump from Wachovia to another public depository, are they next week’s story?

            Ms. Zich responded I am aware of this. 

            Mr. Cassel stated we have discussed this and tried to figure out if there is someplace else to put it.  Right now we are keeping an eye on it like everything else and we will see where we go from there.

            Mr. Fennell stated Governor Crist was one of the three people who were on the board.  There were only three people sitting as the Board of Supervisors for our government thing.  We still have some money stuck with the state.  The budget for next year seems to be close to this year. 

            Mr. Daly asked did you look in the plant?  It was $720,000 at the beginning of the year and it is $755,000.  Each one has its own little components. 

            Mr. Fennell stated $720,000 to $755,000 is a small increase. 

            Mr. Daly stated it is still an increase no matter what we do.

            Ms. Zich stated you are saying it is going to raise by 16%.  

            Mr. Lyles stated that is what they are looking at.

            Ms. Woodward stated in this original version you are looking at, we took the actual electric charges in all three areas, administration, plant and field, through May 31, 2008.  We projected out through the end of the year and made the assumption it would be our base for fiscal year ending September 30, 2008.  We took that number and multiplied it by another 16%.  To the extent there was less usage than we had budgeted last year, it does in fact assume what we were putting in.

            Mr. Fennell asked okay so finance got sharp with their pencils, but what about operations?  We were talking about an energy audit.  How are we doing with that?

            Mr. Cassel responded we have not started it yet. 

            Mr. Skehan stated we had discussions about it, but that is as far as it goes. 

            Mr. Fennell stated if Severn Trent does not have someone, you need to bring someone in from FPL.  We need to do it.  You need to walk around to all of the machines.  You need to make a power factor.  You need to measure all of these kinds of things.  There may be some operational things we can do.  I am suggesting there are other kinds of things.  There may be smaller machines you can do. 

            Mr. Skehan stated we have some folks who do this.  I spoke with them last week.  We might have someone come here initially for a day, spend some time around the plant, see what is here and then be able to have an idea of what level of evaluation to get into for this facility alone. 

            Mr. Fennell stated let us do it because I think there should be some things you can do.  I would expect through the power factor alone, you can save 5% of the 15% to 20%.  I just installed, in my house, a couple of capacitors which sit across the bus wire.  It balances out the magnetic forces which come from electric motors.  You have to check with FPL.  We get charged for voltage times amps.  They multiply those two together.  You are actually charged more at home than what you are actually using to move things.  There is some power, which is essentially wasted.  It is wasted when you charge up the electric motor.  There is a magnetic field that goes there.  It is typically anywhere from 5%, 10% to 15%.  Most of the time we have not done anything about it because it costs a fair amount of money.  It does not cost a lot of money. 

            The capacitors cost me $325.  I suspect I will save $300 to $500 this year because of the capacitors.  The reason I did this in my home is because most of my power is used by motors; compressors, fans, pumps for pool and pumps for water.  If I look around here, most of the items we are using our power on are in fact motors.  There ought to be a way to do something with this or we can talk to FPL and maybe they will cut us a better deal.  There should be something we can do.  We can cut 5% to 10% on an $800,000 bill.  We are probably close to $1 Million a year.   

            Mr. Daly asked what are you going to do for us, Mr. Skehan?

            Mr. Skehan responded I will probably have someone come down.

            Mr. Cassel stated do preliminary work. 

            Mr. Fennell stated I think we have to do this.  The savings will not be just what we have today.  It is going to be in our bills next year too.  This is a preemptive kind of thing.  I think there was a discussion last time about solar energy.  The most energy efficient thing you can do right now is to look at these engines and see what you need to do.  That will be the best buck spent.  The next one comes from insulation for air conditioning and things like it.  The other thing is there may be better ways we can run the operations.  You guys know this better than me. 

            Mr. Daly stated we installed computerized thermostats on all of these buildings now because it was freezing cold in here during the weekend and there was no reason for it. 

            Ms. Zich stated carpet cleaning.  I hate to be picky, but $4,400 for carpet cleaning.  What do we clean?

            Mr. Daly responded all of this carpet and we do plants some times.  Are you under plants or administration?

            Ms. Zich responded administration.  I just saw carpet cleaning for $4,400 and thought it was a lot for cleaning carpets. 

            Mr. Fennell stated in the end we actually end up with, I think, a $1 Million surplus.

            Mr. Daly stated we have approximately $200,000 which was not entered into the budget for the certification of the injection wells.  That has to come out and there will be some more tweaking of things.  I think it will be a little bit of a give and take in a way because we may be a little high on insurance, but maybe low someplace else.  When we get the final numbers in it will look more palatable to you next month. 

            Mr. Fennell asked when do we start having to pay for the millions of dollars we borrowed?  I know it is kind of already built in.  Right now I look at expenditures for debt service and we are just paying off the old ones.  Somehow we borrowed ahead to pay off interest we currently have.

            Ms. Woodward responded we have to start contributing on the 2007 bonds for the principal portion in 2015.  After this coming new budget year, fiscal year ending in 2009, in 2010 I believe we will have to start contributing on the interest side.  The reality of the situation is you currently have a total of three bond issues.  As the two older bond issues are being paid off, it is also going to be freeing up some of the money.  You will not have to come up with 100% new money to cover the 2007 bonds.  This is part of the computation we have to work into the budget. 

            Mr. Fennell stated meanwhile, it looks like we are still getting interest income.  We get interest in on the bonds, but somehow it becomes part of our bond fund.  Clarify this for me.

            Ms. Woodward stated the interest income on the 2007 bonds needed to be capitalized because we are in the process of building out your construction project.  As a result of this, there is an in and an out in the budget.  The money you earn on the 2007 bond fund cannot exceed what you are showing as an expenditure.  In the differential we need to make those two numbers balance.  They are allocated over into the construction project.  The reason I show the separate lines is so you are not counting on the additional money to be there and available to use for other items in your budget.

            Mr. Fennell stated okay.  I am trying to figure out cash assets.  I think there was a place for the water and sewer fund where you show what money we have in the accounts.  I think it was in the budget, but it was in the back of the package. 

            Ms. Woodward stated if you go back to the financials and get past the cover sheet, the next page is the balance sheet.  The $36,207,545 item represents all of the various bond fund accounts you have with US Bank.  It is the 1992, 2002 and the 2007, interest account, principal account and construction for 2007.

            Mr. Fennell stated the next page has fund balance and net assets.  There is $1,950,739 for restricted renewal and replacement.

            Ms. Woodward stated that is correct.

            Mr. Fennell stated there is another $2,962,315 restricted for debt service.

            Ms. Woodward stated that is correct.

            Mr. Fennell stated then another unrestricted $5,357,480.  If I add all of these together, it is approximately $10 Million.

            Ms. Woodward stated you are also looking at the $17.5 Million.  I think in the past you had seen, in the way of financials, a fund balance that would have shown $27,770,620 figure.  The natural tendency, if you do not see the detail, is to assume this large number is in cash and available for your use.  The reason for showing this detail is to let you know of the $27,770,620 the District is worth in these financials, you already invested $17.5 Million in assets.  It is not liquid.  Over the years, as a result of having three bond issues, we have a requirement that we need to fund money into a renewal and replacement fund so when plants start wearing out and needing major rehabilitation, we are in a position to cover it from funds which have been accumulated over the years.  That is in a trust account with US Bank.  We have to specifically budget to use the money in this account.  I do not use it just because I ran a little short in repairs and maintenance or office supplies.  We have to put it before the Board in advanced for the year to indicate we have a project which needs some rehabilitation funds used. 

            Mr. Fennell stated but we can spend it

            Ms. Woodward stated yes we can.  In fact, we have spent $62,000 of it this year from an item which was in your budget.  It was for the rehabilitation of wells #6 and #7.  We have a requisition upstairs for Mr. Cassel’s signature.  We are going to send the requisition to US Bank so they will send CSID a check for the $62,000 to reimburse us for those funds we already expended for that item.

            Mr. Fennell asked is there a requirement of how much money we need to keep in there or do we just have to spend it wisely?  How does it work? 

            Ms. Woodward responded I am sure there is a limitation.  Offhand, I do not know.  I am certain we are still in the accumulation phase because we have not even built out the $42 Million project we are working on.  What you are looking at is not just putting away funds to take care of what we are looking at right now.  We will have a whole new footprint here whenever we get the nano plant in place.  When you build something new for $42 Million the expectation is over a period of time, something major will need to be done for it and you do not want to go out for a new bond issuance for repairs or rehabilitation.  You want to be accumulating in advance.  This is a way of planning for the potential need.

            In addition to funding every month for anticipated rehabilitation of assets, the other thing we are doing is making certain on June , 2008 and December 1, 2008 when your bond debt service payment has to be made by US Bank on your three bond issues, we need to make certain there are sufficient funds in each of those principal and interest accounts so the amount can be paid out.  Those are amounts which are accumulated as of June 30, 2008.  The reason this number is a lot lower than what you saw in your May statement is because June 1, 2008 was the payment of principal and interest.  Large amounts were paid out and so we are down to $2.9 Million and each month we will continue to fund into it so there will be sufficient funds on December 1, 2008 to make the next payment.

            What you are really looking at is the number which most closely resembles the cash available for operation is probably the side considered unrestricted, which is the $5,357,480.  In fact, you have funds roughly equaling that in Wachovia in a money market account and also other operating cash accounts.  Those are the funds we use for day to day operations around here.

            Mr. Fennell stated currently we have $2.9 Million, but in reality for our budget per year for interest and principals we are roughly at a little over $2 Million.  Is this right?

            Ms. Woodward responded yes.

            Mr. Fennell stated we fund it every month.

            Ms. Woodward stated that is correct.  We are funding approximately $192,000 a month into various accounts including renewal and replacement as well as your debt service.  Every month you are going to see those numbers go up in the restricted renewal and replacement and the restricted for debt service.  With respect to the debt service, it will continue to rise until you get to December 1, 2008 when the next debt service payment is made and the balance goes down.  I will be continuing to fund. 

            Mr. Fennell asked what determines how much we keep in an account?  We have $2.9 Million sitting there.  We can actually not pay anything for a year and a half and still cover all of our debt payments.

            Ms. Woodward responded there is a requirement for a minimum balance.  I do not have the information with me right now.  I can look it up.  After each payment is made I contact US Bank and after they post those payments they develop a new amortization schedule with respect to what funds are going to be needed over the coming year.  We utilize this to backtrack and recheck our numbers in the budget from year to year to make sure we are funding sufficient amounts to have the funds available for the debt service payments. 

            Mr. Fennell stated we still have $5.4 Million above and beyond our bonds.

            Ms. Woodward stated that is correct. 

            Mr. Fennell asked do you have any more questions or comments?

            Ms. Zich responded no.  I am okay. 

            Mr. Fennell stated at this point there is nothing more to be done there.  We will move along to the next item.


THIRD ORDER OF BUSINESS                             Supervisors’ Requests and Audience Comments

            Ms. Zich stated I want to hear what happened with the fish last month.  We authorized fish to be placed in the canals.  I thought it was neat and now I am hearing the fish all died.

            Mr. Hyche stated they died before we could release them.

            Ms. Zich stated I know.  We talk about people we should and should not be doing business with.  Do they have a reason why they all died?

            Mr. Hyche responded this is a bad time of the year for the fish because of the heat.  This is why he did not want to deliver them at this time.  We usually get them earlier in the year when it is cooler.  This is why he wants to postpone the delivery until later.

            Ms. Zich asked have we paid for the fish?

            Mr. Hyche responded no.

            Ms. Zich stated I just heard about this.  Because I think it is neat I was curious about the fish.  Ms. Woodward told me the fish died.  I wanted to make sure we had not paid for it.

            Mr. Hyche stated the later on in the year, the better off we will be.

            Mr. Fennell stated I guess we can afford to wait.

            Mr. Hyche stated yes.

            Ms. Zich stated I know this is an unusual thing, but I was expecting to hear the fish were in the canal. 


SEVENTH ORDER OF BUSINESS            Staff Reports

A.                 Manager

i.                    Consideration of Resolution 2008-8, Supporting the Broward County Water Resources Task Force and Appointing a Task Force Representative

            Mr. Fennell asked is Glen already on this thing?

            Mr. Cassel responded yes.  Mr. Hanks is on this.  There is no action necessary at this time.  We can table this until a future date.  He has been appointed to it. 

            Mr. Fennell asked can we do this without him being here?

            Mr. Cassel responded the resolution is to support this action and not necessarily his appointment.  He has already been appointed.  This is the same Board, from what I understand, have tried to put special taxing districts out of business a few years ago.

            Mr. Lyles stated at this point they have delivered this without comment.  Special districts involved in drainage and water need to take a closer look at the objectives in mind before they endorse or support what might or might not happen in the future.  In the meantime, Mr. Hanks is on the Board.  I think staff would like to scrutinize this a bit further and get a better idea as to what they have in mind before it gets a formal vote from this Board. 

            Mr. Fennell stated this is not just putting someone on the task force.

            Mr. Lyles stated that is correct.  That is not what this is.  This is informational because they did direct it to this entity.  It is for your information, but there is no recommendation from staff at this moment to adopt this. 

            Mr. Fennell asked is there anything more on this?

            Mr. Cassel responded nothing on this.  Our infamous berm is constructed and landscaped.

            Mr. Daly stated it is all the way in the back between us and the apartment complex on the canal.

            Mr. Cassel stated these are shots which were done.

            Mr. Daly stated Ms. Early was almost out there with a shovel.  She really took control of this project and took ownership of it.  I have to commend her on it.  She is waiting for the city to come in to see this and sign off on it before they come back later on and hold up any of our seals.  This is what we are waiting on. 

            Mr. Fennell stated the city has not approved it yet, but we are waiting on them.  In my area near Ramblewood Drive, across from the canal, the city has put up these ugly green crash barriers.  They posted a bunch of signs in front of it saying, “by order of CSID, no trespassing”.  Did we post those signs? 

            Mr. Hyche responded we put some signs there because people were going back there to fish.  Those signs were there before the barricades were put up. 

            Mr. Fennell stated people have been fishing there for 30 years. 

            Mr. Hyche stated people are complaining.  We told them the best we could do was to post a sign.  Other than that, they could call the police and have them thrown out.  We put the signs up and then they went and put barricades up off the road.  These are supposed to be up everywhere there is a waterway to keep people from driving off into the canals.  They are still 20 or 30 feet away from the canal.  You can still go around it and end up in the water.  They would rather put them up than not. 

            Mr. Fennell stated those signs are pretty ugly.  They come across with a harsh tone.

            Mr. Hyche stated they are old.  Do you want new ones?

            Mr. Fennell responded actually just lose them for a while.  It is mostly neighborhood kids who go fishing.

            Mr. Hyche stated I do not know about that. 

            Mr. Daly stated maybe Mr. Hyche can bring the Board up to date on our generators.

            Mr. Hyche stated they are all complete and running.  All of the transformers are done.  FPL did them.

            Mr. Fennell asked did they replace the transformers?

            Mr. Hyche responded yes. 

            Mr. Fennell asked what was the real answer then?

            Mr. Hyche responded they never will tell you.  I could not get a straight answer on this.

            Mr. Fennell asked if the short was over there, did it actually blow up the transformer here?

            Mr. Hyche responded according to Edwards Electric what really happened, FPL will not admit it, was a fuse blew.

            Mr. Fennell stated the fact they still replaced the transformer still bothers me. 

            Mr. Cassel stated sometimes during certain periods of times they will change out transformers. 

            Mr. Hyche stated this building here was separate.  Now they have combined everything.

            Mr. Fennell stated so now if power goes down, we can still have an operational system here.

            Mr. Hyche stated this will be fully operational.

            Mr. Fennell stated when something goes wrong we get a bunch of phone calls.  How are we going to handle this?  Do we have a way to handle a large number of calls coming in?

            Mr. Daly responded there is an easy way to change the recording, but when something goes wrong they do not want a recording because they can get the same information from cable television or from the news.  We have an emergency list.  We can call people in and we have phones all over for staff to answer calls.  We have electricity.  We have a phone system, which will work.  It is nice and clean power.  We are at the point where we have an emergency book.  We go right to it and everyone is called.  Everyone comes in and mans the phones.

            Mr. Hyche stated one of the nice things about having this done now is the generator was completed with installation approximately a month ago.  It took some scheduling to get FPL in to be able to do this work for the new transformer.  Having the entire plant and this building operating on a standby generator for three days was a great test coming into the hurricane season.  It went flawlessly, which is a nice thing to be able to see. 

            Mr. Fennell asked are we ready for the hurricane season?        

            Mr. Hyche responded yes.

            Ms. Zich asked what is the $10,000 cash for hurricane preparedness?

            Mr. Daly responded it is a check.  As a hurricane comes down the pike and it looks like it is going to hit, we will cash it so we have funds available.

            Mr. Fennell stated because the last time it happened you could not buy things during a hurricane when the electricity is out.  It was a real problem because we wanted to buy more diesel and we could not.  As strange as it may seem or if you have to buy something such as ice, cash is king suddenly. 

            Ms. Zich stated I know.  I went to the pool store to buy chemicals to clean out my pool and he said, “no credit cards, no checks, cash only.”  I have been going there for years and he would not sell me chemicals with a check. 

            Mr. Fennell stated the first thing to go  when electricity goes is electronic money. 


ii.                  Monthly Water and Sewer Charts

            Mr. Cassel stated you have your monthly water and sewer charts as well as your work order information.

            Mr. Fennell stated the water quality-sodium hypochlorite.

            Mr. Hyche stated you will notice a 1.8 free chlorination.

            Ms. Zich asked what is it?

            Mr. Hyche responded it is our distribution system disinfection program.  We are required to pre-chlorinate the distribution system once a year.

            Mr. Daly stated it was actually in the Coral Springs local paper as well as the Sun-Sentinel. 

            Mr. Fennell stated the idea is we increase the chlorine value in order to try to disinfect the entire system.

            Mr. Daly stated we are trying to do it the same time as the city next year. 

            Mr. Hyche stated they tried to arrange it with us this year along with NSID, but they could not pull it together.  Just NSID and CSID did it. 

            Mr. Fennell asked were there any complaints from it?

            Mr. Daly responded a couple of people, but it was not bad. 

            Mr. Fennell stated people know we are building a new water plant here.  We still have our old ones going.  How are they holding up?

            Mr. Hyche responded number three has been sitting there.  It has not been redeveloped or redone in a long time, which is our largest producer.  The other two have been rehabilitated.

            Mr. Fennell asked we will have our nano-filtration plant on line and kicking out water by what date?

            Mr. Skehan responded two years from now.  We are projecting to bid this in September with a four to five day period for bidding.  We get the bids and evaluate them to bring our recommendation to the Board.  We will take the recommendation, get the contractor, execute it with the contractor and this will take us up to December probably.  They will probably begin the work in the beginning of January.  We are talking about an 18 to 20 month construction period. 

            Mr. Fennell asked will we have to do any work to the existing plants?

            Mr. Hyche responded we will have to do some work, but it will be minor. 

            Mr. Fennell stated meanwhile we have some interlocks.

            Mr. Hyche stated we are putting in new interconnects. 

            Mr. Daly stated the Board had asked if we have an Interlocal Agreement with the City of Tamarac.

            Mr. Hyche stated it was probably done on a handshake like it was done with the City of Coral Springs before.

            Mr. Fennell stated but we do have an interconnect with them.

            Mr. Hyche stated yes.

            Mr. Daly asked is it a small pipe?

            Mr. Hyche responded it is an eight inch pipe.

            Mr. Fennell asked what does this mean?

            Mr. Hyche responded it is larger than our original one with the City of Coral Springs. 

            Mr. Fennell asked what is their size compared to us?

            Mr. Hyche responded their capacity is larger than ours.

            Mr. Fennell stated okay.


iii.                Utility Billing Work Orders

            Mr. Cassel stated these are just for informational purposes.


B.                 Attorney

There being no report, the next item followed.


C.                 Engineer – Project Status Report

            Mr. Fennell stated you have a lot going on.  At this point it looks like we are in pretty good shape.  Financially we are strong.  We have recovered from the hurricane.  Despite the fact water sales are down, staff has done a great job keeping our expenses in line.  We have a plan going forward to increase rates as needed. 

            Mr. Daly stated Mr. Cassel and I had a chance to look at the two major projects sitting out here and they are pretty much done.  They are both at the 95% level.  It is nice to see.

            Mr. Cassel stated we are getting the existing done so when we tackle the new one we only have one to worry about rather than five or six things laying out to deal with.

            Mr. Fennell stated the other thing was we were going to have some kind of meeting, I think in August, where we were going to try to put together our own thoughts on where we want to go.  At least what CSID’s policy is on the greater world of water.

            Mr. Cassel stated yes.  After the evaluation you approved today is done, they should have the information to give you in late August to discuss in a workshop scenario and to look at what the potential impact is. 

            Mr. Fennell stated I actually attended one or two meetings several years ago with regard to the county and water.  They had gone through and tried to do water modeling for the county, but it actually did not end up going very far.  A couple of the movements which came out at the time were to consolidate everyone into one group.  The county felt because they are bigger they should be in charge, but they were not really contributing anything as far as water management.  They certainly were not contributing money.  Despite all of that, there still needs to be a coherent water policy.  I do not think this has been well represented yet.  What I can see, just from the general politics of the thing, the cities and the counties are not well represented in the battle for water.  There are a lot of issues I think need to come forward.  It will take a lot of time too.  I am not sure what we can do.  I think in the end what we have to do is make sure our views are well represented in the SFWMD Board.  We need to be putting input as to who we think should be on the Board.  We need to be looking at who we think are the right candidates.  Who knows?  It may end up being Mr. Hanks some day.  We need to have a coherent policy going forward.  Are there any other comments on this?

            Ms. Zich responded I heard Lake Okeechobee is up.  That is good for everybody.  If we can take off some of the restrictions, we could get more money. 

            Mr. Fennell stated when you start talking about the Biscayne Aquifer it automatically affects us.  When they keep saying it needs to flow the other way, not towards us, we have a real problem.  This is where the discussion is coming from.  To be honest, I think before we did all of these canal systems, we used to have a lot more water flow this way from the Everglades.  The reason we dug the canals was so it would not flow this way.




EIGHTH ORDER OF BUSINESS                           Approval of June Financials and Check Registers

A.                 Projected Cash Flows

B.                 Summary of Cash Transactions

            Mr. Fennell asked do you have any questions Ms. Zich?

            Ms. Zich responded no.  I am glad to see the SBA is down. 

            Mr. Fennell stated when I look through our general, overall, book here and I see all of the information we have, we look pretty confident.

            Mr. Cassel stated it reflects the Board’s conservative nature.  The Board, staff and management looks for alternatives as well as the impact over the long haul of what your decision process is and takes this into account so you do not get yourself out on a limb without realizing it.  This is probably the biggest focus, which is the difference between us and other entities out there.  When times are good, you have to watch things as closely as when things are tight.  It has been watched on both scenarios so we are in better shape than we could be.

            Mr. Fennell asked are there any other comments?

            There not being any,


On MOTION by Ms. Zich seconded by Mr. Fennell the meeting was adjourned.


            Mr. Cassel stated we need a motion for the financials.

            Mr. Fennell stated I am sorry.  We will reopen the meeting.


Ms. Zich MOVED to approve the financials.


            Mr. Lyles stated the record is still being maintained.  You just made, seconded and passed a motion so you need to make a motion to reconsider the motion to adjourn in order to open up the meeting again.


On MOTION by Ms. Zich seconded by Mr. Fennell with all in favor the motion to adjourn was reconsidered.


On MOTION by Ms. Zich seconded by Mr. Fennell with all in favor the meeting was reopened.


On MOTION by Ms. Zich seconded by Mr. Fennell with all in favor the June financials and check registers were approved.


NINTH ORDER OF BUSINESS                             Adjournment

            There being no further business,


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







 Glen Hanks                                                                    Robert D. Fennell                                

 Secretary                                                                         President