MINUTES OF MEETING

CORAL SPRINGS IMPROVEMENT DISTRICT

 

            The regular meeting of the Board of Supervisors of the Coral Springs Improvement District was held Monday, November 25, 2002 at 4:05 P.M. in the District Office, 10300 N. W. 11 Manor, Coral Springs, Florida.

            Present and constituting a quorum were:

 

            Robert Fennell                                      President

            William Eissler                                      Secretary

            Karl Miller                                              Vice President

 

            Also present were:

 

            Gary L. Moyer                                       Manager

            Rhonda K. Archer                                 Finance Director

            Dennis Lyles                                          Attorney

            Donna Holiday                                      Recording Secretary

            John McKune                                        Gee & Jenson

            Roger Moore                                           Engineer

            Vivian Cerecedo                                    Trustee

            Lydia Kiser                                             Investment Banker

            Denise Ganz                                           Bond Counsel

 

 

FIRST ORDER OF BUSINESS             Roll Call

            Mr. Moyer called the meeting to order at 4:05 p.m.

 

SECOND ORDER OF BUSINESS         Approval of the Minutes of the October 21, 2002 Meeting

            Mr. Fennell stated that each Board member had received a copy of the minutes of the October 21, 2002 meeting and requested any additions, corrections or deletions.

            There not being any,

 

On MOTION by Mr. Miller seconded by Mr. Eissler with all in favor the minutes of the October 21, 2002 meeting were approved as presented.

 

THIRD ORDER OF BUSINESS            Consideration of Documents Related to the Refinancing

            Ms. Kiser stated the purpose of the refinancing was to refund all of the District's 1978 Bonds and a portion of the 1992 Bonds.  The total amount refunded was $8.6 million.  We purchased municipal bond insurance from a company with a AAA rating to cover the principal and interest on the bonds for 50 basis points which is what we assumed in our preliminary analysis.  In addition to purchasing the municipal bond insurance policy, we purchased a debt service reserve fund surety.  A debt service reserve fund is something that your current bonds are structured with and the bondholder required in the event of a shortfall in revenue, the reserve is there to help pay debt service.  That reserve is currently satisfied with an existing surety and cash.  MBIA agreed for a premium of 3% of the cash portion, to provide a new surety for the entire reserve and that freed up about $455,000 that was on deposit in the debt service reserve fund.  We felt that was a reasonable and very competitive rate based on what we have seen for other transactions.  We priced the bonds last Tuesday and ended up with coupons ranging from 1.45%  in June 2003 all the way to 4.08% in June 2014.  The total savings of the transaction on a gross basis is $842,000 and on a net present value basis approximately $730,000.  That represents about 8.45% of the principal refunded which was in excess of what we presented to the Board in August.  The overall yield on the bonds is approximately 3.8%.  The cost of the surety was paid out of the cash released from the reserve.  Under "uses of funds" is the amount used to call the bonds, a premium of 2% on the 1992 Bonds, the 1978 bonds were callable at par.  There is the cost of the bond insurance, the surety bonds and that resulted in a total par amount of $9.12 million. 

            Mr. Moyer stated the $444,000 under sources and uses of funds is primarily monies that came out of the debt service reserve fund.

            Ms. Kiser responded that is correct except for the $11,000 that is the cost to purchase the surety. 

            Ms. Archer stated we had to covenant to spend that money within a year from today which will be no problem with all of the projects under construction. 

            Mr. Moyer stated although the net present value is impressive all by itself, freeing up the $444,000 is in addition to the $842.000.  You are really looking at the District having saved in this transaction $1.2 million.

            Mr. Miller asked what action is required of us today?

            Ms. Archer responded you have already taken all the action by authorizing Mr. Fennell to sign the documents if it fell within certain parameters which it did.  Mr. Fennell came in last week and signed all the documents and we will ask you to close this afternoon and we will fund Wednesday.

 

FOURTH ORDER OF BUSINESS        Consideration of Award of Contact for the Purchase of Chemicals and Herbicides

            Mr. Moyer stated we distributed a memo in response to Mr. Miller's interest in the amount of herbicides we used in the aquatic management of the District's canal system.  It shows the number of acres that have been treated and what we treated for.  That is informational and ties into the award of contract for chemicals and herbicides that we are asking the Board to consider for use this year that are listed in the bid tabulation in your agenda package.  The low bids are highlighted.  What we have done in the past is ask the Board to award to the low bidder with the understanding that if one company cannot provide the herbicide either because of shortage or time frames they cannot meet to coincide with our schedule, that we can then go to the other bidders with the same bid.  The advantage of doing that is that it keeps them all in the game. 

            Mr. Miller stated we have dealt with Helena Chemical before.  Have we dealt with the other two in the past?

            Mr. Moyer responded yes.

 

On MOTION by Mr. Miller seconded by Mr. Eissler with all in favor the contract for the purchase of chemicals was awarded to the low bidder in each category having the ability to order the chemicals from any of the low bidders.

 

FIFTH ORDER OF BUSINESS            Consideration of Surface Water Management Permit for Riverside Park

            Mr. Moyer stated you have the engineer's letter of review in the agenda package.  Based upon the Board's direction at your last meeting we will add to the permit that it is to be renewed five years from date of issuance. 

            Mr. McKune stated this is an existing park and they are adding a retention area in the southeast corner and they are adding an outfall.

 

On MOTION by Mr. Miller seconded by Mr. Eissler with all in favor the surface water management permit for Riverside Park was approved subject to the condition that it be renewed in five years.

SIXTH ORDER OF BUSINESS            Continuation of Discussion of Water Management Permit Renewal Policy

            This item deferred until the January meeting.

 

SEVENTH ORDER OF BUSINESS      Staff Reports

          A.    Attorney

            Mr. Lyles stated my efforts this past month have been primarily for the bond issue.  

 

          B.    Engineer

            Mr. McKune stated the schedule that I distributed covers expenditures for the next two years.  If you will look in the middle of the first page, under "Required Immediate Improvements" items 3 and 4 are two items that are very important from my perspective.  Item 3 is the backwash basin and pumps to replace a basin that is at this time a hole in the ground that overflows into the canal system and on an annual basis we go in with a dragline and clean out the canal.  We would like to incorporate a new concrete lined basin with a more positive pumping system that will totally capture all of the water and prevent it from going into the canal.  This would normally be a part of the overall plant expansion but since our detailed plant expansion will not occur for quite some time, I would like to break this item out and incorporate it.  This is for the water plant.  When we backwash the filters it goes into the settling pond and we reclaim clarified water back into the plant.  I would like authorization to start the preparation of plans and specs. 

            Item 2 is lightning surge protection and is something that has caused problems for some time in losing telephone, and computers resulting from lightning strikes directly on the plant site or nearby with surges coming in over FP&L service lines.  This is a quote we received from Lightning Master.  We spoke with several firms and this was the most complete and cost effective quote that we received. 

            Mr. Miller asked how much of a problem has this been?

            Ms. Archer responded it has been quite a problem especially with our phone system.  Several times a year we are getting hit by lightning and we lose our phones for a couple of days at a time until we get equipment ordered and brought in and replaced. 

            Mr. McKune stated all seven items need to be done. 

            Mr. Fennell asked what are you asking for today?

            Mr. McKune responded I would like to do the force main relocation by change order because this will require the contractor to come in and work on the same pipes we are currently working on with this contractor.  This is based on a detailed quote from the contractor that involves piping, temporary pumps and it is a reasonable number.

            Mr. Lyles asked is that based on unit prices in the underlying contract to which the change order would apply?

            Mr. McKune responded no, because that contract was a lump sum contract. 

            Mr. Fennell stated I propose you get bids on all three items.

 

On MOTION by Mr. Fennell seconded by Mr. Miller with all in favor staff was authorized to get bids on (1) lightning surge protection, (2) backwash basin & pumps and (3) incoming force main relocation.

 

            Mr. Moyer asked is there any status on the permits and the City's willingness to issue them?

            Mr. McKune responded we met with the new assistant building official and the new development director and she was very perceptive, and understanding and appeared to be very cooperative. 

            Mr. Moore distributed the estimated schedule for maintenance software. 

 

EIGHTH ORDER OF BUSINESS         Supervisors Requests and Audience Comments

            There not being any, the next item followed.

 

NINTH ORDER OF BUSINESS            Approval of Invoices and Requisitions

 

On MOTION by Mr. Eissler seconded by Mr. Miller with all in favor the invoices and requisitions were approved.

 

            Meeting adjourned at 4:50 p.m.

 

 

 

                                                                                                                                                      

William Eissler                                                        Robert D. Fennell

Secretary                                                                  President