MINUTES OF MEETING
The regular meeting of the Board of Supervisors of the Coral Springs Improvement District was held on Monday, January 24, 2005 at 4:05 p.m. at the District Office, 10300 NW 11th Manor, Coral Springs, Florida.
Present and constituting a quorum were:
Bob Fennel†††††††††††††††††††††††††††††††††††††††††††††††† President
Bill Eissler†††††††††††††††††††††††††††††††††††††††††††††††††† Vice President
Glen Hanks††††††††††††††††††††††††††††††††††††††††††††††† Secretary
Also present were:
Dennis Lyles†††††††††††††††††††††††††††††††††††††††††††††† Attorney
John McKune†††††††††††††††††††††††††††††††††††††††††††† Engineer
Dan Daly††††††††††††††††††††††††††††††††††††††††††††††††††† Utility Billing
George Keller†††††††††††††††††††††††††††††††††††††††††††† Severn Trent Services
Ed Goscicki††††††††††††††††††††††††††††††††††††††††††††††† Severn Trent Services
Jean Rugg ††††††††††††††††††††††††††††††††††††††††††††††††† Severn Trent Services
FIRST ORDER OF BUSINESS†††††††††††††††††††††††† Roll Call
††††††††††† Mr. Fennell called the meeting to order and Mr. Hans called the roll.
SECOND ORDER OF BUSINESS††††††††††††††††††† Approval of the Minutes of the December 20, 2004 Meeting
††††††††††† Mr. Fennell stated that each Board member received a copy of the minutes of the December 20, 2004 meeting and requested any additions, corrections or deletions.
††††††††††† Mr. Eissler stated on page seven, in line 14 it should read, ďÖwe can have them come downÖ.Ē
THIRD ORDER OF BUSINESS†††††††††††††††††††††† Staff Reports
A. Attorney Ė Lake Maintenance Agreement with Lake Coral Springs Association
††††††††††† Mr. Lyles stated this issue is still pending.† They requested, and the manager is in the process of complying, a breakdown and a historical summary of the cost and expenses that were incurred by the District, and from that will come a projection of what they can expect for the future.† As soon as this is finalized, the terms of the agreement will be completed and we will bring it back to the Board for signature.†
††††††††††† 1.†††††††† Monthly Water & Sewer Charts
††††††††††† Mr. Fennell stated I see that you added another category called ďbilled.Ē†
††††††††††† Mr. Daly stated depending on the billing cycle, there will be a slight variance because our billing is scattered throughout the monthósome are on the first, some are on the 15th and some are on the 30th.†
††††††††††† Mr. Moore reviewed the Quantity Processed Summary; and an explanatory discussion session took place.†
††††††††††† Mr. Eissler stated if we have more infiltration by outside water, does it cost us more to treat it?
††††††††††† Mr. Moore responded the chemicals are based on the amount of water that goes through.† The difference is the amount of sludge that is produced.† The blowers run 24 hours a day, which is your electrical expense.†
FIFTH ORDER OF BUSINESS†††††††††††††††††††††††† Approval of Invoices
††††††††††† Mr. Fennell stated we will move on to the approval of invoices and come back to the second part of the engineerís report.
††††††††††† There being no questions or comments on the financial and invoices,
Other Business Ė Discussion of Severn Trent Services and Evaluating Districtís Structure
††††††††††† Mr. Fennell stated I received an interesting letter from one of our employees about changes that are being done within the District; and I also understand Mr. Hans will be departing this office.
††††††††††† Mr. Hans stated I have submitted by resignation to Severn Trent.† It is time I work outside the confines of what I call a large corporate environment.† The changes that have taken place over the years are not what I preserved.† They are not all bad, but it is not the way I would have liked to have seen Severn Trent progress.† It is time for me to move on.†
††††††††††† Mr. Eissler stated when there is a large number of resignations in a small period of time it usually indicates there are some problems [good or bad]; namely Mr. Moyer, Ms. Archer, Ms. Holiday and now Mr. Hans.† There are times where this happens in any corporation and there is a reason.† This came up recently.† I donít know the reasons and people move on for a thousand reasons.† It is not always bad.† Sometimes, it is the way it is.† I would like to have a response.
††††††††††† Mr. Goscicki stated to clarify Mr. Moyer did not resign; he shifted into another role in the company and he still has a contractual relationship with us and is still working actively with Severn Trent on District Management, as well as sitting in on a number of districts.† Mr. Moyer chose after five years of selling the company to move on to a different opportunity, but we have a close working relationship with Mr. Moyer.† Mr. Moyer recently conducted a two day training session for our managers.† We are going through some changes with Mr. Moyerís department.† The company has lost the 30 years of doing business in a particular way; and we are moving towards a structured corporate environment.† We are moving from an organization that was four separate companies when Severn Trent bought the companies and we are melding those companies into one entity.† Policies have changed in some areas and some practices have changed.† That is going to result in some turn-over.† Reality is that we have brought on as many people in senior management positions as we have lost.† In the last year five senior managers have been hired on the District Management side.† We brought on four senior level accountants and the transition is always trying.† Unfortunately this is something Severn Trent has grown through its acquisitions.† It is a challenge to work with.† The challenge within Severn Trent is to make sure during this transition that the service to our customers does not suffer; and that is our primary goal, and to strive as we move forward to provide a higher a quality of service.† The department of Mr. Hans will be an impact to us, as well as the way we help manage this region, but we will do whatever we need to make sure we fill that function.†
††††††††††† Mr. Eissler asked did you take over when Ms. Archer left?
††††††††††† Mr. Hans responded that is correct.†
††††††††††† Mr. Goscicki stated it is a natural evolution.† Mr. Moyer has an opportunity to get into a new business; Ms. Archer decided she wanted a different lifestyle for her family and relocated to Tennessee; and as a result Severn Trent has taken a more active role in the management and restructuring of the organization.† We tried to convince Mr. Hans to stay.†
††††††††††† You indicated about additional changes in the District itself.† I am not aware of any, and Severn Trent has not proposed any changes other than the potential cost savings study we identified for you.
††††††††††† Mr. Fennell stated this is a good time for us to review where we are.† How many years has Severn Trent been with us?
††††††††††† Mr. Goscicki responded six years.†
††††††††††† Mr. Fennell stated our current contract is an automatic renewal ever year.† The issue moving forward is evaluating all of our different functions and a full cost benefit analysis.† Identifying all the functions we pay for, figuring out how much they are and what we are getting for them.† Right now there are three functions we get from Severn Trent.† One is general management; utility and billings [and we have some of the internally], and engineering [and we have another engineering group that contributes].†
††††††††††† Mr. Goscicki stated Mr. Moore handles the operations oversight and not engineering in terms of design--that is your District Engineer.†
††††††††††† Mr. Fennell stated we need to understand what each one of those functions costs.† What are the benefits we are getting from it [what actually happens in each case], how do we get what we think we are getting; and how do we know what we are getting.† Since you manage so many districts, how do we know we are getting what we pay for?† Under management it is harder to determine if you are getting what you actually pay for.† I have been asking for more management structure here for the last few months.† The manager needs to have enough time to think about his operations so he can make improvements.† If he is working on someone elseís project, I am not sure that is happening.† This is a time to review the support functions and have a per case basis of the total costs and the detailed benefits for each function.
††††††††††† Mr. Hanks stated we have several different companies involved in this District, Severn Trent, CH2M-Hill, CSID employees.
††††††††††† Mr. Fennell stated I would like to see what those different functions cost, and I will look at it from an evaluations standpointówhat is the cost and what is the benefit.†
††††††††††† Mr. Eissler asked how many people are in this building that work for Severn Trent full time or part time?
††††††††††† Mr. Hans responded there are a total of six.
††††††††††† Mr. Eissler stated their salaries are paid by Severn Trent.
††††††††††† Mr. Hans stated that is correct.
††††††††††† Mr. Eissler stated we reimburse on a contract basis for Mr. Hansí time.† We do our own billing.
††††††††††† Mr. Fennell stated we do our billing; but we donít own the machine or the software, Severn Trent owns the software.†
††††††††††† Mr. Eissler stated that may be the way to go.†
††††††††††† Mr. Fennell stated it is a point we will have to prove as we go through in cost reductions.† We have to prove to ourselves every couple of years what is the benefit of the services we currently have; what should be done; and how can we restructure those.† We have been pressuring the engineers, but we also need to do that for the overhead.† I am looking for a complete understanding of our headcount [CSID and Severn Trent]; what is the cost of that function; [management, billing, operations]; and are these the most cost effective ways to for us to do this.† Maybe it is.† Suppose in billing we decided to pull that all in house.† I can think of several different ways to do that.† One would be doing it all under contract with an outside company.† Would that be cost effective?† What happens if we continue or pull it all in house?† What happens if we move it all to Severn Trent?†
††††††††††† Mr. Hans stated billing is handled currently in house.† That is Mr. Dalyís responsibility.† It was Severn Trent and he was at one time a Severn Trent employee, but that has been pulled in house, except CSID does not own the machine.†
††††††††††† Mr. Fennell stated I am looking at all those possibilities.† Maybe it would be better to put the entire function to an outside provider who is a professional million dollar manager for utilities.† We need to look at that function each way; and understand the best cost.† There are some benefits to keep the most important things under your own control.† It may not be a cost benefit; but it is a control benefit.
††††††††††† Mr. Hanks stated we also have an aging system.† Who is going to be best suited to help us navigate through the refurbishment of the plant; through ongoing capital expenditures?† Is that someone in house?† Do we have that person in house?† Does Severn Trent provide that person?† That is something we have to think about.
††††††††††† Mr. Eissler stated we are looking at a $17 million investment over the next five years.† As a sideline, if you work for Severn Trent where do you get your benefits?
††††††††††† Ms. Rugg responded Severn Trent.
††††††††††† Mr. Eissler asked do you come under CSID at all?
††††††††††† Ms. Rugg responded no, sir.
††††††††††† Mr. Fennell stated we have management, billing and accounting, and what alternatives we have.† Going forward we will need to look at these things every couple of years.†
††††††††††† Mr. Hanks asked how is this transition going to occur right now, and how is that going to affect the operation of the District?
††††††††††† Mr. Goscicki responded Mr. Keller has been sitting in on these meetings, and he was getting familiar with District operations and backing up Mr. Hans.† That was always part of the plan.† Mr. Moyer still has a contractual relationship with us and he can provide additional support for this District.
††††††††††† Mr. Fennell stated thatís good, but Mr. Moyer sold out several years ago and so did Ms. Archer.† They are good people; we trust them; but frankly they are gone.† We are concerned about who is doing this today and what is going to be the structure going forward.† We need to know the current plans, who is doing what, what their job functions are, what they are responsible for.† It is important to us who runs the plant.† We have approval of that.
††††††††††† Mr. Lyles stated the management contract you have with Severn Trent specifically provides that any change in the primary responsible manager is with the approval of the Board.†
††††††††††† Mr. Fennell asked what are our choices?† I hope we are not presented with just one option.†
††††††††††† Mr. Goscicki responded we will be prepared at your next Board meeting to discuss all those issues.†
††††††††††† Mr. Fennell asked who will be our manager for the next month?
††††††††††† Mr. Goscicki responded Mr. Keller.† He has been backing up and working with Mr. Hans on a lot of Districts.† He will step in as the interim District Manager as we go through and shuffle work load.† I mentioned Mr. Moyer earlier because Mr. Moyer brings 30 years of history of this District.† As Mr. Keller is brought up to speed and he has issues or concerns, we have Mr. Moyer as a resource.†
††††††††††† Mr. Eissler stated our responsibility is to oversee the running of the operation and to make sure the money is used wisely to ensure the plant runs at its best.† Who actually does it; is the best people available?† Our job is not to run this on a day-to-day basis.†
††††††††††† Mr. Hanks stated we need to know how it should be run on a day-to-day basis.† We always had a benchmark with Mr. Moyer and Mr. Hans as to where things are.† We have always had familiar faces and a level of trust.† This is a change and I am sure it is many times harder for Severn Trent; the challenge will be to establish the level of trust so we have a comfortable level.†
††††††††††† Mr. Eissler stated when these many changes occur, something is amiss.† I donít know what it is.† You do your part; we will do our part; and hopefully everything will be fine.
††††††††††† Mr. Goscicki stated we look forward to coming to the next Board meeting to talk to you and lay out the services we provide on the management side; the fiscal management, the records management; the operating oversight; and the additional things we will bring to the table as far as the cost effective analysis; and the people skills Severn Trent has the ability to bring to the table as part of our management oversight.† This is a relationship type business.† You need the comfort that we have the systems and processes in place to manager your finances appropriately for you; but the confidence in the individuals that you deal with on a day-to-day and are working for the benefit of this District.† We will give you that confidence.
††††††††††† Mr. Fennell stated we have to make decisions as to which management system is best--whether it be Severn Trent, someone else, or do everything in house.† I hope you can advise us an unbiased opinion.† Do we need to bring in someone to look at this organization?
††††††††††† Mr. Hanks responded we all have experience on different aspects being management, chemicals and energy, engineering, and personnel.† We need to look at what needs to be done and how well are things being done.† We need to make that decision as a Board rather than paying out money to another consultant.
††††††††††† Mr. Fennell stated we need to figure out when is the appropriate time to go to an outside vendor and when is it an appropriate time to bring that skill in house.†
††††††††††† Mr. Hanks stated if we are not qualified to make those types of decisions, then how are we qualified to say consultant ďxĒ go critic this consultant.†
††††††††††† Mr. Fennell stated we as a Board need to do this, above and beyond Severn Trent.† The structure we currently have has more to do with history.† Westinghouse was running the District to begin with.† Now we are independent and we have to think about how this District should operate from that paternalistic viewpoint and operate from a business standpoint.† It may be time to shake some of that history up and think about what we should be doing and what is the right way to run this place.†
††††††††††† Mr. Hanks stated think about how everyone fits in.†
††††††††††† Mr. Fennell stated years ago there were just small little housing developments, and we have grown to full capacity and we are built out.† At $8 million it is a substantial business and we have $50 million in assets.† We can stand on our own, and we have enough employees to do that.† It is up to the Board to determine that.† What is the right place to have our own people, and where is it not?† In some ways this will be an opportunity to evaluate our entire structure.
††††††††††† Mr. Goscicki stated some of our mature clients are moving from developer controlled Boards into resident control Boards and we are proposing some structure workshops.† We bring in an external facilitator to work with the Boards for strategic planning and visioning in terms of what are the issues facing you and what is the Districtís vision as it moves forward; and we, as your manager, have a good understanding of your goals and objectives.† We have been with you and grown with you for 30 years.† Our management has shifted over the last few years, and it is an appropriate time to sit back to evaluate the services the District wants and needs; and how do we facilitate bringing those services to the District, or if there are other ways to provide those services that are more efficient.† We will be happy to start that process for you.†
††††††††††† Mr. Eissler stated I donít have a problem with that.† There is enough talent on this Board to make most decisions.† We need the bankers to help us with the bond issues.
††††††††††† Mr. Hanks stated what limits us as a Board is meeting once a month for a couple of hours.†
††††††††††† Mr. Eissler stated if Severn Trent gives us enough information, we can make decisions on a monthly basis.
††††††††††† Mr. Fennell stated this particular case may require an additional meeting.† This is a meeting you hold once every 5 or 10 years.†
††††††††††† Mr. Goscicki stated these workshop sessions are typically outside of the normal Board meetings and run longer than two hours.
††††††††††† The Board agreed they would be happy to attend a workshop meeting.
††††††††††† Mr. Hanks stated over the next couple of months we need to deal with the capital improvement plan to bring into focus.† It may be a little premature for the February meeting.
††††††††††† Mr. Fennell stated if we are going to change your viewpoint of where you are going, we need to change that first before we issue $17 million in bonds.†
††††††††††† Mr. Eissler asked are there any restrictions on our meetings?
††††††††††† Mr. Lyles responded it has to be in the Sunshine, even if it is a workshop, noticed in the newspaper and will be an informal give and take, questions and answers, on a more free-formed session.†
††††††††††† Mr. Eissler asked is your presence required?
††††††††††† Mr. Lyles responded it is not required.† I have participated in workshop routinely.†
††††††††††† Mr. Eissler stated I would be more comfortable if you were there.†
††††††††††† Mr. Fennell stated we should also have some of our key employees here from operations, billing, etc.†
††††††††††† Mr. Hanks asked what type of information can you provide ahead time before we go into this special meeting?
††††††††††† Mr. Goscicki responded we will have a facilitator call you individually and get some information on what you see are the issues facing the District.† From that he will structure an overall agenda that brings those issues into focus.† Getting input from local sources is an important part of that.† You are looking at internal and external influences as to what you are doing, how to move forward in the future.†
††††††††††† Mr. Eissler stated if we do this right we will be supplying water for the next 30 years with a very efficient plant.† I think it is a good idea.† I donít know how we want to implement something like that.†
††††††††††† Mr. Fennell stated the tactics of how we do things are the issues.† Come loaded with tactically information.† We need to look at each function.†
††††††††††† Mr. Eissler stated if I was Severn Trent I would come into this meeting saying I want your business and here are the reasons why.† Here is what I can do for you.† Here is what I have done.† Here is what I plan to do and I am the best guy to do it.
††††††††††† Mr. Goscicki stated we also will want to ascertain what the certain objectives are of the Board in terms of moving forward.† We identified some cost savings but we never had a discussion with the Board as to how we address these issues in an overall business strategy and what are the limits on that strategy in terms of moving forward.†
††††††††††† Mr. Eissler stated our goal is to keep this plant running by doing continual improvements; and to produce water and sewer treatment the best possible way for our customer.† Our goal is not to make a lot of money.†
††††††††††† Mr. Fennell stated this District will keep going for the next 100 years and beyond.† Businesses are bought and sold, come and go, and this has to be an ongoing entity.† My goal is to structure this District despite any kind of turn over, so we can move from one accounting firm to another, one engineer to another, one management firm to another or bring certain things in house.† I donít want us to be depending on one firm or one person, and have interchangeable parts.†
††††††††††† Mr. Hanks asked what happens if say CH2M-Hill decides to sell off their utility engineering division and they no long can provide services?
††††††††††† Mr. Lyles responded while our professional services agreement with our engineer does not allow us to have a say in their strategic planning, we do have the right to terminate the agreement and put it out through the CCNA and rank the applicant submittals based on experience and that is what we would do.†
††††††††††† Mr. Hanks stated when Gee &
Jenson was sold to CH2M-Hill, at that point we could have reco
††††††††††† Mr. Lyles stated we always have that option and it does not have to be based on their change in structure, but based on your ability to terminate an existing agreement and go out through the statutory process bring in a group of engineers to make proposals to you for evaluation and ranking.†
††††††††††† Mr. Fennell stated we, as a Board, need to look at those kinds of issues and the ability to survive those kinds of changes best, such as where are all the engineering specifications.†
††††††††††† Mr. Hanks stated the true key personnel to run this operation.†
††††††††††† Mr. Fennell stated the key people in this operation that has the understanding of what goes on, and farm out additional work.† That might be true in accounting, engineering, or management, so any kind of changes that do come along we can weather easily.† We are looking for efficiency, longevity and the ability for the operation to keep surviving.† These services have to go on.
††††††††††† Mr. Goscicki stated the Board would like us to come back with some business plan and a business analysis that looks at your key objectives of the business, being longevity, permanency and efficiency of the operations you provide to your clientel and what the different service delivery options are to assure you achieve that goal.† We can do that in a workshop setting with you sometime in March, and include in some analysis what we provide for you right now as part of that discussion.
††††††††††† Mr. Fennell stated we can gather as much information as we can now and I would like to hear about alternative for accounting, billing, and tie it all together at the March workshop.†
††††††††††† We also have customers and it is important how we serve them.† We also need to be a good citizen and a good employer.† Employee satisfaction and longevity is important to us.†
††††††††††† Mr. Hanks stated we also want to keep Severn Trent happy.† It does not do us any good for them to give us this information and then say we are not happy.† What are the benefits Severn Trent is looking for to keep them happy?
††††††††††† Mr. Goscicki responded to keep serving your clients.† We never really addressed the service Severn Trent could provide.† We just continued to provide the services that Moyer & Associates provided for 30 years.† We have not held any workshops or discussed with the Board terms of what else we can do or not do.† That will be part of the business plan to discuss how different services can be delivered.† There may be services we can provide that we are not doing now, and here are our three options in doing that.†
††††††††††† Mr. Hanks stated a detailed description of what each personís responsibility, and the current staff assigned to it for CSID and what the other options are.
††††††††††† Mr. Goscicki stated we will also expose to you the other things you do not know about such as the staff of 45 people in the building Ĺ mile down the road who help serve CSID.†
††††††††††† Mr. Eissler stated I was unaware of that.† Mr. Moore is here and is a Severn Trent employee.† We contract with CH2M-Hill.† If either one of these companies withdrew we would not have any engineering skills.†
††††††††††† Mr. Fennell stated we have skills to a certain level; we have certified operators.†
††††††††††† Mr. Eissler stated they would not be able to oversee a $17 million improvement plan.† These are the gentlemen who are doing that.
††††††††††† Mr. Fennell asked do we need to have an engineer on staff?† Maybe we canít keep a single engineer busy and we have to look at having arrangements with North Springs Improvement District.† There is an issue of scale.† In summary, we are looking for a get together in March, but at the next meeting we are looking for specific answers that will feed that meeting.† The functions right now that Severn Trent does, the cost and the benefits; and any proposals such as billing, accounting, which I am particularly interested in; and anything relating to being a good employer to our employees, and being a good citizen.† We can tie this into the session in March where we can put together more concepts.† Our employees are important to us and we have long term commitments to that.† If there is a cultural change coming we need to smooth that out.†
††††††††††† Mr. Goscicki stated we have not proposed any changes to staffing or operations.†
††††††††††† Mr. Fennell stated I have seen lots of changes roll through big companies and sometime people get hurt badly through process changes, on ways of doing things.† At the meeting in March I want to have the key people from the plant.† We need input from them as to what we are doing.†
††††††††††† Mr. Hanks asked whom do you see as key people?
††††††††††† Mr. Fennell responded accounting, billing, management, water operations, wastewater operations, engineering.
††††††††††† Mr. Hanks asked will you be able to get us this information on these different functions?
††††††††††† Mr. Goscicki responded most of those are Severn Trent staff.
††††††††††† Mr. Hanks stated we will know what that person does and his area of experience.†
††††††††††† Mr. Eissler asked are you accounting?
††††††††††† Mr. Daly responded utility billing.† Ms. Susan Walker is your accountant.† She has been around for 20 years.† Mr. Jan Zilmer is in human resources and has been around for 16 years.†
††††††††††† Mr. Fennell stated I think it is important to have a balance between Severn Trent personnel and those from CSID.† It must be complicated to have an outside firm overseeing employees of the District.† It is easier when it is a service firm.†
††††††††††† Mr. Goscicki stated we have every mix you can think of.† We have districts where we manage employees and have oversight and direction.† We have other districts where we have our own operation staff on site.† We also have contract services where a third party is doing operation and we manage those contracts.† This is one of the more challenging where we are managing your employees.†
††††††††††† Mr. Fennell stated the issue is who works for whom and do all goals line up.†
††††††††††† Mr. Eissler asked how much time do you spend on CSID?
††††††††††† Mr. Daly responded 40%.
††††††††††† Mr. Eissler asked and you?
††††††††††† Mr. Moore responded it fluctuates between CSID and NSID.† When NSID was going it was 60%/40%, now it is 80%/20%.†
††††††††††† Mr. Eissler asked how much do you spend on CSID?
††††††††††† Mr. Hans respond 10%.
††††††††††† Mr. Eissler stated we have Severn Trent employees that are here, but how much time do they really spend on CSID work.†
††††††††††† Mr. Hanks stated that will go a long way in helping us to establish how to proceed.† We may like to have Mr. Hansí position in house, but it may not be practical.†
††††††††††† Mr. Eissler stated those are the things we need to know.†
††††††††††† As a note the February meeting is the fourth Monday of the month because Presidentís Day is the third Monday of the month.†
††††††††††† Mr. Fennell stated with Mr. Hansí departure we are not approving any long term change.† As an interim change, we can go along with that.†
††††††††††† Mr. Eissler stated we appreciate Mr. Hansí efforts.† You have done a fine job and we are sorry you are leaving.
††††††††††† Mr. Hans stated I will provide whatever support I can to help the transition go smoothly, and if extra time is needed Severn Trent and I can work something out contractually.†
††††††††††† Mr. Daly stated to put the Boardís mind at easy, there is 50 years experience between human resources, myself, accounting and Ms. Hayworth.† It goes through us before it gets anywhere and has for several years.
††††††††††† Mr. Fennell stated we also welcome any alternates too that the employees may have or any suggestions that we can do.† It is appropriate for us to look at the entire organization and get input from everyone.
THIRD ORDER OF BUSINESS†††††††††††††††††††††† Staff Reports (Continued)
††††††††††† 2.†††††††† Update on Construction Analysis and Capital Improvement Plan for Next Five Years
††††††††††† Mr. Moore stated based on your direction, Severn Trent has provided a detailed report on the water plant and an extensive operations report on the sewer plant.† The summary on the sewer plant is on page six of the report.† We have adequate capacity.† We have a monitoring system, but is does not have a good alarm system.† They are recommending we implement that, and it is already in the works.† We put softness in the water of 75 to 80.† The standard in Broward County is 80.† If we take it up to 100 we can save money in the lime softening process.† The current staffing level is adequate and the possibility of reducing staff by one.† At some water plants approval has been given to remove the operator from the 11 pm to 7 am shift.†
††††††††††† Mr. Fennell asked are some of our operators cross-trained?
††††††††††† Mr. Moore responded some are dual licensed.† Our permit on the wastewater side says we need to be manned 24/7 because we have a plant over 5 MPG.†
††††††††††† The report states that additional clean-up should be preformed after the removal of lime sludge; and the ground storage tanks were pressure washed two weeks ago.†
††††††††††† Mr. Eissler asked how much more expensive is the sodium hypochlorite?
††††††††††† Mr. Moore responded there has been a 25% increase in cost, and with the new system we have more injections points so we are using more.†
††††††††††† Mr. Eissler asked how is the system performing?
††††††††††† Mr. Moore responded we were having some problems, and the alternative system was installed and it is working fine.†
††††††††††† Mr. Eissler asked do we still have chlorine canisters on site?
††††††††††† Mr. Moore responded yes; if the test we are doing now is satisfactory, we will hope to have the canisters removed in six months.
††††††††††† On the preliminary cost reduction review, they were impressed with the budget we put together for this District.† Mr. Hans, staff and myself have spent a lot of time getting the budget in a detailed form so we can keep track of the expenses.† They talked about security and that we may have too much under the circumstances.† Iíll discuss this in more detail later.† This summary basically reiterates what we have known for the last four or five years.† We need more digestion and they want us to look at potential savings in our sludge hauling.† We are going to look into the comments for cost savings and discuss that a little more.
††††††††††† Mr. Fennell asked are there any dollar amounts forecasted for savings?
††††††††††† Mr. Moore responded if we decreased the softening process we may see reduced cost savings of $80,000 per year.†
††††††††††† Mr. Eissler stated I am not in favor of that.
††††††††††† Mr. Moore stated every plant is customer based.† Coral Springs is 80, we run between 75 and 80, and NSID runs 76.† This is just for discussion.† Also when we brought on the surge tank and plant E there was a tremendous jump in electricity.† We need to put on four more sets of blowers for the digesters and there will be approximately a 20% increase in electricity.†
††††††††††† Mr. Fennell asked what is the $88,000 in savings?
††††††††††† Mr. Moore responded if you decrease the amount of lime.†
††††††††††† Mr. Eissler stated we donít want to decrease the quality of the water.† We want to improve it.
††††††††††† Mr. Fennell stated we donít have the budgets separated between water and sewer.
††††††††††† Mr. Moore stated this year we are keeping the costs separated so by next yearís budget we can have a water plant and sewer plant budget separate.† In the future as we talk about cost increase, we may have an increase in wastewater treatment and a minimal increase on the water side; and adjust our rates accordingly.†
††††††††††† Mr. Fennell stated that is important.† We need to know what is attributed to labor, electricity, replacement, etc.†
††††††††††† Mr. Eissler asked is reducing the lime even practical?
††††††††††† Mr. Goscicki responded increasing
the hardness from 70 to 80 is not decreasing the water quality--100 is not co
††††††††††† Mr. Moore stated we also need to co
††††††††††† Mr. Eissler stated if we cut the lime, we lower the pH level of the water which are negatives.†
††††††††††† Mr. Goscicki stated the pH in your finished water will be the same because we adjust it before it goes out of the plant.†
††††††††††† Mr. Eissler asked what will you use to lower it?
††††††††††† Mr. McKune responded the addition of CO2.†
††††††††††† Mr. Eissler stated the water coming out of the wells is about 7 or 7.5.† When you decrease the lime, you will mess with the quality of water in more ways than you think.† I would like to see the color improve.†
††††††††††† Mr. Fennell stated on the wastewater plant operations side, there is something we can be doing to improve that for a cost savings as much as $70,000.
††††††††††† Mr. Moore stated at the last meeting you requested a written odor control procedure.† We have odor potential from every single unit we have depending on time of day and temperature of the land.† The primary source of odors is from our digestor thickeners.† We are going to have the operators report odors three times a day.† We have odor controls on most facilities along the parameters.† We had one complaint since the last meeting on the Monday after Christmas.† The agency called on Monday and again it was a four day weekend.† If we have a four day weekend, we will be working the presses on the fourth day.† We want to keep the holding tank levels down.
††††††††††† Mr. Fennell stated we should be under our own control and within minutes knowing of this occurrence rather than getting a call from downtown to tell us.
††††††††††† Mr. Moore stated we no longer are going to let the holding tanks build up for more than two days.† Over the last five years, we have had minimum complaints.† We have had five to six complaints a year.† We are upgrading the equipment and adding the necessary blowers so the complaints with decrease; but circumstances will arise, such as a pipe breaking, where we will get an occasional complaint.†
††††††††††† Mr. Eissler asked are some plants covered?
††††††††††† Mr. Goscicki responded yes; the
construction costs increase significantly, as well as operating costs because
you have to treat all the air i
††††††††††† Mr. Moore stated there are several different types and it is not a 100% solution.†
††††††††††† Mr. Fennell stated letís get our response time down.† We canít have the customer in the loop in our response system.
††††††††††† Mr. Moore stated you know how much you are paying for security.† We have two recommendations.† We currently have a 6í barbed wire fence on the east and north side only; a 4í fence with bushes with 24 hour security.† There has been talk to open the site back up to the public, and we would have to place additional fencing to limit access to only the administration building.†
††††††††††† We can upgrade our entrance card to a swipe card to open the gates, with a camera to our receptionist area for a fee of $5,000.† To upgrade the fence and put a fence along the canal side is a cost of $75,000.†
††††††††††† Mr. Fennell asked is there a way for our own personnel to do security?
††††††††††† Mr. Moore responded we have several of our buildings monitored by a security alarm system and instead of dialing the police it dials an employee who lives around the corner.† The monitor device I am thinking about is tying into both building, along with some other buildings, and some alarms and our people can respond.†
††††††††††† Mr. Fennell asked do we need security during the day?
††††††††††† Mr. Eissler responded probably not.†
††††††††††† Mr. Moore asked do you want armed or unarmed?
††††††††††† Mr. Hanks responded I donít think we need armed.
††††††††††† Mr. Moore stated I would like to see us save the money and put it in the reserves to do the things we need to do to satisfy our customers.
††††††††††† Mr. Fennell stated I would only put the guards at night and have them be part of our maintenance people.†
††††††††††† Mr. Moore stated if you higher two people and put them on 10-hour shifts you can cover the plant 16 hours a day/7 days a week.†
††††††††††† Mr. Hans asked canít our plant operators walk around?
††††††††††† Mr. Moore responded our water and sewer plant operators walk around at least three times a night.† We are looking into putting in the wands where they have to check in to make sure the operators have gone to those sites each week [some time of tracking mechanism].
††††††††††† Mr. Fennel asked do those operators have radios?
††††††††††† Mr. Moore responded yes.
††††††††††† Mr. Hans stated the biggest concern is the kids getting in causing trouble.
††††††††††† Mr. Fennel asked what are the manpower requirements during a severe weather storm?
††††††††††† Mr. Moore responded we have a hurricane procedure.
††††††††††† Mr. Fennell stated we are paying $450,000 for security.† We can hire two people and do other things.
††††††††††† Mr. Moore stated we lock down the three operators who volunteer during a hurricane.† We can look into hiring individuals and cross training them.† If we put in the 4,000 ft fence it is $75,000.† We can do it in stages, and get the primary area secured; then you can make your decisions.†
††††††††††† Mr. Fennel stated we are looking to step back on the security.† If we can go from armed guards to tighter barriers with limited access.† We do need nighttime security.†
††††††††††† Mr. Eissler stated we should open up the building to the public.†
††††††††††† Mr. Fennel stated we can put in a turnaround for people to drop off their water payments.†
††††††††††† Mr. Moore stated Iíll put something together and bring it back at the next meeting.† We can also use a card access system for entry.
††††††††††† Mr. Fennel stated the turnaround, fencing, the card access system and nighttime security will work.
††††††††††† Mr. McKune gave a presentation on the projects that have completed to date; suggested that the investment banker, auditor, the engineering firm, Mr. Moore and the manager discuss the money situation and how the replacement and refurbishment of the system should be done; and gave an overview of the items that should be done such as the water plant expansion.
††††††††††† Mr. Fennel stated Severn Trent said our capacity is fine.
††††††††††† Mr. McKune stated it is, until you lose the plant.†
††††††††††† Mr. Moore stated plant three is having problems, and we are waiting for plant two to be completed.† If it breaks we lose 60% of our capacity.
††††††††††† Mr. McKune stated Severn Trentís reports are correct.† We have constructed and are rated to treat the maximum allowable.†
††††††††††† Mr. Fennel stated capacity should always include reliability.
††††††††††† Mr. McKune stated the water plant bare minimum number is $1.86 million.† The other two items that must be done is the refurbishment of the existing water plant and upgrade of the 30-year-old electrical system.† The water plant minimum program is $2.710 million.
††††††††††† Mr. Eissler stated in a two to three year span.
††††††††††† Mr. McKune stated two years ago we were authorized to do the design.† We stopped because we need to go through the exercise to get everything lined up.† That design still needs to be done.†
††††††††††† Mr. Hanks asked does it make sense to do a design build for these water treatment plants?
††††††††††† Mr. McKune responded certainly, we do it all the time.† It isnít cheaper.† On the wastewater side, we have components that must be done.† We talked about the odor issues.† When the sludge is thickened, odor is released.† We need to improve the solids processing, specifically to address what was mentioned in Severn Trentís report, by aerating the sludge and burning the volatile solids.† These new facilities will require air, blowers, and electricity.† These issues need to be addressed and it is a compliance issue.† We also need to rebuild the two plants which are falling apart.
††††††††††† Mr. Hanks asked do we need to redo both the smaller plants?
††††††††††† Mr. McKune responded yes.†
††††††††††† Mr. Eissler stated you are talking about $8.8 million.† That is not out of the ballpark and we have funds now where most of the issues for the next year or two can be accomplished before we get the investment bankers involved.† The issues you feel must be done, should be done, and can be done financially.† We need to do them.
††††††††††† Mr. Hanks stated the reason he wants to bring in the investment bankers is to determine how our savings affect our bond rating and interest rating for the remaining improvements.†
††††††††††† Mr. Eissler stated the consultants should be brought in because we are not qualified to do this.†
††††††††††† Mr. McKune stated between the investment banker and the auditor we should be able to get all the information we need to get this process started.† I can put a proposal together to do the design to get this process started.
††††††††††† Mr. Hanks stated also a proposal to encompass the specifications so we can perhaps put it out for a design build.†
††††††††††† Mr. McKune stated CH2M-Hill is a design built firm, and internally we have been looking into doing design builds, but we donít want to loose the District as a client.† Can we be authorized to do design builds without going through the CCNA?
††††††††††† Mr. Lyles responded you are the District engineer and you can do design as authorized by the Board, but to build it you have to put the whole package out for bidding.†
††††††††††† Mr. Hanks asked what does that do to our timeline to get these up and running?
††††††††††† Mr. McKune responded to get someone other than us, the firm has to start from scratch and may give you a lower price to remove us from the bid.
††††††††††† Mr. Hanks stated I would like to explore the possibility.† This may not be the right project to do it, but we see a number of change orders.
††††††††††† Mr. McKune stated the change orders are to the changes in the scope of work.†
††††††††††† Mr. Fennel stated with this plan we may not need to go out for financing.† We have $8 million.
††††††††††† Mr. Hans stated $1 million went into the repair and replacement and $1 million is being spent so it is down to roughly $6 million.
††††††††††† Mr. McKune stated between Mr. Keller, Mr. Moore and me we can invite the investment banker down for the next meeting.
††††††††††† Mr. Fennel stated at the next meeting we will have more information on the proposals, recommendations/proposals on how to re-align our organization; have an understand of where our costs are, and what we are paying for.
C. Superintendent Ė Discussion of Plant Operation Expenses
††††††††††† Mr. Hans presented the expense report over the last 10 years.
††††††††††† Mr. Hanks asked is this for the entire CSID operating budget or just for water and sewer?
††††††††††† Mr. Hans responded water and sewer and its administration.† It does not include the canal maintenance and general fund.
††††††††††† Also the newsletter was mailed out on Friday.
††††††††††† D.††††††† Complaints
††††††††††† There not being any, the next item followed.
FOURTH ORDER OF BUSINESS††††††††††††††††††† Supervisorís Requests and Audience Comments
††††††††††† There not being any, the next item followed.
SIXTH ORDER OF BUSINESS††††††††††††††††††††††† Adjournment
††††††††††† There being no further business,
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††† ††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††
Glen Hanks††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Robert Fennell