A meeting of the Board of Supervisors of the Coral Springs Improvement District was held on Monday, June 23, 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


            Also present were:


            Kenneth Cassel                                                District Manager

            Dennis Lyles                                                     District Counsel

            Jane Early                                                         District Engineer

            Brenda Schurz                                                  Severn Trent Services

            Sean Skehan                                                    CH2M Hill

            Dan Daly                                                          CSID

            Jim Aversa                                                       CSID

            Sean Frankenhauser                                         CSID

            Kay Woodward                                               CSID Accountant

            Jan Zilmer                                                         CSID Human Resources

            Scott Hoffman                                                  Resident

            Kevin McMahon                                              Resident          


FIRST ORDER OF BUSINESS                               Roll Call

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


SECOND ORDER OF BUSINESS                          Approval of the Minutes of the May 19, 2008 Meeting

            Mr. Fennell stated each Board member received a copy of the minutes of the May 19, 2008 meeting and requested any corrections, additions or deletions.

            Mr. Hanks stated on page five, the third paragraph down, it states, “Last year the Water Management District asked for NSID to be able to store more water before it was pumped out to the canal.”  Where you referring to the South Florida Water Management District?

            Mr. Skehan responded yes.

            Mr. Fennell stated on page 12, line 5, “government rational” should be “balance rational”.

            Mr. Hanks stated I believe I voted no on the motion on page 17.

            Mr. Daly stated the second paragraph on page 14 states, “Mr. Daly stated I think we have.”  It should say Mr. Zilmer.


On MOTION by Ms. Zich seconded by Mr. Fennell with all in favor the minutes of the May 19, 2008 meeting were approved as amended.


THIRD ORDER OF BUSINESS                             Supervisors’ Requests and Audience Comments

            Mr. Hoffman stated I am here to ask if I am allowed to have a fence between my house and the house next door.  My name is Mr. Scott Hoffman and I live at 1971 NW 108 Lane.  I would like to ask for your consideration on this.

            Mr. Fennell asked do we have information on this?

            Mr. Hoffman presented the Board with a copy of a survey to his property.

            Mr. Hanks asked is there a catch basin on this side of the street?

            Mr. Hoffman responded there is.

            Mr. Fennell asked is there an easement or land?

            Ms. Early responded an easement. 

            Mr. Hoffman stated I am more than willing to sign something stating I will take it down anytime you need me to.

            Mr. Hanks asked do we know what facilities we have in there or is it just plat on paper?

            Ms. Schurz responded I wish Mr. Fredericks was here because he went out and looked at it.

            Mr. Hoffman stated underground it runs from the street to the canal.  The water meter is on it, the cable box is on it and the street light is on it.

            Mr. Fennell stated there are a number of different utility easements in there.  Do you want to move the fence over?

            Mr. Hoffman responded no.  My sub-contractor applied for a permit.  He waited and then put the fence in.  Four months later he received notice.

            Mr. Fennell stated from the city.

            Mr. Hoffman stated no.  The city forwarded it to possibly you guys or another department.  It was a form letter saying it was not allowed.

            Mr. Fennell stated so the fence is already there.

            Mr. Hoffman stated yes.

            Mr. McMahon stated we applied for it on September 28, 2006.  It was approved by the city on November 20, 2006.  The first letter we received from the District was dated January 12, 2007.  We were waiting for approval and the contractor felt confident it would be approved.  On September 14, 2007 he received another form letter.

            Mr. Hoffman stated the screen enclosure blew away.  Because of the pool we have to put a fence up. 

            Ms. Early stated it says, “all easements are hereby dedicated for professional use of the public for purposes as indicated.”  He misread what is highlighted.  It is not CSID.  It says public so it is either the city or the HOA. 

            Mr. Hoffman stated there is no HOA.

            Ms. Early stated then it belongs to the city.  This may be why you got the letter.

            Mr. Hoffman stated it came from CSID.

            Mr. Fennell stated we will direct engineering to re-review this.  Thank you very much for coming.


FIFTH ORDER OF BUSINESS                               Consideration of Engagement Letter with Keefe, McCullough & Co., LLP to Perform the Financial Audit for Fiscal Year Ending September 30, 2008

            Mr. Hanks asked do we have any concerns with their proposal?

            Mr. Cassel responded no.  They have done well.  There are minor adjustments they are asking for, which are well within what we are seeing from other auditing firms on other districts.  There is only a $500 difference.

            Mr. Hanks asked what kind of motion should we make?

            Mr. Lyles responded they were already hired as your auditor for a period of up to three years through an audit selection process.  This is just a motion to approve their engagement letter for the audit for the fiscal year ending September 30, 2008.


On MOTION by Mr. Hanks seconded by Mr. Fennell with all favor the engagement letter with Keefe, McCullough & Co., LLP to Perform the Financial Audit for fiscal year ending September 30, 2008 was approved.



SEVENTH ORDER OF BUSINESS                        Award of Bid for Triploid Grass Carp

            Ms. Zich asked how often do we do this?

            Mr. Daly responded when needed.

            Ms. Zich stated I do not remember having this come up. 

            Ms. Woodward stated it has been budgeted every year in anticipation of it being needed. 

            Ms. Zich asked what does this do for us?

            Mr. Frankenhauser responded it helps us with the aquatics which grow at the bottom and helps us use less chemicals in our treatment.

            Mr. Fennell stated but they are sterile.  They do not reproduce.

            Mr. Frankenhauser stated exactly.

            Mr. Hanks asked how big are they when we get them?

            Mr. Frankenhauser responded when we get them they are about ten inches.

            Mr. Hanks asked is there any difference in the fish size between the different bidders?

            Ms. Zich responded I was wondering why there is such a big discrepancy.  We are talking about $17,000 between the lowest and highest bidders.

            Mr. Frankenhauser stated we have used JM Malone in the past.  We have been very happy with them.

            Mr. Cassel stated my understanding is there is a competition between the suppliers.  The individual bringing the fish in was undercut on another deal so he has sharpened his pencil considerably to get business back.

            Mr. Fennell stated I see three bids are close; between $10,950 and $11,370.  Then there are five or six which are between $17,000 and $21,000.  There is one guy who is really out at $28,000.  Did we use JM Malone before?

            Mr. Cassel responded yes. 


On MOTION by Mr. Hanks seconded by Ms. Zich with all in favor the contract for Triploid Grass Carp was awarded to JM Malone & Son in the amount of $10,950.


SIXTH ORDER OF BUSINESS                              Award of Bid for Landscape and Irrigation at WWTP – Perimeter Buffer Berm Grading

            Ms. Early stated we had three bidders.  The lowest responsive bid was submitted by National Home Building and Remodeling Corporation in the amount of $53,125.  We also had alternate bid items for the berm construction.  We received a price from Intrastate Construction to do the berm, which was relatively higher than National Home Building and Remodeling Corporation.  We recommend they do this work as well.  In anticipation of this getting approved, because I know this is a hot item, I prepared the contract.  The low bidder signed it and submitted his insurance information.  I brought the contract here because he is ready to get started.  He has everything scheduled and he can probably have this done in two to three weeks.

            Mr. Fennell stated I am looking at this and we have irrigation down from $54,000 to $24,000.  Is this a permanent or temporary thing?

            Ms. Early responded it is permanent.

            Ms. Zich asked are we going to water these trees forever?

            Mr. Daly responded no.  Probably three months.  Giving the time of year we are doing this and all of the rainfall we are getting, it may not be necessary.

            Ms. Zich stated but we still have to put this in.

            Mr. Cassel stated it is required by the city.  Internally we were looking at some type of a temporary system we could put out there and take out, but the city stopped us on those options.  We have to put it in even though we may use it for three months and then again we may not because of the rain. 

            Ms. Early stated it is 900 feet of berm and then we are adding additional fill in trees. 


On MOTION by Mr. Hanks seconded by Ms. Zich with all in favor the contract for the landscape and irrigation at WWTP was awarded to National Home Building and Remodeling Corporation with a total base bid of $53,125.


            Mr. Cassel stated you have the berm work as well.

            Ms. Zich asked what does “Red Bay” mean?

            Ms. Early responded it is a different type of tree. 

            Mr. Hanks stated so we are looking at $85,000 to $86,000 as opposed to $103,000 for the next lowest bid.


On MOTION by Mr. Hanks seconded by Ms. Zich with all in favor the berm construction was awarded to National Home Building and Remodeling Corporation at an amount of $32,333.


FOURTH ORDER OF BUSINESS                          Questions or Comments on the General Fund FY 2009 Proposed Budget

            Mr. Fennell asked are there any significant changes from the last time?

            Mr. Cassel responded you asked staff to double check some items and make sure we have everything covered.  Ms. Woodward came up with the new proposed bottom line on the assessments, which is a little bit lower than what was approved at the last meeting.  I think we can go forward from here.

            Mr. Fennell stated we are trying to build up reserves and there are some capital improvements in there.

            Mr. Cassel stated that is correct. 

            Mr. Fennell stated it is $350,000.

            Mr. Daly stated we had approximately $800,000 in the original pump restoration program last year.  It was cut down considerably.  We are looking at some things in-house.  There are some things we must have engineering work for.

            Mr. Fennell stated let us step back for a second.  What is the status of the pumps?  What shape are they in?

            Mr. Daly asked of the pump stations?

            Mr. Fennell responded yes.

            Ms. Early stated they operate.  We just need hurricane doors and new roofs.

            Mr. Daly stated as far as the machinery, they are in proper working condition. 

            Mr. Fennell stated there was something about the trash racks.

            Ms. Early stated yes.  The trash racks need some work.

            Mr. Daly stated it was basically a design flaw, which is what Mr. Fredericks eluded to at the last meeting.  There was once a tire which came up underneath it and jammed everything up.  It got into the pump or the motor assembly.  It caused major damage and it was because it was able to go underneath.  The fact is it was probably fine 30 years ago when it was put out there, but there may have been some erosion.  The engineering firm looked at possibly aluminum trash racks, which will fit differently. 

            Mr. Fennell asked are we ready for hurricane season?

            Mr. Daly responded we are ready.

            Mr. Hanks asked do we have the fuel we budgeted?

            Mr. Daly responded the propane for the pumps.  We have yet to turn them on for use this year.  We have turned them on to test, but we have not had any rain.  Even when we do have rain, the South Florida Water Management District has to allow us to turn it on.  We have not used them, but it does go through testing on a regular basis.

            Mr. Frankenhauser stated excuse me.  If I may clarify, we did run the pumps over the weekend and everything ran well. 

            Mr. Fennell stated we were going to look at a study for long term improvements.

            Mr. Hanks asked did that end up being more of a bond type of issue?

            Mr. Fennell responded it is, but financing the study is the issue.

            Ms. Early stated we did the feasibility study of adding additional covers.

            Mr. Fennell stated okay.  So the cost is pretty much done.

            Mr. Hanks stated some decisions need to be reached. 

            Ms. Early stated we will need to do as built surveys of pumps. 

            Mr. Fennell stated we were going to have some kind of meeting to try to iron this out.

            Mr. Cassel stated yes.  I believe it is scheduled for August after we get some information and input from the South Florida Water Management District.  It was tentatively scheduled for late August.  By then we should have information back on our water use as well as some other issues we are waiting for feedback on.  It is tentatively on the schedule for late August. 

            Mr. Hanks stated some time in July, Fort Lauderdale is having a meeting with the South Florida Water Management District on the C51 storage basin or something along those lines.  It is a similar approach we are taking; looking at storing extra water in a canal system. 

            Ms. Early stated they still have the memorandum of understanding I brought six months ago for NSID to be able to pump south.  We did the memorandum.  It has been with South Florida Water Management District for so long.  I do not know what the hold up is.  All it says is we will not pump until they call Mr. Fankenhauser and Mr. Fredericks to coordinate so we are not all pumping at the same time. 

            Mr. Fennell asked what do we expect to have in our reserves by the end of fiscal year 2009?

            Ms. Woodward responded we will have a minimum of $1,175,000 at the end of fiscal year 2009.  We currently have $875,000.  What is included in the budget you are looking at now is another $300,000 to be added to that.

            Mr. Hanks stated we will be able to start moving forward.  Keep in mind a lot of your contracting prices are related to fuel.  What was a $4 Million cleanout last time is going to be more for the same amount of work. 

            Mr. Fennell asked is pre-contracting the prices a smart thing to do?

            Mr. Cassel responded all of your contractors will put in a fuel adjustment.  Just like paving contractors; even though they bid a job today, there is now a clause stating the actual cost of asphalt will be determined based upon the preceding 90 days.  There is a great deal of language because they cannot afford to be locked into that price.  The only thing you might get is the labor cost locked in, but everything else is going to flex.

            Mr. Fennel stated as I remember the last time the real problem was getting an estimate on the work to be done. 

            Mr. Hanks stated I think $1 Million to $1.25 Million is a good amount to have available to us so we get things moving forward.  I do not want to get caught in anything below that.  Let us take a look at it and if we need to, we increase our assessments.  I think we are in good shape.  Ask me this question in November. 

            Ms. Zich stated I think we are running out.  It sounds like a good start.  In the last 30 years we have been in Coral Springs we only had Hurricane Wilma.  Let us hope we are not going to have another one too soon. 

            Ms. Woodward stated I just wanted to add a couple of thoughts on the designated funds where we are talking about the $875,000 we have now and we anticipate it going up close to $1.2 Million.  We are not trying to fund an entire hurricane clean up.  The concern is the day after a hurricane is over when everyone is assessing damages.  In order to secure a contractor out here, we may have to front $500,000 in order to get our work started.  Then you are in the federal process of getting reimbursed as you go.  The main thing is you need enough to get a good start on the clean up.

            That is number one.  Number two: This fund we are talking about is not solely for a hurricane.  It is in fact for different types of renewal and replacement type items, which may not occur annually.  You are not considering it in your normal budget, but what happens when you have to replace a pump which last 20 years at the pump station?  You need to be in a position to fund this as you go so when this is needed, you can write the check and be covered. 

            Mr. Hanks asked have we done this kind of thought process?  Have we gone through and capitalized our costs as well as what we need to take care of those funds?  Do we really want to go out for a bond on a $500,000 item?  The answer to this is no, but you have two of those items and there goes your reserves.

            Mr. Cassel responded this is one of the reasons why Ms. Woodward, Mr. Daly and I have sat together.  We also got Mr. Fredericks, Mr. Hyche and the rest of the supervisors involved in putting together a total asset management system so we can look at these.  What is the lifespan?  What is the cost?  We put all of this into the matrix so we have the fund as something which needs to be done.  We keep funding the account, but we are also doing things in between over the process of the years.  In the event there is a major catastrophe, whatever funds which have not been expended that year are there for the emergency.  You then pick back up on the fund after you replenish it and continue with your work.  We are working on a matrix for this. 

            Mr. Fennell stated we replaced all of the engines over the last two years.  We replaced the pumps too.  We are probably as good as we have been for a long time.  The drainage infrastructure will be the next issue we have to address. 

            Mr. Hanks stated this will come into play as to how we structure the bonds.  We will be happy to establish what our program is; how much it is going to cost and back in to what we need to do each year to cover it.  Anything we do right now we will just be taking a swag at it.

            Mr. Fennell asked are there any other questions on any items?

            Mr. Hanks asked Ms. Woodward, do you recommend having the assessment be $184.80 as opposed to $187.70?

            Ms. Woodward responded I am not sure where you are getting $184.80.

            Mr. Cassel stated it is at the bottom.

            Mr. Daly stated on the right hand side.

            Ms. Woodward stated I think it is actually $186.79.  I am not sure why the $184.80 is there.  According to my notes I came up with a differential of less than $1 from last year. 

            Mr. Fennell asked did we approve this last time?

            Mr. Cassel responded yes.  At the last meeting the Board did put forth that the public notices would be $186.79.  You have a public hearing coming up in late July.  You are not taking any action on this.

            Ms. Zich stated this is for us to refine and vote on any changes. 

            Mr. Hanks stated I think we should vote to keep it at $186.79.

            Mr. Fennell stated yes.  Leave it unchanged. 

            Mr. Cassel stated you asked staff for a few clarifications and there were issues you wanted us to readjust.  This is why we are discussing this today.

            Mr. Lyles stated you already approved the proposed budget and authorized staff to advertise the public hearing in July.  This will happen at the regular July meeting. 

            Ms. Zich stated we had the same thing last time where there were a couple of adjustments.

            Mr. Daly stated I think we will tie down insurance a little closer next month.

            Mr. Fennell asked what about the work authorizations?

            Mr. Cassel responded that will be addressed under the manager’s report.

            Mr. Fennel stated I saw something which came in regarding unclaimed money.

            Ms. Schurz stated it is just a memorandum.

            Mr. Cassel stated it is a memorandum keeping the Board informed of some of the things going on. 


EIGHTH ORDER OF BUSINESS                           Staff Reports

            A.        Manager

                        i.          Outfall Repair Update

            Mr. Cassel stated you will notice the memorandum I sent you.  I am flashing on the wall photographs of the crew doing repairs.  They did an excellent job.  They did it in-house.  It turned out real nice.

            Mr. Fennell asked where is this at?

            Mr. Daly responded the woods behind Big Anthony and Guidos.  I believe Mr. Fredericks said it cost us approximately $300 or $400 in materials. 

            Mr. Fennell asked is this the drain from the street to the canal?

            Mr. Cassel responded yes.

            Mr. Fennell asked who actually owns it.

            Mr. Daly responded it is something we damaged.  Whether we own it or not, we damaged it when we were cleaning up after the hurricane.  It just now surfaced that we damaged it.

            Mr. Fennell stated I thought it was up to the city to clean and repair those things.

            Mr. Daly stated it would be, but it got damaged during the clean up.  We already signed off on the contractor who was doing the clean up because it was not noticed at the time. 

            Mr. Fennell stated but normally it is a city responsibility. 

            Mr. Cassel stated it was our contractor who caused the damage. 

            Mr. Fennell asked do you want to address the work authorization next?

            Mr. Cassel responded we can do that.

            Mr. Fennell stated give us some history on this.

            Mr. Cassel stated originally in 2003 a work authorization was issued where the application for the permit was sent off to the South Florida Water Management District.  They have sat on if for four years with some minor conversations back and forth.  On June 12, 2008 they finally sent out there comments and gave us 30 days to respond.  On June 17, 2008 they sent us the draft permit.  Evidently someone built a fire under them and told them to get rid of their backlog.  The original application work authorization was closed out in 2003.  What little bit of work which has been done on this between 2003 and now has been done under general engineering expenditures.  This will close out this item, get the permit finalized and back in operation.  We have been operating under the old expired permit. 

            Mr. Fennell stated this is for the deep well or main well.  Are we current?

            Mr. Cassel responded this will give you your real permit. 

            Mr. Fennell stated okay.  This is the draft permit. 

            Mr. Skehan stated the real permit is probably coming within the next two to three months.

            Mr. Fennell asked do you know there is a side well next to it?  We are going to do a new one of those.

            Mr. Skehan responded that is correct.

            Mr. Fennell asked how is that going?

            Mr. Skehan responded it is one of the items under the engineer’s report.

            Mr. Hanks stated one thing in here I am sure you have already taken care of is the response to the RFI.  It is already June 23, 2008.

            Mr. Skehan stated we are ready to go.  We are going to have the response put together by July 12, 2008.  We received this request about a week ago and we put the work authorization together.  We are working closely with Mr. Cassel.  This is why it is here in front of you today.  We want to make sure we meet the deadline. 


On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor Work Authorization No. 44 for injection wells IW-1 and IW-2 for operation permit renewal was approved.



            ii.         Director of Operations Responsibilities

            Mr. Cassel stated the Board directed me to meet with Mr. Daly and come up with the parameters under the new scope of work responsibilities for the Director of Operations position.  This is what we came up with, which fits within the scope.  Mr. Daly and I have discussed this and worked through it.  I think we are both comfortable with it and I think it works well.

            Mr. Fennell asked Mr. Daly, what do you think?

            Mr. Daly responded it is reasonable enough to where there is a lot of latitude and room for Mr. Cassel and I to be comfortable with our positions on things and still come to consensus to bring before the Board in harmony.  It is also specific enough to hold each of us accountable for things. 

            Mr. Fennell asked is there a chain of command in this?

            Mr. Cassel responded yes there is.  A number of these things Mr. Daly brings to me as the District manager.  A number of the things he does on a day to day operations.  The things having to deal with policy and long term planning we work on together and there is a reporting area.  Other than that, there is a lot of freedom for him to make sure the day to day operations are running.  This fits within the scope of services we set up. 

            Mr. Fennell asked what about in an emergency?  What happens then?

            Mr. Daly responded I am the guy because I am usually on hand. 

            Mr. Cassel stated he will call me and let me know what is going on. 

            Mr. Daly stated there are some things which have happened here since Mr. Cassel was appointed he was not involved in.  He sits in at every one of our meetings.  Every Tuesday morning there is a staff meeting and he sits in at each one of them.  He knows what is on the table. 

            Mr. Fennell asked are there any comments?

            Ms. Zich responded I looked through it and it sounds so good.  It sounds like you guys are going to work well together.

            Mr. Cassel stated I think so.

            Ms. Zich stated I cannot imagine we will have too many emergencies.

            Mr. Daly stated you also have a great staff who handles things the way they are supposed to.  Every once and a while things come up with a little bit of a grey issue and we address it quickly.

            Mr. Hanks asked has there been a discussion or thought as to what will happen if one of you becomes incapacitated?

            Mr. Daly responded no.  It has not been discussed and I have not thought about it.  I know in Mr. Cassel’s absence there are other people within his organization who are familiar enough with this location.

            Mr. Cassel stated and conversely you have within your department heads, or supervisors, staff who really step up.  They are stepping up in a way which is really commendable on understanding and taking ownership.  They are really grasping the day to day items and taking control of what they need to do to make sure it gets done, which is making Mr. Daly’s oversight easy as well.  It makes the whole process easier.  It is evolving into a well run operation with staff, all the way down to the guys in the ditch, understanding what they need to do to make it happen.  They are all stepping up.  I am really happy with what is going on and how everything is turning out. 

            Mr. Hanks asked do we need a motion on this?

            Mr. Cassel responded no.

            Mr. Fennel asked do we have to create a Director of Operations position?

            Mr. Cassel responded I think you did already.  You created it and asked us to identify the responsibilities.  We will give this to Mr. Zilmer and he will put it into a formal format of an actual job description.  This is just a summary.  There are some pieces he needs to add to it to make it comply.  Then we will go from there.

            Mr. Fennell stated it sounds good.  Are there any comments on this?

            Mr. Daly responded feel free to bring forth any other comments you might have.

            Mr. Fennell stated I just want to make sure the chain of command is clear and we know what happens in an emergency.  Another comment I want to make is we have a large enough staff here where we need to continually train people in different kinds of positions.  I want to encourage this.  I think human resources is going to redo the policy with regard to education and training.  We should continue to push this.  One thing I want to mention, which may be of interest to some of you, is there is a new type of degree being formed.  It is called a Bachelors of Science and Management of Technology.  It is a degree for people who have AA degrees or AS degrees in technology.  I encourage this.  St. Petersburg College has this program.  I think it is a great program and it is coming to BCC.  They do not have it yet.  It may be a year or two.  I think it is something we need to think about for continuous training for everybody. 

            iii.        Monthly Water & Sewer Charts

            This item is for informational purposes only.


            iv.        Utility Billing Work Orders

            Mr. Daly stated we had a few more calibration tests and a few more customer questions because the bills went up.  Before a bill goes out to someone who usually has a 6,000 unit bill and we put out a bill for 56,000, we actually go out and re-check the meter before we put the bill out.  It requires more time and labor.  The point is if we notice a leak when we are there, we tell them before they even get the bill and they can do something to correct it.  Secondly; if it just happens to be a lot, we have notes in our files so if the customer calls we can tell them we noticed the same thing and went out to check it.  We can tell them it is a correct reading.  The customer understands we are paying attention to their particular house.  It cuts down on letter writing as well. 

            Mr. Fennell asked is water usage down?

            Mr. Daly responded it is up for last month.  Right now we are at $550,000 for eight months in water and sewer revenue, which is good compared to how it used to be.

            Mr. Fennell stated because we have done such a great job we have managed to match our influent and affluent.


v.                  Construction Cost Estimate for 12 Inch Interconnect Located at Royal Palm Boulevard and Coral Springs Drive

vi.                Construction Estimate for Repair of Existing 6 Inch Interconnect Located at Royal Palm Boulevard and NW 89th Avenue

            Mr. Cassel stated I can explain this one because we did it for NSID as well.  These are the interconnects with the City of Coral Springs, which they have been working on for over a year.  One is a new 12 inch interconnect.  CSID’s portion of this will be 50% of the estimated cost.  I received the agreement last week from the City of Coral Springs for both CSID and NSID.  The attorney is reviewing those with some corrections we have to go back to the city with.  Once they go to bid they will come back and we will be finalizing this.  We will be able to bring this back to the Board for final approval once it has been awarded.  This is an update as to the fact we did get it back.  We are looking at half of $332,000 for the new one and half of $47,000 for upgrading and repairing the existing interconnect between CSID and the City of Coral Springs.

            Mr. Hanks stated the intentions of these interconnects is to provide some measure of redundancy.

            Mr. Cassel stated redundancy for the City of Coral Springs and for CSID.  The same issue is for NSID.  Between the three water systems, should somebody’s water system go down in a terrible fashion the others can help.  There is an agreement for them to supply us with water and for us to supply them with water. 

            Mr. Hanks asked do we have a similar agreement with Tamarac and do we have those interconnects in place?

            Mr. Cassel responded I am not aware of those at this point and time.  I do not believe we have any other interconnects.

            Mr. Hanks asked is 12 inches what we will need to provide us with a backup water supply?

            Mr. Cassel responded yes.

            Mr. Fennell stated there is a big pipe across the C-14 right at the edge of our area. 

            Mr. Cassel stated it is probably a force main. 

            Mr. Fennell stated so it will basically cost us $180,000.

            Mr. Hanks asked is this for discussion only at this point?

            Mr. Cassel responded no action is needed at this point.  We need to get the agreements finalized.  This will come back before you once we get the actual bid documents. 

            Mr. Fennell stated there are a couple of things we should look at.  Check to see whether or not we have capacitive loading.  There are lots of ways to save money.  Any place where you have a big inductive motor, it turns out the power factor goes on and you end up paying for more power than you should.  There are ways you can balance out the power factor and reduce your cost.  There are also ways to do this in your home.  It is called power shaft loading or capacitive loading.

            Mr. Cassel stated we will check it out.

            Mr. Fennell stated you do not always do this stuff because when power is cheap you do not care.  Now our electric bill is going to keep going up.

            Mr. Cassel stated I think we are doing some of this with the VFD type pumps.  Instead of coming on line they ramp up in their speed.  They start off slowly, then they ramp up to a speed and then they slow down.  A lot of the variable controls do this, but we will look at the various capacitors as well. 

            Mr. Fennell stated there was a group sitting with me from another water district or county.  They were there for a different reason.  I asked if they were going to solarize their whole water district.  He said no.  Their issue is they have a lot of lift stations all over the county.  There problem is when a hurricane comes.  Obviously there power goes out, but their big issue is they do not have power at each lift station.  Right now we have back up.  The problem is which one to go to.  When the power goes down they have monitoring capabilities at each one of these.  They actually have a telephone line, but it went down.  The other problem is they did not have battery back up.

            Here is the deal.  I do not know how much this will cost us.  I know you guys have been after us for a while to put in radio controls at certain lift stations.  I propose we look at it again with a different philosophy; that we have a battery back up which will give us an indication of what the status is even if the power is down.  This also means the level indicator has to be operating.  What this allows you to do in an emergency situation when we have 40 or 50 lift stations and we are running around trying to figure out which lift station we have to go to in a catastrophe, you automatically have the data sent back to you.  You know which lift stations to go to.  Otherwise, it is a hit or miss for us running around.  These are just a couple of things: one is the power factor and two is the lift stations. 

            Mr. Hanks stated some other techniques need to be applied when we do have run time information on lift stations.  This lift station is pumping three quarters of the time.  That one is turning on three times a day, we will leave it alone.

            Mr. Daly stated we have all of this.  There is a regular log book.  We have some which never turn up because of all the ground water infiltration when it is raining.

            Mr. Hanks stated it is something else to take a look at.  If you have some wearing continuously because of ground water infiltration, they should be targeted for remedial efforts. 

            Mr. Daly stated actually, and Ms. Early I am not sure if you were involved in the discussion or not, I know Mr. McKune was, he said it is actually better to leave it as is because of how hard it is to do these secondary types and things like it.

            Mr. Fennell stated the other issue is we do not have any type of central lift stations. 

            Mr. Daly stated one thing I find interesting is Mr. Hanks brought up a year ago that we live in Florida and why do we not use solar.  When you mentioned solar it caught my interest because I am a proponent of it if it can be done economically.

            Mr. Fennell stated go through and look at everything else you can do to improve efficiency before you go to solar.  Solar will cost you roughly $10 a watt.  A kilowatt is going to cost $10,000.  If you have 100 kilowatts, it is going to cost a lot of money.  To be honest if we could do a windmill, we will be better off.  Windmill power is ten times cheaper than solar power.  I do not know how the city will like it.  There are many things you can do.  There are nice things about solar power; especially for South Florida.  Once the gasoline goes away, you cannot get oil delivered to your house and you burn up everything for your back up engine in your house, you can get a couple of kilowatts come in to recharge batteries.  You can make it through the night.  I think we all remember after three or four days you run out of gas in your homes.  We almost ran out here.  Solar is something we can look at, but first we are better off looking at other ways to become energy efficient before we really have to look at this because frankly, electricity is cheap.  Those days are going to be gone.  FPL has just caught up with the price of oil. 

            Mr. Cassel stated I have one other quick item.  We just brought this for your reading pleasure.  The Board asked if we had any information on the SBA and if there was any type of investigation.  Ms. Rower chased down a report for you to read.  We did not put it in as an agenda item because we just received it today.  It is for your information only.  I read through it this afternoon.  As I read it my thumbnail of it is you had a fund which was out there with nobody really watching it.  It was a stepchild to everything else going on and everyone ignored it.  They did not find fault because they were within the parameters of the investment.  It is one of those things where it was out there and no one was really looking. 

            Ms. Zich stated there is so much money out there.

            Mr. Cassel stated it was competing with the pension fund.  This was like $30 Billion.  It was $136 Billion so they were looking at the $136 Billion versus the $30 Billion.  People were paying attention on the one side and not paying attention on the other side. 

            Ms. Zich stated that is so amazing.  It was a private company that did it.  While we are talking about this, did we find any other place to put the money?

            Mr. Cassel responded Ms. Rower is looking around.

            Ms. Zich stated it has been several months.

            Mr. Cassel stated it has, but with what is out there it is in the best we can find at the present time. 

            Ms. Zich stated I was hoping we could come up with something a little bit better.  I thought putting the money in Wachovia was temporary. 

            Mr. Cassel stated she has been looking into this and the returns on everything out there is pretty much the same as what we are looking at. 

            B.        Attorney

            Mr. Lyles stated I have one quick item as an update or status report.  I was advised by email this afternoon the settlement papers in the Susan Walker matter have been signed by the plaintiff and they are being returned to us.  We have already put the check in a trust account of the plaintiff’s counsel.  This matter should be pending receipt of the actual papers as opposed to the email I did receive.  This should be behind us; however, there is one additional thing which has come to our attention in the way of a complaint/request.  In response to it I have spoken to Mr. Daly.  There was some consternation on the part of the plaintiff with regard to some of the comments made during the last meeting.  I made Mr. Daly aware of it.  I think he has a quick statement to make, which will be a complete and final termination of this entire litigation matter. 

            Mr. Daly stated I will be glad to withdraw my comments during the May 19, 2008 meeting with regard to Ms. Walker. 

            Mr. Lyles stated with that being said, I have nothing further to bring to the attention of the Board. 

            Mr. Hanks asked do we have anything on the canal banks?

            Mr. Lyles responded we are still waiting on some permit information we do not have yet.  The files are voluminous and difficult to track down.  At this point we do not have any permitting type information to begin the process of putting together how it came into our hands, what obligation we may or may not have as a permittee versus a pure government entity and it is still being worked on.  Your manager and I speak about it regularly.  We are not going to let it go until we have something to bring back to you which is definitive. 

            Mr. Hanks stated I do not want to be in a position where we are taking action which will compromise us or set us up in the future. 

            Mr. Cassel stated it is clearly understood by the manager and all of the staff. 


            C.        Engineer – Project Status Report

            Mr. Cassel stated you will notice a chart was included to help all of us keep track of where the projects are.  It makes it a little easier for the Board and the rest of us to make sure we are on track and we are all pursuing the projects well. 

            Mr. Fennell asked can you give us an update on the nanofiltration issue?

            Mr. Skehan responded the next two to three months there will be a lot of activity taking place.  We are getting to bid these projects.  There will be a pre-qualification for contractors.  Given the current environment for construction we want to make sure we get contractors experienced with municipal type of work. 

            Ms. Zich asked how do we do on overrides for those?  Once we get a contractor, is it a firm contract?

            Mr. Skehan responded yes.  There will always be change orders, but we try to minimize the number of change orders by going through different levels and trying to make sure we get as many questions answered in advanced.  In the industry, 3% to 5% will be seeing change orders in any given project.  We try to keep our change orders between 1% and 3%. 

            Mr. Fennell asked is that building air conditioned?

            Mr. Skehan responded the offices will be air conditioned, but the outside will not be.  We will try to bid the projects in September.  The permits are moving in parallel paths. 

            Mr. Hanks asked has the city been involved?

            Mr. Skehan responded I spoke with Mr. Cassel about this last week.  We are going to set up a meeting to talk to the city about all of these projects coming together, looking at when we are going to have permits and just seeing how we can better coordinate this work so we are all on the same page.  We are looking at receiving bids in the beginning of October to mid October.  We are targeting the November Board meeting to make recommendations. 

            Mr. Hanks stated so we are looking at January of 2009 or February of 2009 to begin the project.

            Mr. Skehan stated we will give notice to proceed soon after the November meeting.  We are looking at a longer term schedule since the bonds were floated in September of last year.  We have 24 months to be able to make sure we have our projects in on the bond schedule.  The nanofiltration plant will be about 20 to 22 months.  We are going to be right on the schedule. 

            Mr. Daly stated any demolition will be phased so we have everything up to speed and operations is comfortable with it.

            Mr. Hanks asked have we gotten any more feedback on the nanofiltration plant being pushed in the direction of having to pull from the Floridian Aquifer?

            Mr. Skehan responded it is part of the modeling and the meeting we will have in August.  From a schedule standpoint it will be a factor, but we have to keep in mind how we are going and where we are going. 

            Mr. Hanks stated Sunrise was challenged by the Sierra Club.

            Mr. Skehan stated Sunrise has been challenged all the way.

            Mr. Hanks stated then you are keeping tabs on it.

            Mr. Skehan stated yes.  You will see, as we go along the schedule we have in here, more little brackets.  We are going to try to keep all of the tasks going.  There is a Microsoft project which we are using to keep track on all of this.  It is easier to see and make sure we are not missing any of the key milestones. 

            Mr. Fennell stated check for the power factors.  We have a few big electric motors out there.  You may have to speak to FPL. 

            Mr. Skehan stated it is one of the things we are looking at.  Over the injection well pump station there are two pumps on the same VFD.  The single VFD is operating two pumps.  Both will come on and turn off at the same time.  It is fairly inefficient.  We are looking at giving wag time to each of the pumps so as the flow comes in you may only need one pump to be able to come on.  This helps with the life expectancy of the pumps and the efficiency of the power consumption.  It really is an O&M asset to have.

            Mr. Fennell stated this is actually a different thing.  It is a different power factor.  You might think of it as water pressure or water movement lined up with water pressure.  When you are moving water you might not have pressure, but when you have pressure you may not be moving water.  In electricity it happens all of the time.  The fact you use an inductive motor automatically makes the phase go out every 40 to 50 degrees from one to the other.  It is a highly technical electrical thing, but because of it you do not actually get full power. 

            Mr. Skehan stated I made a note of it and will bring it to the electrical guy. 

            Mr. Daly asked will the Board be open minded to contacting a company to come in and see how efficient we are?

            Mr. Fennell responded I think it is a good idea to do an overall efficiency study.  Maybe Severn Trent has someone who can come in and do this for us.  It is a service we should be getting from them. 

            Mr. Skehan stated it is something we will do also.  CH2M Hill has this management and we will look at the efficiency of how our operation will be run.  We will look at motors and see how, or if things should be replaced. 

            Mr. Cassel stated we will look into finding someone.




NINTH ORDER OF BUSINESS                             Approval of May Financials and Check Registers

            Ms. Woodward stated last year Broward County changed the combination of discount and administrative fee.  We get charged for the collection of assessment revenues.  In past years we would see in your budget a 6% reduction to cover this.  In actuality it has now been bumped up to 7%.  The additional 1% is not netted out of the funds collected on our behalf.  After the bulk of the funds are collected we are sent a bill and we need to write a check in the amount of $20,000.  You do not pay them a full 7%.  It is a combination.  The 4% is the basic assumption you make in your budget because you want to make sure you are providing for the most conservative approach in estimating your revenue.  You assume everyone who gets assessed will pay in the very first month and will reap a 4% discount for early payment; therefore, those funds will not be available.  If people do not pay in the first month, that money falls to the bottom line as additional funds to the District.  The additional 2% is the actual collection fee Broward County charges for collecting the assessments on your behalf and then remitting it into your bank account.  The last 1% is an additional fee which was added in fiscal year 2008 and going forward for the property appraiser’s office.

            Mr. Hanks asked what does the property appraiser do to earn this 1%?  The checks are made out to the Broward County Revenue Collector. 

            Ms. Woodward responded it is a Florida Statute.  I cannot answer how it arose, but I can look into it.


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


A.                 Projected Cash Flows

B.                 Summary of Cash Transactions

            Ms. Zich asked have we collected more money from the SBA?

            Ms. Woodward responded yes we did.  We collected an additional $82,000 within this past week.  It is not reflected in your May 31, 2008 numbers.  With the $82,000 we pulled out and put into are operating account, there is now approximately $237,000 still with the SBA.






ELEVENTH ORDER OF BUSINESS                     Adjournment

            There being no further business,


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








                                                                                        Robert D. Fennell                                

 Secretary                                                                         President