MINUTES OF MEETING

NORTH SPRINGS IMPROVEMENT DISTRICT

 

            A meeting of the Board of Supervisors of the North Springs Improvement District was held on Wednesday, April 8, 2009 at 4:49 p.m. at the District Office, 10300 NW 11th Manor, Coral Springs, Florida.

 

            Present and constituting a quorum were:

           

            Steve Mendelson                                            President

            David Gray                                                     Secretary

            Vincent Morretti                                             Assistant Secretary

 

            Also present were:

 

            Kenneth Cassel                                               District Manager

            Dennis Lyles                                                   District Counsel

            Jane Early                                                        District Engineer

            Brenda Schurz                                                Severn Trent Services

            Stephen Bloom                                               Severn Trent Services

            Rod Colon                                                      Chief Operator

            Nick Schooley                                                 Drainage Supervisor

            Joe Sabino                                                       Heron Bay Clubhouse Manager

            Rhonda Mossing                                             Prager, Sealy & Company

            Sean Sackman                                                 Sun Trust Bank

                                                                                                           

            The following is a summary of the minutes and actions taken at the April 8, 2009 North Springs Improvement District Board of Supervisors meeting.

                                                                                                                       

FIRST ORDER OF BUSINESS                             Roll Call

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

 

SECOND ORDER OF BUSINESS                        Supervisors’ Requests and/or Audience Comments

            There not being any, the next item followed:

 

THIRD ORDER OF BUSINESS                            Approval of the Minutes of the March 4, 2009 Meeting

            Mr. Cassel stated each Board member received a copy of the minutes of the March 4, 2009 meeting and requested any corrections, additions or deletions.

            There not being any,

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor the minutes of the March 4, 2009 meeting were approved.

 

FOURTH ORDER OF BUSINESS                        Refunding Opportunities for the Parkland Isles Bonds

            A.        Consideration of Commitment Letter from SunTrust

            B.        Consideration of Delegation Resolution No. 2009-5 and Form of Supplemental Indenture

            The following was discussed:

·         The residents will save between $60 and $90 per unit, per year.

·         The commitment letter is to refund the bonds at an interest rate of 4.5%.  The bonds are currently outstanding at 7%. 

·         The change in interest rate will save the residents of Parkland Isles approximately $485,000 over the remaining life of the bonds.

·         Ms. Mossing and Mr. Sackman addressed questions from the Board. 

·         Mr. Lyles noted he has reviewed and commented on the various documents and is comfortable with what is being presented to the Board.  The documents protect the District and make it clear this refunding, and the bonds represented by it, is not a general obligation of the District.  They are a special obligation of this particular assessment area.  It is also clear none of the financial consequences spread out to other parts of the District or towards the general fund.  They only relate to Parkland Isles.

·         The commitment letter outlines the parameters of what they are going to do, what is going to be paid and what is going to be derived. 

·         Resolution 2009-5 delegates authority to the President and Secretary to sign the necessary documents within the parameters of the resolution.  This will be done in a pre-closing later in the month.  The documents will be prepared for a closing and a wire transfer of funds on May 1, 2009. 

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor the Board approved the execution of the SunTrust commitment letter.

 

·         Mr. Lyles stated the commitment letter states the interest rate is fixed at 4.5%.

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor Resolution 2009-5, authorizing the issuance of its special assessment refunding bonds, Series 2009 in the principal amount not to exceed $1,760,000 in one or more series, for the purpose of refunding the District’s special assessment bonds, Series 1997A and costs related thereto; pledging and granting a lien on special assessments and a reserve fund to secure such bonds; awarding the bonds to SunTrust Bank by negotiating sale; designating the bonds as “qualified tax-exempt obligations” within the meaning of section 265(b)(3) of the internal revenue code of 1986, as amended; making certain covenants and agreements in connection therewith; providing for an effective date; and for other purposes, was adopted.

 

·         Mr. Lyles stated District staff put together a supplement to the original assessment methodology.  Everyone’s annual assessment will go down.  Page A-3 outlines the assessable units, the debt service assessments, the previous rates they are paying and the rates they will be paying after the refunding is complete.

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor the supplement to the assessment methodology was accepted.

 

FIFTH ORDER OF BUSINESS                             Consideration of Work Authorizations

            A.        WA No. 186-04-08-09 in the Amount of $97,540 for the Booster Station Chemical Feed Improvements

            Mr. Cassel briefly reviewed the work involved with WA No. 186-04-08-09.

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor WA No. 186-04-08-09 in the amount of $97,540 for the booster station chemical feed improvements was approved.

 

            B.        WA No. 187-04-08-09 in the Amount of $171,870 for the Water Treatment Plant Chemical Feed System Improvements

            Mr. Cassel and Mr. Colon briefly reviewed the work involved with WA No. 187-04-08-09.

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor WA No. 187-04-08-09 in the amount of $171,870 was approved. 

 

SIXTH ORDER OF BUSINESS                             Consideration of Contract Awards

            A.        Gate Access Proposals

            Mr. Cassel reviewed the proposals for power supply and communication for the access gate.  Staff recommends Cee Bee Electric as the lowest bidder with a quote in the amount of $1,950.  Mr. Gray was concerned with inconsistencies when comparing all the quotes.  Mr. Colon clarified the work Cee Bee Electric will do.

 

On MOTION by Mr. Gray seconded by Mr. Mendelson with all in favor the quote for gate access work from Cee Bee Electric for a total amount of $1,950 was approved contingent upon verification that trenching and electric work is included and in the case it is not the work will be awarded to the next lowest responsive bidder.

 

            B.        Sod Work on County Line Road

            Mr. Cassel reviewed the proposals for sod work on County Line Road and recommended awarding the work to J. Emery Bobcat Service, Inc.

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor the sod work on County Line Road was awarded to J. Emery Bobcat Service, Inc. 

 

            C.        Sludge Removal

            After further review with District counsel, Mr. Cassel recommended re-bidding the work for sludge removal.

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor all the bids received for sludge removal were rejected.

 

SEVENTH ORDER OF BUSINESS                      Consideration of Surface Water Management Permit for Elementary School Z for Off-Site Improvements Located Southwest of the Intersection of Nob Hill Road and Pine Island Road

            Ms. Early stated this is a standard surface water management permit with some special conditions listed. 

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor the surface water management permit for Elementary School Z for off-site improvements located southwest of the intersection of Nob Hill Road and Pine Island Road was approved.

EIGHTH ORDER OF BUSINESS                         Staff Reports

            A.        Manager

                        i.          Discussion of Expansion of Water Service to Residents of Pine Tree Estates in the City of Parkland

            The following was discussed:

·         Some Parkland residents are complaining about the District’s potential impact on their private wells. 

·         The City of Parkland approached the District as well as the City of Coconut Creek to provide these residents with water rather than them using their well water.

·         Mr. Colon researched this project and reported the following:

Ø  It cost the District $.93 to produce 1,000 gallons of potable water.

Ø  The areas are located at Holmberg Road and Riverside Drive, which is not within the District’s municipal boundaries. 

Ø  The amount of homes is 789.

Ø  It falls within the City of Parkland.  The City of Parkland has an agreement with the City of Coconut Creek to serve the area in the future if there is ever a need. 

Ø  In 2003 the residents rejected an offer from the City of Coconut Creek to put in potable water lines because they thought it was too much money.

Ø  Many of these residents have to upkeep their wells, which cost them $80 a month.

Ø  Some of these residents have been complaining that as a result of some of the wells in the area, NSID was causing an impact on their ability to draw water out of their personal wells.

Ø  The District’s permit requires the District not to impact anyone else.  After further investigation it was determined that the District’s well closest to the area in question was not turned on, which means the District is not the cause. 

Ø  The City of Coconut Creek has a Bulk Water Sale Agreement with Broward County.  They purchase their water from Broward County at $1.96 per 1,000 gallons and they resell it to their residents for $3.26.

Ø  NSID charges $1.34 per 1,000 gallons.

Ø  The City of Coconut Creek is interested in NSID helping them build an infrastructure and they also want to know if they can purchase water from the District at a less expensive rate than the City of Broward County.

Ø  The City of Parkland and the City of Coconut Creek would take the cost savings and apply it to debt services to pay for the infrastructure. 

Ø  NSID would be selling them 100 Million gallons a year.  This will not pay for too much of the infrastructure. 

Ø  Mr. Colon does not recommend becoming involved in this project. 

 

ii.         Parkland Isles Field Management Update

            This item is for informational purposes only, a copy of which is attached hereto and made a part of the public record.

 

                        iii.        Water production Reports

            This item is for informational purposes only, a copy of which is attached hereto and made a part of the public record.

 

                        iv.        Utility Billing Work Orders

            Mr. Cassel briefly reviewed the billing work orders. 

 

            B.        Attorney

            Mr. Lyles reported there is a tentative agreement with the attorneys for WCI Communities, Inc. with regard to the bankruptcy case.  There should be a conclusion by the May meeting.  The attorney’s representing the District in Delaware submitted invoices for a total amount of $10,176.  They gave the District a government rate and the fees are reasonable.

 

            C.        Engineer

                        i.          Consideration of Proposal for Pump Station No. 1 RTU in the Amount of $37,800

            This item was tabled for a future meeting.

 

                        ii.         Project(s) Status Report

            This item is for informational purposes only, a copy of which is attached hereto and made a part of the public record.

 

NINTH ORDER OF BUSINESS                            Approval of Financials and Check Registers

            There being no questions or comments,

 

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor the financials, check register and invoices from White and Williams, LLP were approved.

           

TENTH ORDER OF BUSINESS                           Adjournment

            There being no further business,

 

On MOTION by Mr. Gray seconded by Mr. Mendelson with all in favor the meeting was adjourned.

 

 

 

 

 

 

 

                                                                         

 David Gray                                                                   Steve Mendelson                                          

 Secretary                                                                        President