MINUTES OF MEETING

NORTH SPRINGS IMPROVEMENT DISTRICT

 

            The regular meeting of the Board of Supervisors of the North Springs Improvement District was held on Wednesday, May 10, 2006 at 4:35 p.m. at the District Office, 10300 N.W. 11th Manor, Coral Springs, Florida.

 

            Present and constituting a quorum were:

 

            Salvatore Mendolia                                           President

            Steve Mendelson                                              Secretary

           

            Also present were:

 

            John Petty                                                        Manager

            Michael Pawelczyk                                           Attorney

            Jane Early                                                         Engineer

            John McKune                                                   CH2M Hill

            Jean M. Rugg                                                   Severn Trent Services

                                                                                   

FIRST ORDER OF BUSINESS                               Roll Call

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

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the April 12, 2006 Meeting

            Mr. Petty stated each Board member received a copy of the minutes of the April 12, 2006 meeting and requested any corrections, additions or deletions.

            There not being any,

 

On MOTION by Mr. Mendolia seconded by Mr. Mendelson with all in favor the minutes of the meeting of the April 12, 2006 meeting were approved.

 

THIRD ORDER OF BUSINESS                             Consideration of WA #161 – Heron Bay Commons Tennis Club Hurricane Repair and Maintenance

            Mr. Petty stated this is for engineering work associated with them overseeing the job.  This is the second half.  The first half was prepping all of the documents and putting them out to bid. 

            Mr. Mendolia asked what is the timeframe to complete operation on it?

            Mr. Petty responded I believe the contract was short.  Was it 30 days?

            Mr. McKune responded approximately.  They are going to sub-consult with the original architect.  They are going to start working next week.  It will take 30 days. 

            Mr. Petty stated this is for the tennis court repair not the structural.

            Mr. McKune stated it will be 30 days.

            Ms. Early stated this is for the clubhouse.

            Mr. Petty stated I am sorry.  It is my mistake.  I misinterpreted the work authorization.  I asked for our engineer to do a structural evaluation because we had roof damage and structural damage with fences as well as the holding areas where people wait for tennis.  They were bent from the storm.  I do not want the contractor doing repairs when it is the structure, which has been damaged.  We have estimates from a roofer, our insurance company and FEMA for the repairs, but no one has gone up in the attic to see how much wood was damaged.  We are getting a structural engineer as a substitute to our engineer to go underneath all of the material, check the structures and everything damaged, including all poles and support structures.

            The pool is damaged.  The marcite is gone.  We have a couple of structural issues we noticed from original construction.  There are two holes in the structure at the top of the entry feature.  The management company has put pigeon wire to stop the pigeons from resting there.  Painting needs to be done.  It is time to overhaul the entire structure.  We have our engineers doing it.  This work authorization is to allow them to do it.  We have an estimate from their substitute in the $20,000 range.  They will get paid according to an hourly rate and then they have to pay their substitute.

            Mr. Mendolia asked is WCI getting involved?

            Mr. Petty responded WCI is getting involved in our questions and in getting outside observations.  When it comes to funds, we have many options.  They included original funding provided for the original structure.  We do not think this will negatively impact the budget coming up to you.  I apologize for making you think it was for tennis court repairs. 

 

On MOTION by Mr. Mendolia seconded by Mr. Mendelson with all in favor WA #161 for the Heron Bay Commons Tennis Club hurricane repair and maintenance was approved.

 

 

 

 

FOURTH ORDER OF BUSINESS                          Consideration of Change Orders

            A.     Florida Sewer and Water Change Order No. 1 for Heron Bay Commercial Residential Development Parcel for a Net Increase of $40,475.36

            Ms. Early stated these change orders are for work currently under construction.  The reason for the change order is because the contractor was held up by WCI.  These change orders are all WCI costs.  Even though the increases include water and sewer, WCI has to bear the cost of the increases.  These projects were bid over 90 days ago.  Because WCI was the hold up, they have to pay to relieve these costs.

            Mr. Petty stated they have the exposure.  This is going to come from our fee base system.  WCI bears the risk of not receiving payment.

            Mr. Mendolia asked are they aware of this?

            Ms. Early responded yes.

            Mr. Petty stated it is a complicated set up, but it works well.  If WCI changes its development, gets held up or adds more units and you get a cost increase, the only way they can get compensation from us is if we get more connection fees or user fees, which are part of their reimbursement.  They bear the burden.

            Mr. Mendolia asked did they sign this?

            Ms. Early responded yes, they signed it. 

 

On MOTION by Mr. Mendelson seconded by Mr. Mendolia with all in favor Florida Sewer and Water Change Order No. 1 for Heron Bay Commercial Residential Development Parcel for a net increase of $40,475.36 was approved.

 

            B.         Florida Sewer and Water Change Order No. 1 for Banyan Isles and Sable Point for a Net Increase of $234,466.10

            Ms. Early stated this is the same issue.  The reason there is one and two is we separated them to make it clear.  They were bid together, but when we did the change order we separated them.  They are WCI costs as well.

            Mr. Mendolia asked does the same situation apply?

            Ms. Early responed yes.

 

On MOTION by Mr. Mendelson seconded by Mr. Mendolia with all in favor Florida Sewer and Water Change Order No. 1 for Banyan Isles and Sable Point for a Net Increase of $234,466.10 was approved.

 

            C.         Florida Sewer and Water Change Order No. 2 for Banyan Isles and Sable Point for a Net Increase of $143,385.71

            Ms. Early stated this is the same issue.

 

On MOTION by Mr. Mendelson seconded by Mr. Mendolia with all in favor Florida Sewer and Water Change Order No. 2 for Banyan Isles and Sable Point for a net increase of $143, 385.71 was approved

           

FIFTH ORDER OF BUSINESS                               Staff Reports

            A.     Manager’s Report – Discussion of Upcoming Budget and Schedule

            Mr. Petty stated we will start the budget process by bringing you a proposed budget.  It is typically similar to what you spent last year with whatever we discussed this year to start up with.  It is for you to approve so I can send it out to other government agencies and to residents who want to get involved.  We will start discussing the projects and the costs.  At the first budget meeting, which will be at your next meeting, we will pick a date for the public hearing to take place.  Ms. Rugg has a strict schedule.  We must have the public hearing 60 days after we approve the proposed budget to have public input.  After we take public input we will adopt the budget.  There are some formal issues we will go through in adopting resolutions and assessment rates in the process.  The first step is at our next meeting where we will have a draft budget for your review.

            Mr. Mendolia asked do you want to pick a date?

            Mr. Petty responded because we have been bouncing our calendar around, it is disoriented.  We would like to clarify when our next meeting is going to be so we can work out everything for the budget hearing.

            There was Board consensus to have the next meeting on Thursday, June 8, 2006 at 4:30 p.m.

 

On MOTION by Mr. Mendolia seconded by Mr. Mendelson with all in favor the next Board meeting was scheduled for Thursday, June 8, 2006 at 4:30 p.m. at the District Office.

 

            Mr. Petty stated we have submittal from our engineers.  Their corporate parent is asking for a rate increase on a per hour basis, which affects all of our construction projects.  It is not unusual during these times with gasoline, construction and housing costs going up.  I am going over the bills on the construction projects and I am not happy, but the per hour rate is not out of line.  I am working with Mr. McKune and will be working with Ms. Early on this issue.  It seems they are exceeding acceptable norms for engineering fees, which are typically around 7.5%.  I will be sitting down with both of them to go over these issues.  The increased hourly rate requested is not out of the standard. 

            Mr. Mendolia asked did you say it is 7%?

            Mr. Petty responded they typically get 7.5% for one part or the other.  It is 14% total for design and then construction.  They might say it is supposed to be 7.5% each, but I think they are trying to get another point.  Mr. McKune and Ms. Early have always provided extra work.  I recommend you do it along with the budget at the next meeting.

            When it comes to the Heron Bay Commons agreement and having the HOA operate and maintain it, we are very close.  Our intent in the new agreement is to make the HOA responsible for satisfying the recreational demands of the residents.  We will hold them accountable for everything. 

            Mr. Mendelson asked have they decided what they will do as far as non-residents coming in to use their facilities?  Is it a closed issue?  People can come in.

            Mr. Petty responded it is a closed issue.  Staff made it clear that it is a public facility.

            Mr. Mendelson stated I want to make sure they are aware of it so whatever the situation is, they have to handle it in the context of what we voted on last time. 

            Mr. Petty stated you have the review rights.  Should you find or hear of any violations, it is a way for you to come back.  Counsel has put in the current proposal amendment for there to be a right to terminate with a 30 day notice.

            Mr. Pawelczyk stated as well as a division in the agreement requiring the HOA to abide by our charter when dealing with the purchase of any supplies and the $4,000 limit we have.  They have to do it by law.  We put it in there to make sure they understand it as well as comply with any bond covenants, which govern the District.  The bond covenants dealt with the tax exempt bonds issued.  In order to issue tax exempt bonds, it must be a public facility.  It all revolved around the bond covenants and they are required to not breach those.  If they want a copy of them, we indicated in the agreement they are available to them. 

            Mr. Petty stated when the agreement comes to you in its final form, which will happen before October 1, 2006, you will see all of the language and we will discuss it at great lengths to make sure you are happy with it.  The main intent is to make this body either hire or fire the management group so any issues stay with them and do not come before the Board.  The only thing we will consider is hiring them or firing them if they are unhappy with them. 

            Mr. Mendolia asked what about financially?

            Mr. Petty responded we will get a one line item budget saying management.  They will get 1/12 of the fee and they must fill the room with all life cycles, furniture, pictures, food as well as paying the utility bills.  They must do it all.  It will take you out of the problem area.

            None of the money comes back to us.  If there is any offsetting revenues from fees they charge, it offsets their cost.  We are responsible for maintaining the structure and administrating the contract.  When you get your budget you will see three line items.  Administrating the contract is a line item I will put in there for counsel to review if there is a problem.  There will be another line item saying reserve for structure, which is what we should do for owning an $8 Million asset.  When it comes to Heron Bay Commons, we have monies in our construction account we can use to build new tennis courts.  It looks like we have room for at least four tennis courts.  With your permission, I will put it in the proposed budget for consideration.

            Mr. Mendolia stated do it.

            Mr. Mendelson stated it will make them happy.

            Mr. Mendolia stated it should make WCI happy.  If they want to sell houses, the only way they will do it is with tennis courts.  People love it. 

            Mr. Petty stated we know on existing land we can get in approximately four courts.  We also have land on the other side.  When you enter the main structure it will be on the left.  There is a long parking lot and a canal.  There is land there we might not need for the flow way.  We might be able to fill it in and get enough room for a court.  I have not talked to our engineer yet.

            Mr. Mendolia stated if you put those courts in, you will have a great deal of happy people. 

            Mr. Petty stated we are close to getting a final agreement, which will keep it simple for this Board.  If any resident comes hear to complain, they will need to get enough people for us to fire them.  Everything else must go through the HOA.

            We have an item, which was not in your agenda.  It is an item we told you we were going to put out to bid.  It is the hurricane debris removal and canal bank restoration.  We talked about it at the last meeting.  Our engineers put it out to bid.  They have a bid tabulation to go over with you.  We opened these bids on May 4, 2006 and could not get them in the agenda package. 

            Mr. McKune stated on May 4, 2006 we took bids for the hurricane debris removal and canal bank restoration for NSID.  We received four bids.  The lowest responsive bid was submitted by Arbor Tree & Land, Inc. for a total base bid of $172,860.  If you look at the bid tabulation, you can see there was a tremendous spread in the bid amounts.  It went from a low bid of $172,860 up to a high bid of $1 Million more. 

            Mr. Mendolia stated something is wrong.

            Mr. McKune stated I believe something is wrong on the high end and not the low end.  I think this person did not look at the job and put their bid in hoping to get it.  This is a good amount from Arbor Tree & Land, Inc.  They are doing the work in CSID.  They are a well qualified company.  We reviewed the bids and we recommend the Board award the project to Arbor Tree & Land, Inc. subject to the two concerns in this letter; determination of NSID vegetation removal and/or permitting process and funding being available.

            Mr. Mendolia asked does this cover any area of NSID?

            Mr. McKune responded for hurricane damaged areas.

            Mr. Petty stated most of the trees, which were down in the berm area of Parkland Isles, have been removed by the landscaper and paid for.  We submitted applications.  Let me speak to the type of removal because your sister districts, CSID and SWCD, had huge problems with this tree removal program.  We had Australian Pines, Banyans and other trees, which grew next to the canal systems.  We do not have this situation in NSID, which is a water management facility and we do not have standing waters with seedlings.  We have some trees damaged.  Our concern is to remove the debris and to more importantly put the shape back to the bank.  I am glad to see the number is as low as it is.  Arbor Tree & Land, Inc. is working on one of the contracts at CSID.  Their equipment is outstanding and their people are capable.  The only issue we have with him is on some of the side deals.  We are trying to work with him and we are hoping to take advantage of his generosity.  He is not so generous.  He does the removal work expeditiously.  We also recommend you award to them subject to the definition of item one by the engineer.  I would like more information on the concern about the vegetation removal process.

            Mr. McKune stated if there is a concern to be covered, I do not believe it is a concern at NSID.  It is no longer an issue.

            Mr. Petty stated Mr. McKune and I had several discussions in our sister districts on how do we spend $2 Million to $3 Million removing downed trees without having a policy on the trees left standing.  Only half of the trees were knocked down during the hurricane.  NSID is a different animal.  We do not have this issue here.  This is nothing more than a few trees planted for aesthetic value, which have fallen in our area.  We can clean them up without trying to administer how everyone grows trees in their backyards.  I do not advise the Board to consider it at this time. 

 

On MOTION by Mr. Mendolia seconded by Mr. Mendelson with all in favor the hurricane debris removal and canal restoration project for NSID was awarded to Arbor Tree & Land, Inc.

 

            B.     Attorney

            There being no report, the next item followed.

 

            C.     Engineer

            Mr. McKune stated we have two drainage pumps in NSID, which take care of drainage for the entire District.  The original pump station is Pump Station No. 1 at the end of Wiles Road on the other side of the Sawgrass Expressway.  Pump Station No. 2 is newer.  Pump Station No. 1 has four pumps in each pump.  The original permit has one pump discharging water to the south going down C-14.  It had two pumps discharging directly into the Everglades.  The fourth pump discharges to the north into the Hillsborough Canal. 

            We only have one pump piped up to discharge to the Hillsborough Canal.  SFWMD only wants us to discharge to Hillsborough Canal.  The one pump is broken.  We received a quote from FPI to repair the pump.  It is a fairly high number of approximately $80, 000.  We advertised for bids a month ago.  The time to receive the bids came and went on April 27, 2006 with no one bidding on the job.  We called FPI and they would like to do the job, but they are currently doing a huge job in Mississippi related to the hurricane.  They did not want to bid and make promises they might not be able to keep. 

            I spoke with them since then and they will be through with their large job at the end of this month.  They feel they can do the work.  On page two of your handout is a copy of the format of the bid tabulation, which was submitted.  Page three is a copy of their original quotation to do the work.  If you add up the numbers it comes to $81, 331.  If you look at the structure of the quotation and compare it to the bid tabulation, you can see the structure is identical.  With hurricane season around the corner, we would like to get this job done as quickly as possible.  If we need to, we can re-bid the project.  I ask you to allow us to negotiate with FPI to do the work.  The quotation is a reasonable and fair price.  They want to do the job.  It is the best route for the District to take. 

            Mr. Mendolia asked do you see any problem with this?

            Mr. Pawelczyk responded no.  I discussed this with Mr. McKune a couple of weeks ago when you did not receive bids.  There is a statutory provision in your build and public improvement.  It requires you to bid projects over a certain amount.  If you do not get bids, you can negotiate.  We can do this because the bid was publicly advertised and no one responded.

            Mr. Mendolia asked are you going to negotiate with them on $81,000?

            Mr. McKune responded yes.  I will try.

            Mr. Mendolia asked did we ever talk about the pump situation?

            Mr. McKune responded I am sure we have.

            Ms. Early stated you gave us permission to bid it.

            Mr. Mendolia stated I am talking before that. 

            Mr. McKune stated it has been a progressively worsening situation.  There were interim repairs made repeatedly.  You cannot repair it again.

 

On MOTION by Mr. Mendolia seconded by Mr. Mendelson with all in favor general construction for Pump Station No. 1 at an amount not to exceed $98,000 was awarded to FPI, Inc.

 

SIXTH ORDER OF BUSINESS                              Approval of Requisitions and Invoices

            There being no questions or comments,

 

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

 

SEVENTH ORDER OF BUSINESS                        Supervisor’s Request and Audience Comments

            There not being any, the next item followed.

 

 

 

 

 

 

 

 

 

EIGHTH ORDER OF BUSINESS                           Adjournment

            There being no further business,

 

On MOTION by Mr. Mendolia seconded by Mr. Mendelson with all in favor the meeting was adjourned at 5:21 p.m.

 

 

 

 

                                                                         

 Jean M. Rugg                                                                 Salvatore J. Mendolia

 Assistant Secretary                                                         President