MINUTES OF MEETING

CORAL SPRINGS IMPROVEMENT DISTRICT

The regular meeting of the Board of Supervisors of the Coral Springs Improvement District was held Monday, April 17, 2000 at 4:10 p.m. in the District office, 10300 N. W. 11 Manor, Coral Springs, Florida.

Present and constituting a quorum were:

Karl Miller Vice President

Clint Churchill Secretary

Also present were:

Rhonda K. Archer Treasurer

Dennis Lyles Attorney

Donna Holiday Recording Secretary

John McKune Gee & Jenson

Roger Moore Engineer

FIRST ORDER OF BUSINESS Roll Call

Mr. Miller called the meeting to order at 4:10 p.m. and Ms. Archer called the roll.

SECOND ORDER OF BUSINESS Approval of the Minutes of the March 20, and March 24, 2000 Meetings

Mr. Miller stated that each Board member had received a copy of the minutes of the March 20, and March 24, 2000 meetings and requested any additions, corrections or deletion.

There not being any,

On MOTION by Mr. Churchill seconded by Mr. Miller with all in favor the minutes of the March 20, and March 24, 2000 meeting were approved as submitted.

THIRD ORDER OF BUSINESS Consideration of Award of Contract for the Purchase of Triploid Grass Carp

Ms. Archer stated enclosed in your agenda package is the bid tabulation for the purchase of Triploid Grass Carp. The low bid was received from J. M. Malone & Sons at $2.89 per fish for a total of 3,680 fish for a total purchase cost of $10,635.20.

On MOTION by Mr. Churchill seconded by Mr. Miller with all in favor the contract for the purchase of Triploid Grass Carp was awarded to J . M. Malone & Sons in the amount of their low bid of $10,635.20.

FOURTH ORDER OF BUSINESS Work Authorization No. 14 to Prepare a Water Management Plan Update/Report

Ms. Archer stated Work Authorization No. 14 is for the Engineer to prepare a Water Management Plan Update/Report. This was prepared at our request due to the amendment of Chapter 298.255 requiring that all special districts in the State that provide water management services, amend their Water Management Plans to provide an update of the Plan. A lot of the Districts such as Coral Springs Improvement District have been constructed in phases with each phase being an adopted Water Management Plan. The State wants all of the different phases combined into one document and filed with the various agencies and this work authorization is to do that work.

Mr. Churchill asked is this an update on the completion?

Ms. Archer responded it will have in the report that these facilities have been completed and are installed and operating. There is a due date of October 1, to have the report completed.

On MOTION by Mr. Miller seconded by Mr. Churchill with all in favor Work Authorization No. 14 was approved.

FIFTH ORDER OF BUSINESS Staff Reports

A. Attorney

There not being any, the next item followed.

B. Engineer

1. Monthly Water & Sewer Charts

2. Update on Construction

Mr. McKune stated due to the recent rain storm we had about 9" of rain over the weekend and we had a lot of infiltration into the gravity sewer system. We overloaded the wastewater treatment plants because of that leakage. Normally that leakage slows down quite a bit immediately and about two days after the rainfall event the plant goes back to normal. The plant has yet to go back to normal. We have some excessive flows that are straining these plants. We have made some preliminary repairs to Plants A & B which are the two prefabricated steel plants that have been in existence the longest. We are at the point where Plants A & B can no longer provide service because of some cracked wells in some of the seams in some of the sections. If we are going to gain any treatment from these plants we must take them out of service and make repairs. The letter I distributed to you was written prior to our getting the contractor in on an emergency basis. I estimated in the letter that it would take about 30 days for each of the two plants to be repaired. After taking the first plant totally down late last week, the contractor also worked over the weekend, we should have the first plant back in service by the end of this week. The repairs are fairly straight forward and not as extensive as they may have been. When the repairs are completed we will have a good 1 mgd plant available to treat the sewage whereas in the past we were lucky to get 300,000 to 400,000 gpd treated. We will follow the same procedure on Plant B which will give us 2 mgd of good treatment. This money will not be wasted because when we rehabilitate and make new the internals of these plants, we will not repeat some of the work we are doing now. This is by way of notification. We have authorized the contractor to start this work on an emergency basis.

Mr. Churchill asked when will Plant A be finished?

Mr. McKune responded we hope to have it back in service this week and we will then start the repairs on Plant B.

Mr. Churchill stated if we are still getting an influx in our system that indicates that our system is leaking more than it has in the past. What would cause it to leak for a longer period of time? You would think there would be a huge rush at the point of the rain, the ground water would be absorbed and we would level off as fast as we did in the past.

Mr. McKune responded a lot of the leaks that were repaired in the past were the cracks in the 8" gravity sewer lines in the middle of the streets and anywhere between 6' and 12' deep. When it rains those cracks come under higher head pressure because the ground water comes up. When it stops raining and it doesn't rain for two months and it is dry as a bone, those pipes are still under water.

Mr. Churchill stated they will continue to leak until they are repaired. It doesn't depend on rainfall but something that peaks beyond the normal.

Mr. McKune stated there is more flow per crack because the head gets higher, plus as the ground water level increases there is more of the service lateral that goes up to the property line that becomes inundated.

Mr. Churchill asked does this constitute a larger emergency as we get in the rainy season?

Mr. McKune responded yes.

Mr. Churchill asked what can we do to prevent it?

Mr. McKune responded I will get into that on my third item.

On MOTION by Mr. Churchill seconded by Mr. Miller with all in favor the emergency work outlined by Mr. McKune on Plants A and B was ratified.

Mr. McKune stated at the last meeting we awarded a contract to replace the five 50,000 gpm pumps. After the contractor got into the piping, notably the submerged portions of the piping going through the structure, they found some extremely leaky flanges. There were cracked flanges with an extreme amount of rust on the 54" diameter pipes that from a structural perspective need to be fixed. What I have distributed to you is the contractor's guess at what ought to be done which totals about $38,000 for all five pump locations. We are currently having our engineers take a look at the same repair scenario. The cost will be different from what the contractor came up with but I wanted to show you this as an order of magnitude of what to expect in the way of a change order that will be coming to you.

Mr. Miller asked what is the amount of the original contract that we awarded?

Mr. McKune responded about $500,000. These are unanticipated repairs.

Mr. Churchill asked do you agree that the work needs to be done?

Mr. McKune responded that is what we are looking at now. We are not just accepting his recommendation. This will come back to you as a request for a change order. No action is required at this time.

The last item is on the water and wastewater rate reduction. We talked several times about possibly reducing the water and sewer rates. We thought it might be possible to do so because we had shown over the past few years some surplus in the operating systems. After looking at the two potential areas that would allow a rate reduction, one would be a reduction in expense because we are paying off some bond issues and the other would be a reduction in the need to spend money for projects which would reduce expenses. This is an analysis of those two items of cost. The first attachment is a summary of all of the water and sewer bonds and their annual principal and interest payments. This represents a refunding bond issue that was sold in 1992. It was a $21 Million bond issue and was sold to refund some of the older bonds that had very high interest rates. As you will recall in the early 1990's interest rates were very attractive. We ended up with the 1992 bond issue which has a fairly level debt service requirement through maturity of 2014. You can see in the years 2004 and 2005 the total debt service requirements drops from about $2.5 million down to $2 million. There is about $400,000 to $500,000 reduction that will occur in the years 2004 and 2005. If all we had to deal with is a bond issue expense I would say that we could defer consideration of a rate decrease until that time but when we thought about the projects we have been discussing for the past couple of years and recalling we had previously given you a draft capital improvement program, we fleshed that out a little bit more and included in the capital improvement program the recommended repairs to the gravity system that are causing all of the leaks coming into the wastewater treatment plant. That is what is scheduled on the second enclosure. We show on an annual basis what we expect to be generated as surplus within the water and sewer account. You can see the $793,300 is what is currently budgeted as surplus at the end of this current fiscal year with a projection forward of $800,000 per year for surplus for the next three years and then approximately $200,000 more in surplus for the following two years resulting from the decrease in the total debt service. The next line shows the prior year carry over starts out with a large number of $9,750,000. That represents the approximate current amount of funds that the District has on hand that we previously slated for the projects we have gone over several times. Under that are the projects we discussed. Most of these numbers are the same as had been previously given to you. The increase to the list is the gravity sewer infiltration reduction program which shows there will be an approximate expense of $3.75 million over the next five to six years. That is the level of effort it will take. This is the kind of repair activity that is common to all utilities that are approaching this age, especially for the old pipes that were put in, in the 1970's. It is hoped that when we complete the eastern portion of the system, Ramblewood and Ramblewood South area which is where the majority of the clay pipes are located, once we seal those, that the extraneous flows will be reduced to the point where it will not be cost effective to go after the rest of them. There is a break even point. At that point it becomes more cost effective to treat the extra flow at the plant.

Mr. Churchill asked where does that reduction appear on the time line?

Mr. McKune responded after the third year. A lot of the money during the remainder of this year will not necessarily go for the repairs but will be for the investigative work necessary to determine where the problems are.

My letter basically concludes that the water and wastewater rates not be reduced until the completion of the improvement program which will be the end of this five to six year period.

Mr. Churchill asked have you taken into account the reduction in revenue because of the loss of tie ins into the system? As we are in the build out state we will get less and less of that revenue.

Ms. Archer stated the bulk of the revenues are related to connection fees which is not in our operating revenue. It won't really effect this program.

Mr. Churchill stated the money we spend not out of this pool, where are they spent? I am talking about connection fees.

Ms. Archer responded they are pledged to another bond issue for subdivision lines that were constructed. The connection fees are the sole revenue pledge for that bond.

Mr. McKune stated there was a special revenue bond that was secured by those connection fees.

Mr. Churchill asked are there any other pools of money besides the two we discussed?

Ms. Archer responded not related to water and sewer. There is your general fund which is a separate system. You can't use those revenues for water and sewer.

Mr. Churchill stated I am glad that we looked at this but at the same time I am disappointed the results are what they are.

Mr. McKune stated we will make this an agenda item for next month.

Mr. Churchill stated I think improvements in service and facilities take precedence over rate reductions. Our job is to provide the best that we can provide.

Mr. McKune stated I agree and I recommend that you attempt to build up another pool of surplus when these improvements are completed. That will eventually save you and the residents a lot of money because if you don't have that pool in the future you have to sell bonds again which has an expense to it.

C. Superintendent

Ms. Archer stated Mr. McKune distributed to you a letter related to Plants A and B and how we were going to shut those down one at a time to do some repairs. Representatives of the D.P.E.P. came to our office on Friday and the concern they expressed at the meeting is whether we were going to be getting treatment out of the remaining plants during the period of time that Plant A was down and during the period of time that Plant B was down and they were concerned that we wouldn't be meeting treatment standards. They indicated that they may issue notices of violation during that period of time because of that. They are also concerned that we might stink during that period of time and they wanted to express their dismay that this was happening. We tried to advise them that we are in the middle of building the redundancy in Plant E so that in the future this won't happen and we won't have a problem meeting treatment standards and the odor problems during normal routine repair and maintenance project like we are doing now. The plant expansion is not done yet so we can't satisfy that today but we will in the future. They were a little concerned that it wasn't done. They would like to see it completed yesterday.

Mr. Miller asked when will Plant E be completed?

Mr. McKune responded it will be anywhere between four months to six months to have it on line.

Mr. Churchill asked are we on schedule?

Mr. McKune responded we are somewhat delayed. We have been looking at alternatives for some portion of the treatment train but it is essentially on track.

Mr. Miller asked do we have water going out that is not being treated properly?

Mr. McKune responded only when there are periods of excessive flows in heavy rain storms.

Mr. Miller asked what happens to the water that is not being treated properly?

Mr. McKune responded it goes down the injection well, treated to a lesser degree than is required by the permit which is unfortunate.

Mr. Miller asked is there an alternative in the interim to address that?

Mr. McKune responded not really. We can put additional chlorine into the water which kills bacteria which is something the plant is doing.

Mr. Churchill stated if it is going in the injection well, that doesn't generate any odor.

Mr. McKune responded that is correct but from the time it enters the plant and goes through various tanks which are exposed to the air, it could generate additional odor.

Ms. Archer stated they made two recommendations. One of their recommendations I told them I thought was unreasonable and couldn't happen is they wanted us to think about building an interconnect with another utility for instances like this when we might have too much wastewater to treat and not enough capacity to treat it. I explained to them that we will have Plant E on line to handle the redundancy much quicker than we could ever enter into an agreement with another city and design and build an interconnect with that city to do the same thing. I think they understood our position that an interconnect will be twice the redundancy in the end. Their other recommendation was that during this next 30 day period since there is the possibility that we might smell, to send out letters to the neighbors, the ones who usually call D.E.P. complaining about us, advising them that we are doing some repairs and maintenance, that will ultimately make our plant more efficient and during this next 30 day period we might smell a little bit but in the end it is to provide more efficiency and less odor problems and ask for their patience and indulgence during this period of time to cut down on the phone calls to D.E.P. The more phone calls that we cut down that they receive, the less violations we will probably receive. I didn't think that was an unreasonable request and I would like the Board's permission to proceed with that. I will put together a letter to our neighbors.

Mr. Miller asked have we received any notices of violation yet?

Mr. McKune responded no.

Mr. Miller stated I think it is a good idea to do the letter.

D. Complaints

There not being any, the next item followed.

SIXTH ORDER OF BUSINESS Supervisor's Requests and Audience Comments

There not being any, the next item followed.

SEVENTH ORDER OF BUSINESS Approval of Invoices

On MOTION by Mr. Churchill seconded by Mr. Miller with all in favor the invoices were approved for payment.

Meeting adjourned at 4:35 p.m.

Clint Churchill Karl Miller

Secretary Vice President