MINUTES OF MEETING

PINE TREE WATER CONTROL DISTRICT

 

            The regular meeting of the Board of Supervisors of the Pine Tree Water Control District was held on Thursday, June 1, 2006 at 5:00 p.m. at the Parkland City Hall Library, 6620 University Drive, Parkland, Florida.

 

            Present and constituting a quorum were:

 

            David Rosenof                                                  President

            Margaret Bertolami                                           Vice President

            Paul Brewer                                                     Secretary

            Donna Benckenstein                                         Assistant Secretary

            Mimi Bright Ribotsky                                        Assistant Secretary

 

            Also present were:

 

            John Petty                                                        Manager

            D.J. Doody                                                      Attorney

            Warren Craven                                                 Engineer

            John McKune                                                   CH2M Hill

            Jean M. Rugg                                                   Severn Trent Services

            Janice Larned                                                   Severn Trent Services

            Darryl Kisson                                                   Severn Trent Services

            John Hart                                                         Wrathell, Hart, Hunt & Associates

            Madonna Dellolio                                             Wrathell, Hart, Hunt & Associates

            Michael Szymonowicz                                      Wrathell, Hart, Hunt & Associates

            Irving Rosenbaum                                             New Community Strategies

            Robert T. Mearns                                             New Community Strategies

            Dennis Baldis                                                    Governmental Management Services

            Richard Hans                                                    Governmental Management Services

            Luis Hernandez                                                 Governmental Management Services

            Neil Kalin                                                         Special District Services

                                                                                   

FIRST ORDER OF BUSINESS                               Roll Call

            Mr. Rosenof Called the meeting to order and Mr. Petty called the roll.

 

SECOND ORDER OF BUSINESS                          Approval of the Minutes of the May 4, 2006 Meeting

            Mr. Rosenof stated each Board member received a copy of the minutes of the May 4, 2006 Meeting and requested any corrections, additions or deletions.

            Ms. Ribotsky stated my name is spelled wrong on the first line of page six.  In the last paragraph of page 24, “Turnbridge” is spelled “Ternbridge” and “Woodier Oaks” should be “Whittier Oaks”.

 

On MOTION by Ms. Ribotsky seconded by Ms. Bertolami with all in favor the minutes of the May 4, 2006 meeting were approved as amended.

 

THIRD ORDER OF BUSINESS                             Questions and Comments on Proposed Budget

            Mr. Petty stated at the last meeting we gave you a proposed budget for discussion and dissemination purposes.  It is standard policy for us to put it on the next agenda to discuss if any Board members wish to make changes or get further information on a line item.

            Mr. Rosenof asked does anyone have any questions or comments about the budget?  When we talk about the actual through a certain amount that includes items of which we have cost recovery, I do not want to overstate our budget if we have been reimbursed for some of the costs.

            Mr. Petty stated no sir.  It would have shown up as a revenue source in the budget.

            Mr. Rosenof stated the total projected for the attorney fee is $10,000.  If $5,000 of it was cost recovery, would it show under other revenue?

            Mr. Petty responded no sir.  If it was under cost recovery, it would not be part of this budget.  It would be part of the authorization for the attorney to enter into such agreements during the year.

            Mr. Rosenof asked did the actual through March 31, 2006 not include any items by which we could receive cost recovery?

            Mr. Petty responded not from the explanation you gave.

            Mr. Rosenof asked are you looking for a motion?

            Mr. Petty responded no sir.  It is for discussion purposes only.

           

FOURTH ORDER OF BUSINESS                          Attorney’s Report – Status on Title Work

            Mr. Doody stated the issue has been resolved to great degree.  Mr. Craven provided me direction with respect to the title work.  It appears the only entity we will need to deal with regarding the canal is Broward County.  Even though my title report shows five different entities, Mr. Craven has gone through there with his engineer eye and identified those interests do not impact the canal in question.  I will be working with Broward County who I am confident will be cooperative and we will make progress quickly.  I can now give a legal and proposed quitclaim deed and go through the process saying this is what we want.  We are going to have a depiction to show them.  I am comfortable we can isolate the area to show them it is not something they have interest in.

            Ms. Ribotsky asked did we find any other potential areas?

            Mr. Craven responded no.

            Ms. Ribotsky asked do you think this is our only property?

            Mr. Craven responded no.  I did not look.

            Mr. Doody stated we isolated this canal to Broward County.

            Mr. Craven stated there are only two major areas of concern as it affects the drainage.  It is the canal on the north side of the Sawgrass Expressway and the canal we are currently addressing.  If they were filled in or closed up, we would have a problem draining everything.  We have other areas where there are questionable right-of-ways and easements, but they are limited to local areas which do not have a major impact on the District.

            Ms. Ribotsky asked will we never end up in an NRCS title issue where we will miss out on potential funding for clearing them?

            Mr. Craven responded this will be a policy decision upon the part of the Board.  We have a number of areas where we have flowage rights coming through where by we drain water to another subdivision and ultimately to our outfall.  Those lakes, water bodies or whatever you want to call them, are owned by the HOAs.  I am not addressing those situations.  You need to look at this.

            Ms. Ribotsky stated if another storm happens and we have to apply for things, the first thing we will do is a title search.  If we did a title search and it shows joint ownership, do we know if we can do a joint application?  Rather than go through the quitclaim deed process, will it be okay to do an application in conjunction with Broward County and submit it for funding?  I want to make sure when we go into the next storm, we do not lose out on the funding we lost out on this time.

            Mr. Petty stated the intent is to work on major drainage canals, which Mr. Craven has talked about.  There are secondary issues we are not addressing at the moment.  We are going after the principal issues, the issues we are most concerned with, which were raised during the NRCS application process problems we discussed at the last meeting.  You will be continuing to look at proper title and ownership, not only for NRCS, but for any practical application of government funds and maintenance thereof. 

            This is something we needed to do all along.  We are on the right track.  We have a good start.  I do not know if we covered every possible nuance of a hurricane hitting next year, but if we can get ownership for the primary corridors, we are covering the vast majority of costs involved with a hurricane event. 

            Mr. Craven stated it was discussed in the December meeting and you gave me direction to look at all of the right-of-ways.  I am willing to do this, but they are not pressing at the moment.  We have a different fire to put out.  It does not take long to determine where we have problems.  The resolution to the problems may take little time.

            Mr. Rosenof stated you attack the easiest ones first to get them out of the way.

            Mr. Craven stated after we get past this initial phase.

            Mr. Doody stated to address Ms. Ribotsky’s concern, it is a valid point.  Historically, the ownership or title to the canals has never been an issue of concern.  No one ever exercised any control or maintenance other than the District.  The issue arose when I had to certify to it on a legal basis.  We are turning it up a notch for lack of a better term.  It was never done with formality.  We are formalizing what was done.  We have gone a long way towards formalizing the main system.  It is a correction of historic practices we are trying to address.

            Mr. Petty asked can you give me a time estimate of the process?

            Mr. Doody responded 60 to 90 days.  I will be working with the Deputy County Attorney next week.  I have a professional relationship with her.  I anticipate there will be a level of cooperation, but I believe the county commission is off for July.  They are in recess; therefore we anticipate getting on the agenda for August or September.

            Mr. Petty stated the reason I asked such a question is because Mr. McKune from CH2M Hill, who has been doing a great deal of work for the hurricane clean up, has developed a good relationship with NRCS.  He was able to get NRCS to put us on the list of approved projects if we can get the contract signed.

            Mr. Doody stated call me next week after I speak to Ms. Azcoitia and I will give you an accurate representation.

            Mr. Petty stated I do not want to get the Board’s hopes up because I believe it is a small window.  We thought the window was closed.  They opened it after Mr. McKune basically stayed out on their porch for a night.  It is a possibility if we can get title in the window they will allow.  NRCS is not going to give us a big window.  If we can sign it within a time frame, we might be able to get some money back.

            Ms. Ribotsky asked are you saying it needs a county commission vote?

            Mr. Doody responded I believe so.

            Ms. Ribotsky stated I imagine the way they will do it is by passing a resolution supporting the deed.  Given the amount of funding we can get, can we request they pass the resolution contingent upon something?  We have done it before in the city commission. 

            Mr. Doody stated I will try.

            Ms. Ribotsky stated when there is a time pending and we tell them the amount of dollars at risk, we can ask them to pass the resolution saying they will authorize the deed contingent upon whatever.  This way we can capture it during June.

            Mr. Doody stated I will call tomorrow.

            Mr. Petty asked since you are asking for a political resolution from the county, is it preferable to contact the City of Parkland and the City of Coral Springs to support it?

            Ms. Ribotsky responded yes.  We can pass an independent resolution to this affect.

            Mr. Doody stated let me work with you in this regard and you can reach out at that point once I ask the question downtown. 

            Ms. Ribotsky stated the City of Parkland may only have one meeting in the first week of June.

            Mr. Doody stated it is a statutory process.  It is not political so I am not sure if it will have any bearing on it.  I will make the inquiry. 

           

FIFTH ORDER OF BUSINESS                               Engineer’s Report

            There being no report, the next item followed.

 

SIXTH ORDER OF BUSINESS                              Consideration of Award of Contract for Canal Clean Up

            Mr. Petty stated we asked our engineers to put this out to bid so if you wished to consider this construction project and clean up at tonight’s meeting you would have the pertinent information.  Mr. McKune has put it out to bid.  We have a summary of the bid.  The bid is being contested.  At this time I will turn it over to Mr. McKune to explain who the apparent low bidder is, the amount and talk about his conversations with the contractor who submitted the concern with the bid process.

            I will give you my opinion on it and I will defer to counsel.  We have not adopted formal rules for this process, which leaves it up to staff to do the review of anyone’s complaint on a bid process.  We asked the engineer who prepared the bid specifications to look at the claim, talk to the person who filed it, see if there is any merit to it and report at tonight’s meeting.

            Mr. Rosenof stated it is a big spread.

            Ms. Ribotsky stated we had one of these on the city commission.  The reason for the big spread we had was interesting.  We had six bids come in.  They were all between $1.2 Million and $1.5 Million.  One came in at $800,000.  It turned out the reason was because the applicant owned a landfill near where the work was being done.  There may be a reason for this being lower.

            Mr. Petty stated Mr. McKune is familiar with most of the contractors capable of doing this work.  He has two contracts currently in the $6 Million range of this type of work in the City of Coral Springs he is overseeing. 

            Mr. Craven asked who is filing the complaint?

            Mr. McKune responded Arbor Tree and Land Company.  Whether or not they have a basis will be up to Mr. Doody and Arbor Tree and Land Company’s attorney.

            Ms. Ribotsky asked what is their basis for the complaint?

            Mr. McKune responded they are saying the low bidder did not strictly and literally adhere to the requirements and specifications.  They list things such as not having a copy of the general contractor’s license in the bid package.  They have a general contractor.  They have a license.  It was not in the package.  We are getting to the point where if you want to do a strict, literal, interpretation you will have one answer, which will be his attorney’s answer.  In my opinion, it is an informality.

            Ms. Ribotsky stated when you say one thing, like a general contractor’s license, I would look at it aside.  If there were six “one things” I would say they have a substantial complaint.  How many are there and what are they?

            Mr. Petty responded what we asked the engineer to review and opine on tonight is if this is a material or non material deviation submitted by the low bidder.  We can talk around it all we want about the quantity and etcetera, but we need to ask the engineer if it is material or non material.

            Mr. McKune stated in my opinion, everything in his complaint is non material.  There is one item, which is questionable to the Board.  Did the main items require the work be able to be done from the waterways because of the locations and the rights-of way?  They have done waterway work.  They have not done it to this great of an extent from a barge with big equipment on the barge. 

            Ms. Ribotsky stated I view it as material.

            Mr. McKune stated I understand, but they have worked from the water and they are prepared to plead their case with their experience.

            Mr. Rosenof asked is there a requirement for a payment and performance bond?

            Mr. McKune responded yes.

            Mr. Rosenof stated then I do not care if they have experience or not. 

            Ms. Ribotsky asked do you have a copy of this complaint?

            Mr. McKune responded yes.

            Ms. Ribotsky asked does it list the reasons on it?

            Mr. McKune responded yes.

            Mr. Rosenof stated if the surety is willing to post a bond so they can do what they say they are going to do, we are being subjective to say they cannot.

            Mr. Petty stated I agree.  This is why we asked for the performance criteria and this is why the engineer’s first reaction is to say these are non material deviations.  We need to ask counsel if he sees any exposure for this Board since we do not have adopted rules for handling this type of complaint.  It falls to general practices. 

            Mr. Rosenof stated I am looking at the spreadsheet.  Somebody wants six months and somebody wants two months.  Is there a reason why he is taking so long to do it?

            Mr. McKune responded it is the total amount of time, which will be allowed by NRCS.  He thinks he can get the job done within 90 days.

            Mr. Rosenof asked are there liquidated damages or anything you know of?

            Mr. McKune responded yes.

            Mr. Rosenof asked what are the liquidated damages?

            Mr. McKune responded I believe this one is $1,000 per day.

            Mr. Petty stated they are considerable.  This specification mirrors SWCD, which is a $3 Million plus contract currently ongoing and the CSID contract, which is $1.8 Million and is 90% complete.  These specifications were done under pressure after the hurricane in cooperation with NRCS and FEMA by Mr. McKune.  They are considered to be the best specifications out there for this type of work.

            Mr. Craven asked did the low bidder bid on any other projects?

            Mr. McKune responded yes.  He was the low bidder on another job in Coral Springs. 

            Mr. Doody responded this is the first I heard of this.  I have not seen any documents.  I am not aware of any complaints.  I can tell you the Florida Case Law recognizes a major versus a minor deviation.  With all due respect to the Board I am not prepared to give you any direction on this.

            Mr. Petty stated this matter happened yesterday and we were not able to bring it to his attention.  We were able to bring the conclusion of the discussions with the contractor from today’s conversation.

            Mr. Rosenof asked how long are the bids good for?

            Mr. McKune responded 90 days.

            Mr. Rosenof stated I would like counsel to review the complaint.  I would hate to wait another month, but I do not want to put the Board and homeowners in jeopardy should any of these complaints turn out to be material.  It is prudent to ask for counsel’s review and to bring it up at next month’s meeting.  Does anyone have any questions or comments?

            Ms. Ribotsky responded I request we get a copy of the complaint.

            Ms. Bertolami asked is there any other procedure such as a telephone conference call, which will bring us closer to two weeks rather than a month?

            Mr. Petty responded we can call a special meeting.

            Ms. Ribotsky stated I would rather have that.

            Mr. Rosenof asked how long will it take you to review this?

            Mr. Doody responded if I can get it tomorrow and review it over the weekend, I will be prepared to go next week.

            Mr. Rosenof stated with my experience in these matters, his complaint will probably have technical issues with it as well.

            Mr. Doody stated he is arguing the low bidder did not comply with the terms of the bid.  I have to determine if it is a major or minor deviation on part of the District.  I am not coming to a predetermined opinion at this point.

            Mr. Rosenof asked let us see if we can ask the manager to convene a special meeting as soon as possible after Mr. Doody’s review.  Do you need a motion to table it?

            Mr. Doody responded yes sir.

 

On MOTION by Ms. Bertolami seconded by Ms. Benckenstein with all in favor consideration of award of contract for canal clean up was tabled until Mr. Doody can present the Board with direction on the complaint made by Arbor Tree & Land, Inc. at a special meeting.

 

            Mr. Rosenof stated this item was tabled.  Do we need to do it to a certain date?

            Mr. Petty responded no sir.  We are not continuing the meeting.  You asked for a special meeting.

            The record will reflect Mr. Brewer joined the meeting.

 

EIGHTH ORDER OF BUSINESS                           Supervisor’s Requests

            There not being any, the next item followed.

 

NINTH ORDER OF BUSINESS                             Audience Comments

            There not being any, the next item followed.

 

TENTH ORDER OF BUSINESS                             Approval of Financials and Invoices

            Mr. Rosenof asked are there any questions or comments on the invoices?

            There not being any,

 

On MOTION by Ms. Benckenstein seconded by Ms. Bertolami with all in favor the financials and invoices were approved.

 

SEVENTH ORDER OF BUSINESS                        Presentations of Proposals for Management Services

            Mr. Doody asked are there any questions I can go over before you recess?

            Mr. Rosenof responded let us talk about procedural issues.  Remind us again on the timing.  How long do they have to do the presentations?

            Mr. Doody responded they can have a presentation of up to 20 minutes.  They then have 10 minutes for questions or comments.  You allocated 30 minutes for each presenter.

            Mr. Rosenof asked how many presenters do we have this evening?

            Mr. Doody responded we have five.  Other than this, I have no comments.  One entity contacted me to confirm.  I believe they are at 8:00 p.m.  I know your 6:00 p.m. schedule is here.  I sent them a letter telling them they could attend the meeting if they wanted.  If they are so inclined, they can attend the other presentations.  I respectfully request you do not ask them to leave, but you may ask them to give professional courtesy to the other presenters.  It is opened to anyone.  You do not have to take any action.  You are entertaining these presentations.  I will describe the meeting as a workshop, meaning you do not anticipate any action being taken.  They are just here for informational purposes.

            Mr. Rosenof asked if we take notes, are they public record?

            Mr. Doody responded yes.

            Mr. Petty stated this is off the subject, but there are extra people in the audience.

            Mr. Rosenof stated I did notice.

            Mr. Petty stated this is Ms. Larned, our Treasury Director for Severn Trent.  Behind her is Mr. Kisson, a financial advisor.  I brought them here in the case you did award contract, we arranged for a financing instrument to fund such a construction project.  Unless you want to talk to them tonight, I will bring them to the next meeting.  The secretary will stay for the record to take notes.  My intention is to leave during the other presentations.

 

On MOTION by Mr. Rosenof seconded by Ms. Bertolami with all in favor the meeting recessed at 5:40 p.m. to reconvene at 6:00 p.m.

 

            The recessed meeting reconvened at 6:00 p.m.

            The first presentation is from Wrathell, Hart, Hunt and Associates.

            Mr. Hart stated we became who we are in January of 2005 because we recognized the dynamics in the industry had a great deal of upheaval taking place with such consistency of performance in so many years, but some things changed.  We also recognized the existing number of Districts within the State of Florida were up to 275 and were going to multiply by a factor of at least doubling if not tripling over the next five to ten years.  We assessed whether or not there was room for an entry into the marketplace if in fact we had the kind of personnel, skill sets and commitment to be able to do the job. 

            The second thing we analyzed for over a six month period of time was the model of service delivery, which had been existing for a long time.  We found one of the things being brought up most of the time was dissatisfaction of service and not feeling completely serviced.  When someone was hiring the outside manager, there was a need for there to be confidence, personal relationship and the feeling you were getting the first and foremost attention.  You did not always have to wait until there was a crisis before you heard from them.  We found we needed to be a company dedicated to being proactive and more suggestive in how you should be managing the District or to improve the management of the District.

            We found this is the best definition of a true service oriented business and therefore, we needed to understand what kind of people we wanted to bring together who were going to be interacting with people like you.  I want to go to Mr. Wrathell because he was with Severn Trent for six or seven years.  He was tutored by the gentleman who was the father of this industry, Mr. Moyer.  He grew up through the process and has a tremendous background in the industry.  He has managed over 50 Districts in the State of Florida.  He was the City Manager of the City of Marathon.  He graduated from the University of Miami.  He left Severn Trent and was with Special District Services for a good period of time.  He then found there was an opportunity to get with Mr. Hunt and myself to create our company.  I want to talk to you about why we put this whole thing together more so than what I did before.

            My background is varied.  I had 25 years with Meryl Lynch.  I ran two major engineering firms.  I ran Keith & Schnars for approximately five and a half years as operating partner.  I have approximately 20 years worth of concurred public service, as a municipal elected official, a mayor for three terms and serving in the county commission for a couple of terms.  More importantly than all of this blended together, it provided me with an understanding as to when it came to districts, each district has its own interests; whether it is making sure the canals are properly cleaned up and more importantly making sure there are reserve funds set up so you do not find yourself in an assessment crisis.  By bringing Mr. Wrathell together with me we found we had a few people with both experiential backgrounds as far as CDD management was concerned and someone like me with a financial background as well as an engineering background mixed with public service. 

            As a third leg of this partnership, with a background in his own investment banking business, Mr. Hunt has been the president and owner of a company called Gardner Michael.  It was one of the few consistent surviving investment banking firms and is headquartered in the State of Florida.  Not only did Mr. Hunt come to us with $15 Billion worth of municipal underwriting, but his financial background is extraordinary.  We felt we could bring his mix to the table, bring my skill sets to the table and then have the company managed by someone with real life experience and a reputation of great professionalism.  We thought we could bring to the community’s interest a company, which could serve its means and do it well.

            I want to close by saying we have dedicated ourselves as a company to client service as our first provision of importance.  We will never say anything against anyone else because there are very good providers of service in this business.  We want to make sure you know if we provide somebody we say is going to be here to do the job, they will be here to do the job.  If we tell you we are going to give financial accounting and other information on time, it will get there on time and it will be correct.  We went from zero districts in January 2005 to 24 districts now throughout the State of Florida and 14 more in formation.  We have offices in Delray Beach, Fort Myers, Jacksonville and in Seacrest.  Our headquarters in Delray Beach is moving to Coconut Creek within the next couple of months.  We feel comfortable we can do the job, but we want to make sure you understand our commitment to personal service and our commitment to being there for you before you have to get on the phone and start screaming for us. 

            I would like to introduce to you Mr. Szymonowicz and Ms. Dellolio.  Mr. Szymonowicz will bring you through some of the specifics of the presentation and then we will open it up to questions and answers.

            Mr. Szymonowicz stated good evening.  I am the director of financial services for Wrathell, Hart, Hunt and Associates.  My official background is in economics.  I have a Masters Degree from Florida Atlantic University in International Economics.  Like many of my colleagues, I was previously employed by Severn Trent Services and previous to that by Gary Moyer, PA.  My expertise is in the areas of special assessments, budgeting, including municipal budgeting and finance.  I have been the budget director for the City of Weston for the last four years.  I have generated and supervised a budget of roughly $100 Million annually.  I participated in issuances of close to a half billion dollars in government bonds, including producing, writing and supervising special assessment methodology reports and special assessment rolls.

            Ms. Dellolio stated I am a graduate of the University of Miami.  I handle the accounting and financing side of everything.  I handle the financials, budgets, I oversee the audits and I work with the auditor.  I file all of the state reports and work with the field guys.  I do the pay roll and things like it.  I have been working with CDDs for seven to eight years.  I started out on the banking side.  I worked with Wachovia for five years administrating government funds, trust funds and investments.  It was an easy transition to the accounting side.

            Mr. Szymonowicz stated if we are so fortunate to be chosen, the two of us will be the people you will be dealing with on a daily basis with regards to the financial side of the District’s operations.  As required by the stipulations of the RFP, I was involved with the initial meeting with your District Engineer and walked some of the fields as well as canals of the District to familiarize myself and get a grip on the reality of the District. 

            In talking with the District Engineer and upon doing some research, I found this District has been in business for over 40 years.  It was originally created in 1961 to provide drainage for some residential portions as they existed at the time.  The District has since expanded as the agricultural portion of this area has decreased in size and it essentially provides drainage to the eastern portion of the City of Parkland and northeastern portion of the City of Coral Springs. 

            The District encompasses approximately 2,200 acres and it is currently governed by Florida Statute Chapter 2001-320, which mandates representatives of the two municipalities be present on the Board.  The primary services provided by the District are water control, aquatic weed control, ground water recharge canal rights-of-way, swale mowing, cleaning of canals and culvert inspection services.  The District utilizes two of its own employees to provide these services and shares a field supervisor as well as other resources with CSID. 

            The water control system is gravity based and consists of a major canal, which takes water from south to north into the Hillsboro Canal, culverts and mechanical gates.  The system conveys water along two main accesses from the south to the north and it includes approximately 22 major culverts and other structures.  During periods of high canal and groundwater levels, the system discharges excess water into the Hillsboro Canal and alternatively during periods of low water level there is a groundwater recharge system taking the water from the Cocomar Water Control District, which is pumped from the ground under pressure and then there is a gravity system conveying the water into this District.

            The primary maintenance responsibility is canal maintenance.  This includes aquatic weed control as well as right-of-way cleaning and mowing.  The majority of these services are provided by District staff and supervised by the field supervisor.  There is periodic mowing of swales in the back of the homes in the Pine Tree Estate area of the District.  Regarding this particular part of the service, I know the District had some problems as some of the residents have not lived up to their responsibilities.  They either destroyed the swales or not maintained them to the standards the District wanted them to.  Although these areas are not directly the responsibility of the District, there is a chance to work with the municipalities to try to use some of the municipal powers, specifically code enforcement, to make sure the swales are maintained by the rightful owners.  To provide these services the District primarily relies on its two employees.  For some other services such as inspection of culverts and some of the underwater sections of the system, it uses third party vendors. 

            The management model we are proposing, should we be accepted, is to provide financial services through me.  The treasury and assessment roll services will be provided by Ms. Dellolio and two other staff members.  Administrative services will be provided by two staff members under the direction of Mr. Wrathell as the District Manager, in cooperation with the existing District staff supervised by the field supervisor, which is shared with CSID.  We believe the sharing of resources is a prudent approach, which the District has wisely chosen.  We will recommend the sharing of resources be continued.  We feel there is considerable knowledge in the two personnel and in the supervisors, who know the daily operations of the District, to know how to best structure and guide the system to its intended use.  We will work effortlessly with them to make sure their needs are supported without being overbearing in trying to change the direction of the District too quickly.

            The particular services we recommend in the management section will be to attend all the meetings of the Board of Supervisors and to provide dialogue with the Board on all issues relating to the District.  We will identify policies and analyze their administrative as well as financial impact on the District.  We will prepare the annual budget and implement it throughout the year.  We will prepare District contracts as required in cooperation with the District Attorney.  We will ensure compliance of statutes and to record all meetings.  We will coordinate contract administration for the third party vendors.

            On the financial side we will provide this service in house.  We will assist the District Manager in preparing the budget.  We will record financial transactions.  We will make sure the invoices are paid on time.  We will prepare assessment rolls, which at this time are on a per acre basis.  We will ensure District funds are properly invested in accordance with District investment guidelines.  We will coordinate with the independent auditors.

            Mr. Rosenof stated I do not want to cut you off, but we want to leave some time for questions and answers.  Can we wrap this up?

            Mr. Szymonowicz responded this is the last slide.

            Mr. Rosenof stated I know you started late, but I do not want to get too off track.

            Mr. Szymonowicz stated absolutely.  There will be some administrative duties, which will consist of preparation of meeting agendas, advertising notices, transcribing minutes, serving as a steward of public records and any other general administrative services as required.  If I may, I would like to briefly tell you what we feel are the greatest challenges to the District.  It is not so much in the administrative set up of the District, but it is in dealing with the aftermath of the storm.  We feel an important part of your roles as Supervisors is looking into the needs of the District.  We will recommend you devote sufficient financial resources for clean up of damages and you devote financial resources for mitigation for future damages, which is something the current District Manager is recommending.

            Ms. Ribotsky stated you are obviously a newcomer to the field.  Explain what you learned over the last year with your 24 transitions, what you failed at and how you think you can do things better.

            Mr. Hart stated the first 11 Districts we acquired transitioned over from an existing provider.  The breakage we had was in the first 60 to 90 days.  We wanted to make sure all of the records were transitioned over.  Our first bumps were because nine transitioned all at once in the first 60 to 90 days.  Of the 24 districts we have, 17 of those have transitioned from an existing provider and seven were new districts.  As I said in my opening remarks, we have 14 more in formation.  We learned in the first three to four months on how to do this right.  We created a system, which is simple.  We work co-operatively with whatever districts are transitioning to us to make sure all of the records are there and we make an assessment to make sure we have everything we need. 

            Mr. Rosenof asked are your offices moving to Coconut Creek?

            Mr. Hart responded that is correct.

            Mr. Rosenof asked do you see a need for having the offices for this District within Coconut Creek or do you need office space elsewhere?

            Mr. Hart responded they will be in Coconut Creek.  We will be locating our office within five minutes of the central part of this District.

            Mr. Rosenof asked what resources can we share with your other districts similar to how we do with CSID?

            Mr. Szymonowicz responded I know you share some hardware and you share Mr. Frederick with CSID.  Most of our other clients are located on the west coast of Florida.  It will be difficult for personnel to commute.  We have a gentleman on the west coast of Florida who has been in the business of district operations from water management to landscaping, security, park and recreation and other things as they became acquired by these communities.  He will be available to counsel.  It is something we did not specifically mention because we did not want to give you the impression he will be definitely available on a large scale basis; however, we do have this person available should our primary manager have a question.  He has been dealing with issues from a microscopic point dealing with contractors and supervising them.  He has a great deal of knowledge. 

            As we mentioned, we feel the sharing of resources with CSID is a prudent approach.  We have similar arrangements in many of our districts in the west coast.  We have shared employees.  We have shared contractors.  We have shared facilities.  We know how to structure interlocal agreements in a way for both districts to utilize resources in a way they will not over bill their resources.  They are not building towards the maximum point, but they are anticipating what will be the most likely level of services utilized and acquire services in a way so they can provide services at a reasonable cost to the residents. 

            Ms. Ribotsky stated I am looking at your list of references and it is interesting that you are moving from Delray Beach in Palm Beach County to Broward County, yet none of your clients are in Palm Beach County or Broward County.  They all seem to be based outside of South Florida and in the west coast.  Can you elaborate on this?  Are you currently bidding on work here?  Do you intend to grow here?

            Mr. Hart responded we have grown out of our headquarters’ legitimate use of size.  We need to find more space.  We have a field operation in Fort Myers.  The gentleman Mr. Szymonowicz was just referring to is Mr. Adams and he has 17 years experience in this business all the way up to managing districts.  We decided we want our headquarters based in Broward County and it is a conscious management decision.  It does not mean we will not be significantly managing our business in the panhandle.  We have a couple more districts in formation in St. Joe County.  We have the same situation going on in Jacksonville.  We had to make a decision of where we could pull more resources together to have a more effective headquarter.  We felt Broward County was home for us and that is how we made the decision. 

            Mr. Rosenof stated if there are no other questions, we thank you very much. 

            The second presentation is from New Community Strategies.

            Mr. Rosenof stated before we start, let us do a quick introduction so you know who is here. 

            The Board and Ms. Rugg introduced themselves.

            Mr. Rosenbaum stated we met with Mr. Craven so we are familiar with your District.  We do quite a few districts.  With me is Mr. Mearns.  He is with our company and was the city manager for his county.  We worked together for approximately 19 years.  The third member of our team was unable to be here.  He had a family emergency.  His name is Mr. Wallace.  He is our finance person.  He is the Finance Director in Davie and he has also worked with us for many years.  Mr. Wallace operates the company on a daily basis in addition to doing many other things.  He is our finance person and his specialties in the company are like this. 

            As you can tell we know everyone else in the business as they come in because we all cross paths along the way.  It is nice to see this much interest.  I will talk to you about my company and how it is different.  We all take different approaches and each district is different.  Mr. Mearns manages a district, which not only does water control, but does recreation and a host of other things.  He manages the Indian Trail District in the West Palm Beach area, more popularly known as the Acreage area.  Each district is different and all of our clients are different.  Mr. Mearns will elaborate on water control and drainage functions.

            I will start out by telling you about our company.  We have been in business for approximately 10 years.  We manage other similar districts, including the Belmont Lakes CDD and the Coral Bay CDD.  We do financial analysis and management for the finance departments of the City of Bal Harbour, Miami Gardens and West Park.  We have a contract finance department.  We provide financial support for the City of Lauderdale Lakes and their finance department.  We have a number of other activities.  We run the redevelopment agency in Margate.  You will see Margate change a great deal within the next year because redevelopment is going to happen.  It is one of our major projects. 

            We have 12 full-time employees and 6 part-time employees.  We are adding people as functions expand.  We also manage a couple of HOAs.  It is not our core business.  We do planning work.  We have a full-time grant writer on staff.  If this arrangement goes forward, the grant writing services will be available to the District.  We have gotten a few grants related in the water management area.  We have gotten beautification grants in the districts we manage in Broward County.  The grant writing services are part of our overall services. 

            We also do municipal planning work and support work for the City of Margate and nine other cities including Dania and Coconut Creek.  In Coconut Creek we are looking at what type of development district they are going to use for their new entity.  They want to create a municipal center.  Every city in the world is creating a municipal center.  We are identifying the type of special district, which should be used in the City of Coconut Creek. 

            Our staff has been around Broward County for a long time.  We know the turf well.  We know the politics well, but most of all there is our expertise in special districts and our expertise in communities having certain values as well as character.  Each district is important and has a degree of identity or mission they would like to preserve.  Having spent many years in Davie, we worked together in Davie for 14 years as a unit.  We did the open space program.  We did a great deal of buildings in Davie’s infrastructure.  We did a great deal to preserve Davie’s character.  Some of it is disappearing today, but 15 years ago we did the $10 Million open space bond issue.  A great deal of what you see is a result of our planning and our efforts.  We are proud of it.  We move the districts’ missions along.  We realize every district has different priorities and we adjust our management plan to deal with the district’s priority. 

            When I left city management 12 years ago, after 25 years in it, I became a college professor.  A college professor’s compensation is not good.  I started this company and we started special districts.  We did Belmont Lakes CDD in Davie.  We did a great deal of work in Arvida and with the Weston community.  We did a great deal of work, which helped Weston come along with its identity as a contract city.  Mr. Mearns and I took the officials from the taxing district as well as the Arvida people to a city in Volusia County called DeBary.  They got the idea to do a contract city, which is what you see in Weston today.  The operation Mr. Flint runs is something we created in the 1990’s with the concept of a contract city.

             As we went along, we added entities.  Mr. Wallace joined us approximately four years ago when he retired from Davie.  We started to do a great deal of financial work and provide financial services to cities.  We started it out with some bond issues as well as water and sewer issues.  We provided a level of service the city could not get on its own.  If you look at the City of West Park, they cannot afford to have their own financing department.  The City of Miami Gardens is a success story after two and a half years of working there.  There are approximately 110,000 people in the City of Miami Gardens.  It is not a small city, but it is a new city.  Starting up a new city is a challenging financial enterprise.  Not only from the point of view of the availability of revenue, but trying to build a financial process.

            We added the Margate redevelopment and earlier this year we added the Indian Trail Improvement District, which is a Chapter 298 improvement district.  We have an office in Davie