MINUTES OF MEETING

SUNSHINE WATER CONTROL DISTRICT

 

            The regular meeting of the Board of Supervisors of the Sunshine Water Control District was held on Wednesday, September 12, 2007 at 6:30 p.m. in the Commission Chambers at Coral Springs City Hall, 9551 West Sample Road, Coral Springs, Florida.

 

            Present and constituting a quorum were:

 

            Dave Hulett                                                Vice President

            Philip Sobers                                              Secretary

 

            Also present were:

 

            Pamela Rower                                            Severn Trent Services

            Bruce Cranmer                                           Attorney

            Cedo DaSilva                                             CH2M-Hill

            Jane Early                                                   CH2M-Hill

            Pamela Rower                                            Severn Trent Services

            Brenda Schurz                                            Severn Trent Services

            Cory Selchan                                              Field Superintendent

            John McKune                                             McKune & Associates

            Rich Michaud                                             City of Coral Springs Director of Public Works

            Craig Wrathell                                            Wrathell, Hart, Hunt and Associates

            Michael Szymonowicz                                Wrathell, Hart, Hunt and Associates

 

FIRST ORDER OF BUSINESS                         Roll Call

Ms. Rower called the meeting to order and called the roll.  It was noted for the record that Ms. Macomber was absent from the meeting.

Mr. Hulett stated Ms. Rower is filling in for Mr. Goscicki on behalf of Severn Trent Services.  I want to thank Ms. Rower for coming.  We appreciate it.

 

SECOND ORDER OF BUSINESS                    Approval of the Minutes of the July 26, 2007 Special Meeting and August 8, 2007 Regular Meeting

 

            Ms. Rower stated each Board member received a copy of the minutes of the July 26, 2007 special meeting and August 8, 2007 regular meeting and requested any additions, corrections or deletions.

            Mr. Hulett stated on page 27, where I agreed with Mr. Sobers, I was talking about infrastructure rather than landscaping.  On page 28, Mr. Sobers said Mr. Wrathell was nervous when asked the question about how he commutes.  We were not talking about Mr. Wrathell.  It was related to the discussion about the local people versus out of town people. 

            Mr. Sobers stated I was talking about how Mr. Wrathell commutes within the District.

            Ms. Rower stated he did get sidetracked and discussed other issues.

            Mr. Hulett stated on page 13 of the August 8, 2007 minutes, the word “fit” should be “fix”.

On MOTION by Mr. Sobers seconded by Mr. Hulett with all in favor the minutes of the July 26, 2007 special meeting and August 8, 2007 regular meeting were approved as amended.

 

 

THIRD ORDER OF BUSINESS                       Acceptance of Audit for Fiscal Year 2006

 

            Mr. Hulett stated I have not been able to review the audit in any great detail.  I called Mr. Black at Goldstein, Zugman, Weinstein & Poole, LLC. to see if they planned to present the audit.  He said he was not good at making presentations and it requires additional work on his behalf.  Their service agreement does not call for a presentation of the audit by them and in fact, the District would have incurred an additional fee.  Therefore, I decided not to have them make a presentation.

            Ms. Rower stated we want everyone to understand, the purpose of an audit is to make sure the financial statements in all material respects, reflect the financial position of the District.  Their job is to do substantial testing of different transactions to verify the records of the District are presented fairly and in accordance with generally accepted accounting principles and GASB principles.  The reason the audit fee was higher for next year is because they were required to perform an A-133 audit due to the fact you received Federal funds in excess of $500,000.  This required the Auditor to file additional forms with the Federal Government.  I wanted to bring this to your attention as the fees will decrease next year to the standard fee charged in the past.  Pages four and five highlight what happened during the year.  The majority of the audit relates to expenses and reimbursements due to Hurricane Wilma.  There was nothing unusual in the audit.  This is a standard audit and there were no negative findings.  Unless there is a specific question, I request a motion from the Board to accept the audit.  Once the audit is accepted, it is sent to the Auditor General in the State of Florida to be filed.

            Mr. Hulett stated this is the audit for the fiscal year ending September of 2006.

            Ms. Rower stated correct.  This audit was delayed to the additional testing requirements for A-133, which caused additional work.

            Mr. Hulett stated on page 24, the Auditor mentioned the various forms of risk the District can be faced with.  The District carries commercial insurance to handle various losses, including our Errors and Omissions Insurance.  For the next meeting, I want to take a look at the insurance policies we are currently carrying in order to see what our coverages are.  Has Mr. Wrathell had a chance to look at the audit?

            Mr. Wrathell responded I received a copy of the audit but had not had a chance to review it in detail.  However, in our review of the audit, we look at a couple of key components.  On page 29 is the Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters where the Auditor looks at the internal control procedures in place to insure the financial integrity of the District.  In the last paragraph, the Auditor states “We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses”.  This is a positive statement.  The Auditor caveats their statement by saying they do not give you this opinion but they kind of do.  You want to see this statement as it means your internal control procedure is perfect.  This prevents the opportunity for theft and embezzlement.  For example, you do not allow your Accounts Receivable person, Accounts Payable person and the person preparing your financial statements to be the same person because it gives them too much power and control.  In our office and I am sure at Severn Trent Services, we separate those functions.  You should expect to see this as opposed to being surprised to see this. 

            The next page talks about compliance and other matters.  In the paragraph at the top of the page, the Auditor states last sentence “The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards”.  This is also a positive statement.  On page 31 is the Auditor’s Report on Compliance With Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133.  This is what Ms. Rower referred to as far as dealing with Federal funds.  On the bottom of page 31, the opinion from the Auditor is “Sunshine Water Control District complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal program for the year ended September 30, 2006”.  This means the District handled the administration of the Federal funds in a proper fashion and the Auditor made a notation.  The same with the Internal Control Over Compliance on page 32, relating to the Federal funds where the Auditor stated “We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses”.  Again, those Federal funds were handled properly.  The last letter is the Auditors’ Management Letter.  Typically if there is an issue the Auditor wants you to address prior to the next audit, they will make a notation in this letter. 

            Mr. Sobers stated it states they noted no deteriorating financial condition.

            Mr. Wrathell stated this is an important statement because the Auditor General receives a copy of this audit and looks to see if the Auditor notes a deteriorating financial condition.  We have a few developer funded districts where they had a surplus from one year to the next and the Auditor made a notation saying they are concerned there is a deteriorating financial condition because they used the previous year’s surplus.  We informed the Auditor General everything was okay and this was a case where no surplus funds were used.  I do not see anything in this report expressing any concern.

            Mr. Hulett stated the third paragraph says “As required by the Rules of the Auditor General, a statement must be included as to whether or not the local government entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes relating to financial emergencies.  In connection with our audit, we determined that the Sunshine Water Control District did not meet any of the conditions described in Section 218.503(1), Florida Statutes”.  I assume the conditions described are negative conditions.

            Ms. Rower stated those conditions are what they consider financial emergencies.  For example, if you had expenditures in excess of revenues for a period of two years, those are considered financial emergencies.  We have to make a notation if we went over budget.  There is a list of requirements in the statute of what they consider to be financial emergencies and we have not met any of those.

            Mr. Wrathell stated the Auditor presented the Management Letter in a different format than I am accustomed to but it says on the bottom of page 33, “The Rules of the General (section 10.554(1)(h)3) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures and internal controls.”  From what I have read, I am not seeing the details at this point to make a comment on the need for it.  Overall we feel confident about this audit.  I did not point out these items because they are typical items in the audit.

            Mr. Hulett stated it is good to know these details.

 

On MOTION by Mr. Sobers seconded by Mr. Hulett with all in favor the audit for fiscal year 2006 prepared by Goldstein, Zugman, Weinstein & Poole, LLC was accepted.

 

 

FOURTH ORDER OF BUSINESS                    Staff Reports

 

A.        Attorney

            Mr. Cranmer stated I received four petitions from the city for changes of land use plans involving the fire station area.  I faxed them to CH2M-Hill and Mr. Pete Colussy informed me he did not see anything unusual in any of these petitions and thought there was no need for us to do anything. 

i.       Sample Resolution Setting Forth the Policy of the Board with Regard to the Support and Legal Defense of the Board and Staff

            We discussed at an earlier meeting for the Board to have a policy for past and present Board members involved in nuisance litigation to be provided counsel.  Anyone with $240 can file a lawsuit, even a frivolous one.  Mr. Wrathell and I prepared a resolution indicating they will provide representation in the event you are involved, so long as you are not acting maliciously, intentionally or fraudulently.  There is also a provision regarding civil rights lawsuits.  It is possible some time in the past the Board may have adopted such a resolution but rather than spending many hours researching our archives, which has proven a problem in the past, I felt it wise to re-state this policy.  Otherwise, no one will want to serve or join your staff.  The District has sovereign immunity so the Board members cannot be sued but they have limits.  However, there are many people out there who will likely spend $240 to make your life miserable and judges do not like to dismiss suits early.  They like to hear everything out, which costs you money.  Therefore, we felt we should codify a policy for counsel to be provided for you in the event of lawsuits so you can remain on the Board and we do not discourage future constituents from serving.

            Mr. Hulett asked assuming we have errors and omissions coverage in our commercial policy through the Florida League of Cities, which provides for this language, how does this work together with this resolution?

            Mr. Wrathell responded this resolution will clarify this policy for the insurance company.  I had experiences in the past where contractors working for the city never had the city protecting them in case there were ever any civil threats of lawsuits preventing them from doing their job.  The insurance company said even though the contractor functions as your building official, because the city never took any action to protect or defend you, they argued “You are a contractor and therefore we are not going to honor this from a policy perspective”.  Since a Board member is different than a contractor, Mr. Cranmer can say “Within reason we do some of this already” but the reality is this resolution puts this on the record and we can say to the insurance company, “This is the policy we implemented to protect these Board members in their position to insure they are not a threat to lawsuits”.  To a great extent, it makes sure if a Board member is sued individually, the insurance company does not try to back out by saying “We are not going to defend you as you are being sued individually and we will only defend the District”. 

            Mr. Cranmer stated you are closing a loophole.  In addition, if the management company is joined in the action and the insurance coverage has been cancelled, we may have a dispute with them. 

            Mr. Hulett stated I want to look at our commercial policy to see what the language is in terms of your position.

            Mr. Wrathell stated the way our policy is drafted, if the District and the Board had an issue with our company or any other management company who had an agreement in place like ours; we are not applicable to any of this.  It would be more associated with if someone wanted to sue Mr. Selchan or us from doing something proper we needed to do.  For example, if there was a health and safety issue along one of the lake banks and we needed to do something that was somehow going to hurt someone.  If someone said, “I will sue you” and threaten you with a lawsuit to prevent you from doing something we need to do, this will protect the Board.  Obviously if Mr. Selchan is doing something without this Board’s authority, he is responsible for his own exposure but if the Board tells Mr. Selchan to address an issue and he addressed the issue but a resident tells him they do not want him on their property and threatens to sue him, the District will protect him.  Insurance companies will try to find ways to get out of paying if they can. 

            My understanding of this policy is if we do something illegal or not within the confines of performing our responsibilities, this is an entirely separate issue.  When you perform the functions of your job as directed by the District, this will protect you.  If you are doing illegal activities such as selling drugs on company time by Taravella High School, the District is not going to stand behind you.  You are on your own.

            Mr. Cranmer asked does this policy cover car accidents?

            Mr. Wrathell responded yes.

 

On MOTION by Mr. Sobers seconded by Mr. Hulett with all in favor Resolution 2007-10 Setting Forth the Policy of the Board of Supervisors with Regard to the Support and Legal Defense of the Board of Supervisors and District Staff was adopted.

 

            Mr. Hulett asked do we need to take formal action in terms of the adoption of the Wrathell contract?  Based on the minutes of the last meeting, we approved the contract pending some amendments.  It was supposed to be signed by the President.

            Mr. Cranmer responded you directed me to work out the fine points, which have been determined.  However, we should have the Board approve the Agreement for Services between the Sunshine WCD and Wrathell, Hart, Hunt & Associates commencing on October 1st.

 

On MOTION by Mr. Sobers seconded by Mr. Hulett with all in favor the Agreement for Services between the Sunshine WCD and Wrathell, Hart, Hunt & Associates commencing on October 1st was approved.

 

            August 20, 2007 Meeting with City of Coral Springs

 

            Mr. Wrathell stated on August 20th, we met with the City of Coral Springs as directed by the Board at the last meeting.  We discussed a couple of items, one of which was enhanced coordination with the city during emergency events and utilization of their communication system.  The meeting started at 2 p.m. and was held at Coral Springs City Hall.  The attendees were the City Manager, Michael Levinson; the Assistant City Manager; Director of Public Works; a Captain with the Coral Springs Police Force and Director of Communications and Marketing.  Representing the District was Mr. Hulett.  Mr. Hart and I attended this meeting with Mr. Hulett and Mr. Selchan. 

            One of the first items we discussed, which both sides informally agreed on was for the District to designate Emergency Management Liaisons to work with the city during storm events and coordinate issues applying to both the District and the city.  A large portion of the city’s emergency management component resides within the boundaries of the District, so obviously their main focal point in dealing with emergency management issues is here.  One of their concerns is to make sure the drainage is working and coordinating with the Board.  As part of this process, they recommended appointing up to three individuals to serve as a liaison.  We felt it made sense to designate Mr. Selchan as a liaison since he is working out in the field.  We talked to them about giving us one of their handheld radios so we will be able to participate in communications back and forth with the city.  As we learned through Hurricane Wilma and other storm events, cell phone communications go down because many cell towers are damaged during the storm and many times we lose power.  With the absence of cell phone communication and telephone lines going down, you do not have a method of communication and usually there is a delay of several days before you can act.  We felt it was important for us to have access to this communication system. 

            Obviously we are in the middle of our hurricane season and there are not many processes or procedures in place for the city and District to have any formal relationship; whether by a formal Mutual Aid Agreement or even a mutual understanding between our two entities.  This is a functional perspective of us coordinating with them.  Since we are coordinating and cooperating with each other, some reimbursement may be available as well as other financial implications.  If the city helps us, obviously they want to be reimbursed and in instances where we are helping the city, we can be reimbursed.  Formalizing this relationship ties those needs together to insure reimbursement from the Federal government.  We are definitely looking at three individuals to serve as Emergency Management Liaisons.  Usually the Chairperson or a Board member serves in this capacity.  In many local governments, usually the Mayor or Board members will become involved as well as the District Manager.  I cannot make a decision at this time but I would like to be considered. 

            The second item we discussed was our participation the Code Red System.  This is an automated system, which activates when emergency events occur and emits a recorded message.  This message is currently sent out to 70% of businesses and residents.  One issue we have to work out is having this system available to the residents of the District.  This is something we will have to figure out in the future if the District has the desire to send out a message prior to a storm event.  Obviously this is a valuable service.

            The third item is something most districts do not engage in but I feel is a good idea, which is hiring a contractor to handle the post hurricane clean up.  The City of Coral Springs has a contract with the firm of Phillips and Jordan for this purpose.  There are a handful of companies who take a leadership role when a storm event occurs by bringing in all of their heavy equipment to clear the roads and remove the debris in order to get the city operating as quickly as possible.  Once they get through the initial stages, they will handle the disposal of the debris.  As part of their contract, they are supposed to measure the debris they bring in because they are paid based on the amount of debris they clear.  There is typically a spotter who makes sure they measure only the debris attributable to you.  In the process, they will provide the data needed from a cost perspective because FEMA will reimburse a percentage of your cost.  These firms are extremely professional.  It is my understanding; Phillips & Jordan did an excellent job during the last storm event and has an excellent reputation. 

            Another issue we talked about was having the same contractor as the city as there will be quite a few economies of scale.  One of the issues of concern was you have requirements to bring in a contractor like this.  Other than a nominal fee such as $10 to purchase the contract, they only compensated when the event happens and come out to deal with the event.  However, you are still required to bid it out.  I clearly do not know the answer at this point from a legal perspective but it is important for Mr. Cranmer to feel comfortable with this.  I suggest piggybacking off of the city’s contract, which was already bid out so we do not have to bid it out.  This is common for a number of reasons, particularly if you are looking to save money.  We have to figure out if we need to work with the city through Phillips & Jordan or go through a formal bid process.  Mr. Cranmer will do the research.  I feel this is something we definitely need to look into so we have something in place.

            The fourth item is to utilize the city’s emergency phone bank system, which becomes available when a storm event concludes.  One of the issues our firm had and I am sure Severn Trent Services had, was when Hurricane Wilma hit our power went down.  The power in our offices was out for almost two weeks.  This is the largest municipality, which has a number of resources such as having a good Emergency Operations Center.  Their phone bank system operates immediately under generators or whatever is necessary.  We talked about the city and the District trying to develop a way to use this phone bank system for Sunshine as well as drainage and flooding related calls.  After the event, until we are able to get personnel over to the city phone bank and get our system online, the city will provide an option on their phone bank system for people to call in Sunshine WCD or drainage related issues.  They will actually create a separate line routing us to city employees who will answer the calls and take notes for us until we are able to either get personnel there to start answering phones on behalf of the District and/or our office becomes functional.  I thought this was a fantastic idea so our constituents in the Sunshine WCD can be included.

            The fifth item was for the city to assist the District during storm events by providing repair personnel and fuel supplies.  Mr. Selchan has staff who knows how to prepare for storm events but if we have any issues, the city will offer their people to assist us.  Maybe in certain instances, we can help them with certain issues.  We can be more aligned with ultimately some form of agreement where we cooperatively work together by lending resources back and forth to each other.  This may lead to us reimbursing them or vice versa.

            The sixth item is partnering with the city in the Comprehensive Emergency Management Plan, which the liaison can participate in.  There are criteria, which the Department of Homeland Security developed along with a training and certification program, which the Emergency Management Liaisons for the District will have to participate in. 

            We talked about commemorating a relationship between the city and the District through a Statewide Mutual Aid Agreement.  Most local governments throughout the state participate in the Statewide Mutual Aid Program in order to request assistance from other local governments during an emergency event.  Some larger municipalities like the City of Coral Springs; are able to lend manpower or equipment, which we are unable to get from a contractor as quickly.  In order to get their assistance, we will have to commemorate the relationship between the city and the District in the form a Statewide Mutual Aid Agreement.  We asked Severn Trent Services to look in their records for any such agreement but they could not find any such agreement in place.  Therefore, we request the Board approve the Statement Mutual Aid Agreement.  This is a conservative approach but it is my recommendation the District participate in this program.  To give you some comfort, we present this agreement to all of the new districts we create.  I particularly like it in the sense we are usually the recipient versus the ones giving the help.  It is nothing but a benefit to the District.

            Discussed on the last page of the minutes is the utilization of city established communication systems and resources.  The city has a television station on channel 25, an emergency radio station, a website and a magazine distributed to all residents of Coral Springs.  In the past, I tried different ways of communicating with the residents and to be honest, many of them get frustrated because they may not watch Channel 25 as much as you think they do.  We spoke to Mr. Kevin Knutson, the Director of Communications with the City and asked him which form of communication was most effective to the city.  He said the magazine was extremely effective.  The city offered having a section of the magazine; about four pages, dedicated solely to Sunshine.  This will give us our own private authorship where we can place what we want and give us our own identity and will provide a nice separation with the city.  It will show we are working with the city and at the same time, we are our own separate and distinct entity.  The four pages in this magazine will be a great form of communication.  Most people do not know what the Sunshine WCD is all about and this gives us a great opportunity to introduce them to the District and get them up to speed.  This also gives us an opportunity to start implementing programs to help people understand.  By doing these things, you will be better protected than ever before. 

            The last item is the city offered to have their code enforcement work with us in dealing with the residents so our guys can properly maintain the canal banks and cut down trees.  Clearly our staff is not trained to deal with these situations.  From a liability perspective, we do not want our people out there dealing with hostile situations.

            Overall, I know there has been some history with the city and concerns with the city taking over the District and having the legislation to do so.  Ultimately the message conveyed by the City Manager, Mr. Levinson was “If we are able to work together and are comfortable and confident the issues are being addressed and will not impact the city, we have no desire to take over the District.  We are able to work together with you in an amicable fashion”.  This meeting was a great first step.  I am happy to answer any questions.  I consider this to be a work in progress in trying to develop a future relationship with the city.  Because we are in the middle of hurricane season, it will be a good sign of faith to the city for the Board to approve a form of the Statewide Mutual Aid Agreement.  It communicates we are working together with the City of Coral Springs and we recognize there are certain processes we will learn together.  Over the next few months, as government tends to move more slowly, we can work on developing the Statewide Mutual Aid Agreement even further.  There are potential opportunities to work together.  It is my recommendation for the Board to approve the form as presented.

            Mr. Hulett stated the sense I got from the city was they were anxious to work in a cooperative effort with us.  The reason for this is all of the major city infrastructure is located within the Sunshine WCD.  Their management office, police department, fire department and City Hall are here and they are interested in having a degree of comfort with us.  I was pleased by this meeting and felt this was a useful meeting.  Perhaps we can designate Mr. Wrathell and Mr. Selchan to serve as Emergency Management Liaisons on an interim basis for the District.  Should we have a storm event, it can be made known to the city; these individuals will be working with the city.  We are probably not going to be able to move forward rapidly with a formal agreement.

 

On MOTION by Mr. Sobers seconded by Mr. Hulett with all in favor Mr. Wrathell and Mr. Selchan were designed as Emergency Management Liaisons to work with the city on an interim basis.

 

            Mr. Selchan stated the city already extended the courtesy to me and staff to tour their facility.

            Mr. Sobers asked at what point will you receive communication?

            Mr. Selchan responded as a storm approaches the area, we will have meetings to coordinate effects with city staff and public works so as the storm gets closer and more imminent, everyone steps up.

            Mr. Hulett asked did you check into the issue of contracting with Phillips & Jordan to see if it is possible for us to piggyback with the city or go out for bids?

            Mr. Cranmer responded I researched the statute last year.  We cannot piggyback the city, however, we can go through the bidding process and structure the bid based on the city’s bid.  You can probably use the bidding process to get the result you want.  We are not required to go out for bids.  The city has priorities they will side with the city. 

            Mr. McKune stated usually the biggest client gets serviced first.  Interestingly enough, one of the positives is you know Phillips & Jordan did a good job with the city.  The fact of the matter is, the city is getting the service first over us; however, all of their equipment is going to be in Sunshine.  Therefore, it will be more cost effective to deal with Sunshine issues in conjunction with the city.  For example, if they had a contract with Tamarac and we had an agreement with them as well, they will take care of Tamarac before us because they are larger than us.  Mr. Cranmer’s point is well taken. 

            Mr. Cranmer stated you can deal with this by informing them of an urgency.  The city can tell Phillips & Jordan to clean out a canal because there is an obstruction.

            Mr. Selchan stated I think we need to have a completely different contract.  The city is going to come in and clean up the streets and any material a homeowner throws out by the edge of the roadway, they simply haul it away.  They do not go into backyards.  Our agreement with them will have to be for them to go into the canals and pull an obstruction out.

            Mr. Cranmer stated as soon as the sun came out and the wind stopped, they were in my neighborhood.  I went out and complimented them because they did such a great job.  They were everywhere within hours.  I was concerned about whether or not they had the necessary equipment.  When the City Manager showed up, he talked about what a great job Phillips & Jordan did.  I wonder whether Phillips & Jordan has the equipment to go into a canal.  The city is not going to need this type of equipment just to clear roads.

            Mr. Selchan stated I can guarantee the people they had cleaning up the roads did not work for Phillips & Jordan.  They have agreements with other contractors who do this type of work.  They have agreements with a contractor to clear the canals.  It could very well be, the group the District used in this last event was a sub-consultant for Phillips & Jordan.  They establish a network of different contractors because they do not know if a hurricane is coming from the west, east or from the bottom up.  They may have to bring people up from the panhandle.  Therefore, they have to arrange to have a slate of contractors in place when an event occurs.  This is standard among Phillips & Jordon.

            Mr. Hulett stated the good news is the city has a contractor, which they used more than once.  One of the reasons it works so well is the city had a substantial reserve set aside for quick payments.  They showed up here first and we got our streets cleaned fairly quickly because they were able to be paid immediately.  However the technicalities of the piggybacking work, because the city is a huge customer, we can work out the details of how to handle the canals and other issues.  As far as moving forward and looking at the legalities and talking to them in cooperation with the city to see how something can be worked out, is good for us.  We can develop a good relationship with the contractor.  We will also get good efforts with an obstruction in a canal or problem with a pump station.

            Mr. Wrathell stated Mr. Selchan stated this very well.  One of the important pieces of this is we need to have Mr. Selchan and our engineer go out for bid and come back with the bid specs for them to provide the equipment.  If we piggyback the city, there may be an agreement stating they will provide the equipment to be able to serve the engineers with all of the technical specifications.

            Mr. Hulett stated I request this item be brought back next month and direct Mr. Cranmer to research the possibility of the District piggybacking the city agreement.

            Mr. Wrathell stated I have not looked at the contract with the city of Coral Springs.  They actually have scales weighing the material brought in and issue invoice tickets.  The process may have changed since the last time I entered into one of these discussions. 

            Mr. Hulett asked what is involved in moving forward with the Statewide Mutual Aid Program?

            Mr. Wrathell responded there is not much negotiation with these agreements.  I request the Board approve the draft of this agreement and to make the attorney more comfortable, conceptually approve it with legal counsel’s review and approval.

            Mr. Hulett asked what is the advantage to us entering into this agreement?

            Mr. Wrathell responded this consummates the relationship with the city and gives you the mechanism to request assistance from other local governments during storm events.  If we get hit with such a bad event to where even the City of Coral Springs was down and Phillips & Jordan cannot mobilize quickly, we can request assistance from other areas in the State of Florida who participate in this program.  When others help us, they can get reimbursed by us and through FEMA.  If we request assistance, we are required to reimburse them for helping us.  They are more willing to help us because they can be reimbursed.

            Mr. Hulett asked once the application is submitted, how long does it take to get approved by DCA?

            Mr. Wrathell responded once this agreement has been officially approved, signed by the Board and sent to the state, it will be on record with the state that we participate in the program.  By the time it goes through all of the appropriate parties, it usually takes a few months to receive the document back.  However, once you approve it and execute it, you are officially in the program as long as you are doing the due diligence to make sure it has been executed.

            Mr. Hulett asked does the attorney prefer to look at this document before we move ahead?

            Mr. Cranmer responded yes.  I want to research the statutes.

            Mr. Hulett stated we will place this item on the October agenda and have Mr. Cranmer research the document.

            Mr. Wrathell stated the Board can approve it, pending the District Attorney’s review or we will bring it back to you next month.  You operated this long without having this agreement in place and we can wait another month.

            Mr. Hulett stated next month we can also discuss how to move forward with the communication process.

            Mr. Sobers stated I am interested in knowing how many of your other districts participate in this program.

            Mr. Wrathell stated we have 40 districts in Florida.  One district has not had their first Board meeting yet and the other 39 went through this stage.  It is relatively recent phenomenon.

            We had a workshop on September 5th at City Hall.  Mr. Selchan gave us an excellent tour of our facilities as well as the Tamarac facilities.  We also visited one of our pump stations and saw the condition of them and looked at one of our culverts along Sample Road.  Clearly we all came away with the impression that Mr. Selchan and his staff are doing a great job of maintaining every single resource we had.  As this plant is 40 years old, we came to the realization some issues need to be addressed even beyond the pump stations.  Mr. Selchan said the District has culverts constructed by farmers 40 years ago, which became part of the District’s drainage program.  We met last week with Ms. Early, Mr. DaSilva and their staff at CH2M-Hill and took this to the next step.  We came away with a similar impression.  When Mr. Selchan was doing his financial analysis on the pump station, our issues were on a comprehensive level.  After this workshop, we saw not only did we have issues to address with the pump stations, but in order to upgrade our pump stations to get 100% efficiency, we have to create efficiencies.  We had issues with some of our canals over the years, which filled with enough silt that as you drain down the water, it stops at a certain point.  Perhaps some of the water bodies will not drain as well as we hoped to protect the roads.

            Ms. Early and Mr. DaSilva gave us a Hydrology Analysis on the way our system was designed.  If our system remains in this condition to where certain issues need to get addressed, we need to know what these issues are and whether it will function appropriately if we had new pump stations or upgrade them.  We are more confident, we will be operating 100% efficiently.  You are looking at culverts in certain areas where there is silt built up in the culverts.  Not doing a good job of cleaning the culverts result in a buildup of silt.  If we are going to go out and issue some form of debt to deal with the pump stations, we need to decide if it make sense to put the other issues we need to address into the larger financing to provide more of a benefit and timing to scale.  We should deal with the entire instead of dealing with it in pieces.  We may be able to deal with five canals that have issues in the next year but there may be 20 to 25 canals out there that we need to address.  From a management perspective, I need to understand this better.

B.        Engineer – Update on Tree Removal

            Mr. DaSilva stated we are 100% complete. 

            Mr. Selchan stated the contractor has a couple of issues to address as far as making the residents happy.  We have a couple of track marks in a yard and broken sprinklers.  He has not provided the final certification and will not do so until he takes care of the resident’s yard that he used to gain access to the canal.  As soon as he puts some sod in and repairs some sprinklers, he will be finished.  He did a great job.

            Mr. DaSilva stated the next item is the presentation we did on the final result of our modeling.  When the District was created and permitted through SFWMD, the model was based on land use with the canal, lakes and surface water.  The model was recreated based on existing conditions and divided into subsections, bringing all of the culverts and canals into the District.  We looked at each individual basin and sub-basin with what the land use looks like now and prepared the original design features to see if it would work with the existing conditions.  We analyzed the 10 year storm event and discovered only one section in the East Basin exceeded the 11.1” minimum elevation.  The actual elevation is 13”.  The second result gives us the 100 year storm event, which is the finished floor elevation.  There were areas in the West Basin where our flooding stage was 11.5”.  It is clear this assumes we have a perfect scenario when it is raining where water flows through all of the culverts and runs down to what we assume to be a nice clean canal with flat bottoms, clean pipes and no obstructions.  It is unclear whether or not these pipes work.  As Mr. Wrathell just stated, as we look into the future, we need to implement a canal dredging program and a culvert maintenance program where we repair and replace all pipes.  We also need to look into a canal bank program so we can start looking at encroachments, cleaning, sodding and removing trees. 

            Mr. Hulett asked based on work you have done for us in recent months, have you identified the major canals with silting problems where a dam has been created impeding the southbound flow?  Do we know where these areas are located?

            Mr. DaSilva responded no.

            Ms. Rower stated Mr. Selchan addressed this issue several meetings ago.

            Mr. Selchan stated we know where the worst areas are.  There are areas that do not drain but they are not the main drains.  They are like a bypass.  Every canal has more than one way to flow the water out but they also have a main way out.  They can flow water in a different direction and go through another channel.  We highlighted our maps to identify these areas and provided a copy to Mr. DaSilva. 

            Mr. DaSilva stated there is one area on the west basin and another by the outfall canal.  In order to assess the entire District, it is necessary for us to do a disconnect of the drains so we can lower the canal depth and identify the amount of silt to be cleaned out.

            Mr. Hulett stated we visited one such area the other day.  If these areas need to be de-silted, are you comfortable we are in good shape, even though some of the auxiliary canals were not perfect?

            Mr. Selchan responded we will have addressed our major concerns, which raises my comfort level.  No one has gone out and looked at what we need to do and the effects if we do not go out there.  In 25 years experience, I know we can get the water down to a certain level.  The problem is we never had to take the water below this level because we had not had a storm event coming at us dictating the water being lower than we have been.

            Mr. Hulett stated I am asking whether or not we need to spend money on a study if we already know where the key areas are and if we de-silt those areas, it is going to put us far down the road in terms of the efficiency of the canals.

            Mr. Selchan stated I think you addressed the problem.  There are major deficiencies in these areas.  We have problems in the west basin and some in the east basin.  If you address those areas, we will be closer to zero problems.  Right now we are not going to get to zero.  I can tell you the pumps need to be repaired.  At this point, we can get the job done with what we have but we need to address this so it does not get worse during a storm event.

            Mr. Hulett stated at the workshop you mentioned there was FEMA funding available.  What was this for?

            Mr. Selchan responded NRCS is a regulatory group of people who give funding towards canal bank repair efforts.  They issue this funding.  Mr. Pete Colussy went out with a representative of NRCS and showed them some of these silting problems.  We believed these problems to be a result of the storms and asked them for the funding.  The representative has to go back to his office and write a report to bring before his superiors.  They will decide if they are going to fund the repair and how much money they can dedicate.  At this point, he was willing to write a report to see what his superiors will do.  They have not gotten back to us.  Once they do, we will have a better idea of what we can address.  If they agree to help us with these areas, they will pay 75 cents on the dollar, which is a tremendous help.  We will immediately ask for the Board’s approval to work with NRCS to get these materials out of the waterway, which they will pay for.  At that point, we will re-assess where we are and see if there are any other places. 

            Mr. Hulett asked how long has it been since you started this process?

            Mr. Selchan responded three weeks.  We are still early in the process.

            Mr. Sobers asked what do you anticipate to be the turnaround time of approval from NRCS?

            Mr. Selchan responded I had to do my tour while Mr. Colussy was out with the NRCS representative.  We have not heard back from them.  Hopefully we will hear from them before our next meeting so we can update you on where we are at and decide how to go forward and address those issues.  These are our main issues.  This is our biggest water basin with the most surface water.  We want to make sure we do not have any issues.  The west basin can hold more water.  I do not believe these will change our issues.  If they do, I believe this will change our thought process on how to handle an ongoing drain/dredging program for either as a one shot deal or a progressive program.

            Ms. Rower stated Mr. Selchan has been addressing these issues for several years as an employee of the Sunshine Water Control and brought it to the Board’s attention many times.  This is not something new.  He designated funds in every budget because of this situation.

            Mr. Wrathell stated what helps in re-engineering new communities and developing financing programs for those new communities is issuing debt.  The life of the asset will actually extend beyond the maturity of the bonds.  We typically try to match it up so it is relatively equal.  If you have an asset with a useful life of 30 years to pay your typical infrastructure items such as roads, water, sewer and drainage; usually when you hit the 30 year time frame, things start happening.  Clearly your engineers tell you the realities of what is out there.  You have a system, which has been in existence for 30 years.  Obviously there are areas of Coral Springs, i.e. Sunshine that were developed later on.  Some of these culverts were constructed by farmers 45 to 50 years ago.  We have a 40 plus year old system.  You have a comprehensive system, which has not matched its useful life from a drainage perspective.  However, you are doing well in the sense the system still functions.  I look at this from a management perspective and say “At this point, you identified hot spots but I wonder if there are other problems we do not know about”.  This is what keeps popping up in my mind.  I appreciate the fact you want to save the residents money in a cost effective fashion but I found in my experience, sometimes when you are able to look at things from a bigger perspective and develop a financing program, you are able to comprehensively deal with this and your ability to take this debt and spread it over 30 years.

            In many cases, you do not have to worry about dealing with authority from a maintenance perspective.  If you step back and ask “What do we need to do to address this” and it is 50% more than what we are talking about, we have an opportunity to say, “We can take the $12 million and deal with it in a comprehensive fashion”, but for the ability to reinvest your infrastructure to take advantage of this singular bond issue, you are able to spread the cost over 30 years versus a five year note and deal with this on a comprehensive level.  It may not be cheaper but it may be equitable to what you expect to pay on an ongoing basis.  If you want to deal with these hot spots, I assume over the next several years, you will be focusing on those and can issue debt. 

            I recommend spreading the debt out for a period longer than five years if the useful life far exceeds five years or ten years.  You should give yourselves the opportunity to get it all done at once and take advantage of the mobilization cost.  It is much cheaper to issue bonds once.  Mr. Selchan tries to be prudent and conscious of not spending the District’s money and he does a great job.  In regards to an alternative revenue source, if there are some funds we can use to subsidize, we should go for it but there is an opportunity to get our hands around the whole project so we know what we have to deal with.  It becomes clearer if we decide how to devise the plans.  As you can see, it is almost evenly spread throughout this area. 

            Mr. Hulett stated I recommend phasing them through.  After looking at everything and seeing an example, at this stage of the game, it is probably going to be wise and prudent to look at the entire system.  We need to look at the entire system to see where the problems are and work out a financing plan making sense over the long term. 

            Mr. Wrathell stated this is one way to approach this.  I suggest they draw a scope of what they envision the project to potentially be, do the analysis on a broader scale and put all of this into a proposal and bring back to the Board to discuss next month.  You do not have to do anything about it.  We can deal with these issues and figure out another approach.  You are talking about spending $250,000 to $300,000, which we do not have at this moment but you should try to come up with a more cost effective approach.

            Mr. Sobers stated I concur with your approach.  However, having seen the pump stations, I believe having security there is a higher priority.

            Mr. Wrathell stated Mr. Sobers brought up a good point.  When we had our meeting last week, one suggestion was to look at an alternative to the security fencing as clearly people have tried to run cars through and tore down the fencing and whether we can develop some type of wall base system.  This should be incorporated into the existing analysis and a cost estimate should be provided.  I agree with Ms. Rower about this being the more appropriate place.

            Mr. Hulett stated I agree with Mr. Sobers.  Both of our pump stations are in severe need of additional security.  Pump station 1 is not better than pump station 2 but pump station 2 is in worst sha