MINUTES
OF MEETING
CORAL
SPRINGS
IMPROVEMENT
DISTRICT
The regular meeting of the
Board of Supervisors of the Coral Springs Improvement District was held on
Present and constituting a quorum
were:
Bob Fennell President
Sharon Zich Vice President
Glen Hanks Secretary
Also present were:
Dan Daly Interim Manager
Ed Goscicki Co-Manager –
Dennis Lyles District Counsel
Sean Skehan CH2MHill
Jane Early CH2MHill
Jim Aversa CSID
John McKune District Capital
Improvement Coordinator
Doug Hyche CSID Utilities
Director
Randy Frederick CSID
Drainage Supervisor
Pamela Rower
Stephen Bloom
Kay Woodward CSID Accountant
Jan Zilmer CSID Human
Resources
Steve Trescott SunTrust
Bank
FIRST ORDER OF BUSINESS Roll
Call
Mr.
Goscicki called the meeting to order and called the roll.
SECOND ORDER OF BUSINESS Approval of the Minutes of
the December 17, 2007 Meeting
Mr. Fennell stated each Board member
received a copy of the minutes of the
Mr. Fennell stated on page 29 not
sure should not insured.
Mr.
Hanks stated the numbers of page five, third paragraph lis10 should be list 10.
Mr. Daly stated page 31 at the end
Padgett should be PGIT.
On MOTION by Ms. Zich seconded by Mr. Hanks
with all in favor the minutes of the
Mr. Fennell asked is
there anything we have to actually pass or vote on today?
Mr. Goscicki responded yes, item
four. On item three it is important that
we get buy in from the Board to ensure where we have your funds is where you
are happy with.
Mr. Fennell stated there are no time
sensitive things such as contracts or construction.
Mr. Daly stated item five for the
pension plan we have had on the agenda for awhile.
Mr. Goscicki stated item six is not
a time sensitive issue but is a dollar issue.
THIRD ORDER OF BUSINESS Discussion of SBA Funds
and Bond Proceeds Investment Options
Mr. Goscicki stated I will turn this
over to Ms. Pam Rower and Mr. Stephen Bloom.
Ms. Rower you know from previous meetings. She has been out for a bit of time
convalescing. Ms. Rower’s role has
changed within the organization from Accounting Manager to more Fiscal Analysis
helping on these types of investment issues.
Mr. Bloom has taken over as the Accounting Manager.
Mr. Fennell asked what is happening
with the SBA?
Ms. Rower responded I spoke with Ms.
Woodward today and we do have some options where we can go ahead and withdraw
approximately $927,000 out of the SBA fund, it has come available based on the
new requirements. This will leave
approximately $571,000 in the fund that we will not be able to release. I anticipate in the next few months that they
will loosen their requirements.
Mr. Hanks stated the state has not
done anything to address the concerns about the integrity of these
investments.
Ms. Rower stated they have in a
sense that they have created two funds and
any new monies that are going
into the fund, to make sure that they are in a better account, they have separated
them so they have an A account and B account. They are looking at the riskier investments
they had and there is nothing in the market for them to get rid of these. Those are separated and any new monies are
going into the A Fund, which is a much better portfolio in terms of risk.
Mr. Goscicki stated since the last
meeting the SBA did loosen up the percentages that we can move. These are additional funds we can now withdraw.
Mr. Bloom responded it was
originally 15% or up to $2 million and now it is 37% or up to $4 million.
Ms. Zich asked how can you trust A
versus B? What is the definition of A
and B?
Ms. Rower responded it is the type
of investments they are investing in compared to government securities,
compared to commercial paper, and different investments of that criterion so
they are graded.
Ms. Zich stated I am concerned
because I do not think anyone was aware of how risky the other ones were.
Ms. Rower stated many people assumed
the SBA was a bank account just as other bank accounts, and was federally
insured, as such. I do not think people
understood it was investment pool created by the state to help cities and
smaller municipalities manage their funds.
Unfortunately, it is like anything, we just read about a bank in
Mr. Goscicki stated the SBA is not a
bank account; it is not government insured in that regard but the sale of this
service fund has always been it was a safe, secure, conservative
investment. The sale to local
governments is, you do not have to worry about having your own investment
managers you can put your money here, we are going to invest it, we are going
to be conservative with what we do and clearly some of their investments were
not.
Mr. Hanks asked is there still the
need to move our money out of the SBA?
Mr. Goscicki responded it is still
our recommendation we maximize the amount of withdrawal. I think their credibility has been severely
damaged in terms of where they are and their rulemaking is completely
arbitrary. We are still recommending the
Board authorize the withdrawal of the maximum amount.
Mr. Hanks stated I would like our
people to talk about what we are doing with the money.
Mr. Fennell stated let’s talk a
little about the SBA. Have you looked at
their accounts and what they were doing with them?
Mr. Trescott responded yield is a
very strong indication of what they are investing in. A typical Money Market fund return is 3.75%. They are still paying 4.70% on the A Fund. The A Fund was the original fund and
supposedly had all of the good investments.
The B Fund has the sub-prime mortgage backed securities which is
commercial paper and things like that.
It will probably be quite awhile before you get any money out of there,
it depends on if they can sell it. I saw
the original portfolio before they closed.
Mr. Fennell stated I looked at it a
couple of months ago and it is not that they have not been fairly
forthcoming. I looked at the different
possibilities including commercial paper, T-bills or any kind of bonds and it
was less than 1%. My thought was, I have
junk bonds which are safer than that.
How did they get to this? I would
not think they paid us that well, most of the time we had out money in there,
it was 2% or 3%.
Mr. Trescott stated they were paying
5.70%.
Mr. Fennell stated I do not think
they had security debt funds. What I
think is they invested in Countrywide or some kind of funds like that which
were the people who set up the funds and did not even have the mortgages
backed.
Mr. Trescott stated they had a lot
of Countrywide CD’s.
Mr. Fennell stated with Countrywide
you do not even have a mortgage at that point.
Countrywide is now being bought out by Bank of America at probably dimes
on the dollar.
Mr. Trescott stated it is
interesting how they got into this stuff and why they went into it. They are analyzing that and so forth. The sub-prime mortgage backed securities was
$980 billion around the world.
Ms. Rower stated ,it is as any other
fund, their goal is to create assets and get more assets, so obviously they
were looking for returns and most municipalities are looking for returns. We looked at the banks and your investment
options and said this is a higher paying yield and until this happened they
have paid higher rates for quite some time.
Mr. Fennell stated in our budget we
were ever only getting 2% or 3%. Did we
really get that money?
Ms. Rower responded yes.
Mr. Fennell stated our budget was low
but we were getting more. On the other hand
we were supposedly almost forced to go there.
Mr. Goscicki stated you were not
forced. It is one of those investment
opportunities imparted to us as a convenient safe investment. It was not a forced issue but a safe
investment option for local governments to use.
Mr. Fennell asked was it supposed to
be like a cash money market fund with monies going in and out? It was not meant to be as a CD is to tie up
your funds.
Ms. Rower responded it is an
investment pool so actually it was like having an investment advisor who was
managing the pool so each smaller municipality was not hiring their own. You would assume that type of investment
management or advisory service would yield you better rates but not riskier
investments. Unfortunately, it is like
anything, they are in a business and people have a drive to create more return
and who knew how bad the bubble was going to burst when it burst.
Mr. Fennell stated several banks
did.
Ms. Rower stated Citibank is the
largest bank out there and they had problems with this.
Mr. Fennell stated the bonds get
passed around. Is the Fed still going to
back the bond insurers?
Mr. Trescott responded it fell
through.
Mr. Fennell stated it held the
market for a day or two.
Mr. Trescott stated the bond
insurers are struggling because they insured a lot of the different pools of
the sub-prime mortgage backed securities.
There could be 10 or 15 different layers or slices of that same mortgage
backed security, some would be AAA and those would be insured. If they fall below a certain price there is
an automatic kick out, you have to liquidate and there is no market out there
for them so you take a loss and that brings the insurance factor in. They are struggling with paying those off.
Mr. Fennell stated I am trying to
understand if it was just one of those things that happened or if there was a
shift in policy and changing to take on a lot of risky investments. I can point to half a dozen things which have
a better track record than the SBA fund, not only from a matter of stability,
but from a standpoint of yield.
Mr. Trescott stated remember the SBA
fund was considered a money market fund you could go in and out of it daily.
Mr. Fennell stated that is what I
thought.
Mr. Trescott stated you could go in
and out of it daily.
Mr. Fennell stated as I understand money
market funds, the objective of any person in the money market fund is to
maintain the daily value and second get the best deal you can by doing
that.
Mr. Trescott stated they did not run
their money market fund like a money market fund ,more like a 287 fund, which
is by the SEC. It has a longer maturity,
longer duration, a different quality of securities. This is why the money market funds were
yielding 5% and they were yielding 5.7%.
Mr. Hanks asked with the investments
we are looking at what is the relativeness to where we are now?
Ms. Rower responded we are looking
at several different options. We have
the operating funds we have to look at because obviously we have bond funds, we
have operating funds. We recommend we
keep the daily operating accounts with Wachovia. Ms. Woodward brought up the
fact that we have a lot of customers who get direct billed money taken out,
lock boxes, and that type of thing so from an operational standpoint we would
like to recommend we stay with Wachovia.
However, we have negotiated with Wachovia to get a rate that is their
Government Advantage Interest checking account.
The interest rate is based on a 90 day T-Bill and is considered a
government account so we end up with $100,000 of the FDIC insurance and after
that we are backed by the state and we have the backup of the Qualified Public
Depository (“QPD”). The daily billing
for the water and sewer will remain in Wachovia, it is a very safe, interest
type checking account, it is a money market fund and they do pay you based on the
T-Bill. They do have a minimum
requirement of $100,000, which stays in the account and will not earn any
interest. The remaining is put in a
Government Advantage Money Market fund. This
is what we recommend for Wachovia.
Ms. Zich asked what is the current
rate?
Ms. Rower responded at this time it
is 3.39% based on the 90-day T-Bill.
Ms. Zich asked, is that what the
funds at Wachovia have been in?
Ms. Rower responded no.
Ms. Zich asked what kind of interest
have we been getting?
Ms. Rower responded we have not
gotten interest. They did what is called
interest earnings credit. Because rates
have been typically so low the year before they would credit our fees against
the interest so it was a wash and no interest.
We anticipate the interest will be more based on the rates.
We also have Wachovia accounts we
would like to invest that are the reserves.
They have a special program Fed funds minus 25 basis points and that is on
balances over $1 million. This will give us somewhat of a better return and we
think it will serve our purposes. We are
only allowed six transactions a month so this would be used only for our reserves. Then we have what we consider our bond
proceeds and is why we brought in Mr. Trescott of SunTrust, portfolio
manager. We would like to look at
agencies for the monies which will not be used until 2009. The bond money is sitting currently in US Bank
and they are currently paying 4.4%, so the bond money has been earning interest
the whole time with the trustee, US Bank.
Mr. Goscicki stated the way the bond
fund is set up right now it is all sitting in this account and you can take as
much as you need anytime you need it.
The goal is to develop more of a managed program looking at projected
cash flow of the capital program to try to optimize the investment. There is a piece of it we are saying whatever
we anticipate using in fiscal year 2008/2009, leave it with US Bank to have as
working capital for the Capital Improvement Program and the balance invested to
see if it can earn a little higher yield.
Mr. Fennell asked did you say the $40
million is currently in SunTrust or US Bank?
Ms. Rower responded US Bank.
Mr. Fennell stated US Bank had
something to do with the bond issue.
Ms. Rower stated US Bank bought out SunTrust
Trust Department.
Ms. Zich stated I am looking at the
cash transaction and cash flow charts Ms. Woodward gives us under Section A., there
is a lot of cash sitting there. Is it
not earning any interest now or is it in Wachovia earning some type of
interest? The money from SBA came out of
there and went into the checking account.
Ms. Rower responded that is what we
discussed at the last meeting that it was not an interest bearing account and
the Board made a decision for 30-days it would be fine so we could get the
money out of the SBA. However, we have
spoken with Wachovia and we will be receiving the GAIC at this point which in
November was 4.25% and we will be moving it to that account as soon as we have
approval from the Board.
Ms. Zich stated there was a lot of
cash sitting there before we got the SBA.
Do you mean we were not getting any interest on any of that? There is $1 million sitting there.
Ms. Rower stated it was an Interest
Credit Account so you would not have fees charged.
Ms. Zich stated you are talking $1
million in an account.
Mr. Goscicki stated this is exactly
why we have this item here. We need to
move this money to get an investment portfolio.
Ms. Zich stated that is a lot of
money sitting there.
Mr. Fennell stated obviously we need
to handle our money better. How do we
decide which bank?
Ms. Rower responded one of the issues,
especially when it comes to the operating account because of the items which
are in place – to change all of that when it comes to our billing would be
quite cumbersome and I do not think it would be in our best interest.
Mr. Hanks stated I am set up on
automatic withdrawals or whatever it is so at billing time Mr. Daly puts in an
amount for my account and it takes my money out of my bank, and it is directly
transmitted to Wachovia, so for the 10,000 or however many customers we have,
we would have to change each and everyone of those.
Ms. Zich stated I am not suggesting
you change it. I am suggesting there is
over and above an awful lot of money there we are not using on a monthly
basis.
Ms. Rower stated this is why we are
saying we will keep our operating account with Wachovia, but in another account
that allows for better returns when you have over $1 million. The money on an
operating, daily basis will stay in one account with Wachovia that allows as
many transactions as needed. The other account
with Wachovia you are only allowed so many transactions but you get a much
better rate and it has a minimum balance requirement of $1 million.
Mr. Hanks stated given the terms of
our operations right now we have just gotten our tax rolls and we are in a good
position in terms of what we have available.
When we get to July or August toward the end of the season where do we
stand on that account balance? Are we
going to be down close to that minimum threshold?
Ms. Rower responded we can do a transfer
because it is all within Wachovia. You
are only earning a few basis points additional so if it comes to that account
they will work with us to move it into the other Wachovia account. Because of the fact we want to keep all of the
operating accounts together, it is just working with them on an approach that
gives us a better return without having to pull it out and investing elsewhere.
Mr. Hanks stated it is still easily
accessible.
Ms. Rower stated Ms. Woodward can
pick up the phone to transfer it from one fund to the other.
Mr. Bloom stated having those
accounts within Wachovia gives you that flexibility to be able to move them
back and forth. As far as the Wachovia
accounts, they will work with us and in not difficult to move.
Mr. Fennell asked how does this work
with the US Bank account?
Ms. Rower responded it is separate
because this is our operating account.
If you want to work with US Bank and have SunTrust to work with our bond
proceeds, which is a different issue because that money is more of a scheduled
timeframe, and we are looking at the investments with SunTrust for those monies
which will not be used in this fiscal year, 2008.
Mr. Bloom stated the minimum is the
differential between what we are paying on the bonds and what we are able to
get for the unused monies.
Ms. Rower stated what we are looking
at is when we look at the rates we have available and the yield curve is
nonexistent. You think you go out two
years and that is not the case because they think rates are going to be
dropping significantly. We have to look
at what we think the market is going to do and also protect ourselves. If the interest rates do not drop and we go
out long term and then they do not we are getting a lesser rate than we would
on Money Markets and is why in the current year keeping the money in a Money
Market account will offset it so we have some money liquid through the bonds so
we do not have to make withdrawals and we will not be caught in that
scenario. We are looking at investing
monies that are not projected on the capital expenditures until next fiscal
year.
Mr. Fennell asked are we fully
insured now on our accounts?
Mr. Bloom responded Wachovia is.
Mr. Fennell asked up to how
much?
Mr. Bloom responded $100,000 FDIC and
after they put into a pool to which everybody puts in a certain percentage to
cover all of the losses.
Mr. Fennell asked what about the
money we have at US Bank?
Mr. Bloom responded it is safe in a
very liquid, risk free type of investment.
Mr. Fennell stated you have this
wild trader guy come in and trades away $20 million of it. Now what happens?
Mr. Bloom responded the bond
documents have very specific guidelines as to what they can invest in.
Mr. Lyles stated it is in a trust
account. It is fundamentally different than
the funds staff has been speaking to you about.
Those funds are about as safe as funds can be. They are held in trust and dedicated to a
single purpose.
Ms. Zich stated we really thought that
is what SBA was.
Mr. Lyles stated it is not set up
that way and it never really was. These
funds are in a trust account.
Mr. Fennell stated it is a safer
account but is it insured?
Ms. Rower responded no.
Mr. Goscicki stated our goal is to
move a good portion of the money out of the account to accounts which will be
safe and also meet the requirements.
Mr. Lyles stated they are still
trust accounts. There is a different
level of scrutiny and a lower level of flexibility of what can be done with
those funds, when they are held in trust it is for a specific purpose.
Ms. Rower stated this is why we are
saying for the current operating cycle, the capital expenditures we anticipate
this year are the minimum amount we are keeping in this type of trust. The rest will be invested in governmental
agency investments.
Mr. Fennell stated Ms. Woodward you
deal with our funds day to day; do you have a take on this?
Ms. Woodward responded I would be
interested to see what US Bank is able to do for us. We just went through a closing in September
and chose them to be the trustee.
Mr. Trescott stated the money is in
a Money Market fund at US Bank called a First American Money Market fund again
that would be a AAA rated fund, regulated, certain limitations and the average
life is 90-days. It is very secure so
you do not have anything to worry about with that.
Mr. Fennell stated it is actually
paying out pretty good.
Mr. Trescott stated Friday it was
paying 3.43%; it changes everyday. If it
went under it is backed by the securities you actually own a share of. The $40 million is spread out through all the
different investments. It would be hard
for someone to run off with that type of money.
As to do the investing if you were to go with what Ms. Rower is saying
the money does not actually go to us if you were to choose investing. For example if you were to buy some
securities from us what we do is deliver the securities to US Trust versus our
bank.
Mr. Fennell asked what other
restrictions do we have on the $40 million?
Obviously, we are not planning on using all $40 million dollars in the
next six months.
Ms. Rower responded I know you look
for security and is why we are saying the current year’s capital expenditures
can stay in the Money Market. All we are
saying is we should take some of the funds that we project not to need until
2009 and 2010 to buy some agencies or have some protection. This volatility with the rates and if rates
start dropping as they did two or three years ago and we go down to again with
FED funds in the 1% range, obviously you do not get as good as a return as if
we purchased agencies now. I think this
gives us the best of both worlds in the fact that if rates do not drop and we
purchased an agency at today’s rates and they start going up it allows us the
flexibility ro have some of our money invested.
Ms. Zich asked what agencies are we
talking about?
Mr. Trescott responded it would
primarily be Agencies and Federal Home Loan Bank.
Mr. Fennell asked are they trying to
get more?
Mr. Trescott responded they are not
allowed to buy sub-prime but they had excess earnings. They were taking the excess earnings and
investing in sub-prime mortgage backed securities for their own portfolio. The yield would indicate there is not much of
a spread between the four agencies so it is not perceived as a risk but yield
is a definite indication of the risk factor.
Mr. Fennell stated I think you made
the comment earlier that right now it is an inverted yield curve which usually
means recession and it also usually means you are smarter to keep your money in
short-term money markets.
Mr. Trescott stated we can get 3.40%
right now.
Mr. Fennell stated that is not bad
in this type of market.
Mr. Trescott stated 30-year loans
are 4.27%. If you look at the sheet I
developed and if you go out two years you only get around 2.90% to 3% but that
is a guarantee for that length of time where as what is a money market going to
do. I think long-term wise they will go
down probably to 2.5%.
Mr. Fennell stated where are we
getting $300,000 a month in interest off the bonds.
Mr. Goscicki stated the interest is
anticipated in the capital improvement program; it is not found money.
Ms. Woodward stated we sized the
bond issue at $36.5 million but if you look to the schedule in the document the
expectation is the interest is also going to be used to pay for this
project.
Mr. Fennell stated we are reporting
it with our revenues.
Ms. Woodward stated one of the
things you will notice under the water sewer fund this month is I have split
out the interest because with interest income we have a situation where on
December 1 the first interest payment is going to be made and so you do not
think we did not budget for this and have to pay $400,000 we did not anticipate
you will notice it for the next calendar year.
Any difference will go to capitalized interest and it is a money in
money out type situation.
Mr. Fennell asked what is the
question to us?
Mr. Goscicki responded the question is
twofold – one is your operating budget when we want to move forward against
your current state. There are two
accounts at Wachovia, a checking and a savings account even though they are
both really checking accounts. One is
offering a higher yield than the other allowing us to move from one to the
other to maximize the return on those investments. The second portion is looking at the $40
million bond proceeds and what we are asking for there is to have us go forward
to look at can we achieve a better return on funds we do not need for this
upcoming fiscal year by looking at a more aggressive investment program with
SunTrust rather leaving in US Bank.
Ms. Rower stated it does stay with
US Bank it is just that will be our broker that will be purchasing these
investments for us, it will be Robinson Humphrey, which is part of
SunTrust. They will purchase but the
money stays in US Bank.
Mr. Fennell stated it was also
suggested about keeping those in one bank or two banks.
Ms. Rower stated we really think we
should keep Wachovia as it would be beneficial from an operating standpoint to
the District with the billing process; leaving the operating fund at Wachovia
allowing it to be in a different type of account. Keep all of our trust funds at US Bank;
however, we purchase some agency instruments through Robinson Humphrey even
though the money will stay with US Bank.
Ms. Zich stated I am concerned about
the SBA because all of the money we put over to Wachovia is just going to be
sitting there.
Ms. Rower stated it is going to be
earning interest.
Ms. Woodward stated everything in
the operating account at Wachovia will now earn interest.
Ms. Rower stated when we used the
SBA the accountant would pull out money as needed to fund operations for that
month.
Mr. Fennell stated we are not there
yet but I think we are getting to a good cash flow forecast. Obviously cash flow means more than monthly
budgets. Give me something specific to
say aye or nay on.
Mr. Goscicki stated on the first
issue I am not sure there is a course of action for the Board; it is part of
our responsibility to manage the money.
We are looking at the current direction from the Board such as to stay
with Wachovia, split the funds between the funds to be able to maximize returns. Obviously they will be managed closely
between Ms. Woodward and Ms. Rower in terms of the overall fiscal oversight and
day to day accounting.
Mr. Fennell stated that is the day
to day money. What you are looking for is the money market account and six
month T-Bills.
Ms. Rower stated it is all in going
to be in the Trust Department of US Bank trust but we are looking to purchase
different instruments.
Mr. Goscicki asked are you talking
about the $40 million bonds?
Ms. Zich responded I am talking
about the Wachovia part because it is bothering me more than the other. I am used to working with the construction
company and if we had excess funds we would put them in a Money Market.
Ms. Rower stated we used the SBA to
do that for years and now because of the situation with the SBA we have pulled
our money out and now we are going to put it in Wachovia.
Ms. Zich asked have we gone to see
if Wachovia is the best one?
Ms. Rower responded we need to keep
it with Wachovia because of our operating funds because with the SBA it allowed
us the ease of moving money in and out.
We want to make sure we do not have investments tied up because
obviously with construction you can project out we know we are going to do so
much with this capital project for these three months. When it comes to operating we do not have as
much of a luxury. We want to make sure we
do not take that money and invest it; we want to keep it in an operating
account which earns interest. You are
not investing in a T-Bill but it pays you the same as a 30-day T-Bill.
Mr. Goscicki stated we are not
locked into this long term. It is a
current investment strategy based on the SBA situation. It is an approved way to optimize the
investments we have; as the situation shapes up and we get more confident of
the fund we will be updating you.
Mr. Daly asked what is the
suggestion to do with the $40 million?
Mr. Goscicki responded I would like
to get through the one issue because they are totally separate. One deals with the operating funds which has
a certain set of criteria and the other deals with the bond funds.
Ms. Rower stated what we are looking
for from the Board is for the movement of the bond money.
Mr. Goscicki stated I do not want to
talk about the bond money; I want to resolve the one issue before we confuse it
with the bond issue. What we are looking
for from the Board is did what we just described make sense and move
forward.
Mr. Fennell stated you could take
our excess funds from Wachovia and invest them with US Bank.
Ms. Rower stated we are not,
everything for the operating the water and sewer fund and operating the billing
will still be with Wachovia. Then
depending on needs and cash flow we will get a rate based on where the money is.
Mr. Fennell stated all of the
operating funds are going to stay at Wachovia in the two different accounts –
one being sort of a money market with checking privileges and the second being
a higher yield account.
Ms. Rower stated with six
transactions allowed.
Ms. Zich stated you do not want to
move it anyway.
Mr. Fennell asked what is the
difference in the interest rates?
Mr. Bloom responded the regular one will yield
FED minus 10 basis points and the money market deposit account FED minus 25
basis points but 100% earns interest. As
far as Wachovia we did look at several other banks. SunTrust and Wachovia have very close rates.
Ms. Zich stated that was my question
of whether we had checked out other banks.
Ms. Rower stated we have a
spreadsheet. For the few basis points
that you are going to make it is not worth investing for three years.
Ms. Woodward stated I thought we
asked Wachovia to match the offer of the other bank.
Ms. Rower stated we talked with them
and they came back with the only difference being the minimum requirement.
Mr. Goscicki stated the second issue
is the US Bank bond proceeds and what we are recommending to the Board is we
take on a more active investment role through SunTrust, again the monies all
stay within US Bank but we will be directing investment terms based upon the
draw down schedule to try to optimize the return to the Board instead of just
leaving it there and saying it is what it is.
Mr. Hanks asked have you looked at
what the brokerage fees are going to be?
Has it been part of the consideration?
Ms. Rower responded they are
calculated in the returns as net returns.
Mr. Fennell stated on the $40
million we already have a planned rate of return built into this.
Mr. Goscicki stated there is a rate
of return that went into the bond issue.
Mr. Fennell stated we felt we are
getting these bonds and they are going to sit here for awhile but we are going
to make $300,000 for a couple of years and it is going to fund additional
services.
Ms. Woodward stated it is going to
fund the balance of the capital projects.
Mr. Fennell stated there is actually
a goal there we better meet. What is the
return we have to have?
Ms. Woodward responded I do not
recall.
Mr. Goscicki stated I do not
remember off the top of my head either.
Mr. Skehan stated over the three
years it is supposed to go from $36.5 million up to $39.6.
Mr. Fennell stated I see a schedule
from engineering which is sort of germane to this because you have finance
trying to do a cash flow analysis and engineering spending money, somewhere
there has to be a connection.
Mr. Goscicki stated absolutely.
Mr. Fennell asked how do we get all
of it together?
Ms. Woodward responded Mr. Skehan
and I have already started to pull together the dollar amounts and what you are
looking at now is a timeline. We are
going back to the original engineers report and projecting out the projects and
the timeframes anticipated. We will
re-address and analyze to see if the timelines are accurate. This page includes only the items, which are
the responsibility of CH2MHill.
Mr. Skehan stated there is a gross
table similar to this with a little less detail included in the bond report on
which the distribution of the funds was based from the beginning.
Ms. Woodward stated I am going to be
taking that information and producing a similar schedule which will encompass
all of the costs associated.
Mr. Fennell stated that is what I
want to see every month.
Mr. Goscicki stated it is matching
the engineer’s progress with where they are, where they stand with regard to
the work authorization.
Mr. Hanks stated it needs to be layered
on top of the contractors schedule as well.
Mr. Goscicki stated this is a piece
of the overall schedule.
Mr. Fennell stated I want to see a
monthly schedule on it. There is nothing
more important to us and this supersedes our budget if you think about it. Spending this money wisely is important to
us. Obviously you do freeze your
original amounts and ideas and this is an ongoing thing. We need this because six months from now
somebody is going to come from the bank and say okay you have not spent as much
as you thought or you spent more than you thought.
Ms. Woodward stated the expectation
is the operating and projection cash flows for capital funding will be updated
monthly so you will be able to track progress.
Mr. Fennell stated after the bank
loans you the money they kind of step back but now it is our money and we are going
to take care of it well. The only issue
is with the $40 million and you are thinking can I get it to do a little better
than that but obviously they have to be safe investments.
Ms. Rower stated US Bank will have the funds
and we will purchase through our broker dealer, Robinson Humphrey, will have to
go to the open market to purchase instruments. Because
of the fact we are looking at the years after this fiscal year we are not going
to invest any of the monies coming due in the next three to six months.
Mr. Hanks asked what about the
pumps? Have you some kind of contingency
because some of these capital improvements are related to the pump
improvements?
Mr. Goscicki responded bond funds
are dedicated to certain capital improvements as supported in the bond
documents. If a pump breaks it comes to
the R&R fund and there are monies there at Wachovia earning interest. It is not intended to deal with those types
of issues.
Ms. Woodward stated the R&R
funds are in fact at US Bank. They are
not at Wachovia.
Mr. Goscicki stated not the R&R
reserves; what I am talking about is within the operating account we have funds
called renewal and replacement funds we have in reserve we can use in
emergencies.
Mr. Fennell asked what more do we
have to talk about with the $40 million?
Mr. Goscicki responded I think it
requires a motion of the Board.
On MOTION by Ms. Zich seconded by Mr.
Hanks with all in favor authorizing execution of investment contracts as
outlined during the course of the discussion to execute the appropriate
instruments was approved.
Mr. Fennell asked how much are the
R&R reserves at US Bank?
Ms. Woodward responded I think we
are funding $307,000.
Mr. Goscicki stated we are required
to put a certain amount of dollars toward renewal and replacement each year and
it creates a renewal and replacement reserve fund. Anything we fund in excess of that rolls into
a general reserve fund we can then use for any legitimate purpose.
Mr. Hanks stated if a catwalk breaks
we can replace it.
Mr. Fennell asked how are those funds
invested?
Ms. Rower responded those funds at
US Bank are similarly invested to the 2007 bonds. The other reserves for the SBA have now been
moved backed into the operating account which is why we are now trying to find
a way of generating not just this income on the current but for funds you do
not have a need for like R&R. If we
have the funds available we want to get the higher interest rate.
Mr. Fennell asked are those funds at
US Bank?
Ms. Rower responded Wachovia.
Mr. Fennell stated R&R funds are
at US Bank or Wachovia?
Ms. Rower responded in both
places. If they were created with the
bonds they are with the trustee at US Bank.
We put aside money each year through the budget process in the operating
account.
Mr. Hanks stated we are talking
about water and sewer.
Mr. Goscicki stated the first
discussion on the Wachovia account was for all of your funds.
Mr. Hanks stated Enterprise and the
general fund. The discussion on bonds is
strictly water and sewer.
Mr. Goscicki stated correct.
Mr. Fennell stated the R&R funds
at Wachovia are also going to be invested.
How do make that choice? Do you
do 50/50?
Ms. Rower responded at Wachovia it
is our regular checking/operating account.
We are going to keep it all with Wachovia. It is totally separate and all we asked for
was approval to take the new bond proceeds for future years and invest those in
an agency type instrument because of the security and we think rates are going
to be going down.
Mr. Fennell stated we spoke the last
time about sending a letter to Senator Ring.
Mr. Goscicki stated it is in your
agenda package.
Mr. Fennell stated it was sent and
basically what we are doing is asking him to investigate why these funds got
invested the way they did. How did they
reach that kind of philosophy for something that was essentially supposed to be
a money market fund for small governments.
Obviously the funds were mishandled and the question is why and how. What I do not particularly like is part of
the same people who mishandled funds are the same people investigating. Senator Ring is out to make sure the
government spends well and does the honorable thing and we need it.
FOURTH ORDER OF BUSINESS Review of Severn Trent
Scope of Services
Mr.
Goscicki stated to recap for the Board where we are with this issue we provided
you a scope of service a couple of meetings ago. The Board reviewed it and provided some
comments on specific areas with direction Mr. Daly and I get together and come
back to the Board with a scope we thought reflected a good path forward in
terms of getting the synergies of what Severn Trent brings to the table and
optimizing the existing resources of the staff of the District.
We provided a revised scope of
services to the Board at the last meeting.
One of the questions asked of us the last time was what does this fee cover. We took the liberty of reviewing our current
fee structure and costed out the new structure based upon this scope. We are please to tell the Board with the
revised scope we are prepared to reduce our fee some $50,000 from our current
annual fee. Our current annual fee to
the Board is approximately $185,000 year which is split 50/50 between the water
and sewer fund and the general fund. We
have looked at the scope and how we can provide these services effectively and
are prepared to drop the fee to $132,580 which would be split 60/40 with 60% to
the water and sewer fund and 40% to the general fund. The split could have been
more except for all of the assessment services are strictly on the general
fund. The reason we can do this is some
of the services we were providing we carry as overhead within the operating
services. We made the policy decision
you are an important client and have been for about 30 years between ourselves
and the succession companies, and we want to keep this client for another 30
years. Where we can carry things and
absorb them as overhead we made the decision not to allocate those costs to you
and allowed us to drop our fee. With the
cost analysis I only bill for an hour of my time in this model. The plan is I will continue going forward in
the immediate future as the District Manager, and as we move forward in that
transition I will stay involved as the CSID administrator. Also, the Board asked for a lot of
operational oversight activities from safety audits to an annual risk
assessment. We think we are qualified to
do that.
Mr. Fennell asked those costs are included?
Mr. Goscicki responded yes.
Mr. Fennell asked comments?
Mr. Daly responded I think this
scope of services Mr. Goscicki and I reviewed easily manages this District, not
working parallel.
Mr. Fennell stated we actually do
have staff in place with Ms. Woodward and others who are pulling a lot more
weight. On the other hand we still get
the advantage of larger more experienced base draw when we need it which I
think makes everybody pretty comfortable.
Mr. Goscicki stated it provides some
of the checks and balances you want in the organization. Ms. Woodward does a fantastic job on the
accounting side, she was hired originally as a Severn Trent employee, but she
has checks and balances built into the system, we are providing services with Mr.
Bloom and Ms. Rower going forward with fiscal oversight, perspective. Again it is just good business practice so
that you do not end up with one investment banker making $7 billion worth of bad
investments.
Ms. Zich stated I just wanted to say
I agree Ms. Woodward is doing a great job and I think Mr. Daly is doing a great
job. I am happy to see the price has
gone down but you are doing such a good job for us and then we have your
expertise on top of that.
Mr. Goscicki stated we think it is a
good split of bringing the expertise we bring in optimizing the skills. Mr. Daly does an excellent job on the day to
day administration and we think we bring some policy reviews and fiscal
management reviews, and some policy intergovernmental experience we bring from
having done this for 30-years.
Mr. Hanks stated the one thing I
would like a clarification on and I think we need going forward as evidenced by
the recent discussions we have had with Senator Ring, et cetera, we need to
have additional involvement in the local, county, regional political scene or
governmental agency coordination. How do
you see this going forward? What goals
do you see Severn Trent taking on? Where
do you see districts taking on responsibility?
But right now we need to move a little more into that arena so that our
concerns whether it be modeling of the water supply and the implications or
whether it be additional water quality requirements for storm water; we need to
have somebody involved in the regional area of water, sewer and
stormwater.
Mr. Goscicki stated we see that
moving forward on both levels. Severn
Trent will certainly be involved, I will certainly be involved. I am meeting tomorrow with the Broward County
Environmental Protection Department to review their request for their entire
stormwater management program. Mr.
Skehan is setting up a meeting for himself, his team and me to meet with the
Water Management District to talk about the consumptive use permitting strategy. Certainly, Mr. Hyche has been involved on a
day to day basis with the Everglades group, Mr. McKune has been involved and the
engineer is obviously involved. It is a
matter of keeping those contacts going and our role is to make sure we are
coordinating all of that.
Mr. Hanks stated Severn Trent is
going to be the entity that will make sure we have the various bases covered.
Mr. Goscicki stated yes.
Mr. Fennell stated they have a hard
time actually becoming political in this and I can see a lot different reasons
for them. They really cannot be
political; from a corporate standpoint they really cannot take positions. They can be implementers of our policies but
cannot be a policymaker.
Mr. Goscicki stated we advocate the
policies the Board establishes but we are not lobbyists. We are not out there lobbying the
legislature; we are geared within the scope to take on a lobbying
perspective. In terms of advocating your
agenda – absolutely – we are your managers and we are here to advocate
policies.
Mr. Hanks stated you participate in
a different arena than I do or Ms. Early or Mr. Hyche or Mr. McKune. What I am saying is if you get wind of
something coming down the pike we need to make sure that gets translated to the
appropriate parties. If Severn Trent
Services is not going to be doing the politicking and saying this is not a good
policy going forward this has additional implications, this needs to be
communicated to someone within this group.
It is one layer we need to have and maybe periodically have it as a discussion item so we can have the
coordination to say here is where we are and what are you hearing on that
side. We have all of these people in these different
areas but what we are lacking is bringing everything together and being able to
formulate a whole picture.
Mr. Goscicki stated one of the unique
advantages Severn Trent brings to the management services is we are also water
company and we are in the state actively engaged at various levels of working
with the various professional organizations so we are attune with what is going
on. I am attuned to what is going on and
have and will continue to bring those issues forward. I attended the water policy conference in
December in Broward County.
Mr. Hanks stated I just want to make
sure it is something intended to go forward as well.
Mr. Fennell stated I think we said
before every year we will review the scope of services.
Mr. Goscicki stated to clean this
all up what we would like to do is have the Board accept the scope and
associated fee and then direct me to work with your attorney to come back with
an amended contract.
Mr. Lyles stated with a scope of
services and a fee structure.
Mr. Hanks stated on page two you
identify you will assist the District
with the identification of significant policies and analyze their
administrative and financial impacts.
Who has the primary responsibility for identification of policies?
Mr. Goscicki responded it is our
primary issue on policy implementation. Research current and likely future trends impacting the District is item
one. We are telling you it is our
obligation to look at what is going on out there.
Mr. Hanks stated stormwater and water
and sewer.
Mr. Goscicki stated financial and
anything else.
Mr. Hanks asked with regard to the five-year
fiscal plan for funding the implementation of approved capital improvement
program should we be looking at longer horizons? The life expectancy of many of our plant
components well exceeds five years.
Should we be looking at something longer than five years?
Mr. Goscicki responded I think with
the five year planning we are talking about five year fiscal plans looking at
what we have identified and what the Board has approved as part of the
construction programs for the next five years – how are we going to fund or
finance that.
Mr. Hanks stated to clarify the
District is performing the accounting; Severn Trent is providing the checks to
make sure we are doing it correctly. When
you mention obtain financing if necessary and maintain proper fund accounting
procedures what do you mean by that?
Mr. Goscicki responded such as in
situations with some districts we had to implement short term financing. It is our responsibility with the bond
issuance you have bond counsel, attorneys, and bankers onboard.
Mr. Hanks stated so the coordination
is under the basic scope.
Mr. Goscicki stated if we got out
for another bond issue it would be an additional $15,000 fee per bond issue. If you go to Wachovia or SunTrust for a
$500,000 short term line of credit it is part of the scope. Bond issues have become a whole other
level.
Mr. Hanks asked is this applicable
to all of our consultants or service providers in terms of administrative,
managerial, engineering type of role when we get additional services requests
like the $15,000 or via a change order or some engineering services? I would like to see hourly back-up to justify
those additional costs. Is this the
appropriate time to introduce that into the scope of services or would that be
part of the direction?
Mr. Lyles responded I think that is
something they are telling you – you are not going to get with this scope of
services but in terms of asking this management entity that is going to be
providing that sort of oversight direct to Severn Trent and have them provide
it to you as what the Board now needs in order to have a comfort level with
those types of submissions that are coming to you as part of your monthly
packages.
Mr. Hanks stated we have a number of
contracts out there that are hourly service items. I would like to make sure we are getting the
right allocations to it.
Mr. Lyles asked is that included in
your base fee structure?
Mr. Goscicki responded the engineer’s
contract and other professional services are part of our responsibility with
this contract. We will be reviewing the
invoices, verifying the work has been done, make sure the billing rates are
consistent with what is in the work authorizations.
Ms. Zich asked can you put it in
your contract?
Mr. Goscicki responded I believe it
is in here.
Mr. Hanks stated I do not think we
have to have it specifically spelled out here.
Ms. Zich stated it would not hurt
just in case it came up later.
Mr. Hanks stated if we provide
direction to our manager that is what we would like to see or is our
expectation for future hourly work orders.
Mr. Lyles stated it might not come
from them; it might come from your accounting staff directly with oversight by
the manager. I think what you would
rather have is some feedback as to how Severn Trent proposes to accomplish the
task.
Mr. Hanks stated we are on the same
page for such as the stormwater study, where it was authorized for hourly or so
many hours per month. When we do not
have a fixed lump sum contract when we get invoiced for those hourly work
orders I want to see the hourly backup and person X, Y or Z worked on it for
this many hours and this is what they did.
We have to be able to marry it up to a tangible result.
Ms. Early stated I can provide
that.
Mr. Hanks stated I want to make sure
that is the expectation going forward.
This would apply to Mr. McKune as well as a surveyor doing hourly
services.
On MOTION by Mr. Hanks seconded by
Ms. Zich authorizing execution of an amended Management Services Agreement
between CSID and Severn Trent Services with modified scope of services and new
compensation structure outlined and authorizing Mr. Goscicki and Mr. Lyles to
review the contract and authorizing Mr. Fennell to execute upon final review was
approved.
Mr. Fennell stated congratulations to working out a good
scope of services.
Mr. Hanks asked where do we stand
with having someone else onboard? You
said last month you were getting close.
Mr. Goscicki responded we are
interviewing somebody next week.
FIFTH ORDER OF BUSINESS Discussion of Pension
Plan
Mr. Daly stated this is
the City of Coral Springs.
Mr.
Hanks stated I cannot get away from it; I had a meeting with a potential client
and he brings up of all things the City of Coral Springs.
Mr. Daly stated I should have got
this to you to look at earlier. The
first page shows what the other cities nearby are doing.
Mr. Hanks asked what is a 401A, an
FRS and a 457?
Mr. Zilmer responded the FRS is the
Florida Retirement System, it is defined benefits.
Mr. Hanks asked when we say defined
benefits that means?
Mr. Zilmer responded it means you
are going to get “X” amount of your salary for the rest of your life.
Mr. Goscicki stated you are going to
get 1.6% of your salary for every year you put into the system up to a maximum
of 30 years.
Mr. Hanks stated as long as the SBA
remains solvent.
Mr. Daly stated in last year’s
budget earmarked for this was 6%, which is in the pension plan but after a
second or third look at it; we increased it.
Mr. Fennel asked is it inflation
adjusted?
Mr. Zilmer responded after you
retire.
Mr. Goscicki stated the benefit
depending on the class of service the employees here if they put in ten years
would get 16% of their base pay upon retiring.
After six years you are vested and it is a percentage of the number of
years you worked times 1.6% and multiplied against the average highest five
years of salary is your retirement benefit.
Once you retire the benefit is indexed against inflation.
Mr. Fennell asked what is it that we
have now?
Mr. Daly responded we currently have
6%.
Mr. Fennell asked are we FRS?
Mr. Goscicki responded defined
contributions instead defined benefit.
The District is contributing 6% of an employees pay to a retirement fund
and the amount of the benefit they get is whatever their fund accumulates up
to.
Mr. Hanks asked what do the
employees want to do?
Mr. Zilmer responded the employee’s would
like the FRS. The problem with that is it is expensive. My understanding is if we went into the FRS
we are locked in. We can get out of it
but for all of those existing employees were enrolled in it at the time we have
to continue the contribution.
Mr.
Goscicki stated the challenge with the state retirement system is it is an
expensive system. You will find very few municipalities who join. Counties are apparently required to join
because of the way they are incorporated.
The reason your contribution per employee is the same regardless of the
benefit to the employee. You are putting in a fixed percentage, your unit of
government is going to have to contribute based on the number of employees but
you are also contributing for elected officials that are fully vested after
eight years and are getting 2.5% to 4% of every year of elected service. Police and fire are getting 2.5% for every
year of service. It is a big pool and
there a lot of other categories retiring at better benefits. For a District it is not a good choice. You could wind up contributing as high as 12%
to 13%.
Ms. Rower stated because of the fact
it is a benefit you are guaranteeing depending on how it is funded and what it
is doing you have to guarantee the municipalities what the benefit will be and
is why it fluctuates.
Mr. Hanks stated there is also a
voluntary 457.
Mr. Zilmer stated it is completely
contributed by the employee.
Mr. Daly stated it is almost identical to a
401K.
Mr. Hanks asked how does a city do a
401K?
Mr. Goscicki responded it is
probably a 457.
Mr. Daly stated I do find they have
a lot of plans.
Mr. Zilmer stated the 457 we have
now is something that is not shared by the employer. I try to encourage the employees to make
contributions of their own.
Mr. Hanks asked are we able to
encourage employees to put in own their own by providing a match?
Mr. Zilmer responded we can do that.
Mr. Hanks stated the City of Sunrise
has people who have been there; good people who have been there working and
then they get close to retirement age and then they get on the program and all
of a sudden one day the good people who have the experience are no longer
there. From a consumer side it just does
not seem like that is the way we want to go.
Mr. Daly stated I think the plan we
have right now is good and has had good returns in the last years.
Mr. Zilmer stated one of the
challenges we face particularly with the wastewater plant is the
retirement. When you try a training
program or bring the young people in to go through the whole process of the
internship and before you know it they are applying at Sunrise or Pembroke Pines
because they have a great retirement system and we lose them.
Mr. Hanks asked do you think they
are drawn to these other programs because it is not perceived as being taken
out of their pockets to contribute to the retirement plans?
Mr. Hyche responded it is just a
better pension.
Ms. Zich asked how many people a
year are we talking about?
Mr. Daly responded everybody is
looking for a job.
Mr. Hyche stated with operators it
is almost a domino effect. When one
moves a position opens somewhere, then that one goes, and that one goes.
Mr. Hanks stated it is a case of the
grass is always greener.
Ms. Zich stated so right now we are
not having a problem with that.
Mr. Daly stated right now I know of
two employees who are looking.
Ms. Zich stated with as many
employees as you have you will always have two or three people who are looking
elsewhere.
Mr. Zilmer stated finding a
water/wastewater operator is very difficult.
There is the time it takes to get them up to speed.
Mr. Hanks stated it looks like we
are well below Coral Springs or the City of Tamarac. Am I reading this correctly?
Mr. Daly responded I believe you
are.
Mr. Fennell stated you hire somebody
at $30,000, there is a 3% CPI but there is a 6% accumulation at the age of 65
so there is $206,000 in their retirement fund.
Mr. Hanks asked is that
contributions into it?
Mr. Goscicki responded it is
contributions with incentives.
Mr. Daly stated Mr. Goscicki’s
office put this together for us.
Mr. Goscicki stated no finance
people have looked at this.
Mr. Fennell stated what you are
saying is an annuity of some type with them paying $16,000 over the year and
19% of the annuity payment.
Mr. Goscicki stated the annuity
payment is 19%.
Mr. Fennell asked what is the
annuity payment at $20,000?
Mr. Goscicki responded your
consultant did a similar analysis and I thought their numbers looked a little
high so you have two different analyses here. The intent of the analysis is to
show the difference between the top set of numbers and the bottom set of
numbers, a 6% contribution versus a 20% and to give the Board some perspective
of how much retirement benefit is this – is it 70% of the persons salary when
they retire versus 20%. You can see in
your current situation depending on the numbers and what the rate of return is,
what the CPI is and what the return is. You are in the order of the employee’s
benefit starting at age 30 and putting 30 or 35 years of service they can
retire with a benefit of about 20% to 25% of their then base pay.
Mr. Fennell stated we also pay
social security.
Mr. Goscicki stated correct, they
would also be getting social security and whatever they put into a 401.
Mr. Fennell asked do they pay into
this fund?
Mr. Goscicki responded no, it is
100% the District.
Mr. Fennell stated with social
security it will probably be an additional $20,000 so at that time they are
really up to about $40,000.
Mr. Lyles stated hopefully, they
have other retirement.
Ms. Zich stated this would not be
the majority of their income, I would not think.
Mr. Fennell stated some maybe. With the Florida program do the employees
contribute to that?
Mr. Zilmer responded no, they do
have an alternative plan.
Mr. Hanks stated I know we are going
to be faced with turnover and a 401K they can take wherever they are
going.
Mr. Zilmer stated if it is another
qualified plan.
Mr. Fennell stated if they leave
after 20 years they take the amount of money in the plan with them.
Mr. Zilmer stated the plan we are in
right now calls for a five year vesting and that point they can actually keep
the plan or roll it into another plan or after a one year break in service they
can stop contributing.
Ms. Zich asked if they take it when
they retire, how old?
Mr. Zilmer responded 57˝.
Ms. Zich stated they are all about
59.
Mr. Fennell asked what is it you are
proposing?
Mr. Daly responded a 2%
increase.
Mr. Fennell asked which would do
what?
Mr. Goscicki responded essentially
increase the contribution by the District to the retirement benefit from 5% to
8%. The existing plan gives them about
20% to 25% of their base pay and if we bumped it up it would be 25% to 33%.
Mr. Daly stated these are the raw
numbers on the salaries.
Ms. Zich stated it went in at 8%
tentatively.
Mr. Hanks stated it looks like
Tamarac and Coral Springs have it staggered, so if you are there for seven
years you get the lower rate and if you are there over a certain period it
increases. Have you been able to
establish increasing the contribution has improved City of Tamarac and City of Coral
Springs ability to retain operators? It would bring us in line to the first seven
years and first five years with the other cities except for Tamarac they are at
11%.
Mr. Fennell asked how come we do not
match?
Mr. Daly responded this plan has
been here as long as I have been here.
Mr. Hanks stated with the voluntary
457 there is no authority to match if they are putting in as well.
Mr. Daly stated the only problem is
that it is difficult to budget because you do not what someone is going to
contribute.
Mr. Zilmer stated years ago Ms.
Archer thought about changing the plan so the employees choose their own electives.
Mr. Hanks asked what do you mean
with choose their own electives?
Mr. Zilmer responded do you want a
risk.
Mr. Hanks stated with the plan now
you are safe and secure and not making a choice so a person coming in at 30
years old gets the same investment as Mr. Fredericks or Mr. Hyche.
Mr. Daly stated exactly.
Mr. Zilmer stated we have a
responsibility and they are safe.
Ms. Rower asked is this a defined
benefit plan?
Mr. Zilmer responded a defined
contribution.
Mr. Fennell stated I can see where
this came from; at one point this was a start up entrepreneurial thing and different
people into this fund and some of the original owners as well as a few other
people were able to sell out for a fair amount of money. Right now the people actually doing the work
are still here and they did not get any benefits. As a small business owner they did not get a
part of the entrepreneurial spirit. Consequently
I do not think something is a benefit that is going to pay you 24% in 30 years
is not very good at all.
Mr. Hanks stated from the other
standpoint I am a small business person just as you are and whatever I put away
is what I put away for the future.
Mr. Fennell stated if this was a
real corporation we would have stock options and other kinds of stuff so they
could actually make money. In my opinion
I do think we need to do something and would like to look at a couple of the
alternatives. I would like to look at
matching – they put in 2% we put in 2%.
I would like to look at a matching plan and to see what it would
actually cost if we went to the Florida defined benefits.
Ms. Zich asked do you mean the
Florida Retirement System?
Mr. Fennell responded yes, it is a
defined benefit as opposed to a defined contribution. From their standpoint it is much better.
Ms. Zich stated it is going to cost
us a lot more money.
Mr. Goscicki stated the Florida Retirement
System is only good if you retire through that system. If you put in 10 years between the ages of 25
and 35 and then leave, your retirement benefit is based on the actual dollars
you earned. It is a system designed to
reward people who stay for 30 years.
Mr. Fennell stated my thought is a
person should be able to retire at 80% of their high five years. Take the 80% and subtract social security and
that is the net we should be trying to figure out.
Mr. Hanks stated we have to
recognize we have a finite resource here which is our revenues coming in and we
are just cutting it up different ways. I
would feel much better approaching it from the standpoint of lets provide additional
support to the employees by increasing the 457 contribution and keeping down
the administrative costs which we would encounter under the Florida Retirement
System.
Mr. Fennell stated I want to see it
spelled out in numbers. They need to be
contributing more and we need to get up to a point that looks like there is a
retirement.
Mr. Hanks stated I also think we are
harming the younger people coming in we are trying to retain by not giving them
the flexibility to make other investment choices.
Mr. Fennell stated whatever the plan
is we end up with has to give them some better choices as to what they can
actually do with the money in there.
Typically the type of plans with a number of choices -how much time do I
have left and there is appropriate bond mix investment types of programs for
that. My opinion is we need to look at
this again and we need to substantially increase our benefits. I think the employees need to substantially
increase the amount they are putting in.
If we went with Florida it would be a defined benefit and that is
great. If we go with the other type of
plan it is a portable pension.
Mr. Hanks stated if they stayed five
or six years they would get a benefit out of that.
Mr. Fennell stated I think we should
do something.
Mr. Daly stated we will put it on
the agenda for next meeting.
Mr. Fennell stated they need to
contribute to it. My goals are 80% minus
social security is what we should be looking at.
Mr. Goscicki stated 80% is pretty
high.
Mr. Fennell stated in the 50’s and
60’s before the 401K and what was sold is we would all be richer with
401K.
Mr. Hanks stated you can go back to
80% or whatever but no microwave, no flat screen TV, no cable, B&W with
only 13 channels.
Mr. Fennell stated a TV costs $300
or $400 in the 60’s and today is probably $3,000. Part of it has to do with the value of a
dollar which unfortunately the US has never taken a good advantage of and other
countries actually do look and say the dollar is a dollar is a dollar and we
are going to maintain it. Unfortunately
in the US and other businesses we have taken advantage of the inflation
rate. We need to look at ways we can
strengthen this and do something about it.
Mr. Hanks stated the numbers in the
analysis was $30,000. How on earth does
anyone live in South Florida on $30,000.
Mr. Fennell asked anymore comments
on this?
Ms. Zich responded I think it sounds
great.
Mr. Fennell stated it needs to go
both ways.
Mr. Goscicki stated the benefit of a
457, I have talked with a number employees, they assume their retirement plans
is giving a lot more. They have not done
a sinking fund analysis to see what it is going to be in 20 years and a lot of
them do not understand that they need to do some of their own. They will not do it by themselves and
creating a matching fund encourages that personal responsibility.
Mr. Fennell stated unless we go to a
defined plan I think that is the best we can do. After going through this
second recession we have gone through in the last eight years seeing them go up
and down is not a pleasant thing.
SIXTH ORDER OF BUSINESS Discussion of Five-Year
Storm Water Permit Renewal Program
Mr.
Daly stated this is for culverts.
Mr. Hanks stated these are for the
private developments.
Mr. Fennell stated the county came
to us and practically forced us to do this.
Mr. Daly stated I am under the
impression the county is actually charging $1,000 per permit, per five year
review. We spent $12,000 on this project
last year. The decision was made to take
it in-house. Take it in-house do some of
our own administration - sending letters, attorney’s request, et cetera.
Mr. Fennell stated at the time I
think we asked the question of how much it costs us to do that and think that
is how we came up with that.
Mr. Daly stated it would
self-funded.
Mr. Goscicki stated the challenge
that has come out of it is we have no clout as a District to enforce the
five-year permit. If the property owners
do not respond we do not have a lot of clout in terms of what we can do. This permit is really a construction permit
to allow them to tie to the system. The
intent of the five year renewal was to make sure, from understanding, they were
maintaining the infrastructure on their side so when they did it and it flooded
and we get the call saying why did my property flood we can point to why have
you not been maintaining your culvert to keep from flooding. It is a program that was set up to really
provide for a five year period to go back and review what they were doing and
make sure they were maintaining the infrastructure they put in place so the
system would work. It is really taking
on their responsibility, what we have seen is very little response at
CSID. NSID has a much better response
rate, it is different demographics.
Mr. Fennell stated the object is
still to make sure it will not flood somebody’s property. The county was pushing it because I think
they found a lot of areas had not been looked at for years and the drainage
systems were not responding like they were designed to. In reality, the way we do this is we tax
everybody a certain amount per household every year. What if we went and said you were supposed to
renew your contract, give this to us by a certain time we will do it and if you
do not we will add it to your tax bill.
Can we do that?
Mr. Goscicki responded I do not
believe we can. This is a special
assessment we are doing on the drainage side, I have to look long and hard and
want Mr. Lyles to have the opportunity to look at that differential assessment.
Mr. Lyles stated it is unlike our
water and sewer where we have a rate structure and we can provide a penalty or
accelerated charge, an efficiency benefit if you use less water or a penalty if
you use more water. We can do that
through the adoption of a rate schedule at a public hearing. This is not really a service as such this is
an assessment against properties for the benefit they receive for
drainage. Where are our clout would come
in is if you are not in compliance with providing the necessary certification
your drainage structure/culvert – if you do not comply with the county’s
requirement to recertify every five years and you are no longer in compliance
we are going to close it off and we will notify regulatory authorities you have
no drainage. This is the kind of thing
we may have not a financial penalty to impose because we do not have that
authority.
Mr. Fennell stated check on
that.
Mr. Lyles stated I will bring it
back for the next meeting.
Mr. Fennell stated if we are looking
for clout someway we either need to charge them for it or charge them for it
and attach it to their property and make it a question if they go to sell.
Mr. Hanks stated you do not want to
start getting into that side of things because each drainage depending on how
involved it is we are talking probably $1,000 minimum for the engineering
certification and then who knows how much on of these other companies is who
goes out and cleans it. Do we have other
opportunities to team up with some other regulatory body, be it the county or
the city, which has the ability to impose fines?
Mr. Lyles responded I think the
obligation the county has imposed on the District not on the individual
properties and is where we have a bit of a disconnect. You are the ones who have to comply with this
regulation and we are looking for a way to pass on the cost of compliance to
the property owners who actually benefit from it.
Mr. Hanks stated you are referring
to the cost to the client being the cost it takes us to go ahead to review the
paperwork that comes in from the property owners selected consultant.
Mr. Lyles stated we need to do a bit
of homework and get back to you in terms of what our options are.
Mr. Hanks stated if the storm water
renewal is taking place across the C-14 in Tamarac and Broward County has
regulations in place where they can impose fines. I am saying maybe there is some way we can
work with them in a cooperative basis to obtain better compliance.
Mr. Lyles stated I will be honest
with you; I have not given it a lot of thought in pretty much five years. Let me revisit the actual regulation and what
our responsibilities are.
Mr. Fennell stated you are saying we
need something different here.
Mr. Daly stated it is more of an
information item.
Mr. Fennell stated the idea was a good one today. Otherwise the county just pushed down on to
us something they could not do themselves. We still have the last issue with the city,
which we still need to go after.
Ms. Zich stated they are going to be
doing construction on University, coming into Coral Springs where the white
sign is by Shadowood. They put sandbags
to block it and then it poured rain.
Ms. Early stated they have to do
that.
Ms. Zich stated that is okay when
they are constructed but they have not started constructing whatever they are
doing there.
Mr. Hanks stated the same reason we
have to do the five-year renewal is the same reason they have to put those bags
there. It is a national legislation
called NPDES. The EPA put it out there
and it is designed to improve water quality throughout the country.
Ms. Early stated by backing up the
water the sediments are not getting into the catch basins.
NINTH ORDER OF BUSINESS Approval of December
Financials and Check Registers
Mr.
Hanks asked is there anything that should be brought to our attention on this? Anything unusual?
Mr. Goscicki responded your revenues
are up and your expenditures are down.
It is early in the fiscal year.
On MOTION by Ms. Zich seconded by Mr.
Hanks with all in favor the December financials and check register was
approved.
A.
Cash Flow Summary Report
There being no questions or
comments, the next item followed.
SEVENTH
ORDER OF BUSINESS Staff Reports
A. Manager
iv. Discussion of Boil Water Order
Mr. Hanks asked did anyone else get a call on the reverse 911 call?
Ms.
Rower responded my neighbor did.
Ms.
Zich stated I did not.
Mr.
Daly asked do you have a private number?
Ms.
Zich responded no.
Mr.
Hanks stated none of the Board members got calls.
Mr.
Daly stated on our website it says register for the city code red.
Mr.
Fennell stated I would like you to put on our monthly bill how to register for
a code red to see if we can get compliance up high in our area.
Ms.
Zich stated I did not know it existed.
Mr.
Hanks stated it is always a challenge remembering a website.
Mr.
Fennell stated first the code red has to be fixed so let us find a way to do
it. Let’s try to get 95%. Second thing is when the power goes down this
building goes down and when this building goes down, our telephones go down and
that is a huge issue.
Mr.
Hanks asked within any of our improvement plans do we have any provisions?
Mr.
Hyche responded there is another which goes directly to the water plant. I had already sent it to the City of Coral
Springs for the contact information in case Mr. Daly or I cannot be reached at
this building.
Mr.
Fennell stated we need a way, whether it is an answering service or something,
that if we do get cut off where we have a message for people calling in about
what happened. I am not even sure if we
have power at this building if 500 of them called in at one time it would flood
the system. I am looking for something
for an emergency type situation and I do not know what it is. When you people are calling in you can
automatically put up something so they can understand what happened. You also do not want it to block out normal
communications in case we have to get in and out. I know we have back up cell phones but once
you get inundated like that it takes down your phone system and you cannot call
out either.
Mr.
Hanks stated you called me at the office.
Mr.
Fennell stated we would like to be noticed of this.
Ms.
Zich stated I had people ask me also what was going on.
Mr.
Fennell stated obviously we have a problem with communications that we have
still not fixed. I would like you to
look at calls coming in, how do we get emergency messages every place and we
still need a phone system. We have an
electrician on staff, why don’t you immediately figure out how to take one of
our portable generators and put in bypass switching gears so you can get the
building up and going.
Mr.
Hanks stated for essential components.
Mr.
Fennell stated this our electrician can do within a week. We have portable generators so let’s take
care of ourselves right away. What other
things should we do for communication?
Mr.
Goscicki responded I think the internal communication worked pretty well. We need to update the emergency call list to
make sure we have current phone numbers for everyone including the Board
members and staff. We did miss a few
people we did not have phone numbers available for. They were available on the computer but no
one could get on the computer.
Mr.
Fennell stated look at the phone system again, get emergency power here. I know you could contact each other with
radios and such but we did not have good information to the general public and
we need to have that happen.
Mr.
Daly stated the city did help.
Mr.
Fennell stated but unfortunately they took off the scrolling message for awhile
and we had to call them again to get it going.
Mr.
Daly stated we contacted the paper and news media.
Ms.
Zich asked how bad was the water?
Mr.
Hyche responded there was nothing wrong with it. Our pressure was there but below the
standards for compliance. 22 PSI is a
mandate for boil water in case of filtration into the pipes and
connections.
Mr.
Fennell stated we thought we had a backup system.
Mr.
Hyche stated the backup system did work, however, because of the feedback it
moved the breaker in front of the plant and caused another feedback through the
leg into our transfer switch. Our
transfer switch is very old, it is not a smart switch and it was reading three
FP&L legs coming in. As soon as it
switched back to FP&L it realized it did not have the power and slammed
back the generator power.
Mr.
Fennell stated that can happen again.
Mr.
Hyche stated for $1,500 I can have a
company put a monitor on the system.
Mr.
Fennell asked have you gotten a definite something from FP&L saying what
the problem was?
Mr.
Hyche responded no, I have not and I probably will not.
Mr.
Fennell stated I would like to send them a letter requesting it. I do not really need them to take the blame I
want to make sure we get to the cause of the problem and that it has been
solved. We have an automatic backup system
and we spent a lot of money inspecting and to have it flip flop back and forth. I certainly do not want to try to turn on and
off 100 horsepower engines three or four times a second.
Mr.
Hyche stated when it was running on FP&L they were running two legs.
Mr.
Fennell stated they were missing a phase.
Mr.
Hyche stated one leg blew at the transformer.
Mr.
Fennell stated when I asked that guy about the transformer he said the voltage
was off.
Mr.
Hyche stated it was by the gate.
Mr.
Fennell stated what blew their fuse – you have to find out why the fuse blew
and why.
Mr.
Hanks asked are any of our components damaged as a result?
Mr.
Daly responded we have a damaged air conditioner as a result.
Mr.
Hyche stated two compressors.
Mr.
Hanks asked generator wise are we still okay?
Mr.
Hyche responded yes.
Mr.
Fennell asked how did your computer systems do?
Mr.
Daly responded I had taken the computer system down the day before.
Mr.
Hanks asked do we need to go ahead until FP&L figures out what the problem
is shut it down and go with generators?
Mr.
Skehan responded there will be another when the transformer is being
replaced.
Mr.
Fennell asked are they replacing the transformer?
Mr.
Skehan responded they will be.
Mr.
Fennell asked why?
Mr.
Skehan responded because of the amount of power and the age of the
transformer.
Mr.
Fennell stated I want the letter sent; I will sign it if you want me to or it
can come from any member of staff. We
need to know exactly why that happened.
We obviously know a symptom of the problem which is stuttering supply
coming in. When you three phase
electricity it is very tricky, you lose one you still have two.
Let’s
get the transfer switch in, the monitor here and you said we can do something
if they turn on and off.
Mr.
Hyche stated a phase monitor.
Mr.
Daly stated we would like to do a computer program for the website. We need licenses for user’s offsite.
Mr.
Fennell stated we certainly need to have it for the command bunker. You have to be able to give them that type of
mass communication output so if you need another license, website or computer
over there. The only other thing I would
suggest along that line if there is a way for you to feed in pre-arranged
things or videos that will automatically go to Coral Springs. You hit a button and it pops in what to do
for a boil water order. Otherwise there
has to be somebody there who knows how to put them in.
Mr.
Hyche stated I do not know if the city will allow us to tap in.
Mr.
Fennell stated if not then we can at least send them files they can put
in. We need a list of prearranged public
relations memos that covers every emergency and a list of all media contacts,
and all the emergency numbers for audio, paper and video.
i.
Monthly Water & Sewer Charts
There being no questions or comments, the next item followed.
ii.
Utility Billing Work Orders
There being no
questions or comments, the next item followed.
iii.
Customer Satisfaction
Mr. Fennell stated I saw a nice memo.
Mr.
Daly stated she has been here25 years.
Ms.
Zich stated and she is still positive, good.
Mr.
Fennell stated thank you, Dottie.
B.
Attorney – Status of Special District Bill
Mr. Fennell stated we
discussed the letter to Senator Ring.
Mr. Lyles stated the
first half of that item just to close the loop on this and make it a matter of
record. The bill I had told the Board
about previously at the public hearing to adopt the bill it was withdrawn by
Senator Ring. He did make comments that
he say its problems/uses with some special districts and how they function and
handle their finances, it was not directed to anyone in particular but he did at the end of
his comments withdraw the bill so there is nothing happening in Tallahassee by
the delegation with respect to special districts for this session. This is the first time in a long time that I
think we do not have to watch what is
happening in Tallahassee. Of course we
will keep an eye on what is happening generally but we do not have a particular
piece of legislation aimed at us or by us this year to be concerned about.
Mr. Fennell stated I
keep wondering if we should put our bill back in.
Mr. Lyles stated it
really is not timely to do it after the public hearings have occurred but that
is not to say we could not go back next fall or in eight or nine months when
local bills are to be pre-filed with the delegation. It is going to require in the governor’s
estimation some type of referendum mechanism.
We may want to have some discussions at the Board level going forward in
this calendar year as to whether or not there is some way to accomplish
it.
Mr. Fennell stated
there is – we have to get 20% of the signatures.
Mr. Lyles stated no,
through the legislation itself. We can
look at a different kind of bill if you would like to have us remold and
reshape it both locally and with our special counsel in Tallahassee to have a
better chance of getting past the governors’ veto.
Mr. Fennell stated we
need to do something still, I think, to take some positive action toward making
ourselves more democratic whether it is
updating to a 191 or something like that or whatever the newer district
is.
Mr. Lyles stated
Chapter 190 CDD is another thing you might want to have a workshop session
on. Special districts that already exist
can file a petition to convert to a Chapter 190 Community Development District.
It is a five member board, elected by
the voters and the normal statutory bidding thresholds.
Mr. Fennell stated
that might be a better approach. I still
think it is something we should do.
Mr. Goscicki stated a
workshop.
Mr. Lyles stated I think a question and answer
sort of discussion as opposed to an outline which would raise more questions
than it would answer.
C.
Engineer – Projects Status Report
Mr. Skehan stated this is all of the capital
improvement projects and you will see there are four of them – the nano filtration
plant, wastewater plant A & B, monitoring well project and the Sullivan’s
Handling construction is taking place right now. Working from the top down on the nano filtration
plant we have just finished with the 30% deliverable, you will see a schematic
of the 30% design report. Our plan is to
meet with staff next week to go through and collect comments. This is the point where we fix the project
and approach how we will act on the rest of the project. If there are any changes we need to take in
the course of design or switch directions this is the time before we move on to
the 60%. As you can see from the
schedule to have this complete in the next six months or so.
Mr. Fennell stated you
will have the design complete.
Mr. Skehan stated yes.
We will be at a significant point by this time next month – we will want to
have the design approach, what the building will look like from the exterior,
and we have suggestions and 3D model as to how and what it would look
like. One of the suggestions Mr.
Goscicki made today when we were chatting about this was to provide an
executive summary for this document. We
will work to get it provided and it will be part of the record so the Board
will not have to try to go through the whole document. The rest of the project this time next year
will be in construction at that point it will be a two year construction
project. As we talked earlier it ties
into how funds will be expended throughout the course of the project. The smaller percentage of the spending will
be taking place up front this first year and thereafter when the construction
begins the more significant spending will begin to take place.
The second project
Replacement of A & B, this is actually Plant F also. We are in early stages of our design. We had some people out who met with staff also a week or so ago to
walk through the plant confirming flows and loads, the effluent coming into the
plant so that the design phases we are looking at which is plan P
substantiating that to make sure everything moving forward is going to be on a
good basis and on sound assumptions based on what we have.
The one we have going
on right now is #4 the solid handling construction, it is the ongoing project.
Mr. Fennell stated
that is coming pretty quick.
Mr. Skehan stated the
project was originally scheduled to be completed right about this time. If you recall some of the early permitting
issues with the site drainage played a part in the contractor not being able to
start construction in a timely fashion.
We will have some delay related to the blower issue we discussed at the
last meeting. We are waiting to get an
updated schedule from the contractor which will come with their next pay
request, but in discussions with them it is probably July or August. We have just finished reviewing the blower
submittal, and from what I understand it was not exactly up to par so the
contractor and sub-contractor need to tighten things up a bit. Once we get that resolved we have 10 to 12
weeks delivery time once the blowers are released. If we release next week the blowers will be
here the beginning of May, two months installation and substantial completion
would be July to August timeframe.
One of the things we
discussed earlier today with Mr. Daly and Mr. Goscicki was up until this time
they had done a fair piece of preliminary work evaluating what the situation
was with the monitoring well, the dry zone monitor well associated with the
injection well. There is a leak in the
tubing into the lower zone and up until this time the preliminary work we had
done was to try to construct a single zone monitor well. The cost of that was around $800,000
approximately. However, what we have
found in the last couple of months in and around the South Florida region there
are two other monitor wells similar to this that are ending up with some
problems and our recommendation is going to be to move forward with a brand new
dual zone monitoring well rather than a single zone well. With the three zone well there is a small
tubing, a 2’, a 6’ and a 12”. We know
the 2” has gone bad, it has holes in it.
We do not know the condition of the 6”; we cannot test it right
now. The recommendation is rather than leaving
anything to speculation as to what may take place in the future, the best way
to protect the District’s future with this money and what we are going to
invest in the capital for replacing this well is constructing a dual zone well,
instead of a single zone well. It will
cost about $1 million to construct a dual zone well. It is a requirement the DEP has and if you
recall this goes back a little bit in time.
Some of this was discovered when we were doing the mechanical integrity
testing. Right now the best approach, we
feel, for long term is a dual zone well.
We are working forward right now and suggested to staff we would be
bringing forward an amendment to the existing one for finishing up this work,
having a meeting with the DEP next week to make sure they are onboard before we
go any further with how this work should take place and to make sure we have
their concurrence and be able to draft a work authorization amendment to move
forward with the rest of the work. Some
of this is becoming a compliance issue with DEP and Mr. Hyche had the DEP visit
a couple of weeks ago and they are anxious to see something moving
forward.
Mr. Fennell stated $1
million for a monitoring well that does not do anything but monitor our other
well. There is a logic here I am having
a hard time with. We are a $10 million
company spending $1 million on monitoring.
Mr. Goscicki stated it
is a part of wastewater treatment.
Mr. Skehan stated the
general concept of the monitor well is to demonstrate your ejection interval
for your effluent. What the regulations
want you to do is monitor so there is no vertical migration of effluent up from
3,000 feet to 1,800 feet where the underground source of drinking water
is.
Mr. Fennell asked how
many millions of dollars would it cost us to clean up the water to dump it in
the canal?
Mr. Skehan responded
you would be building another filtration plant that is the equivalent to the
cost of the nano filtration plant, which another $20 million.
Mr. Goscicki stated
you would have to bring it to better than drinking water quality.
Mr. Skehan stated you
would be talking about a membrane plant and probably carbon filtration at the
tail end of the plant. It is being done
in a number of different places – California, Nevada, Arizona and a lot of
places.
Mr. Fennell stated we
have a limit of money. $1 million is a
lot of money to spend on monitoring.
Mr. Goscicki stated
because of these kinds of issues where they are saying you cannot get your
cheap water anymore you have to go to alternate water supplies. One of those alternate water supplies is
reclaimed water. Current treatment costs
you about $5 per gallon; it would be roughly be $10 to $15. We are fortunate that we need very little
additional capacity. NSID are in a serious
situation where they may have to even though they have a treatment plant that
is permitted for seven million gallons per day they have been only using 3˝
million gallons and the Water District is telling them that is all you are
getting off this until you figure out where you want to put the other 3˝.
Mr. Daly stated the sewer brings in
about 3.9 million.
Mr. Fennell stated it does not make
a whole lot of sense. What are they
going to do?
Mr. Skehan responded deep injection
wells. The cost of an injection well
system is averaging around $6 million now.
Mr. Fennell stated the smart thing
to do would be to let some natural filtration go.
Mr. Skehan stated then it has to
meet certain nutrient levels. It is certainly something that has been tossed
around.
Mr. Fennell stated we are committed
to where we are going.
EIGHTH ORDER OF
BUSINESS Supervisor
Requests and Audience Comments
There not being any, the next item
followed.
TENTH ORDER OF BUSINESS Adjournment
There being no further business,
Glen Hanks Robert
Fennell
Secretary President
MEETING NOTES:
FEBRUARY AGENDA