MINUTES
OF MEETING
CORAL
SPRINGS
IMPROVEMENT
DISTRICT
The regular meeting of the Board of
Supervisors of the Coral Springs Improvement District was held
Present
and constituting a quorum were:
Robert D. Fennell President
Karl Miller Vice President
Bill Eissler Secretary
Also present were:
Rhonda K. Archer Finance
Director
Donna Holiday Recording Secretary
Hal Anderson Attorney
Roger Moore Engineer
Mr. Fennell called the meeting to
order and Ms. Archer called the roll.
SECOND
ORDER OF BUSINESS Approval of the
Minutes of the
Mr. Fennell stated that each Board
member had received a copy of the minutes of the
There not being any,
On
MOTION by Mr. Miller seconded by Mr. Eissler with all in favor the minutes of the
THIRD
ORDER OF BUSINESS Public
Hearing to Consider the Adoption of the Water & Sewer Budget for Fiscal
Year 2003
Ms. Archer stated everyone received
a copy of the budget with the latest changes.
Page one of the summary budget shows projected revenues for the next
fiscal year and also shows the adopted budget for this year and projected
actual at year end. We are quickly
approaching build-out of our system. We
have a small amount of vacant parcels left in this District and as such we are
going to start seeing a big reduction in our meter fees and connection fees
which are one time charges to new connections to the system. At the same time you will see that being at
build-out we are at stabilization and our build-out revenues are going to be
shown against our build-out expenditures and we will come to a point in time
where we will have enough operators on board so that the revenues are
supporting the expenditures and we are not going to have to have rate increases
and even though Mr. Moyer has indicated that we may be able to reduce rates, we
are spending a lot of money on renewal and replacement and I struggled a little
bit when I put this budget together for personnel that I felt that we should
hire such as operators and field personnel that we were not able to hire this
year because of the upcoming costs so that we make our debt coverage required
by our bonds. We struggled keeping this
budget as tight as we could without increasing rates and that is what is before
you today, a budget that covers our expenditures for the next fiscal year with
conservative revenues that we expect to receive and without increasing rates.
The debt service portion reflects
the bonds as they are today before we do any refinancing. Ms. Kiser called and will be here shortly for
a presentation on the bond resolution later in the meeting so that we can move
forward with the refunding of the bonds.
The interest rates are still very good and there will be a nice savings
each year in this line item once we do the refinancing. This budget does not reflect that refinancing
today, this reflects the bonds as they stand right now and still we will meet
our debt coverage requirements.
We show a reduction in the
administrative portion of the budget and that is reflective of our historical
costs that we have been experiencing.
Even though some of the personnel costs have gone up, we have done a
restructuring of the contract with Severn Trent for two of the employees
provided through Severn Trent versus employees on our payroll. We decided to move two employees back onto
the CSID shared with North Springs payroll and that is our H.R. Director and
our Utility Billing Manager because the bulk of their time is spent in
combination of
We have also reduced legal fees
based on the actual that we expect to incur this year and engineering
fees. Any legal and engineering costs
involved in the bond refinancing will be paid out of the bond issue and not out
of our operating expenses.
There was a slight drop in the audit
fees. Accounting, finance and management
contract has gone done significantly but that is made up for in personnel
costs.
We are experiencing a big increase
in health insurance and general liability insurance. Health insurance went up about 38% last year
and they predict the same again this year.
We started looking at another company and we are going to make a change
and make a change in some of the employee deductibles and things like that. They are getting hurt because they carry
dependent coverage as a payroll deduction and because those prices are going up
so high, higher than their salaries are going up, it is a big out of pocket
expense for them for dependent coverage.
We are trying to increase the deductibles to keep that dependent coverage
reasonable and affordable for the employees.
This budget represents the worst-case scenario and we hope to bring it
down lower than what is shown if we can successfully change to a new company. The problem is when you change to a new
company, you have good rates for a couple of years and then they go up
again.
The rest of the budget hasn't
changed too much on the administrative side.
We project total expenditures of $592,942 against last year's $686,548
for administrative costs.
Plant operations have gone up, most
of that is related to personnel and the number of operators that we need to run
the plant facilities that we have. The
maintenance costs have gone up a little bit because once the expansion is completed
we need to provide preventative maintenance.
The other contractual includes additional costs related to the
maintenance, sludge hauling projections, and chemical feed system. Also provided in this budget that you haven't
seen in the past are the security operations for the plant site. That was the major jump in this budget. I don't think we have seen the end of
that.
Mr. Miller stated we talked years
ago about the income that we were getting because Mr. Moyer does work for other
Districts out of this facility. Is that
in this budget?
Ms. Archer responded a couple of
years ago we made a change and instead of the money coming into the District
and Mr. Moyer paying all the bills out of that money for other Districts, we
came up with a lease agreement. We
actually lease this office space from C.S.I.D. and that revenue is in this
budget. The District receives $40,000 a
year for this office building. Also
under the contract cost, the accounting and finance and management any shared
employees we give you a credit against those costs so you are only paying the
net of that, you are not paying the gross management fee.
Ms. Archer stated in this budget we
are closing down the lab. That is
something we did about 60 days ago. The
reason is we only had one lab operator and she said the requirements for
keeping the lab certified took up 40 hours a week, every week. She did not have enough time to actually run
the tests that we needed her to run because she was so busy doing all the tests
she had to run to keep the lab certified.
She needed us to hire help for her.
Once we started looking into the pros and cons and the costs, it was
more cost effective to contract with an outside lab that has a large staff to
keep their lab certified. If we only
have one person and if she spends all of her time keeping us certified, she
isn't doing any of our tests. We started
farming out some of the tests that we didn't have the equipment for and then
she decided to leave and instead of replacing her, we closed the lab. It made more sense that way.
Mr. Eissler asked didn't we just
build a new lab?
Ms. Archer stated that is the lab
they need for their hourly tests that they do all day on the water. That is not a certified lab, it is a regular
water and sewer plant type lab.
Mr. Fennell stated there must be lab
expenses that we have to pay.
Mr. Archer stated under plant
operations, water quality testing is $75,514 and it went up just a little bit
over the prior year which was $70,415.
That should cover our water quality testing for the year. We were already sending some out and doing a
few inside.
Mr. Fennell stated for $75,513 we
will be able to do the job that was $140,000 before?
Ms. Archer responded that is the
budget they gave me.
The difference between the plant and
field operations, plant is everything within the fence and field is outside;
the distribution system, the sewage collection system, the lift stations, all
the things outside the plant site. The
men installing the water meters, inspections on new construction, anything outside
the plant site is considered the field.
Mr. Fennell stated I thought we were
going to continue with the re-lining program.
Ms. Archer responded the last time
we talked about it, we decided to take some time to evaluate the benefits we
are receiving from the program to see if over a period of time reflected a
reduction in the infiltration. Because
of the money we are spending on the plant site and other areas, I don’t see
that we have the funds this year unless we take it out of retained earnings.
Mr. Fennell stated we spent a
million and a half dollars on that and what was the return?
Ms. Archer stated we budgeted it but
we didn’t spend it. We decided at the
beginning of this fiscal year that we were going to wait for a year and
evaluate the results.
Mr. Fennell stated we did replace a
lot.
Ms. Archer stated that was in the
prior year. We can ask Mr. Moore to give
us an update on the comparison on the year prior to doing that and the last
couple of years.
Mr. Moore stated that will come from
the records we are keeping now. That is
why we suggested not to do any more this year.
We just completed a year’s record.
Ms. Archer stated this year has been
typical as to the amount of rainfall. In
prior years we had a drought that skewed the numbers. I also asked Mr. McKune to update the
construction schedule and our future requirements.
Page 5 is the total operation and
maintenance expenditures projected at $5.9 million against last year’s $6.5
million. Total expenditures in all
departments is $8.4 million against last year’s $9 million. Our proposed change from the prior year is a
deduct of about 7%. The surplus
projected is $264,903 that gives us 111% coverage. Our bond requirement is 110% coverage. Out of the $264,903, $200,000 will be deposited
into our renewal and replacement fund that is a requirement under our trust
indenture that we fund that at $200,000 a year up to $1 million and we have
eaten into that so much lately, it is down to about $300,000. We still have our retained earnings.
I look at our rates as what we need
to be able to fund our renewal and replacement each year and keep things
operating. The rates are right where
they should be. The preventive
maintenance programs we are putting together will help with the cost of repairs
in the future.
Mr. Fennell opened the public
hearing and there being no comments from the public, the public hearing was
closed.
On
MOTION by Mr. Miller seconded by Mr. Eissler with all in favor the Water and
Sewer Budget for Fiscal Year 2003 was adopted.
FOURTH
ORDER OF BUSINESS Acceptance of the
Audit for Fiscal Year 2001
Ms. Archer stated the audit is for
fiscal year ended September 30, 2001. On
page 3 of the Independent Auditor’s Report it states, the information in this
report has been subjected to the auditing procedures applied in the audit of
the general purpose financial statements and in their opinion is fairly
presented in all material respects in relation to the general purpose financial
statements taken as a whole. They agree
with the numbers that we provided them and as stated in this report. On page 23 is the compliance and internal
control letter. Under compliance they
state that the results of their tests disclosed no instances of noncompliance
that are required to be reported under Government Auditing Standards. If they noted any immaterial matters of non
compliance they would report that in the management letter that is a part of
this audit report. Under internal
control, they noted no matters involving internal control over financial
reporting and its operation that they consider to be material weaknesses. The management letter is on page 25. There
were prior year findings and recommendations.
The prior year findings were that cash balance in the checking account
was over $1 million and does not earn any interest and they suggested that we
invest that money and we said w would determine a reasonable balance to keep in
the account and invest the rest. Their
management comment for this year was that we invested the money and we put a
sweep on the checking account so that we would be investing all the money. We would sweep it out every night and invest
that money and it would sweep back in every day based on the checks that we
would write. The auditor said that is
not compliant with the investment policy that we adopted because the sweep
account is invested in repos and repos are not as good a security as the other
investments that they have listed. We
had to get rid of the sweep account because of the repo situation. Basically they recommend that we add that to
our investment policy or not invest in that type of account. We are investing in items included in our
investment policy that is basically the State Board of Administration which
still gives us same day liquidity.
Mr. Miller stated on the issue of
paying expenses for other Districts and getting reimbursed, Severn Trent has
taken over billing, are they charging us to do that?
Ms. Archer stated we used to run all
of it through C.S.I.D. and there was always a delay in getting paid. Now, all of that runs through Severn Trent
and it never goes through C.S.I.D.’s books and Severn Trent carries the
receivable on their books. The lease agreement
covers use of this building by other Districts and you are not out of pocket
anymore for any expenses such as photo copies and postage and things like that,
that you used to front and then get paid back from these Districts. You used to carry the receivable on your
books but now Severn Trent has that liability.
The fax machine and copy machines are no longer in your name and you
don’t have to bill for that. They have
all been transferred to Severn Trent.
You are not bearing the burden of that expense.
Mr. Fennell asked is it the same for
the computer?
Ms. Archer responded you don’t own
the computer. You still have first right
of refusal.
Mr. Miller asked the income from the
other Districts that we used to get, does it now go to Severn Trent?
Ms. Archer responded the income you
received, covered the exact costs. They
are not making a profit. They are
passing through the costs the same as you did, but you don’t carry that
liability anymore.
Mr. Fennell stated the bigger issue
is how independent is the District and how difficult would it be if we changed
management groups. The management group
changed on us. The office equipment and
computer are not ours anymore and our ability to perform is at issue.
Ms. Archer stated you still have
your own equipment except for your computer.
Your billing department only uses a fax machine for their needs. You have your own fax machine and North
Springs has their fax machine. You still
have a lot of your own equipment except for the computer. When we had to buy a whole new system and be
Y2K compliant, Mr. Moyer bought the computer so that all the Districts could
use it and benefit from the new software and it was less of a burden on you
because it was very expensive.
Mr. Fennell stated we look at
equipment and management. We should also
look at management transitions.
Ms. Archer stated originally when
they bought us out, your H.R. person and your utility billing person were on
their payroll but they both expressed to me concerns in the last year that they
think Severn Trent was trying to figure out a way to do H.R. out of Houston and
utility billing out of Sarasota and they wanted to go back on the District
payroll because they want to stay in Coral Springs and do the job they have
been doing all along. Part of this
budget puts them on your payroll so that Severn Trent can’t steal them away
from you and send them to Houston or Sarasota or lay them off completely and
have control of the utility billing. I
did that because it was best for C.S.I.D. and North Springs. They are the ones who keep the whole show
going. Utility billing is our main
source of revenue. We don’t want to lose
those employees.
On
MOTION by Mr. Miller seconded by Mr. Eissler with all in favor the audit for
fiscal year 2001 was accepted.
FIFTH
ORDER OF BUSINESS Consideration
of a Request for a Vacation of a Right of Way Lot 19, Block GG, Ramblewood
This item pulled from the agenda
SIXTH
ORDER OF BUSINESS Discussion of
Water Management Permit Renewal Policy
Ms. Archer stated you will recall
that about a year ago the County was trying to get a special act to requires
these Districts to adopt a five year water management permit renewal
program. At this time we issue permits
and we don’t have a renewal of those permits every five years. They recently wrote asking us what we did
with that and we told them the Board decided to have the engineers put together
a list of the magnitude of the permits.
We included in your agenda package a list of permits that go back to
1982 so that you could see the magnitude of the program. About a year ago we gave you a prototype
program to look at that was provided to us by another water control district in
the county that they already adopted for their renewals. They require a renewal of a permit every five
years that requires them to send their engineer out to do an inspection of the
system that we permitted against the plans and specifications versus what was
actually constructed versus what is in the ground and working today, to certify
back to the District that everything is in working order and as permitted and
hasn’t been changed. That is something
that will be at each permit holders expense.
One of the issues we talked about is that most of the permits were
pulled by a developer who sold the property to someone else and how do we track
down the current holder of the permit.
That is a big task. These permits
go back several years and identifying the current permit holder is going to be
a job.
Mr. Fennell asked do we have a
choice in this?
Ms. Archer stated the County is
trying to mandate that these Districts through the State adopt this
program. Last year the Governor vetoed
the bill and they are planning to take it back to the State again this year
unless they get some level of comfort that all the Districts in the County that
haven’t adopted this plan, will. It is
up to you. You can wait until the State
passes a bill or you can have us continue to work to put together a plan,
addressing the different issues such as the permits that have changed hands and
names over the years. You can authorize
us to start issuing water management permits as of today requiring a renewal, a
permit that expires after five years and the procedure to do that. It would require the permittee to contact us
if they transfer the permit to another entity and that sort of thing until we
are able to go back to all the older permits and get that permit going.
Mr. Miller stated the essence of
this is to make sure they are still in compliance with the recommendations the
engineers made initially.
Ms. Archer stated the difference
between our District and some of the older Districts is that we always had a
plan. When these Districts were created
there was a master plan of the interconnected drainage system before
construction of homes began. A lot of
the districts in Broward County were created after the fact when development
had already occurred and to build a drainage system around existing buildings
is a lot harder to do because you end up with enclaves that have no
drainage. Our system has always worked
and we send divers out to inspect the culverts to make sure they are not
blocked with debris and the system works.
Mr. Miller asked who has the burden
of demonstrating compliance with the permit?
Ms. Archer responded we are putting
the burden on the permit holder to have his engineer do the inspection and
provide us with a certificate that says that everything is as permitted. I provided you with a list of all the permits
issued from 1982. We will go through the
list and cross off the permits that are not for water management. I can have a list prepared that lists the
water management permits only. All the
structures that we permitted are on private property and we don’t have a right
to go on their property and examine these structures which is why we want to
put the burden onto the permittee and their engineers to certify back to us.
Mr. Fennell stated you can provide
the list to the engineers and have them go through it and determine which ones
should be checked.
Ms. Archer stated we can have the
engineers prioritize the list. There are
probably some things on the list that do not need to be reviewed.
SEVENTH ORDER OF BUSINESS Consideration of Construction Financing
Agreement with Stillato Properties, Inc. for Water Main Along N. W. 94th Avenue
Ms. Archer stated this is an
agreement we brought to you a couple of months ago and we deferred it because
the Developer requesting the agreement had not yet acquired all the
property. We have an area off of 94th
Avenue where the water line hasn’t been completed and needs to be extended for
a few houses and another section where the sewer line needs to be
connected. The water line needs to be
looped and the sewer line needs to be completed and they will then construct
homes. In the past we used to enter into
the Developer Funding Agreements and reimburse them out of connection fees that
we collect and they stood in line behind all the other connection fee
financings and subdivision line financings.
We are now at a point where we have paid all of those off and we still
collect connection fees from these properties and there is a stretch where we
want them to continue to put in the water and the sewer line to complete the
system, as part of the project they are starting. We are agreeing in this agreement to
reimburse them for the cost of completing our section of that system while they
are doing their section of the system.
It is an agreement that allows us to pay for it upfront rather than have
them do it and reimburse them for it down the road when the funds become
available because the funds are already available. We will pay our share upon completion and
inspection. They will dedicate their
portion of the system to the District.
On
MOTION by Mr. Eissler seconded by Mr. Miller with all in favor the Construction
Financing Agreement with Stillato Properties, Inc. for the water main along N.
W. 94th Avenue was approved.
Ms. Archer stated Ms. Kiser is with
us today to ask you to approve some documents related to the refinancing.
Mr. Anderson stated I spoke with Mr.
Lyles this morning and the documents are all in order and within the scope of
the prior authorization.
Mr. Fennell stated I see where there
are certain reports that have to be generated at certain times of the year.
Ms. Archer responded we do that
anyway. You will recall that at the last
meeting you hired the underwriter and bond counsel. I have been through all the documents and I
talked with Mr. Lyles before the meeting and he agrees we are ready to go.
Ms. Kiser stated when I met with you
last month we discussed the market environment and what that means in terms of
savings. We are still within those
parameters. I believe the present value
basis was about $570,000 representing over 6 1/2% of the amount of principal we
would be refunding. The savings are
still there. Ruden McClosky prepared a
summary that I can walk you through that summarizes the bond resolution which
gives your staff and consultants the authority to issue the bonds and
authorizes the President to award the bonds to the underwriter provided the
terms of the bonds are within certain established parameters. It does not require the President to award
the bonds, it simply gives him the authority to do so without having to come
back to a formal meeting.
The first section of the bond
resolution sets forth the authority of the District to adopt this resolution
which includes the District’s prior General Obligation Water and Sewer Revenue
Bond Resolution, the 1972 Referendum approval and other applicable law.
Section 2 sets forth various
findings including that a negotiated sale to Prager, McCarthy & Sealy as
underwriter is in the best interest of the District. This section also incorporates the provisions
of the District’s prior General Obligation Water and Sewer Bond
Resolution.
Section 3 authorizes the refunding
of all of the District’s outstanding General Obligation Water and Sewer Revenue
Bond Series 1978 and a portion of the District’s outstanding General Obligation
Water and Sewer Revenue Refunding Bonds Series 1992 consisting of the 2014 term
bond. You will remember from the last
meeting that a portion of the 1992 bonds are not callable so we could not
refund that portion. It authorizes the
issuance of the 2002 Bonds in the principal amount not to exceed $11 million
which will be secured on parity with the unrefunded bonds which is the 2010
maturity of the 1992 Bonds that is non callable and it authorizes the bonds to
be held in book entry system only with the Depository Trust Company which is
how all the bond issue registrations of the District and other similar
districts are held.
Section 4 confirms that the net
revenues of the District’s water and sewer system are pledged to payment of the
2002 Bonds as well as the full faith credit and taxing power of the District to
the extent that revenues are insufficient for that purpose, the same situation
as the outstanding bonds. There is
nothing different.
Section 5 appoints Wachovia Bank as
Trustee, Paying Agent and Registrar for the 2002 Bonds. This section authorizes the President of the
Board or his designee to enter into agreements with Wachovia Bank that may be
necessary to evidence its obligation to act as Trustee, Paying Agent and
Registrar, all very standard documentation.
Section 6 approves an Escrow Deposit
Agreement, substantially in the form attached as an exhibit with changes as may
be approved by the President or his designee in consultation with Bond Counsel
and authorizes the execution of the agreement on behalf of the District. Wachovia Bank is appointed as Escrow
Agent. The Escrow Agent provides for
securities consisting of direct obligations of the United States of America to
be held in escrow by the Escrow Agent for the period of time from bond closing
to December 1, 2002, the date on which the current refunding will occur. That is as soon as we can call the
bonds. The Escrow Agreement when
executed and delivered will provide for the irrevocable redemption of the bonds
to be refunded on December 1, together with a redemption premium of 102 for the
1992 Bonds. This section also authorizes
the District Manager to select the verification agent. The verification agent merely verifies the
sufficiency of this escrow that will be used to refund the bonds on December 1.
Section 7 provides that the bonds
will not be subject to optional redemption prior to maturity. This is because of the short maturity. Call provisions are typically 10 years and
the final maturity on these bonds is 2014 and there is no benefit having the
bonds subject to optional redemption. In
fact we will save 5 – 10 basis points by not doing that.
Mr. Fennell asked what interest rate
do you anticipate getting?
Ms. Kiser responded the last set of
numbers that I ran had an average coupon of 3.90%.
Section 8 provides for the President
and Secretary to execute and deliver the bonds.
Section 9 provides for the District
to deliver a certificate at bond closing which indicates the manner in which
the proceeds of the bonds will be applied which would be to refund the bonds
and pay for cost of issuance and that sort of thing.
Section 10 authorizes the negotiated
sale of the bonds to Prager, McCarthy & Sealy and approves the contract of
purchase between the District and underwriter substantially in the form
attached to the resolution which change is approved by the President or his
designee in consultation with the District Manager and Bond Counsel. This section also authorizes the President or
his designee to execute and deliver the contract of purchase subject to certain
parameters listed in Section 10 of the Resolution.
We will set the parameters that say
we will achieve net present value savings, that we will not extend the final
maturity and the par amount will not exceed $11 million. If we come back to you with only a 2%
savings, you, as President can say no, that us not enough. At the present time it is 6% savings. The general range for local government has
always been 2% to 4% savings and in a lower interest rate environment they will
tend to accept a lower present value savings because the likelihood of getting
those low interest rates in the future is low but we are above what I have seen
at the higher thresholds in terms of savings.
Mr. Fennell asked when do you think
the sale will occur?
Ms. Kiser responded that is the
process involved. The first thing we
have to do is submit a package to an insurance company and considering the
reserve account surety is with MBIA we will submit a package to MBIA. They will bid a premium for the insurance
policy and once we receive that feedback from them, then we can finish the
offering document because we have to include the information on MBIA in the
offering document, then we will mail it.
I am hopeful that I can get a package out this week to MBIA. I expect it will take two weeks to get back
to us which puts us in the second week of October, maybe we can mail something
then and with an insured transaction sometimes we are able to price with an
offering document only being out a week or two so by the end of October we will
be in a position to price the transaction and quickly close the deal.
Ms. Archer stated we are already
working on those things.
Ms. Kiser stated we have a skeleton
package ready to go.
Section 11 approves the preliminary
offering statement substantially in the form attached to this resolution. That is the document we will use to market
the bonds. This section also authorizes
the President to deem the preliminary official statement final, that the P.O.S.
ultimately used by the underwriter is complete in all material respects except
for pricing details of the bonds, interest rates and maturities. This section also authorizes preparation of a
final offering statement that will reflect the final pricing details of the
bonds. What is before you now is a first
draft and we will work with Mr. McKune to get the system information updated
then we will have the President deem that offering document final except for
the pricing terms and after we price, we will prepare a final offering document
which will be mailed to investors.
Section 12 approves a Continuing
Disclosure Agreement in substantially the form attached to this resolution with
changes that can be approved by the President or his designee in consultation
with bond counsel. This document is
intended to comply with relatively recent SEC requirements that the issuer of
bonds provide specified, national repositories with updates of certain
information in the final official statement to facilitate trading of the bonds
in the secondary market as well as provide notice of certain specified material
events. This section also states that it
is not an event of default with respect to the bonds in the event the District
failed to comply with the Continuing Disclosure Agreement, although the Trustee
and bondholders may seek specific performance of the District’s
obligation. This is standard.
Ms. Archer stated these are things
that we already do on our other bond issues that we have outstanding. We are required to keep the investors updated
on how the District is doing and they are interested that we make our bond
coverage requirements each year when we are budgeting and our actual
results. We provide them with copies of
the audited financials so that they know we are continuing to operate the system
as we committed that we would.
Ms. Kiser stated Section 13
authorizes the District Manager to obtain municipal bond insurance for the bond
and authorizes the President or his designee to enter into an agreement with
the bond insurer to set forth any requirements the bond insurer may have with
respect to the bonds. It also provides
that the bond insurer may consent to matters requiring bondholders consent in
lieu of bondholders other than certain specified matters.
Section 14 confirms the debt service
reserve requirement for the bonds and that both cash and a reserve account
insurance policy are currently on deposit in a reserve account. It also authorizes the District to deposit
its legally available funds, a debt service reserve account insurance policy or
a combination of both in the reserve account to satisfy the requirement for the
bonds in the unrefunded bonds.
This section also permits the
District to deposit a new debt service reserve account insurance policy to the
reserve account in substitution for the cash currently on deposit in the
reserve account.
Mr. Fennell asked is there any
difference in the reserve?
Ms. Archer responded they will go
down. We are going to insure all the
reserves.
Ms. Kiser stated we talked about
that. Right now you have $1.6 million in
a surety and $450,000 in cash and we are trying to determine whether or not it
made sense.
Ms. Archer stated we compare the
premium for the insurance policy versus our loss of earnings on that cash. Right now we are only earning 1.9% on our
money and if the premium is not more than that, we will weigh the benefits of
cash funding versus insuring it.
Mr. Fennell asked what kind of
account is it in?
Ms. Archer responded it is in a
trust account with the Trustee.
Ms. Kiser stated Section 15 contains
covenants to ensure the interest on the bonds remains exempt from federal
income tax.
Section 16 provides miscellaneous
authority to officers and representatives of the Board.
Section 17 indicates the District’s
prior General Obligation Water and Sewer Bonds remain in effect.
Section 18 provides for severability
of invalid provisions.
Section 19 provides that the
resolution will be effective upon its adoption.
Ms. Archer stated basically this is
what you need from the Board to keep things rolling.
Ms. Kiser stated we will update Ms.
Archer so that at your next meeting she can update you.
Ms. Archer stated probably on the
next agenda and maybe the one after that, we will have a line item that says
status of financing.
Mr. Fennell asked do you need
specific action today?
Ms. Kiser responded I need you to
approve this Resolution and I have another document that I need to have signed
which is a letter of representation with DTC, the District’s request that their
bonds be registered with DTC.
Ms. Archer stated just approval of
the bond resolution and the form of the attachments.
Ms. Kiser stated every attachment to
the resolution is in the form of.
On MOTION by Mr.
Eissler seconded by Mr. Miller with all in favor Bond Resolution 2002-5 and the
form of the attachments were approved.
On MOTION by Mr.
Miller seconded by Mr. Eissler with all in favor the President or his designee
was authorized to execute the Representation Letter to DTC.
On MOTION by Mr.
Fennell seconded by Mr. Eissler with all in favor Mr. Miller was named the
designated signor in the absence of the President.
EIGHTH ORDER OF BUSINESS Staff Reports
A. Attorney
There not being any, the next item
followed.
B. Engineer
1. Monthly Water & Sewer Charts
2. Update on Construction
Mr. Moore stated hopefully in the
next few weeks we will start the new wells in the park.
There not
being any, the next item followed.
There not being any, the next item
followed.
NINTH ORDER OF BUSINESS Supervisor's Requests and Audience
Comments
Mr. Miller asked what is the status of
getting the list of scheduled maintenance?
Ms. Holiday stated Mr. McKune was
supposed to give that report as well as the long range plan but he couldn’t be
here today.
Ms. Archer asked did he mention at the
last meeting that we purchased the maintenance software and we hired Mr.
Moore’s daughter to come in during the summer to input the equipment
information into the system so that we could start building a program where it
prints out quarterly we will have to maintain this and monthly this is
something we have to do and weekly this is something we have to do and
schedules the maintenance of all the equipment.
It schedules the maintenance of all the equipment.
Mr. Moore stated she has a lot of data
in now and is working with the employees to get familiar with the software so
that we can print out weekly and monthly maintenance schedules.
Ms. Archer stated she not only input
the information but is training our people how to use it.
Mr. Miller asked is there a way it can
print out a list of everything over $25,000?
Mr. Moore responded at this time we
don’t have all of the costs input, we basically have the maintenance
information and some of the replacement costs.
Mr. Fennell stated we need that
information, even if it is old costs, something is better than nothing.
Mr. Moore stated we are updating our
insurance information now and I am putting replacement costs on an insurance
form. I’m not sure that I can have that
by your next meeting but I will put that information into the maintenance
software.
Mr. Miller stated that is what we want
to have.
Mr. Moore stated we have had several
meetings on the long range plan and I think you will see the big ticket items
on that list.
Mr. Miller stated that is the most
relevant type information because when those items come up we will have to make
plans to take care of it.
TENTH
ORDER OF BUSINESS Approval of
Invoices and Requisition
Req. 117 payable to CSID $850.00
reimburse from Water and Sewer Renewal and Replacement
On
MOTION by Mr. Miller seconded by Mr. Eissler with all in favor the invoices and
requisitions were approved.
On
MOTION by Mr. Miller seconded by Mr Eissler with all in favor the meeting
adjourned at 5:40 p.m.
William
Eissler Robert
D. Fennell
Secretary President