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 Fennell President
William Eissler Secretary
Karl Miller Vice President
Also present were:
Gary L. Moyer Manager
Rhonda K. Archer Finance
Director
Dennis Lyles Attorney
Donna Holiday Recording Secretary
John McKune Gee
& Jenson
Roger Moore Engineer
Vivian Cerecedo Trustee
Denise Ganz Bond
Counsel
FIRST ORDER OF
BUSINESS Roll Call
Mr. Moyer called the meeting to
order at
SECOND
ORDER OF BUSINESS Approval of the
Minutes of the October 21, 2002 Meeting
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 Consideration
of Documents Related to the Refinancing
Ms. Kiser stated the purpose of the
refinancing was to refund all of the District's 1978 Bonds and a portion of the
1992 Bonds. The total amount refunded
was $8.6 million. We purchased municipal
bond insurance from a company with a AAA rating to
cover the principal and interest on the bonds for 50 basis points which is what
we assumed in our preliminary analysis.
In addition to purchasing the municipal bond insurance policy, we
purchased a debt service reserve fund surety.
A debt service reserve fund is something that your current bonds are
structured with and the bondholder required in the event of a shortfall in
revenue, the reserve is there to help pay debt service. That reserve is currently satisfied with an
existing surety and cash. MBIA agreed
for a premium of 3% of the cash portion, to provide a new surety for the entire
reserve and that freed up about $455,000 that was on deposit in the debt
service reserve fund. We felt that was a
reasonable and very competitive rate based on what we have seen for other transactions. We priced the bonds last Tuesday and ended up
with coupons ranging from 1.45% in June 2003 all the way to 4.08% in
June 2014. The total savings of the
transaction on a gross basis is $842,000 and on a net present value basis
approximately $730,000. That represents
about 8.45% of the principal refunded which was in excess of what we presented
to the Board in August. The overall
yield on the bonds is approximately 3.8%.
The cost of the surety was paid out of the cash released from the
reserve. Under "uses of funds"
is the amount used to call the bonds, a premium of 2% on the 1992 Bonds, the
1978 bonds were callable at par. There
is the cost of the bond insurance, the surety bonds and that resulted in a
total par amount of $9.12 million.
Mr. Moyer stated the $444,000 under
sources and uses of funds is primarily monies that came out of the debt service
reserve fund.
Ms. Kiser responded that is correct
except for the $11,000 that is the cost to purchase the surety.
Ms. Archer stated we had to covenant
to spend that money within a year from today which will be no problem with all
of the projects under construction.
Mr. Moyer stated although the net
present value is impressive all by itself, freeing up the $444,000 is in
addition to the $842.000. You are really
looking at the District having saved in this transaction $1.2 million.
Mr. Miller asked what action is
required of us today?
Ms. Archer responded you have
already taken all the action by authorizing Mr. Fennell to sign the documents
if it fell within certain parameters which it did. Mr. Fennell came in last week and signed all
the documents and we will ask you to close this afternoon and we will fund
Wednesday.
FOURTH
ORDER OF BUSINESS Consideration of
Award of Contact for the Purchase of Chemicals and Herbicides
Mr. Moyer stated we distributed a
memo in response to Mr. Miller's interest in the amount of herbicides we used
in the aquatic management of the District's canal system. It shows the number of acres that have been treated
and what we treated for. That is
informational and ties into the award of contract for chemicals and herbicides
that we are asking the Board to consider for use this year that are listed in
the bid tabulation in your agenda package.
The low bids are highlighted.
What we have done in the past is ask the Board to award to the low
bidder with the understanding that if one company cannot provide the herbicide
either because of shortage or time frames they cannot meet to coincide with our
schedule, that we can then go to the other bidders with the same bid. The advantage of doing that is that it keeps
them all in the game.
Mr. Miller stated we have dealt with
Helena Chemical before. Have we dealt
with the other two in the past?
Mr. Moyer responded yes.
On
MOTION by Mr. Miller seconded by Mr. Eissler with all
in favor the contract for the purchase of chemicals was awarded to the low
bidder in each category having the ability to order the chemicals from any of
the low bidders.
FIFTH ORDER OF BUSINESS Consideration of Surface Water
Management Permit for
Mr. Moyer stated you have the
engineer's letter of review in the agenda package. Based upon the Board's direction at your last
meeting we will add to the permit that it is to be renewed five years from date
of issuance.
Mr. McKune
stated this is an existing park and they are adding a retention area in the
southeast corner and they are adding an outfall.
On
MOTION by Mr. Miller seconded by Mr. Eissler with all
in favor the surface water management permit for
SIXTH
ORDER OF BUSINESS Continuation
of Discussion of Water Management Permit Renewal Policy
This item deferred until the January
meeting.
SEVENTH ORDER OF
BUSINESS Staff Reports
A. Attorney
Mr.
Lyles stated my efforts this past month have been primarily for the bond
issue.
B. Engineer
Mr.
McKune stated the schedule that I distributed covers
expenditures for the next two years. If
you will look in the middle of the first page, under "Required Immediate
Improvements" items 3 and 4 are two items that are very important from my
perspective. Item 3 is the backwash
basin and pumps to replace a basin that is at this time a hole in the ground
that overflows into the canal system and on an annual basis we go in with a
dragline and clean out the canal. We
would like to incorporate a new concrete lined basin with a more positive
pumping system that will totally capture all of the water and prevent it from
going into the canal. This would
normally be a part of the overall plant expansion but since our detailed plant
expansion will not occur for quite some time, I would like to break this item
out and incorporate it. This is for the
water plant. When we backwash the
filters it goes into the settling pond and we reclaim clarified water back into
the plant. I would like authorization to
start the preparation of plans and specs.
Item
2 is lightning surge protection and is something that has caused problems for
some time in losing telephone, and computers resulting from lightning strikes
directly on the plant site or nearby with surges coming in over FP&L
service lines. This is a quote we received
from Lightning Master. We spoke with
several firms and this was the most complete and cost effective quote that we
received.
Mr.
Miller asked how much of a problem has this been?
Ms.
Archer responded it has been quite a problem especially with our phone
system. Several times a year we are
getting hit by lightning and we lose our phones for a couple of days at a time
until we get equipment ordered and brought in and replaced.
Mr.
McKune stated all seven items need to be done.
Mr.
Fennell asked what are you asking for today?
Mr.
McKune responded I would like to do the force main
relocation by change order because this will require the contractor to come in
and work on the same pipes we are currently working on with this
contractor. This is based on a detailed
quote from the contractor that involves piping, temporary pumps and it is a
reasonable number.
Mr.
Lyles asked is that based on unit prices in the underlying contract to which
the change order would apply?
Mr.
McKune responded no, because that contract was a lump
sum contract.
Mr.
Fennell stated I propose you get bids on all three items.
On
MOTION by Mr. Fennell seconded by Mr. Miller with all in favor staff was
authorized to get bids on (1) lightning surge protection, (2) backwash basin
& pumps and (3) incoming force main relocation.
Mr. Moyer asked is there any status
on the permits and the City's willingness to issue them?
Mr. McKune
responded we met with the new assistant building official and the new
development director and she was very perceptive, and
understanding and appeared to be very cooperative.
Mr. Moore distributed the estimated
schedule for maintenance software.
EIGHTH
ORDER OF BUSINESS Supervisors
Requests and Audience Comments
There not being any, the next item
followed.
NINTH
ORDER OF BUSINESS Approval of
Invoices and Requisitions
On
MOTION by Mr. Eissler seconded by Mr. Miller with all
in favor the invoices and requisitions were approved.
Meeting adjourned at
William Eissler Robert
D. Fennell
Secretary President