MINUTES OF MEETING

CORAL SPRINGS

IMPROVEMENT DISTRICT

 

            The regular meeting of the Board of Supervisors of the Coral Springs Improvement District was held on Monday, October 15, 2007 at 4:00 p.m. in the District Offices, 10300 NW 11th Manor, Coral Springs, Florida.

 

            Present and constituting a quorum were:

 

            Bob Fennell                                                President

            Sharon Zich                                                Vice President

            Glen Hanks                                                Secretary

 

            Also present were:

 

            Dan Daly                                                    Interim Manager

            Dennis Lyles                                               District Counsel

            Sean Skehan                                              CH2M-Hill

            Daniel Bohoquez                                        CH2M-Hill

            Cedo DaSilva                                             CH2M-Hill

            Pete Colussy                                              CH2M-Hill

            Bill Barbaro                                                CH2M-Hill

            Doug Hyche                                               CSID Utilities Director

            Randy Frederick                                         CSID Drainage Supervisor

            Kay Woodward                                         CSID Accountant

            Jan Zilmer                                                   CSID Human Resources

            Brenda Schurz                                            Severn Trent Services

            Pamela Rower                                            Severn Trent Services

            Michael Scholl                                            Public Risk Underwriters

            Mark Grimmel                                            Hilb, Rogal & Hobbs

            Numerous Residents

 

FIRST ORDER OF BUSINESS                         Roll Call

Mr. Daly called the meeting to order and called the roll. 

 

SECOND ORDER OF BUSINESS                    Approval of the Minutes of the September 17, 2007 Meeting

            Mr. Fennell stated each Board member received a copy of the minutes of the September 17, 2007 meeting and requested any additions, corrections or deletions.

            Mr. Daly stated on page three, in the second to the last paragraph “we acquired more of our employees” should be “we required more of our employees”.  In the same paragraph, “we will get them on a CAD drawing starting with the City of Coral Springs” should be “we will get them on a CAD drawing and send them to the City of Coral Springs”.  On page six, in the second to the last paragraph the word “newspaper” should be “newsletter”.  On page nine, the word “approve” should be “prove.

            Mr. Hanks stated I have a follow up item in regards to the insurance as it relates to chlorine gas.

 

On MOTION by Ms. Zich seconded by Mr. Hanks with all in favor the minutes of the September 17, 2007 meeting were approved as amended.

 

THIRD ORDER OF BUSINESS                       Presentation from Mark Grimmel of Hilb, Rogal & Hobbs on Property Insurance, Question and Answer Session and Consideration by the Board to Change Insurance Carriers

            Mr. Daly stated at this time, I would like to introduce Mr. Mark Grimmel and Mr. Michael Scholl from Hilb, Rogal & Hobbs.  In our quest to save money for the District, we looked at everything we spent a large amount of money on.  I had the great fortune to meet Mr. Grimmel one day and we started talking.  Within a reasonable period of time, Mr. Grimmel re-bid our property insurance policy based on the companies he deals with.  Based upon his proposal, we recommend going with this organization.

            Mr. Grimmel stated not only do we try to improve the price, but we try to improve the coverage as well.  I provided to the Board a copy of our annual report.  We are a publicly traded firm with 120 offices nationwide and over 4,000 employees.  There are seven offices in the State of Florida.  I work in the Southwest regional headquarters, which is located in Coral Gables.  As far as my own personal expertise, I am an accredited advisor.  I have risk management and public entity risk management designations.  The coverages we provided in our presentation mirror the coverages in your current program.  We were brought late into the renewal process.  Normally we go through more risk assessment to determine the correct coverage levels for the District, however, we felt it was best to give you a comparison of the current program and meet the coverage levels. 

            With me today is Mr. Mike Scholl, Vice President of Underwriting for Public Risk Underwriters who manages the Preferred Government Insurance Trust (PGIT) in Lake Mary.  The program we are presenting today is through PGIT.  We provided a spreadsheet to the Board a few days ago listing a side by side comparison of the current program with Travelers, AIG and National versus PGIT.  There are three areas of importance:

                   Coverages are $1 million higher than the current program with no umbrella

                   Increased limits

                            Coverages to $3 million

                            Same amount of coverage in property, auto and general liability

                            $500,000 per occurrence limit for each crime incident

                            $500,000 limit for employee theft through Travelers

                   Windstorm perils

       Windstorm deductible of 5% and minimum of $500,000 per occurrence through Travelers versus $25,000 coverage through PGIT for only named storms.

            Mr. Fennell asked is the word “retention” used the same way as “deductible”?

            Mr. Grimmel responded yes. 

            Mr. Fennell stated I assume the sewer back-up coverage under the extension of coverage is in the case of someone suing us for causing a sewage backup in their home.  Correct?

            Mr. Grimmel responded this coverage is in place if the sewage backs-up into this office.  Sewage in a resident’s home falls under the general liability coverage.  Under general liability, we cover sewer back-ups for which you are negligent for.  There is no exclusion.  This is a common question.  The first page of the comparison is for your owned property.  The second page includes some of your liability coverage.

            Mr. Fennell stated thank you for looking into this.  I do not think we looked at our policy in my 15 years on the Board.

            Mr. Daly stated it is hard to do it.  When you gave me this direction, I called our existing insurance company and put them on notice and said “We will shop this and we hope you win.”  We called Mr. Grimmel and he provided this proposal.  Because of his expertise in the industry and dealing with similar companies, you should look at Mr. Grimmel and his company.  In addition, our current provider does not want to give us a proposal until 20 days before the policy expires because they do not want to give you time to shop around.  This is the tactic in the industry.

            Mr. Fennell asked when is this up for renewal?

            Mr. Daly responded the 31st of this month.  We literally obtained the price from our current provider on Monday and met with Mr. Grimmel on Tuesday.

            Mr. Grimmel stated I provided you with a list of what other water treatment districts are currently paying through PGIT.

            Mr. Fennell asked what does public official liability insurance cover?

            Mr. Grimmel responded this is commonly referred to as Directors and Officers insurance.  In the interest of time, we tried to summarize the coverages.  I am happy to answer any questions about this.  On the second to the last page is the bottom line amount.  Our estimate came out to be $92,000 less than what you are currently paying for this year’s renewal.  I think it speaks for itself.

            Mr. Fennell stated this is as much as we pay for our engineering or management firms.

            Ms. Zich asked how many claims did we have last year?

            Mr. Grimmel responded there were less than 10%.

            Mr. Daly stated in all honesty, this savings is close to our workers compensation insurance premium for the year, which we just paid.  This is a big decision and is not something I or any manager should take upon themselves to change.  This needed to go before the Board because something of this magnitude can have many repercussions if we make a mistake. 

            Mr. Hanks asked what about if anything is missing?

            Mr. Grimmel responded we went through this policy line by line.  This policy is structured differently.  Your existing policy has a $1 million umbrella.  The umbrella policy has a separate deductible and different terms and conditions.  We made every effort to meet the liability.

            Mr. Hanks stated it looks like you have the cost for the liability.

            Mr. Grimmel stated PGIT has 690 participating governmental members in the State of Florida.  Our in-force premium is $105 million.  We administer the program out of our office in Lake Mary.  This trust was created by and for governments.  It is run by a Board of elected officials from the membership.  The way I describe the program is the governments are getting together doing group purchasing.  They administer it themselves and take the profit.  Our job is to negotiate group purchasing deals on behalf of our governmental entities.

            Mr. Hanks asked how long have you been in business?

            Mr. Scholl responded the trust has been in existence since 1999.  HRH goes back 100 years.

            Mr. Fennell asked does HRH insure us?

            Mr. Grimmel responded Mr. Scholl’s group manages the trust.  I handle the retail end by representing the trust to Boards and other Special Districts across the state. 

            Mr. Hanks asked is this something Mr. Scholl as the underwriter shopped for?

            Mr. Scholl responded yes. 

            Mr. Hanks asked does the list of utilities show who they are insured with?

            Mr. Scholl responded yes.

            Mr. Grimmel stated it is not a complete list since we insure a couple of hundred cities, counties and other Special Districts.

            Mr. Hanks asked how do these companies compare in terms of their ratings?

            Mr. Grimmel responded every one of these carriers have an A and best A rating.  We will not work with anyone who carries less.

            Ms. Zich asked what is the highest rating you can have?

            Mr. Grimmel responded you can have A++ in insurance.  Our lead property carrier, AIG carries this rate, which is the largest insurance company in the world.  There are some carriers rating as low as A-.  The A rating is the outstanding rate.  Then it goes A-, A+ and A++.

            Ms. Zich asked what is the lowest rating an insurance carrier can have?

            Mr. Grimmel responded D.

            Mr. Fennell asked what is Star Insurance?

            Mr. Grimmel responded they are a public entity specialist who insures governmental businesses.  They are the insurer of our AL, GL, excess law enforcement and statutory excess workers compensation.  They are a big carrier as well.  In the unlikely event something happens to them, the State of Florida guaranteed fund is also there.

            Mr. Fennell stated I see a $100,000 retention.  Is this the deductible?

            Mr. Grimmel responded this is what the agent retains.  We combine 700 governments together and their combined premium contribution is $105 million.  The agent will retain roughly half of those monies to pay for the claims.  This is how we get the biggest benefit for our dollars.  One example is if your truck knocks someone’s rearview mirror off as it is pulling down the road.  We know we are going to have those claims.

            Mr. Hanks stated this is the same idea as an individual paying a higher deductible insuring that rather than having these extraordinary high deductibles of $100,000, you are approving everyone’s risk together and spreading them among the various members.

            Mr. Grimmel stated let’s say I have property worth $5,000.  PGIT on a non-hurricane loss bears the layer between $5,000 and $25,000.  Then we have the excess carriers above this.  On a G/L loss, if someone calls and says their pipe burst, PGIT bears the first $100,000.  If the claim gets above this amount, it gets tendered to the carriers.

            Mr. Fennell asked is it like a re-insurance rate from a medical standpoint?

            Mr. Grimmel responded yes.  The easiest way to describe PGIT is it is an insurance company.  We are trying to be open and share with you the financial stability of the carriers.  The backing of PGIT in the event of a large claim is very good.  They are all A rated.  My understanding is you purchased your workers compensation insurance through FMIT.  Correct?

            Mr. Daly responded yes.

            Mr. Grimmel stated PGIT is the same type of program and is set up under the same statute as FMIT.

            Mr. Hanks asked are these existing customers?

            Mr. Grimmel responded a lot of those have been around since 1999.

            Mr. Hanks asked such as Sea Coast?

            Mr. Grimmel responded Sea Coast bids their insurance every year.  We wrote their insurance for five years but there was a gap of two years where we did not write their policy.  There is no commitment where you have to give six months or a year’s notice if you are going to leave. 

            Mr. Hanks asked did we track this with our existing carrier?

            Mr. Daly responded no.

            Mr. Grimmel stated your policy term ends on the 31st.

            Ms. Zich stated we have not said we will go with them for next year.

            Mr. Daly stated correct.  They submitted an invoice to us a week ago for next year’s policy.  We should be allowed to make up our mind.  Normally it automatically renews and we never did our homework ahead of time to find out where else to go.  It is not like shopping at a grocery store.

            Mr. Fennell asked is there an advantage to having a two year policy as opposed to a yearly policy?

            Mr. Scholl responded it is nice to get a two year policy but given Florida’s geography, we cannot commit to a two year guarantee on the property or workers compensation.  If you are interested, we can explore it.

            Mr. Grimmel stated my experience has been if you can get a two year lock on a premium, you certainly want to go this route.  I think we are probably in a softening insurance market across the nation and you should see a reduction in the liability rates.  I do not think a two year program will meet your client’s needs.

            Mr. Hanks stated I want to take action on this but prefer to wait until our attorney looks at the policy.

            Mr. Fennell asked what is our situation?

            Mr. Daly responded we have to make a decision before the end of the month.  This was the only meeting we could bring this to the Board.  If you decide to go with HRH, District Counsel can write a letter to the existing carrier thanking them for their service over the years and putting them on notice you are going with another carrier.  Please make sure it is done professionally.

            Mr. Fennell asked from a legal standpoint, do we need to consult with other professionals?

            Mr. Daly responded I do not know.  Our current provider/broker deals with a much higher level of organization.  We are small potatoes for them as they are writing a policy less than $500,000.  They mainly write policies ranging from $500,000 to $1.5 million.  This is not to say they will not miss us as their commission rate is substantial.

            Mr. Grimmel stated your broker is ultimately responsible for going into the market and trying to putting together the best program.  There are limited markets, especially in the property sector for this type of risk.  With the size of your current program, you have one or two other options available at this time.  Normally someone on the brokerage side understands the rating, who is being competitive and who is hungry for business.  In this case, PGIG has done a tremendous job with a lot of public entities and districts throughout the State of Florida in the last few years but ultimately that is your broker’s responsibility.

            Mr. Daly stated I spoke to Mr. Goscicki about this matter a month ago and he said there are not many people who write these policies.  He deals with Marsh all the time and says they are a large one who writes these policies.  There are not many companies in the industry.  I was complaining about how the rates have been increasing and this year it is even higher.

            Mr. Grimmel stated it is the same as health insurance.  You have to market it.

            Ms. Rower stated all of our districts are either with PGIT or the Florida League of Cities.  As Mr. Goscicki was saying, there are not many players in the governmental entity market.  We worked with PGIT.  They are one of the leaders.

            Mr. Hanks stated we should go back and check last year’s record.  Have we priced this with anyone else?  How come no one went out and priced it before?

            Ms. Rower responded I was not involved.

            Mr. Hanks stated if you go back and take a look at the minutes, you will see we had this discussion from a Board’s perspective for years.

            Mr. Grimmel stated because PGIT is a government entity, I can provide your attorney with all the statues but Marsh does not recognize us as an insurance company.  When they do their marketing, they do not want to deal with us. 

            Mr. Hanks stated it is not anything directed at you.  It is a general frustration for our past managers.

            Ms. Rower stated to be honest with you, it becomes a relationship.  I do not know who chose Marsh to begin with. 

            Mr. Fennel stated we never had a discussion about this type of insurance.  It has been grandfathered in.  Your concern is how we can grandfather in a $250,000 year expense.  It is a line item in the budget. 

 

On MOTION by Mr. Hanks seconded by Ms. Zich with all in favor the proposal from Hilb, Rogal & Hobbs to provide insurance to the District was approved, subject to review and approval of the policy by District Counsel as to the legal sufficiency.

 

            Mr. Daly stated I suggest Mr. Grimmel and Mr. Scholl remain at the meeting in case Mr. Lyles has any questions. 

            Mr. Fennell stated one of the reasons we want to have more employees in-house is due to the fact we have someone actively thinking about what happens here and where our costs are coming from on a day-by-day basis and not just accepting things.

            Mr. Daly stated we are dealing with the customers when they call us up because their bill is going up $10.  The $10 is very important to them and makes every penny we spend important when we put the budget together.

            Mr. Fennell stated thanks to staff.

            Mr. Daly stated I have two rival companies competing for workers compensation insurance, which has already been paid for because it was renewed on October 1st.  However, there is a period of 60 days where you can terminate. 

            Mr. Fennell asked how much do we pay for workers compensation per year?

            Mr. Daly responded about $100,000.

            Mr. Fennell stated this is substantial.

            Mr. Daly stated the fact is, we do not take advantage of the company we have right now, due to their rules.  We hold safety classes and will have a safety inspection by STS this month.  We can only improve from what they happen to say.  It is nice to have outside professionals pointing out things for us.  Our current policy is for everyone to be drug tested before they are hired.  If there is an accident, they get tested immediately.  We do not have to do random testing but those two things alone; will allow us to get drug credits.  Mr. Grimmel’s company will be invited to provide a proposal for the workers compensation.  Our other insurance broker for our health insurance has already provided a proposal to us.  There are some schools of thought where the property and workers compensation should be in the same house while other schools of thought say it should be elsewhere.  We will see what happens.

 

FOURTH ORDER OF BUSINESS                    Consideration of Request for Drainage Permit for Coral Springs Retail

            Mr. DaSilva stated this is a permit request, which came through our office for drainage review.  We issued a letter to the applicant requesting additional information on May 25th and gave final approval in July.  I request the Board approve this request based on our letter of recommendation.  The proposed site is an existing site, which they are adding an additional building to the existing building by deleting some parking.  The site is just west of University Drive, south of Royal Palm Boulevard and north of Ramblewood Drive.

            Mr. Hanks stated I have a contractual relationship with the applicant as I am one of their traffic consultants. 

            Mr. Fennell asked what is your conclusion?

            Mr. DaSilva responded approval based on our recommendation letter.  They provided the drainage calculations as required in the previous letter.

            Mr. Hanks asked what is the building coverage on this parcel going to end up being?

            Mr. DaSilva responded I do not have the exact numbers. 

            Mr. Hanks asked are they providing enough storage?

            Mr. DaSilva responded they are providing stormwater runoff through exfiltration trenches.

            Mr. Hanks asked are they meeting their required storage?

            Mr. DaSilva responded yes.

            Mr. Hanks asked is this based on the building?

            Mr. DaSilva responded they have a small retention area in the back of the building.

            Mr. Hanks stated the retention area is at elevation nine.  The parking lot is at elevation 11’ or 11.5’. 

            Mr. DaSilva stated it meets the requirement. 

            Mr. Hanks stated this is our opportunity, if they are not in compliance with our drainage criteria, to bring them into compliance.  Are they in compliance with our permit criteria?

            Mr. DaSilva responded yes.

            Mr. Hanks stated the 130 L.F. drainfield on the north side of the property has a 15” diameter pipe.

            Mr. DaSilva stated it is adequate.

            Mr. Hanks stated our DOT recommendation is to have an 18” diameter pipe.

            Mr. DaSilva stated the 18” diameter pipe is used for DOT roads.  We requested both.

            Mr. Hanks stated the developer’s engineer can choose to do whatever they wish.

 

On MOTION by Mr. Hanks seconded by Mr. Fennell with all in favor the request for a drainage permit from PEBB Enterprises for Coral Springs Retail was approved.

 

            Mr. Daly stated Mr. Hanks wanted to ask the insurance broker about the chlorine gas.

            Mr. Hanks stated it may not have any bearing at this point but with the prior insurance company, we kept seeing increases.  One of the reasons we went with a more expensive liquid chlorine system was to reduce the risk.  Where is our savings from reducing our risk?

            Mr. Fennell responded good question.  You may not be aware but there is a substantial risk for chlorine gas leaks as the plant is in a residential area.  We spent a considerable amount of money changing to liquid chlorine.

            Mr. Grimmel stated the rating was based on the assumption this operation took every measure for risk mitigation and safety. 

 

FIFTH ORDER OF BUSINESS                         Staff Reports

            A.        Manager

i.       Discussion of Cash Flow – Cash Transactions Analysis

            Mr. Daly stated Ms. Woodward prepared a well-structured document for the Board’s information.

            Ms. Woodward stated there should be three pages of summary cash transactions.  The first two pages are in the same format you have seen in the past few months.  Under the General Fund, you will notice an additional line item was added to show another $389,000 came in from NRCS when they adjusted the contract.  They agreed to give us an additional 3% reimbursement on engineering.  This money came in the second week of September.

            Mr. Daly stated this is good, especially for this particular fund because we were lenient.

            Mr. Fennell asked for the General Fund?

            Ms. Woodward responded yes.

            Mr. Fennell stated this is the one we were concerned about.  This is good news.

            Mr. Daly stated very good news.

            Ms. Woodward stated we showed this as a separate line item so it will not be hidden from view.  In the Water and Sewer Fund, there was a major change in the far right column under “Restricted Investments”.  This reflects the fact we have net bond proceeds from the sale of our bonds of roughly $41,700,000.  Those funds were deposited with US Bank on September 17th and changed the nature of what the schedule will look like.  The third page is a summary of the face amount of the bond, the net amounts taken from it and where those monies were initially deposited.

            Mr. Hanks asked what is “Original Issue Discount”?

            Ms. Woodward responded this is where we are selling something for less than the face amount.  Depending on how competitive bonds are in the market when you decide to sell them and whether the interest rate you are offering is above or beyond what the market will bare, will determine whether you have discounted the bonds in order to sell them or offer them at a premium.  Typically you offer them at a premium, if you are offering a higher interest rate.  The reserve will be true for the original issue discount.

            The record will reflect Mr. Lyles joined the meeting.

            Mr. Fennell stated is our money making good money?  We are supposed to be making 4 to 5 percent on our $41,000,000 sitting there.

            Ms. Rower responded the money is in the trust account and earning interest.

            Ms. Zich asked how much interest?

            Ms. Rower responded 4.6%.  There are permissible investments allowed within the Trust Indenture.  I am currently working with an Investment Banker and looking at buying some other government issues based on our cash flow so we can earn a higher yield than what it would earn in just the trust vehicle by itself.

            Mr. Fennell stated great.  Please do this.  As we know, even though we have all the money we currently need, we are not going to be able to build everything.  There is going to be a payout.  We know at least over the next three years, we will be paying.

            Ms. Rower stated we are working with a schedule and doing some type of laddering.  We think interest rates are going down and are looking at locking in some monies within the next 30 days due to the fact of what the current interest rates are doing.

            Mr. Hanks stated the trouble is everyone else is looking ahead with money in one pocket and money out of the other.  Actually 4.6% is not bad when we are paying 4.8%.

            Ms. Rower stated when you are talking about a range of $38,000,000, we have to ladder some of those out.

            Mr. Hanks stated I want to make sure we do not get taken by surprise to where we need help.

            Ms. Rower stated correct.  We have to look at the Cash Flow Analysis on when the construction draws are occurring.  We work closely with the engineers.  It is worth it even if you can earn another 50 basis points on $20 million.

            Mr. Fennell stated it is worth it but it will probably be limited to federal funds. 

            Ms. Rower stated the bond document gives you a descriptive analysis on what we are allowed to use the money on.  Obviously if it is not beneficial or you are only gaining 10 basis points, it is not worth the cost.  I will work closely with Ms. Woodward.

            Mr. Hanks stated on page two, under the Water and Sewer Fund, there were expenses and disbursements of $569,000.

            Ms. Woodward stated those are for all the expenditures you see in your income statement.  On the cash transactions, I attempted to show the money going in and out between the checking and trust accounts.  In other words it was not true income.  We were only moving money from one account to another.  I tried to show this so you understand this is not a revenue source.  I only show a couple of lines of detail here.  The rest of the detail is in the income statement.

            Mr. Hanks asked are you referring to the requisitions paid to consultants or is this a draw?

            Ms. Woodward responded it is for the draws on construction.  The $157,000 is for cost of issuance items such as the attorneys, trustees, etc.

            Mr. Hanks stated thank you for bringing this to us.

            Mr. Fennell stated this is great. 

            Ms. Zich stated I appreciate this.  You can see where everything is going.  Looking at the check register does not help me.  I want to see where we are spending the money.

            Mr. Fennell stated the next thing you are going to give us is a schedule, which is what we are actually looking for.

            Ms. Woodward stated exactly.

            Mr. Fennell stated it is going to tell us where we expect expenditures for construction as well as our general operating expenses and what cash we have available.  They can use this to foresee when we go broke and do something about it.  This is only going to be as good as the information coming from the engineer.  Therefore, we are going to be looking to our engineer to make sure we have excellent schedules, particularly pertaining to scheduled completions.  Tied to this is a real understanding of when the contractor expects to get paid or when we need to have a certain amount of money in a certain amount of time so we know going forward what our expenditures are going to be.  We have not done this for a long time as far as the scale of the operations.  We always had enough money in the bank to cover our bills.  We borrowed money for 30 years and we better make sure we use it wisely.

 

SEVENTH ORDER OF BUSINESS                  Approval of September Financials and Check Registers

            Mr. Hanks asked are there any surprises?

            Mr. Daly responded no.

            Mr. Hanks asked was there any unusual activity?

            Mr. Daly responded no.

 

On MOTION by Ms. Zich seconded by Mr. Fennell with all in favor the financials and check registers for September 30, 2007 for the General Fund in the amount of $64,841.26 and for the Water and Sewer Fund in the amount of $541,482.73 were approved.

 

FIFTH ORDER OF BUSINESS                         Staff Reports (Continued)

ii.         Report from Mr. Frederick on Grinding of Tree Stumps & Erosion Report

            Mr. Daly stated Mr. Mark Westfall from the City of Coral Springs contacted us regarding complaints he received about the condition of the canals and canal banks.  They have an ordinance stating “If you cut down a tree, you have to grind the stump”.

            Mr. Frederick stated when we had our tree removal project, this was never mentioned.  We had several meetings with the city and they knew we were going to flush cut these stumps and were worried about grinding them.  All of a sudden Mr. Westfall is telling us all stumps have to be grinded because he received complaints.

            Mr. Daly stated we had thousands of stumps.

            Mr. Frederick stated he is not going to enforce this unless he gets a complaint.  We received a complaint from a resident.

            Ms. Zich stated I saw them grinding stumps on 19th Street.

            Mr. Daly stated not by us.

            Mr. Frederick stated we have not grinded any stumps yet. 

            Mr. Hanks stated if we have a situation where we are required to access the canal bank, we should request an easement or right-of-entry from the property owner.

            Mr. Daly stated good idea.  Mr. Colussy from CH2M-Hill found out in the last month NRCS is willing to give us more money.  We still have to expend more money for the canal bank project, but they will pay 75%.  Mr. Hyche, Mr. Frederick and Mr. Colussy put together a plan for residents complaining about their canal banks.  Will they take care of some of the tree stump grinding?

            Mr. Colussy responded we need to remove them for maintenance purposes so they will qualify.

            Mr. Daly stated this is a good thing.  Otherwise it costs hundreds of dollars to grind a stump.

            Mr. Hanks asked what was the reason for not grinding the stumps in the first place?

            Mr. Frederick responded I wanted to stump grind but it was an astronomical figure to grind every tree we were talking about removing at the time. 

            Mr. Fennell asked where is the area in question?

            Mr. Frederick responded south of Sherwood Forest off of Shadow Wood Boulevard.  This is the canal by the Jefferson Apartments running under the mall and north to Shadow Wood.

            Mr. Fennell asked are those stumps on District property?

            Mr. Frederick responded yes.  The fence is where the District property line is for the canal.

            Mr. Daly asked will NRCS take care of something like this?

            Mr. Colussy responded yes, as long as it is for maintenance.  They are lenient.

            Mr. Daly asked for maintenance of our property or the waterway?

            Mr. Colussy responded maintenance of the canal bank.  We cannot cut the grass around the stumps.

            Mr. Fennell stated we did not plant those trees.

            Mr. Frederick stated the homeowner probably planted them because they are in the direct line of the house.  They were obviously there for a long time because of the size of the stump.

            Ms. Zich asked were they Australian Pines?

            Mr. Frederick responded yes.

            Ms. Zich stated they were all along the canal across from me by Visconti.  Those were there ever since I have been here.

            Mr. Hanks asked is this part of the Capital Improvement Plan we are looking at for the drainage system where we are considering the canal expansions?

            Mr. Frederick responded no.  The only reason this is being addressed is because a homeowner called the city and the city is calling us because we cut the trees.  They told us they have an ordinance where if we cut the tree, we have to grind the stump.  We did not grind the stump.

            Mr. Fennell asked do we have our own stump grinder?

            Mr. Frederick responded no.

            Mr. Fennell asked should we?

            Mr. Hyche responded yes.

            Mr. Fennell stated if it gets to the point of where we are grinding a lot of trees, we should consider getting a stump grinder.  If we had one, we could go out with our own people and do the grinding.

            Mr. Frederick stated in some cases, the stumps are easy to grind.  The ones on the side of the bank are hard to reach.  We need a special grinder for those.

            Mr. Fennell asked what direction do you need?

            Mr. Frederick responded we want to get permission from the Board to grind these stumps.

            Mr. Daly asked was there a cap on what NRCS allows?

            Mr. Colussy responded we originally had a project agreement with NRCS for $2.6 million.  We have $200,000 left.  Our project agreement was slated to end at the end of September.  NRCS extended it to the end of December of this year.  We have $200,000 to spend on stump removal, bank restoration or any other upgrades for storm related proble