MINUTES OF MEETING

NORTH SPRINGS IMPROVEMENT DISTRICT

The regular meeting of the Board of Supervisors of the North Springs Improvement District was held Wednesday, July 3, 2002 at 4:05 P.M. in the District Office, 10300 N. W. 11 Manor, Coral Springs, Florida.

Present and constituting a quorum were:

Matt Lauritzen President

Salvatore J. Mendolia Secretary

Thomas L. Grossjung Vice President

Also present were:

Rhonda K. Archer Finance Director

Dennis Lyles Attorney

Donna Holiday Recording Secretary

Jane Early Gee & Jenson

Warren Craven WCI Communities

FIRST ORDER OF BUSINESS Roll Call

Mr. Lauritzen called the meeting to order at 4:05 p.m.

SECOND ORDER OF BUSINESS Approval of the Minutes of the May 23, 2002 Meeting

Mr. Lauritzen stated that each Board member had received a copy of the minutes of the May 23, 2002 meeting and requested any additions, corrections or deletions.

There not being any,

On MOTION by Mr. Mendolia seconded by Mr. Lauritzen with all in favor the minutes of the May 23, 2002 meeting were approved as submitted.

THIRD ORDER OF BUSINESS Public Hearing to Consider the Adoption of the Budget for Fiscal Year 2003 and Levy of Non Ad Valorem Assessments

Ms. Archer stated the only changes in the budget from the one distributed two months ago, is due to the number of assessable units that were updated and sent to us yesterday. I will distribute the revised budget along with a chart showing the assessment levy on each area. Each year the Property Appraiser goes through their rolls and determines the number of assessable units in each of our assessment areas. We have so many different areas because over the years we have annexed property into the District and developed a water management plan around those annexations and have issued bonds to incorporate those areas into an overall water management system so that each area pays for its own related water management system. The bonds associated with the original area of North Springs have been paid off and the owners in that area pay only a maintenance assessment. Everyone in Supplement No. 1 pays the supplement No. 1 bonds, the people in Supplement No. 2 pay for the supplement no. 2 bonds and the people in Supplement No. 3 pay for the supplement no. 3 bonds. Not all of the Supplement 3 and not all of the Supplement No. 2 bonds have been issued yet. We will come back to you later this year to talk about another bond issue that will provide water management service to the future areas being developed in North Springs.

Everybody receives a maintenance assessment which comes from the general fund that we are proposing to be $60.39 which is exactly what it was last year. In order to keep the assessments level we fund up or fund down our reserves that we set aside for pump and engine replacements. Everybody pays the administrative and maintenance assessment of $60.39 except for North Springs 6 which is an area that encompasses the Beaty property. They only pay the administrative assessments at this time because they receive no water management service in that area. When we issue future bonds for the Beaty area, they will receive a maintenance assessment at that time.

The debt service schedules tie back to these numbers related to the debt service. In addition there is the Heron Bay Mitigation area. All of the Heron Bay property has mitigation areas within it that the District has accepted and agreed to provide maintenance of those mitigation areas. They get a special assessment for that each year depending on the budget and that is projected to stay the same as the prior year. We bid that contract every two years and this year we propose to add another area to that contract but because we have more platted units in that area, we are able to keep the assessment the same after we add the additional expense.

Heron Bay Commons maintenance and Heron Bay Commons debt is levied against the Heron Bay Commons property. Some of it is levied per platted lot basis and the rest is levied against the unplatted acres which is why you will see $250 and $350 per lot in some columns and other columns are unplatted acres and it is a larger number for the acreage calculation.

Parkland Isles maintenance and Parkland Isles debt remains the same as in prior years.

There are 12,612 assessable units which are either a platted lot and if it is unplatted it is an acre. An acre eventually gets platted into lots and is why there are more assessable units this year than last year because one acre can be platted into 2 or 3 lots. In most cases the assessments have remained the same or gone slightly down. In some case, however, they have gone slightly up which is related to the debt service fund budget and the number of assessable units in that particular area.

Mr. Mendolia asked on the tax levy history, how did the number go down from 2001 to 2002?

Ms. Archer responded the year before we had to fund up additional funds to replace some pumps and engines in our pump stations and then we moved back down to where we were the year before. The biggest thing that helps us reduce our levy each year is the platting that takes place where an acre may be platted into 2 or 3 lots, then it becomes 2 or 3 assessable units instead of one. Our denominator increases each year and our numerator basically stays about the same or rises a little bit. Each year in theory our assessments should come down a little bit or stay even assuming that the more houses being built, we will incur more maintenance expense for the canals being dug. Our maintenance assessments are leveling out at the same rate as development.

Mr. Grossjung stated there are only two sections, NS 2A and NS 2B that have a modest increase in their history and that is due to debt service increase.

Ms. Archer responded that is correct. Their general fund assessment remained the same as it was the prior year but their debt service went up and that is because of the debt service schedule that is tied to their bonds. It increases and decreases each year by $5,000 increments. You can only amortize bonds and call bonds in $5,000 increments. It is not like a mortgage where you can make the annual payment be exactly the same amount each year. Some years you will pay off $5,000 more and some years $5,000 less but it stays within that range.

Mr. Grossjung stated from our perspective we need to maintain control over the general fund which is where we have discretionary ability to curtail spending.

Ms. Archer responded that is correct. We have no control over the debt service amortization schedule. When we originally issued the bonds we said based upon certain assumptions that it would never exceed a certain amount and it does not exceed that amount because that is based on the maximum annual debt service in any one year. We are always under the cap that was disclosed when we originally issued the bonds but we are moving up and down a little bit each year to amortize that years debt.

Mr. Grossjung stated the variables in the Heron Bay Commons maintenance is a function of what the homeowners decided they want.

Ms. Archer responded it is the same maintenance budget we had the year before and it is $250 per unit. The variance from the prior year relates to the number of lots that have been platted out of the acres.

Mr. Grossjung asked what constitutes the mitigation?

Ms. Archer responded all of the property in Heron Bay that we provide special mitigation service for and we have a contract for that, plus the additional property that we will add into those mitigation areas. As they develop more property, they create more mitigation areas and we agree to maintain them and assess the residents for them that are benefiting from those. We have increased our expense for mitigation in anticipation of accepting those new areas next year but with it, we have more assessable units in Heron Bay because more property is being platted.

Mr. Mendolia stated there is nothing on the chart for Parkland Isles maintenance and debt.

Ms. Archer responded in the back of the budget is the Parkland Isles budget and we neglected to put that in the chart that I distributed. The Parkland isles budget has not changed from the draft that I gave you two months ago. It is still $325 per year for the maintenance budget and the same debt service assessment that was adopted.

Mr. Grossjung stated the proposed levy will be modified by the Parkland Isles assessments.

Ms. Archer responded yes it will. There are 212 fifty-five foot lots, 235 seventy foot lots and 159 eighty foot lots in Parkland Isles and each receives a different debt assessment and they all receive the same maintenance assessment. Resolution 2002-3 spells out the different areas in the District, the different maintenance and debt assessments for those areas and what they will be assessed and we will attach a chart to it as an exhibit.

Mr. Grossjung stated in the Resolution there are numbers missing on page 2.

Ms. Archer stated I will read those into the record.

Number of Units Heron Bay w/M

Unit 3C 7 Unit 3D 10

Unit 4 710 Unit 4A 725

Unit 4B 75 Unit 5A 878

Unit 4C 98

Unit 5 277

Unit 6 678

We will put those numbers in the Resolution

Mr. Grossjung stated the Resolution incorporates the additions for Heron Bay mitigation, maintenance and debt but I don't see anything that incorporates Parkland Isles.

Ms. Archer stated historically we haven't included them but that is a good point. I think they should be in here and with your permission I will make that change and ask that when you approve the resolution to approve it with the amendment to add the Parkland isles assessments. It does reference an attached Exhibit "A" which will have the Parkland isles on the attachment but it should be referenced in the Resolution. I will add a section that does that.

Mr. Grossjung asked Mr. Lyles are you comfortable with that?

Mr. Lyles responded yes.

Mr. Lauritzen opened the public hearing and there being no comments or questions from the public,

On MOTION by Mr. Grossjung seconded by Mr. Mendolia with all in favor Resolution 2002-3 levying assessments for payment of debt service and maintenance costs for the period October 1, 2002 through September 30, 2003 subject to the addition of the Parkland Isles assessments and other changes outlined above, was approved.

On MOTION by Mr. Grossjung seconded by Mr. Lauritzen with all in favor the budget for fiscal year 2003 was adopted.

FOURTH ORDER OF BUSINESS Consideration of Award of Contracts

A. Underwater Diving Services

Ms. Archer stated provided in your agenda package is the tabulation of bids received for underwater diving services. We received three bids and the low bid was Industrial Divers of $19,925. Industrial Divers has performed this service for us in the past and they are familiar with the work and scope of services.

On MOTION by Mr. Grossjung seconded by Mr. Mendolia with all in favor the contract for underwater diving services was awarded to Industrial Divers in the amount of their low bid of $19,925.

B. Heron Bay East Pod 5 and Heron Run Drive Phase 2

• Work Authorizations No. 68 and 69 for Engineering Services During Construction

• Funding Agreement with WCI

Ms. Early stated we advertised for bids for Pod 5 and Heron Run Drive Phase 2 which is the last pod in Heron Bay East and the remaining piece of roadway that goes onto those parcels. We received five bids and the low bid was submitted by Florida Sewer & Water in the amount of $1,189,397.60. We recommend awarding the contract to Florida Sewer & Water subject to funding being available. They have done Pods 1, 2, 3, and 4 and they are doing the Greens and Heron Bay Central.

Ms. Archer stated this is the typical funding agreement with WCI where they agree to fund the cost of these improvements and be repaid at a future date out of our connection fee fund or future bond financing.

On MOTION by Mr. Grossjung seconded by Mr. Mendolia will all in favor the contract was awarded to Florida Sewer & Water in the amount of their low bid of $1,189,397.60, Work Authorizations 68 and 69 were approved and the funding agreement with WCI was approved.

FIFTH ORDER OF BUSINESS Consideration of Deed of Conservation Easement and Agreement

Ms. Archer stated this deed is to deed over to the District additional mitigation areas for ownership and maintenance.

Mr. Craven pointed out the additional mitigation areas on the map.

Mr. Lyles sated this instrument is going to require that the District grant to Broward County a perpetual conservation easement. This is part of the developer requirements for that portion of the District and we have previously been granted this property by the owner, WCI, and at this point we are adding a little piece to some easements that we have conveyed to Broward County for conservation purposes in the past. This came up quickly. There are some real estate documents that still need to be tied down in terms of the chain of title and a couple of technical details like that but in talking to the District engineer and to Mr. Craven we think we are ready to authorize the execution of the easement and agreement by which we will convey this conservation easement to the County and agree that we will be responsible for maintaining it in the future subject to refining the engineering and legal details before it is executed by the President. We sometimes get the authority for these things at our monthly meeting subject to any loose ends that we want to tie up before we actually have your signature on the dotted line. We did this same sort of exercise back in 2000 for some other parcels of property and those have been successfully managed as conservation easements within the District based on similar documents that you authorized and executed at that time. We will make sure that these documents line up and are consistent with what you have done in the past.

On MOTION by Mr. Grossjung seconded by Mr. Lauritzen with all in favor the Deed of Conservation Easement and Agreement was approved and the President was authorized to execute same subject to final engineering and legal review.

SIXTH ORDER OF BUSINESS Consideration of Work Authorizations

A. Work Authorization to Add Remaining Section of Nob Hill To Existing Design Contract

Ms. Early stated we are under contract currently for the remaining portion of Nob Hill, north of Heron Bay Boulevard north entrance. That work authorization is complete and we want to incorporate that into the plans so we can bid one set of plans.

Mr. Grossjung asked is this funded from existing bonds?

Ms. Early responded yes, Supplement 3 has existing bonds.

On MOTION by Mr. Grossjung seconded by Mr. Lauritzen with all in favor Work Authorization to add remaining section of Nob Hill to existing design contract was approved.

B. Work Authorization for Design of County Line Road from Nob Hill to University Drive Extension - Engineering Design Agreement

Ms. Early stated County Line Road is to extend from Nob Hill Road to University and University is currently under contract to be constructed. We will probably start that in the next couple of weeks. This will require a funding agreement

Ms. Archer stated this will be done as a WCI funding agreement and when we issue the water management bonds for that area they will be repaid.

On MOTION by Mr. Grossjung seconded by Mr. Lauritzen with all in favor the work authorization for the design of County Line Road from Nob Hill to University Drive Extension and the engineering design agreement with WCI were approved.

SEVENTH ORDER OF BUSINESS Consideration of Permit Requests

A. Ratification of Permit Issued to International Investments for Drainage Outfall for Ridgeview Plaza

Ms. Early stated we had this permit issued in June because the property owner was under a deadline and there was not a June board meeting. It is a typical surface water management permit. There was nothing special about it. We have an existing system and they were joining up with the system.

On MOTION by Mr. Grossjung seconded by Mr. Lauritzen with all in favor the Ridgeview Plaza permit was ratified.

B. Landscape Beautification Along Fence Behind Country Hills Along N. W. 104th Avenue Access

Ms. Early stated we wrote a letter that I have with me today that was not in your agenda package. If you read their request, they are requesting that the District participate in the landscape improvements either by funding or labor. In their letter it says that some of the homeowners would consider donating money or time to install the plants. I met with Mr. Schooley and that is his only access to that canal. If there were debris in that canal they would have no way to get in. We are recommending denial. Mr. Schooley spoke with one of the homeowners and he suggest they put a hedge along the fence line of the school and I think the school was willing t do that. I don't know if the homeowners are happy with that but this won't work. The other problem is who is going to maintain that.

Mr. Lauritzen stated if they put ficus along that fence, our crews could get in there with no problem.

Ms. Early stated that is correct. There are other things they can do and that is what Mr. Schooley discussed with them but this is what they submitted.

Ms. Archer stated what the schools have done in the past is they don't maintain outside the fence down to the water line like the City ordinance requires. They only maintain within their fence. it all gets overgrown and everyone complains to the District to maintain it and the City ordinance requires the abutting property owner to maintain it. I recommend you put the burden on the school to install on their side of the fence so that it will be maintained.

On MOTION by Mr. Mendolia seconded by Mr. Grossjung with all in favor the request was denied.

C. Coral Park Education Center - Drainage Outfall

D. Wyndham Heights Parcel F - Drainage Outfall

Ms. Early stated items C and D are typical drainage outfall permits. We recommend approval.

On MOTION by Mr. Grossjung seconded by Mr. Mendolia with all in favor Items C and D were approved subject to the standard permit conditions.

EIGHTH ORDER OF BUSINESS Staff

A. Attorney

Mr. Lyles stated I have one item in follow-up to an item that was on your agenda in May and that is the deeds for University Drive and Trails End construction. You authorized at your May meeting staff to go forward and work with WCI and the property owners and their attorneys to finalize the deeds that will be necessary to undertake construction of Trails End and University Drive. We have done that. I have the originals here today to be executed. The way we left it at the last meeting was that we would have it signed in the interim and ratified at this meeting. Since they have not yet been signed I will ask the Board to authorize execution of the deeds regarding construction of University Drive and Trails End. There are four separate instruments. Two from WCI and two from Beaty Trust. We are accepting this right of way for construction purposes only. Ultimately, University Drive will be turned over to the City but we will be responsible for the construction in the interim.

On MOTION by Mr. Mendolia seconded by Mr. Lauritzen with all in favor the President was authorized to execute the instruments of conveyance for University Drive right of way and Trails End right of way.

B. Engineer - Change Order No. 2 & Final for Pinehurst Woods with Telcon, Inc. a Net Decrease of $2,273.26

Ms. Early stated we have a final and balancing change order for Pinehurst Woods which is now Grand Cypress Estates and is not in your package. It is a final and balancing change order to reflect as-built quantities and is for a net decrease of $2,273.26.

On MOTION by Mr. Grossjung seconded by Mr. Mendolia with all in favor the final and balancing change order for Pinehurst Woods with Telcon, Inc. for a net decrease of $2,273.26 was approved.

C. Superintendent

Ms. Archer stated I am distributing correspondence that has gone back and forth between us and Stacy Ritter. I believe each of you received in the mail during the last month a letter that I sent out to all the residents about the water pressure in North Springs. When we started having water pressure problems to the west in the vicinity of Brookside Square, we attributed it to two possibilities. One being that our booster pump station has not been completed and is not on line yet and that is going to provide us with additional pressure for the properties to the west. Two, we thought we will go out and check the valves throughout the lines and make sure that one or more of the valves have not been closed or partially closed that would mess up the pressure going from the plant to the west because we didn't seem to be experiencing any problem to the east. We authorized the ordering and installation of two high service pumps at the original water treatment plant that we were going to install anyway for back-up and bring those on line so that we could provide additional pressure for water going west. Then we sent the guys out over a total of about five days and had them exercising all of the valves between the water plant and the area where we were experiencing a problem with the water pressure. In exercising the valves, they turn them as far as they can one way and as far as they can the other way in the hope that exercising them if they have gotten closed somehow over time that they will be opening them up as far as they can go. You don't really know from what I understand when you exercise them, if you are actually opening them any more than they already were because by the time you turn them all the way you can to the left then all the way to the right, you don't know if you have opened them or not. From what we found after we went through that process was that we don't have any more water pressure problems. It could have been one or it could have been more valves. In new construction areas they find a lot of developers are closing off the valves while they tie into the water line and then they are not opening them all the way or they are not opening them at all. We think over time that has attributed to that low pressure situation that we had.

We have only heard from two people with a problem and we talked to them every day when we were exercising the valves and having them check water pressure as we were doing the program. The person with the water pressure problem at the bagel shop was very happy with the results and actually commended us and complimented everyone he could get on the telephone on the great job that we did. I reported back to the health department and the health department's report back to Stacy Ritter shows that we did immediately jump on the problem and solve it.

Mr. Lauritzen stated you are telling me that you had one complaint regarding water pressure.

Ms. Archer stated that is my understanding. I asked Ms. Ritter in my letter to provide me with a list of the people who complained so that we could go out and address each and every problem individually to make sure that we have solved all the problems and I have not received that list.

Mr. Grossjung stated Ms. Archer's letter is excellent. it speaks directly to the safety level of the water supply.

Mr. Mendolia asked what is the water pressure supposed to be?

Ms. Archer responded it is required to be over 20 to be safe. It was leaving the plant at 60. We were turning it up as high as we could get it which is the exact opposite of what she said in her letter. We were actually turning up the pressure as high as we could when we realized there was a problem at the far west end of the system. Doing that at the same time as we exercised the valves, we were addressing it as best we could. It never fell below 25 during that period of time. It was usually first thing in the morning when it was low and after about 9:00 in the morning, the pressure would be up again because people would be using less water. I think you will see an improvement when we have the booster pump station on line because that will increase the pressure coming from the north. right now you have pressure coming from the south and once we bring that on line it will be coming from the north.

NINTH ORDER OF BUSINESS Supervisor's Requests and Audience Comments

There not being any, the next item followed.

TENTH ORDER OF BUSINESS Approval of Invoices and Requisitions

On MOTION by Mr. Grossjung seconded by Mr. Mendolia with all in favor the requisitions and invoices were approved.

On MOTION by Mr. Grossjung seconded by Mr. Mendolia with all in favor the meeting adjourned at 5:00 p.m.

Salvatore J. Mendolia Matt Lauritzen

Secretary President