MINUTES OF MEETING

PINE TREE WATER CONTROL DISTRICT

A meeting of the Board of Supervisors of the Pine Tree Water Control District was held on Thursday, August 6, 2009 at 6:02 p.m. at the Parkland City Hall, 6600 North University Drive, Parkland, Florida.

Present and constituting a quorum were:

Margaret Bertolami President

Paul Brewer Vice President

Donna McCann Benckenstein Assistant Secretary

Mark Weissman Supervisor

Also present were:

Kenneth Cassel Manager

Julie Klahr Attorney

Warren Craven Engineer

Warren Craven, Jr. Engineer

Randy Frederick Drainage Supervisor

Terri Lusk Severn Trent Services

FIRST ORDER OF BUSINESS Roll Call

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

SECOND ORDER OF BUSINESS Approval of the Minutes of the May 7, 2009 Meeting

Ms. Bertolami stated each Board member received a copy of the minutes of the May 7, 2009 meeting and requested any corrections, additions or deletions.

There not being any,

On MOTION by Mr. Weissman seconded by Mr. Brewer with all in favor the minutes of the May 7, 2009 meeting were approved.

THIRD ORDER OF BUSINESS Public Hearing to Consider Adoption of the General Fund Budget for Fiscal Year 2010, Resolution 2009-5, and Levy of Non Ad Valorem Assessments, Resolution 2009-6

Ms. Bertolami opened the public hearing.

Ms. Bertolami stated seeing no members of the public present I would like to call your attention to tab number three, the public hearing to consider adoption of the general fund, Resolution 2009-5, and levy of non ad valorem assessments, Resolution 2009-6.

Mr. Cassel stated in front of you is a revised budget. The revisions were made under certain items. The first one is under Field; payroll-hourly was called payroll-salary. They are not salary individuals. They are paid hourly. The other change was from payroll-shared personnel to payroll-contract personnel. We do not have any shared personnel. It was a carry over from previous years, which was overlooked. The other two items were corrections in the narrative section which coincided with those items. Those are the only changes to the revised budget. The rest of the budget is the same as it was before. All the figures are identical.

Ms. Bertolami stated thank you. Are there any questions or comments on this?

Mr. Weissman asked what is the current balance in our reserves?

Ms. Lusk responded your fund balance is $405,240.

Mr. Weissman asked is this our reserves?

Mr. Cassel responded no. This is your current fund balance.

Ms. Lusk stated we have not pulled them out and posted them as reserves yet.

Mr. Cassel stated we are proposing to put in $30,000 from this current year into the reserves.

Mr. Weissman asked how much did we start with?

Mr. Cassel responded I believe we are between $145,000 and $167,000. I am not sure.

Mr. Weissman asked so will we be up between $175,000 and $200,000 this year?

Mr. Cassel responded that is correct.

Mr. Weissman stated and we are proposing another $57,150 for next year.

Mr. Cassel stated that is correct. We are building back up to where we were prior to the Hurricane Wilma situation so if we have another situation, we will have funds available. With the work being done on the clarification of what property we own we can go back and make sure we can claim funds for reimbursement.

Mr. Weissman asked are we anticipating an $89,000 excess in revenue?

Ms. Lusk responded yes.

Mr. Weissman asked does that include the $30,000.

Ms. Lusk responded yes.

Mr. Weissman stated so we are going to go from $167,007 to $256,380.

Ms. Lusk stated that is correct. No expenses have come through for the culvert expenses. The $30,000 reserve has not been used nor has the capital outlay equipment for expenses.

Mr. Weissman asked why are we not showing in the proposed budget for fiscal year 2010 that the $57,150 reserve will add to the fund balance?

Ms. Lusk responded it is already in the fund balance. We have not broken it out yet.

Mr. Weissman stated what I am looking at is we are showing a $57,150 reserve as proposed for fiscal year 2010. Is this correct?

Ms. Lusk responded yes.

Mr. Weissman stated okay. When we come down to the bottom fund balance has not changed from year ending 2009 to year ending 2010 even though we anticipate $57,150 dropping to the bottom. Is that correct?

Ms. Lusk responded no.

Mr. Weissman asked do we anticipate spending the $57,150?

Ms. Lusk responded the reserve only gets reserved at the end of a fiscal year. In 2010 you will see the 2009 reserves broken out. In the end of fiscal year 2010 you will see the $57,150 broken out.

Mr. Weissman stated but we can anticipate the $256,380 assuming all other expenses remain and then we will be up to $313,000.

Ms. Lusk stated that is correct.

Ms. Bertolami asked what is the increase on the recharge water from the total projected for fiscal year 2009 to the proposed for fiscal year 2010? The total projected for fiscal year 2009 is $8,353 and the proposed for fiscal year 2010 is $15,000.

Mr. Cassel responded that is for a potential expense for back pumping to Cocomar Water Control District.

Ms. Bertolami stated okay. The more water we get the more it will cost us.

Mr. Cassel stated the more rain. If we have to back pump to the east. It is a plug number you put in if you are pumping it back to the east to hold it up. Again, as will anything which is not expended in a particular year, it drops down to your fund balance or allows you to take money with a budget amendment and use it for a different line item.

Ms. Bertolami stated thank you. Do we have a motion to approve?

Mr. Weissman MOVED to adopt Resolution 2009-5, adopting the general fund budget for fiscal year 2010, and Ms. Benckenstein seconded it.

Ms. Klahr asked can I make a recommendation?

Ms. Bertolami responded yes.

Ms. Klahr stated your budget is based on your assessment. Since you have not approved your assessment yet, can you?

Mr. Weissman asked do you want me to do Resolution 2009-6 first?

Ms. Klahr responded yes. If you approve your assessment, then you can approve your budget. If you approve your budget and then you make a change to your assessment, you have to amend your budget.

On MOTION by Mr. Weissman seconded by Ms. Benckenstein with all in favor Resolution 2009-6, levying a maintenance assessment within the PTWCD for payment of maintenance expenses for its water management system period October 1, 2009 through September 30, 2010 in the amount of $209.14 per acre, was adopted.

On MOTION by Mr. Weissman seconded by Ms. Benckenstein with all in favor Resolution 2009-5, adopting the final budget of the PTWCD for fiscal year 2010, was adopted.

Ms. Bertolami closed the public hearing.

FOURTH ORDER OF BUSINESS Manager’s Report

A. Meeting Schedule for Fiscal Year 2010

Mr. Cassel stated as you all know we advertise for the full year even though we meet as necessary. It is easier and cheaper for us to advertise the full year rather than trying to advertise each one that we have.

Mr. Weissman asked do we need a motion?

Mr. Cassel responded we need a motion to approve the meeting schedule.

On MOTION by Mr. Weissman seconded by Ms. Benckenstein with all in favor the meeting schedule for fiscal year 2010 was approved as proposed.

B. Consideration of Resolution 2009-7 Amending the Permit Fees

Mr. Cassel stated the Board will recall the last time we met you requested we go back and look at our permit fees and get it aligned with what the other districts are charging. That is what this does. This provides for a $350 initial permit review based upon an hour and half’s time worth of engineering review time. It also requires the applicant put up a $2,500 trash bond once the permit is approved. This is returned to the applicant after the project once staff makes sure they have cleaned up any area, which would impact us. If they do not, we have the money to go out and clean it up.

Ms. Bertolami stated thank you.

On MOTION by Mr. Weissman seconded by Mr. Brewer with all in favor Resolution 2009-7, a resolution of the Board of Supervisors of the PTWCD amending review fee schedules for plan review, plat review and permits issued for the construction of stormwater management and drainage facilities, providing for severability, providing for conflicts and providing for an effective date, was adopted.

C. Discussion Regarding Transitioning the Retirement Plan

Mr. Cassel stated there is nothing to review in your booklet at this time. I wanted to bring before you that the employees of PTWCD are part of CSID’s pension retirement system. CSID is looking to change from the current investing group they have to ICMA-RC. The advantages are that it becomes self directed by the employee. It limits the fiduciary responsibility on the CSID Board and on the CSID operation. Also, the ability for portability is a little bit greater for a public entity employee. If they go to another public entity, most of them have ICMA-RC. You can move it. It is self directed. You get reports on a monthly basis and things like it, which we do not currently get. I just wanted to brief you that CSID is considering making that change and I have been working with ICMA-RC. The group would go, but each entity would be its own entity with ICMA-RC so you are not tied to something CSID does as far as the retirement or the pension system for your employees.

Mr. Weissman asked do we have to approve this?

Mr. Cassel responded at this point I just wanted to let you know it is coming. I want to make sure you are on board as we go through it.

Mr. Weissman stated so we have no say in it.

Mr. Cassel stated you do and you do not. You can say you want to go with some other retirement, but with two people as employees it is a much better situation for your employees. Your employees are going to have a greater benefit by going with ICMA-RC.

Mr. Weissman asked are any of the employees here?

Mr. Cassel responded no. They are two filed employees.

Mr. Weissman asked do we have any idea that they would be comfortable with this?

Mr. Cassel responded my feedback from the employees of both CSID, NSID and others is they would rather have a self directed plan.

Mr. Weissman stated because in recent years we have been seeing a drop in their values.

Mr. Cassel stated it takes the responsibility off of the Board itself and allows the individual to choose how they want their money invested. With the ICMA-RC plan they are not locked in for a year at a time. Most of the other systems we have right now, when you change your portfolio you are locked in for a period of time.

Mr. Weissman asked assuming these two individuals are not financial wizards, will someone be sitting with them and explaining to them the options they have as well as the consequences?

Mr. Cassel responded yes.

Ms. Bertolami stated the City of Parkland has this system and we do have a good response. They do come in and they are available by phone at anytime.

Mr. Weissman asked will they come in?

Ms. Bertolami responded absolutely.

Mr. Cassel stated that is the other advantage to what we have currently. The employees are currently at the will of the group on how it is invested. This allows them to make their own decision and it allows them to be trained by someone who does it on a regular basis.

Mr. Weissman asked do they have the ability to look at getting into a state retirement system as a government agency?

Ms. Klahr responded you would have to join it.

Mr. Cassel stated you would have to join FRS.

Mr. Weissman asked is this an option this entity might have?

Mr. Cassel responded it is one of the options you have.

Mr. Weissman stated it is not our option unless we wanted to do it for two employees.

Mr. Cassel stated exactly. It would be your option for the two employees to go. Part of the issue with FRS is many people have gone into it in the past thinking it was a great deal. It was not as great as they thought and you cannot get out of FRS.

Ms. Klahr stated once you are in, you are in.

Mr. Cassel stated you are stuck and whatever rates they charge you, they charge you. It becomes potentially very expensive. There are a number of cities which wish they were not in it.

Ms. Klahr stated there is no employee contribution with FRS. You cannot require an employee contribution. Your plan is directed, maintained, managed and dictated by FRS. Some cities want that. Some local governments with fewer employees want this. That is okay for them. You just have to understand this going in.

Mr. Cassel stated there is non portability for the employee.

Mr. Weissman stated unless they go to another agency that has FRS.

Mr. Cassel asked are their any other questions?

Mr. Weissman responded the cost of administering through FRS are generally less.

Ms. Klahr stated I do not think compared to ICMA-RC that it is much different. They are both going to have certain costs and expenses. It is factored into what you are already paying and I think your costs through FRS would…

Mr. Weissman asked be the same percentage?

Ms. Klahr yes.

Ms. Bertolami stated enabling the employee to make contributions is a big benefit. Thank you for the presentation.

Mr. Cassel stated I have a couple more items that you do not have before you. One of them is the engagement letter with the auditors for next year. This will be your third year with the firm of Grau & Associates. After they complete this audit, next year we will have to establish an audit committee to reselect auditors. We have been negotiating with Grau & Associates as well as a number of other auditors for our clients and they have agreed to keep the fees the same as last year’s fees.

Mr. Weissman asked do we need to approve this?

Mr. Cassel responded we need to approve it and then I will have it signed at the end of the meeting.

On MOTION by Mr. Weissman seconded by Mr. Brewer with all in favor the engagement letter with Grau and Associates to perform the financial audit for fiscal year 2009 was approved.

Mr. Cassel stated we had previously discussed the Tract K issue with the City of Coral Springs. We followed through the instructions of the Board. We sent out postcards. I had one individual call back. That individual’s only complaint was that it was not maintained very well. She said her neighbors basically say the same thing. Since the city is not in the canal maintenance business, they did not maintain it well. We have water which needs to flow through there right now. We do not really have the right to flow our water through there.

Mr. Weissman asked what type of maintenance expense will we have to get it in the condition which will not only be acceptable to us, but also to the people who now know we are responsible for it?

Mr. Frederick responded there is a lot of mowing which needs to be done up there. I think since the talks have been about us taking over the area has not been touched so everything is four or five feet tall. I had a homeowner call me about some bank issues where some trees were taken out and the bank is kind of messed up. He says the bank needs to be redone or something because it is not maintainable.

Mr. Weissman asked have we provided an expense in the budget or are we planning on doing it this year?

Mr. Cassel responded I would look at this current year’s budget and see where we have some potential funds to take care of that. If it is above and beyond what we have in our maintenance budget already, I would move some line items around.

Mr. Weissman asked once we get it in shape do we expect it will fit in next year’s budget?

Mr. Cassel responded I believe so.

Mr. Frederick stated we were up there the other day with the Cravens. We looked at it and the canal itself does not look that bad. The only problem is it is a pretty shallow canal so it is hard to maintain, but other than that it looks pretty good.

Mr. Weissman asked is there any ability to get Coral Springs to contribute to at least getting it back in shape since they technically still own this?

Mr. Cassel responded I can talk to Mr. Machaud and see if I can get them to mow it prior to our final execution.

Mr. Weissman stated anything we can get them to do at their expense will save us. Also, this bank issue as well.

Mr. Cassel stated I was not aware of the bank issue.

Mr. Weissman stated prior to us taking ownership of this thing if we can get in the condition where it costs us less.

Mr. Brewer asked if Coral Springs does not step up to the plate, what kind of dollars are we talking about?

Mr. Frederick asked to mow the area?

Mr. Brewer responded to clean it up and get it back to workable order.

Mr. Frederick stated I do not think we are talking about a lot of money; probably no more than $5,000.

Mr. Brewer stated okay. See if we can get Coral Springs to buy off on it and whatever it is, it is more money we save.

Mr. Weissman stated it would be less expensive for them to just do the work.

Mr. Cassel stated I will talk to them to see if they can get it mowed one time and then we can take it.

Mr. Weissman stated that bank issue; we have someone complaining about the bank if there is anything we can get them to do in order to save us from going in there. They should know we are the good neighbor. We came in and got this done for them.

Mr. Frederick stated we want them to know this is only the Tract K area. This does not involve the area going out to Wiles Road that they are not maintaining either.

Mr. Cassel stated just Tract K.

Mr. Weissman asked is that something else they are looking to turn over?

Mr. Cassel responded no.

Mr. Frederick stated there is some other property over there which goes out to Wiles Road and that is overgrown too.

Mr. Brewer asked is that just the small area from where they put the pipe in?

Mr. Frederick responded yes, where they put the pipe in.

Mr. Brewer asked from there, south?

Mr. Craven responded yes.

Mr. Brewer asked are they taking care of the other area where they put the pipe in pretty well?

Mr. Frederick responded no.

Mr. Craven stated only to the limit of the plat. Beyond that there is a parcel of land between there and the FP&L right-of-way.

Mr. Brewer asked and they are not doing anything? They spent all of that money for that pipe to go in there.

Mr. Craven stated that looks great. They did an excellent job. Really.

Mr. Brewer stated but they are not maintaining it.

Mr. Craven stated it is to the west of where they put the pipe in.

Mr. Frederick stated the homeowners are maintaining their part. It is the part after that, which is Coral Springs’, they are not maintaining it.

Mr. Cassel stated but that is not in the Tract K piece.

Mr. Frederick stated no.

Ms. Bertolami asked so do we need to bring this back next time?

Mr. Cassel responded you can approve it at this meeting pending the successful negotiations of them taking care of that. If they get that done, I can get Ms. Bertolami to sign it after we get it squared away.

On MOTION by Mr. Weissman seconded by Mr. Brewer with all in favor the Quit Claim Deed for Tract K from the City of Coral Springs to the District was approved subject to the City of Coral Springs bringing the parcel up to acceptable condition.

Mr. Cassel stated the last thing I have is since your revenues have all come in and your checking account is getting a low interest rate, what we have done with many of our other districts is rolled their funds into package type CDs so you can get 1.2% or 1.5% interest. We want to get your approval to allow us to invest those funds in CDs which are guaranteed under the criteria so it is protected.

Mr. Weissman asked is their a limitation on how much we can put in an institution?

Ms. Klahr responded usually in order for banks to serve local government agencies, whatever monies they have in deposits they have to put an appropriate amount on security with the state. That is what secures your money. This is not insured by the Federal Government. It is insured by the bank itself with deposits they put on deposit with the state.

Mr. Cassel stated all of your money always has to be in a bank which is a public depository. They have certain requirements that even if everyone else does not get their money, your money is there. We do the same with the CDs.

Mr. Weissman asked can you negotiate with the banks since you are representing several districts?

Mr. Cassel responded they vary on whether it is a 3 month, 6 month, 9 month or 12 month CD. Ms. Lusk will set up an investment schedule and we will do a cash projections so we can invest how much at each time so we know it comes out and try to maximize the amount of interest we can get back. We have been doing this with several other districts for a few months and it has been working out fairly well. We just need a motion to allow Severn Trent Service to do this on your behalf.

On MOTION by Mr. Weissman seconded by Ms. Benckenstein with all in favor Severn Trent Services was authorized to invest District funds in CDs within public depositories.

FIFTH ORDER OF BUSINESS Attorney’s Report

Ms. Klahr stated we delivered to Mr. Craven the contract. He will get it signed and back to us. Then we will have you sign it.

SIXTH ORDER OF BUSINESS Engineer’s Report

Mr. Craven, Jr. stated we have been working over the past several months pulling together all of the documentation the District needs to prove ownership of its facilities so if we get into another Hurricane Wilma situation we can successfully go after FEMA funds for reimbursement. We are approximately 95% there. From where we were three months ago to where we are today we have a much better feel for it. When we started we thought we were in a mess because of what happened after Hurricane Wilma. We have been doing a lot of work looking through public records and documents. We have been able to establish ownership of virtually everything we show on the District map as District facilities. There are probably three areas, one includes the Quit Claim Deed you were just talking about, that we need to clarify and possibly get additional easements.

We have the issue along the Sawgrass Expressway. We feel we have put together enough support documentation that we can sit down with legal counsel and get a favorable recommendation from him that we actually do have the standing with that maintenance map and the easements that we accumulated over the years. Some of the older properties did not dedicate additional easements, but there are references made in about have of those deeds to the maintenance map which exists of record at Broward County. The newer things which have come along, that have been clouded, all have easements overlapping this map. Basically we are in pretty good shape as far as the overall District being able to prove ownership.

We met DOT. There are some properties Broward County Expressway Authority acquired when they built the expressway, which they later deeded to DOT, that fall outside of the expressway right-of-way. There are also a few easements and tracts which PTWCD owns that fall within the Sawgrass Expressway right-of-way. We started a dialogue with DOT on sorting this out and basically trading deeds. We give them what they should have and they give us what we should have for canal. We are also talking with them about taking the excess property and deeding it back to the adjacent property owners if they want it because it is not useful to either DOT or PTWCD.

We also finished the overall map of the District. We were printing it for this meeting and the plotter broke. We will get it distributed by next week for everyone to take a look at it. In general I feel it has gone faster than we thought. I think some of the original projections on expenditures were $200,000 to $300,000 to clear this up. I think right now we are at approximately $30,000 and we are almost there. We have kept the cost down and this is something we should be able to have resolved completely within the next two months. When we get to the heart of the storm season we should be in good shape. Mr. Brewer has been a huge help in putting this together.

Mr. Brewer stated I did not charge anyone anything. The biggest hurdle we have is getting it between you guys being happy and counsel.

Mr. Craven, Jr. stated we are going to set up a meeting with Mr. Doody’s office; hopefully, in the next week or so. Anything he feels is still gray area or a gap we will try to get additional documentation on. I have been pleased with what we have been able to find in public records. Sometimes it is tedious, but it is all there. If anyone wants to look over this, we have a couple of things we want to add to it so we are not quite finished with it, but if anyone wants to take a look at the documentation as it stands.

Mr. Cassel stated that is only one of two binders they brought in my office earlier.

Mr. Craven, Jr. stated yes the other binder is all of the plats we pulled together for you.

Mr. Craven stated so in reality when you got the two books you got everything you need for the whole District. We are going to provide the District with one and we will keep one. They are reproducible at anytime.

Mr. Weissman asked can we get all of this in a disk?

Mr. Craven, Jr. responded if you want that we can have the documents scanned. Some of it we have on an electronic file, but some of the property appraiser’s records…

Mr. Weissman stated I think when you get done and you resolve any outstanding issues.

Mr. Cassel stated once we finalize it.

Mr. Craven stated it can be scanned.

Mr. Craven, Jr. stated we have all of the plats within District in another binder and we have those in an electronic file already. When we finish with this book we can get a digital copy of it.

Ms. Bertolami stated thank you.

SEVENTH ORDER OF BUSINESS Supervisors’ Requests

There not being any, the next item followed.

EIGHTH ORDER OF BUSINESS Approval of Financials and Check Registers

There being no questions or comments,

On MOTION by Mr. Weissman seconded by Ms. Benckenstein with all in favor the financials and check registers were approved.

NINTH ORDER OF BUSINESS Adjournment

There being no further business,

On MOTION by Mr. Weissman seconded by Mr. Brewer with all in favor the meeting was adjourned.

Kenneth Cassel Paul Brewer

Assistant Secretary Vice President