MINUTES OF MEETING

MINUTES OF MEETING

NORTH SPRINGS IMPROVEMENT DISTRICT

The regular meeting of the Board of Supervisors of the North Springs Improvement District was held on Thursday, April 12, 2007 at 4:30 p.m. at the District Office, 10300 NW 11^th Manor, Coral Springs, Florida.

Present and constituting a quorum were:

Salvatore J. Mendolia President

Steve Mendelson Secretary

Also present were:

Ed Goscicki Interim Manager - Severn Trent Services

Dennis Lyles Attorney

Jane Early Engineer

Dana Kaas Severn Trent Services

Diane Manza Severn Trent Services

Marilyn Murphy Severn Trent Services

Pam Rower Severn Trent Services

Motts Berry WCI Communities

FIRST ORDER OF BUSINESS Roll Call

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

Mr. Goscicki stated I am the interim District Manager for Severn Trent Services. Obviously we have a change in managers since our last meeting as Mr. John Petty is no longer employed by Severn Trent Services. I have taken over as the interim District Manager for NSID as well as for CSID and co-manager for Pine Tree WCD and Sunshine WCD. We are currently in the process of recruiting someone to fill this position permanently. We recognize the importance of NSID and appreciate the particular needs. You are a large water utility and drainage operation, which requires particular expertise and skills as well as the general governmental management skills we bring to all of our districts. We are working diligently to find the right person. In the interim, I am here to fill in as manager. I happen to bring those credentials as part of my background.

I am a licensed Professional Engineer in the State of Florida and have 30 years experience in the water, wastewater and stormwater management field. I lived in Coral Springs for 10 years and was Director of Environmental Services for Broward County. I had a close working relationship with NSID through an Interlocal Agreement for the wastewater program as well as through the drainage program as far as the independent working group with the county as well as regional water supply planning issues. I am familiar with the geography of the area and the issues. I am sad to report the issues have not changed much in the last 10 years. We are facing the same challenges now. There is a limited amount of resource. I read over the minutes from the past few meetings and see you had a lengthy discussion at the last meeting about water resource management issues. Severn Trent Services is here to support the District in any way necessary. We have a number of people here. Mr. Dana Kaas is Vice President of North American operations for Severn Trent Services and oversees all of our contract services, both management and operations. Ms. Pam Rower is our Fiscal Manager and oversees all of the accounting and fiscal management. Ms. Karen Ellis is our Treasury Manager and provides all of our assessment roll services. Ms. Murphy and Ms. Manza are our lead Secretaries and are responsible for our records administration.

SECOND ORDER OF BUSINESS Approval of the Minutes of the March 8, 2007 Meeting

Mr. Goscicki stated each Board member received a copy of the minutes of the March 8, 2007 meeting and requested any corrections, additions or deletions.

There not being any,

On MOTION by Mr. Mendelson seconded by Mr. Mendolia with all in favor the minutes of the March 8, 2007 meeting were approved.

THIRD ORDER OF BUSINESS Ratification of Construction Financing Agreements

A. Agreement #467 for Parkland Village Paving and Drainage

B. Agreement #468 for Parkland Village Water and Sewer

Mr. Goscicki stated at the February meeting, two contracts for Parkland Village; one for paving and drainage and the other for water and sewer were brought before the Board. The contracts were awarded, pending the placement of the appropriate funding being in place or funding agreements. In order to expedite the process, we prepared the Funding Agreements and had them executed by the contractor as well as the Chairman and we are bringing them before the Board for ratification.

On MOTION by Mr. Mendelson seconded by Mr. Mendolia with all in favor Construction Financing Agreements 467 for Parkland Village paving and drainage and 468 for Parkland Village water and sewer with Tousa Homes was approved.

FOURTH ORDER OF BUSINESS Consideration of Change Order No. 1 – National Home Building & Remodeling Corp. II for Heron Bay Commons Tennis Courts for a Net Increase of $58,118.00

Mr. Goscicki stated we need to pull this item from the agenda as the contractor discovered muck on-site that was not anticipated. If you recall, you had significant discussion at the last meeting on the dollars available for this project. In fact, you were looking to use short-term financing to cover the shortfall. We brought this before Bond Counsel as part of the due diligence of moving forward with the short-term financing. Bond Counsel raised significant issues in the ability to move forward with the short-term financing for this type of project in this situation. We had weekly conference calls for three weeks with Bond Counsel, SunTrust and Prager, Sealy the Underwriter for the additional bonds to come to some resolution.

We think we have some solutions in terms of being able to re-finance your existing bonds. You will refinance existing debt at a lower rate, be able to roll this additional amount of proceeds associated with this project into a new bond issue and still wind up with a lower annual payment or annual assessment. This is similar to re-financing your home from 7% to 6% and adding a pool. You will still wind up with a lower monthly payment even though the total principle of your loan increased. You will see later on in the agenda Prager, Sealy’s proposal. They asked for postponement of this item until the next meeting. They are doing their due diligence along with Bond Counsel. There are some issues we need to get better control over.

One of the principle issues is the use of the tennis courts as a public facility using public tax exempt financing and assuring there is public access. The current concern is whether this is being treated as a private or public facility.

Mr. Mendolia asked did we contact the contractor?

Mr. Goscicki responded Ms. Early has been in contact with the contractor and keeping him appraised. However, at this point we are going to need to take specific action to suspend the contract. We are not planning to terminate it at this point but we need to do a formal suspension of the work. Mr. Lyles and I started looking at the contract, seeing what our options are and moving forward.

Ms. Early stated this contractor has been working with me and has been acceptable to what is taking place. Fortunately, he has the Clubhouse to finish. We held him up on the tile but I believe they gave him permission to start this week. They have been pestering me about storing the materials they purchased.

Mr. Mendolia stated this is good news.

Mr. Goscicki stated we will pull this item for now and continue our discussions as we proceed.

FIFTH ORDER OF BUSINESS Consideration of Work Authorization No. 173 for Stormwater Pump Stations 1 & 2

Mr. Goscicki stated this Work Authorization is with CH2M-Hill to do an in-depth evaluation of this asset and get into the entire pumping system, evaluate its integrity, look at some long-term strategies in terms of renewal and replacement of this asset and how to maintain it going forward. We did a similar authorization with CH2M-Hill for another district for the same dollar amount. We feel it is a worthwhile effort to get a handle on the asset and move forward with a longer term strategy for maintenance. This is not a routine maintenance type item. This is the type of activity we do every five or ten years; not every year.

Ms. Early stated we are going to have mechanical, electrical and structural engineers review both pump stations for safety and deterioration issues. We will come back with a report and itemized list of recommendations for high, medium and low priority and meet with District personnel to get their input. We did a similar report with CSID. Now we are going back to them with their report and itemized list.

Mr. Goscicki stated this will allow us to put together a good renewal and replacement program. They will come back with a prioritized list of items to be done. Some activities may be good for the next three to four years and some you should focus on today. This will allow us to do better budgeting for the maintenance and renewal programs.

Mr. Mendolia asked where are the funds coming from?

Mr. Goscicki responded from the operating funds.

On MOTION by Mr. Mendelson seconded by Mr. Mendolia with all in favor Work Authorization No. 173 for Stormwater Pump Stations 1 & 2 was approved.

SIXTH ORDER OF BUSINESS Consideration of Right-of-Way Permit Request from WCI Communities for Temporary Use of the Northern East/West Dike

Mr. Goscicki stated this has been reviewed by the engineer and they are recommending approval of this ROW permit request for a temporary use.

Ms. Early stated this pertains to the north dike of NSID just south of the Bishop Pit. There is a great deal of activity coming out of this pit. We had problems with trucks using the NSID dike when it is raining or when the road they are using gets muddy. They are driving along the dike, which is creating a safety issue. In the meantime, WCI has put gates on both sides of the dike to prevent access to the dike. We do not want to be liable. By doing this, will create a 50’ wide temporary easement at one location so the trucks can cross over the dike, go into the pit and go back out. This way, there is only one way for them to use it and just until the work is completed, I am recommending we permit this. I do not know if Mr. Lyles has to look into any insurance requirements as they are blocking it without permission. By permitting it, they agree to rebuild it and put it back in the condition they found it in. They will also repair a couple of erosion problems. I went out there with WCI and agreed on where we would do this. I do not see a problem. I actually think this is a safer method.

Mr. Lyles stated the permit language we typically use on these types of instruments has indemnification. This means the person applying for the permit agrees if they cause any damage to our property or anything happens, they will indemnify us. In this instance, we will have vehicular use. I think it is appropriate to add to the indemnification language the District will be named as an additional insurer on their insurance policy so if we have a claim, we can write to the insurance company. With the modification to the language of the standard permit conditions, it is acceptable from District Counsel’s point of view.

Ms. Early stated they are going to install gates east to west so if the District has to be on this dike for any reason, District personnel has access.

On MOTION by Mr. Mendolia seconded by Mr. Mendelson with all in favor the right-of-way permit request from WCI Communities for temporary use of the northern east/west dike was approved as amended.

SEVENTH ORDER OF BUSINESS Consideration of Easement Requests

A. Paul Brewer & Associates for Easement Abandonments in Rayel Estates

B. WCI Communities for Encroachment into 50’ Drainage Easement on Old Club Road

Mr. Goscicki stated the engineers reviewed these requests and recommend approval.

Ms. Early stated the first request is for the old fish farm. I spoke to the City of Parkland and they said they did not have a problem with the work being started but they did have to give permits. These were utility easements on-site we do not need. They are just asking for abandonment. We told them we do not have a problem abandoning the easements on this site.

The second request is for an encroachment at the west entrance of Parkland Golf and Country Club off of Nob Hill Road. At their guard gate, we have a 50’ flowage easement with a culvert to connect the lakes. They want to encroach 3.5’ into the easement with the guard gate. The City of Parkland discovered this and said they had to get approval from us. Our easement is far away from where this building is going to be located and they have plenty of room if we need to do any construction work. I do not see a problem.

On MOTION by Mr. Mendelson seconded by Mr. Mendolia with all in favor the easement requests for Paul Brewer & Associates for easement abandonments in Rayel Estates and WCI Communities for encroachment into a 50’ drainage easement on Old Club Road were approved.

EIGHTH ORDER OF BUSINESS Presentation of Refinancing Options for Heron Bay Commons Debt

This item was tabled until the next meeting.

NINTH ORDER OF BUSINESS Staff Reports

A. Manager’s Report - Short Term Financing Status Report

Mr. Goscicki stated we already discussed the short-term financing. We are continuing to work with SunTrust; Ruden, McClosky; Prager, Sealy; and Mr. Lyles.

With me taking over as District Manager after the departure of our last manager, we headquartered our operations for this District out of this building. I currently work out of Sarasota. Our main office is 100 yards down the street. We moved our Administration Manager, Ms. Brenda Schurz from this building to our University Drive office so she can work more effectively with the rest of our team. Our challenge has been all of our files for NSID are still in this building. We considered moving the files, which comprise four file cabinets; however, we have a better solution. All of our recent files were scanned electronically and we feel we have a good set of working files in an electronic format. Our plan is to keep the hard copy files here. Mr. Daly and I have a good working relationship in terms of making sure we have access to the building and our files are secure. This is what we are doing as an immediate solution. We do not see the need to move anything around.

Mr. Mendolia stated sounds good. What about CSID and Sunshine?

Mr. Goscicki responded all the records are in the same location. There are six file cabinets in total. We never moved any of the NSID files.

Mr. Lyles stated the hard copies of the NSID records will remain in this building as has been the case in the past. They are going to use electronic copies and have electronic access at the building on University Drive.

Mr. Goscicki stated this is a more efficient system as it allows us to view documents from other locations. While I am driving, I can view these documents on my Blackberry.

Mr. Mendolia asked are we going to have any more problems with the people working here? Some people work for CSID and others work for NSID.

Mr. Goscicki responded there is nothing in our contract saying we are going to have another entity, in this case CSID, provide accounting services to their personnel, which we use as our overall financial services. This practice evolved over time. We are currently working with our accounting staff to get some integration and coordination with those activities. More activity evolved into this building than we are comfortable with. You still have Severn Trent Services as your fiscal advisors and managers and this is our responsibility. Ms. Rower is working with Ms. Kay Woodward, Ms. Susan Walker and Mr. Dan Daly on the accounting side to make sure we have a continuous flow of information.

As the accounting records are updated, this information flows into our system where we can keep track of it. We will try to get these systems up to date. I am concerned we do not have up-to-date financial statements for this District. While I was not present at your last meeting talking about contractor’s payments, I signed many payment requisitions in the last month as well as the Chairman. We made significant progress in getting those up to speed. There is a lot of shared staff. Mr. Hyche as the Operations Manager provides the operations oversight for all of your operations. You have your own staff at NSID, who are considered to be your employees solely at the treatment facility but the supervision runs through here as well as the technical support. Nothing is changing. We are all very much involved with NSID.

Mr. Mendolia asked will the person currently here remain?

Mr. Goscicki responded yes.

B. Attorney’s Report

Mr. Lyles stated our Special Act has continued to make its way through Tallahassee. It has now cleared three committees in the Florida Legislature successfully. The last one was earlier this week. We now go to the full floor of the Senate and House for a final vote. I should be able to report to you at the next meeting that the bill has passed.

C. Engineer’s Report – Discussion of Request from WCI and NSID to Take Over Maintenance of Medians on University Drive & Trails End

Ms. Early stated Trails End and University Drive were constructed using bond funds. They have now been accepted by the City of Parkland and I am trying to transfer them to the City of Parkland. The agreements came before the Board a couple of meetings ago; however, the City of Parkland will not sign off on the documents because there is an issue of maintenance of the landscape medians on these roads. The city was under the impression WCI was going to enter into an agreement with them. NSID needs to get these roads transferred to them and I need some assistance. WCI is requesting NSID take over maintenance of the median landscaped areas.

Mr. Mendolia stated no way. I know for a fact when you build and put a road in and have it dedicated to the city, they take it over, no matter what the situation is. This is standard operating procedure. In the development I live in, we have NSID working for us. However, in a case like this, I definitely say no. You have insurance issues and problems with people getting hurt. If there are problems, they call the city; not the Water Company.

Ms. Early stated I thought Mr. Lyles could help me. I do not know what else to do to get these roads off of the jurisdiction of NSID.

Mr. Lyles stated we were looking for direction and I think you just received it from the Board.

Ms. Early stated since NSID will not taken them over, I have to speak to the City of Parkland and WCI to get this matter resolved.

Mr. Goscicki stated I will work with the engineer and schedule a meeting with WCI and the City of Parkland. This is not a new issue.

Mr. Mendolia asked when was the last time we did this?

Mr. Goscicki responded you have never taken on this type of maintenance responsibility. It is normally done by the city. If there is upscale landscaping as part of a community, a city might enter into an agreement with the HOA. The HOA may then say, “We will reimburse you for the basic maintenance of mowing the grass and any remaining expenses”. There are different avenues. We need to get WCI and the city together as it is their issue to work out.

Mr. Berry stated I am a land developer for WCI. The only reason we are here tonight is because we have had ongoing discussions with the city. We tried to negotiate with the city and even volunteered to transfer the maintenance responsibility for several medians adjacent to developments where we still have some influence over the HOA to those entities. Unfortunately, we have no developments adjacent to the medians on University Drive. We made proposal after proposal to the city and they ignored us. Your engineer, Ms. Early said the city accepted these roads and these are not our roads any longer. We just assume give them to the city. We are looking for assistance. NSID is not in the business of maintaining or owning roads. We would be happy to help you facilitate this process.

Mr. Mendolia stated we are on the same side and have the same problem. However, I believe this problem belongs to the City of Parkland.

Mr. Berry stated I agree.

Mr. Lyles stated it has been brought before the Board and the Board has given its policy decision and direction. It is up to the staff to get together with WCI and the city to resolve this matter. We will report to the Board at the next meeting. We understand what your direction is and we will go out and try to implement it.

Ms. Early asked is it legally correct for the city to not to sign off on these? Median maintenance has nothing to do with NSID. In my opinion, they should be signing these agreements and working it out.

Mr. Lyles responded if you are talking about the turnover or dedication to the city, they do not have to accept anything they do not want to. This is the law. If we record a deed or file some instrument indicating we are turning something over to the city, this act is not complete until the city formally accepts it. The final action is the city accepting it. Apparently they want to negotiate further. Maybe they do not understand we built the road and used bond and District funds. Through Mr. Goscicki, we need to get this explained correctly. We will work on this and report back to the Board at the next meeting.

Mr. Goscicki stated there was a follow-up meeting with SFWMD as a result of what took place at the last meeting. I spoke with Mr. Rodriguez prior to the meeting. Discussions are continuing. There is another meeting scheduled for April 28^th.

Mr. Rodriguez stated April 23^rd. This meeting is for the modification of the Water Consumptive Use permit.

Mr. Goscicki stated Mr. Hyche will be attending with CH2M-Hill. I will try to attend as well and report back to the Board at the next meeting.

TENTH ORDER OF BUSINESS Approval of Requisitions and Invoices

Mr. Goscicki stated by the next meeting, we hope to have more complete financials. We will start providing them to you on a more routine basis. It is nice to see where the money is going and how much money you have.

There being no questions or comments,

On MOTION by Mr. Mendelson seconded by Mr. Mendolia with all in favor the requisitions and invoices for the month of March were approved.

ELEVENTH ORDER OF BUSINESS Supervisor’s Requests and Audience Comments

There being no requests or comments,

TWELFTH ORDER OF BUSINESS Adjournment

There being no further business,

On MOTION by Mr. Mendelson seconded by Mr. Mendolia with all in favor the meeting was adjourned.

Steve Mendelson Salvatore J. Mendolia

Secretary President