MINUTES OF MEETING
NORTH SPRINGS IMPROVEMENT
DISTRICT
The regular meeting of the Board of Supervisors of the North Springs
Improvement District was held on
Present and constituting a quorum were:
Salvatore Mendolia
President
Steve Mendelson
Secretary
Also present were:
John Petty
Manager
Dennis Lyles
Attorney
Jane Early
Engineer
John Carter
WCI Communities, Inc.
Warren Craven
Tousa Homes
Jason Engleman
Tousa Homes
Paul Brewer
Paul E. Brewer & Associates
John McKune
Consultant
Jean M. Rugg
Janice Larned
Severn Trent Services
Sandra Demarco
Severn Trent Services
FIRST ORDER OF BUSINESS
Roll Call
Mr. Mendolia
called the meeting to order and Mr. Petty called the roll.
SECOND ORDER OF BUSINESS
Approval of the Minutes of the October 11, 2006
Meeting
Mr. Petty stated each Board member received a copy of the minutes of the
October 11, 2006 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 October 11, 2006 meeting were
approved.
THIRD ORDER OF BUSINESS
Consideration of Release of Canal Reservations
A. Heron
Bay North Plat 1
B. Heron
Bay North Plat 2
Ms. Early stated
this is a typical release of easements.
We review them when new development is taking place. There is a recommendation letter in the
agenda.
Mr. Mendolia asked has this been processed through the
system?
Ms. Early responded yes.
They send it to us to verify we will not have a
problem.
Mr. Lyles stated the end of the process is for you to approve it after
staff has reviewed it and made recommendations.
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor the release of canal reservations for Heron Bay
North Plat 1 and 2 were approved.
FOURTH ORDER OF BUSINESS
Consideration of Change Orders
A.
Change Order No. 1 with Triple R. Paving for Parkland Village
Drainageways for a Net Increase of $15,005
Ms. Early stated if you
recall, we did the lakes for the Parkland Village development in May. This change order is for new
criteria. We need to install fences
as required by NPDES. A portion of
it will be Tousa Homes’ cost and a portion of it will be NSID’s cost. The NSID portion will be
$6,300.
Mr. Mendolia asked did you know about this?
Mr. Petty responded no sir.
Parkland Village is an area being undertaken by Tousa Homes. We approved them as an inheritor of WCI
Communities, Inc.’s arrangement with us for funding. They are doing the work out there and I
believe this has to do with a funding agreement. We do not have any money to pay for
this.
Ms. Early stated this change order is incorporating the NPDES requirement
for stormwater prevention. They
need to have sediment control for the existing catch basins around the
system. They need to have wash
areas for the trucks when they enter and leave the site.
Mr. Petty stated because we granted Tousa Homes the same privilege of
working with us on funding agreements, if they get a change order they bring it
to our attention for approval. The
intention is at some point we will issue bonds for this particular parcel in
which these types of projects, certified by the engineer and approved by the
Board, will be paid for. The funds
are not coming from us now, but we are committing to them.
Mr. Lyles stated they will not come from your general revenues. If and when we close on the bonds you
previously authorized, it will be paid for from that particular area. It will come out of bond proceeds. At this point you are agreeing to work
cooperatively with them. The
financial risk is the developers.
It will never become a general obligation of the District.
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor Change Order No. 1 with Triple R. Paving for
Parkland Village drainageways for a net increase of $15,005 was
approved.
B.
Change Order No. 2 with National Home Building and Remodeling Corporation
for a Net Increase of $41,950
Mr. Petty stated this is our contractor working on The Commons. The contractor miscalculated the
shingles and roofing materials. He
is asking for a change order after checking his calculations. The engineer recommends we approve the
change order. This is an honest
mistake. He is openly admitting his
fault and agrees to abide by our decision.
The roof will be paid for by our insurance carrier and FEMA funds. Our concern is he will cut back on
quality if we do not approve the change order.
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor Change Order No. 2 with National Home Building
and Remodeling Corporation for a net increase of $41,950 was
approved.
FIFTH ORDER OF BUSINESS
Consideration of Permits
A. Rayel
Estates
Ms. Early stated
this is a typical surface water permit.
It is a re-submittal. When
they do a development they have to submit for a drainage permit. We have to go through the calculations
and make sure they meet requirements.
Mr. Mendolia asked why was this not done sooner? Houses are being developed in the
area.
Ms. Early responded I was not aware of this.
Mr. Petty stated they are not supposed to be able to pull a building
permit until they get our approval for a drainage permit.
Ms. Early stated they cannot get a stamp until they have a permit from
us. I do not believe they can
develop without this permit.
Mr. Petty stated we will check and make sure he has not started
construction.
Ms. Early stated I will go over there. I do not see how he could have pulled a
permit to start building without our permit.
Mr. Brewer stated they started constructing houses.
Ms. Early stated the City of Parkland needs to issue them a
permit.
Mr. Brewer stated they did.
Mr. Petty stated we need to talk to the city and make sure our process is
put in there so they do not give permits without our drainage permits. Our permit should be part of their
checklist before issuing a building permit.
Mr. Mendolia asked do you want to table this?
Mr. Petty responded I would hold off until we find out what is going
on.
Mr. Mendolia stated I agree.
Ms. Early stated there is no problem with the permit application. They meet the criteria.
Mr. Lyles stated there seems to be a miscommunication or a gap at the
city in processing the permits they issue.
There is no problem with the application before you for which you have
jurisdiction. With the engineer’s
positive recommendation you can approve it. Staff has indicated we will get to the
bottom of the problem with the city.
If we hold this up, it is possible the city will red tag the project when
we go to the city. The applicant
did not do anything wrong. I feel
with Ms. Early’s commitment to talk to the city, you can approve the application
before you today.
Mr. Petty stated I agree with counsel and I do not want to hold anyone
up. A great deal of this is done in
faith. When they submit an
application we assume they are doing so honestly and according to our
criteria. The plans Ms. Early
reviewed are on fair ground. It
will now have to be as built conditions.
The calculations before you build and after you build,
change.
Mr. Brewer stated the number of houses is calculated in the design.
Mr. Petty stated I suggest we give approval conditioned upon the
engineer’s further review.
On MOTION by Mr. Mendolia seconded by Mr.
Mendelson with all in favor the permit for Rayel Estates was approved pending
further review by the engineer.
B.
Revised Plans for Elementary School ‘Z’
Ms. Early stated
this is the elementary school on the southwest corner of University Drive and
Trails End. They made revisions to
their plans and resubmitted them.
We reviewed the calculations and recommend approval of the
permit.
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor the revised plans for Elementary School ‘Z’ were
approved.
SIXTH ORDER OF BUSINESS
Staff Reports
A.
Manager’s Report – Bids for the Purchase of Light
Trucks
Mr. Petty stated
we put out competitive bids for trucks.
In the past we leased them.
Leasing costs have crept up year after year. The prices have become so high, it is
less expensive to buy. We put them
out to bid and the price is phenomenal.
We recommend award of bid to the lowest responsive bidder, which is
Plantation Ford.
Mr. Mendolia asked how many?
Mr. Petty responded we are looking to purchase two. If we need more, we will come before the
Board.
Mr. Mendolia stated it is a good price.
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor the bid for purchase of light trucks was awarded
to Plantation Ford in the amount of $14,688.75 for a 2007 Ford Ranger and
$16,299.75 for a 2007 Ford F150 4x2.
Mr. Petty stated I have a slide show for you. This is informational only. We are not asking for action at this
time. We will ask you for
direction. It has to do with Heron
Bay. This is a recent issue brought
to us by our engineer. We received
a call from WCI Communities, Inc. approximately two days after our recent bond
issue. They told us they are going
to stop some contracts or slow down.
We just closed on the bonds with an absorption schedule, which did not
anticipate a slow down.
Funding comes from a close interaction between ourselves and WCI
Communities, Inc. We look to them
for part of the funding because we want a completed development where people can
live. It is what substantiates the
assessments on the lots and secures our long term debts. We have a close knit partnership with
WCI Communities, Inc. When they
change their development timeframe we also look to it.
The issue is there is a change in development status. It is not a big change in the
industry. We always had hot times
and cold times. We are currently in
a cold time. WCI Communities, Inc.
is looking to slow down or stop and we discussed whether the District should
slow down or stop its corresponding contracts as well. Will WCI Communities, Inc. participate
in further funding? If due to an
industry wide slow down, should the District continue with the Parkland Village
Bond? We are going forward and we
wanted you to know it. We will
carefully move ahead with your permission.
If we are in a material slow down in the industry, Tousa Homes may ask us
to slow down in the future as well.
We planned approximately 852 units in this bond issue. There are 102 units sold. There are 164 units in construction and
they are near completion. There are
336 units completed, which is WCI Communities, Inc.’s inventory to sell. There are approximately 250 undeveloped
units. This will put over 500 units
in WCI Communities, Inc.’s inventory.
We have a bond issue out to make ready if WCI Communities, Inc. completed
there part of the financing as well.
We talked with WCI Communities, Inc. and their slow down/stop will affect
the areas known as the 50’s, 65’s and 75’s. The other areas should be completed
because we are so far along, it will be silly not to complete them. The money in the bond funds will sit
until the period of time until the market changes or until such time actions are
required by the bond. We do not
want to get ahead of WCI Communities, Inc.
We want to be shoulder to shoulder as they go along. They do not want excess inventory
because if we put the money in the ground, assessments will hit them hard. If the money can sit and earn interest,
it will offset these costs. There
are limits to how far we can go, but it is what we would like to do.
We have the issue of Parkland Village, which is Tousa Homes. They are doing their work and planning
ahead. We have a bond issue planned
for them and our underwriter is actively going ahead. Staff is working with the engineer and would like to work with the
underwriter as well as the developer.
We want to discuss their schedule.
We do not want to do a bond issue prematurely and have their timeframe
shortened in a soft market. If you
concur, staff will work with counsel to work with our contractors in order to
slow them down to the same pace as WCI Communities, Inc. We will do it through negotiation and
will follow up by change order. If
it is felt the contract should be cancelled, we will need to come back to you
for consideration because there will be costs and concerns. Mr. Lyles and I had a brief discussion
about it. We would like your
permission to talk with the contractors and negotiate a slower schedule.
Mr. Mendolia asked did you have a meeting with WCI Communities, Inc. and Tousa Homes in
reference to Parkland Village?
Mr. Petty responded we have not met with Tousa Homes, but we did meet
with WCI Communities, Inc. This
happened recently. It is a soft
market. Because WCI Communities,
Inc. is a public player open in the stock market, they are getting
battered. We wanted to check with
them first. Tousa Homes has not
spent a great deal of money. They
are starting on their earth work.
Mr. Mendolia stated we still need to talk with
them.
Mr. Petty stated yes sir.
Mr. Mendolia stated if any problems come up, we will discuss them.
Mr. Craven stated I represent Tousa Homes on this project. Our plan is to move at the pace we
originally discussed. We are
actively finishing the infrastructure plans and hope to have them out to bid
within the next 30 days. We do not
anticipate a slow down at this point.
We would like to sit down with the District Manager as well as the bond team to go over details because we
would like to proceed with the bond issue.
It sat in limbo waiting for permits. We now have all the permits to start
working. We would like to move
forward.
Mr. Mendolia stated there may be a problem because they are not WCI
Communities, Inc. They want to go
full speed ahead.
Mr. Petty stated it is set up so the land receiving the benefits pays for
it. The risk is borne by the
landowner.
Mr. Carter stated I am the Vice President of Development for the east
cost for WCI Communities, Inc. They
have a blank slate and are coming off the ground. We have over 2,300 units in Heron
Bay. We have a backlog in place and
we would like to see some of the inventory move before we commit to adding to
the inventory. Tousa Homes is
coming off the ground and they do not have this situation. We do not want a complete shutdown. Our desire is to look at this on a phase
by phase situation. We will work
with the District and the contractor.
Mr. Mendolia stated it is fine with me.
Mr. Craven stated I agree we are in different situations. I will call next week to set up a
time.
Mr. Petty stated that will be good.
B.
Attorney
Mr. Lyles stated
we met the deadline and had the final version of our amendment to the special
act filed with the Broward County Legislative Delegation. We did not get a sponsor for our bill
yet because of the elections. We
are working on getting sponsors and so far it is smooth sailing.
I want to go back to the matter Mr. Petty brought to your attention
regarding the two developments, the assessment areas and the bond issues. He brought this issue to me
approximately 10 days ago. I had a
number of calls with bond counsel and Ms. Early. We are on this to make sure it is
handled in a correct way. We have
certain potential downsides to terminate or slow down the project. If we negotiate something with a little
cost involved, it will come out of the bond proceeds.
The key thing is to not have something happen, which is a benefit fault
or a material change we have to report to our dissemination agent as well as the
investment community. We have a
schedule, which carries through 2009.
We see no indication from WCI Communities, Inc. that the overall schedule
will not be met. It may not be as
front loaded as originally anticipated.
There is a three year period you can run into trouble with arbitrage and
lose some interest earnings, but the risk is with Tousa Homes and WCI
Communities, Inc.
The properties they own are the source of the assessment payments to
retire these bonds. If the program
is slower, it is their choice. They
will be writing a check to the District to pay these assessments as opposed to a
future homeowner. Although it is
unusual to bring this to you and point this out, it is being carefully
reviewed. Bond counsel knows if
certain things fall through, it has to be the subject of a report through the
investment community. There is no
reason to tell you there is trouble.
It is an adjustment we are going to make on your behalf and if anything
happens, it will come before you.
C.
Engineer
Ms. Early stated
I have to discuss the mitigation bid we were doing with WCI Communities,
Inc. The existing mitigation area
in Heron Bay is not up to standards.
They have died off and have not been taken care of. There are additional mitigation areas
they have to build. We had meetings
with Mr. Carter regarding the cost.
He agreed to a 50/50 split to cover the costs because the District had a
contract with the maintenance company to maintain the mitigation area and it
resulted in some loss . We bid the
project. Miller Legg’s estimate was
$280,000. I had one bid for
$688,000.
Mr. Petty stated our recommendation is to reject the bid.
Ms. Early stated I talked to Miller Legg. He will revisit his plans and possibly
make them more detailed. There may
be some things they did not understand.
We might have a pre-bid meeting as well.
Mr. Mendolia asked were you aware of this?
Mr. Petty responded we accepted this approximately 10 years ago. WCI Communities, Inc. built it. It was one of the first conditions of
the county to put plants in the water management system. The District hired a contractor to
maintain the plants. No one
replaced any of the plantings as they died off. WCI Communities, Inc. did not get their
permit approval at the time. The
county came out and looked at the mitigation area, which does not look
good. I talked to you about this
during the budget process. We have
money in the budget to do this. WCI
Communities, Inc. was doing the bid specifications with the engineer. The problem is Ms. Patton was doing this
and she is no longer with WCI Communities, Inc. We need to discuss this with her
replacement. We need to re-bid this
and stay within our budget.
Mr. Mendolia asked do you need us to do anything?
Mr. Petty responded we need you to reject the bid.
On MOTION by Mr. Mendolia seconded by Mr.
Mendelson with all in favor the bid received for the mitigation area in the
amount of $688,000 was rejected.
Ms. Early stated I have one more item regarding the insurance claim for
the clubhouse. The original claim
Travelers wanted to give the District was $83,103 minus the $50,000
deductible. We received a check for
$33,000. Early public adjusting has
it up to $182,000. Travelers agreed
to this number. We are trying to
get an additional $10,000. They
agreed to $182,000, which means minus the $33,000 check we received as well as
the $50,000 deductible we will receive a check in the amount of
$99,315.
Mr. Mendolia asked is this subject to approval?
Mr. Petty responded this is just for status.
Ms. Early stated I received the final plans for the tennis courts today
from the architect.
Mr. Petty stated we are progressing slower than we hoped, but we are
doing well by other people’s standards.
Mr. Mendolia asked will we have something by next
month?
Ms. Early responded it depends on what we want to do. I can get a bid from the contractor
currently working on the clubhouse.
I am having trouble getting bids.
Mr. Petty stated in the past the Board directed us to bid this as soon as
possible. We were waiting for the
site plan approval from the City of Coral Springs before bidding it because we
needed to know what the layout was going to be. Now that we have it, you gave us
instruction to put it out to bid as soon as possible for all four courts subject
to funding. It is our job to get
funding for you by the time you award the bid.
Ms. Early stated I have to do the specifications and I do not know if I
will have it for the next meeting.
Mr. Mendolia asked why can we not submit the architect’s plans for the
bid specifications?
Ms. Early responded I can get a quote from the contractor who is
currently working on the clubhouse.
Mr. Petty stated our normal procedure is to advertise the bid. Tennis contractors are well known in the
area. I see no reason why we cannot
invite them to bid. It may help out
the process, but we are still stuck with 30 days. We will put these out to bid as soon as
Ms. Early finishes the specifications.
We will hopefully have it at the next meeting. If not, we will have it the soonest
possible.
SEVENTH ORDER OF BUSINESS
Approval of Requisitions and Invoices
There being no
questions or comments,
On MOTION by Mr. Mendelson seconded by
Mr. Mendolia with all in favor the requisitions and invoices were
approved.
EIGHTH ORDER OF BUSINESS
Supervisor’s Requests and Audience Comments
There not being
any, the next item followed.
NINTH ORDER OF BUSINESS
Adjournment
There being no
further business,
On MOTION by Mr. Mendolia seconded by Mr.
Mendelson with all in favor the meeting was
adjourned.
Steve Mendelson
Salvatore J.
Mendolia
Secretary
Chairman