MINUTES OF MEETING
NORTH SPRINGS IMPROVEMENT DISTRICT

The regular meeting of the Board of Supervisors of the North Springs Improvement District was held Wednesday, December 2, 2009 at 5:08 p.m. in the district office, 10300 N. W. 11 Manor, Coral Springs, Florida.

Present and constituting a quorum were:

Steve Mendelson President

David Gray Secretary

Vincent Morretti Assistant Secretary

Also present were:

Doug Hyche District Manager

Dennis Lyles District Counsel

Jane Early District Engineer

Rod Colon Director of Operations

Brenda Schurz District Administrator

Cory Johnson CH2M Hill

Jan Zilmer Human Resource Director

Kay Woodward District Accountant

Dan Daly CSID Director of Operations

Joe Sabino HBC Clubhouse Manager

Donna Holiday GMS-South Florida, LLC

FIRST ORDER OF BUSINESS Roll Call

Mr. Hyche called the meeting to order at 5:08 p.m.

SECOND ORDER OF BUSINESS Approval of the Minutes of the November

4, 2009 Meeting

Mr. Hyche stated the next item is approval of the minutes of the November 4,

2009 meeting. Are there any questions or comments on the minutes? There not being any,

On MOTION by Mr. Gray seconded by Mr. Mendelson with all in favor the minutes of the November 4, 2009 meeting were approved as presented.

THIRD ORDER OF BUSINESS Consideration of Resolution 2010-01

Amending the Water and Sewer Budget for Fiscal Year 2010

Mr. Hyche stated item three is consideration of Resolution 2010-01 amending the

water and sewer budget for fiscal year 2010.

Mr. Gray stated as I understand it part of the amendment deals with the 1.1% margin we need for the bonds.

Mr. Hyche stated that is correct.

Mr. Gray stated I have a question on the additions and deletions. Under the additions on Exhibit A, operating revenues, it lists that we had projected $100,080 in interest investments and now we have zero. What is the move there?

Ms. Woodward stated one of the things that you want to provide for under debt service coverage is not exactly 1.1% coverage. You want more than that in case emergency expenditures have to be made during the year. We know right now that roughly the funds that are at U.S. Bank in trust for your bonds are earning exactly zero percent. In order to be conservative we are basically removing any budget expectation for that revenue to come in. To the extent that you do earn interest income those funds will be available in absorbing expenditures that come up during the year.

Mr. Gray stated we are actually earning nothing.

Ms. Woodward responded from U.S. Bank yes.

Mr. Gray stated our coverage calculations is the change from 1.14% to 1.20%. Ms. Woodward responded yes, it goes up slightly.

Mr. Gray stated we had a professional management consulting agreement that we canceled which was $108,324.

Mr. Hyche stated that is correct.

Mr. Gray stated even with that deletion the additions went up by $196,785. Mr. Hyche stated that is correct.

Mr. Gray stated there has to be something other than the fact that we absorbed the management services as originally planned. I'm missing what that is.

Mr. Hyche stated there were two new employees hired to help facilitate accounts payable.

Mr. Gray stated I understood the increase. When we discussed it earlier I thought we had a fairly neutral exchange on the costs that we were going to incur in the new hires with the loss of the management consulting numbers.

Mr. Colon stated we actually eliminated one of the plant positions and one of the employees that was hired was a wash and there was no increase on that end.

Mr. Gray stated it appears that instead of breaking even that it cost us three times the amount.

Mr. Hyche stated we deleted $59,000 in payroll salaries and another $64,000 in contract personnel. You have an additional $34,000 brought back through utility services from CSID.

Mr. Gray stated you are talking about under the operating field services section. Is that something they used to cover under the previous agreement?

Mr. Hyche stated it was a split cost.

Mr. Gray stated you are saving half of the split cost. That is the other half. There was a reduction on the other side of it. The way it ran before involved that expense on another point.

Mr. Hyche stated that is correct.

On MOTION by Mr. Gray seconded by Mr. Mendelson with all in favor Resolution 2010-01 was approved.

FOURTH ORDER OF BUSINESS Consideration of Work Authorizations

A. WA 193 for Record Drawings and Electronic Plans Update for Water Main, Force Main and Raw Water Main in the Amount of $12,000

Mr. Hyche stated the next item is consideration of work authorization 193 for record drawings and electronic plans update for water force mains and raw water mains in the amount of $12,000.

Mr. Gray asked is this part of the normal budget? I assume it is something standard or is this something unusual we have to do?

Mr. Colon stated our original plans are from the 1970's and 1980's and they are so deteriorated that we would like to get a digital form of them. This project involves digitizing our plans where we are able to print them out at will and basically preserve our infrastructure.

Mr. Gray asked is that part of the budget that is calculated into a general operating type item?

Mr. Colon responded it is more of a contingency. We have plans that are falling apart when you pull them out of a drawer and we realized this is something that has to be done.

Mr. Gray stated you are going to digitize everything which I think is a good idea. Mr. Hyche stated this is not a budgeted item.

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor work authorization no. 192 was approved.

B. WA 194 for Construction Phase Services for NSID Booster Pump Station Chemical Feed System Improvements for a Lump Sum of $50,824

Mr. Hyche stated item B is work authorization 194 for construction phase

services for booster pump station chemical feed system improvements for a lump sum of $50,824.

Mr. Gray stated this is for the changeover of chemicals that we have been talking about. Is this in agreement with the original projections that were done?

Ms. Early stated budgets were projected on the total costs of this project which included the engineering.

Mr. Gray are we on track to do what we planned to do at the budget we planned

to do it at?

Mr. Colon responded it is below budget because we decided to put it out to bid ourselves. We are using the engineers less and less so we are going to save money on that. Our projects will be handled a little differently and we will be a lot more hands

on.

Mr. Gray stated so it is within the budget and it is planned for and the money is

available.

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor work authorization no. 194 was approved.

FIFTH ORDER OF BUSINESS Staff Reports

A. Manager

i. Land Acquisition - the Wedge

Mr. Hyche stated before you is a letter on land acquisition concerning the wedge property.

Mr. Mendelson asked will this have to be surveyed?

Mr. Colon responded right now we are just asking permission from the board to move forward with some planning to see if it is in our interests to acquire the property. There is no commitment. We did some negotiations with the landowner but everything is verbal right now and there are a lot of contingencies so before we spend money on a survey and an environmental assessment we are looking to see if this is something we want to do.

Mr. Lyles stated this is requesting a green light from the board to proceed as staff both administrative and legal to look into this potential acquisition. Another recommendation if this deal firms up is that there be a real estate appraisal to confirm the price we are getting and things like that. It is a significant purchase and we wanted the board to know that it was a matter that we would like you to authorize us to

proceed with at least investigating. If you don't want to proceed with that we won't spend the time or the preliminary money to even investigate it further.

Mr. Mendelson stated I think it is important to check that out.

Mr. Johnson stated some time ago we did a master plan for putting some type of expansion on the RO facility at the NSID site. Given the site constraints it is not impossible but it would be a real challenge. You would also have to drill additional wells along with an injection well which is probably an 18 month project with a 150 foot drilling rig in the middle of a residential neighborhood so I think politically that may not be in the district's interests.

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor staff was authorized to move forward with investigating and planning work for the possible acquisition of property in the wedge.

ii. Consideration of Proposals for Landscape Maintenance for the Parkland Isles Perimeter Berm

Mr. Hyche stated item two is consideration of proposals for landscape maintenance for the Parkland Isles perimeter berm. You have in front of you the three quotes we received.

Mr. Gray stated these are not the same.

Ms. Schurz stated they were all provided the same scope of services.

Mr. Gray stated these are proposals but we will use our contract.

Ms. Schurz stated this was a proposal and a contract will be provided to them. Mr. Lyles asked did this go out as an RFP?

Mr. Colon stated the board has the option to go out to bid. We wanted to explore the territory to get proposals. We also have present a representative of Valley Crest which was the company doing the Parkland Isle•berm.

Mr. Gray asked how do these compare to our budget?

Mr. Colon responded they are $40,000 less.

Ms. Schurz stated one proposal came in at the budgeted amount but the other two were about the same and less than what we budgeted.

Mr. Hyche stated we have a representative of Valley Crest here if he would like to speak on this.

Mr. Cameron stated I manage the Coral Springs branch for Valley Crest Landscape Management. We currently do the contract for Parkland Isles. Last week we received a termination letter and the reason I'm here is to ask you if it is possible to reconsider terminating our contract or making us a part of the bid process if it does go out to bid. We have been involved in that job for over 3¹/2 years and have a very good relationship with the management company of that community and many of the homeowners along the berm we work hand in hand with extensively to keep everybody happy on that berm. We were kind of blindsided that we got a termination letter on this job especially for some of the reasons stated in the letter that you have received complaints from the City of Parkland and some residents and that there was an investigation that we really had no indication of that and we have not been able to validate any of those complaints from the City of Parkland or any residents. I spoke with the landscape committee of Parkland Isles, I spoke to the management company, I spoke to Brenda last week about it and we just haven't been able to find any of this stuff as indicated in the letter. I would like to see if it is possible that you reconsider us for the project if it does go back out to bid or if you will keep us on as the landscaper.

Mr. Gray stated one of the proposals matches your contract but the other two do

not.

Ms. Schurz stated I would prepare the contract and have Dennis review it.

Mr. Cameron stated the current scope we provide is complete full service

mulching, tree trimming, complete all inclusive irrigation. It is a full service contract. Mr. Morretti asked what is the current price of your contract?

Mr. Cameron responded it was originally a three year contract and we waived our increase for the last two years so we actually lowered the price at the beginning of last year. It is $15,000 a month $180,000 a year all inclusive.

Mr. Gray stated the problem I have is if I take the guy who actually has a verbatim contract to what is written here, his price is $6,000 a month more than the other two guys who don't have something saying they really have the same contract we are talking about. That gives me very little faith with that big of a difference that these two guys are bidding the same thing that the third one is bidding.

Mr. Hyche stated we can write up a contract and have them sign that contract based on their proposed price.

Mr. Gray stated that is what I would like to have done. I wouldn't mind going month to month and getting a proposal back from you either then we could hear from management on the recommendation regarding that first.

Mr. Colon stated one of the reasons we terminated Valley Crest and I know Mr. Cameron said he did some investigating and couldn't validate the complaints but the complaints are very real. I was at the commission meeting when they brought up Parkland Isles. Also when residents call in they are logged in along with their complaint. There was a performance issue and that is why we are sitting here today taking other solicitations. We have a list of everyone who complained, their address and what they said. I suggest before we even consider that we need to actually meet and see what you would be willing to do to address these issues. The complaints are very real and that is why we are in the situation we are in today.

Mr. Hyche stated we have attempted to notify Valley Crest when we received these complaints.

Ms. Schurz stated previously there was immediate response but there are a few instances where it has taken months to address the issue.

Mr. Gray stated you are not interested in having them bid at all.

Mr. Colon stated the complaints are very real and I know Brenda has dealt with this and done an Excel sheet and listed the people who were complaining along with the addresses and what has been happening. I was at the commission meeting and for them to bring up Parkland Isles is also an issue. This is one of the reasons we decided to terminate their services. It is really up to the board if they want to give you a second

chance or not. Also you are very over priced compared to some of the other quotes we received.

Mr. Cameron stated I would like the opportunity to review that complaint sheet. I have never seen that sheet and we could address it.

Ms. Schurz stated these are addressed. Every time someone calls I log it in.

Mr. Lyles stated staff has reported to the board that there is documentation of complaints and the lack of response or delayed response and also when we were on your behalf in front of the city commission of Parkland we got jumped over these issues which are documented on the spreadsheet that Brenda provided and explained to you today. It is really a two step process. You need to approve terminating the Valley Crest agreement, giving them notice and terminating their agreement and then if you prefer to authorize the not to exceed figure that was submitted by the low proposer in response to the solicitation of proposals then you can approve that and we can get a contract drafted at that not to exceed price.

Mr. Gray stated that is a good recommendation because as long as they are in agreement with what it is then we do have an apples to apples proposal because they are signing it.

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor staff was authorized to terminate the Valley Crest contract for the Parkland Isles perimeter berm for cause.

On MOTION by Mr. Mendelson seconded by Mr. Gray with all in favor staff was authorized to prepare a contract with Terra Firm Services, Inc. for the maintenance of the Parkland Isles perimeter berm in an amount not to exceed $140,080 per year contingent upon their acceptance of the scope of services that was attached to our request for proposals.

There not being any, the next item followed.

C. Engineer

i. Project(s) Status Report

Ms. Early stated we have our typical project status update form that is in your package.

ii. Updated Supplement to Master Engineer's Report for Assessment Areas

Ms. Early stated item two is an updated supplement to master engineer's report for assessment area. In the process of pump station no. 1 our re-piping and the reason we are doing that is to give Nick more capability of pumping because of all of the construction and the building we have done in Heron Bay and Parkland Golf & County Club. I was thinking about the cost of this and I felt that this actually should be paid out of one of the special assessment bonds because the reason we are doing this project is to accommodate all the lake and additional surface water that we built up there. We had been paying it out of general funds. I contacted Ms. Mossing regarding the bonds because she was heavily involved in the bond issue and the master engineer's report that we wrote and I discussed it with her and she agreed. She said I needed to write another supplement to that master engineer's report and include this project. There were a lot of projects that came in under budget so there are funds available in the existing bond issues so we can pay for this project out of the bonds and anything we have paid to date we can reimburse the North Springs general fund from the bond issue. It is approximately $400,000 when the total project is complete that I can reimburse NSID from the bond issue back into the general fund.

Mr. Gray asked what is your recommendation on this?

Mr. Lyles stated it is what the bonds were issued for and I think as the projects evolve and the numbers are finalized for the engineer to go back and calculate how it

could be properly accounted for from an engineering perspective and then bring it to the board is a good way of spending the money the way it should be spent.

On MOTION by Mr. Gray seconded by Mr. Mendelson with all in favor the supplement to the master engineer's report was approved.

iii. Discussion of Water and Sewer Rates This item was tabled.

iv. Consideration of Right of Way Permit to Install a Fence at 8728 Valencia Court, Parkland Florida

Ms. Early stated that is in your agenda along with the letter that we wrote. There

is a utility easement dedicated to both North Springs and the City of Parkland. We don't have any utilities in it but since it is dedicated to us we have to review it and make a recommendation. We are recommending giving them permission with the condition that in the event we have to obtain ingress or egress that they would have to remove the fence at theix expense and our typical conditions. We don't have a problem with it as it is. We don't have anything in the easement.

On MOTION by Mr. Gray seconded by Mr. Mendelson with all in favor the right of way permit to install a fence at 8728 Valencia Court, Parkland, Florida was approved subject to the conditions listed in the engineer's review letter.

SIXTH ORDER OF BUSINESS Approval of Financials and Check

Registers

Mr. Hyche stated the next item is approval of the financials and the check register.