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Minutes 11-21-88MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD AT PRIME BANK PLAZA, BOYNTON BEACH, FLORIDA, MONDAY, NOVEMBER 21, 1988 AT 12:30 P. M. PRESENT Ralph Marchese, Mayor Ezell Hester, Jr., Vice Mayor Leonard Mann, Commissioner Robert Olenik, Jr., Commissioner Arline Weiner, Commissioner Peter L. Cheney, City Manager Betty Boroni, City Clerk Raymond A. Rea, City Attorney Mayor Marchese called the meeting to order at 12:30 P. M. AGENDA APPROVAL City Attorney Rea drew attention to "Awarding $2,500,000 General Obligation Bonds" and said it should be corrected to read, "Awarding $2,390,000 General Obligation Bonds." Under "Other Items", City Manager Cheney added "4. Mailing of Boynton Bulletin, and Commissioner Weiner added "5. Discus- sion of Additional City Commission Workshop Meeting." Vice Mayor Hester moved to accept the agenda as corrected, seconded by Commissioner Weiner. Motion carried 5-0. AWARDING $2,390,000 GENERAL OBLIGATION BONDS City Manager Cheney announced that the bids were opened at 11:00 A. M. for the General Obligation Bond Issue, the proceeds of which will be used to purchase ten acres of land south of Shooters. There were eleven bidders. The opening was attended by a representative of the bond attorneys' office and the City's financial advisors. The bids were opened by Prudential-Bache. David Segal, Prudential-Bache Capital Funding, Boca Raton, said they have served as the City's Financial Advisors for the past three years. They participated in drafting the official statement which was before the Commission. The official statement was a disclosure document which set forth information about the purpose for selling the bonds, ~he legal environment, and financial information about the City so that investors could make a decision as to how comfortable they would be with the credit of the City and provide their interest rates accordingly. Mr. Segal informed the Commission that Prudential-Bache secured a commitment from AMBAC Indemnity Corporation, who -1- MINUTES - REGULAR CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA NOVEMBER 21, 1988 is one of the four principal bond insurers, and was able to get the bonds rated AAA, based upon the insurance commitment from AMBAC Indemnity. The AAA, plus the good financial condition of the City, is allowing Prudential-Bache to market the bonds at very aggressive interest rates. The Commission had a list of who the bidders were and the rate they bid. Mr. Segal said they have bonds scheduled to mature in each year. The investors or commercial banks that bid on the bonds assign an interest rate for each year and based upon how much they are willing to pay the City for the bonds and those interest rates determines what they call the true interest cost. The awards are based upon whose bid comes in with the lowest true interest cost. Mr. Segal told the Commission that the bid submitted by Morgan-Keegan from Tennessee was deemed to be the lowest and the best interest for the City. That bid had a true interest cost of 7.23055%. Mr. Segal stated that was the City's overall borrowing cost for the 20 years of the 2009. That took into account the underwriter's cost as well. The other bids ranged from 7.24483% to 7.43196%. Mr. Segal recommended that the Commission adopt the Bond Resolution which set forth the terms of the bonds. Incorporated with that would be an award of the bonds to a group headed by Morgan-Keegan. City Manager Cheney added that all of the interest rates were checked by Prudential-Bache independently, and they found a mistake made by Southeast Bank. Mr. Segal further added that the actual sale of the bonds, Where the City gets the money and delivers the bonds will take place on December 14th. Vice Mayor Hester began to make a motion when he was interrupted by Attorney Rea, who advised that there should be a motion to award the bid and another motion for the Resolution. Motion to Award Bid Vice Mayor Hester moved, seconded by Commissioner Olenik, to award the bid to Morgan-Keegan & Company, Inc. Motion carried 5-0. -2- MINUTES - REGULAR CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA NOVEMBER 21, 1988 ADOPT RESOLUTION 88-AAAA RELATING TO BOND SALE The Commission had copies of the Resolution before them. On page 19, Section 20, Attorney Rea said they were filling in that the Commission awarded the bonds to Morgan-Keegan & Company, Inc. The lowest bid was attached to the back of the Resolution as Exhibit A. Exhibit B was the other ten bids, which were higher. City Attorney Rea read proposed Resolution AAAA by title only: "RESOLUTION AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES 1988 OF THE CITY OF BOYNTON BEACH, FLORIDA, IN AN AGGREGATE PRINCIPAL AMOUNT OF TWO MILLION THREE HUNDRED NINETY THOUSAND DOLLARS IN ACCORDANCE WITH LAW FOR THE PURPOSE OF PROVIDING FUNDS WHICH, TOGETHER WITH OTHER AVAILABLE FUNDS, WILL BE SUFFICIENT TO PAY THE COST OF ACQUIRING LAND FOR A PUBLIC PARK; PROVIDING THE DETAILS OF THE BONDS; APPOINTING THE BOND REGISTRAR AND PAYING AGENT; PROVIDING THAT SUCH BONDS SHALL CONSTITUTE GENERAL OBLIGATIONS OF THE CITY AND THAT THE FULL FAITH, CREDIT AND TAXING POWER OF THE CITY SHALL BE IRREVOCABLY PLEDGED FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BONDS; AWARDING THE BONDS TO THE SUCCESSFUL BIDDER; PROVIDING FOR COMPLIANCE WITH CERTAIN PROVISIONS OF THE INTERNAL REVENUE CODE; PROVIDING THE RIGHTS AND REMEDIES OF THE OWNERS OF SUCH BONDS; PROVIDING SEVERABILITY; AND AUTHORIZING RELATED ACTION" Commissioner Olenik called attention to the first lines in Exhibits A and B and said the actual numbers showed "($2,390)" on the "Official Bid Forms", but he thought the written words, "two million three hundred ninety thousand dollars" were legally binding. Commissioner Olenik moved to adopt Resolution 88-AAAA, seconded by Commissioner Mann. Motion carried 5-0. OTHER ITEMS THAT MAY BE ADDED TO THE AGENDA AT THE TIME OF THE MEETING 1. Review of recommendations concerning existing one million gallon water storage tank City Manager Cheney said the City desperately needs to make repairs to this five year old tank. John Guidry, Director of Utilities, and Tom Clark, City Engineer, were present to answer any questions the Commission had. City Manager Cheney said it was now necessary to chemically grout under the tank. Mr. Guidry had informed City Manager Cheney that -3- MINUTES - REGULAR CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA NOVEMBER 21, 1988 not more than one or two firms could do this chemical grouting. City Manager Cheney said The CROM Corporation, Gainesville, Florida, built the tank, and they are almost the only company in Florida that builds tanks. They gave the City a price to repair the inside of the tank. The significant cost for the improvement comes from the foundation work. Mr. Guidry referred to his memo dated November 18, 1988, addressed City Manager Cheney, and stated that they did not think the problem was structural. When they drill the holes in the tank slab, he said Nutting Engineers of Florida, Inc. has equipment that can define where the steel in the slab is. Mr. Guidry explained that the City cannot tell whether there is fill below the concrete and structural steel because it is under the slab, but the City will validate that with Nutting. At this stage, that was the only question of structure that came into view. It was Mayor Marchese's understanding that when they pour the base, they try to assure that the steel rods sit in the middle of the concrete slab. He asked if it could be done by X-ray. Mr. Guidry replied that it is not done by X-ray but by sounding devices. Mayor Marchese wondered if the City would have any recourse if they find the steel was never properly supported and the concrete slab is not reen- forced all the way through. Mr. Guidry thought at that point and time, the City would enter into a different degree of discussion with CROM Corporation. City Manager Cheney was confident that if the City finds CROM Corporation's steel was not properly in place and the concrete was poured around it, CROM would take steps to correct it. He doubted that was the problem. There were further comments. Mr. Guidry informed Commissioner Olenik that demucking did take place, but the critical pressure probe which isolates was not a problem in 1982, '83, and '84. Now the City is really using it, and that linear line really fluctuates, so if soft material is out there and underneath, it squeezes. Mr. Guidry said the City was coming from the standpoint of a chemical grout with a mud jack fill (chemical around the ring to hold in any cement that would be put in and try to effect mud jacking in the process). He stated that tank failures are not an every day occurrence. It does happen, -4- MINUTES - REGULAR CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA NOVEMBER 21, 1988 but when it does, it is due to some element of error that has taken place. Foundation Services, Inc., Orlando, Florida, is the patent holder for the auger pile that the City was recommending. After explaining, Mr. Guidry said if the City does not use the auger pile scenario, the cut would run near $200,000 just in a chemical grouting and mud jacking scenario. He explained how the auger piles would isolate the pea pocket from the foundation. What jacks up the cost is that the City is able to effect installing auger piles without dewatering the site. If they go to a chemical grout, they will have to go into the whole scenario of completely dewatering the site during all grouting processes. Mr. Guidry assumed something on the order of twenty days as far as construction time. He added that there are signifi- cant costs as far as the grout itself is concerned. Mr. Guidry referred to other firms whose equipment could not handle it or who are too busy to help the City and told how he heard about Nutting. After expounding, he told the Commission they concluded that the auger pile approach would be the best. Mayor Marchese asked if Mr. Guidry felt comfortable that the repair could be effectively accomplished without unloading the tank. Mr. Guidry informed him that the tank is unloaded. That was the only way the City found it had catastrophic failure. When he was referring to dewatering, Mr. Guidry was saying dewatering the whole ground structure around. City Manager Cheney said the reason the City discovered the problem was because there was some concern about chlorina- tion, and he explained. When they emptied the tank, they discovered the cracks. Mr. Guidry apprised the Commission that the tank had never been pulled down in nearly six years of operation, and a residue crud has built up on the bottom. He explained that something was eating up the chlorine in the system, so he instructed his staff to clean it out. After elaborating, Mr. Guidry said one thing that has precluded water from flowing out is that the wall has three inches of concrete on one side and three inches on the other and a sheet steel membrane that goes all the way around it. The membrane has not failed. Commissioner Olenik noted Mr. Guidry's memo talked about $100,000. Mr. Guidry responded that he would notice there were several scenarios as to how project management would -5- MINUTES - REGULAR CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA NOVEMBER 21, 1988 have to take place. To include the work effort and the proposal made by Nutting, he said the initial cut would be plus or minus $80,000, but they are thinking it is on the order of plus or minus $100,000. Depending on the degree of take they can get in grouting, Mr. Guidry said it was possible that number could be lowered, and he explained. W-hen the work is authorized, City Manager Cheney said Nutting can do some more borings in the bottom of the tank. Commissioner Olenik asked where the funding will come from. City Manager Cheney answered that it would come from the Utility Fund. Motion Commissioner Olenik moved that the City proceed in accordance with Mr. Guidry's memorandum in rectifying the catatrosphic condition of the one million gallon tank on Woolbright Road. Vice Mayor Hester seconded the motion, and the motion carried 5-0. (A copy of said memo is attached to the original copy of these minutes in the Office of the City Clerk as "Addendum A"). Mr. Guidry told the Commisson he will personally administer the project. Mayor Marchese said he would like to take a look at it. City Manager Cheney informed the Commission that Nutting has a big operation in the City (1310 Neptune Drive), and they have done all of the City's testing on construction projects. 2. Review of recommendations concerning existing three million gallon water storage tank City Manager Cheney said the City discovered this potential problem caused by its neighbors, who did some earth work. In the process of constructing a lake, they went outside of their line. Because they came closer to the City's property than had been anticipated, they disturbed the land and what holds the dirt together. Mr. Guidry called attention to a memo from Chrom Corporation which indicated that under similar conditions, they had a catastrophic failure of a tank in the Orlando area two months after construction. When the surveyor for the devel- opment to the west surveyed the two monument lines, he missed it by six feet on the south line. It is four feet too far to the east to the City's property line. That is the problem. Mr. Guidry said they are going to correct it. The City is under construction. Things have to go forward. -6- MINUTES - REGULAR CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA NOVEMBER 21, 1988 The City knows, with the developer next door, it can work out a method for getting the contractor in to build the tank. That is the City's main concern. Mr. Guidry continued by saying the City's other concern is a grouting ridge that they need to put in the 7½ foot strip of land in order to ensure that future erosion will not take place. After explaining, he said the developer is not opposed to the placing of riprap in that slope. The Engineers, (Post, Buckley, Schuh & Jernigan, Inc., West Palm Beach) did not consider this scenario as a part of their area of responsibility and presented an amendment to their contract on the order of $7,000. Mr. Guidry said some additional things must be done, such as the riprap, and he explained. Right now, he was saying plus or minus $20,000. Commissioner Mann asked if all of the payments would be made by them. Mr. Guidry answered, "No." Commissioner Mann questioned why not. Mr. Guidry explained that Post, Buckley did not have much to do with what the developer to the west did to the City, and he elaborated. City Manager Cheney asked what "them" Commissioner Mann was referring to. He thought one "them" the City should answer and have Attorney Rea think about was the neighboring development. Commissioner Mann agreed, as he thought there should be some punitive damages. City Manager Cheney asked City Attorney Rea if he had a response to the issue. Attorney Rea answered that the City could try to get it from Citrus Glen. City Manager Cheney emphasized that the City needed to proceed with the work. He thought the only claim the City would have against anybody would be its neighbors. He did not think the City had a claim against its contractor. Mr. Guidry stated that the point of tact, diplomacy and finesse on his part was significant here because with the berm being so close to the tank, CROM Corporation needs a 15 foot ring around the tank to construct the tank. The City has asked the developer's Engineer and General Contractor if they would have any problems with the City putting material on the bank and spoiling some earth material in order to let CROM get through there, and they had no problems with that. Their comeback was that it really did not matter because they would have to correct the bank as designed before it is over with. City Manager Cheney said City Attorney Rea would have to look at whether Citrus Glen has a financial obligation. -7- MINUTES - REGULAR CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA NOVEMBER 21, 1988 Mr. Guidry agreed but pointed out that he has to work with them. After discussion, he stated it would take several months before the City can shake out the true costs of the bill. There were further comments. Vice Mayor Hester moved that the City proceed with the repair of the three million gallon tank and that they authorize the City Attorney to see if the City has any legal recourse against Citrus Glen. Motion carried 5-0. 3. Confirm Mayor and City Commission Workshop with Chamber of Commerce on November 22, 1988 at 6:00 P. M. City Manager Cheney discussed this with the chamber Wednesday morning, and he also talked with Craig Livingston, Architect, and Owen Anderson, Executive Vice President, Chamber, and they are looking forward to the joint meeting. City Manager Cheney asked if the Commission had any agenda items they wished to put forth. It was the chamber's feeling that starting.with this meeting, they should begin to meet on a regular basis every two or three months. City Manager Cheney continued that the Chamber felt they should discuss what several of the pressing issues facing the City are, and perhaps they can help each other. Maybe they can discuss issues before they become combative. City Manager cheney asked Mr. Livingston how the Chamber's Board would feel about taking a tour of the City. Mr. Livingston thought it would be an acceptable idea. Mayor Marchese thought the quicker they sat down, laid these things on the table and cleared out some of the misunder- standings, the better. After discussion, it was decided the meeting would be held in the Commission Chambers and they would sit around tables. Commissioner Olenik asked if workshop meetings are adver- tised. City Manager Cheney replied that it is on the City's calendar. 4. Mailing of Boynton Bulletin - requested by City Manager Cheney City Manager Cheney said the Bulletin has always been mailed to the old mailing list, and it does not go to every house- hold. The City now has a mailing list because of the News- letter. Even though it would cost the City more dollars, -8- MINUTES - REGULAR CITY COMMISSION MEETING B~KNTON BEACH, FLORIDA NOVEMBER 21, 1988 City Manager Cheney thought they should use the big mailing list for the issue coming out on December 1st. He thought it was an opportunity to expose to all of the people the kinds of programs the City has, and they should not pass it up. They could see what reaction the City gets and decide about future issues. After discussion, the Commission agreed with this suggestion. 5. Discussion of Additional City Commission Workshop Meeting on January 31st, 1989 at 6:00 P. Requested by Commissioner Weiner Commissioner Weiner requested this meeting because the 4th Tuesday in January (which was when they said they would hold their workshop meetings) will be taken up by the Comprehen- sive Plan. One purpose of this meeting will be to discuss the future plans for Congress Avenue Park. City Manager Cheney pointed out that probably people from Hunters Run will be in attendance at that meeting who, in his judgment, need to understand the status of the project and the effect is will have on Hunters Run. He elaborated. The Commission agreed to the workshop. ADJOURNMENT There being no further business to come before the Commission, the meeting properly adjourned at 1:18 P. M. ATTEST: CITY OF BOYNTON BEACH Commissioner Recording Secretary/ ' (One Tape) !/ Commissioner MEMORANDUM To: Peter L. Cheney, City Manager ~ % , Guidry, Director of Utilities~/ From: John A. Date: November 18, 1988 Subject: Emergency-Repair 1.0 MG Ground Storage Tank Woolbright Road, West of Congress Avenue .... My memorandum of November 15, 1988, related the existence of a catastrophic failure in subject tank. Forensic engineering reveals that the phenomenon was not caused by structural failure of the tank proper; -but, in fact was caused by a "room size" peat/muck pocket, which was not excavated during the construction of the tank. This pocket is disected by the critical pressure bulb (shown on Enclosure 1 profile sketch from Nutting Engineers). The pressure bulb does oscilate due to the degree of fullness of the tank. 'Full conditions represent approximately 1,700 PSF with a greater percentage of deflection taking place in the central area of the slab. As the water level decreases, the pressure bulb oscilates toward the pocket. Due to the operational criticallity of the tank, specifically in recent time, it frequently discharqes down to the 3ft. level. When this occurs, the weights of the tank w~ll and roof force down on the outside of the floor slab. This generates critical stress on peat material, thus, causing the subsidence in the loose sub-surface sand material below the tank. I reviewed the cohtract documents for the construction of the tank. The documents transfe~ed the demucking of the tank site to the contractor and demucking did take place. The resultant problem is that the room sized pocket was missed by both the contractor and inspector. If neither the contractor or the engineer were competent in the area of geophysics, then the potential problem in all probability was never assessed. The City approved and accepted the design plans, bid Specifications and contract documents; and as such, the probability for -~successful litigation is probably nill. I previously estimated the soil stabilization and repair at ± $80,000, which was based on the theoretical "Text Book" solution to the given engineering problem. Subsequently, a design meeting was held in my_ office om November 16, 1988, and the following solutions were reached and recommended for approval at this time: Based on the imperlcal data generated by Nutting Engineers, Inc., and Richard L. Shephard, Inc., the combination of which provided us with below ground soils information and slab settlement and/or deflection information; I have concluded that we will need to place an augur cast -~ile wall to section off the southwest quadrant of the tank. The piles vil! be 14" diameter, driven to a depth of 35ft. 16in. on center, placed on a semi-circular radius between boring Bi and B5, from a due south to due west arc. (35 piles) This will stop the southwest lateral compression of the peat pocket. We will then place a grouting system ADDENDUM A Peter L. Cheney, City Manager Pag~ -2- ~November 18, 1988 underneath the entire floor slab of the tank placed on 5ft. centers, down to-14.00EL. All of the above to be performed by Foundation Service Incorporated. Nutting Engineers, Inc., will establish the slab borehole locations and' will confirm the theoretical voids to be filled during the grouting/mud · jacking program. Verification of voids will be field verified by the hand penetrometer method. After the mud-Jacking program has been injected in 2ft. lifts at approximately 255 points, we will have Nutting Engineers perform 28 x 16ft. confirmation borings (10ft. intervals aroun the diameter of the tank), and density borings underneath the slab to confirm the take. After comp,letion of the above and 48 hours after grouting is complete, CROM Corporation will move in and effect the epoxy repai~. They will pass the repair job on to us at their cost. The project estimated cost is based on good faith quotes, which are summarized below: Foundation Services Inc. $76,700,00 b. Richard L. Shephard & Assoc. 420.00 c. Nutting Engineers, Inc, 15,000.00 d. The CROM Corporation 5,000.00 $97,120.00 Say .......................... $100,000.00 Recommend the Utility Department be authorized to proceed with the repair program on tile 1.0 MG Tank using the services of the four (4 speciality firms. This action is considered an emergency. attachments