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Minutes 05-24-90~ MINUTES OF SPECIAL CITY COMMISSION MEETING HELD COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, THURSDAY, MAY 24, 1990 AT 6:00 P. M. PRESENT Gene Moore, Mayor Lee Wische, Vice Mayor Lillian Artis, Commissioner Robert Olenik, Jr., Commissioner Arline Weiner, Commissioner IN FLORIDA, J. Scott Miller, City Manager Peggy White Boulle, Deputy Clerk Mayor Moore called the meeting to order at 6:00 P.M. ~GENDA ~ity Manager Miller wished to add a brief presentation by H2M Hill on Aquifer Storage Recovery after item 2. No ction needed to be taken at this time, but he wanted the ~ommission to understand the concept. July 4th Fireworks ~ity Manager Miller also wanted to add "July 4th Fireworks" 4o the agenda. He explained that Zambelli Internationale, ~oca Raton, FL, refused to set off the fireworks at Caloosa ark due to the close proximity of the Florida East Coast ~FEC) Railway tracks, the Florida Power & Light Company's FP&L's) lines, the 1-95 corridor, closeness to fuel tanks orth of the vicinity, and due to requirements and regula- tions. Mayor Moore requested this be put off until Tuesday, ~une 5, 1990, as he wanted to make a few phone calls. ~harles Frederick, Director of Recreation and Parks, ~xplained Why he preferred they address this issue tonight. Motion lommissioner Weiner moved that because of the findings of ~he fireworks company, the site be moved back to Boat Ramp ~ark and the f~reworks be shot off the barge. She als~ moved to approve the sum required to do that. Commissioner 51enik seconded the motion. Ir. Frederick advised $15,000 is in the current account for ~he fireworks program. Olivia McLean, Director of Risk ~anagement, told Vice Mayor Wische her major concern was ~o matter what site is chosen, the fireworks insurance dompany will pay and indemnify and hold the City harmless. She understood the fireworks company would have to go under - 1 - MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA MAY 24, 1990 the National Fire Protection Agency's (NFPA's) guidelines in order for their insurance company to pay. Mr. Frederick interjected that the letter from Zambelli said their insurance company will not cover the Caloosa Park site, and they recommended the City use the Intracoastal Waterway site. Discussion ensued about the site, Zambelli, and insurance. A representative of the Fire Department called attention to ~he map and explained why the Caloosa site would not meet Che NFPA requirements. There was discussion about Boat Ramp park. Mr. Frederick informed Commissioner Weiner the City has used Boat Ramp Park for the past four years and has been Snsured during those years. Commissioner Artis questioned whether the same fireworks company was used. Mr. Frederick ~eplied it was a different company. After further discussion, a vote was taken on the motion. The motion carried 4-1. Mayor Moore voted against the ~otion and commented something sinister was going on. ~ommissioner Olenik requested this item be on the agenda at the next Commission meeting on June 5, 1990 so this can be ratified. City Attorney As this was a Special City Commission Meeting, Commissioner 01enik felt the City Attorney should have been present. ~ity Manager Miller clarified that he called a Special Meet- ~ng so some decisions could be made. He did not think it Was necessary for someone from the City Attorney's Office to be present. Review of Value Engineering (VE) Study for the construc- tion of a west water treatment plant and to make appropriate decisions thereto joel wantman, P.E., Stanley Consultants of Florida, Inc., ~000 Lombard Street, West Palm Beach, FL, presented the ommission with a report and introduced Jim Hollatz, Team Leader on the project. Mr. Hollatz said their goal was to look at as many innovative ideas as they could and put ~ogether a report, which he thought the Commission had seen. He showed graphics and explained the costs. Mr. Hollatz ~aid they looked at saving initial capital costs and life dycle costs. Mayor Moore questioned what the scope of the enlargement of ~he project to the City's west water facilities would be. - 2 MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA MAY 24, 1990 There was discussion. Mr. Hollatz replied the initial construction cost estimate was 14.8 Million Dollars. ~As a result of the combined acceptance of the ideas of the value engineering team by CH2M Hill and by John Guidry, Director of Utilities, and his staff, they were looking at 1.7 Million Dollars in total capital cost savings. If they look at the cost of the west water treatment plant plus the ~eep injection well, they would be looking at 13.1 Million Dollars. ayor Moore asked if the deep injection well was the best ay to go. Mr. Hollatz answered affirmatively. Mr. Guidry ~xpiained his concerns. Mayor Moore inquired what the ottom line would be on the amount of bond issue the City ~hould go out for. He also inquired what the engineering tees would be based on. Mr. Guidry could not say. ~n reply to a question by Mayor Moore, City Manager Miller ~aid the Commission was to decide whether to accept the VE ~tudy and go forward with accepting the recommendations of ~taff in making the deduction of 1.7 Million Dollars on the ~otential capital cost savings. Based on the results of tonight's meeting, CH2M Hill still had 10% work to do on ~inal design plans to get them to a production ready bid ~tage. Albert Muniz, P.E., CH2M Hill, 800 Fairway Drive, Suite 350, Deerfield Beach, Florida 33441, stated that after the ~ommission makes a decision on the package of VE recommenda- tions to be accepted, they will determine what it will cost ~o incorporate those into the design plans at the stage they ~re in now. The design plans have been completed to about a 90% level. The initial construction costs will be less, but ~hanges will be needed in the original plan. Discussion ensued about costs and a bond issue. ~ommissioner Olenik wanted to know what the figure of 22,000,000 would include. City Manager Miller replied it ould include the west water treatment plant. He reminded ~he Commission the City is holding off on the disinfection program. The sum of $8,000,000 is being set aside for %993-1994. Mayor Moore wanted to know what the plant ~apacity would be. ayor Moore heard rumors are being put out by the Planning epartment that the City is out of water. Mr. Guidry ~eplied the City is critically close. Peter Mazzella, Assistant to the Director of Utilities stated that the east - 3 - MINUTES- SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA MAY 24, 1990 plant is entirely committed. Mr. Guidry added that the City is not out of business. The City has the concurrence of the regulatory agency that it can continue to permit projects while under construction. City Manager Miller advised that 3,000,000 gallons (3MG) of water per day are under construction at the east plant. Mayor Moore questioned what that related to in basic units. City Manager Miller answered it would be 6,600 units. That does ~ot mean they can lag time om the west plant. Commitments have already been made on the 3MG now under construction. Vice Mayor Wische was disturbed by what he just heard and emphasized it is the Department of Utilities' and not the planning Department's jurisdiction to tell the public or the ~ity Commission that the City is low in water. City Manager ~iller responded that at this time, people are being ~eferred to John Guidry, Director of Utilities. There were ~urther comments. ~ommissioner Olenik wanted City Manager Miller to report back to the Commission in the future. He inquired whether the City has not been approving plans because of water. ~ity Manager Miller assured him the City has not. He ~xplained what has been done by the City. Both City Manager Miller and Mr. Guidry commented further. Discussion ensued about how the $22,000,000 figure was ~erived. Mr. Guidry said the disinfection issue is still in the throes of promulgation of rules. City Manager Miller and he said they would do their best to fund that from ~etalned earnings, but based upon the rate study, they did ~ot see retained earnings to finance that. Mr. Guidry felt another future bond issue would be required. In the master and Comprehensive Plan, they had identified specific pipe line jobs that have to be done. Lower number pipe line jobs ~an be done with retained earnings which the City has. ~r. Guidry further explained how they arrived at the $22,000,000. The Commission had further questions. ~ayor Moore did not feel comfortable with what was presented and requested that City Manager Miller give the Commission a One page breakdown on how much in bonds will be recommended ~o be issued, what that will be based on, what the City will get out of it, and how much capacity the City will get. If they were going to accept the VE report and the 1.7 poten- tial capital costs savings, City Manager Miller stated the City needed to know where to go next. Mr. Guidry said an accounting sheet could be provided to the Commission by the next City Commission meeting on June 5, 1990. - 4 - MINUTES - SPECIAL CITY COMMISSION MEETING BOYI~TON BEACH, FLORIDA MAY 24, 1990 There was more discussion about the $22,000,000 figure, the 41,700,000 savings recommended by the VE, and the items. Mayor Moore wanted everyone to know that because of value engineering, the City will save $1,700,000 on the recommended project. City Manager Miller advised $55,000 was spent for both Stanley Consultants and CH2M Hill. Discussion ensued ~bout the present and future capacity of the plants and the umber of units needed. City Manager Miller and Mr. Guidry ~greed with Mayor Moore that the City could build 50% now. ity Manager Miller stated the City wants 4 MGD and in 1993, ~he City will have the availability to construct an addi- tional 1.33 MGD in subsequent years. After explaining, ~r. Guidry said 4 MGD would bring the City "out of the ~oods." Mayor Moore commended the Value Engineers and ~veryone involved. In future capital projects, Mr. Guidry ~elt the City should enact VE. He explained. Vice Mayor Wische moved to accept the recommendations of Value engineering in conjunction with the recommendations of %he City Staff and Consulting Engineers. Commissioner ~lenik seconded the motion, and the motion carried 5-0. ~ayor Moore asked the motion to include that the City is not going to "fool around with another $20,000,000 of refunding." ~e was informed that was included in the VE recommendations. Additional comments were made about underwriting. ~. Aquifer Storage and Recovery (ASR) )avid Pyne, P. E., CH2M Hill, made a presentation so the ~ommission would understand the concept. The Commission had ~eceived pamphlets relating to this and was advised by City ~anager Miller that no motion was needed. Mr. Guidry elaborated on the advantages of this technology. 4r. Pyne said water would be stored when water is available. ~he critical water facility for the City might be the east ~ater plant. Water can be stored during the low months and ~an be recovered during the peak months. If a situation ~rises where there is not enough treatment capacity, the ~ater can be pulled out of the underground storage facility ~o meet the peaks. Port Charlotte, Cocoa, and Port Malibar ~ave ASR facilities. Lake Okeechobee and the Florida Keys ~re in the process of testing. r. Pyne informed Mayor Moore they have had tremendous gency support because of the beneficial impact it has on ~olving water problems in Southeast Florida. ASR is going on in the United States and overseas. - 5 - MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA MAY 24, 1990 Mayor Moore asked what the financial scope of the project would be. Mr. Pyne answered it will cost approximately $750,000 to get the first well on line, fully permitted, and ~he feasibility confirmed. That would provide a yield of about 2 or 3 MGD. Mr. Pyne said salt water is down there. One question asked is whether they ever get the fresh water back out. He stated the answer is "Yes," and he explained ~ow this is done. Commissioner Olenik asked whether the Water would need any secondary treatment. Mr. Pyne answered ~t would need only disinfection. Mr. Pyne pointed to a chart that showed the average water demand for Boynton Beach is steadily climbing. The peak day 4emands have been dipping because of the water use restric- tions. If the water use restrictions are not imposed, Mr. Pyne anticipated that by 1991, there will be a peak day demand of about 19 MGD. They are looking to use ASR to meet ~he City's peaks, and he explained. Mr. Guidry reminded everyone of the agreement the City Begotiated with the Lake Worth Drainage District. Part of ~he language in that was ASR application. Mr. Pyne continued by saying the storage they were looking at would be underneath Boynton Beach a distance of approxi- mately 1,000 feet. They were talking about constructing one ~SR well and one deep monitor well. That would comprise the bulk of the construction costs and would be constructed at ~he east water treatment plant. Mayor Moore inquired why it would be put at the east instead ~f the west water treatment plant. He wondered why they Here not concerned about salt water intrusion. Mr. Pyne ~aid they would be going down 1,000 feet. The salt water Would be around i00 feet. The water would be stored in a ~one that already has brackish water. They do not care how ~uch salt water is there because they push the water aside. ~r. Pyne said there are several ways they can use the ASR ~oncept in Boynton Beach. It can be used to store the C-i6 Canal water when it is flooding. The City has a couple of Wells it is not using because of salt water. Mr. Pyne told ~he Commission they could store some untreated or treated Vell water in those wells, recover it, and pick up about 1.7 ~GD in capacity there. The main action CH2M Hill saw was Che storage of potable water (treated drinking water), and ~r. Pyne suggested that was the direction in which the City ~hould go. The storage volume per well will be initially in MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA MAY 24, 1990 the 100 million gallon range. If the City goes to the C-16 canal storage, Mr. Pyne said it may be very useful to store maybe 300 million gallons. Mr. Pyne stated they were looking at a test program of about a 24 month duration. That could be accelerated, but it would take some effort. While the City continues the ~est program, the water recovered is being used for drinking purposes. As the City draws out of the 100 million gallon storage, Commlssloner Olenik wondered if the City was shrinking the Well. During the time the demand is low, Mr. Pyne said the City would put more water in until it gets to 100 million gallons. When the peaks hit, water is pulled out. In over a month, the water could be pulled out. Mr. Guidry inter- jected the Jarvis wellfield would not be that critical if he had a 3 MGD recovery capability now. Mr. Pyne called attention to a reduction in nitrogen Concentration during underground storage and said they are ~ware of the fact the City has a significant issue with the multi-levels in the distribution system. They have parallel ~fforts they will be discussing with Mr. Guidry. It will not be a total solution, but the ASR could be part of a ~olution to that problem. ~JOURNMENT The meeting properly adjourned at 7:~ M. / / ~ / Mayor ~ ' '~ ~---%'/ ~ ~'~i ce~yor ATTEST: _~y' City Clerk ~ Commissioner .__ Recording Secretary /// Commissioner : (Two Tapes) // 7