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HomeMy WebLinkAbout31154 - MINUTES - City Commission MINUTES OF SPECIAL MEETING, CITY COMMISSION,CITY OF DANIA, FLORIDA, HELD OCTOBER 21, 1966 4 The City Commission of the City of Dania, Florida, met in ® Special Session in the Commission Room at the City Hall. Present were: MAYOR.COMMISSIONER JAMES G. ADAMS COMMISSIONERS GUS S. BRICE FRANK SALVINO S. ELLIS YOUNG ® CARL ZENOBIA CITY ATTORNEY CLARKE WALDEN CITY MANAGER STANLEY GOLDBERG CITY CLERK MARY THORNHILL The meeting was called to order at 2:00 P.M. by Mayor Adams, ® pertaining to the Sewer Contract. City Attorney Walden stated that the City Commission passed a resolution on October 3rd which in effect grants the Con- gractor, M B Construction Company, 10 days from the date of the resolution furnished to him to either complete the job or ® to file a written report with the Engineer outlining details how and when the job would be finished . The contract was not completed within the 10 day period, which ran out on October 15. And the Contractor did not ` xrnish the required written report to the City by the 15th. As a result, this meeting was called to discuss further what action the City can take. Un- fortunately, the most important person to this meeting, Mr. Philpott, is not present. He has authorized Mr. Barry to be present in his absence. He added that they have set a tentative time for next Wednesday to meet with Mr. Philpott. However, because there were so many people standing by for this meeting, they decided to go ahead with it. Present were Mr. Boyd, who represents Peerless Insurance Company, the company who holds the completion bond; Mr. Craven, of the' Engineering firm of Davis & Craven, who is investigating the pro- ject on behalf of the bonding company; Mr. Barry representing Mr. Philpott; and a representative of M B Construction Company, also Mr. Mears lawyer. He stated that Mr. Craven agreed that they would make an immediate surveyof the entire project to see what is necessary to get the job done. The Bonding Company has further agreed that within three days of the day that they are furnished with a copy of this report • they will give the City a detailed letter outlining when the job will be completed by the present contractor. If the City sees fit to terminate the contract with M B, the bonding company will stand behind to see that the job is completed. City Attorney Walden recommended that no formal action be taken today, because "You actually cannot do anything until you have a firm statement from your engineer on ivhere'..the contract stands." fie stated that in order to terminate the contract the engineer must stand firmly behind the city. He suggested that they listen to Mr. Boyd, who is going to recommend that whatever action is taken, the bonding company will be behind it, but he recommended that they allow '{ the present contractor to continue on the premise that they (the bond- ing company) will stand behind him. Mr. Boyd, of Blackwell, Walker & Gray, representing Peerless Insurance Company was present, and suggested that they wait until Mr. Craven and Nr . Philpott can make a survey, and then they will know just where they stand. He stated that as it looks right now, it looks as though the job could be completed within 30 days, but they will not know definitely 111til a survey can be made. -1- Attorney Walden asked Mr. Boyd if he felt that Mr. Mears would do whatever his (Mr. Boyd's) attorney tells him to do. Mr . Boyd replied that he felt this was a problem for the engineers to settle themselves. They felt that it was for the engineers to decide whether or not the job was done in a workmanlike manner. Carl Farina was present representing Davis & Craven and stated that they could finish the survey by next Tuesday morning, assuming the weather will remain good. He stated that they now need for skilled personnel to step up the work. Commissioner Zenobia asked Ed Barry is he felt this job could be completed in 30 days. Ed Barry: "Frankly, no ." He stated that they are making a much stronger effort to finish the job, but he did not feel that it would be finished in 30 days no matter who does the work. Commissioner Zenobia asked how long did he think it would take just to finish pumping station "X" . 0 Ed Barry: That could be finished in two weeks. Commissioner Salvino asked if Mr. Mears has worked along according to specifications. Ed Barry: Well, it is quite obvious that some of the specifications ® haven't been met, that is the reason we are having the trouble we are having. Commissioner Salvino: How come you didn't stop the job then? Ed Barry: I didn't think I have the authority to stop the job. I 0 think the only people who can stop this job is the City. Attorney Walden asked, if the City should put Mr. Mears off the job, are there any other contractors available to do the job. Ed Barry replied that he had no idea, since he hadn't made any inqui-' • ries, but as far as he could determine, the contractors are all very busy right now. He personally felt that having the bonding company behind the present contractor will help to get the job done. Attorney Walden asked when will they know if the system will work. ® Ed Barry stated that by next Friday night they will have a pretty good idea what is necessary to complete the collection system, whether or not there is any damage done to the pumping stations, whether there is any clogging; all this has to be taken into consideration. He stated that he cannot pinpoint a date until he has completed a survey that is now under way• By next Friday they should have the survey completed ® and a list prepared for the bonding company to give the city the date that they ask for. Commissioner Zenobia suggested that they have a meeting Friday and settle this. He stated that Philpott, Ross & Saarinen got over $100,000 for this job, "I think they should be able to come up with 0 an answer" . City Attorney asked Mr. Barry, in his opinion, with respect tothe hole in Park Street, has everything in the last few days been done that should be done. E Mr. Barry replied that he is not going to tell them how to do it, however, he felt that they would get it ironed out in the next few days . -2- s City Attorney Walden again suggested that they carry this over for a few days; another week or so, until they get this report. He suggested that they agree informally to hold another meeting Wednesday. Mr . Davis suggested that, on the complaints, someone screen each com- plaint and then give them a check list to take care of them. Commissioner Brice stated that the contractor is 147 days past the completion date, he asked if they can take that money and transfer it into the sinking fund. ® City Attorney Walden stated that they cannot transfer it until the end of the job. But when the final payment comes due, he is going to in-- struct the City to withhold whatever the penalty is. But he didn't recommend transferring it until the end of the job. City Attorney Walden asked Haryey Henann, of Barcus, Kindred 6 Company, ® if the job is completed in 60 days, it will take three or four months more to get the assessments coming in, how will that effect the revenue bonds . Mr . Hennan replied that he is not concerned about default, he is con- cerned mainly on the impact that it might have on the cities finances ® other than that. In other words, there are several sources which dould be used to pay the bonds; he stated that there is some 400 thousand dollars in the construction account, in the sinking fund reserve account. And he believed that about 130 thousand is expected to be ;required to complete construction. So they would have interest from the proceeds. He stated that they can use this construction money- He stated that ® there is a principl8 payment of $80,000 due November 1. The $80,000 is there, plus about $30,000 extra so that in case things didn't go right they have a little buffer. He stated(Ithat there are other factors. They have pledged additionally to the bonds the cigarette tax,-.which they don't expect to touch, but they are there. But as far as the bonds are concerned, the security is there. He stated that the money is in ® the bank. The money to meet the payments are designated, and in the specific funds. All the earned interest has accumulated in the reserve account, and the reserve account is automatically usable to pay pri.ncip1b and interest. So they have in the sinking fund and the reserve account the monies that are due November 1, and they have otherc.earned interest that should just about make the May 1 payment. ® Commissioner Brice stated that May 1 is rapidly coming up, "And if we don't get this thing under way three months prior to May 1st, we are going to be in trouble'." Mr . Hennan stated that the delay will have an impact, ,they will have to allocate reserve payments as they go. It was asked of Mr. Barry, that about a week ago one of his employees stated that there was a heavy leak in a lateral on Dania Beach Blvd. that would have to be excavated to find out what was wrong. He asked if that was done. Mr. Barry replied that nothing has been done. He did not anticipate a lot of work, but he was not going to say that it was an easy job. . 0 There being no further business, the meeting adjourned. Maby ornhill CityJerk-Auditor -3- James G. Adams Mayor-Commissioner